Slides
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Moreld Group Fourth quarter 2024 February 14th, 2025 Geir Austigard, Group CEO Trond Rosnes , Group CFO
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Disclaimer Upon engaging with this corporate presentation (the "Presentation"), or participating in any related meeting or presentation, you (herein referred to as the "Recipient") consent to adhere to the stipulated terms, conditions, and limitations. The Presentation is a creation of Moreld AS (the "Company") and is intended purely for informational purposes. It is prohibited to replicate or disseminate it, in whole or in part, to others. The Presentation is tailored for and specifically aimed at individuals for whom the dissemination of such information is legally permissible ("qualified individuals"). Anyone not identified as a qualified individual is advised against acting upon or depending on the Presentation or any of its contents. This Presentation should not be seen as an encouragement to engage in any transactions involving the Company's securities. It's important to note that the circulation of this Presentation could be legally limited in certain areas, and the Recipient is responsible for becoming aware of and complying with any such restrictions. Non-compliance could breach the laws of those jurisdictions. No assurances or guarantees are provided by the Company concerning the Presentation's fairness, accuracy, completeness, or reliability. The Company bears no liability, whether due to negligence or other reasons, for any losses resulting from any entity's reliance on the information presented in the Presentation. The information contained herein is subject to significant changes without prior notice. This Presentation contains forward-looking statements, which are not based on historical data and are typically referred to as "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should", among others. These forward-looking statements represent the Company's current expectations and beliefs regarding its future financial performance, liquidity, prospects, growth, and strategic direction. Such statements are inherently uncertain and involve risks since they pertain to future events and conditions that may or may not materialize. Therefore, forward-looking statements do not guarantee future results, and there is no assurance that the anticipated outcomes will be achieved. Investing in the Company carries substantial risk, and various factors could lead to actual results, performance, or achievements significantly deviating from any future results, performance, or achievements suggested or implied by the information in the Presentation. The Company reserves the right to update or revise the information in the Presentation, including forward-looking statements, owing to new information, future events, or other reasons. The laws of Norway govern this Presentation, and any disputes related to this Presentation will be exclusively resolved under the jurisdiction of Norwegian courts.
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Moreld Group – 2024 summary 9.1 bNOK Revenue LTM1) (2024) 1 075 mNOK Adjusted EBITDA excl. IFRS 16 LTM 2) (2024) 32 Offices ~2 000 Employees ~800 External consultants 1) Proforma number, including Ocean Installer from January 1st 2) Excluding one off transaction costs Apply MORELD APPLY OCEAN INSTALLER GLOBAL MARITIME MAINTENANCE & MODIFICATION COMPANY LEADING SUBSEA INSTALLATION COMPANY MARINE, OFFSHORE AND ENGINEERING CONSULTANCY # of EmployeesShare of 2024 EBITDA NOK 730m NOK 65m 2024 EBITDA NOK 283m 26% 1 341 68% 349 6% 286 3
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Q4 2024 Highlights 4 REVENUE 2.4 bNOK ▪ Robust activity levels in Q4 considering North Sea low season and multiple vessel transits to Western African projects ▪ Increased contribution from maintenance & modification projects EBITDA* 128 mNOK ▪ Full-year adjusted EBITDA in upper range of guidance, reaching 1,075 million NOK ▪ Lower margin in Q4 compared to Q3 due to seasonal reduction in activity, vessel transits and commencement of new projects Net interest bearing debt 146 mNOK ▪ Cash balance of 1,500 million NOK ▪ Interest bearing debt of 1,646 million NOK (excluding lease liabilities) ▪ Net interest-bearing debt to EBITDA reduced to 0.1x Backlog 9.9 bNOK ▪ Contracted backlog with delivery in 2025 reached 7 billion NOK ▪ High tender activity expected over the next quarters *EBITDA excluding lease liabilities and one -off transaction costs
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Recent Events 5 SUCCESSFUL IPO AND LISTING ▪ Successful IPO in December 2024, raising 950 million NOK ▪ Repaid 80 million USD of interest-bearing debt following the IPO, with an additional 35 million USD repaid after quarter-end NEW BOND ISSUE ▪ Issued a new 130 million USD bond in the Nordic market in January 2025 ▪ Paving the way for full redemption of the existing 225 million USD bond facility SALE OF CAPNOR ▪ Sale of Capnor (subsidiary of Moreld Apply) concluded in October ▪ The sale generated 208 million NOK in net proceeds
