Fearnley Securities Annual Renewables & Clean tech Conference November 29, 2023
Jan Erik Tveteraas, CEO Soiltech AS Tove Vestlie, CFO Soiltech AS
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Today’s presenters
• 35+ years of experience from the oil & gas industry
Jan Erik Tveteraas Chief Executive Officer
• Co-founder at Soiltech AS • Former CEO and co-founder at Sevan Marine ASA and Sevan Drilling ASA • Former CFO at NAVIS ASA and Transocean Drilling • MBA from NHH
Tove Vestlie Chief Financial Officer
• 11 years of experience from Oil & Gas industry and 6 years of experience from Audit in EY • Previous experience includes Senior associate in EY, Accounting and tax manager in Seadrill/North Atlantic and LOTOS E&P Norge AS • Holds a Master of Finance from NHH, CPA
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Investment highlights A full-scope, pureplay and innovative specialist in waste management
1
Market leading technologies and blue-chip clients
2
Contributing to reduced carbon emissions in the energy sector
• Market leading technologies and a complete range of cleantech waste management services • Strong operating focus • Blue-chip client base
• Waste reduction, waste recovery and reuse generate cost savings and reduced CO2 emissions • Increasing global focus on a cleaner production of energy and reduced pollution of the oceans are key drivers for continued growth • Production of oil & gas to play a key role in energy security for decades to come
Strong demand with an expanding global footprint
3
Strong track-record and solid revenue visibility
Source: Company
• Build-own-operate model combined with medium/ long term contracts yield revenue visibility • CAGR Revenue 41% from 2017 to 2022 • Gross margin ~45% and EBITDA-margins ~25%
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Delivering a complete range of cleantech waste management services Water / fluid treatment Treatment of contaminated water
Solids handling
STT Purifier
Cleaning services
Swarf Removal
Cuttings handling
Associated services
Slop treatment technology (STT) - High capacity, energy efficient treatment and recovery of contaminated water, incl. slop and brine – contributing to a circular economy
Reducing hazardous metals and chemicals in contaminated water
Tank and rig cleaning / inspection with state-ofthe-art equipment and experienced personnel
Removing steel fragments from fluid system, enabling reuse of the drilling fluid
Efficient handling of cuttings on the rig, introducing remote operations
Centrifuges, vacuum units, mud coolers
~69%
~1%
~8%
~1%
~17%
~4%
Xx%
= Share of Company revenue as of 30.09.2023 Source: Company
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Strong recurring client base Selected customers
Source: Company
5
Providing a wide range of services for WASTE REDUCTION, RECOVERY AND REUSE
WATER & FLUID TREATMENT
SOLIDS HANDLING / TREATMENT
Slop treatment
Mechanical
Chemical
Chemical
〤
Brine recovery
Mechanical
Filter
Filter
Filter
Removal of salts & metals
✓
〤
〤
〤
Swarf removal
✓
✓
✓
✓
Cleaning services
✓
✓
✓
✓
Cuttings handling
✓
✓
✓
✓
Cuttings treatment
〤
✓
✓
✓
Source: Company, Arkwright research
✓ Offered
〤No offering
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The STT process in action – Treatment of contaminated water Showcasing the STT capabilities – Processing, treating and recovering contaminated water
Source: Company
7
The Cuttings Handling process in action Showcasing the Cuttings Handling process
Source: Company
8
New technology initiatives Solids treatment
Water treatment
Remote operations
Automation
Cuttings Treatment Technology (CTT)
STT Purifier
Remote control system
Multi discharge arm
• Mechanical technology
• Reducing salts and metals
• Control room monitoring
• Reducing CO2 emissions
in contaminated water
• Reduced energy consumption
• Reuse of treated water
• Reduced manning • HSEQ improvements
• Automated cuttings handling • Small footprint • Flexible placement
• Higher capacity
Source: Company
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Contract overview Norway 2023 Rig Type
Client
Location
Pl a tform
Cl i ent
Norwa y
Pl a tform
Cl i ent
Norwa y
Ja ckup
Cl i ent
Norwa y
Ja ckup
Cl i ent
Norwa y
Pl a tform
Cl i ent
Norwa y
Ja ckup
Cl i ent
Norwa y
Ja ckup
Cl i ent
Norwa y
Ja ckup
Cl i ent
Norwa y
