Akastor Asa · OSL:AKAST
Akastor Asa — Q4 2020 Earnings Presentation
32 slides from Akastor Asa's earnings presentation, Feb 11, 2021
Slide 1: Fourth Quarter Results 2020
Akastor ASA Fourth Quarter Results 2020 Karl Erik Kjelstad (CEO) & Øyvind Paaske (CFO) Fornebu | 11 February 2021 Akastor © 2019 Akastor
Slide 2: Presenters and agenda
Presenters and agenda Group highlights Karl Erik Kjelstad Portfolio highlights Chief Executive Officer Financial update Øyvind Paaske Q&A session Chief Financial Officer Akastor © 2019 | February Akastor 2021 Slide 2
Slide 3: 2020 key takeaways
2020 key takeaways Portfolio Transactions ▪ Business model proven resilient, with strong service contribution October 2020 September 2020 despite challenging market conditions ▪ Adaption of cost base through 2020 ▪ Good progress on ongoing projects through year ▪ Continued good contribution from non
Slide 4: 4Q 2020 highlights
4Q 2020 highlights Revenue EBITDA Net Capital Employed Net Interest-Bearing Debt NOK 973m NOK 57m NOK 5.0bn NOK 1.4bn ▪ Revenue of NOK 973 million, 37 percent decline year-on-year − Revenue of NOK 818 million from MHWirth − Revenue of NOK 286 million from AKOFS Offshore (not consolidated) ▪ EBITDA o
Slide 5: Portfolio companies highlights
Portfolio companies highlights Akastor © 2019 | February Akastor 2021 Slide 5
Slide 6: Akastor portfolio composition
Akastor portfolio composition Industrial investments Financial investments 100% ~ 15%2) Global manpower specialist within Oil & Gas, ICT, Leading global provider of first-class drilling systems, Renewables, Chemicals, Mining, Life Sciences, products and services Automative and Construction sectors 5
Slide 7: Portfolio Highlights 4Q 2020 (1 of 2)
Portfolio Highlights 4Q 2020 (1 of 2) Drilling equipment Lifecycle services, spares and components Projects DLS ▪ Keppel FELS units with 91% and 80% ▪ 45 active rigs in quarter, up from 44 per 3Q. progress booked per end of 4Q. Unit #2 Number of active rigs expected to increase formally suspended in
Slide 8: Portfolio Highlights 4Q 2020 (2 of 2)
Portfolio Highlights 4Q 2020 (2 of 2) ▪ AKOFS Seafarer commenced operations with Equinor October 16, 2020 and contributed with revenues in 4Q. Utilization in quarter affected by certain start-up issues. ▪ Skandi Santos contract extended with one year, and now expires in November 2021 ▪ Revenue utili
Slide 9: Key value drivers for our main portfolio assets
Key value drivers for our main portfolio assets NCE per 4Q 2020: NOK 2 795m NCE per 4Q 2020: NOK 1 063m NCE per 4Q 2020: NOK 758m NCE per 4Q 2020: NOK 537m 56% 21% 15% 11% Ownership agenda: Ownership agenda: Ownership agenda: Ownership agenda: ▪ Buy-and-build strategy with ▪ Secure order backlog and
Slide 10: Financial update
Financial update Akastor © 2019 | February Akastor 2021 Slide 10
Slide 11: Financial highlights 4Q 2020
Financial highlights 4Q 2020 4Q 2020 highlights ▪ Revenue decline of 37 percent year-on-year mainly driven by reduced activity in MHWirth, primarily within Project and Products ▪ EBITDA down 63 percent year-on-year, driven by reduced revenue compared to last year ▪ Depreciation and amortization of N
Slide 12: Key financials reconciliation
Key financials reconciliation ▪ Odfjell Drilling: the result of NOK 42 million includes cash interests of NOK 9 million, PIK interests of NOK 9 million and positive valuation effects on the warrant structure of NOK 16 million ▪ AKOFS Offshore: negative result represents 50% of the company’s net loss
Slide 13: Cash flow and net debt position
Cash flow and net debt position Net debt bridge 4Q 2020 highlights NOK million ▪ Net debt decreased by NOK 141 million in quarter, to NOK 1 471 million ▪ Positive operating cash flow driven by decreased working capital in MHWirth ▪ Consolidation of DDW Offshore increasing net debt with NOK 457 milli
Slide 14: Net Capital Employed as per 4Q 2020
Net Capital Employed as per 4Q 2020 NOK million Akastor © 2019 | February Akastor 2021 Slide 14
Slide 15: MHWirth