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Distribution to shareholders 6 ▪ Moreld has a solid balance sheet with capacity to return shareholder value through dividends and share buybacks ▪ The board has resolved to approve an updated dividend policy ▪ Dividends will be paid out on a quarterly basis starting from Q2 2025, subject to approval at the annual general meeting (AGM) ▪ Dividends to be resolved as part of the quarterly financial statements in February, May, August and November each year ▪ Moreld aims for a distribution ratio of 40-60% of adjusted net profits over time ▪ The board may approve share buy-backs when deemed relevant ▪ In line with the new policy, Moreld’s board intends to propose an initial dividend of NOK 0.42 per share for Q2 2025 to the AGM (approx. NOK 75 million) ▪ The AGM is expected to be held on 20 May 2025 Updated policy Initial dividend Quarterly dividends Distribution ratio
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Robust performance driven by maintenance activities on offshore and onshore assets 1. Robust performance driven by large Maintenance & Modification (M&M) projects offshore 2. Supported the Draupner maintenance project for Equinor with 90+ offshore personnel mobilized 3. Increasing activity within onshore operations, with key deliveries to a customer in the metallurgical industry 4. Significant prospects identified for 2026, several of the large operators on the NCS are tendering M&M frame agreements Moreld Apply Comments 7
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Delivered results in line with expectations, vessels in transit to new markets during the quarter 1. Demonstrated results in line with expectations, activity levels partly impacted by vessel transits and start of new projects 2. Order intake reached NOK 1.1 billion following several awards, representing a 133% increase compared to Q4 2023 3. Two vessels in transit to West Africa, where they commenced projects for Total Energies and Baker Hughes 4. A third vessel engaged in pre commissioning activity in the Barents sea for Equinor Ocean Installer Comments 8
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Expected seasonal slowdown coinciding with the conclusion of the Hywind Scotland project 1. Expected slowdown in activity driven by lower seasonal demand in the winter and conclusion of large projects 2. Conclusion of major floating wind maintenance project with the reconnection of the Hywind Scotland wind turbines in October 3. Stable growth in the Marine Warranty part of the business 4. High tender activity in the quarter, backlog increased with ~90 NOK million compared to Q3 Global Maritime Comments 9
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Solid order backlog from blue chip customers 143 7,006 2025 2,392 2,934 >2026 2,535 9,941 Total 7,149 5,326 12,476 4,945 536 4,460 Moreld Apply Global Maritime Ocean Installer Options Contracted* *Contracted value of M&M-frame agreements are estimated, as the final contract size is based on call-offs All numbers in million NOK Backlog by year Contracted backlog by company ▪ 9.9 billion NOK order backlog end of Q4, of which 7 billion NOK is secured work for 2025 ▪ Strong tender pipeline in the subsea and M&M segments combined with solid order backlog provides good visibility for the future ▪ Major awards in the M&M-market expected in second half 2025 10
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Financials Trond Rosnes - CFO
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Moreld Group financial performance Q4 results in line with normal seasonal variations and project cycles Revenue* Adj. EBITDA excl. IFRS 16* Leverage Ratio* 9.1 bn YTD (Excl. Capnor) 1 075 m YTD (Excl. Capnor) 0.1x Net Debt 146 Q1 24 Q2 24 Q3 24 Q4 24 1,595 2,516 2,599 2,450 2,7 1,7 0,9 0,1 Q1 24 Q2 24 Q3 24 Q4 24 ▪ Lower margin compared to previous quarters, driven by seasonal activity trends and profit recognition phasing on large projects, Q1 and Q4 are historically quarters with lower activity and margins ▪ Leverage ratio significantly reduced to 0.1x due to new equity from the private placement, proceeds from the sale of Capnor and continued strong cash flow generation ▪ Full year EBITDA target reached with a proforma adjusted EBITDA of 1 075 million NOK excl. IFRS 16 and one-off transaction costs *Ocean Installer included on a proforma basis. The acquisition of Ocean Installer closed June 28 th Leverage ratio = LTM NGAAP EBITDA / NIBD (excl lease liabilities) All numbers in million NOK unless otherwise stated 141 419 388 1288.9% Q1 24 16.7% Q2 24 15.0% Q3 24 5.2% Q4 24 EBITDA% EBITDA 12
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Moreld Apply financial performance Revenue EBITDA excl. IFRS 16 3.9 bn YTD 318 m YTD 753 911 901 Q1 24 Q2 24 Q3 24 Q4 24 1,223 ▪ Q4 revenue of 1,223 million NOK, up 36% compared to previous quarter ▪ The busiest quarter of 2024, supporting multiple maintenance campaigns on the NCS All numbers in million NOK unless otherwise stated Figures does not include Capnor, which is a subsidiary of Moreld Apply that was sold during 2024 58 86 54 85 7.7% Q1 24 9.4% Q2 24 6.0% Q3 24 7.0% Q4 24 EBITDA% EBITDA ▪ Q4 EBITDA of 85 million NOK which is on par with the strong second quarter ▪ Margin % lower in second half of the year mainly due to larger share of equipment bought on behalf of customers and projects with lower gross margins in the revenue mix 13
