Digitizing the ocean space
Company Presentation
1th of June, 2021
Strictly private and confidential
Disclaimer
- This presentation includes and is based on, among other things, forward-looking information and statements.
- Such forward-looking information and statements are based on the current expectations, estimates and projections of Argeo or assumptions based on information available to the company.
- Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions.
- Argeo cannot give any assurance as to the correctness of such information and statements.
Key message
Transforming the ocean surveying and inspection industry
..by utilizing autonomous underwater and surface vehicles and unique sensor and imaging technology
..to significantly increase efficiency and quality
..and to substantially reduce the CO2 footprint for the industry
Unique imaging and modelling technology
"Faster, better, greener and at a lower cost"
Transforming the ocean surveying and inspection industry
Highlights
A first mover with zero negative legacy
| 1 |
Successful private
placement and listing on
Euronext Growth |
•
Successful and significantly over subscribed private placement of NOKm
175 with high quality investors
•
Argeo listing on Euronext Growth 26'th of March 2021, ticker ARGEO |
| 2 |
Successful market
expansion |
15 billion per year1
•
Total market size of ~NOK 11 –
•
Establishing US presence with first international office being established in Houston to provide access to deep-water
market (and growing Offshore Wind market) |
| 3 |
Growing fleet of advanced
robotics systems |
•
First Hugin Autonomous Underwater Vehicle (AUV) in operation
•
Ordered two identical deep water SeaRaptor 6000 AUV's for delivery in Q3 2021 and Q1 2022
•
All our available surface and underwater robotics systems being used in parallel for a major O&G company |
| 4 |
Strong client interest and
project tendering |
•
Secured nearly full project backlog for Q2 NOK 15-20 million and maintaining 2021 guiding NOK 70-80 million
•
Good market traction and interest from significant clients in O&G, EPCI and Offshore Wind segment, and interest
internationally including West Africa and Asia Pacific |
| 5 |
Attractive financials |
•
Already cash-generating operations and low capex requirements going forward
•
Targeting
revenues of above NOK 1 billion and EBITDA of above NOK 450 million in 2025 |
A technology focused imaging and geo-engineering specialist
- Argeo was established by an experienced team of professionals in 2017 with HQ in Asker, Norway
- The team has spent three years developing the concept and solutions for data acquisition, processing and modelling
- Strong focus on robotized solutions that save time and cost for the customer
- Management with "skin in the game" and global industrial focus
Total estimated revenue and EBITDA (NOK million)
Key market segments for Argeo
Sustainable development goals - focus on reducing carbon footprint in all operations
Segment update – Strong activity across all market verticals
Company
2021 estimated revenues in mNOK
Management team with strong industrial track record
Argeo team – experienced professionals from the seismic and oil & gas sectors
Trond Figenschou Crantz CEO / Founder
- 20+ years of leadership experience from Schlumberger and PGS
- Extensive technical, operational and commercial experience
- B.Sc. In Robotics and MBA
Odd Erik Rudshaug CFO
- 35+ years experience from shipping and oil & gas
- Co-founder & CFO for RXT, experience from PGS and EMGS
- M.Sc. Business & Economics
Thorbjørn Rekdal, PhD CTO
- 20+ years of leadership experience from PGS
- Head of PGS Research and Commercialization
- Leader of the PGS patent commission
- Commercialized several large technology projects
- PhD in Geophysics
Bjørn Jensen COO
- 20+ years of leadership experience from Magseis, iSurvey and PGS
- Global operational responsibility for all PGS marine seismic operations
- M.Sc. In Engineering Cybernetics
Argeo's tools are high-capability AUV's with complimentary abilities
HUGIN 1000 Autonomous Underwater Vehicle
Kongsberg Hugin robots
Mobilization in a 20" + 10" ISO container, anywhere in the world
Ordered second SeaRaptor 6000 meter Autonomous Underwater Vehicle
Argeo's growing deep water robotics «fleet»
Planned project scheduling
Company
| Factory Acceptance Test SR6K #1 |
Q3-2021 |
| Factory Acceptance Test SR6K #2 |
Q1-2022 |
| Mobilizing for Asia Pacific (AP) DSM: |
Q1-2022 |
| Mobilizing for Asia Pacific (AP) DSM: |
Q1-2022 |
|
|
SR6K "twin's" – key features
| Length: |
5.8 meter |
| Weight (in air): |
1.200 kg |
| Depth rating: |
6000 meters |
The AUV's are modular and very mobile (air transportable) with supporting systems which can be strategically placed in our Geomarkets for rapid deployment between regions. All data collected will be processed onboard (the AUV) using onboard-postprocessing and mosaicking software to allow quick turnaround during missions and improved decision making for the customer.
The AUV will be equipped with the latest:
- Kraken MinSAS 120 Synthetic Aperture Sonar (providing large swath area coverage and high-resolution imagery and bathymetry data collection.
- Teledyne Reason T50-S Multi-Beam dual frequency 200/400 kHz Echo Sounder
- Teledyne Benthos Chirp III Sub Bottom Profiler
- iXblue PHINS 6000 INS
- Teledyne RDI Tasman DVL
- CathX Hunter Laser & Camera System.
