Slides
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Capital Markets Update 20 MARCH 2025
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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
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Strategy update 20 MARCH 2025
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recalibrated its strategy. Building on capabilities Diversify in attractive industries New corporate identity Measurable targets
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19 Source: SBO Our capabilities are the foundation to high precision CAPITAL MARKETS UPDATE 2025
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20 Source: SBO Purpose, Vision, and Mission serve as a strategic compass, guiding SBO’s direction and decision-making CAPITAL MARKETS UPDATE 2025
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21 Source: SBO We set measurable 2030 targets for growth and portfolio expansion, value creation, and sustainable operations Growth and Portfolio Expansion Value Creation Sustainable Operations • Grow sales to MEUR 900 until 2030 • > 200 MEUR sales in new business areas • > 20% EBITDA margin over the market cycle • 30% reduction in Scope 1+2 emissions • 10% reduction in Scope 3 emissions by 2030 CAPITAL MARKETS UPDATE 2025
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22 Source: SBO Targets: MEUR 900 in sales by 2030, of which MEUR 200 in new business areas, and an EBITDA margin of > 20% Sales growth path 2024-2030, in MEUR 560 900 340 2024 2030 • Diversification • Market Expansion • Technology Leadership • Operational Excellence • Strategic Cooperations • M&A > 20% EBITDA margin over the cycle > MEUR 200 sales in new business areas: Energy Transition & other industrial sectors CAPITAL MARKETS UPDATE 2025
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23 Source: SBO SBO prioritizes capital allocation with a primary focus on organic growth, followed by dividends and M&A Share buy-back 1 2 3 Capital allocation priorities 4 Organic growth Dividend M&A CAPITAL MARKETS UPDATE 2025
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24 Source: SBO SBO has defined four strategic pillars: Diversification Market Expansion Technology Leadership Operational Excellence Diversification CAPITAL MARKETS UPDATE 2025
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25 Source: SBO We will use our capabilities to access new target industries Oil & Gas Energy Transition Industrial Sector New Target IndustriesExisting Industries CAPITAL MARKETS UPDATE 2025
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Source: SBO, Web SBO will leverage its technology to expand into new target industries, exemplified by three focus areas Geothermal, Helium, CCS & Lithium Drilling 3D metal printing Flow control beyond O&G CAPITAL MARKETS UPDATE 2025 26
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27 Source: SBO Already today we offer flow control components for the Oilfield Service Industry – in the future SBO will expand its focus to include flow-control beyond O&G Overall Flow Control Industry Oilfield Service Industry CAPITAL MARKETS UPDATE 2025
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28 Source: SBO There is a clear rationale for SBO to grow into Flow Control niches outside O&G Huge Market (USD 262 bn) Leverage capabilities of SBO to diversify (optional M&A) 6 1 High Margins (>20% EBITDA) in profitable niches SBO already in flow-control, but only Oil & Gas 25 Various industries with lower cyclicality Same technologies applicable in diverse industries 34 Flow Control Rationale CAPITAL MARKETS UPDATE 2025
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Key criteria 29 Source: SBO Clear M&A criteria established, MEUR 200-300 allocated for funding of strategic acquisitions Transformative M&A outside of O&G as well as bolt-on deals in O&G Synergies and cultural fit Primary focus on North America and Europe Established business, non-dilutive Majority acquisition or full buyouts CAPITAL MARKETS UPDATE 2025
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30 Source: SBO Strategic pillar: Market Expansion Diversification Market Expansion Technology Leadership Operational Excellence Market Expansion CAPITAL MARKETS UPDATE 2025
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31 Source: SBO SBO leverages proven technologies to expand into new geographical markets • ~ 30% spending increase expected for international wells • Driven by increasingly complex horizontal wells • SBO leverages expertise gained in NA market across global basins in Middle East, Latin America and other growth regions • New Dubai facility will serve as a secondary Well Completion HQ and sales hub to the Middle East region • Local manufacturing & assembly in Dubai will support local sales growth CAPITAL MARKETS UPDATE 2025
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32 Source: SBO Strategic pillar: Technology Leadership Diversification Market Expansion Technology Leadership Operational ExcellenceTechnology Leadership CAPITAL MARKETS UPDATE 2025
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• SBO will remain a global leader in high -tech niches across Oil & Gas 33 Source: SBO SBO leverages proven technologies to expand into new target industries • Forging technology , material expertise and CNC machining capabilities around the globe are strategically applied to emerging industries • SBO is a leading 3D metal printing turnkey service provider driving serial production and integrated post-processing • New markets, such as Next- generation geothermal and helium are unlocked by SBO’s market leading drilling and completion technologies CAPITAL MARKETS UPDATE 2025
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34 Source: SBO Strategic pillar: Operational Excellence Diversification Market Expansion Technology Leadership Operational ExcellenceOperational Excellence CAPITAL MARKETS UPDATE 2025
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• Capacity Optimization: Aligning SBO’s capacity to best meet customer needs while maximizing efficiency • Vertical Integration: Implementing vertical integration where it creates the most customer value • Agility: SBO’s global footprint ensures swift adaptation to new tariffs and market shifts • Operational Efficiency: Enhancing productivity through in-house machining of energy equipment 35 Source: SBO SBO is optimizing production capacities to serve customers best and maximize operational efficiency CAPITAL MARKETS UPDATE 2025
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36 Source: SBO All of this represents SBO's new House of Strategy CAPITAL MARKETS UPDATE 2025
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Source: SBO 1 The change of the legal company name to SBO AG will be proposed at the Annual General Meeting in April 2025. The strategic recalibration includes a comprehensive rebranding, introducing a new company name, division names and logo Company Name 1 Logo Division Name Schoeller-Bleckmann Oilfield Equipment AG Oilfield Equipment (OE) Advanced Manufacturing & Services (AMS) SBO AG Energy Equipment (EE) Precision Technology (PT) Old New CAPITAL MARKETS UPDATE 2025 37
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recalibrated its strategy. Measurable targets Building on Capabilities Diversify into new industries New corporate identity
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