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Investor Presentation The UKs leading provider of hazardous waste management solutions November 2019 Disclaimer The information in this presentation (the " Presentation ") has not been independently verified and must not be regarded


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The UK’s leading provider of hazardous waste management solutions

Investor Presentation

November 2019

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Disclaimer

The information in this presentation (the "Presentation") has not been independently verified and must not be regarded as any kind of profit forecast or profit estimate. In addition, the Presentation contains forward-looking statements, which are, by their nature, inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. All statements that address expectations or projections about the future, including statements about operating performance, market position, industry trends, general economic conditions, expected expenditures and financial results, are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates" and similar expressions. Any statements contained herein that are not statements of historical fact are forward-looking statements. There are a number of factors including, but not limited to, commercial, operational, economic and financial factors, that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Augean PLC's (the "Company") ability to control or estimate precisely, such as changes in taxation or fiscal policy, future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators, or other risk factors, such as changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions on a global, regional

  • r national basis. These forward-looking statements speak only as of the date of the Presentation. The Company does not undertake any
  • bligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this
  • presentation. Accordingly, undue reliance should not be placed on these forward-looking statements. In particular, but without prejudice to the

generality of the above, no representation or warranty is given, and no responsibility or liability is accepted, either as to the achievement or reasonableness of any future projections, forecasts, estimates or statements as to any prospects or future returns contained or referred to in the Presentation or in relation to the basis or assumptions underlying such projections or forecasts. The price of the Company’s shares and any income from them may go down as well as up and investors may not get back the full amount invested on disposal of such shares.

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88% 12% 73% 27%

Augean at a glance

Business overview Revenue and EBITDA contribution (2018A)

Augean is the UK’s leading hazardous waste management business with a strong and diverse customer base across a range of sectors and throughout the UK

Reliable and diverse revenue stream against which to

  • perate key assets which are strategically located in respect
  • f customers served

Augean offers the full spectrum of hazardous waste services, from disposal via hazardous landfills to treatment for recovery or re-use of waste types

Specialist critical analysis of best waste treatment / disposal routes for customers

With 40% of the UK hazardous waste landfill and three associated dedicated treatment plants, the business is underpinned by secure long term disposal facilities

Hazardous waste types treated originate from UK EfW plants, waste from construction / demolition projects, industrial processes, decommissioning of UK nuclear estate and the O&G industry

Strengthened and lean business built over the last two years with a focus on growing in key markets which are highly profitable with high EBITDA margin, cash generative and high ROCE

Investment opportunities to extend the scope and diversity of the business still remain and provide a platform to sustain good growth into the future Geographical footprint

Avonmouth Paisley Port Clarence PC Waste Recovery Park East Northants RMF Thornhaugh Great Yarmouth Dundee Aberdeen Lerwick

£80m £19m

Revenue (£m) EBITDA (£m)

The UK’s leading provider of hazardous waste management solutions

Treatment and Disposal North Sea Services

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Group divisional overview

  • Est. Mkt.

size Market niche growth Competitive advantages

Treatment & Disposal EfW residue Construction & industrial waste Radioactive waste services Treatment & recovery North Sea Services Drilling and Well Abandonment Industrial Services Waste Services

Treatment and disposal

  • f by-products

generated from EfW and biomass plants (e.g. APCr ash) Treatment and disposal

  • f contaminated waste

from construction / demolition activities and specialist manufacturers Disposal of low level activity radioactive waste mainly generated from decommissioning

  • f UK nuclear plants

Recovery and recycling

  • f oil and solvents and

the generation of secondary liquid and solid fuels from haz packaged waste Waste management waste generated from the drilling and abandonment of wells Cleaning and decontamination services, including vessel, tanks tube bundles cleaning General waste management services to active O&G rigs and platforms

  • c. £1.5bn – £2bn

✓ Most competitive

pricing

✓ Unique know-how ✓ Multiple sites with

national coverage

✓ Specialist

customer and technical support team

✓ Soil washing

capabilities

✓ Only disposal site

capable of accepting radioactive hazardous waste

✓ Preparation &

cleaning pre disposal

✓ On-site Technical

Resource capability

✓ Comprehensive

treatment for all waste types

✓ Multiple sites with

national coverage

✓ Multi skilling

capabilities – allowing for a wide range of in house services

✓ Strategic

access to decommission- ning hub and know-how

✓ One-stop-shop

waste management solutions for the offshore O&G industry

Active across multiple niche and attractive hazardous waste markets, with leading positions

