Adf Group Inc. · TSX:DRX
Adf — Non-Deal Roadshow (October 2009)
22 slides from Adf's roadshow presentation, October 2009
Slide 1: Roadshow Presentation
ROADSHOW PRESENTATION Presented by Jean Paschini, Chairman of the Board and Chief Executive Officer Louis Potvin, CA, MBA, Chief Financial Officer October 2009
Slide 2: Disclaimer
ADF GROUP INC. – ROADSHOW PRESENTATION Disclaimer Management of ADF Group Inc. wishes to inform you that this document contains forward- looking statements within the meaning of applicable securities laws, in which management’s expectation regarding the future performance of ADF Group may be discuss
Slide 3: A North American Leader in the Structural Steel Industry
ADF GROUP INC. A North American Leader in the Structural Steel Industry — Over 50 years of experience in the steel industry — Specialized in the design & engineering of connections, the fabrication and the installation of: • Highly Engineered Steel Superstructures • Heavy and Complex Steel Built-Up
Slide 4: Strong Foothold in North America
STRONG FOOTHOLD IN NORTH AMERICA ORDER BACKLOG Commercial Buildings Industrial Complexes • Highly Complex, High Profile and Ambitious Projects Public Infrastructures $77M contract in the public infrastructures sector in North America (not shown here) Encana Tower (The Bow Project) Calgary, Alberta F
Slide 5: Key Activities
KEY ACTIVITIES ORGANIZED INTO FOUR CATEGORIES Supply of steel Design & Engineering of Connections Fabrication Installation Contract Value Public Infrastructure Project in North America 49% 49% 4% 4% 47% 47% $77M Freedom Tower (102-story skyscraper) 100% 100% $47M and its 400-foot antenna New World S
Slide 6: Order Backlog
ORDER BACKLOG VALUE-ADDED FABRICATION ACTIVITIES • Gained Vast Experience Through Successful Completion of Hundreds of Projects — Most of the order backlog deriving from our fabrication segment, ADF’s primary field of expertise, which yields better profit margins and carries lower risk. — Contracts
Slide 7: Value-Added Fabrication Activities
VALUE-ADDED FABRICATION ACTIVITIES HIGHER BARRIERS TO ENTRY AND FEWER COMPETITORS • Experienced Engineering and Production Teams ADF Group has become one of the most competent, most trusted, and respected companies where complex and large-scale structural steel projects are involved. — Key elements
Slide 8: Resources and Capabilities Under One Roof
RESOURCES AND CAPABILITIES UNDER ONE ROOF STATE-OF-THE-ART FACILITIES • Continually Increasing Competitiveness and Productivity ADF’s 630,000-square-foot fabrication complex, equipped with state-of-the-art machinery and the latest industry technologies, is today one of the largest and most avant-gar
Slide 9: Resources and Capabilities Under One Roof
RESOURCES AND CAPABILITIES UNDER ONE ROOF STATE-OF-THE-ART FACILITIES Based on its wide knowledge of the industry and years of experience, ADF’s plant layout has been engineered to ensure an optimal fabrication flow and fitted to undertake all types of complex steel structure projects. Raw Material
Slide 10: Stock Information & Ownership
STOCK INFORMATION & OWNERSHIP (DRX) STOCK INFORMATION (AS AT SEPTEMBER 8, 2009) 36,817,276 Total Outstanding Shares (FD) 22,474,169 Subordinate Voting (1 vote/share) 14,343,107 Multiple Voting (10 votes/share) 1,029,500 Shares redeemed to date under the NCIB program implemented in April 2009 (averag
Slide 11: Stock Information
STOCK INFORMATION (DRX) STOCK PRICE • Street Expectation (As as September 10, 2009) Target Price (Average $3.59) Blackmont Capital $3.00 Industrial Alliance $2.30 Canaccord_Adams $3.25 Financial National Bank $4.50 GMP Securities $4.00 Salman Partners $4.50 • Stock Performance – Quarterly (As at Jul
