Thalassa Holdings Ltd · LSE:THAL

Thalassa — Investor Presentation (September 2014)

36 slides from Thalassa's investor presentation, September 2014

  1. Slide 1: Investor Presentation September 2014

    INVESTOR PRESENTATION September 2014 Exploration and Beyond… working to increase the value and output of active reservoirs

  2. Slide 2: Disclaimer

    Disclaimer • The content of this presenta6on has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on this presenta6on for the purposes of engaging in investment ac6vity may expose an individual to a significant risk of losi

  3. Slide 3: Introduction

    Introduc:on Thalassa Holdings Ltd Autonomous WGP Group Robo6cs • Thalassa Holdings Ltd (“Thalassa”) is a holding company, registered in the BVI and listed on the London AIM Market, with two opera6ng subsidiaries, WGP Group Ltd and Autonomous Robo6cs Ltd. • WGP is a marine seismic services company, w

  4. Slide 4: 1H 2014 Financial Highlights

    1H 2014 Financial Highlights • Revenue from core seismic opera6ons up 31% to $9.3m (1H 2013: $7.1m) • Manufacturing Revenue $0m versus $4.5m in 1H 2013 following conclusion of one-­‐off Statoil manufacturing contract • Group Revenue $9.3m versus $11.6 in 1H 2013 Revenue from Seismic Operations $35.0

  5. Slide 5: 1H 2014 Financial Highlights

    1H 2014 Financial Highlights • Gross Profit from Seismic Opera6ons up 53.8% to $4.0m from $2.6m in 1H 2013 • Group Gross Profit up 2.6% to $4.0m from $3.9m in 1H 2013 • Group Gross Margin increased by 30.4% to 43.7% from 33.5% in 1H 2013 due to change in revenue mix, improved equipment u6lisa6on and i

  6. Slide 6: 1H 2014 Financial Highlights

    1H 2014 Financial Highlights • Adjusted Opera6ng Profit* $1.2m versus $1.3m in 1H 2013 • Adjusted Opera6ng Margin 13.1% versus 11.3% in 1H 2013 • Group Opera6ng Profit $0.7m versus $1.3m in 1H 2013 • Group Opera6ng Margin 7.9% versus 11.3% in 1H 2013 * excluding R&D costs at Autonomous Robo6cs of $0.5

  7. Slide 7: 1H 2014 Financial Highlights

    1H 2014 Financial Highlights • Adjusted Group Profit aner tax * $1.2m versus $1.0m in 1H 2013 • Adjusted Group EPS (diluted) $0.05 (£0.03) versus $0.07 (£0.05) in 1H 2013 • Group Profit aner tax $0.7m versus $1.0m in 1H 2013 • Group EPS (diluted) $0.03 (£0.02) versus $0.07 (£0.05) in 1H 2013 * excludi

  8. Slide 8: 1H 2014 Financial Highlights

    1H 2014 Financial Highlights Net Assets $m's $60.0 $50.0 $40.0 • Book value per share up 80.2% to $30.0 $2.09 (£1.23) versus $1.17 (£0.76) $20.0 $10.0 in 1H13 $0.0 2010 2011 2012 2013 1H14 • Debt $nil (2013: $nil). Net Cash $m's $35.0 • Cash $21.2m (1H 2013: $16.8m). $30.0 $25.0 $20.0 $15.0 $10.0 $5

  9. Slide 9: 1H 2014 Financial Highlights – Balance Sheet Key Figures

    1H 2014 Financial Highlights – Balance Sheet Key Figures 1H14 FY13 Mul6-­‐Client Library 0.5 -­‐ Other Intangible Assets 3.3 3.2 Tangible Assets 13.6 8.2 Total non-­‐current assets 17.4 11.4 Inventory 0.9 0.7 Loans & receivables 7.3 1.9 Receivables 11.2 7.1 Cash 21.2 32.2 Total Current Assets 40.6 4

  10. Slide 10: 1H 2014 Operational Highlights - WGP

    1H 2014 Opera:onal Highlights -­‐ WGP • Mul6-­‐client contract with TGS commenced May 2014 to jointly acquire and own mul6-­‐client high resolu6on 3D (HR3D) seismic data using the newly assembled P-­‐Cable system and mini-­‐PMSSTM • Contract with SAExplora6on, Inc. (“SAE”) on behalf of BP Alaska to

  11. Slide 11: 1H 2014 Operational Highlights – Autonomous Robotics

    1H 2014 Opera:onal Highlights – Autonomous Robo:cs • Business acquisi6on completed November 2013 • A change of name from GO Science to Autonomous Robo6cs Limited (“ARL”) reflec6ng the market sector and exper6se/ambi6ons of the company • Implementa6on of detailed design and manufacture plan of the mob

