Endur Asa · OSL:ENDUR
Endur Asa — Q3 2023 Earnings Presentation
30 slides from Endur Asa's earnings presentation, Nov 9, 2023
Slide 1: Endúr ASA Q3 2023 financial results
Endúr ASA Q3 2023 financial results 9 November 2023
Slide 2: Agenda
ENDÚR Q3 2023 PRESENTATION Agenda Group - Consolidated key figures and highlights - Subsequent event: Acquisition of Repstad Anlegg AS - Group structure and strategy - Selected ongoing projects Business segments - Aquaculture, Marine Infrastructure and Other - Key figures and highlights - Focus: Sve
Slide 3: Consolidated key figures and highlights: improved results and margins
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS Improved results and margins year-on-year REVENUE ADJ. EBITDA ADJ. EBITDA MARGIN CASH FLOW FROM OPERATIONS NOK 421.9 million NOK 70.1 million 16.6% NOK -17.9 million -29% vs. Q3 2022 +4% vs. Q3 2022 +5.3 p.p. vs. Q3 2022 • All-time high EBITDA-margin of 16.6%
Slide 4: Acquisition of Repstad Anlegg AS
SUBSEQUENT EVENT Acquisition of Repstad Anlegg AS (“Repstad”) Transaction Valuation Geographically complementary to Endúr 315 298 20 Repstad 100% • Signed on November 7 and estimated closing by early December Anlegg AS ~110 FTEs • Endúr ASA acquirer of 100% of the shares in Repstad Anlegg AS from Re
Slide 5: Pro forma results including Repstad
SUBSEQUENT EVENT Pro forma results including Repstad* REVENUE ADJ. EBITDA** ADJ. EBITDA MARGIN LTM REVENUE SHARE REPSTAD NOK 583.4 million NOK 106.0 million 18.2% 25.4% -18% vs. Q3 2022 +22% vs. Q3 2022 +6.0 p.p. vs. Q3 2022 Revenue 1000 901,4 Adj. EBITDA Strategic rationale 900 14 0 119,8 708,5 716
Slide 6: Targeting group annualized revenue of NOK 4 billion by end of 2024
GROUP STRUCTURE AND STRATEGY Targeting group annualized revenue of NOK 4 billion by end of 2024 • Leading full-service provider for Aquaculture Solutions and Marine Aquaculture Solutions Marine Infrastructure Other Infrastructure in Norway and Sweden, servicing both public and private sector Artec A
Slide 7: Selected ongoing projects
PROJECTS Selected ongoing projects Aquaculture Solutions Marine Infrastructure Other Salmon Evolution phase 2 Framework contract bridges Statsraad Lehmkuhl Company Artec Aqua Innlandet County Company Endúr Maritime Value NOK ~800-900 million Company BMO Entreprenør Value NOK ~50 million Client Salmo
Slide 8: Business segments
endur. Business segments
Slide 9: Aquaculture Solutions: detailed design phases ongoing
AQUACULTURE SOLUTIONS Aquaculture: Detailed design phases ongoing at Salmon Evolution phase 2 and Geo Salmo phase 1 REVENUE EBITDA EBITDA MARGIN -69% vs. Q3 2022 -21% vs. Q3 2022 +5.4 p.p. vs. Q3 2022 • Revenues comprise feed barge Revenue EBITDA & EBITDA margin production and detailed planning/desi
Slide 10: Marine Infrastructure: moving into busy-season with high-margin portfolio
MARINE INFRASTRUCTURE Marine Infrastructure: Moving into busy-season with high-margin portfolio REVENUE EBITDA EBITDA MARGIN +9% vs. Q3 2022 +4% vs. Q3 2022 -0.9 p.p. vs. Q3 2022 EBITDA & EBITDA margin* • Growth in revenues compared to Q3 Revenue* 2022 70 62,7 58,4 60,00% 337,2 400 311,1 60 56,1 50,
Slide 11: Svenska Tungdykargruppen AB (STDG)
FOCUS Svenska Tungdykargruppen AB (“STDG”) • Closing September 27 • All-cash settlement October 2 • Marcon-Gruppen i Sverige AB acquirer of 100% of the shares in STDG from Storskogen Group AB • EV of SEK 35 million Strategic rationale Assets and resources • Removal of capacity constraints • Four dre
Slide 12: Other: continued improvements from Endúr Maritime
OTHER Other: Continued improvements from Endúr Maritime REVENUE – ENDÚR MARITIME EBITDA – ENDÚR MARITIME EBITDA MARGIN – ENDÚR MARITIME +13% vs. Q3 2022 +48% vs. Q3 2022 +2.7 p.p. vs. Q3 2022 Endúr Maritime Revenue 81,0 76,9 Revenue split quarter • 90 Strong revenue growth in all three 80 quarters i
Slide 13: Financials
endur. Financials
Slide 14: Profit & loss
FINANCIALS Profit & loss Amounts in MNOK Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022 Actuals Actuals Actuals Actuals Actuals • Aggregate decrease in revenues driven by decrease within Aquaculture Solutions and increase within Marine Continued operations Infrastructure Operating revenue 418,7 589,8 1 4