Slide 12: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS KEY POINTS FOR THE SIX-MONTH PERIOD (ENDED JULY 31, 2009) • Increased order backlog with $94M in new contracts in North America • Announced new investment program of $6M • Sustained EBITDA margin and gross margin exceeding the industry average • Decrease in results impact
Slide 13: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS KEY POINTS FOR THE SIX-MONTH PERIOD (ENDED JULY 31, 2009) • Financial Performance Robust platform for near and long term — Maintained healthy and solid financial position: Liquidity of $21.5M Cash surplus of $14.1M over total debt — Continually increasing flexibility to p
Slide 14: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS KEY POINTS FOR THE SIX-MONTH PERIOD (ENDED JULY 31, 2009) • Financial Performance Jul. Jul. 2009 2009 Jul. Jul. 2008 2008 Jan. Jan. 2009 2009 ($ thousand, except per-share amounts) 6 months 6 months 12 months — Net Earnings, Adjusted 7,547 11,239 24,549 — Changes in Non-C
Slide 15: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS KEY POINTS FOR THE SIX-MONTH PERIOD (ENDED JULY 31, 2009) • Key Financial Indicators Jul. Jul. 2009 2009 Jul. Jul. 2008 2008 — Return on Shareholders’ Equity 14.1% 12.4% * — Current Ratio 3.25:1 2.10:1 — Net Acquisition of Fixed Assets $0.7M $7.5M — Book Value Per Share $
Slide 16: Development Strategy
DEVELOPMENT STRATEGY LOWER RISKS, BETTER MARGINS BUSINESS MODEL • Contract Selection — Continue to target highly complex, high valued-added, large-scale and fast-track projects commanding better margins. — Based on profitability potential and complying with ADF’s risk selection criteria: Minimizing
Slide 17: Development Strategy
DEVELOPMENT STRATEGY RESOURCES AND CAPABILITIES UNDER ONE ROOF • Advantages of Operating a Mega Fabrication Complex — Unique management structure. — Pooled knowledge, expertise and experience, combined with state-of- the-art facilities, making it difficult to replicate ADF’s complex rapidly. — Consi
Slide 18: Development Strategy: Growth Opportunities
DEVELOPMENT STRATEGY GROWTH OPPORTUNITIES • Maintaining a Flexible and Liquid Capital Structure in Order to be Able to Seize New Opportunities When They Arise With a strong balance sheet and enough financing capacity with which to fund its growth, ADF is on the look-out to strategically and selectiv
Slide 19: Development Strategy: Growth Opportunities
DEVELOPMENT STRATEGY GROWTH OPPORTUNITIES — Through Organic Growth ADF’s fabrication complex and capacity can easily and rapidly be doubled. Cost of each new addition is currently estimated between $5M and $7M. Date Total Plant Size Fabrication Capacity January 2009 630,000 ft2 100,000 tons/year Pot
Slide 20: Outlook
OUTLOOK DEMANDS FOR COMPLEX AND LARGE-SCALE STEEL STRUCTURE PROJECTS • Demands remain fairly active in regard to calls for tender: — Large-scale industrial complexes (smelters, petrochemical plants); — Commercial buildings (high-rises); and — Transport infrastructures. Projects worth Targeted and/or
Slide 21: Outlook
OUTLOOK OBJECTIVES FOR THE SECOND HALF OF FISCAL 2010 • Operations — Complete the new $6M investment program announced in July 2009 — Comply with the nuclear system requirements in effect in America • Financials — Continue strengthening the balance sheet — Focus on the cash flow generated by each co
Slide 22: Contact Details
300 Henry-Bessemer Street Terrebonne, Quebec J6Y 1T3 Tel.: 800 263-7560 Fax: 450 965-8558 infos@adfgroup.com Ticker symbol: DRX Public Relations kathleen.ryffranck@adfgroup.com www.adfgroup.com