ABL Group — Investor Presentation 2024

Sep 12, 2024

Pareto Securities' 31st Annual Energy Conference

12 September 2024

abl-group.com

Disclaimer

• This Presentation has been produced by ABL Group ASA (the "Company" or "ABL Group") solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, has not been reviewed or registered with any public authority or stock exchange, and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its importance. However, no representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary companies or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.
• This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.
• AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY'S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.
• SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.
• By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.

Revenue base increased 11x since 2017

Key acquisitions

• 2014: OWC
• 2019: Braemar Technical Services (BTS), forming AqualisBraemar
• 2020: LOC Group, forming ABL Group
• 2021: East Point Geo, OSD-IMT
• 2022: Add Energy
• 2023: AGR, Delta Wind Partners
• 2024: Ross Offshore, Hidromod

The ABL Group family

ABL Group ASA – a global brand family combining the deepest pool of expertise across energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans throughout the life-cycle of a project of asset.

The Energy & Marine Consultants.

Global, independent energy, marine and engineering consultant working to derisk and drive sustainability across projects and assets in renewables, maritime and oil & gas.

The Energy & Software Consultants.

Multi-disciplinary engineering consultancy and software provider specialising in wells and reservoirs.

The Renewable Energy Consultants.

Dedicated engineering, technical advisory and consultant for the commercial development of offshore and onshore renewable energy.

The Engineering Consultants.

Independent engineering, design and analysis consultants working across marine markets: renewables, oil & gas, maritime, small craft and defence, and infrastructure.

Key services:

• MWS & other asset surveys
• Marine operations support
• Marine casualty support

Key services:

• Wells & reservoir consulting
• Resource solutions
• Software

Key services:

• Renewables consulting
• Owner's engineering
• Technical due diligence

Key services:

• Marine ops engineering
• Vessel & facility design
• Analysis and simulations

Global partner, local expert

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Global footprint provides clients with local expertise and swift response

¹Includes freelancers on FTE basis. Calculated as average during Q2 2024, including Ross Offshore employees.

In 2023, ABL Group Renewables…

...worked on

285 offshore wind projects with

potential capacity of

251 GW

…across 36 countries

2,400+ ...received 1,200+ instructions from unique clients In 2023, ABL Group Maritime… 1,300+ of these instructions were

casualty related

In 2023, ABL Group Oil&Gas…

...carried out

1,200+ rig moves

650+ MWS projects

1,250+ vessel/asset surveys

1,300+ …and worked for different clients

AGR and Ross Offshore not included in above stats

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Project Spotlight

• MWS on Romania's Neptun Deep
• Country: Romania
• Scope of work:
  • Marine Warranty Survey
  • Vessel Assurance
  • DP trials
• Project Particulars:

Largest natural gas project in the Romanian Black Sea, to be developed in 100 – 1700m of water depth. Multi-year project.

• MWS on Franco-Spanish Interconnector
• Country: France & Spain
• Scope of work:
  • Marine Warranty Survey
  • Vessel Assurance
  • DP trials
• Project Particulars:
  • 4x cables with transmission capacity of 2 x 1000 MW

• Launch of PSV Design Series IMT-Isca
• IMT-Isca Properties:
  • Next generation of the successful IMT-984 or G-Class series
  • High-efficiency in terms of low-fuel consumption, environmental and cost efficiencies
  • Flexible design series to meet the needs of a versatile offshore energy market

• Northern Lights CCS Project
• Country: Norway
• Scope of Work:
  • Well control assessment of equipment and processes for workover operations in CO2 injection wells
  • Advanced risk mitigation strategies for operational integrity

Acquisition of Ross Offshore completed on 17 June

• ABL Group acquired Ross Offshore for a purchase price of USD 9.5m (USD 5.4 million net of cash)
  • Cash consideration of NOK 100 million (USD 9.5 million)
  • On completion, the business held net cash of USD 4.0m after strong cash flow since locked box date (1 January)
• Ross Offshore will be reported under the AGR segment and will expand and further strengthen the Group's service offerings in wells, reservoir operations and other consultancy services.
• Transaction was completed on 17 June 2024