Semi s ub
Cl i ent
Norwa y
Semi s ub
Cl i ent
Norwa y
Pl a tform
Cl i ent
Norwa y
Semi s ub
Cl i ent
Norwa y
Semi s ub
Cl i ent
Norwa y
Semi s ub
Cl i ent
Norwa y
Q1
Q2
2024 Q3
Q4
Q1
Q2
2025 Q3
Q4
Q1
Q2
Q3
Q4
Contract Option SPS/Rig move
Source: Company
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Contract overview International 2023 Rig Type
Client
Location
Semi s ub
Cl i ent
Interna ti ona l
Pl a tform
Cl i ent
Interna ti ona l
Semi s ub
Cl i ent
Interna ti ona l
Semi s ub
Cl i ent
Interna ti ona l
Semi s ub
Cl i ent
Interna ti ona l
Semi s ub
Cl i ent
Interna ti ona l
Ja ckup
Cl i ent
Interna ti ona l
Ja ckup
Cl i ent
Interna ti ona l
Ja ckup
Cl i ent
Interna ti ona l
Ja ckup
Cl i ent
Interna ti ona l
La ndri g
Cl i ent
Interna ti ona l
Dri l l s hi p
Cl i ent
Interna ti ona l
Q1
Q2
2024 Q3
Q4
Q1
Q2
2025 Q3
Q4
Q1
Q2
Q3
Q4
Contract Option SPS/Rig move
Source: Company
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Significant cost savings and lower carbon footprint Soiltech’s technologies provides substantial cost benefits…1 = All waste to shore
= Alternative technologies
=
58% cost savings vs peers
Semisub
64% cost savings vs peers
Jack-up
… while ensuring substantial cuts in CO2 emissions2
offshore projects
tons
1525
~
tons
CO2 emissions REDUCTION per year by Soiltech
~5 207 tons Tons CO2 emissions reductions to date from Soiltech operations
63% cost savings vs peers
Fixed platform
25
~61
OR
OR
75% cost savings vs peers
Jack-up
~9.3
Million km in a petrol car (annual distance of ~700 petrol cars) 1) 2)
~12.690
short-haul flight passengers
~1 116 720 Kg of cast iron
Soiltech’s internal cost estimates. Estimates do not include onshore transport and treatment cost Based on Esgian data. xIQ is a software for estimation of a company's full environmental footprint, including own emissions and contributions to avoided emissions along the company's value chain
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SOILTECH continues to expand its global footprint as demand continues to increase SOILTECH has a global footprint…
…with an increasing share of revenues from international markets = International markets
= Norway
13%
2021
Norway (HQ) United Kingdom
52
72
16%
Mauritania Colombia
38
87%
Cyprus Lebanon UAE (Abu Dhabi)
Mexico
EMPLOYEE HEADCOUNT
Netherlands
2022 84%
117
UK 2020
2021
2022
24%
2023
2023 76%
Source: Company
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A history of strong and profitable growth Six consecutive years of growth and profitability…
2017 – 2022 financials
200
178
26%
180
23%
140
25%
160
137 20%
30%
25%
140
24%
22%
20%
120
25%
22%
120
15%
100
53
60
82
18% 15%
44
1
27
19
10
60
0%
Revenue
2020
EBITDA
2021
38
40
20
2019
10%
40
5%
0
2018
2022
EBITDA Margin
7
16
14
5%
0
0%
Q1 2023
Revenue
1
Revenue growth (CAGR) of 41% from 2017 to 2022 is mainly due to gaining market share from existing players in the market
2
Operating on medium and long-term contracts, with recurring revenues and visible profitability
3
Solid EBITDA-margins due to proprietary technologies and solutions
Source: Company
66
64
10%
14
2017
100
20%
80
32 3%
15%
65
80
20
171
180
160
40
2023 financials
30%
Q2 2023
EBITDA
Q3 2023
YTD 2023
EBITDA Margin
14
Financials Income statement NOKm
Q3 2023
Q3 2022
YTD 2023
YTD 2022
31.12.2022
Revenues
66
44
171
134
178
Operating cost
40
24
102
76
99
Gross margin
40%
46%
40%
44%
44%
SG&A
11
7
31
27
35
EBITDA from operations
16
13
38
32
45
EBITDA margin
24%
29%
22%
24%
25%
Depreciation
4
4
13
11
15
Operating profit
11
8
23
14
22
Net financial items
-3
-1.0
-5
-3
-4
Profit before tax
8
7
17
12
19
Q2 and Q3 2023 represented a significant increase in revenues compared to previous quarters
FINANCIAL OUTLOOK
We expect this level of activity to be maintained also in the last quarter of 2023 Going into 2024 and 2025, we expect the market will continue to improve, resulting in further growth for SOILTECH, as we continue to gain market share
Source: Company
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THANK YOU!
Soiltech AS
Koppholen 25, 4313 Sandnes, Norway www.soiltech.no
Soiltech UK
12 Carden Place, AB10 1UR, Aberdeen
Soiltech Abu Dhabi
Gibca Tower, Khalifa 3rd Street, Abu Dhabi
Soiltech Saudi Arabia
Abu Talha Al Ansari Street Plot #48 Teabah, Al Jubail Dakhl Al Mahdood Jubail – 31951, Kingdom of Saudi Arabia 16