Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — H1 2013 Earnings Presentation
30 slides from Anton Oilfield Services's earnings presentation, Aug 12, 2013
Slide 1: 2013 Interim Results
2013 INTERIM RESULTS 12 August 2013 T ALENTS F IRST F AST- T RACK T RAINING
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by Anton Oilfield Services Group (the “Company”, together with its subsidiaries, the “Group”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairnes
Slide 3: Agenda
AGENDA 2013 INTERIM RESULTS SUMMARY OPERATING & FINANCIAL REVIEW OUTLOOK Q&A We succeed by helping others to succeed 3
Slide 4: 2013 Interim Results Summary
2013 INTERIM RESULTS SUMMARY
Slide 5: 2013 Interim Results Summary
2013 INTERIM RESULTS SUMMARY Profit attributable to equity Revenue Operating profit holders of the Company (RMB Million) (RMB Million) (RMB Million) 250 180 160 200 140 120 150 1,057.0 100 234.0 80 164.2 100 173.7 803.7 60 124.6 50 40 20 0 0 1H 2012 1H 2013 1H 2012 1H 2013 1H 2012 1H 2013 Revenue in
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS Growth in the domestic and overseas markets persisted. Domestically, business in the 1 three major basins grew rapidly. Overseas, business developed steadily in line with the investment progress abroad Existing businesses grew rapidly and new businesses started to generate revenu
Slide 7: Operating & Financial Review
OPERATING & FINANCIAL REVIEW
Slide 8: Tremendous Opportunities in Domestic Market; Steady Progress in Overseas Markets
TREMENDOUS OPPORTUNITIES IN DOMESTIC MARKET STEADY PROGRESS IN OVERSEAS MARKETS Domestic Overseas In the three major natural gas basins, Chinese investors continued to capacity construction accelerated, with prioritize the Middle East market. Al- priorities in conventional gas and tight gas Ahdab pr
Slide 9: Domestic Market Saw Rapid Growth; Overseas Markets Gained Momentum
DOMESTIC MARKET SAW RAPID GROWTH OVERSEAS MARKETS GAINED MOMENTUM By Geographical Markets Domestic (RMB Million) Continued to pursue the “natural gas” strategy, with the Tarim Basin, Erdos Basin 216.0 and Sichuan Basin as the prioritized markets, 20.4% offering fit-for-purpose services to meet 196.7
Slide 10: Continuous Growth in Core and Supplementary Services
CONTINUOUS GROWTH IN CORE AND SUPPLEMENTARY SERVICES Revenue breakdown by core/supplementary services (RMB Million) Drilling technology cluster +50.9%; drilling optimization-related 141.1 13.3% technologies fully promoted 11.7% 94.2 Down-hole operation cluster +47.5%; stimulation-related technologie
Slide 11: Suite of Technologies Around Drilling Optimization Fully Developed
SUITE OF TECHNOLOGIES AROUND DRILLING OPTIMIZATION FULLY DEVELOPED Drilling Optimization Drilling Drilling Fluid Service New Technology Service Oil-based drilling Drilling optimization fluid technology new technology Applied in the ultra-deep region of Promoted and applied in the Sichuan the Tarim B
Slide 12: Suite of Technologies Around Stimulation Fully Developed
SUITE OF TECHNOLOGIES AROUND STIMULATION FULLY DEVELOPED Coiled Tubing Service Multi-stage Fracking Service Coiled tubing-conveyed Open-hole multi-stage resettable packer fracturing fracking technology Well Completion Fracturing Chemicals Fracturing Integration Service Fracturing fluid Fiber-diverti
Slide 13: Integrated Service Model Fully Enhanced – Regular Service Capacity Fast Ramped Up
INTEGRATED SERVICE MODEL FULLY ENHANCED – REGULAR SERVICE CAPACITY FAST RAMPED UP Investment in regular service equipment further advanced. On pressure pumping service, in 1H 2013, an additional capacity of 31,200 HHP arrived; in July, an additional capacity of 20,000 HHP further delivered, increasi
Slide 14: Fully Enhanced Integrated Service Model – Reservoir Evaluation & Project Management
FULLY ENHANCED INTEGRATED SERVICE MODEL – RESERVOIR EVALUATION & ANALYSIS AND PROJECT MANAGEMENT CAPABILITIES STRENGTHENED Recruited top-caliber Reservoir geology and reservoir professionals and Evaluation and developed Analysis competencies for For the reservoir evaluation and analysis building of
Slide 15: Talent First and Fast-Track Training to Ensure Rapid Growth
TALENT FIRST AND FAST-TRACK TRAINING TO ENSURE RAPID GROWTH Intensified efforts to attract experienced professionals and top industry talents Large-scale campus recruitment completed, with 680 graduate hires on board and receiving training in August. The talent pool for the Group’s long-term develop
