Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — Investor Presentation (October 2012)
22 slides from Alliance Aviation Services's investor presentation, Oct 31, 2012
Slide 1: Business Update and Fully Underwritten Placement
For personal use only Business Update and Fully Underwritten Placement Scott McMillan, Managing Director Jeff Childs, Chief Financial Officer 31 October 2012 0
Slide 2: Important notice and disclaimer
Important notice and disclaimer Important notices This presentation (“Presentation”) has been prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance” or “Company”). Summary information For personal use only This Presentation contains summary information about Alliance and its ac
Slide 3: Important notice and disclaimer (cont'd)
Important notice and disclaimer (cont’d) Investment risk An investment in Alliance shares is subject to investment and other known and unknown risks, some of which are beyond the control of Alliance. Alliance does not guarantee any particular rate of return or the performance of Alliance. For person
Slide 4: Executive summary
For personal use only Executive summary Alliance continues to deliver on operational performance Business update − Continued contract wins / roll-overs in the last 6 months − Fleet expansion to service contract wins Alliance has recently entered into arrangements for the acquisition of up to fiv
Slide 5: Business update
Business update New FIFO contract with Rio Tinto for flights from Perth to Argyle commenced in For personal use only April 2012 Successful in securing a five year contract with Newmont to service The Granites gold mine in Northern Territory in July 2012 − Flights to commence in November 2012 and
Slide 6: Acquisition of additional aircraft
Acquisition of additional aircraft Opportunity to acquire additional Fokker aircraft, which are ideally suited to FIFO operations in Australia For personal use only The long-range capability of the Fokker 70LR delivers important benefits to Opportunity to secure mining companies and a significan
Slide 7: Equity raising overview
Equity raising overview Approximately $25 million Placement Placement size Approximately 13.5 million new Alliance shares (“New Shares”) representing 14.8% For personal use only of current issued capital Fixed price of $1.85 per New Share representing: Issue price − 7.5% discount to pre-announ
Slide 8: Debt refinancing
For personal use only Debt refinancing Alliance has received credit approved term sheets for a new 3 year club banking facility The new facilities will provide: − Greater flexibility through a revolving term facility − A simplified debt structure – fewer facilities than existing − Enhanced futur
Slide 9: Outlook
Outlook Recent commentary from companies in the Australian mining and energy sector suggests a more rational approach to operating costs and capital expenditure going forward, driven by the strong For personal use only Australian dollar and softening in commodity prices Alliance has identified a
Slide 10: Company overview
For personal use only 9 Company overview
Slide 11: This is Alliance
This is Alliance Alliance is a leading mining services company Financial summary providing essential FIFO transportation to the For personal use only ($ in millions) FY11 PF FY12 PF mining and energy sectors Revenue 127.6 184.2 Owns a fleet of 26 aircraft across a national footprint EBITDA 36.3 49
Slide 12: Investment highlights
Investment highlights Differentiates Alliance from a typical Regular Public Transport (“RPT”) operator Robust contracting model underpins earnings visibility Contracts are typically priced on a “per round trip” basis and generally incorporate cost pass-through provisions For personal use only
Slide 13: Robust contracting model underpins earnings visibility
Robust contracting model underpins earnings visibility For personal use only Alliance’s FIFO contracts are generally priced on a “per round trip” basis, agreed between Alliance and each customer Contracts typically incorporate cost pass-through provisions, with monthly, quarterly, six monthly or
Slide 14: Secure earnings derived from long-term customers
Secure earnings derived from long-term customers As at 30 June 2012, the average length of Alliance’s customer relationships was 5.7 years and the average remaining term of existing contracts was 3.5 years (both weighted according to FY12 FIFO revenue) For personal use only Customer relationship a
Slide 15: Growing national footprint
Growing national footprint Alliance route map and key mining and energy regions and projects Darwin Cairns National footprint provides For personal use only DARWIN GROOTE EYLANDT Base being Offices (engineering the ability to be responsive established support and crew) and flexible ARGYLE Li
Slide 16: Exposure to later stage mine process with blue chip customers
Exposure to later stage mine process with blue chip customers For personal use only FY12 FIFO revenue – by mine phase 91% 9% Nil Nil Exploration Construction Production Closure BHP Incitec Pivot Newcrest Oz Minerals Newmont Rio Tinto MMG Source: Company analysis, company filings. 15
Slide 17: Diversified end commodity exposure
Diversified end commodity exposure Contracted FIFO services to customers with operations across a range of commodities – Revenues are diversified across customers and major mining commodities For personal use only – No single commodity represented more than 22% of Alliance’s revenue in FY12 – Subs
Slide 18: Services projects with significant mine life remaining
Services projects with significant mine life remaining Predominantly blue chip customer base, with majority of contracts servicing mines with over 10 years life remaining For personal use only – Mine life exposure provides potential for future contract extensions – 44% of Alliance’s FIFO contracts
Slide 19: Attractive financial performance
Attractive financial performance Strong track record of earnings growth and cash flow generation Resilient earnings through the cycle with a significant portion subject to long term contract For personal use only – Typical contract terms between three and ten years Sustainable margins and robu
Slide 20: Fleet development strategy
Fleet development strategy Aircraft key to meet clients’ requirements Growth of Alliance fleet For personal use only – Preference for jets over turbo-props 5 – Suited to Australian climatic conditions 2 2 2 5 6 6 – Range minimises requirement for stops to re-fuel 5 Optimise capital intensity thr
Slide 21: Foreign selling restrictions
Foreign selling restrictions This Presentation does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Hong Kong F
Slide 22: Foreign selling restrictions (cont'd)
Foreign selling restrictions (cont’d) Singapore This Presentation and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this Presentation and any other document or ma
Alliance Aviation Services — Investor Presentation (October 2012) on 6ix