Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2015 Earnings Presentation
29 slides from Anton Oilfield Services's earnings presentation, Mar 29, 2016
Slide 1: 2015 Annual Results
2015 Annual Results 1 2016/03/29
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Anton Oilfield Services Group (the “Company”) solely for the purpose of corporate communication and general reference that would not be reproduced or redistributed to any other person without the permission of the Company. The presentation is not intended
Slide 3: Agenda
Agenda 2015 Annual Results Summary 2016 Outlook Q&A 3
Slide 4: 2015 Annual Results Summary
2015 Annual Results Summary Revenue Operating Profit RMB million RMB million -11.5% +143.5% 92.5 2,071.2 1,833.0 38.0 2014 2015 2014 2015 Profit Attributable to Equity Holders of the Company Net Cash Flow from Operating Activities RMB million RMB 360.0 million 340.0 320.0 300.0 2014 2015 280.0 260.0
Slide 5: Business Highlights
Business Highlights Despite challenging market conditions, the Group saw smaller-than-average revenue decline and order backlog remained sufficient A rapid growth in overseas markets, notably Iraq; order backlog hit record high despite market downturn Business transformation showed results; share of
Slide 6: Revenue decline smaller than industry average despite challenging market conditions
Revenue decline smaller than industry average despite challenging market conditions Crude price 2014-2015 Customer’s Upstream CAPEX Revenue of the Group 140.00 RMB million RMB million 120.00 2014 mean price: USD99.5 2015 mean price: USD53.6 100.00 2,071 80.00 221,,479 1,833 60.00 40.00 157,822 -46.1
Slide 7: Overseas orders rose significantly; new orders reach record high
Overseas orders rose significantly; new orders reach record high New orders Revenue RMB million RMB million 3068.6 2588.6 1,901.8 62.0% 692.6 48.9% 1,266.8 33.4% 41.5% 760.9 51.1% 1,378.6 1,321.8 1,072.1 58.5% 1,166.8 66.6% 38.0% 2014 2015 2014 2015 Domestic market Overseas market 7
Slide 8: Focus on overseas; Iraq a bright spot
Focus on overseas; Iraq a bright spot New orders in Iraq Revenue in Iraq RMB million RMB million 坐标轴标题 +15.8% +11.7% 556.6 1,448.9 1,251.1 498.5 2014年 2015年 2014 2015 坐标轴标题 Profit on Iraq business Receivables collection RMB million RMB million 195.0 632.7 136.0 +43.4% +79.5% 352.4 2014 2015 2014 201
Slide 9: Business transformation showed results, OPEX related business increased
Business transformation showed results, OPEX related business increased Revenue divided from Revenue divided from former four cluster present three clusters RMB million RMB million 206.9 10.0% 10.7% 221.9 402.1 21.9% 214.4 11.7% 532.9 53.6% 1,110.7 25.7% 452.5 24.7% 805.1 43.9% 22.0% 456.6 274.8 15.
Slide 10: Cost-saving and efficiency programs achieved visible results; operating profit rose significantly
Cost-saving and efficiency programs achieved visible results; operating profit rose significantly Actual operating profit RMB million 323.5 Personnel optimization cost 148.3 &former employee cost 商誉减值 Goodwill 26.5 impairment 56.2 Exchange loss 92.5 Operating profit - 38.0 2014 2015 10
Slide 11: Improved working capital management; CF from operating activities improved
Improved working capital management; CF from operating activities improved Net working capital Receivables collection Net operation CF RMB million RMB million RMB million 360.0 340.0 320.0 300.0 280.0 260.0 240.0 220.0 200.0 180.0 160.0 +777.3 140.0 +7.4% 120.0 100.0 80.0 157.4 -21.9% 60.0 40.0 2014
Slide 12: Agenda
Agenda 2015 Annual Results Summary 2016 Outlook Q&A 12
Slide 13: 2016 Outlook
2016 Outlook Global oil prices struggle in the trough; competition remains fierce Chinese OFS companies are gradually displacing international OFS firms for oil companies are need to cut cost China increases exploration and development investment in countries along the Belt and Road In the long-term
Slide 14: Accelerate overseas growth, stabilize domestic shares
Accelerate overseas growth Stabilize domestic shares Canada Turkmenistan Kazakhstan Iraq Pakistan Mexico Dubai 刚果（布） Ethiopia Colombia Congo/Brazzaville. Offices/Branhes Order backlog Frontline Operation Support （2780.1 million） 9.4% China state-owned oil company 50.4% 40.3% NOC & IOC Independent oi
Slide 15: "Light-asset" product strategy