Slide 16: Stable Profitability
STABLE PROFITABILITY Profit attributable to equity Cost analysis (as a percentage of total revenue) holders margin Cost of sales to revenue SG&A to revenue 60.0% 50.0% 20.0% 40.0% 18.0% 20.8% 15.5% 15.5% 30.0% 52.1% 56.0% 16.0% 19.0% 20.0% 14.0% 10.0% 12.0% 0.0% 10.0% 1H 2012 1H 2013 1H 2012 1H 2013
Slide 17: Healthy Level of Working Capital Efficiency
HEALTHY LEVEL OF WORKING CAPITAL EFFICIENCY 1H 2013 1H 2012 Change Trade receivables turnover days 163 170 -7 Inventory turnover days 150 137 13 Trade payables turnover days 167 127 40 We succeed by helping others to succeed 17
Slide 18: Outlook
= O \e) = = — O
Slide 19: Asset-Light Integrated Service Model
ASSET-LIGHT INTEGRATED SERVICE MODEL To become a larger-scale, asset-light integrated service provider Strengthen the development and application of new technology, expedite talent recruitment to Drive the promote regular integrated service services model through reservoir Invest in regular manageme
Slide 20: Markets
MARKETS Domestic Investment in natural gas to grow continuously, with conventional and tight gas to remain a development focus. Oil companies to commence preliminary shale gas projects and paying attention to tight oil Continue to prioritize the domestic market, expand its domestic business, focus o
Slide 21: Products
PRODUCTS Further promote the application of new technologies to meet client demands for drilling optimization and stimulation Leverage advantages in the high-end market and accelerate the mobilization of regular service equipment to achieve mutually-reinforcing synergies between technology and equip
Slide 22: Strategic Resources Alignment
STRATEGIC RESOURCES ALIGNMENT Expedite Training for Talents Develop training programs for the large number of fresh graduates recruited, grow them to be qualified field engineers through the rigorous fast-track training program We succeed by helping others to succeed 22
Slide 23: Strategic Resources Alignment
STRATEGIC RESOURCES ALIGNMENT Capital Expenditure Aim to implement the RMB400 million annual CAPEX budget. Determine the pace of service capacity building in accordance with the Group’s strategic plan to realize its strategic objectives Continue to push forward construction of the industrial base in
Slide 24: QHSE Management
QHSE MANAGEMENT To introduce leading QHSE talents from international oil companies, further invest in QHSE and foster the QHSE culture, to improve its QHSE management system in line with international standards We succeed by helping others to succeed 24
Slide 25: Finance
FINANCE Continue to stabilize profitability and working capital management efficiency at healthy levels Continue to improve access to domestic and offshore financing channels, having completed the issue of RMB-denominated medium-term notes (2nd tranche) in the principal amount of RMB200 million in A
Slide 26: Ramp Up Integrated Service Capacity & Capability Comprehensively
RAMP UP INTEGRATED SERVICE CAPACITY & CAPABILITY COMPREHENSIVELY TO REALIZE OUR STRATEGIC GOAL
Slide 27: Q&A
Q&A
Slide 28: Appendix 1: Consolidated Income Statement
APPENDIX 1: CONSOLIDATED INCOME STATEMENT For the 6 months ended 30 June (RMB’ mln) 2013 2012 Revenue 1,057.0 803.7 Cost of sales (591.9) (419.0) Gross Profit 465.1 384.7 Other gains, net 12.1 0.7 Selling expenses (81.4) (72.3) Administrative expenses (119.7) (94.8) Research and development expenses
Slide 29: Appendix 2: Balance Sheet
APPENDIX 2: BALANCE SHEET (RMB’ mln) As of 30 Jun 2013 As of 31 Dec 2012 Property, plant and equipment 1,165.7 955.1 Land use rights 22.5 28.8 Intangible assets 367.8 371.2 Investment in a jointly controlled entity 13.4 4.0 Deferred income tax assets 19.2 19.5 Inventories 499.5 487.0 Trade and notes
Slide 30: Appendix 3: Cash Flow Statement
APPENDIX 3: CASH FLOW STATEMENT As at 30 Jun (RMB’ mln) 2013 2012 Net cash used in operating activities (2.5) (84.2) Net cash used in investing activities (216.5) (179.1) Net cash generated from financing activities 69.6 135.1 Net increase/(decrease) in cash and cash equivalents (149.4) (128.2) Cash
Anton Oilfield Services Group — H1 2013 Earnings Presentation on 6ix