Divisions and waste value streams

  • c. £1bn
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Strategy post August 2017

Overall Group strategic focus

Focus on extending the reach and share of existing growth niche markets

Waste streams / customers profitability

Maintain focus on margin and ROCE optimisation

Invest where returns exceed 25%

Site optimisation to drive efficiencies and increase utilisation

Cost savings

Drive cash

Resolve HMRC

Drive growth in specialist defensible areas and support the current asset base with targeted forward investment

North Sea, particularly decommissioning

Support for Nuclear decommissioning

Contaminated construction and demolition soils

EfW residue growth — support

Invest in waste stream specific treatments to develop and enhance existing key assets

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H1 2019 Financial highlights1

Note 1 From continuing operations excluding landfill tax, exceptional items and share based payments

Adjusted revenue (excluding landfill tax) Adjusted PBT Adjusted EBITDA Adjusted EPS Net cash position of £22.8m – including £3.35m

proceeds received from the sale of East Kent

ROCE 1 2 3 4 5 6

+40%

increase H1 2019 vs H1 2018

31.6 44.2 H1 '18 H1 '19

44%

Annualised ROCE H1 2019

+100%

increase H1 2019 vs H1 2018

4.8 9.6 H1 '18 H1 '19

+71%

increase H1 2019 vs H1 2018

8.3 14.2 H1 '18 H1 '19

+114%

increase H1 2019 vs H1 2018

3.56 7.61 H1 '18 H1 '19

+178%

increase H1 2019 vs H1 2018

8.2 22.8 H1 '18 H1 '19

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64 67 80 2016A 2017A 2018A

Group financials

Strong track record of revenue growth Industry leading margins

Treatment and Disposal North Sea Services

Revenue (£m) FCF (£m)2

Margin (%)

5% 19%

Growth (%)

EBITDA (£m) 22% 24% 17% 39% 82% 34% Significant improvement in cash generation

Cash conversion (%)

1

Notes 1 Revenue for 2016A excludes revenue generated from AIS (£5.5m), Colt (£3.5m) and East Kent (£2.7m) which are excluded from the financials reported on the continuing basis for 2017A and 2018A 2 Free Cash Flow (FCF) defined as EBITDA less capex; cash conversion defined as FCF over EBITDA

13 15 19 2016A 2017A 2018A 4 6 15 2016A 2017A 2018A

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Long-term drivers of growth

Main market drivers  8mt of EfW capacity expected to be added in the next 5-6 years - resulting in c. 410ktpa of additional EfW ash/residue needed to be treated Strategy

Win significant share of new EfW APCr treatment/disposal contracts by maintaining most competitive pricing

Continue with track record of 90% win rate  HMRC taxing of soil on site, resulting in greater landfilling. Greater EA enforcement  Brownfield site redevelopment

Continue to capitalise on revamped sales and commercial team

Increase market share in London by establishing a river-sea-river route to transport London’s construction soils to Port Clarence

Expand site capability ➔ Decommission of UK nuclear estate expected to steadily continue over the next 40 years

Broaden service offering / technical capabilities to become a provider of full lifecycle of radioactive waste management

Port Clarence licence extension – NORM and sort and segregation increased offering ➔ Regulatory drive to dispose of waste through recycling and recovery vs. landfill

Increase capacity utilisation at current treatment facilities

Re-focus and increase HiPods operations Waste value streams

Growth driven by favourable market trends and well-defined business strategy

EfW residue Construction & industrial waste Radioactive waste services Treatment & recovery North Sea Services Growth  Rapidly increasing decommissioning market – £15-20bn spend estimated over the next 10 years of which up to c. £1bn (5% of total) is addressable by Augean

Establish Dundee as main port for decommissioning projects

Win majority of Plug & Abandonment projects by leveraging current market leading position in on-site waste support services

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64 67 80 2016A 2017A 2018A

Key investment highlights (1/2)