“Light-asset” product strategy increase capacity utilization, improve product profitability CAPEX RMB million capex -34.3% 864.5 -63.0% 轻资产 567.6 209.8 2013 2014 2015 Tighten control on Reasonable allocation Improve profitability investment scale， asset into overseas through technology CAPEX d
Slide 16: Advance on cost reduction and efficiency gain
Advance on cost reduction and efficiency gain Optimize Refinement Cut cost project cost structure manageme nt Labor cost Shut down the Promote every product lines of project refined Material low profit and through cost high cost， focus The SAP put on profitable into use Operation product lines cost
Slide 17: Further improved working capital management
Further improved working capital management Advance cash flow guidance on marketing 110.0% 113.4% project; decide whether to 93.5% execute based on 84.0% cash flow 70.0% operation cash flow/revenue receivables 30.0% collection/revenue Tighten working 14.9% capital 8.6% management, lower -10.0% its o
Slide 18: 2016 Outlook
2016 Outlook Enhance cash management Generate net cash flow Optimize cost structure, Advance on cost reduction and efficiency gain “Light-asset”Strategy Improve asset utilization, control CAPEX Take advantage of market distribution Capture market share in overseas 18
Slide 19: Adapt swiftly to trends, demonstrate competitive advantage at industry trough
Adapt swiftly to trends Demonstrate competitive advantage at industry trough, Realize recovery growth! 19
Slide 20: Agenda
议程 2015 Annual Results Summary 2016 Outlook Q&A 20
Slide 21: Appendices
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Slide 22: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement RMB million 2015 2014 Revenue 1,833.0 2,071.2 Cost of Sales (1,250.3) (1,425.8) Gross Profit 582.7 645.4 Other gains, net 20.7 (1.8) Selling expenses (137.5) (190.9) Administrative expenses (339.0) (361.2) Research and development expenses (18.9) (37.6) Sale
Slide 23: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million 2015 2014 Property, plant and equipment 2,355.5 2,293.4 Land use rights 59.9 61.0 Intangible assets 379.5 392.4 Investment in a jointly controlled entity 4.0 5.0 Other non-current assets 67.3 88.6 Deferred income tax assets 64.7 57.3 Inventories 834.2 709.7 Trad
Slide 24: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement RMB million 2015 2014 Net cash generated from operating activities 157.4 (619.9) Net cash generated from investing activities (133.3) (575.6) Net cash generated from financing activities (329.5) 193.1 Net increase (decrease) in cash and cash equivalents (305.4) (1,002
Slide 25: Appendix 4: Business Cluster Mix
Appendix 4: Business Cluster Mix 2015 Revenue Breakdown 2015 EBITDA Breakdown 2015 EBITDA/EBITDA Margin RMB million 350,000 45% 40.36% 38.94% 40% 300,000 21.96% 23.92% 35% 28.14% 250,000 28.29% 30% 35.57% 200,000 25% 314.2 150,000 20% 184.4 156.8 15% 100,000 10% 50,000 5% 42.47% 47.94% 0 0% drliing
Slide 26: Appendix 5: Cost Analysis
Appendix 5: Cost Analysis Costs/Expenses by 2015 2014 Change 2015 2014 Change function % of Revenue % RMB million % Cost of sales 68.21% 68.8% -0.59% 1250.3 1,425.80 -12.31% Selling expenses 7.50% 9.2% -1.70% 137.5 190.9 -27.97% Administrative expenses 18.49% 17.4% 1.09% 339 361.2 -6.15% R&D expense
Slide 27: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters Description and Constituent Business Lines Drilling Technology Provides engineering technical services and products during the drilling stage to solve problems encountered in Cluster directional drilling, drilling assessment, drilling acceleration,
Slide 28: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Description Constituent Business Lines Well Completion Cluster Provides integrated well completion and stimulation services from integrated solutions for well cementing and completion, production well completion, equipment, tools and materials I
Slide 29: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Description Constituent Business Lines Oil Production Cluster Provides engineering services and products for oil companies during well completion and production; enables economical recovery based on reservoir geological conditions through produc
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