Slide 1: Full year results to 30 June 2018
Full year results to 30 June 2018 15 August 2018
Slide 2: Who we are, What we do, How we do it
Who we are What we do How we do it Diversified mining Provide mining and drilling Customers for life services company with services, mobile equipment Family sticks together over 5,000 people and supplies so our working in 10 countries customers can get more Chase the opportunity on some of the world
Slide 3: Financial performance
INESS Financial performance
Slide 4: FY18 Highlights
FY18 Proportionately consolidated1 sales revenue of $1.0 billion, up 21% Highlights Proportionately consolidated1 EBITDA of $204.5 million, up 33% Reported net profit of $61.1 million, up 96% Underlying2 profit after tax of $45.2 million, up 71% Basic earnings per share 17.4 cents per shar
Slide 5: FY18 Proportionately consolidated Profit & Loss
FY18 $million ASL AUMS 50% Total Change Proportionately Sales revenue 887.3 145.2 1,032.6 21.1% consolidated1 EBITDA 155.0 49.5 204.5 33.2% EBITDA margin 17.5% 34.1% 19.8% 179bps Profit & Loss EBIT 80.5 31.0 111.5 38.6% EBIT margin 9.1% 21.3% 10.8% 136bps Profit before tax 51.7 29.7 81.5 61.1%
Slide 6: Earnings Reconciliation
Earnings $million FY17 FY18 Change Reconciliation Statutory NPAT 31.2 61.1 95.7% Realised foreign exchange gain (0.7) (9.6) Unrealised foreign exchange gain (4.0) (1.6) Transaction costs - 0.6 Claim settlement benefit - (5.3) Underlying NPAT 26.5 45.2 70.8% Underlying EPS (cents) 8.5 12.8 50.6%
Slide 7: Contract Mining Services Africa
Contract Mining External Sales EBIT1 ($m) EBIT Margin Services Africa Revenue ($m) 510.9 404.7 49.3 47.0 12.2% 9.2% FY17 FY18 FY17 FY18 FY17 FY18 Revenue growth of 26.2% driven by new projects in Ghana, Mali, Burkina Faso and Senegal Reported margins impacted by the ramp-up and mobilisation of t
Slide 8: African Underground Mining Services
External Sales EBIT ($m) EBIT Margin African Revenue ($m) Underground 145.2 Mining Services 89.9 31.0 22.0% 21.3% (50%) share 19.8 FY17 FY18 FY17 FY18 FY17 FY18 African Underground Mining Services (AUMS) contributed equity accounted net profit after tax of $22.3 million (FY17: $13.1 million), an i
Slide 9: Drilling Services Australia
Drilling Services External Sales EBIT ($m) EBIT Margin Revenue ($m) Australia 215.5 214.9 23.7 19.1 11.0% 8.9% FY17 FY18 FY17 FY18 FY17 FY18 Revenues stable, margins improving following further cost and productivity efficiencies New work and contract rollovers at Wodgina for Mineral Resources, T
Slide 10: Equipment Services & Supplies
Equipment External Sales EBIT ($m) EBIT Margin Services & Revenue ($m) Supplies 17.3 147.7 11.7% 130.7 9.5 7.3% FY17 FY18 FY17 FY18 FY17 FY18 Revenue growth driven by improving market conditions for rental equipment and equipment maintenance service Margin improvement driven by demand for rental
Slide 11: All Other Segments
All Other Segments External Sales Revenue ($m) EBIT ($m) EBIT Margin 43.1% 13.8 6.0 11.7 -0.5 -4.5% FY17 FY18 FY17 FY18 FY17 FY18 Revenue growth driven by increased demand for oil and gas consumables in Well Control Solutions EBIT for the period includes a non-recurring $5.3 million claim settle
Slide 12: Cash Flow
Cash Flow $million FY17 FY18 Working capital changes Operating cash flows after interest and tax 94.6 52.6 $million since June 17 Net debt (repayments)/proceeds (0.7) 0.5 Receivables 62.7 Net Capital expenditure (145.6) (170.0) Inventories 23.8 Distributions from AUMS 22.9 13.6 Payables (22.4) Proce
Slide 13: Capital Expenditure
Capital $million FY17 FY18 Expenditure Contract Mining Services Africa (CMSA) (121.1) (129.2) Drilling Services Australia (DSA) (6.9) (29.9) Equipment Services & Supplies (ESS) (17.2) (12.0) Other (2.3) (2.2) Proceeds from asset sales 1.8 3.3 Capital expenditure net of asset sales (145.6) (170.0)
Slide 14: Balance Sheet
Balance Sheet $million FY17 FY18 Cash and cash equivalents 166.7 137.3 Receivables 167.7 230.5 Inventories 188.8 212.6 Property, plant and equipment 560.5 664.3 Other assets 103.7 123.1 Total assets 1,187.4 1,367.8 Payables 100.4 122.8 Borrowings 388.6 404.6 Employee obligations 41.8 39.5 Other liab
Slide 15: Group Debt and Funding
Group Debt Group Debt ($million) FY17 FY18 Maturity Profile ($million) and Funding Syndicated debt facility - - 450 1 400 US$300 million unsecured notes 390.5 405.0 350 300 Insurance premium funding and (1.9) (0.4) 250 prepaid borrowing costs 200 150 Total borrowings 388.6 404.6 100 Cash and cash eq
Slide 16: Safety and people
Safety and people
Slide 17: Safety and people