Slide 15: Balance sheet
FINANCIALS Balance sheet Amounts in MNOK Q3 2023 Q2 2023 Amounts in MNOK Q3 2023 Q2 2023 Actuals Actuals Actuals Actuals • Intangible assets largely related ASSETS EQUITY AND LIABILITES to acquisitions of Artec Aqua, Intangible assets and goodwill 1 054 1 060 Share capital 16 16 BMO Entreprenør and
Slide 16: Cash flow
FINANCIALS Cash flow Amounts in MNOK Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022 Actuals Actuals Actuals Actuals Actuals • Anticipated increase in NWC Profit/loss for the period 20,0 1,7 -8,0 12,4 9,1 provides negative cash flow from Adjustments for non-cash items 38,0 48,0 108,4 94,0 131,3 operations
Slide 17: Net working capital (NWC) and net interest-bearing debt (NIBD)
FINANCIALS Net working capital (NWC) and net interest-bearing debt (NIBD) NWC NIBD & Leverage ratio Equity & Equity ratio • Increase in NWC driven by production ramp-up in Marine 100 1 036 800 10 80,00% 91 91 1 006 1 021 Infrastructure and Other 1000 segment after summer break 9 (similar pattern as
Slide 18: Pro forma NIBD including Repstad
FINANCIALS Pro forma net interest-bearing debt (NIBD) including Repstad* NIBD Q3'23 • Committed term loan facility of NOK 100 million from a syndicate of 907 SpareBank 1 SR Bank and 40 30 SpareBank 1 SMN 140 • 3-year maturity 40 • Quarterly installments of 27 NOK 4.5 million 50 • No installments fir
Slide 19: Outlook & summary
endur. Outlook & summary
Slide 20: Strong outlook within attractive market niches
OUTLOOK Strong outlook within attractive market niches • Large infrastructure projects ratified in Sweden; power industry, Backlog and early-phase grow-out projects* mining industry, port upgrades, cross-country transportation Aquaculture Solutions connections and LNG terminals, etc. expected to cre
Slide 21: Continued growth in EBITDA and margin
SUMMARY Continued growth in EBITDA and margin Continued improvement with quarterly EBITDA of NOK 70.1 million (67.2) and EBITDA-margin of 16.6% (11.3%), despite lower revenue of NOK 421.9 million (592.6) Expected increase in NWC after summer break Leverage ratio of 2.2x and available liquidity of NO
Slide 22: Q&A
endur. Q&A
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Slide 24: Appendix
endur. Appendix
Slide 25: Alternative performance measures
Alternative performance measures Basis for preparation Alternative performance measures (cont.) This presentation provides financial highlights for the quarter. The financial information in EBITDA - Profit/loss before i) tax, ii) net finance cost, iii) depreciation, amortisation, this presentation i
Slide 26: Operating results per company
APPENDIX Operating results per company Artec Aqua (Aquaculture Solutions) Endúr Sjøsterk (Aquaculture Solutions) Amounts in MNOK Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Revenue 252,8 251,7 112,8 78,5 55,7 40,0 47,9 42,0 48,1 36,5 EBITDA 8,9 0,4 -4,5 4,4 4,4 1,
Slide 27: Quarterly profit & loss
APPENDIX Quarterly profit & loss Amounts in MNOK Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Actuals Actuals Actuals Actuals Actuals Continued operations Operating revenue 589,8 667,2 484,2 543,4 418,7 Other revenue 2,8 1,0 0,5 0,5 3,2 Revenue 592,6 668,3 484,7 543,9 421,9 Cost of sales 376,5 429,5 282,
Slide 28: Quarterly balance sheet
APPENDIX Quarterly balance sheet Amounts in MNOK Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Amounts in MNOK Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals ASSETS EQUITY AND LIABILITES Intangible assets and goodwill 1 073 1 071 1 0
Slide 29: Quarterly cash flow and statement of changes in equity
APPENDIX Quarterly cash flow and statement of changes in equity Amounts in MNOK Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Actuals Actuals Actuals Actuals Actuals Cash flow from operating activities 6,3 129,4 -51,8 148,0 -17,9 Cash flow from investing activities -8,0 -32,9 -9,3 -10,1 -24,7 Cash flow fr
Slide 30: endur.
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