Full suite of hazardous waste treatment and disposal solutions

#1 provider of EfW ash treatment and disposal with exceptional win rates

Leader in hazardous construction and demolition wastes

Key provider of waste management solutions to the North Sea O&G sector

Only company to operate with a haz and non-haz low-level radioactive waste permit and a second low level radioactive waste licence in planning for Port Clarence

UK’s leading provider of hazardous waste management solutions UK-wide network of strategically located treatment and disposal facilities Attractive financial profile… … with analysts expecting strong revenue and profit growth to continue over the forecast period

2 hazardous landfills representing 40% of remaining void in the UK, with life through to 2050 and beyond

Share of void should further increase over the next 30 years – e.g. a further 2.9m3 of void located in Kings Cliffe

100% success rate on planning permissions for new planning and development

3 well-invested treatment and recovery facilities

4 North Sea sites strategically located for the decommissioning market

+11%

Revenue CAGR 2016-18

24%

EBITDA margin 2018

44%

Annualised ROCE H1 2019

>80%

Cash conversion 2018

Revenue (£m) EBITDA (£m)

13 15 19 '16A '17A '18A

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Key investment highlights (2/2)

Capitalising on river-sea-river route from London to Port Clarence

Potential upward pricing movement as hazardous void capacity decreases

Possible add-on services in radioactive waste

Various large government funded developing projects

Some specific large contract opportunities

Significant additional business and commercial opportunities Limited cyclicality due to business diversification across customers and end-markets

Diverse sources of wastes allows the business to be resilient to UK economic performance – EfW ash driven by general consumption – Construction and demolition strongly linked to government funded development projects – Radioactive waste consistently produced as part of long term plan for UK Nuclear estate decommissioning – North Sea decommissioning long term and a-cyclical trend

... resulting in limited downcycle from Brexit potential economic disruption

… supported by favourable long term markets trends and well defined strategy

Substantial pipeline of EfW facilities in-construction or planning, expected to add

  • c. 410ktpa of ash contracts, of which Augean will continue to win a significant share

Rapidly increasing North Sea decommissioning market

Increasing share of London’s construction and demolitions wastes by establishing a river-sea-river route to landfill facilities

Steady spending on UK Nuclear decommissioning

Good revenue visibility underpinned by predicable and re-

  • ccurring contracts

Revenue visibility supported by expected and foreseeable waste volumes (e.g. EfW residue)

Further visibility linked to a multitude of reoccurring short and medium term contracts underpinned by long term relationships with customers

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Update on HRMC

As at July 2019, the Group has received landfill tax assessments for its companies Augean North and Augean South for a total of £34.7m (£37.3m including interest)

In late July 2019, the Group received a final assessment of £3.1m (incl. interest) for Augean North

In early August 2019, the Group penalty notice of £4.6m for Augean South

The current total liability is c. £45m

All assessments have been appealed and no provision made

Hardship application granted for Augean North and South therefore no immediate requirement to deposit cash with HMRC

Lower Tier Tax Tribunal expected in 2020

If required, there is always a possibility to appeal

The business has taken specialist legal and tax advice over several years to ensure actions are consistent with the law and official guidance at the

  • time. Based on this advice, we remain confident in our position

£0.2m cash payment on legal fees in H1 2019

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Summary

Leader UK wide network of locations Successful turnaround strategy Highly attractive investment

  • pportunity

Strong performance Favourable market trends

✓ In attractive niche and highly regulated hazardous waste markets ✓ Two hazardous landfill locations accounting for 40% of current void and optionally to increase void ✓ Strategy successfully executed resulting in strong recent financial performance

✓ Strong revenue momentum, which analysts are expecting to continue going forward

✓ Growth supported by strong market trends and a targeted business strategy ✓ Multiple levers for value creation

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Appendix Treatment & Disposal (“T&D”) – Additional business description

A

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T&D sub-divisional overview

Description Locations Customer types Division Sub-division

Treatment & Disposal

EfW residue Construction & industrial waste (“C&I”) Radioactive waste services (“RWS”) Treatment & recovery (“T&R”)

Treatment and disposal of the by-products from EfW and biomass plants, such as Air Pollution Control Residue (“APCr”) and bottom ash

Main treatment stabilises dredgings with APCr and disposes of them in Port Clarence and ENRMF – most cost effective treatment and preferred route for cost conscious clients. Also offering disposal for hazardous bottom ash

