Magseis Fairfield
Global Scale & Reach
12th December 2018
Magseis Fairfield Global Scale & Reach 12 th December 2018 - - PowerPoint PPT Presentation
Magseis Fairfield Global Scale & Reach 12 th December 2018 Disclaimer This presentation (the Presentation ") has been prepared by Magseis ASA (the The Company makes no representation or warranty, expressed or implied, as to the
12th December 2018
This presentation (the “Presentation") has been prepared by Magseis ASA (the “Company” or “Magseis”). 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 other 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 opinions and forecasts based on 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
Source: Magseis
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Coupling indu ndustry leadi ding n node des w with a h automa mated d handl ndling ng s systems, flexible depl ployment s systems and n nd next g gene neration n sour urce t techn hnologies crea eating t the n e new ew f future i e in m marine s e seismic A glo lobal, a asset l light a and d diversif ifie ied b business m model p l posit itioned f for g growth
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Transaction summary
announced on November 7
shareholders and new high-quality institutions
December 7
Private placement and share performance since acquisition(1)
(1) Source: FactSet as of December 10, 2018. Seismic peers include PGS, TGS, CGG, Polarcus and Spectrum (2) For illustrative purposes. Assumes share price of NOK 16.95 (same as last close before private placement and offering price)
Magseis
Seismic peers
OSE Benchmark
While e expanding t the shareholder base i internatio ionally lly
Allocation i in private p place cement
25% 8% 2% 59% 1% 5% Norway Finland United Kingdom United States Sweden Other
Mo More t than doublin ing o g our m market capit italiz izatio ion(2
(2)
Ma Market c capit italiz lizatio ion ( (NOK OKbn) )
3.1 1.3 1.3 0.6 Pre-PP PP Combined FF shares
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History and key milestones
2009 2009
Founded by Ivar Gimse and Jan Gateman
2011 2011
Successful test of first of first MASS-system prototype
2018 2018
Magseis signs a MoU with Schlumberger for joint OBS services
2018 2018
Acquisition of Fairfield’s Seismic Technologies Business
2018 2018
Awarded contract for sale of 17,000 nodes to BGP Offshore
2013 2013
Awarded its first OBS acquisition contract with Equinor
2018 2018
Launched third generation MASS node technology
2017 2017
Per Christian Grytnes appointed as new CEO
2014 2014
Public listing of shares on Oslo Axess
2016 2016
Awarded contract with Saudi Aramco on the S78 project in the Red Sea
2014 2014 - 2016 2016
Performed surveys in the North Sea and Far East
2017 2017
Entered into a R&D contract to develop a new multi source shooting technology
Source: Magseis
A global, asset light and diversified business model positioned for growth
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Leading edge technology Truly global reach with a diverse customer base Asset light business model and flexible cost structure Balance sheet capacity Diversified revenue model
Source: Magseis
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Data quality
1960s ~1990 2005-10 Today
Exploration Field Development and IOR
Narrow Azimuth Multi Azimuth Wide Azimuth
Full Azimuth
3D streamer OBS OBS industry drivers
IOR f focus Comple plex g geolo logy Techno nolo logy gy dev evel elopmen ent Customer er c confiden ence e and a adoption
Source: Magseis
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$100Kper km2
Large spreads - rolling operations
$25Kper km2
Small spreads - multiple patches
Streamer seismic cost When we we starte ted The he poten ential To Today Levels where OBS will be widely used for production monitoring, field development and exploration
Source: Magseis
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BUSINESS MODEL KEY GOALS BY 2020
market, efficiencies &
business model
ROV
reservoir monitoring
and deployment systems
technology
Source: Magseis
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Data a acquis isit itio ion Technol
sales Mu Mult lti-clien ent proje ject cts Semi mi-perman anen ent reservoir ir monit itorin ing
Source: Magseis
Magseis Fairfield historical operations
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Global footprint through local presence enables enhanced node utilisation Utilisation target illustration
New operational divisions Combined customer relationships Modular crews Acquisition vs. technology dynamic
Source: Magseis
SURVEY SURVEY SURVEY SURVEY SURVEY
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multi-client business development
in existing portfolio
MC seismic companies are showing high interest in the benefits of nodal seismic data
multi-client
Current multi-client seismic hotspots
Source: Magseis
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reservoir monitoring systems
retrievable node system for repeat surveys
survey designs
drastically optimise costs
several parties in the respective regions
Offshore region Field 1 Field 2 Field 3 Field 4 Field 5
Source: Magseis
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manage two to three parallel operations mainly with ZXPLR nodes
and manage two to three parallel operations with ZXPLR and MASS nodes
sell and rent acquisition systems
multi-client and 4D production monitoring businesses
Eastern Hemisphere Operations Western Hemisphere Operations Technology
Source: Magseis
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UNIFIED TECHNOLOGY STACK
Shift from two separate technologies to a single technology strategy and roadmap
THE BEST FROM TWO NODE TECHNOLOGIES
In the short-term Magseis Fairfield will leverage both technologies in
EFFICENT OBS SYSTEMS
Cost efficient nodes Fully automated handling and deployment systems Source technology Logistics and scale
TWO PRODUCT FAMILIES
Industrialize two product families – one for our own acquisition and one for the lease and sales market
STRATEGY DEVELOPMENT
Business development in multi-client and 4D production monitoring
Source: Magseis Source: Magseis
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Combined backlog ensures significant coverage in 2019
175 330 500 155 170 Combined 2019 backlog Magseis 2019 backlog Fairfield 2019 backlog 2019 revenue guidance 2019 "gap to close"
Solid historical EBITDA margins(1)
35.4% 24.9% 27.0% 22.0% Q3 2018 YTD 2017 Magseis Fairfield
2019 revenue guidance: USD 500 million Preliminary 2019 maintenance and R&D capex guidance: USD 15 million Preliminary 2019 growth capex guidance: USD 50 million
Positive industry trends
(USDm)
(1) Fairfield figures exclude impact of Libra contract Source: Magseis
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The technology leader in the new generation of marine seismic