MHWirth Highlights 4Q 2020 Installed base per 4Q 2020 ▪ Project & Products revenues were NOK 269 million, a decrease of Full package (rigs) Installed base by age 49% compared to last year 0-5 Fixed >20 ▪ DLS & DT revenues were NOK 549 million, a decrease of 21% 14 21 18 compared to last year ▪ EBITD
Slide 16: AKOFS Offshore
AKOFS Offshore Highlights 4Q 2020 Fleet overview Vessels Loc. 2019 2020 2021 2022 2023 2024 2025 ▪ Revenues and EBITDA of NOK 286 million and NOK 66 million, respectively +3 years option ▪ Skandi Santos contract extended to November 2021 AKOFS Seafarer ▪ Revenue utilization for Aker Wayfarer affecte
Slide 17: NES Fircroft
NES Fircroft Recent development Award winning workforce solution specialist ▪ NES merged with Fircroft in Q3 to create leading global technical Global organization workforce solutions organization, ongoing integration and synergy with local client realization according to plan touch-points through a
Slide 18: Other industrial holdings
Other industrial holdings Highlights 4Q 2020 ▪ Other industrial holdings reported pro-forma consolidated revenue and EBITDA of NOK 140 million and NOK 4 million, respectively ▪ AGR: Revenues and EBITDA of NOK 138 million and NOK 4 million, respectively ▪ Cool Sorption: Revenues and EBITDA of NOK 2 m
Slide 19: Appendix
Appendix Akastor © 2019 | February Akastor 2021 Slide 19
Slide 20: Selected transactions since inception in 2014
Selected transactions since inception in 2014 October 2020 September 2020 June 2019 April 2019 September 2018 Merged for an economic 100% acquisition of 50% sale to interest stake of 55% Restructuring and 50% Merger with acquisition of shares from DOF ASA USD 31.5m USD 142.5m April 2018 June 2017 De
Slide 21: ODL preferred equity and warrant instrument
ODL preferred equity and warrant instrument Preferred equity structure Warrant structure Instrument description: Instrument description: ▪ 5% cash dividend + 5% PIK per annum (semi-annual payment) ▪ The total warrant issue comprise six tranches with 987,500 warrants per tranche, amounting to a total
Slide 22: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Akastor © 2019 | February Akastor 2021 Slide 22
Slide 23: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Akastor © 2019 | February Akastor 2021 Slide 23
Slide 24: Condensed Consolidated Statement of Cash flows
Condensed Consolidated Statement of Cash flows Akastor © 2019 | February Akastor 2021 Slide 24
Slide 25: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to ▪ Net current operating assets (NCOA) - a measure of working capital. It the consolidated financial statements prepared in accordance with IFRS. is calculated by current operating assets m
Slide 26: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) December 31 December 31 December 31 December 31 NOK million 2020 2019 NOK million 2020 2019 Non-current borrowings 628 1 444 Current operating assets 2 765 3 758 Current borrowings 1 119 3 Less: Current operating liabilities Gross debt 1 746 1 448 2 214 3 16
Slide 27: Key figures
Key figures AKASTOR GROUP Akastor © 2019 | February Akastor 2021 Slide 27
Slide 28: Split per Company (1 of 4)
Split per Company (1 of 4) MHWIRTH Note: Step Oiltools is consolidated as part of MHWirth from 1Q 2020, historical figures have been restated Akastor © 2019 | February Akastor 2021 Slide 28
Slide 29: Split per Company (2 of 4)
Split per Company (2 of 4) AKOFS OFFSHORE 1) 1) Figures presented on a 100% basis. Akastor’s share of net profit from the joint venture is presented as part of “net financial items” Akastor © 2019 | February Akastor 2021 Slide 29
Slide 30: Split per Company (3 of 4)
Split per Company (3 of 4) AGR Akastor © 2019 | February Akastor 2021 Slide 30
Slide 31: Split per Company (4 of 4)
Split per Company (4 of 4) OTHER HOLDINGS Note: Other holdings has been restated to exclude Step Oiltools which is consolidated into MHWirth Akastor © 2019 | February Akastor 2021 Slide 31
Slide 32: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u