M agseis ASA
Q2 2018
16th August 2018
Expanding operational footprint
M agseis ASA Q2 2018 16 th August 2018 Expanding operational - - PowerPoint PPT Presentation
M agseis ASA Q2 2018 16 th August 2018 Expanding operational footprint Disclaimer This presentation (the Presentation ") has been prepared by M agseis ASA (the The Company makes no representation or warranty, expressed or implied, as to
M agseis ASA
Q2 2018
16th August 2018
Expanding operational footprint
This presentation (the “ Presentation") has been prepared by M agseis ASA (the “ Company” or “ M agseis” ). The Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Company and/or industry and markets in which it
Forward-looking statements concern future circumstances and results and
statements that are not historical facts, sometimes identified by the words “aims”, “anticipates”, “believes”, “estimates”, “expects”, “foresees”, “ intends”, “plans”, “ predicts”, “projects”, “targets”, and similar
Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely
and forecasts based
the current expectations, estimates and projections of the Company or assumptions based on information currently available to the Company, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. The Company makes no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither the Company nor any of its directors, officers or employees shall be liable to you or to any other party for any losses incurred as a result of your or their use of, or reliance on, any information contained in the Presentation. This Presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities, and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. The information in this Presentation is subject to verification, completion and change. The contents of this Presentation have not been independently verified. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “ US Securities Act” ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S under the US Securities
The Presentation speaks and reflects prevailing conditions and views as of the date of this presentation. It may be subject to corrections and change at any time without notice except as required by law. The delivery of this Presentation or any further discussions of the Company with any recipient shall not, under any circumstances, create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs
Disclaimer
Source: M agseisAGENDA
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Financials M arket development and operations Summary Introduction
Highlights Q2 2018
Financial Performance Operational Performance Focus on more efficient and cost effective solutions Further growth, backlog and outlook
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Develop and operate proprietary technology to be applied in seismic acquisition operations Headquarter in Oslo, Norway with
Houston 168 employees of which ~45%
Geophysical company founded in 2009 with first operation in 2013 OSE:M SEIS M CAP USD~170 million Transferred to main list in JUN 18
Corporate snapshot
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Source: M agseis$
AGENDA
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Introduction M arket development and operations Summary Financials
Q2 2018 results - Comprehensive income
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Source: M agseisIn USD thousands
Q2 2018 (unaudited)%
Q2 2017 (unaudited)%
YTD 2018%
FY 2017 (audited%
Revenue 19 718 19 399 44 283 73 877 Cost of sales 10 114 8 659 19 805 35 701 Research and development 670 514 1 231 2 002 SG&A and other expenses 3 741 1 828 7 683 10 039 EBITDA 5 193 26.3 8 398 43.3 15 563 35.1 26 136 35.4 Depreciation & Amortisation 4 196 3 688 7 948 15 611 Impairment 233 EBIT 997 5.1 4 710 24.3 7 616 17.2 10 292 13.9 Net interest and fx (gain)/ loss 1 311 560 1 502 397 Other finance cost Net finance costs 1 311 560 1 502 397 EBT
4 151 6 114 9 895 Tax 227 838 987 3 199 Net income
3 313 17.1 5 127 11.6 6 696 9.1 Currency translation differences Total comprehensive income
3 313 5 127 6 696
USD in Q218
previous survey
Second quarter 2018 results - Balance sheet
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Source: M agseisInnovation Norway of USD 7.0m @ 4.15% interest (split non-current USD 5.1m and USD 1.9m current)
liability)
new nodes and working capital In USD thousands
YTD 2018 (unaudited) YTD 2017 (audited) YE 2017Equipment and other intangibles
94 450 59 930 74 416
M ulti-client library Cash and cash equivalents
36 168 33 657 29 776
Trade receivables
24 890 21 404 9 137
Stock (fuel and batteries)
2 616 1 318 1 752
Other current assets
5 105 4 714 8 469
TOTAL ASSETS163 229 121 023 123 549
Share capital
545 438 438
Share premium
178 508 141 506 141 486
Retained earnings and other reserves
137 225 95 069 95 040
Obligation under finance lease
447
Other non-current financial liabilities
12 447 13 675 13 049
TOTAL NON-CURRENT LIABILITIES12 447 14 122 13 049
Trade payables
5 900 4 045 6 010
Current tax liability
765 1 489 1 111
Other current liabilities
6 892 6 298 8 338
TOTAL CURRENT LIABILITIES13 557 11 832 15 460
TOTAL LIABILITIES26 003 25 955 28 509
TOTAL EQUITY AND LIABILITIES163 229 121 023 123 549
Second quarter 2018 results - Cash flow
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Source: M agseistrade receivables end June paid in July
according to growth plan
CAPEX program for 10 000 new nodes
Earnings before tax
4 151 6 114 9 895 Depreciation & Amortization 3 493 2 044 7 012 12 555 Net working capital adjustments 64
1 708 Net cash flow from operating activities 3 244
24 157 Net cash flow from investing activities
Net cash flow from financing activities
35 240 31 201 Net change in cash and cash equivalents
6 392 10 801 Cash balance at the beginning of the period 44 597 54 195 29 776 18 974 Cash balance at period end 36 168 33 657 36 168 29 776 In USD thousands
Q2 2018 (unaudited) Q2 2017 (unaudited) YTD 2018 FY 2017 (audited)Transfer to Oslo Børs
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Source: M agseisOn 1st J une 2018, M agseis ASA transferred its listing of shares to Oslo Børs (Oslo Stock Exchange). This will bolster the company’s exposure to capital markets and investors globally
KEY F Y FIGURES Q2
Q2 2018
Source: M agseisREVENUE
EBITDA
NET PROFIT
CASH BALANCE
$ MILLION $ MILLION $ MILLION $ MILLION $ MILLION
8.4
EBITDA
Q2 2017
19.4
REVENUE
Q2 2017
5.2
EBITDA
Q2 2018
REVENUE
Q2 2018
19.7
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AGENDA
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Financials Introduction Summary M arket development and operations
Athene and our M ASS M odular operations continue to impress with more than 99,7% technical uptime during Q218
the North Sea, again proving the versatility of our M ASS M odular system
preparation for three parallel operations in Q318
preparation for operation of M ASS nodes in addition to the nodes already in operation in the Red Sea
Q2 2018 – Preparing for increased activity
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Three parallel operations
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ATHENE Crew 1 M ASS M odular Crew 3 M ASS M odular Crew 2
Source: M agseisM arine Autonomous Seismic System
M agseis takes the next step in node development
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Up to 65 days battery lifetime Up to 150 days battery lifetime 40% reduction in cost from M ASS I
Extended battery life will transform the node
M ASS I
NEW
M ASS III
14 000 M ASS I 6 000 M ASS I Current inventory Growth 14 000 M ASS I 10 000 M ASS III
Source: M agseisStrong M arket Outlook – Undersupply in 2019
16 120 000 100 000 80 000 60 000 40 000 20 000 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Node supply vs expected demand
Source: M agseisGrowth strategy
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Business model Key goal By 2020
market, efficiencies &
nodes, handling systems and source
systems – cable, ROV and & rope
nodes
and deployment systems
technology
Developing M agseis into the OBS market leader
Source: M agseisAGENDA
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Financials M arket development and operations Introduction Summary
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Improving cost efficiency Shortage of supply in 2019 Sufficient funding for node growth plan
Expanding operational footprint