Endur Asa · OSL:ENDUR
Endur Asa — Investor Presentation (June 2020)
27 slides from Endur Asa's investor presentation, Jun 23, 2020
Slide 1: Endúr ASA Investor Presentation
Endúr ASA Investor Presentation 23 June 2020
Slide 2: Important Information
Important Information By receiving and/or attending and reading this confidential company presentation (the “Presentation”), each described herein. The Group assumes no obligation, except as required by law, to update any forward-looking recipient agrees to be bound by the following terms, condition
Slide 3: Today’s presenters
Today’s presenters Chairman: Øivind Horpestad1 CEO: Hans Petter Eikeland COO: Nils Hoff 1 Proposed elected as Chairman in the EGM 3
Slide 4: Ambition to create the leading marine service provider
Ambition to create the leading marine service provider 1 6 1 1 1 1 4 1 5 2 5 Focus areas: 4 11: Sea cables/pipeline installation 22: Aquacultures solutions 3 33: Harbour/ quays construction/ maintenance 6 44: Aquaculture services 55: Underwater services 66: Legacy business 4
Slide 5: Setting the stage for new growth
Setting the stage for new growth Endúr to become the • Attractive entry point in a consolidation journey market consolidator 1 • Endúr targets in excess of NOK 2bn revenues within 24 months through M&A (tripling in size) within marine • Full-service offering within marine infrastructure to take larg
Slide 6: Aiming to create the leading marine service provider
Aiming to create the leading marine service provider Rationale Targeted marine infrastructure segments • The marine infrastructure markets 1 remain highly fragmented - clients Sea cables/ seeking “one stop shop” pipeline • Several segments showing high return installation potential on stand alone ba
Slide 7: Aiming to triple in size next two years
Aiming to triple in size next two years Owners with clear goal to consolidate a niche industry with strong growth through accretive M&A transactions and build a NOK 2bn company within 2 years Ambition to build revenues of NOK 2bn Multiple arbitration NOKm Envisioned added exposure • Large list of ot
Slide 8: Strong underlying market growth
Strong underlying market growth In general a large unconsolidated market within Marine Infrastructure. Strong growth in seafood and land-based aquaculture expected to be an important growth driver for the segment, as well as public sector investing to close maintenance gap in ports and harbors Inves
Slide 9: Case study: Specific aquaculture company
Case study: Specific aquaculture company Scope of contracts Illustration • Currently building water intake pipes • Client has high growth ambitions and several marine infrastructure contracts to be awarded going forward • Potential add-on contracts: • Quay construction • Sea bed mapping/dredging • W
Slide 10: A large base of installed onshore wind turbines will drive demand for maintenance
A large base of installed onshore wind turbines will drive demand for maintenance Relevant market for Endúr PLANNING CONSTRUCTION OPERATION >20YR DECOM GUARANTEE 3-5 YRS MOST RELEVANT FOR ENDUR Estimated installed base TWh 200 150 70 100 20 50 28 20 15 0 8 Installed base Permitted Planned Installed
Slide 11: Strong pipeline of further consolidation opportunities
Strong pipeline of further consolidation opportunities Strong historical growth among peers with potential for high margins Peers revenue growth YoY Peers two-year average EBITDA margin Based on consolidated figures 2018 -19 if available, otherwise 2017-18 Based on consolidated figures 2018 -19 if a
Slide 12: New journey backed by experienced management team, board and owners
New journey backed by experienced management team, board and owners Management team Board of directors1 Owners2 Hans Petter Eikeland Chairman: Øivind Horpestad CEO of Endúr since 2019, and former Over 10 year built NRC Group from zero to NOK Chairman of Endúr. Previously CEO of Ability 6bn in revenu
Slide 13: Starting point of NOK ~50m in adj. EBITDA and strong balance sheet
Starting point of NOK ~50m in adj. EBITDA and strong balance sheet Pro-forma numbers (NOKm) NIBD estimate 30.06.20 (NOKm) 800 ,0 20, 0% 744,5 695,2 18, 0% 11 700 ,0 30 16, 0% 600 ,0 50 14, 0% 500 ,0 12, 0% 90 395,1 59 400 ,0 10, 0% 7,6% Interest-bearing Financial lease Cash Assumed equity Estimated
Slide 14: New group structure with strong national presence
New group structure with strong national presence Locations New structure Comments •1 Legacy divisions for Endúr, with scale and profitability • 170 FTE, 2020E Revenues NOK 305m, EBITDA NOK 13m 1 Bodø Marine •2 Oceano acquired in June 2020, subject Marine services Legacy to EGM approval and with set
