CONFERENCE CALL HY 2018 23 AUGUST 2018
DISCLAIMER This company presentation and the information contained are, unless noted separately, proprietary to Schoeller- Bleckmann Oilfield Equipment AG (SBO) and not meant to be reproduced or distributed to third parties. The information contained describes in a general manner the corporate strategy and recent development of SBO and provides some industry background. They do not replace sound and independent judgement on the quality of the business of SBO and the valuation of its securities. In particular, they may not be misinterpreted as a prospectus, recommendation, invitation or offer to subscribe for, buy or sell securities in SBO. Although it is the goal of SBO to keep the information contained complete and accurate and to correct errors brought to its attention within reasonable time, SBO expressly disclaims any obligation to keep or make the information contained comprehensive, complete, accurate and up-to-date and does not publicly release updates on this company presentation. SBO does not provide earnings guidance. Nevertheless, this company presentation contains forward-looking statements. Those involve known and unknown risks, uncertainties and other factors which may cause the actual outcome, performance or achievements, both with respect to SBO and the industry, to be materially different. Readers are cautioned not to place undue reliance on the information contained in this company presentation including forward-looking statements or discussed verbally based thereon. SBO, and the persons acting on its behalf, do not accept any liability whatsoever arising from the use of this company presentation or its content or otherwise arising in connection therewith. 2
SBO GROUP SCHOELLER-BLECKMANN OILFIELD EQUIPMENT AG Advanced Manufacturing & Services 38 % of HY 2018 sales Oilfield Equipment 62 % of HY 2018 sales Schoeller-Bleckmann Oilfield Technology GmbH Ternitz, Austria Knust-Godwin LLC Houston, USA Knust-SBD Pte. Ltd. Singapore Techman Engineering Ltd. Chesterfield, UK Schoeller-Bleckmann de Mexico, S.A. de C.V. Monterrey, Mexico Schoeller-Bleckmann Oilfield Equipment Vietnam Co. Ltd. Binh Duong, Vietnam Schoeller-Bleckmann Darron (Aberdeen) Ltd. Aberdeen, UK Schoeller-Bleckmann Darron Ltd. Noyabrsk, Russia Schoeller-Bleckmann Energy Services L.L.C. Broussard, USA Schoeller-Bleckmann Oilfield Equipment Middle East FZE Dubai, UAE Schoeller-Bleckmann Sales Co. L.L.C. Houston, USA BICO Drilling Tools Inc. Houston, USA BICO FASTER Drilling Tools Inc. Nisku, Canada DSI FZE Dubai, UAE DSI PBL de Mexico, S.A. de C.V. Villahermosa, Mexico Schoeller Bleckmann do Brasil, Ltda. Macae, Brazil Schoeller Bleckmann Saudi LLC Al Khobar, KSA Resource Well Completion Technologies Inc. Calgary, Canada Resource Well Completion Technologies Corp. OKC, USA Downhole Technology LLC Houston, USA 3
MARKET DEVELOPMENT PROMOTES OPTIMISM HIGHLIGHTS HY 2018 SBO s sustainable growth strategy and ongoing R&Dactivities prepared SBO to use the full momentum offered by the upswing North America remained robust and international markets continued path to recovery Strong growth in bookings of 63 % compared to last year s figure and an EBITDA-margin of 28 % reflect the optimism seen in the oilfield service-industry 4
STRONG BOOKINGS GROWTH HIGHLIGHTS HY 2018 in MEUR Sales Bookings 136 150 200 244 HY 2018 HY 2017 EBITDA-margin (%) EBIT Profit before tax Profit after tax -8-4 -6 28 % 16 % 13 19 32 Headcount 2017 1,432 2018 1,612 Operating Cashflow 9 6 5
HEADCOUNT INCREASING HIGHLIGHTS HY 2018 +12.6 % 243 222 137 157 764 885 309 327 End of FY 2017 End of HY 2018 6
OIL AND GAS MARKET DEVELOPMENT E&P Spending in BUSD / % Rig Count 1,405 2,266 212 655 223 432-21% -34% -15% +10% -33% +8% -25% -6% +8% +47% +14% -53% 42 408 955 1,057 997 2014 2015 2016 2017 2018E Global North America International May 2016 International USA Canada August 2018 Global spending for exploration and production (E&P spending) up by another 10 % globally, following a plus of 8 % driven by the growth in North America in the previous year Recovery in international upstream capex has begun, with an E&P spending increase of 8 % for the first time since the crisis had come to end North American Rig Count continues its path of growth International Rig Count shows first signs of revival both onshore and offshore Source: Evercore ISI Research, July 2018; Baker Hughes Rig Count 8
