Slides
Page 1
Capital Markets Update 20 MARCH 2025
Page 2
Important information This com pany presenta tion and the information contained are, unless noted sepa rately, proprietary to Schoeller-Bleckmann Oilfield Equipment AG (SBO) and not meant to be reproduced or distributed to third parties. The information contained is ba sed on SBO’s current views, estimates and assumptions and describes in a general manner the corpo rate stra tegy and recent develo pment of SBO and provides som e indu stry background. They do not replace sou nd and independent judgm ent on the quality of the bu siness of SBO and the valua tion of its shares. In particular, they may not be misinterpreted as a prospectus, recommendation, invitation or offer to subscribe for, buy or sell securities in SBO. Although it is the goal of SBO to keep the info rmation contained complete a nd accurate and to correct errors brought to its attention within rea sonable tim e, SBO expressly disclaims any obliga tion to keep or make the informa tion contained comprehensive, complete, accura te and up-to-date and do es not publicly release upda tes on this company presenta tion. SBO does not provide earnings guidance. Nevertheless, this com pany presentation contains fo rward-looking statements. Those involve known and unknown risks, uncertainties and other factors which may cause the actual outcome, performance or achievements, both with respect to SBO and the industry, to be materially different. Readers are cautioned not to place undue reliance on the info rmation contained in this com pany presenta tion including forward-looking sta tem ents or discu ssed verbally ba sed thereon. SBO, and the persons acting on its behalf, do not accept a ny liability whatsoever arising from the use of this com pany presentation or its content or otherwise arising in connection therewith. | 2
Page 3
SBO at a glance • The global market leader in the manufacture of high-alloy, non-magnetic steel, high-precision components and high-tech equipment for the energy sector • Outstanding materials know-how, high-precision manufacturing and customer- centric innovation • Precision as a key differentiating factor, protected by strong IP • Close to customers at 20+ locations with ~1600 employees worldwide 3 MEUR 560 Sales 2024 MEUR 70 EBIT 2024 ~1600 Employees 50% Equity ratio 2024 CAPITAL MARKETS UPDATE 2025
Page 4
Successful due to global footprint and local presence in key industrial hubs 4 Advanced Manufacturing & Services Oilfield Equipment High-Precision Components High-Tech Service & Repair High-Performance Drilling Motors Well Completion Solutions High-Strength Non-Magnetic Steel Advanced Additive Manufacturing Circulation Tools Rotary Steerable Tools CAPITAL MARKETS UPDATE 2025
Page 5
Business results 2024 KLAUS MADER , CEO CAMPBELL MACPHERSON , COO
Page 6
2024 Business Highlights • Solid results and high cash flow in a challenging market environment with a weak US market and slowdown of customer demand in AMS as of mid 2024 • SBO navigated these market dynamics while making solid progress in strategic efforts • Growth in geothermal, additive manufacturing and strategic markets like Middle East and Latin America • Turnaround of OE business with clear performance improvement due to swift operational and organizational measures 6 CAPITAL MARKETS UPDATE 2025
Page 7
2024 Key Financial Highlights 7 Sales remained at high level of MEUR 560 EBITDA at 18.2% and EBIT margin of 12.5% despite market headwinds Free cash flow doubled y/y; cash position up to MEUR 315 Further reduction of net debt to MEUR 56 or 0.5x EBITDA Strong balance sheet with 50% equity ratio maintained Dividend of EUR 1.75 p. s. proposed – 61% payout -ratio CAPITAL MARKETS UPDATE 2025
Page 8
Solid earnings performance in a challenging market environment • Sales remained at high level with lower sales in the AMS-division largely offset by higher sales in the OE business. • EBITDA and EBIT margins declined y/y but remained at solid double-digit levels. • Profit after tax impacted by higher effective tax rate (28.8%). • Earnings per share at EUR 2.88. 8 in MEUR 2024 2023 Sales 560.4 585.9 EBITDA 101.9 131.3 EBITDA margin (%) 18.2 22.4 EBIT 70.1 102.3 EBIT margin (%) 12.5 17.5 Profit before Tax 63.6 94.2 Profit after Tax 45.3 71.6 Earnings per share (in EUR) 2.88 4.55 CAPITAL MARKETS UPDATE 2025