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Ocean Installer financial performance 14 Revenue EBITDA excl. IFRS 16 4.5 bn YTD 730 m YTD 653 Q1 24 Q2 24 Q3 24 Q4 24 1,374 1,442 1,040 All numbers in million NOK unless otherwise stated 306 310 48 10.3% Q1 24 22.3% Q2 24 21.5% Q3 24 4.6% Q4 24 67 EBITDA% EBITDA ▪ Q4 revenue of 1,040 million NOK, expected reduction from previous quarters ▪ Transfer of two vessels to work on projects in West Africa ▪ Q4 EBITDA of 48 million NOK, drop in EBITDA compared to Q2-Q3 in line with expectations and previous guidance ▪ Cyclicality in margins, impacted by number of contracted vessel days and prudent profit recognition from projects in start-up phase
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Global Maritime financial performance 15 Revenue EBITDA excl. IFRS 16 0.9 bn YTD 65 m YTD 192 234 254 213 Q1 24 Q2 24 Q3 24 Q4 24 All numbers in million NOK unless otherwise stated 16 28 25 -4 8.3% Q1 24 12.0% Q2 24 9.8% Q3 24 -1.9% Q4 24 EBITDA% EBITDA ▪ Q4 revenue of 213 million NOK, with activity slowing down compared to previous quarters ▪ Lower demand for Global Maritime’s services in the winter season with fewer marine operation projects available ▪ Q4 EBITDA of -4 million NOK, due to lower activity and reduction in availability of internal resources after high activity in previous quarters ▪ Record full year EBITDA of 65 million NOK, following a successful execution of the large Hywind Scotland maintenance project
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Capital efficient operating model 16 Comments ▪ Capital efficient operating model with high share of customer prepayments ▪ Targeting prepayments on all major contracts. NWC position in Q4’23 driven by several large customer prepayment ▪ Current NWC level lower than last twelve months average ▪ High variations in working capital from quarter end to quarter end due to timing of invoicing and prepayments from customers -389 -342 -900 -800 -700 -600 -500 -400 -300 -200 -100 0 -875 Q4 23 Q1 24 Q2 24 -543 Q3 24 -780 Q4 24 NOK millions Development in net working capital Ocean Installer included on a proforma basis. The acquisition of Ocean Installer closed June 28th All numbers in million NOK Normalized working capital
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Low debt levels post-IPO 17 146 750 750 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 GIBD Cash NIBD incl. lease liabilities 2,038 Lease liabilities NIBD excl. lease liabilities 3,684 1,500 2,184 NOK millions Comments ▪ Gross interest-bearing debt consists of 145 million USD Senior Secured Notes following the 80 million USD redemption in end of December and lease liabilities accounted for under IFRS 16 ▪ 197 million NOK in unused credit facilities on top of the cash balance of 1 500 million NOK ▪ Cash balance includes 750 million NOK in customer prepayments ▪ NIBD is adjusted for leasing liabilities under IFRS 16. The leasing liabilities relates to vessel chartered by Ocean Installer and office leases ▪ Reported proforma EBITDA excl. IFRS 16 was NOK 1,075 million compared to IFRS EBITDA of NOK 2,322 million GIBD = Gross interest-bearing debt NIBD = Net interest-bearing debt (Gross interest-bearing debt – Cash) All numbers in million NOK Breakdown of NIBD 31.12.24 Customer prepayments
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Strong underlying cash conversion impacted by one-off financing events 186 629 81 63 232 494 258 154 874 107 0 500 1,000 1,500 Cash balance 1st January EBITDA excl. IFRS 16 (as reported)* Change in NWC Capex Bond interest paid Outflow from acquisitions, including acquired cash Inflow from divestments, including disposed cash Net cash from bond issues and repayments Net proceeds from equity raise** Other Cash balance 31st December 1,500 NOK millions *EBITDA as reported only includes Ocean Installer from July 1st **Greenshoe option from the IPO-process which raised additional 52 million NOK in equity was concluded in January and hence not included in the cash balance on December 31st All numbers in million NOK 18
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Promising outlook for 2025 supported by a solid order backlog ▪ Activity expected to pick up during Q1, with key projects started during Q4 moving from mobilization to execution phase ▪ Award of 50+ exploration licenses on the Norwegian continental shelf is a positive sign for the long-term demand for Moreld’s services ▪ Strong tender pipeline in both the subsea and Norwegian Maintenance & Modification markets in 2025 ▪ Moreld maintains 2025 EBITDA excl. IFRS 16 guidance of 0.9-1.1 billion NOK, supported by a continued positive market outlook Outlook 19
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Q&A 20
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For further information, contact Trond Rosnes - Group CFO trond.rosnes@moreld.com Visit www.moreld.com and connect with us on LinkedIn: www.linkedin.com/company/moreld
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Appendix: Key figures 22