Full Year 2011 Results

Transcription

1 Welltec International ApS Full Year 2011 Results March 2, 2012

2 Safe Harbour Statement Any statement in this presentation that is not a historical fact is a forward-looking statement. Such statements may include opinions and expectations about regarding the Company and its future business, management s confidence and strategies as well as details of management s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside the Company s control, and which could cause the Company s actual results to be materially different from these forward-looking statements. While the Company believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of the Company s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. The Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise. In this presentation, the Company makes references to EBITDA and EBITDA margin, neither of which is defined under International Financial Reporting Standards, as issued by the International Accounting Standards Board and as adopted by the European Union ( IFRS ). The items excluded from EBITDA and EBITDA margin are significant in assessing the Company s operating results and liquidity. EBITDA and EBITDA margin have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, analysis of the Company s results as reported under IFRS. Other companies in the Company s industry and in other industries may calculate EBITDA and EBITDA margin differently from the way that the Company does, limiting their usefulness as comparative measures. 1

3 Today s Presenter Jesper Helmuth Larsen Chief Financial Officer (CFO), joined Welltec in 2008 Previous management positions include CFO and Executive Vice President at the Danish telecom company TDC 2

4 The Welltec Story Global Well Intervention Market (US$bn) c Favourable Industry Backdrop Industry CAGR of c. 15% c. 10 c Superior Technology Offering Vs. 1 In 2011, Welltec performed more than half of all well interventions using tractors (management estimate) 3 Sustainable, Protected Market Leadership 1 1 Welltec has c. twice the number of operational tractors than any competitor 1 1 With Welltec s proprietary and IP protected tractors and tools can perform a series of interventions that cannot be performed with competing tractor technologies Source: Based on company analysis prepared on basis of among other things Spears report As such market forecast is based on 2009 outlook. Based on selected parts of 15 segments within the OFSE market as defined by Spears Note: Addressable market is well intervention services that can be replaced by existing and robotic technology to be developed 3

5 The Welltec Story Welltec Revenues (DKKm) 1,220 4 Consistent, Through-Cycle Organic Growth CAGR: 34% Welltec EBITDA (DKKm) EBITDA (DKKm) Margin (%) 5 Robust Financial Profile with High Profitability and Cash Generation E Welltec Employees 6 Highly Experienced Management Team and Organisation Sales D&E Manufacturing Other operation and Admin Field engineers 2010 Today 4

6 Agenda 1. Key Events 2. Annual Results Capital Structure 4. Outlook

7 1. Key Events

8 Key Events 2011 revenues of DKK 1,220 million an increase of 32% compared to 2010 Strong Performance Across Regions 40% growth in Americas, 29% growth in Europe and Russia Q Revenues of DKK 341 million an increase of 50% compared to Q EBITDA of DKK 593 million representing a 49% EBITDA margin Q4 EBITDA margin of 47% Build Out of Capacity for Future Growth Significant new capacity added throughout the year, in terms of personnel as well as operational tractors Added 148 employees (net); largest increases within sales and field operations Added 26% more operational tractors Issuance of Senior Secured Notes February 2012 issuance of BB- / B1 rated $325 million Senior Secured Notes Listed on the Euro MTF Market of the Luxembourg Stock Exchange 7

9 Key Events Selected Operational Achievements Tractored more than 8.5 million feet in 2011, a growth of 29% Completed a milling profile job in only 6 minutes Removed 2,600 lbs of sand from the well using a Well Cleaner PST Removed hard debris and pulled plug as a riserless, lightweight intervention (RLWI) Completion Products The launch of the completion products took off at the end of 2011 and has continued to experience good momentum First completion products in the form of Well Annular Barriers delivered to customers First installations expected to take place in H opening a significant new market for the Company Additional orders for delivery in H are already in production In Feb 2012, Welltec acquired the Endeavour e-line service business: Endeavour Acquisition Transaction value of DKK 41.1 million (CAD 7.5 million) Increases our asset base and service points in Welltec Canada, Inc. becoming the 5th largest, cased hole e-line provider in the country 8