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• Ross Offshore consolidated in Q2 balance sheet – P&L effect from Q3 onwards

Net purchase price (USDm)

Net purchase price	5.4
Net debt (cash) on closing	(4.0)
Cash consideration	9.5

Key Financials (USDm)1,2

	2021	2022	2023	1H24
Core revenue	49	50	44	20
Vessel recharges	31	32	36	14
Total revenue	80	82	80	34
EBIT	2.3	1.6	2.9	0.5
EBIT margin (gross)	3.0%	1.9%	3.7%	1.3%
EBIT margin (net)	4.8%	3.2%	6.6%	2.3%
Net working capital	-3.0	-1.0	-1.2	-4.7

ABL Group to acquire Hidromod

• ABL Group has entered into an agreement to acquire 100% of Hidromod, Portugal's leading consultancy in water management solutions and numerical modelling
• The undisclosed purchase price will be financed by ABL Group's existing cash holdings and undrawn credit facilities
• Completion expected October 2024

About Hidromod

• Leading providers of water management solutions and numerical modelling for hydrological and marine forecasting
• Brings subscription-based software AquaSafe: Processing massive datasets to provide clear water behaviour analyses to ports and other water related sectors
• Based in Lisbon with 16 employees, Hidromod delivered revenues of EUR 1 million in 2023
• Established reputation in strategic market of Portugal, built through 30 years of technical excellence
• Builds on ABL Group's existing portfolio of ports & harbours, software and climate change risk assessment/adaptation consultancy

RENEWABLES

Offshore wind: Slowdown extended, but long-term view remains strong

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Offshore wind projects by installation year (GW) ¹ Comments

• High interest rates and developer caution/sentiment continue to impact offshore wind roll out – installation volume has generally been delayed 18-24 months
• We believe market has bottomed out, but projects keep sliding to the right
• Recovery timing hard to predict, but currently don't expect significant improvement before 2H 2025
• Long term prospects remain strong, with rapidly accelerating installation plans 2028-2031 expected to drive development support work 2025-2028
  • OWC supports projects from auction stage, but largest volumes of work are post auction, around 3-5 years before installation
  • ABL and Longitude primarily supports projects before and during installation
• OWC actively investing in growth in renewables markets outside offshore wind in order to diversify exposure

OIL & GAS

Overall solid market - downtick in jackup activity mainly in Saudi Arabia

E&P spending (Y/Y chg)

Regular dividends: Semi-annual dividend of NOK 0.4 per share paid in June

• NOK 0.40 per share dividend paid in June, corresponding to USD 4.8 million
  • ABL Group has implemented a semi-annual dividend schedule
  • The Board will declare an additional dividend during the second half of 2024
• Returning capital to shareholders remains a strategic priority for ABL Group
  • 7.6% dividend yield LTM¹

Paid and proposed dividends

Summary and outlook

• Revenue base increased 11x since 2017 through transformative acquisitions and organic growth, forming a leading global energy and marine consultancy
• We remain active in consolidation of the energy consultancy industry
  • Acquisition of Ross Offshore completed, strengthening AGR segment
  • Acquisition of Hidromod announced, strengthening ABL's offerings in ports & harbours and climate change risk consultancy
• Mixed market outlook
  • O&G: Overall solid market expected to support high activity rest of year
  • Renewables: We retain a positive long-term view and believe the offshore wind market has bottomed out, but we currently don't expect significant improvement before 2H 2025 amid continued project delays
  • Maritime: Maintaining strong position in stable market
• Improving capital efficiency and returning cash to shareholders on semi-annual schedule
• Semi-annual dividend of NOK 0.40 paid in June 2024, corresponding to USD 4.8 million
• Additional dividend to be declared and paid during the second half of 2024

© ABL Group, 2024 abl-group.com