  12. Slide 12: Investment in the Future

    Investment in the Future The Group has increased investment in Opera:ng Equipment, IT (a new ERP system), People and R&D: • Equipment: Refurbishment and upgrade of exis6ng equipment, purchase of new equipment including a mini-­‐PMSSTM and high resolu6on 3D P-­‐Cable system deployed on the mul6-­‐cli

  13. Slide 13: Outlook

    Outlook • Comple6on of an addi6onal 2 seismic surveys for Statoil as part of R&D trials to test third party sensors • Deployment of D-­‐PMSSTM over Grane in Sep 14 following which the D-­‐ PMSSTM will be deployed over the Snorre field • An6cipated extension to Mul6-­‐Client survey in the Barents Sea

  14. Slide 14: Summary

    Summary • Core seismic revenues con6nue to grow strongly • Contracted deployment in 2H 2014 on behalf of Russia’s SMG increasingly unlikely • Pipeline of order enquiry and tenders submiTed increased to $175m, an increase of 23% over $142m at 31 Dec 2013. Several of these tenders expected to impact 2

  15. Slide 15: Appendices

    Appendices • Background • Corporate Structure • Key Management • What WGP does? • What is seismic data acquisi6on? • Portable Modular Seismic Source (PMSS™) • WGP’s Compe66ve Advantages • Seismic Data Acquisi6on Market • Significant Projects • Strategy • Industry Landscape • Key Sta6s6cs • Historical

  16. Slide 16: Background

    Background Year Milestone 1994 • WGP business incorporated 2003 • WGP commences development work with BP on LoFS • Thalassa founded (2007) & admiTed to AIM (2008) (THAL.L & THAL:LN) raising gross proceeds of $8.5m 2007-­‐08 • First PMSS™ equipment acquired and assembled for $5.8m 2010 • Group receiv

  17. Slide 17: Corporate Structure

    Corporate Structure Thalassa Holdings Ltd (Holding Company) 100% 100% WGP Group Ltd GO Science Group Ltd 100% 100% 100% 100% 50% 100% WGP WGP WGP Autonomous WGP Energy Explora:on Ltd Professional WGP Survey Technical Robo:cs Services Ltd (Acquired on 16 Nov Services Ltd Ltd 2011) Services Ltd Limite

  18. Slide 18: Key Management

    Key Management Duncan Soukup, Chairman: Mr Soukup has over 25 years of investment experience. Having worked in investment banking for 10 years (1984-­‐1994), laTerly with Bear Stearns as managing director in charge of the company's non-­‐US equity business, Mr Soukup set up his own investment manage

  19. Slide 19: Key Management: Executive & Non-Executive Directors

    Key Management: ExecuCve & Non-­‐ExecuCve Directors Francis Smulders, Execu:ve Director: Mr Smulders, brings 22 years of experience in a wide range of industries from a strategic consul6ng perspec6ve, including Oil & Gas, FMCG and financial services. He started his career with Allseas, a supplier of

  20. Slide 20: What WGP Does?

    What WGP Does? • WGP provides bespoke seismic solu6ons to explore for and enhance hydrocarbon recovery • Areas of specialist ac6vity: • 4D Life of Field Seismic (exis6ng fields) • Marine 2D Towed Streamer & Seabed Seismic (explora6on) • High Resolu6on 3D Towed Streamer (explora6on, shallow target) •

  21. Slide 21: What is Seismic Data Acquisition?

    What is Seismic Data Acquisi:on? Towed Streamer 2D/3D Seismic Ocean Boaom 4D Seismic Fibre op6c to Shore • Cable towed behind vessel along with a single source Seabed seismic receivers Cross -­‐ reservoir Seismic Data • Used in fron6er explora6on areas • Used for reservoir monitoring • To extend the

  22. Slide 22: Portable Modular Seismic Source (PMSS™)

    Portable Modular Seismic Source (PMSS™) • Provides the seismic source -­‐ the “seismic boom” • Comprises modular units designed: – for temporary use on plazorm supply vessels – to be transportable for mobilisa6on worldwide • Able to provide bespoke solu6ons, including layout, design, PMSSTM installa

  23. Slide 23: WGP's Competitive Advantages

    WGP’s Compe::ve Advantages • Portable modular seismic source system (PMSSTM) • Provides bespoke solu6ons to E&P majors • Over 10 years experience in LoFS 4D opera6ons • High end precision engineering • Deployment capability and experience in challenging loca6ons 23

  24. Slide 24: Seismic Data Acquisition Market

    Seismic Data Acquisi:on Market • Market es6mated to be growing at 10-­‐15% per annum • Discovering new fields and enhancing recovery becoming increasingly important • Statoil looking to enhance underwater field recovery to c60% compared to an industry average of 35% • 2D/3D Towed Streamer solu6on enab

