ODIM ASA company presentation

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ODIM ASA - company presentation

• August 8, 2006
• Carnegie
• Oslo

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Agenda
Carnegie Oslo

• What is ODIM?
• Highlights Q1
• Goal and strategy
• The business model
• Value drivers
• Outlook
• Key investment considerations
• Appendix

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AboutWhat is ODIM ASA?

• ODIM ASA is a fast-expanding Norwegian technology
  company which develops and sells advanced
  automated handling solutions, primarily cable
  handling systems and winches for use on offshore
  and naval vessels. ODIM is listed on Oslo Stock
  Exchange.
• The company occupies a leading position in
  selected market segments, such as seismic
  surveying and offshore supply. Through its ODIM
  Spectrum subsidiary in Canada, it is also solidly
  rooted in the defence sector.

• In addition to its established market segments,
  ODIM will be making a heavy commitment to the
  very promising deepwater market.

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Company structureA leading provider in selected
niches
Mooring deepwater installation
Offshore service vessels
Marine
Breakthrough in Q1 2006
Main activity of ODIM since 1974
Acquisition of Spectrum in 1997
Seismic vessel equipment
Naval systems for vessels
Fibre ropes as substitutes for steel wire
Naval systems for helicopters
Supply vessel equipment
(Energy related systems)
Subsea vessel equipment
ODIM delivers complete solutions based on strong
in-house technological competence
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FinancialsODIM group highlights Q1
Revenues

• 173 per cent growth to NOK 193.0 million from Q1
  2005 to Q1 2006

EBITDA

• 360 per cent growth to NOK 27.6 million from Q1
  2005 to Q1 2006

Margins

• EBITDA-margin of 14.3 per cent in Q1 2006
  compared to 8.5 per cent in Q1 2005

Contracts

• Several seismic contracts totaling approximately
  NOK 170 million
• Subsea contracts for ROVs with a value of about
  NOK 23 million

Breakthroughs

• ODIM CTCU contract with Subsea 7
• ODIM ABCS contract with the Aker Brevik Yard

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FinancialsFinancial highlights Q1
Revenues per segment in NOK million )
EBITDA per segment in NOK million )

• Substantial growth in sales and earnings in
  Offshore service vessels
• The business area increases share of revenues to
  95 per cent
• No major contracts in Marine
• Mooring and deepwater installation goes from RD
  activity to revenue contributor in 2006

) Mooring and deepwater installation contributed
with NOK 0.3 million in revenues and a negative
EBITDA of NOK 1.9 million in Q1
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FinancialsKey figures - quarterly development
EBIT (NOK million)
Revenues (NOK million)
EBITDA (NOK million)
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FinancialsOrder back log and order intake

• Backlog of NOK 450 million in 2006
• Rest of backlog mainly for 2007
• Options for further NOK 300 million in 2007
• A number of new contracts awarded in Q2

Order backlog (NOK million)
Order intake (NOK million)
515
351
) Mooring and deepwater installation constitutes
NOK 6 million
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Goal and strategyProvider of automated handling
systems
Automated streamer handling In courtesy of ODIM
ASA

• ODIM shall contribute to more efficient
  operations through unique automation technology
• ODIM shall contribute to careful handling of
  costly equipment that secures continious
  operations for capital intensive customers
• ODIMs clear differentiation strategy is based on
• Experience in and knowledge of challenging
  operations
• Long term relationships with important players
• Focus on technology and expertise

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Business modelFocusing on the high margin
operations

• A turnkey provider of automated handling systems
• High competence engineering based on proprietary
  technology
• Fabrication through partners in low cost
  countries
• Czech Republic
• China
• Increasing installation demand
• Growth in service sales

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Business modelSuccess factors
New supply ship design In courtesy of Bourbon
Offshore

• Closeness to the market
• Thorough knowledge to both operations and
  function
• Tight relations to the customers
• Technical innovation
• Ability to deliver on time
• Long term planning (3 year plans)
• Geographically placed in the middle of a strong
  international cluster within the marine business
• Relations
• Competence
• Recruitment

Safe Anchor Handling System In courtesy of ODIM
ASA
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Offshore service vesselsSeismic is the main
value driver
Ramform vessel In courtesy of PGS ASA