10 Selected Developments Since Roadshow Welltec Revenues (DKKm) Welltec EBITDA (DKKm) Revenues and EBITDA 1, % 1, % Q LTM 2011 Q LTM 2011 Pro Forma Gross Leverage Pro Forma Net Leverage Gross and Net Leverage 3.6 x 0.4x reduction 3.2 x 3.0 x 0.4x reduction 2.6 x Q LTM 2011 YE Q LTM Pro Forma 2011 YE Note: Pro forma leverage is pro forma for the $325m bbond issuance 9

11 2. Annual Results 2011

12 2011 Full Year Key Figures DKK millions 2011 DKKm 2010 DKKm Growth 2011 USDm 2010 USDm Revenues 1, % EBITDA % EBITDA Margin 49% 53% -4 %pt Cash Flow From Operations % Capex % Note: For convenience purposes, a USD/DKK exchange rate of has been used for USD translation, based on the exchange rate of the Danmarks Nationalbank on December 30,

13 2011 Q4 Key Figures DKK millions Q DKKm Q DKKm Growth Q USDm Q USDm Revenues % EBITDA % EBITDA Margin 47% 37% +10 %pt Cash Flow From Operations % Capex % Consolidated interest expense % Note: For convenience purposes, a USD/DKK exchange rate of has been used for USD translation, based on the exchange rate of the Danmarks Nationalbank on December 30,

14 2011 Financial Performance By Quarter Limited Seasonality But Q-on-Q Fluctuations Revenues (DKKm) EBITDA (DKKm) % 41% (1)% 50% 54% % 90 54% % 159 Q1 Q2 Q3 Q4 Revenues Q1 Q2 Q3 Q4 EBITDA Margin Cash Flow from Operations (DKKm) Capex (DKKm) 25% 73 45% 34% % % 77 38% 26% 23% Q1 Q2 Q3 Q4 CFO % of Sales Q1 Q2 Q3 Q4 Capex % of Sales 13

15 Welltec Performance in Detail Revenue Breakdown by Geography (DKK millions) Selected KPIs MEA and APAC 21.8% Europe & Russia 42.9% MEA and APAC 20.2% Europe & Russia 42.2% Number of Employees (Year-end) Americ as 35.3% Americ as 37.6% Number of Jobs (indexed) MEA and APAC 24.6% Q Q Europe & Russia 36.2% MEA and APAC 16.5% Europe & Russia 45.1% Year-end Number of Operational Tractors (indexed) Countries with Permanent Bases Americ as 39.1% Americ as 38.4% 14

16 Financial Objectives and Policies Strong focus on sustained cash flow generation Disciplined Capex Flexibility in capital spending Active working capital management Target to retain margins at or around historical levels Focus to deleverage Aiming to reduce Net Debt / EBITDA less than 2.5x over the short term High degree of flexibility in Capex Focus on internal organic growth Capex and other investment to be funded through operating cash flow, revolver to be used for working capital swings Flexibility in liquidity management Flexibility in cash management in the group Limited seasonality but potentially significant swings quarter-by-quarter Disciplined hedging policy Material FX exposures managed by forward contracts Risk management process only used for hedging purposes 15

17 3. Capital Structure

18 Capital Structure 31 December, 2011 Pro Forma, Senior Secured Notes Included Capitalisation DKK millions USD millions Cash and Cash Equivalents Senior Secured Notes 1, Revolver 0 0 Finance Leases Total Net Debt 1, Net Debt / EBITDA 2.61 Note: Pro forma debt and net debt based on nominal value of debt 17

19 4. Outlook

20 Outlook Management expects growth for the group both in revenue as well as EBITDA in Outlook Revenue is expected to be in the range of DKK 1,350m to 1,500m EBITDA margin is expected to be at or around historic levels. Current Trading Current trading has been solid with positive development across regions and services compared to same period last year Performance YTD gives management additional comfort in full year outlook 19

21 Upcoming Investor Events Event Place Date and Time Investor Site Visit Allerød, Denmark March 22 nd DnB Oilfield Services Investor conference Olso, Norway March 8-9 th 20

22 Q&A 21