Slide 15: Marine service provider consolidation starts with Oceano
Marine service provider consolidation starts with Oceano Solid platform for continued growth within attractive segments Oceano's contribution to the new company Attractive revenue mix new company (2020E) • Strategic and attractive fit with Endúr as the two companies Revenue mix based on 2020E and ma
Slide 16: Service and product offering within marine infrastructure (1/2)
Service and product offering within marine infrastructure (1/2) Services Solutions Produces concrete floating structures with the main emphasis on feed barrels for the aquaculture industry, under the brand name Sjøsterk Infrastructure Water and pressure drains The concrete constructions are manufact
Slide 17: Service and product offering within marine infrastructure (2/2)
Service and product offering within marine infrastructure (2/2) Engineering services Engineering Products Project management and Services for the marine, aquaculture, Products for the marine sector and operation energy and renewables industry related subsea operations Services for the marine, aquacu
Slide 18: Legacy Maritime division
Legacy Maritime division Stable cash flows - investment grade customers About Recent contracts • Engine workshop with specialist expertise in • Awarded a NOK 750m (incl. options) high-speed diesel engines framework contract (4 + 3 years) by the Norwegian Armed Forces Logistics Organization • Inspect
Slide 19: Legacy Energy division
Legacy Energy division Perfectly suited for the next decades in renewables and sun-set in Oil & Gas About Business segments Where we work • Combines the strengths of Endúr Industries in Renewables Infrastructure prefabrication with Endúr AAK's access technology and field expertise, two well- establi
Slide 20: P&L
P&L Endúr + Endúr + CONDENSED CONSOLIDATED STATEMENT OF PROFIT Endúr Endúr Endúr Oceano Oceano OR LOSS Proforma Proforma NOK'000000 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020E Operating revenue 272 224 395 695 745 Cost of sales (112) (97) (222) (378) (414) Payroll expenses (127) (126) (118) (222) (230)
Slide 21: Balance sheet
Balance sheet Endúr + Oceano CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL Euity issue - MNOK Proforma TOTAL POSITION 50 Post transaction NOK'000000 ASSETS Deferred tax asset 19 - 19 Intangible assets and goodwill 192 - 192 Property, plant and equipment 71 - 71 Other receivables 6 - 6 Non-current as
Slide 22: Cash flow
Cash flow Endúr + CONSOLIDATED STATEMENT OF CASH FLOWS Endúr Endúr Endúr Oceano Proforma NOK'000000 FY 2017 FY 2018 FY 2019 FY 2019 EBITDA 6 (30) 30 43 Change NWC 14 48 (40) (49) Other adjustments 2 (3) (3) (3) Net cash from operating activities 22 15 (13) (9) Acquisition/sale of property, plant and
Slide 23: Risk factors
Risk factors An investment in the Company and the Shares involves a high degree of risk. Potential investors should The Covid-19 pandemic may adversely affect the likeliness and/or materiality of the risk factors carefully consider all information in this Presentation, including the risks described
Slide 24: Risk factors cont’d
Risk factors cont’d 2.1.2 Integration risk The operating results and financial condition of the Group may be negatively affected by the failure to achieve the financial results projected for the Oceano Group in the near or long term following The Merger represents a transaction of a size and complex
Slide 25: Risk factors cont’d
Risk factors cont’d 2.2. Operational risks, 2.2.1 Contract risk The Group is involved in business activities which could lead to accidents, injury to personnel, and damage to property and the environment, despite of the Group's focus on safety and environmental The Group has a low degree of dependen
Slide 26: Risk factors cont’d
Risk factors cont’d 2.2.6 The recent outbreak of Covid-19 may have significant negative effect on the Group The profitability and cash flow of the Group's operations within oil and gas depends upon the reaction of the Group's clients to the market price of oil and gas, which in turn is affected by n
Slide 27: Risk factors cont’d
Risk factors cont’d 2.4 Financial risks, 2.4.1 Cash flow and liquidity Group's ability to generate sufficient cash flow, the need for future capital injections and refinancing, and therefore remains highly uncertain. Each of these factors is, to a large extent, subject to economic, The Group monitor