Application for R-Code underway

Disposes and treats contaminated waste from construction / demolition activities and the by products of industrial process

Waste types treated are mainly asbestos, contaminated waste materials and contaminated soils

Offers a wider variety of treatment types vs. competitors including soil washing TPH and PAH treatment and bioremediation

Port Clarence ENRMF, Thornhaugh Avonmouth, Paisley, Port Clarence WaRP

Treats and disposes of low level radioactive waste and Naturally Occurring Radioactive Material (“NORM”)

Waste typically originates from the decommissioning of the UK Nuclear estate and the O&G industry

Main treatment centred on disposal to landfill and decontamination of materials (including plant and equipment jet washing)

Focused on the recovery and recycling of oil and solvents and the generation

  • f secondary liquid and solid fuels

Typically treats packaged / chemical / bulk liquid waste

Treatment types includes solvent plants to split waste liquid waste, oil and water treatment, chemical treatment and bio treatment to provide a road to recovery or for efficient disposal

Also provides specialist industrial cleaning services

Wide range of hazardous waste management solutions – from disposal of hazardous radioactive waste to recovery of solvents

EfW facilities

  • perators

Biomass facilities

  • perators

Construction, Demolition and enabling contractors

Specialist contaminated land contractors

The LLWR

Irradiation reactors, radio and pharma

O&G, mineral processing and mining

Oil and chemical refineries

Port operators

Industrial plants

Waste management providers

  • A. Treatment & Disposal (“T&D”) – Additional business description
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Avonmouth Paisley Port Clarence PC Waste Recovery Park Thornhaugh East Northants RMF

T&D map of locations

Hazardous and non-hazardous landfills Paisley

One of the largest plants in Scotland primarily serving the O&G industry

Treatment, recovery and transport facilities for oils and solvents and packaged and organic waste

Capacity of c.80kte p.a.

East Northants RMF (“ENRMF”)

Treatment and disposal facility for hazardous and non hazardous waste

Majority of waste from EfW residue with asbestos, construction soils and filter cake as main wastes types also accepted

Permitted to treat using a variety of processes e.g. stabilisation / de-hydration and bioremediation including soil washing capabilities

Thornhaugh

Non-hazardous disposal facility

Planning permissions until 2034

Includes Cook Hole landfill void – in development

Port Clarence Waste Recovery Park (“PCWRP”)

Waste Treatment and Recovery plant with a wide permit to accept varied waste types

Sort and segregation capabilities to process Nuclear waste

Planning permissions until 2024 with potential expansion for four new buildings

Current capacity for 26kte p.a.

Avonmouth

Waste Treatment and Recovery Operations since 2005/06

Wide permit accepting most waste types (organic / oils / solvents) and with discharge capabilities

Port Clarence (“PC”)

Planning permissions extended to 2026 – 1m m3 of void space –

  • c. 150kt of waste accepted p.a.

Option extension to mid 2040+

UK-wide network of strategically located hazardous landfills and treatment facilities

Treatment and recovery facilities

  • A. Treatment & Disposal (“T&D”) – Additional business description

Strategically located to accept construction waste from the North East and in close proximity to estuaries to accept dredgings for APCr treatment

Opened ended planning permissions for both Landfill and WRP for a period in excess of 50 years – 5.6m m3 of hazardous void space → 33+ years remaining lifespan –

  • c. 90kt of waste p.a. with 100+ vehicles accepted daily

Treatment and disposal facility for hazardous and non hazardous waste

Largest hazardous landfill in the UK with long term and well established contracts

Waste types accepted include APCr, river dredgings, filter cakes, asbestos contaminated materials and drilling muds

Majority of input from contaminated soils

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Hazardous landfills

UK hazardous landfill capacity by site Commentary

Unlike non-hazardous landfills, demand for hazardous landfills is expected to stay constant as it is the only possible disposal option for a majority of hazardous waste types

The majority of hazardous waste going to landfill is therefore expected to remain broadly stable given lack of alternative disposal methods

The UK government will not grant permits for new hazardous landfills - it will only grant timing and capacity extension (to adjacent land) to currently permitted sites

Capacity extensions are limited by the nature of the land surrounding the landfill – i.e. unlikely to be granted extensions in populous areas

