Title: Fourth quarter 2005
1Fourth quarter 2005 February 28 2006
2- Disclaimer for forward-looking statements
- This quarterly presentation includes and is
based, inter alia, on forward-looking information
and statements that are subject to risks and
uncertainties that could cause actual results to
differ. Such forward-looking information and
statements are based on current expectations,
estimates and projections about global economic
conditions, the economic conditions of the
regions and industries that are major markets for
ODIM ASA and its subsidiaries. These
expectations, estimates and projections are
generally identifiable by statements containing
words such as "expects", "believes", "estimates"
or similar expressions. Important factors that
could cause actual results to differ materially
from those expectations include, among others,
economic and market conditions in the geographic
areas and industries that are or will be major
markets for the ODIMs businesses, oil prices,
market acceptance of new products and services,
changes in governmental regulations, interest
rates, fluctuations in currency exchange rates
and such other factors as may be discussed from
time to time. Although ODIM ASA believes that its
expectations and the information in this Report
were based upon reasonable assumptions at the
time when they were made, it can give no
assurance that those expectations will be
achieved or that the actual results will be as
set out in this Report. ODIM ASA nor any other
company within the ODIM Group is making any
representation or warranty, expressed or implied,
as to the accuracy, reliability or completeness
of the information in the Report, and neither
ODIM ASA, any other company within the ODIM Group
nor any of their directors, officers or employees
will have any liability to you or any other
persons resulting from your use of the
information in the Report. ODIM ASA undertakes no
obligation to publicly update or revise any
forward-looking information or statements in the
Report.
3Agenda
Part I Business development and outlook
- Group highlights
- Financial highlights
- Market development
- Pipeline
- Outlook and objectives
- In depth Mooring and deepwater installation
Part II Business opportunities
4Group highlights in Q4
Quoted on Oslo Stock Exchange on 18 November 2005
- Strong and profitable growth
- 145 per cent growth in revenues to NOK 127.4
million i Q4 - 135 per cent growth in EBITDA to NOK 10.5
million in Q4 - Strong order inflow
- Shareholder value creation
- Issue price NOK 30.00
- Share price 31 December NOK 39.50
5Financial highlights in Q4
- Substantial growth in both sales and earnings
- Offshore service vessels constitutes 90 per cent
of revenues - Relatively strong margins in Marine
- Mooring and deepwater installation was still an
RD activity in 2005
145 prosent
239 prosent
) Mooring Deepwater Installation had a
negative EBITDA of NOK 3.3 million
6Key figures in 2005
- Revenues up 115 per cent from 2004
- EBITDA up 237 per cent from 2004
- Strong growth within offshore service vessels
due to strong offshore markets - Strong order intake and backlog
7Overall market development
AUTOMATED HANDLING SYSTEMS
81. Offshore service vessels- Seismic vessel
equipment
- Very strong market development due to high oil
price and seismic activity - Contract with Rieber Shipping for delivery of
complete seismic equipment worth NOK 60 million - Contract with the Chinese exploration company
BGP for the supply of a complete back-deck
handling system for a 3D seismic vessel worth
approximately NOK 40 million.
