Annual Report 2012

The Board of Directors of Welltec International ApS (“Welltec”) has today approved the annual report for 2012.

Key Highlights
Welltec® delivered a strong financial performance in 2012, combining accelerated growth with high profitability and solid cash generation. The results are higher than anticipated in the outlook provided in the Annual Report 2011 and in line with the guidance presented in Welltec’s interim report for the third quarter.

Revenues increased by 39% to DKK 1,701 million and all regions continued to contribute:
Revenue in Europe, Middle East, Africa and Russia/CIS (EMEAR) increased by 32% to DKK 875 million
In the Americas, revenues rose by 36% to DKK 618 million
Asia Pacific recorded a revenue increase of 97% to DKK 208 million
Welltec® posted a 35% increase in EBITDA to DKK 802 million equating to an EBITDA margin of 47% (49% in 2011)
Operating profit (EBIT) increased by 62% to DKK 492 million
Welltec® net profit increased by 44% to DKK 129 million
Management expects continued growth in revenue and EBITDA in 2013. Revenue is expected to be in the range of DKK 2.1 billion to 2.3 billion (24 – 35% growth) with an EBITDA margin expected to be at or around recent historic levels.
Jørgen Hallundbæk, CEO: “2012 was another great year of achievements at Welltec®. We continued our growth journey while managing to uphold strong levels of profitability and deliver superior services at the highest possible technological standard. Our success is testament to the fact that Welltec’s solutions consistently enable our customers to extract significant value beyond cost. And following our strong operational and financial performance, we will continue our work to take Welltec® to the next level in 2013.”

The annual report is available on the “Investors” section of Welltec’s website at www.welltec.com under the subheading “Download Center”.

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is also available on the “Investors” section of www.welltec.com under the subheading “Download Center”. The conference call can be accessed by dialling in a few minutes before the 5 pm CET start and informing the operator that you are dialling in for Welltec’s investor conference call, conference ID 86717268.

Conference Call Access Numbers:
Denmark: +45-32728018
United Kingdom: +44-8445-718-957
USA: toll free +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer, mobile:+45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director, mobile: +45 22 33 73 08

Company Profile
Welltec® is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize their use of oil and gas resources throughout the life-cycle of their wells. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the-art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable.
Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options.

Important Notices
Any statement in this announcement that is not a historical fact is a “forward-looking statement”. Such statements may include opinions and expectations regarding the Company and its future business, management’s confidence and strategies as well as details of management’s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside the Company’s control, and which could cause the Company’s actual results to be materially different from these forward-looking statements. While the Company believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of the Company’s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. The Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.