Augean currently holds 40% of hazardous landfill void in the UK, through its Port Clarence and ENRMF facilities establishing it as a key player in the haz waste disposal market

Unlike most other landfill operators, Augean has a freehold on their landfill sites vs leasehold

Furthermore, Port Clarence and ENRMF have the potential to increase their void

Augean holds 40% of the remaining hazardous landfill void in the UK, with life through 2050 and beyond

Operator Planning expiry Name

Port Clarence ICI No 3 Teesport White moss Bradley Park Wins- ford Wing- moor Farm ENRMF Winterton South Folly Farm Parkgate Pinden Polmont Shotley Holdings n/a 2035 2028 n/a 2030 2025+ 2026 n/a 2023 2042 2022 2050

Comments

Not

  • peratio
  • nal
  • c. 4 / 5

years expected life End of life / change of use Veolia lease expires in 3 years Asbestos

  • nly

Asbestos

  • nly

+2.9m3 from additional adjacent land

  • ptioned

mt hazardous landfill void

Augean currently holds 40% of hazardous landfill void in the UK

  • A. Treatment & Disposal (“T&D”) – Additional business description

Source: Tolvik

5.1 2.0 1.8 1.8 1.5 1.1 0.9 0.9 0.6 0.4 0.2 0.1

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Growth in EfW capacity and resulting ash

UK capacity gap driving increase in UK EfW… … resulting in steep increase in EfW residue

  • 100

200 300 400 500 600 700 800 900 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Residual Waste EfW Woody Biomass ⚫

EfW capacity has consistently grown since 2008, when landfill tax made EfW incineration a more economical disposal route compared to landfill

Today there is still a significant capacity gap in the UK, which is currently landfilled for lack of better options

The significant capacity gap is driving the expected build up of EfW facilities in the UK – capacity is excepted to grow from 11.6mt in 2018 to 19.2mt in 2024

Additionally, the tax in Europe on RDF imports is driving further demand for EfW capacity in the UK

The forecasted increase of EfW capacity will result in significant increase in EfW residue (APCr and bottom ash) – Total APCr generated by both EfW, biomass and hazardous/clinical incinerators facilities is expected to grow by c. 85%, from c. 510kt in 2018 to c. 770kt in 2024

Average yearly APCr growth from 2014 to 2018 was 13.1%

On average, for each tonne of waste incinerated 3.5% of APCr is generated

EfW MBT Diversion / Co-Incineration RDF Exports Capacity cap Residual Waste

+8 mt

EfW capacity

The UK capacity gap is driving the build up of EfW facilities (+8 mt capacity expected), resulting in a significant increase in EfW residue needing to be treated

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Residual Waste EfW Woody Biomass Other Biomass Hazardous / Clinical Waste Source: Tolvik Source: Tolvik

  • 5mt

10mt 15mt 20mt 25mt 30mt 35mt 40mt '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26

  • A. Treatment & Disposal (“T&D”) – Additional business description
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211 ktpa 60 ktpa 38 ktpa 103 ktpa

  • 50kt

100kt 150kt 200kt 250kt Planning Commissioning On Hold In Build

Large pipeline on potential new contracts… … supporting significant growth in volumes treated by Augean

410 ktpa

  • f APCr, IBA and Fly Ash

from

37 EfW / biomass

plants

in planning/commissioning

  • r construction

Large pipeline supporting topline growth

>35 EfW / biomass plants in construction or planning, which are expected to add c. 410ktpa of EfW residue in the market, of which Augean is expected to win a significant share, in line with historical win rates

Large pipeline of contracts for treatment and disposal of APCr and bottom ash, as result of 37 EfW / biomass facilities either in planning/commissioning or already under construction

EfW residue treated and disposed by Augean - historical and forecast (ktpa)

  • A. Treatment & Disposal (“T&D”) – Additional business description

~150 ~190 ~210

  • 100kt

200kt 300kt 2017 2018 2019 APCr Bottom ash

Volumes of APCr and bottom ash treated and disposed by Augean

Source: Tolvik

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Appendix North Sea Services (“NSS”) – Additional business description

B

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13 18 22 '16A '17A '18A

Exceptional track record of topline and profit growth, expected by analysts to continue in the forecast period