World leading supplier of complete back deck
solutions with advanced control systems
91. Offshore service vessels- Supply vessel
equipment
- Focus on safety and work environment gives
opportunities for ODIMs specialised products - Delivery of the first Safe Anchor Handling
System (SAHS) in Q4 - Awarded the first contract for Automated
Bulk-hose Connection System (February 2006) - The Hydrakraft acquisition makes it possible to
broaden the product portfolio further
Odim ABCS
Bulk Hose (ABCS)
Safe Anchor Handling System (SAHS)
101. Offshore service vessels- Subsea vessel
equipment
- Technology developed in close cooperation with
customers based on a long term relationship - First orders for delivery of automated handling
systems for remotely-operated vehicles (ROVs)
from Geoconsult in Q3 - Contract worth NOK 30 million for three systems
awarded in Q4 - Additional order from Geoconsult for two
additional systems in February 2006
Launch and recovery system
Umbilical and reel system
112. Marine
CH-60 flight trials
- Several new defense subcontracts awarded with a
total contract value of approximately NOK 80
million - Considering additional business opportunities
Towed sensor
LBVDS handling system
A segment with different characteristics than
offshore service vessels yet important synergies
123. Mooring deepwater installation
- Successful pilot testing on Ormen Lange earlier
in 2005 - Still a RD activity in Q4
- A number of discussions going on with industry
in quarter - Drilling companies
- Deepwater installation companies
- Commercial breakthrough after end of reporting
period
13Pipeline (as of 28 February)
- Backlog of 608 million in 2006
- Backlog of 72 million in 2007
- Options for further NOK 300 million in 2007
High activity levels in 2006 and 2007
14Outlook
Strong newbuilding and upgrading activity in
seismic segment
Offshore service vessels
Integration of Hydrakraft and focus on SAHS and
ABCS High activity in subsea installation
Mooring deepwater installation
Commercial and technological breakthrough for the
CTCU technology. Ready for roll out in 2006
Marine
Focus on homeland security
Marine
15Strategic objectives for 2006
- ODIM will further strengthen the strategic
position within current market segment - Integration of Hydrakraft
- Organic growth and selective acqusitions in
defence - Objective for mooring deepwater installation
- CTCU to become an industry standard for handling
of cable and rope
16Deepwater growth opportunities
17The CTCU system
- Enables use of fiber rope instead of steel wire
- Developed in close cooperation with industry
- Tested successfully on the Ormen Lange field
- ODIM has the sole right to manufacture and sell
the concept
CTCU A joint industry development project
18CTCU system advantages
- Fiber rope weight is substantial lower than
steel wire
- Enables higher payload
- Less costly operations
- Requires gently handling
Suitable for large and heavy operations on deep
water
19CTCU system market potential
Potential applications for CTCU system
An estimated NOK 1 billion market
20Market drivers
Deepwater oil and gas production
Deepwater output to triple by 2010
Mbpd
- Deepwater representing main areas of new offshore
exploration efforts and production growth - Deepwater oil gas production is expected to
triple by 2010E - Harsh environment and deepwater areas are a
critical component to secure long term energy
supply
9
21
of total offshore
Significant growth opportunities within subsea
vessels equipment and mooring deepwater
installations
Deepwater gt3,000ft of water (gt1,500ft if harsh
environment)
SourceCERA (July 2005), IFP
21The breakthrough The Subsea 7 deal
- Subsea 7 will lease an advanced winch system for
six months with a subsequent purchase option.
Contract worth NOK 18 million - ODIM CTCU will be used to handle a number of
different units such as subsea manifolds,
umbilicals and jumpers. - Maximum lifting capacity is about 45 tonnes, and
it will operate in water depths down to roughly 2
750 metres.
A first stage in the commercialisation of a
completely new technology for mooring and
deepwater installation
22QA
23Appendix
24Profit and loss statement
25Cash flow statement
26Balance sheet
27Key figures quarterly development
28Board and management
Management
Board of directors
- Bjarte Bruheim (Chairman)
- Jan Borø
- Karl Johan Bakken
- Njål Sævik
- Ellen Olsen
- Janne-Rita Korsfur (employee)
- Arve S. Myklebust (employee)
Jogeir Romerstrand CEO
Arild Hatløy CFO
HÃ¥vard Haanes MD ODIM AS
Andrew Roy MD ODIM Spectrum Ltd.
Per Ingeberg MD ODIM Alitec AS
Allen Queen MD ODIM Houston Inc.
29Global market presence
Head Office in Hareid, Norway 128 employees
Offices Agents
China
Peterborough, Canada 50 employees
India
Houston, US 2 employees
Brazil
30Largest shareholders (as of 24 February 2005)
31Control of OHI AS
- ODIM acquired a further 33.3 per cent of OHI AS,
giving full control with an 83.2 per cent
interest - OHI owns a facility at Hjørungavåg which it
leases back to ODIM - ODIM will now concentrate on
- long-term development of the Hjørungavåg plant
tailored to the needs of a strongly expansive
ODIM - liberating capital for future growth through the
sale of the property to a third party - improved rental agreement
- secure access to cash position in OHI
More effective way to create shareholder value
than the plan described in prospectus