Aj Lucas Group Limited · ASX:AJL
Aj Lucas — FY2009 Earnings Presentation
22 slides from Aj Lucas's earnings presentation, Aug 27, 2009
Slide 1: AJ Lucas Group Limited Results Presentation 2008/2009
For personal use only AJ Lucas Group Limited Results Presentation 2008/2009 27 A Augustt 2009
Slide 2: Overview
For personal use only Overview All CCampbell, Allan b ll CEO
Slide 3: Group Highlights
Group Highlights For personal use only • Much Achieved – Good Platform – Drilling D illi businesses b i mergedd andd headquartered h d t d ini Brisbane – Asset sales generate cash of $293m – New head office in Sydney y y – Substantial investment in ICT and systems and procedures • Unsatisfactory f R
Slide 4: Strategy
Strategy For personal use only Right Place, Right Time • Good balance between Divisions and between Activities • Sector mix: oil & gas, water & waste water, public infrastructure, coal • Full service capability – within and across Divisions Business Drivers • Clients – major corporates, government,
Slide 5: Financial Overview
Financial Overview For personal use only • Operating revenue – Up 18% to $499 million • EBITDA – Up 594% to $265$265.2 2 million • Net profit after tax – Up 1,077% to $165.2 million • Earnings per share – 249.7 ¢ • Dividends pper share – 10.5 ¢ • Extraordinary gain on sale of CSG assets – $221 milli
Slide 6: Revenue and Profit Growth
Revenue and Profit Growth For personal use only Operating Revenue EBITDA $m 44.1 499.2 38.2 424.3 18.3 10.6 216.4 171.3 (6.7) 2005 2006 2007 2008 2009 * 74.2 1st half 2nd half 2005 2006 2007 2008 2009 * Excl E l CSG assett sales l 1st half 2nd half
Slide 7: Divisional Overview
Divisional Overview For personal use only EBITDA ($m) • Drilling Services 34.5 – Mitchell result for 10 months – Business now operating as one division – Impact of wet weather in Jan and Feb 18.9 13.5 – Negative effect of GFC in coal sector – Capex and R&M spend too high 5.4 – Restructuring costs ex
Slide 8: Divisional Overview
Divisional Overview For personal use only • Operations and Maintenance – Growing in scale and operations – Directed towards core activities in oil and gas and water and waste water – Focused approach ‐ quality rather than size – Emphasis on higher margin, lower labour requirement • Energy and Water
Slide 9: People and Safety
People and Safety For personal use only Employee Numbers Safety Performance Significant Growth Si ifi t Improvement Significant I t 1 032 1,032 23.00 21.00 768 19.00 17.00 15.00 13.00 406 11.00 9.00 217 203 7.00 5.00 3 00 3.00 1.00 2005 2006 2007 2008 2009 Operations Total Drilling 752 C&I 235 Inves
Slide 10: Financial Analysis
For personal use only Financial Analysis M k Summergreene, Mark S CFO
Slide 11: Financial Performance
Financial Performance For personal use only • Result includes Mitchell acquisition for 10 2009 2008 Change months. Revenue $499.1m $424.3m + 18% • Margin erosion significant EBITDA* $44.1m $38.2m + 15% – Project delays in commencement – Poor project management EBIT* $20.7m $26.8m ‐ 23% – Restructuri
Slide 12: Profit Before Tax
Profit Before Tax For personal use only Profit Before Tax Total Profit A$m A$m 35 240 228.37 221.16 9 20 9.20 (2 73) (2.73) 30 220 (5.54) 25 200 (3.70) 21.21 20 (3 28) (3.28) 180 (7.95) 15 160 10 140 7.21 5 120 0 100
Slide 13: Divisional Performance
Divisional Performance For personal use only HY09 FY09 FY08 FY09 vs FY08 Sales 103.3 204.3 88.4 131% EBITDA 22.0 34.5 18.9 83% Drilling Services (incl O&M) EBITDA / Sales 21 3% 21.3% 16 9% 16.9% 21 3% 21.3% Order Book 166.6 151.9 56.5 169% Sales 189.4 294.9 335.9 (12%) EBITDA 9.1 17.6 23.2 (24%) Con
Slide 14: Cash Flow Movement
Cash Flow Movement For personal use only A$m 500 450 29.0 (6.4) (9.9) (11.9) 45.0 (19.9) (40.4) 400 83.2 (57.4) 350 (76.2) 300 265.2 250 (119.7) 200 150 96.3 100 50 15.7 0
Slide 15: Working Capital
Working Capital For personal use only Operating cash flow $m EBITDA 44.1 • Debtor days outstanding of 50 Interest (9.4) at June 09 impacted by three 34.7 projects Movement in working capital: • C dit movementt reflects Creditors fl t timing re delays in Trade & other receivables (12.6) commencement
Slide 16: Balance Sheet
Balance Sheet For personal use only $m 2009 2008 • Debt analysis – Bank debt $67.5m Cash 96.3 16.6 – Leases (P&E) $33.1m Total assets 579.2 231.6 – Property $4.0m Borrowings 168.6 71.0 – RCPS $43.2m – Def purchase considerations $20.8m $20 8m Total liabilities 317.5 165.3 – TOTAL $168.6m Equity 261.
Slide 17: Outlook
For personal use only Outlook All CCampbell Allan b ll andd Ni Nickk S Swan
Slide 18: Outlook: Drilling Services
Outlook For personal use only • Drilling Services – Confidence returning in coal sector – Domestic CSG and LNG on track: FID for LNG in 2010 – Shortage of resources requiring longer term contracts Rigs – Overseas competition expected to remain offshore Exploration 56 – Emphasis on servicing core, bl
Slide 19: Outlook: Construction & Infrastructure
Outlook For personal use only • Construction & Infrastructure – Emphasis on quality of client and risk management Infrastructure & Civils – Outlook for oil and gas in Qld and WA very buoyant Construction – LNG projects, domestic gas, upgrade of existing facilities HDD – Waste water projects Australi
Slide 20: Outlook: Energy and Water Assets
Outlook For personal use only • Energy Assets – Good portfolio of unconventional plays (particularly shale gas) in Europe through investment in Cuadrilla Resources – Cuadrilla business plan proceeding on track; ready for announcements in calendar 2010 – Equipment (drilling and fraccing) available en
Slide 21: AJ Lucas Going Forward
AJ Lucas Going Forward For personal use only • Strategically well placed. Management has to digest rapid growth. Requires an investment in: – Good people – Good systems and procedures – Eff ti senior Effective i managementt – Risk management at all levels • Three dimensional business model starting
Slide 22: For personal use only
For personal use only This presentation has been compiled by AJ Lucas Group Limited from sources it believes to be reliable. However, it is not warranted as to its completeness or accuracy. This presentation is not an offer to sell or a solicitation to buy any securities. As it is prepared for gener