OIL SUPPLY AND DEMAND Short term: Supply / demand balance in mb/d Demand Forecast based on OPEC production limit of 32.5 mb/d Supply Longer term: mind the supply gap 96.5 96.4 96.9 95.3 97.8 97.4 99.2 99.4 100.7 101.3 2015 2016 2017 2018E 2019E Healthy growth in oil demand expected over the coming years OPEC decided to reduce its production to a ceiling of 32.5 mb/d, effective from 1 January 2017 and confirmed until year-end 2018 Aim of OPEC to bring recent subdued level of production back to agreed upon production ceiling formally confirmed at its meeting in June 2018 Most forecasts point to continued growth in oil demand through year 2040 Global market shares the opinion that new projects will need to be ready to keep the market from tightening abruptly Increase in US tight oil projects will not be sufficient to keep global production in balance with oil demand in the long run Source: IEA Oil Market Report, August 2018; IEA World Energy Outlook 2017; HSBC Global Research, February 2017 9
SALES DEVELOPMENT in MEUR 512 459 489 389 409 317 308 314 324 217 179 134 152 173 240 252 183 136 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018 11
BOOKINGS in MEUR 461 471 426 498 349 341 367 359 342 269 244 195 181 124 161 111 204 169 150 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018 12
EBITDA-MARGIN in % 24.8 23.3 21.6 21.3 21.2 25.5 29.3 29.4 24.4 27.6 30.6 31.4 29.5 30.6 Ø 24.1 2001-2017 23.0 27.9 16.9 16.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018-1.4 13
EBIT in MEUR 121.2 76.1 88.0 90.2 90.2 67.5 36.6 26.1 13.1 17.9 25.5 48.2 28.2 49.4 25.6-3.6 32.1-22.1-58.3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018 14
PROFIT BEFORE TAX in MEUR 111.0 72.5 82.4 78.2 83.9 80.0 33.2 19.8 9.4 15.5 24.3 46.8 23.5 42.9-20.0-8.0 18.8-45.1-69.8 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* HY 2018 * Including non cash-effective expense from revaluation of option commitments of MEUR 88 15
PROFIT AFTER TAX in MEUR 76.9 50.0 58.8 53.4 61.3 54.0 23.1 12.5 6.1 10.8 17.4 34.4 15.3 27.3-19.0-28.0-6.2 13.2-54.4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* HY 2018 EPS 2.15 3.13 3.69 0.96 1.71 3.33 4.80 3.81 3.38-1.19-1.75-3.41 0.83 Dividend 0.80 1.10 0.75 0.50 1.00 1.20 1.50 1.50 1.50 0.50 0.00 0.50 * Including non cash-effective expense from revaluation of option commitments of MEUR 69 (after tax) 16
OPERATING CASHFLOW in MEUR 103 109 103 89 65 68 60 68 45 33 29 22 28 25 34 31 11 6 9 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018 17
BALANCE SHEET in MEUR, as of 30 June 2018 Liquid funds: 279 30% 32% Current liabilities: 297 Other current assets: 246 27% 31% Non-current liabilities: 283 Property, plant & equipment: 146 16% Other non-current assets: 243 Thereof Goodwill: 159 27% 37% Equity: 334 Assets Liabilities MEUR 914 Net indebtedness: MEUR 71.4 Gearing ratio: 21.4 % 18
RECOVERY IN PROGRESS North America will remain the main driver throughout the year 2018 Clear indications of recovery noted in international markets: It is common understanding that the international market will pick up further in year 2019 20
SBO LOOKS POSITIVELY INTO THE FUTURE SBO HAS PREPARED THOROUGHLY FOR THE UPSWING A good market environment and the possibility to selectively raise prices will be reflected in the development of SBO down the road: Decent bookings growth and a sound market environment let SBO expect a continuous recovery in international markets going forward Further expansion of capactiy at SBO s production facility in Vietnam under evaluation given the high utilization rates experienced today already With its innovative products and international presence, the group is well prepared for new opportunities and markets 21
CONFERENCE CALL HY 2018 23 AUGUST 2018