Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation Year Ended 30 June 2014 Released 14 August 2014 Scott McMillan, Managing Director Matt Dyer, Chief Financial Officer Lee Schofield, Chief Operating Officer
Slide 2: Key Themes
Key Themes For personal use only • Our revenue mix has changed with over 90% of revenue now long-term contracted FIFO – our core business. We are an essential service to the mining and resources sector and deal almost exclusively with major players for projects which are in production; • New contrac
Slide 3: Maintained profitability despite investing in the future
Maintained profitability despite investing in the future For personal use only • 2014 was dominated by: – A decline in wet lease and ad-hoc flying income; – Electing to maintain a portion of overheads to deliver awarded contracts, this impacted the EBITDA and NPAT; and – Investing in the existing F7
Slide 4: Revenue softened but contract income to firm for FY 2015
Revenue softened but contact income to firm for FY 2015 For personal use only • Slowdown in ad hoc charter revenue from September 2013; • Wet lease income reduced significantly, only a small amount is forecast in 2015; • Slight reduction in flights for current contracts which reflects market conditi
Slide 5: Full Year Results
For personal use only Full Year Results Year Ended 30 June 2014
Slide 6: Underlying Income Statement Summary
Underlying Income Statement Summary For personal use only Profit & loss statement Key observations % • Revenue decline is predominately due to 2013/14 2012/13 pcp wet lease income; ($ in millions) Actual Actual change Revenue • The contracted FIFO revenue decline is a FIFO 167.4 170.9 (2%) result of
Slide 7: Summary Balance Sheet
Summary Balance Sheet Balance Sheet Key observations For personal use only ($ in millions) 2013/14 2012/13 Cash 0.2 1.2 • Continued focus on maintaining a Receivables 23.9 29.1 conservative gearing and no “off Inventory 24.4 8.2 Total current assets 48.5 38.6 balance sheet” debt; PP&E 218.2 210.6 •
Slide 8: Cash flow Statement
Cash flow Statement Cash flow statement Key Observations For personal use only 2014 2013 #039;000 #039;000 Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) 232,706 246,126 • Cash generation a priority for Board Payments to suppliers (inclusive of goods and
Slide 9: Operational efficiency measures are expected to benefit earnings in FY2015
Operational efficiency measures are expected to benefit earnings in FY2015 For personal use only 2013/14 2012/13 Variance Average aircraft in service 27 25.1 1.9 Contract and Adhoc Flight Hours 22,812 25,113 (9.2%) Wet Lease Flight Hours 2,351 6,827 (65.6%) Total Flights 19,294 24,943 (22.6%) Averag
Slide 10: Major Contracts by Commodity
Major Contracts by Commodity For personal use only Major Commodity by 12 Major Contract 4.7% 5.6% 13.3% Copper 6.0% Copper/Gold Nickel 6.9% Zinc/Lead Silver 7.2% 26.9% Gold Magnetite Iron Ore 8.4% Coal Seam Manganese 9.5% 11.5% • Broad exposure to a range of commodities across a range of contracts 1
Slide 11: Total Revenue by Customer
Total Revenue by Customer For personal use only • Broad exposure to a diverse range of customers 11
Slide 12: Flight Hours impact on Total Revenue
Flight Hours impact on Total Revenue For personal use only • Demonstrates the ‘transitional’ and ‘unsettled’ nature of the 2014 year • Alliance has started to return to sustainable revenue numbers • July 2013 was a record month for ad hoc charter revenue, July 2014 has seen an improvement with long
Slide 13: Customer Relationships
Customer Relationships For personal use only FIFO Contract Revenue Term Contract 1 Contract 2 Contract 3 Top 15 Gross Revenue Contracts Contract 4 Contract 5 Contract 6 Contract 7 Contract 8 Contract 9 Contract 10 Contract 11 Contract 12 Contract 13 Contract 14 June 2009 June 2010 June 2011 June 201
Slide 14: Operations update
For personal use only Operations update
Slide 15: Alliance vs. Other Major and Regional Airlines
Alliance vs. Other Major and Regional Airlines Key attributes Alliance Airlines Typical Major or Regional Airlines For personal use only Commodity production volumes and capital Highly cyclical, subject to general business and investment growth consumer confidence activity Revenue drivers Able
Slide 16: Extensive National Footprint
Extensive National Footprint For personal use only CAIRNS DARWIN • Offices (engineering support • Base established and crew) • Line maintenance PERTH TOWNSVILLE • Alliance T2 facility • Offices and FIFO Lounge • Hangar • Maintenance facility plus • Line maintenance large spares inventory • Major cre
Slide 17: Leader in experience, safety and compliance
Leader in experience, safety and compliance For personal use only • Australia’s most experienced and resourced F100/70 operator. • Maintained BARS Gold Recognition Status • Most experienced F100/70 pilots and engineers in Australia. • World leader in Fokker performance engineering. • Fully compliant
Slide 18: Recent contract wins
For personal use only Recent contract wins
Slide 19: New contract wins and extensions 2014
New contract wins and extensions 2014 For personal use only Date Customer Outcome Contract details May BHP Billiton Nickel West 3-year extension • Perth / Mount Keith and Leinster May BHP Billiton Iron Ore Contract win • Perth / Coondewanna and Barimunya November Serco (QCLNG Project) Contract win •
Slide 20: Outlook
For personal use only Outlook
Slide 21: Outlook
Outlook • Return to sustainable revenue growth, increased long term contract For personal use only income as a % of total revenue • Strategy of concentrating exposure to major players with long term contracts in production • Major contract wins in FY14 expected to drive significant FIFO revenue grow
Slide 22: Guidance
Guidance For personal use only • Key focus of FY14 was about building the platform to deliver on the revenue growth in FY15 • With that foundation now in place, Alliance is in a position to generate FY15 NPAT comparable with FY13 • Alliance also expects a significant improvement in cash flow over an
Slide 23: Appendices
For personal use only Appendices
Slide 24: Disclaimer
Disclaimer For personal use only Reliance on third party information This presentation was prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance”). This presentation may contain information that has been derived from publicly available sources that have not been independently v