AsiaPhos Limited · SGX:5WV
AsiaPhos — FY2015 Earnings Presentation
48 slides from AsiaPhos's earnings presentation, Feb 19, 2016
Slide 1: Corporate Presentation & Investor / Analyst Briefing
Version: 19/Feb/2016 1.38 PM Corporate Presentation & Investor / Analyst Briefing February 2016 1
Slide 2: Disclaimer
DISCLAIMER This presentation should be read in conjunction with the: • Unaudited financial statements announcement of AsiaPhos Limited for the fourth quarter and financial year ended 31 December 2015, dated 15 Feb 2016 • Audited financial statements announcement of AsiaPhos Limited for the full year
Slide 3: Table of Contents
Table of Contents Executive Summary / Overview Industry trends and Prospects • IPO (7 Oct 2013) • Relative Commodity Price Performance (2014-2015) • Upstream Segment – Mining Output • China: Phosphate Rock Production statistics • Investment Merits • Selected articles relating to China Phosphate Mark
Slide 4: Key messages
Key messages 1. Strong growth momentum continues 2. Improving financial performance, and stronger operating cash flows. Declared first dividend in respect of FY2015. 3. Completion of LYR acquisition is expected to expand exploration and mineral resource base (and Improved Cash flows, from removal of
Slide 5: Extract from Press Release: FY2015 Results
Extract from Press Release: FY2015 Results Full Press Release (4 pages): http://www.asiaphos.com/pdf/Press%20Release%20AsiaPhos%20FY2015%20Final.pdf 5
Slide 6: Stronger operating cash flows
Stronger operating cash flows … Operating profit before working capital changes was $1.6 million for 4Q2015. Changes in working capital was $2.0 million. Payments for interest expense and corporate tax in 4Q2015 amounted to $0.2 million while the receipt of interest from convertible loan note was $1
Slide 7: Executive Summary / Overview
Executive Summary / Overview Business started in 1996; Possesses the rights to explore and mine phosphate (since 2002), a valuable and non-renewable natural resource in Sichuan Province, the PRC Adopts a vertically-integrated strategy by investing in downstream processing facilities which: • refine
Slide 8: << Return to [Table of Contents]
<< Return to [Table of Contents] 8
Slide 9: Upstream Segment – Mining Output
Upstream Segment – Mining Output Tonnes (‘000) +21% yoy 300 +77% yoy 250 274 200 113% yoy 226 150 100 99% yoy 128 50 30 60 0 FY2011 FY2012 FY2013 FY2014 FY2015 Successfully renewed the mining right for Mine 1 in January 2016 Applying to convert the exploration right for Mine 1 to a mining right,
Slide 10: Investment Merits
Investment Merits 1. Two working mines with rising output 30.3 million tonnes of measured and indicated phosphorite resources (Note 1) 2. Completion of LYR acquisition is expected to expand exploration and mineral resource base (and Improved Cash flows, from removal of Dashan Profit Share) 3. Redu
Slide 11: Our Business
Our Business << Return to [Table of Contents] 11
Slide 12: Our Vertically-Integrated Business Strategy
Our Vertically-Integrated Business Strategy Upon completion of our Rebuilding Programme, our vertically-integrated business model will involve the following: Mining Operations Phosphate Mining Rocks • Rights to explore and mine phosphate from our two mines located in Sichuan Province, the PRC Chemic
Slide 13: Location of Mines and Production Plants
Location of Mines and Production Plants The Group’s operations are located in the vicinity of Mianzhu City, Sichuan Province, the PRC Mine 2 Mine 1 The production facilities are located at Gongxing Industrial Zone, which is only 40 km from the Group’s mines Gongxing Industrial Zone Mianzhu Cit
Slide 14: Exploration and mining licences
Exploration and mining licences Mine 矿山1 (Cheng Vicinity of Mine 1 Mine 矿山2 (Shi Vicinity of Mine 2 Fengtai 峰泰 Qiang Yan城墙岩) （矿山1毗邻） Sun Xi石笋西) （矿山2毗邻） (refer Note参考 备注) Mining Rights采矿权 Exploration Mining Rights采 Exploration Exploration Rights探矿权 矿权 Rights探矿权 Rights探矿权 Current December 2015 to Apri
Slide 15: Independent Resource Estimate
Independent Resource Estimate (prepared in accordance with NI 43-101) Based on WGM Technical Report Tonnes Tonnes Tonnes (根据WGM的技术报告) (million) (million) (million) 百万吨 百万吨 百万吨 Measured and indicated resources Sum of Mine 1 and 2 Mine 1 Mine 2 (2 mines) 测定和指示资源 (2个矿山） （矿山1、2合计） （矿山1） （矿山2） mining rig
