Slide 1: AJ Lucas Group Limited Results Presentation, Year ended 30 June 2007
For personal use only AJ LUCAS GROUP LIMITED RESULTS PRESENTATION Year ended 30 June 2007
Slide 2: Presentation Outline
Presentation Outline For personal use only Highlights Group Financial Performance Business Unit Performance CSG Assets Balance Sheet Strategy Outlook
Slide 3: Highlights
Highlights For personal use only • Strong earnings improvement – EBITDA increased by 77.1% to $14.9 million – EPS increased by 95.1% to 11.9 cents • Net results unfavourably impacted by impairment provisions ($3.3m), legal fees ($3.6m), amortisation of customer contracts ($1.8m) offset by profit on
Slide 4: Group Financial Performance
Group Financial Performance For personal use only • Strong earnings growth Change 2007 2006 % • Result adversely affected by non-recurring items Revenue $216.4m $171.2m 26.4 • Maiden earnings contribution EBITDA $14.9m $8.4m 77.1 from McDermott Drilling EBIT $5.9m $3.1m 90.8 • Taxation expense favou
Slide 5: Divisional report – Pipelines
Divisional report – Pipelines For personal use only • HDD reporting reclassified from Change Pipelines to Drilling 2007 2006 % • Weston Corridor Project Revenue $73.2m $42.0m 74.3 proceeding satisfactorily • Goro Project nearing completion – conservative EBITDA $4.3m $3.6m margin recognition Impairm
Slide 6: Divisional report – Drilling Services
Divisional report – Drilling Services For personal use only • HDD brought under Drilling Management • Market leadership in coal and coal seam gas drilling Change • Major customers include BHPB, 2007 2006 % Rio Tinto, Xstrata, Anglo Coal Revenue $67.6m $50.9m 32.8 • Significant maiden earnings contri
Slide 7: Divisional report – Construction and Civil
Divisional report – Construction and Civil For personal use only Change 2007 2006 % • Specialised civil engineering Revenue $75.5m $78.4m (3.7) activity commenced • Delays in project EBITDA $0.5m $1.9m commencement (Ivy and Hyundai) Impairment losses $1.0m $0.4m • Facilities management Facilities ma
Slide 8: Coal Seam Gas
Coal Seam Gas For personal use only • Gloucester Basin – Dedicated management and exploration team established – Drilling programme accelerated – Land acquisition programme commenced – Expenditure commitments being funded out of Group cash flow – First reserves certification due early calendar 2008
Slide 9: Balance Sheet
Balance Sheet For personal use only • $25 million 3 year convertible note issue completed – Refinance $10.0 million of existing notes – Finance for coal seam gas exploration expenditure – Working capital $m • Capricorn Weston Drilling Group purchase price 21.0 Less debt (4.5) Purchase consideration
Slide 10: Strategy
Strategy For personal use only • Sector focus: water & waste water, energy, resources and property • Balanced business mix • Market leadership in chosen sectors • Risk mitigation through project alliances and partnerships • Diversify activities into Asia with local partners, commence activities in C
Slide 11: Outlook
Outlook For personal use only • High demand for pipeline work (water and gas) over foreseeable future • CSM gas sector plans significant capex • Resources industry continuing to expand as export capacity increases • Attractive prospects in China – HDD, coal and CSG drilling services, pipelines • Ord