Akastor ASA · OSL:AKAST
Akastor ASA — Q2 2021 Earnings Presentation
27 slides from Akastor ASA's earnings presentation, Jul 15, 2021
Slide 1: Second Quarter Results 2021
Akastor ASA Second Quarter Results 2021 Karl Erik Kjelstad (CEO) & Øyvind Paaske (CFO) Fornebu | 15 July 2021 Akastor © 2019 Akastor
Slide 2: Presenters and agenda
Presenters and agenda Portfolio highlights Karl Erik Kjelstad Chief Executive Officer Financial update Øyvind Paaske Q&A session Chief Financial Officer Akastor © | 2019 July 2021 Akastor Slide 2
Slide 3: Portfolio Highlights
Portfolio Highlights Akastor © 2019 | July 2021 Akastor Slide 3
Slide 4: 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 Automotive and Construction sectors 5
Slide 5: Joint venture between Akastor and Baker Hughes on track
Joint venture between Akastor and Baker Hughes on track ▪ Comprehensive integration planning work with close to 1 000 actions to be completed prior to closing Akastor 50% 50% Baker Hughes $20m $80m ▪ Ongoing verification of potential synergies including $100m SHL SHL $120m dividend dividend developm
Slide 6: Portfolio Highlights 2Q 2021 (1 of 2)
Portfolio Highlights 2Q 2021 (1 of 2) Drilling equipment Lifecycle services, spares and components Projects DLS ▪ Cont. low activity in quarter as a result of ▪ 48 active rigs in quarter, up from 45 per 1Q. phase of ongoing projects Further grow expected in H2 based on contract schedule of fleet ▪ K
Slide 7: Portfolio Highlights 2Q 2021 (2 of 2)
Portfolio Highlights 2Q 2021 (2 of 2) ▪ Aker Wayfarer affected by a COVID-19 outbreak onboard, resulting in 13 days of downtime and 85% revenue utilization in quarter ▪ Skandi Santos continues to deliver very high uptime with revenue utilization of 100% also in second quarter. Ongoing tender process
Slide 8: Key value drivers for our main portfolio assets
Key value drivers for our main portfolio assets NCE per 2Q 2021: NOK 2760m NCE per 2Q 2021: NOK 1002m NCE per 2Q 2021: NOK 789m NCE per 2Q 2021: NOK 589m 53% 19% 15% 11% Ownership agenda: Ownership agenda: Ownership agenda: Ownership agenda: ▪ Buy-and-build strategy with ▪ Secure order backlog and ▪
Slide 9: Illustrative roadmap for realizing our investments and capital allocation priorities
Illustrative roadmap for realizing our investments and capital allocation priorities FINANCIAL INVESTMENTS STRUCTURAL SOLUTIONS / M&A SEPARATE LISTING DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © | 2019 July 2021 Akastor Slide 9
Slide 10: Financial update
Financial update Akastor © 2019 | July 2021 Akastor Slide 10
Slide 11: Financial highlights 2Q 2021
Financial highlights 2Q 2021 2Q 2021 highlights ▪ Following announced agreement to combine MHWirth with Baker Hughes SDS, MHWirth is presented as discontinued operations in the income statement ▪ Revenue and other income increase of 36 percent year-on-year, driven by gain from finance lease agreemen
Slide 12: Key financials reconciliation
Key financials reconciliation ▪ Odfjell Drilling: result of NOK 34 million includes cash interests of NOK 9 million, PIK interests of NOK 9 million and positive valuation effects on the warrant structure of NOK 11 million ▪ AKOFS Offshore: negative result represents 50% of the company’s net loss in
Slide 13: Cash flow and net debt position
Cash flow and net debt position Net debt bridge 2Q 2021 highlights NOK million ▪ Net debt increased by NOK 80 million in quarter, to NOK 1 803 million ▪ DDW Offshore net debt of NOK 415 million per end of quarter ▪ “Other” includes lease payments, currency effects and payment of deferred settlement
Slide 14: Net Capital Employed as per 2Q 2021
Net Capital Employed as per 2Q 2021 NOK million Akastor © | 2019 July 2021 Akastor Slide 14
Slide 15: MHWirth
MHWirth Highlights 2Q 2021 Installed base per 2Q 2021 ▪ Project & Products revenues were NOK 134 million, a decrease of Full package (rigs) Installed base by age 73% compared to last year 0-5 >20 ▪ DLS & DT revenues were NOK 551 million, a decrease of 2% Fixed 9 21 18 compared to last year ▪ EBITDA
Slide 16: AKOFS Offshore
AKOFS Offshore Highlights 2Q 2021 Fleet overview Vessels Loc. 2019 2020 2021 2022 2023 2024 2025 ▪ Revenues and EBITDA of NOK 341 million and NOK 120 million, respectively +3 years option ▪ Revenue utilization for Aker Wayfarer 85% in quarter, explained by AKOFS Seafarer a COVID-19 outbreak resultin
Slide 17: NES Fircroft
NES Fircroft Recent development Award winning workforce solution specialist ▪ Continued increase in activity and uptick in number of contractors Global organization seen in the quarter with local client touch-points through ▪ LTM pro-forma revenues per May 2021 around 30% lower than a network of ~45
Slide 18: Other industrial holdings
Other industrial holdings Highlights 2Q 2021 ▪ Other industrial holdings reported pro-forma consolidated revenue and EBITDA of NOK 200 million and NOK 10 million, respectively ▪ AGR: Revenues and EBITDA of NOK 178 million and NOK 8 million, respectively ▪ Cool Sorption: Revenues and EBITDA of NOK 21
Slide 19: Appendix
Appendix Akastor © 2019 | July 2021 Akastor Slide 19
Slide 20: Selected transactions since inception in 2014
Selected transactions since inception in 2014 March 2021 October 2020 September 2020 June 2019 April 2019 Merged for an economic 100% acquisition of interest stake of 55% Subsea Drilling Systems Merger with 50% JV between Restructuring and 50% MHWirth and Baker acquisition of shares Hughes’ SDS divi
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: Key figures
Key figures AKASTOR GROUP (continuing operations) Note: MHWirth is presented as discontinued operations from 1Q 2021, historical figures have been restated Akastor © | 2019 July 2021 Akastor Slide 27
Slide 23: Split per Company (1 of 4)
Split per Company (1 of 4) MHWIRTH Akastor © | 2019 July 2021 Akastor Slide 28
Slide 24: 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 July 2021 Akastor Slide 29
Slide 25: Split per Company (3 of 4)
Split per Company (3 of 4) AGR Akastor © | 2019 July 2021 Akastor Slide 30
Slide 26: Split per Company (4 of 4)
Split per Company (4 of 4) OTHER HOLDINGS Akastor © | 2019 July 2021 Akastor Slide 31
Slide 27: 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