Slide 16: Independent Resource Estimate (continued)
Independent Resource Estimate (continued) (Extract from WGM Technical Report prepared in accordance with NI 43-101) Resources Mineral Gross Attributable to licence Net Attributable to Issuer Category Type Assumed at 100% Tonnes Grade Tonnes Grade Change from (millions) (P2O5 %) (millions) (P2O5 %) p
Slide 17: << Return to [Table of Contents]
<< Return to [Table of Contents] 17
Slide 18: Gongxing Production Facilities
Gongxing Production Facilities Rebuilding programme in Gongxing Industrial Zone, Sichuan Province, the PRC o Phase1 : New site of approximately 54,863 m2; land use rights obtained o Designed to withstand earthquakes of up to 7.0 on Richter scale Phase 1 completed : o Two new P4 furnaces, each
Slide 19: From Mine to Factory via Truck
Tramway system at Mines From Mine to Factory via Truck Weighbridge: (section of Mian Mao Highway) Rock / materials handling and zoning P4 factory / bulk storage P4 factory control centre STPP factory << Return to [Table of Contents] 19
Slide 20: From Mine to Factory via Truck (pre-Mian Mao Highway)
Tramway system at Mines From Mine to Factory via Truck Weighbridge: (pre-Mian Mao Highway) Rock / materials handling and zoning P4 factory / bulk storage P4 factory control centre STPP factory << Return to [Table of Contents] 20
Slide 21: << Return to [Table of Contents]
<< Return to [Table of Contents] 21
Slide 22: Competitive Strengths
Competitive Strengths << Return to [Table of Contents] 22
Slide 23: Competitive Strength: Higher Quality Phosphate Rocks
Competitive Strength: Higher Quality Phosphate Rocks AsiaPhos’ phosphate rocks have relatively high P₂O₅ content ≈ >29% o Higher value and demand o Phosphate rock deposits with P₂O₅ content of at least 30% constitute only 10 - 25% of the total phosphate rock deposits in the PRC o Most phosphate mi
Slide 24: Financial Highlights
Financial Highlights << Return to [Table of Contents] 24
Slide 25: Income Statement
Income Statement S$'000 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Revenue 2,775 4,522 4,897 8,458 23,822 44,505 Gross profit 402 2,374 2,101 2,550 4,684 8,487 Profit/(loss) before tax (1,206) 2,933 1,509 (2,249) 19,484 3,027 Profit/(loss) after tax (1,178) 2,933 1,225 (3,667) 19,498 2,209 Profit/(lo
Slide 26: Income Statement Highlights (FY2015)
Income Statement Highlights (FY2015) Group Fourth Quarter Ended 31 December Financial Year Ended 31 December 2015 2014 Change 2015 2014 Change Amounts shown are in Singapore Dollars $'000 $'000 % $'000 $'000 % Revenue 销售收入 16,839 11,125 51 44,505 23,822 87 Cost of sales 主营业务成本 (13,649) (8,540) 60 (3
Slide 27: Income Statement Trend (By Quarter)
Income Statement Trend (By Quarter) Amounts shown are 1Q2014 2Q2014 3Q2014 4Q2014 FY2014 1Q2015 2Q2015 3Q2015 4Q2015 FY2015 in Singapore Dollars $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Revenue 2,416 3,933 6,348 11,125 23,822 6,278 12,008 9,380 16,839 44,505 Upstream 2,046 2,739 1,945 5,996 1
Slide 28: Revenue Trend (by Segment)
Revenue Trend (by Segment) S$m S$m Upstream Revenue Downstream Revenue 20 28 18 26 24 16 22 14 20 18 12 16 14 10 8 18.0 12 26.5 10 6 12.7 8 4 6.5 6 4 11.1 2 1.5 3.7 2 0 3.0 1.2 1.9 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 FY2015 revenue model: Balanced mix of upstrea
Slide 29: Balance Sheet (Summary)
Balance Sheet (Summary) S$m As at 31 Dec 2015 As at 30 June 2015 As at 31 Dec 2014 (Unaudited) (Unaudited) (Audited) ASSETS Current Assets 13.0 23.1 18.8 Non-Current Assets 126.2 83.1 81.1 Total Assets 139.2 106.1 99.9 LIABILITIES Current Liabilities 20.6 20.7 15.8 Non-Current Liabilities 22.1 12.3
Slide 30: Balance Sheet
Balance Sheet Amounts shown are Group As at Company As at 31 December 31 December 31 December 31 December in S$’000 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Non-current assets Mine properties 72,329 436 - - Refer to the Announcement on Land use rights 4,845 1,751 - - Property, plant and equipment
Slide 31: Recent Developments
Recent Developments << Return to [Table of Contents] 31
Slide 32: Recent milestones and developments