  25. Slide 25: Significant Projects - Statoil

    Significant Projects -­‐ Statoil Contract 1 • To provide seismic acquisi6on services over the Snorre and Grane oil fields in the Norwegian sector of the North Sea. • Ini6al fixed term of 5 years with op6on to extend by 2 further terms of 2 years each. • Total contract value, excluding any extensions, i

  26. Slide 26: Current & Historical Significant Projects

    Current & Historical Significant Projects BP (North Sea) SMG (Arc:c) • Long term WGP • Installa6on of PMSS™ and rela6onship with BP da6ng streamer on board ice back to 2003 breaker vessel to conduct • 3.5 year (7 survey) contract 2D survey in Russian Arc6c commenced 2010 • Most recent contract • Prov

  27. Slide 27: Strategy

    Strategy • Organic Growth – New marine seismic contracts – Further reduce LoFS and seabed explora6on costs – Focus on poten6al clients with major proven reserves where significant capital and opera6onal expenditure is expected (LoFS) – Retain key staff members and hire new talent – Acquire further ope

  28. Slide 28: Industry Landscape

    Industry Landscape Current Poten6al Source: WGP 28

  29. Slide 29: Key Statistics

    Key Sta:s:cs • Market AIM • Ticker symbol Reuters: THAL.L Bloomberg: THAL:LN • Number of Shares in issue -­‐ Basic 25,067,522 • Number of Shares in issue -­‐ Diluted 25,397,522 • Number of Shares held in treasury nil • Share Price – 52 week range £3.20 -­‐ £1.67 • Current Share Price £1.83 • Market

  30. Slide 30: Share Price - pence

    Share Price -­‐ pence THAL share price – 5 year chart 30

  31. Slide 31: Financials - P&L ($m's)

    Financials -­‐ P&L ($m’s) 1H14 FY13 1H13 FY12 1H12 FY11 1H11 FY10 1H10 Revenue 9.3 30.6 11.6 14.0 4.0 2.4 0.5 0.4 0.0 Cost of Sales -­‐5.2 -­‐21.3 -­‐7.7 -­‐9.1 -­‐2.1 0.0 -­‐0.0 -­‐0.1 -­‐0.0 Gross Profit 4.0 9.3 3.9 4.9 1.9 2.5 0.4 0.3 -­‐0.0 Gross Margin 43.7% 30.4% 33.6% 35.3% 46.9% 101.3% 93.8%

  32. Slide 32: Financials - Balance Sheet ($m's)

    Financials -­‐ Balance Sheet ($m’s) 1H14 FY13 1H13 FY12 1H12 FY11 1H11 FY10 1H10 Goodwill 0.4 0.4 0.4 0.4 0.4 0.4 -­‐ -­‐ Intellectual Property 2.9 2.9 -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ Property, plant & equipment 13.4 8.2 7.6 7.9 7.9 7.0 7.7 7.7 5.8 Other 0.8 0.0 0.0 0.0 0.0 -­‐ 1.2 Total non-­‐current a

  33. Slide 33: Financials – Cash Flow ($m's)

    Financials – Cash Flow ($m’s) 1H14 FY13 FY12 FY11 FY10 Net cash flow from opera:ng ac:vi:es -­‐0.2 -­‐0.9 1.9 0.2 0.5 Cash flow from inves:ng ac:vi:es Acquisi6on of IP -­‐ -­‐2.9 -­‐ -­‐ -­‐ Loans -­‐4.9 -­‐1.9 -­‐ -­‐ -­‐ Purchase of equipment -­‐5.7 -­‐0.9 -­‐1.4 -­‐ -­‐ Purchase of ERP system -­‐0.

  34. Slide 34: Financial Ratios

    Financial Ra:os 1H14 FY13 1H13 FY12 1H12 FY11 1H11 FY10 No. of shares in issue – basic 25.1 23.9 16.4 11.9 9.7 9.7 7.2 7.2 (m’s) No. of shares in issue – diluted 25.4 24.3 16.5 12.1 11.9 11.9 9.6 9.6 (m’s) Weighted average no. of shares 25.0 16.4 13.7 9.9 7.5 7.5 7.2 6.8 – basic (m’s) EPS – Basic (U

  35. Slide 35: Financial Ratios

    Financial Ra:os Investment Valua:on Ra:os 1H14 FY13 FY12 FY11 FY10 P/Sls 8.02x 2.6x 2.00x 3.40x 19.42x P/EBITDA 59.1x 15.8x 13.1x 6.7x n/a P/E 101.5x 18.2x 48.7x 67.9x n/a P/BV 1.42x 1.5x 2.7x 0.9x 0.8x EV/BV 1.01x 1.6x 2.5x 0.7x 1.1x Profitability Ra:os ROE 1.5% 18.4% 11.7% 4.0% 7.3% ROA 1.5% 18.4%

  36. Slide 36: Websites

    www.thalassaholdingsltd.com www.wgp-­‐group.com www.autonomousrobo6csltd.com 36

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