Reach Subsea

Earnings Release • May 8, 2024

Everything within Reach

Jostein Alendal, CEO | Birgitte Wendelbo Johansen, CFO | 08 May 2024

Sustainable access to ocean space

Reach Subsea | First Quarter Consolidated Report 2024

Quarterly Consolidated Report

Disclaimer

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Reach Subsea kickstarting 2024 as anticipated

NOK 575 million Revenue Q1 2024 +146%Y/Y

NOK 29 million EBIT Q1 2024

NOK 1 300 million Order backlog

+60%Y/Y

A record 1Q in terms of activity level and operating results driven by growth, improved pricing, and strong project execution.

EBIT for 1Q2024 was NOK 28.7 million (NOK –8.4 million), while pre-tax result was NOK –8.9 million (NOK 5.6 million).

Strong outlook as evidenced by record high backlog of NOK 1.3 billion and tender volume of NOK 10 billion.

Complete provider of subsea services

IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry

Reach Subsea, assets, services and technology

Serving strong customer base across sectors

Vessel capacity for long-term growth

	VESSELS	TYPE	2024	2025	2
Owned vessels	Viking Reach	Survey, IMR, Light Construction
	Reach Remote 1 & 2	Unmanned and Robotics
	Reach Remote 3 & 4	Unmanned and Robotics
Chartered vessels	Deep Cygnus	Construction
	Go Electra	Survey, IMR, Light Construction
	Olympic Triton	IMR, Light Construction
	Havila Subsea	Survey, IMR, Light Construction
	Olympic Taurus	IMR, Light Construction
	Offshore Surveyor	Survey
	Northern Maria	Survey, IMR
	Agalas newbuild	IMR, Light Construction
Project charter	Olympic Delta	Survey, IMR, Light Construction

Outstanding tender volume NOK 10 billion

Strong order backlog in start of 2024*

*Does not include options and expected call- off extensions under frame agreements

Global Expansion, Technology development and Remote Services Sustainable access to ocean space

The three organic growth levers

Increase service scope on spreads Roll out Reach Remote

IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry

• Currently operating 7 (up to 8 during Q2 2024) Long Term subsea spreads, plus Short-Term project spreads
• Could increase further to strengthen offering in key regions

Grow number of spreads

• Roughly half of spreads currently serving clients with near full scope
• Substantial business potential from bringing remaining spreads to full scope
• Introducing new technology and methods
• Offer clients same service at lower cost, lower HSE risk, and at low/no carbon footprint
• First two units in 2024, with option for eight more
• Expand global service offering based on unmanned operations

Attractive market outlook that support growth strategies

Reach Subsea | First Quarter Consolidated Report 2024

Financials

Q1 2024 Highlights

-

• Strong Q1 quarter leveraged by global operations

• Q1 revenue at NOK 575 million

• Order backlog increased to NOK 1.3 billion

NOK 575 million (NOK 234 million), + 146 %

NOK -9 million (NOK 6 million)

Cash and cash equivalents NOK 201 million (NOK 137 million)

-

Cash positive position; net interest-bearing debt, excl IFRS 16 leases negative NOK 107 million (negative NOK 123 million)

NOK 29 million (NOK -8 million)

Revenue and profits raised to record levels

Rolling 12-month Revenue (MNOK) Rolling 12-month EBIT and Pre-tax profit (MNOK)

Revenue increased 227 percent* last 24 months

Q1 2024 Key developments

Revenue mix by sector Revenue mix by segment

Revenue increased 227 percent* last 24 months

• 146 percent revenue increase for the quarter driven by
  • Increased number of project days
  • Higher pricing
  • Integrated, full service scope
• Solid growth in both oil & gas sector and renewables

Revenue mix by geography

Positioned for growth

• Strong liquidity and equity positions
• Well-positioned for remaining investments in Reach Remote and mobilizations and equipment for the coming year

Solid financial position (MNOK)

Strong growth in vessel capacity and high utilization

ROV days sold and % utilization Vessel days sold and % utilization

Progress on ESG targets

Zero work-related injuries (LTI)

Environment		Social		Governance
Increase activity within non –Oil & Gas segment	CO2 footprint below NSA relevant emission targets	Lost time incidents (LTI) 0%	Zero work-related injuries (LTI)	cyber security courses
Achieved	Ongoing	Achieved	Achieved	Ongoing
Zero major spills of hazardous materials to the sea	Successfully bring two first USVs to market in 2024	Maintain turnover below 8%	10 apprentices and trainees participating yearly in trainee program
Achieved	Ongoing	Achieved		Ongoing

90% completion of Code of Conduct and Anti-bribery courses

Ongoing

Implement and gain 90% completion of Sustainability course

Ongoing

90% completion of cyber security awareness training courses

Summary

Positioned for continued growth and value creation

Reach Subsea | First Quarter Consolidated Report 2024