2014/2015 milestones: • Acquisition of LY Resources (LYR), completed Aug 2015 • Receipt of exploration right renewal for Mine #2 Shi Sun Xi (June 2015) • Receipt of Land Use Rights for Phase2 Land (March 2015) • M&I phosphate resources estimate: Increased +31%, to 30.3 million tonnes (announced Nov
Slide 33: Acquisition of LY Resources (LYR)
• Independent valuers have indicated that the valuation of LYR has exceeded the valuation threshold of RMB250 million • Following the receipt of the final valuation report and satisfactory completion of other conditions precedent, the Group has completed the acquisition • • LYR acquisition would all
Slide 34: << Return to [Table of Contents] << Link to full Announcement (6 July)
<< Return to [Table of Contents] << Link to full Announcement (6 July) 34
Slide 35: Receipt of Land Use Rights for Phase 2 Land
• Announced: 12 March 2015 • The Company will provide updates on the progress of the Rebuilding Programme on the Phase 2 Land when there are material developments. << Return to [Table of Contents] 35
Slide 36: Reduction in Mining Surcharge
Reduction in Mining Surcharge • Local government reduced the mining surcharge from RMB30 per tonne to RMB8 per tonne • << Return to [Table of Contents] 36
Slide 37: Mian Mao Highway expected to improve access / haulage road
Mian Mao Highway expected to improve access / haulage road • Phased construction of the Mian Mao Highway (part of HK/Sichuan post- earthquake reconstruction cooperation programme) • Completion of Mian Mao Highway will increase accessibility between mines and production facilities • Increased reliabi
Slide 38: Recent Investor Relations activities / Roadshows
Recent Investor Relations activities / Roadshows Date Event 4 July 2015 Philip Capital POEMS 11 June 2015 SGX Sector Connect (Basic Materials) Showcase 21 May 2015 Wholesale Investor / ShareInvestor Capital Expo 13 March 2015 Wholesale Investor / SGX Small Cap showcase Average trading volume has inc
Slide 39: Industry trends and Prospects
Industry trends and Prospects << Return to [Table of Contents] 39
Slide 40: Relative Commodity Price Performance
Relative Commodity Price Performance Rock Phosphate vs Other Commodities - Price Comparison vs Jan 2014 (To Dec 2015) 40% Rock Phosphate (Morocco) 0% Crude Oil (petroleum) - Natural Gas - Coal, Australian thermal coal - Iron Ore - 20% 0% Rock Phosphate (Morocco (20%) benchmark) Thermal Coal (40%) Na
Slide 41: China: Phosphate Rock Production statistics
China: Phosphate Rock Production statistics YTD May 2015 Area 地区 % of total (tons) Total China 总计 52,637,477 100% Hubei 湖北省 18,466,086 35% Guizhou Province 贵州省 17,189,001 33% Yunnan 云南省 10,442,855 20% Sichuan 四川省 5,528,172 11% Asiaphos/SMNPC Anhui Province 安徽省 294,724 1% market share = approx. 2%-
Slide 42: About Phosphate
About Phosphate << Return to [Table of Contents] 42
Slide 43: Uses of Phosphate and Related Chemicals
Uses of Phosphate and Related Chemicals Fertilisers Oral hygiene products Beverages Fire retardants Pharmaceutical products LCD panels << Return to [Table of Contents] 43
Slide 44: Uses of Phosphate and Related Chemicals
Uses of Phosphate and Related Chemicals STPP is used in, or in the manufacturing process for: Food and beverage products Detergents SHMP is used in, or in the manufacturing process for: Paints Food Water treatment processing products << Return to [Table of Contents] 44
Slide 45: What is Phosphate?
What is Phosphate? Phosphate is a valuable and non-renewable natural resource Used to produce downstream phosphate-based chemical products, such as ： o yellow phosphorus (“P4”) o thermal phosphoric acid o sodium hexametaphosphate (“SHMP”) o sodium tripolyphosphate (“STPP”) China is the world’s
Slide 46: Key messages
Key messages 1. Strong growth momentum continues 2. Improving financial performance, and stronger operating cash flows. Declared first dividend in respect of FY2015. 3. Completion of LYR acquisition is expected to expand exploration and mineral resource base (and Improved Cash flows, from removal of
Slide 47: AsiaPhos Limited
AsiaPhos Limited 10 Kallang Avenue Aperia #05-11 Singapore 339510 Telephone: +65 6292 3119 Website: www.asiaphos.com << Return to [Table of Contents] 47
Slide 48: << Return to [Table of Contents]
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