Slides
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Conference Call Q1 2025 22 MAY 2025
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Important information This company presentation and the information contained are, unless noted separately, proprietary to Schoeller-Bleckmann Oilfield Equipment AG (SBO) and not meant to be reproduced or distributed to third parties. The information contained is based on SBO’s current views, estimates and assumptions and describes in a general manner the corporate strategy and recent development of SBO and provides some industry background. They do not replace sound and independent judgment on the quality of the business of SBO and the valuation 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 information contained complete and accurate and to correct errors brought to its attention within reasonable time, SBO expressly disclaims any obligation to keep or make the information contained comprehensive, complete, accurate and up-to-date and does not publicly release updates on this company presentation. SBO does not provide earnings guidance. Nevertheless, this company presentation contains forward-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 information contained in this company presentation including forward-looking statements or discussed verbally based thereon. SBO, and the persons acting on its behalf, do not accept any liability whatsoever arising from the use of this company presentation or its content or otherwise arising in connection therewith. 2
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Business results Q1 2025
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Q1 2025 Business Highlights • Market dynamics shaped by declining oil prices, trade tensions and tariff announcements resulting in increased economic uncertainty • SBO with resilient performance: Sales declined by 11.9% but EBITDA margin remained high at 20.4%. • Lower sales-driven earnings in Precision Technology largely compensated by improved performance in Energy Equipment. • Free cash flow increased to MEUR 13.3, gearing reduced to 9.7% • Technology highlights: Launch and commercialization of key innovations and upgraded drilling technology started 4
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Q1 2025 Key Financial Highlights 5 Sales declined by 11.9% but remained at solid level of MEUR 129 EBITDA at MEUR 26.4 and EBIT at MEUR 18.3 - lower earnings in PT compensated by EE Free cash flow increased to MEUR 13.3; cash position at MEUR 323 Net debt further reduced to MEUR 47.1; gearing at 9.7% Strong balance sheet with 50% equity ratio maintained Approved dividend of EUR 1.75 p. s.– MEUR 28 payout in Q2
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Earnings remained high despite lower sales • Sales remained at solid levels, albeit 11.9% lower than in Q1 2024, mainly due to a significant decline in the Precision Technology division driven by reduced customer demand. • EBITDA and EBIT slightly below the previous year: reduced sales and lower capacity utilization in PT were largely offset by higher earnings in EE as well as supportive FX gains. • EBITDA and EBIT margins increased. • Profit after tax remained solid at MEUR 13.0, earnings per share at EUR 0.83. 6 in MEUR Q1 2025 Q1 2024 Sales 129.2 146.7 EBITDA 26.4 28.8 EBITDA margin (%) 20.4 19.6 EBIT 18.3 20.6 EBIT margin (%) 14.2 14.0 Profit before Tax 17.4 19.2 Profit after Tax 13.0 15.0 Earnings per share (in EUR) 0.83 0.95
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Sales decline driven by significant reduction in PT, partially offset by double-digit growth in EE • Group sales declined by 11.9% in Q1 2025. • Sales in Precision Technology (PT) declined by 29.7%, clearly impacted by a further reduction in customer demand. • Energy Equipment (EE) sales grew by 10.5% y/y driven primarily by higher sales in the US and the ongoing expansion internationally. • Bookings of MEUR 108.3 came in 8.7% lower y/y; largely stable compared to Q4 2024 (MEUR 110.8). • Order backlog stood at MEUR 124.1 at the end of March, down from MEUR 141.8 at year end. 7 437.2
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Despite lower sales driven earnings in PT, EBITDA margin at 20.4%, thanks to improved performance in EE 8 • EBITDA and EBIT remained solid. • Earnings in Precision Technology were impacted by the 29.7% drop in sales, which drove capacity utilization down, partially compensated by favorable FX gains. • Energy Equipment performance improved compared to Q1 2024, mostly due to the higher sales volume and a more favorable product mix.
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2.5 13.3 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 Q1 2024 Q1 2025 FREE CASH FLOW in MEUR Free cash flow increased significantly mainly driven by working capital 9 • Free cash flow increased by MEUR 10.8 mainly due to MEUR 13.6 lower working capital needs. • CAPEX increased to MEUR 10.1 compared to EUR 7.8 in Q1 2024, including the facility expansions in Vietnam and the Middle East.
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Total assets: MEUR 973 Other current assets MEUR 319 Liquid funds MEUR 323 29% 36% 15% 20% 19% 33% 48% Non-current liabilities MEUR 319 Equity MEUR 485 Property, plant & equipment MEUR 146 Other non-current assets MEUR 185 (thereof goodwill: MEUR 141) Balance sheet remains very strong: net debt and gearing further reduced • Equity at MEUR 485, reflecting an equity ratio of 49.8% (12/2024: 50.0%) slightly impacted by currency translation effects. • Cash position increased to MEUR 323 (12/2024: MEUR 315), driven by the free cash flow. • Net debt further reduced to MEUR 47 (12/2024: MEUR 56). • Gearing further reduced to 9.7% (12/2024: 11.4%). 10 As of 31 March 2025, in MEUR (percentages rounded to reflect 100%) Current liabilities MEUR 169 19.0% 15.0% 32.8% 33.2% 49.8% 32.8% 17.4%
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Market outlook • Market environment remains complex and challenging: Low oil prices, global trade tensions and continued tariff uncertainty • Key customers, particularly in the Precision Technology division, have revised their capital expenditure for 2025 downward, notably in North America. • 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. 11
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2025 tariff environment: SBO with strong global setup 12 USA: strong industrial base • ~44% of employees • >85% local-for-local • Limited imports to the US, mainly from Europe Vietnam: • ~7% of employees • ~80% local-for-regional • Exports mainly to APAC, ME Europe: • ~27% of employees • >90% local-for-global • Exports mainly to APAC, ME, US Middle East: • ~7% of employees • ~85% local-for-regional • Exports mainly to Africa, APAC
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Short term priorities are clear - confidence in long-term outlook remains • Precision Technology: • “Wait-and-see” approach by customers: lower bookings and push outs • Adjusting capacity and cost base • Focus on business diversification in attractive industries • Energy Equipment: • Cautious market sentiment in the US • Focus on high-growth regions, diversification and product innovations • Mitigating tariff risks where applicable Confidence in the long-term outlook for the energy sector remains due to growing global energy demand, emphasis on energy security and energy transition. 13
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www.sbo.at THANK YOU FOR YOU PARTICIPATION Next company update: 21 August – Half -year results