Safety and Total Recordable Injury Employees people Frequency Rate 6,000 20 5,000 15 4,000 3,000 10 2,000 5 1,000 0 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 0 13 14 14 15 15 16 16 17 17 18 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Ausdrill’s commitment to safety remains a Total employees increase
Slide 18: Outlook and strategy
TRIOUS Outlook and strategy
Slide 19: Current Environment Outlook
Current 1,900 1,700 Environment 1,500 1,300 Outlook 1,100 900 700 500 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Gold (US$) Gold (A$) Africa is presenting good organic growth opportunities in gold, bauxite, manganese and potash that will enable us to further expan
Slide 20: Our business
Our business
Slide 21: What we do
What we do Exploration Drilling Drilling, Blasting and Equipment Rental, Underground Load and Haul and Resource Grade Control Parts, and Services Mining Definition 21
Slide 22: Where we operate - Africa
Where we operate Africa Mali Burkina Faso Resolute Mining –Tabakoroni Gold – Open pit mining services SEMAFO – Boungou Hummingbird – Yanfolila Gold – Open pit mining services Gold – Open pit mining services B2Gold – Kiaka B2Gold – Fekola Gold – Exploration drilling Gold – Exploration drilling West A
Slide 23: Where we operate - Australia
Where we operate Australia Western Australia – Pilbara region Northern Territory BHPBIO – Various OM Manganese – Bootu Creek Exploration drilling Drill and blast Equipment hire Production drilling Process Minerals International (PMI) – Wodgina Queensland Drill and blast and grade control Consolidate
Slide 24: Revenue diversification
Revenue1 diversification Sales revenue by business activity Revenue by geography 1.3% 3.9% 3.7% 34.9% Australia 49.5% CMSA 14.3% Ghana AUMS 5.7% Mali DSA Burkina ESS 11.1% Tanzania 20.8% OTHER Senegal 11.4% 29.2% 14.1% Other Sales revenue by top customers Sales revenue by commodity AngloGold 14.0% 2
Slide 25: Our Leadership
Our Directors Name Title Leadership Ian Cochrane 1 Executive Chairman 2 Mark Norwell Managing Director and CEO Terrence Strapp Non-executive Director Mark Hine Non-executive Director 3 Robert Cole Non-executive Director Alexandra Atkins3 Non-executive Director Strati Gregoriadis General Counsel/Comp
Slide 26: Share information
Share Share Price Performance (rebased) ASL.ASX XJO.ASX information 155% 145% 135% 125% 115% 105% 95% 30 Jun 17 04 Aug 17 08 Sep 17 13 Oct 17 17 Nov 17 22 Dec 17 01 Feb 18 08 Mar 18 16 Apr 18 22 May 18 27 Jun 18 Capital Structure Substantial Shareholders1 Share price1 $1.81 Name Shareholding Fully p
Slide 27: Appendices
FOCUSED Appendices
Slide 28: Profit & Loss
$million FY17 FY18 % Change Profit & Loss Continuing operations Sales revenue 762.6 887.3 16.4% Materials (328.1) (367.5) (12.0%) Labour (241.6) (285.1) (18.0%) Rental and hire (13.8) (14.8) (7.3%) Share of associates profits 13.1 22.3 70.7% Other items (56.4) (64.8) (14.9%) EBITDA 135.8 177.4 30.
Slide 29: Balance Sheet
Balance Sheet $million FY17 FY18 Cash and cash equivalents 166.7 137.3 Current receivables 167.7 230.5 Inventories 188.8 212.6 Property, plant and equipment 560.5 664.3 Other assets 103.7 123.1 Total assets 1,187.4 1,367.8 Payables 100.4 122.8 Borrowings 388.6 404.6 Employee obligations 41.8 39.5 Ot
Slide 30: Cash Flow
$million FY17 FY18 Cash Flow Receipts from customers (inclusive of GST) 802.2 892.4 Payments to suppliers and employees (inclusive of GST) (670.1) (802.2) 132.1 90.2 Interest received 2.4 3.0 Interest and other costs of finance paid (29.1) (29.0) Income taxes received / (paid) (11.8) (12.3) Other 1.
Slide 31: AUMS Profit & Loss - 50% share
AUMS $million FY17 FY18 % Change Profit & Loss Sales revenue 89.9 145.2 61.6% - 50% share EBITDA 30.8 49.5 60.9% EBITDA margin 34.2% 34.1% (14bps) EBIT 19.8 31.0 56.5% EBIT margin 22.0% 21.3% (70bps) Profit/(loss) before tax 19.0 29.7 56.2% Profit before tax margin 21.2% 20.5% (71bps) Profit
Slide 32: AUMS Balance Sheet - 50% share
AUMS $million FY17 FY18 Balance Sheet Cash and cash equivalents 12.5 16.6 - 50% share Receivables 13.3 22.1 Inventories 22.1 25.1 Property, plant and equipment 28.6 45.3 Other assets 1.2 2.0 Total assets 77.7 111.1 Payables 11.4 17.1 Borrowings – external 5.3 20.8 Provisions 0.4 0.8 Other liabilitie
Slide 33: Disclaimer
Disclaimer IMPORTANT NOTICE AND DISCLAIMER This presentation and these materials (together the “Presentation”) have been This Presentation is not a disclosure document and should not be considered as investment advice. The information contained in this Presentation is for information purposes only a
Slide 34: Thank you
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