Interim Report Q1 – 2013

INTERIM REPORT Q1 – 2013

Welltec’s revenue growth eased in the first quarter following the exceptional performance in the third and fourth quarters of 2012. EBITDA was reduced due to a combination of lower quarterly revenues and the significant investments in operational capacity in order to deliver the continued growth. As seen in previous quarters, this front-loading of additional costs has a short-term impact on margins and is a consequence of the continued growth cycle. Accordingly, Welltec® upholds its revenue and earnings forecast for the full-year.
Revenue increased by 18% year on year to DKK 428 million with all regions again contributing:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 12% to DKK 220 million
Revenues in the Americas rose by 18% to DKK 152 million
Asia Pacific recorded a revenue increase of 46% to DKK 56 million
Welltec® posted an 11% decrease in EBITDA to DKK 154 million, equating to an EBITDA margin of 36% (48% in 2012)
Operating profit (EBIT) decreased to DKK 79 million (DKK 108 million)
Welltec® maintains its full-year revenue forecast in the range of DKK 2.1-2.3 billion (24%-35% growth) and holds expectations of an EBITDA margin at or around recent historic levels.
Jørgen Hallundbæk, CEO: “During the first quarter we have continued to see many positive developments around the world. In India, our e-line technologies are increasing production without the need for a rig or coiled tubing unit, proving our value proposition in the early stages of our partnerships there. Also in the Middle East, with another successful deployment of our award winning Well CutterTM tool. With the investments made in recent quarters, Welltec® is well positioned to deliver the growth planned for 2013 and beyond.”

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is available on the “Investors” section of www.welltec.com under the subheading “Download Center”. A Danish version of these key highlights can also be downloaded. 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 53914435.

Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490
The presentation and a web-cast recording of the investor conference call will be available online following today’s live transmission.

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 down-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..