Key investment highlights for Augean NSS

Full spectrum of waste and industrial services solution to O&G

  • perators in North Sea – from drill cutting management to

decontamination for infrastructure decommissioning

Leading positions across all divisions and main services lines

Strategically located facilities covering the entire UK North Sea region

£15-20bn estimated total decommissioning spend in the North Sea

  • ver the next 10 years…

… of which up to c. £1bn (5% of total) is addressable by Augean

Augean is uniquely positioned in the Port of Dundee… ✓ Only operator with NORM-permitted facilities in Dundee ✓ Founding member of the Forth and Tay Decommission alliance

… which is quickly establishing itself as main decommissioning hub in the UK

With active presence in both Aberdeen and Lerwick

Experienced management team with a proven track record

Leading provider of waste and industrial services solutions to the North Sea O&G sector Current and future growth underpinned by large and rapidly accelerating decommissioning market… … of which Augean is expected to win a substantial share Led by an experienced management team, highly regarded in the industry

Revenue (£m)

  • B. North Sea Services (“NSS”) – Additional business description
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Leading provider of waste and industrial services solutions to the North Sea O&G sector, with strong track record of revenue and profit growth

Augean North Sea Services

Overview

Formed in 2012 as 70% / 30% JV between Augean and Scomi Oiltools – now 100% owned by Augean

Specialised waste management solutions provider for the containment, treatment and associated industrial cleaning of waste generated by the North Sea O&G industry

Services include: 1) full waste services solutions for both well drilling and abandonment, 2) industrial cleaning and decontamination for vessels and decommissioning projects, 3) general waste management services for

  • perating rigs and platforms

Strong track record of revenue and profit growth – £22m revenue, 9.5% EBIT margin for FY18

Analysts expect significant growth to continue on the back of the North Sea decommissioning sector

Operates out of strategically located facilities in Aberdeen, Lerwick, Great Yarmouth and the Port of Dundee

Clear strategic benefits of being part of Augean Group as it can leverage its disposal sites (e.g. Port Clarence)

Leading position in all key markets – key competitors include ASCO, Taylor Industrial Services, Bilfinger, Veolia and Scotoil Services

Led by industry veteran Simon Gibb employing c. 120 people Overview of NSS locations

34 rigs

worked on

>570

wells contained

>150

pit cleaning projects

200k ft

contaminated tubulars processed

12+

years LTI free at rig sites

>4m barrels

  • f wellbore wastes re-

injected Great Yarmouth Lerwick Aberdeen Dundee

  • B. North Sea Services (“NSS”) – Additional business description
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Three divisions offering the full spectrum of waste and industrial services to O&G operators in North Sea – from drill cuttings management to decontamination for infrastructure decommissioning

Divisional overview

Specialised waste management solutions for waste generated from the drilling and abandonment of wells

Services include: provision of engineers and equipment for the monitoring and handling of waste, as well as solutions for the collection, disposal and transport of well waste

Large fleet of custom built skips, conveyors, cuttings pumps and vacuum collection machines for rental

Plug & Abandonment service offering including tubular extraction monitoring and NORM contamination verification

Mainly operating out of Aberdeen facility with c. 40 employees

Industrial cleaning and decontamination services for decommissioning projects or active operating vessels and terminals

Services include 1) high-pressure jet cleaning

  • f vessels (incl. PSVs), infrastructures and

terminals, 2) processing and discharge of vessel waste, 3) NORM decontamination and 4) full services for on/offshore Shutdowns & TARs

Increasingly focused on decommissioning projects by providing cleaning of topsides vessels, tubulars (valves and well heads), deep tank cleans and scrap material cleaning

Operating out of Dundee, Scotland’s main decommissioning hub

Employs c. 150 people (incl. contractors)

General waste management services provided to O&G rigs and platforms

Offering includes collection, transportation, treatment and disposal of O&G waste

Waste collected from the rig / platform is transported to a transfer & treatment facility located in one of ANSS various locations for treatment or disposal and recycling

Further services include treatment and decontamination of waste for discharge

Transfer & treatment facilities in all of Augean’s NSS locations, but Great Yarmouth and Aberdeen are the main WS facilities