Page 9
Market expansion in OE drove top line, while AMS declined in H2 • SBO’s Group sales declined by a moderate 4.3%. • Advanced Manufacturing & Services (AMS) was impacted by the industry’s cautious investment behavior in H2. • Oilfield Equipment (OE) sales grew by 7% y/y despite a weak US market, on the back of the successful expansion in strategic growth markets, e.g. Middle East (+48%) and Latin America (+35%). • Bookings of MEUR 483.7 declined by 11% y/y, order backlog was at MEUR 141.8 at year end. 9 437.2 425.6-4.9% +7.0% -13.2% -4.3% CAPITAL MARKETS UPDATE 2025
Page 10
EBIT remained solid with OE significantly improving in H2 10 • EBIT margin at 12.5% despite declines in both segments. • AMS was impacted by lower sales and capacity utilization in H2 2024. • OE faced challenging US market dynamics and one-off expenses in H1 2024 due to operational and organizational measures. • However, OE EBIT improved significantly in H2 2024, from MEUR 2.2 in H1 to MEUR 14.5 or 10.1% of sales in H2. CAPITAL MARKETS UPDATE 2025
Page 11
27.1 33.1 66.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2022 2023 2024 FREE CASH FLOW in MEUR Free cash flow doubled mainly due to lower working capital 11 • Free cash flow doubled due to reduced working capital and slightly lower capex. • Working capital declined in 2024 leading to a MEUR 22.3 cash inflow compared to a MEUR 31.5 working capital increase in 2023, mainly due to inventory. • CAPEX of MEUR 34.6 was primarily related to the expansion in Vietnam, capex in 3D-metal printing capacity and in rental fleet of drilling tools. 1 Free cash flow included an acquisition -related outflow of MEUR 18.6 (Praxis Completion Technology) 1 CAPITAL MARKETS UPDATE 2025
Page 12
Total assets: MEUR 986 Other current assets MEUR 334 Liquid funds MEUR 315 29% 36% 15% 20% 19% 33% 48% Non-current liabilities MEUR 318 Equity MEUR 493 Property, plant & equipment MEUR 145 Other non-current assets MEUR 192 (thereof goodwill: MEUR 147) Balance sheet remains very strong with MEUR 315 in cash • Equity up to MEUR 493, reflecting an equity ratio of 50.0% (2023: 53.9%) despite a MEUR 150 asset increase. • Cash position increased to MEUR 315 (2023: MEUR 162), driven by high free cash flow and long-term debt raised on favorable terms in H2 2024. • Net debt further reduced to MEUR 56 (2023: MEUR 92). • Gearing significantly down to 11.4% (2023: 20.6%). 12 As of 31 December 2024, in MEUR (percentages rounded to reflect 100%) Current liabilities MEUR 175 19.5% 14.7% 33.9% 31.9% 50.0% 32.2% 17.8% CAPITAL MARKETS UPDATE 2025
Page 13
ESG - Solid progress on environmental objectives 13 • First year of CSRD reporting with voluntary limited assurance review by group auditor. • Double materiality assessment led to deeper anchoring of ESG awareness and defined measures across the value chain. • Scope 2 emissions further reduced due to increased PV-capacity and lower-emission electricity used. • SBO received several awards and recognitions in 2024 for its continuous ESG efforts. EMISSIONS CAPITAL MARKETS UPDATE 2025
Page 14
Outlook 2025 - Navigating short-term market dynamics • Market environment remains complex in 2025 , undermined by policy changes, geopolitical uncertainties and evolving global trade tensions. • International trade and tariff situation is highly dynamic . So far, the enacted or announced policy changes are not impacting SBO’s business. • With our global footprint and manufacturing locations across the US, Europe and Asia we are well positioned to adjust and optimize our supply chain as needed. 14CAPITAL MARKETS UPDATE 2025
Page 15
Short term priorities are clear - confidence in long-term outlook remains • Advanced Manufacturing & Services: • Economic uncertainties are leading to a continued moderation in customer spending. • SBO is adjusting capacity to maintain operational efficiency. • Oilfield Equipment: • Focus on high-growth regions and diversification. • Performance improvement expected to continue due to measures taken in 2024. Confidence in the long -term outlook for the energy sector remains due to growing global energy demand, emphasis on energy security and energy transition. 2025: Navigating short -term market dynamics – implementing recalibrated strategy 15CAPITAL MARKETS UPDATE 2025
Page 16
www.sbo.at