In addition to a whole host of extra environmental sensors, extra batteries and LARS systems
Unmanned from continent to continent is coming with full force
The Argeo Surface robots
Near-shore Autonomous robot for survey or Hugin surface link to shore
Next generation Long Endurance Autonomous robot
Mariner Long Endurance – key features
- Low carbon footprint
- Uninterrupted shore-to-shore operations; up to 30+ days mission duration
- Unsupervised geophysical, hydrographical and AUV survey
- Link and Dock with Hugin and Eelum system
- Multi sensor installation for shallow water survey
- Launch and Recovery from shore or ship of opportunity.
- Containerized shipping and operation
Eelume Autonomous Underwater Inspection Drone (UID)
Argeo Light Intervention and Inspection services Eelume– key features
The Next Generation Inspection, Maintenance and Repair (IMR) Tool
The snake-like robot Eelume is designed to live permanently underwater and carry out tasks that would normally require the use of a remote-controlled robot from the surface.
Eelume's value proposition will disrupt the Subsea IMR and Offshore wind O&M value chain and significantly improve economics and environmental footprint
Features full autonomy operation with long endurance hibernation and remote operations from Argeo's Control centers internationally
Technology & Engineering (T&E) – project development
- Next Gen. pipeline and electric cable tracker for integrity inspection
- Ensure correct tracking of buried assets
- Allows for 3x speed over ROV
Key features
Benefits
Mariner LE
- Low carbon footprint
- Uninterrupted shore-to-shore operations
- Multi sensor installation for shallow water survey
- Link and Dock with Hugin and Eelume system
- Full onshore Mission Control
- 30-day endurance ~ 5000 km of autonomous data collection
- Integrates all payload sensors and Mission Control communication
Argeo Digital Twin
- Autonomous & robotics digital acquisition simulator
- Real-time sensor data processing
- Project data "Time Machine"
- AI/Analytic sensor data interpretation and integration
- Digital representation of any physical Ocean Space EPCI project
- Integrates all ARGEO AUV/Robotics solutions
- Project lifecycle time-laps monitoring
Value proposition to customers
Fastest and most
cost-effective survey
solutions |
•
A significantly more flexible and faster pure-play provider not dependent on the shipping model
•
More than 50% time
savings and 60% cost reduction compared to traditional ROV survey solutions |
Significantly
reduced emissions |
•
Minimized need for vessel infrastructure and up to 60% reduction in CO2 emissions from
operations |
AUVs provide more
effective data
acquisition |
•
Lowers the number of operators and allows for smaller support/"mother" vessels
•
Allows for higher speed and more effective data acquisition than by using ROVs |
Improved data
quality |
•
AUVs improve the image resolution and data quality by bringing the sensors closer to their targets |
Excellent positioned to fuel the expansion of the offshore wind industry
- Addressable market for Argeo within offshore wind estimated to NOK ~950 million per year going forward
- Geophysical surveys comprise the majority of surveys, usually ~65% of total and hydrographical constituting to ~35%
- Full surveys accounts for ~60% of surveys being performed, while followup surveys constitute ~30%
Addressable market potential by life cycle stage in NOK million (average annual market 2020 – 2025)
Unique offering to the oil & gas business demanding efficiency gains
- Argeo is well positioned to meet a growing demand for more efficient and low-carbon solutions in the broader oil & gas industry
- Estimated total addressable market of NOK ~1.5 – 2.0 billion in Norway, where survey account for ~65% of the total
- Global survey market based on Rystad estimates on total offshore survey spending
- Global inspection market in Norway, adjusted for Norway's share of global IMR according to Rystad
Global: Total annual addressable market within the oil & gas industry (figures in NOK billion)1
Contract and tender activity
Good global interest and tender activity
Commercial project pipeline 2021-2024 (MNOK) value – all statuses included
| Awarded |
80 |
| Tenders/Bids |
340 |
| Project pipeline |
870 |
| Multi Client1 |
27 |
Step-wise roll-out in key markets
- Use the team's experience from rapid buildup of organizations to build and develop organizational capacity and capability
- Invest in AUVs in order to capture additional market share within each of the company's key segments
- Utilize broad industry network to acquire vehicles in the market at attractive pricing and delivery terms
Source: Company
AUVs - Hugin, SeaRaptor, Hover capable AUV or similar
Total number of projects per segment (2021 – 2025)
Revenues and EBITDA (NOK million)
Detailed plan for capturing market share in key segments
- Take advantage of strong track record within Infrastructure to expand into Offshore Wind, Deep Sea Minerals and Oil & Gas
- Even distribution of revenues between defined business segments
- Driven by increasing number of projects, Argeo expect to grow revenues and profitability significantly over the next five years to achieve an EBITDA margin of close to 40%.
Source: Company
13 79 372 598 904 1187 4 15 134 237 368 472 0 200 400 600 800 1000 1200 1400 2020 2021 2022 2023 2024 2025 Revenue EBITDA
Revenue split per segment (NOK million, %)
Infrastructure Offshore Wind O&G Survey & Inspection Deep Sea Minerals Data Modelling & Imaging Other
Robust and profitable case with a low required utilization for breakeven
NOK million
- Due to the pure-play and light business model, Argeo require a relatively low fleet utilization for operations to be breakeven
- Example from 2022 in business plan (first year of "full operation"):
- Breakeven on net earnings at 20%
- Well below the relatively conservative estimate of 42% in business plan
- Robust business case!
EBITDA at various utilization rates – 2022
Source: Company
Investment proposition