Divisions / services overview Key highlights

✓ Engineers in 7 out of 23 operating drilling rigs

in the North Sea

✓ Refocusing division towards faster growing

Plug & Abandonment projects

✓ Only operator in Dundee providing full

decontamination and cleaning services for decommissioning projects

✓ Leader in both decontamination and vessel

cleaning

✓ Provider of one-stop-shop waste management

solutions for rigs and platforms – including all types of waste

✓ National and integrated offering across the UK

Drilling, Plug & Abandonment Waste Management (“DWM and P&A”) Waste Services (“WS”) Industrial Services (“IS”)

  • B. North Sea Services (“NSS”) – Additional business description
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From drilling to decommissioning

… by offering

Augean NSS was formed in 2012 to provide waste management of drill cuttings

It was able to quickly win a leading market share, by providing very competitive pricing for the management of drill cuttings

Over the last 7 years, management has successfully implemented its strategy of expanding its service offering and enter new niche markets

Examples on new services introduced: – Marine Services in 2013 – Industrial Services in 2014 – NORM decontamination in 2015 – Decommissioning services in 2016

Augean NSS is now focusing its efforts and resources on the growing and sizable decommissioning market Diversifying away waste from drilling … … and refocusing on decommissioning…

Market share of drill cutting management / disposal ⚫

Significant number of structures and wells to be decommissioned in the North Sea

… amounting to a c. £15-20bn estimated total spend over the next 10 years

Of which up to c. 5% is addressable by Augean NSS

Full cleaning and decontamination services for decommissioning vessels, pipelines and subsea infrastructure – Tank and vessel cleaning – High-jet cleaning – Tubular cleaning and decontamination – Scrap metal for NORM decontamination – FSPO decommissioning

Specialised industrial cleaning and NORM decontamination

Monitoring and NORM decontamination services for P&A

Multi skilled personnel to reduce down-time and increase P&A project efficiencies

National coverage with network of sites located in main decommissioning hubs (Dundee) and across the country (Great Yarmouth)

£15-20bn spend over next 10 years

Source O&G UK, OGA

  • £0.5bn

£1.0bn £1.5bn £2.0bn 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Diversifying away from a potentially slowing drilling market to focus on the faster growing decommissioning and well abandonment sector, expected to represent £15-20bn of spend in the next 10 years

Installations 79 5,618 km Pipelines 1,224 Wells 9,495 Mattresses 82.5 t Subsea infra. 16 FPSOs

  • B. North Sea Services (“NSS”) – Additional business description
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Dundee – The UK’s main decommission hub

The port of Dundee is strategically located for decommissioning projects - key advantages include – Natural deep water berth allowing for large vessels to dock and remain stationary

Other main ports in Scotland are less likely to play a major role given the scale of their commercial activities (similar for Aberdeen)

Scottish government has ruled that all publicly-funded decommissioning

  • perations will have to be done within

Scotland Dundee is a key hub for decommissioning… … in which Augean NSS plays a key role… … allowing to win major projects

The alliance was created with the goal of positioning Dundee as the UK hub for North Sea decommissioning work

The members of the alliance intend to jointly provide an integrated, end-to-end O&G decommissioning service

Being a member allows Augean NSS to be the preferred supplier of cleaning and decontamination services for decommissioning projects taking place in Dundee

Augean NSS is also the only provider in Dundee with PPC and RSA permitted facilities for NORM-related services and reception / cleaning of contaminated equipment

Augean NSS is a founding member of the Forth and Tay decommissioning alliance in Dundee Shell Curlew Contract

In 2019, Shell awarded Augean with the cleaning and decontamination of the Curlew Floating Production Storage and Offloading Vessel (FPSO)

After the clean up the ship will be taken to Turkey for final dismantling and recycling

Scope: cleaning of 30 meter deep oil and slops tanks as well as cleaning of topsides vessels, flare stack, turret and > 5,000m process pipework – includes treatment and disposal of c. 400te NORM

All processes done in collaboration with others in the alliance – Forth Ports (quayside services) – OilMac (lifting services) – John Lawrie / Robertson’s Recycling

Contract originally under-scoped, resulting in increased work required – e.g. 30t vs. 400t of sludge waste to be cleaned

Contract extension with expanded scope of work could generate additional revenues of up £9m

Strongly positioned to win the significant share of the decommissioning projects, by leveraging unique position in Dundee, which is quickly establishing itself as the UK’s main decommissioning hub

  • B. North Sea Services (“NSS”) – Additional business description