• A number of 3D seismic projects launched
• 2006 Already fully booked
• 2007 Starting to fill up
• 2008 A number of projects already seen
• 2009 Too early to tell
• Comfortable through 2008.
• Still early in this cycle

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Offshore service vesselsA unique position in the
seismic industry

• A world-leading supplier of cable handling
  solutions
• Over 30 years experience
• Innovative ability and highly skilled staff
• Technology development in close cooperation with
  customers
• Will also in future take part in development of
  new and more efficient systems and new
  technologies such as
• Ocean bottom seismic
• Seabed logging technology
• Portfolio enables one stop shopping

Fairlead technology In courtesy of ODIM ASA
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Offshore service vesselsSubsea is expected to
pick up

• ODIM is about to position itself
• Need for more powerful equipment
• Customers report that automated handling systems
  from ODIM are more efficient
• ODIM will become a more complete supplier of
  subsea systems
• ODIM will increase market share in this segment

ODIM LARS In courtesy of ODIM ASA
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Offshore service vesselsA broader supply product
plattform
ODIM SAHS In courtesy of ODIM ASA

• ODIM experienced a breakthrough for the automated
  bulk hose connection systems (ABCS) during Q1
• ODIM products set a new standard for safe deck
  operations on board supply vessels
• The Hydrakraft acquisition strengthens the
  position in the supply market
• ODIM is today in the position to develop an even
  more complete equipment package for supply
  customers

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MarineGreat opportunities in North America
ODIM AHC In courtesy of ODIM ASA

• ODIM Spectrum delivers naval detector systems
  primarily for use onboard navy ships and on navy
  helicopters
• Focus on homeland security is main value driver
• Acquisition of Brooke Ocean Technolgy in Q3 will
  strengthen North America operations further
• Broadens product portfolio
• Increases market access
• Greater scaling opportunities

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Mooring and deepwater installationCommercial
breakthrough in 2006
Fibre Rope Deployment System (FRDS) In courtesy
of ODIM ASA

• The CTCU-contract with Subsea 7 awarded in
  February constitutes a commercial breakthrough
  for ODIM
• Also a technology breakthrough that opens up for
  a number of other discussions with both the
  drilling and deepwater installation industries
• A number of positive discussions held during Q1
• ODIM is currently looking into models for further
  commercialization of this business area

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Outlook
Offshore service vessels

• Diminishing oil reserves and increasing
  exploration activity are expected to lead to
  increased seismic activity in 2006 through 2008.

• Subsea field development in deep waters is
  expected to increase demand for automated systems
  for ROVs and subsea module handling.

• Increasing oil activity gives a stronger focus on
  control and safety within the supply segment. In
  addition the Hydrakraft acquisition makes the
  supply product portfolio more complete.

Marine

• Revenues for 2006 expected to be at the same
  level as in 2005. Focus on organic growth and
  selective acquisitions.

Mooring deepwater installation
Deepwater

• The business area is leaving the RD phase and is
  entering a first stage of commercialization

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Key investment considerationsWhy invest in ODIM?
Quoted on OSE on 18 November 2005 In courtesy of
ODIM ASA

• Attractive EP market outlook
• Strong order backlog
• Significant barriers to entry
• Proven track record
• Reliable and innovative products with a leading
  market position
• Strong and dedicated management team

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Questions and answers
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AppendixProfit and loss statement
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AppendixCash flow statement
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AppendixBalance sheet
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AppendixBoard and management
Management
Board of directors

• Bjarte Bruheim (chairman)
• Jan Borø
• Kristin Krohn Devold
• Nils Are Karstad Lysø
• Njål Sævik
• Ellen Olsen
• Janne-Rita Korsfur (employee rep.)
• Arve S. Myklebust (employee rep)

Jogeir Romerstrand CEO
Håvard Haanes MD ODIM AS
Arild Hatløy CFO
Andrew Roy MD ODIM Spectrum Ltd.
Per Ingeberg MD ODIM Alitec AS
Allen Queen MD ODIM Houston Inc.
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AppendixGlobal market presence
Head Office in Hareid, Norway 128 employees
Dartmouth/Halifax, Canada 33 employees )
Offices Agents
China
Pennsylvania, USA 4 employees
Peterborough, Canada 50 employees
India
Houston, US 2 employees
Brazil
) Acquisition of Brooke Ocean Technology (BOT)
is expected to be finalized during Q3.
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AppendixLargest shareholders (as of 7 August)