Slide 1: Full Year to 30 June 2016 Results Presentation
FULL YEAR TO 30 JUNE 2016 RESULTS PRESENTATION
Slide 2: Full Year Key Points: Overview
FULL YEAR KEY POINTS Overview Significant business turnaround delivering profit % $M FY16 from continuing operations of $20.2 million. change Strong balance sheet with exceptional cash flow Continuing Operations delivering increased cash reserves of $181.9 Sales revenue (1) 743.9 3.3% million an
Slide 3: Full Year Key Points: Operational Performance
FULL YEAR KEY POINTS Operational Performance Drilling Revenues stabilised on the back of new drill and blast works secured at Telfer and Rocky’s Reward and Ensham contract renewal. Exploration drilling market remains challenging. Business consolidation and cost-out initiatives main drivers o
Slide 4: Operational Performance (continued)
FULL YEAR KEY POINTS Operational Performance (continued) Business improvement and rationalisation driving margin improvement: Sale of DTA – sold for $66 million generating $36.3 million profit on sale; Exit of DT HiLoad - $3.2 million in asset sale proceeds received to date; Sale of Miners R
Slide 5: Australia – Contract update
CONTRACT AWARDS AND EXTENSIONS Australia – Contract update New contract at Kundana and a contract extension at Kanowna Belle for Northern Star in Kalgoorlie, Western Australia, commenced July 2016. New contract for drilling and blasting services for Thiess at the BHP owned Rocky’s Reward mine, W
Slide 6: Africa – Contract update
CONTRACT AWARDS AND EXTENSIONS Africa – Contract update AMS awarded a USD120 million 42 month contract to provide surface mining services to Perseus at its Edikan gold mine, Esuajah North deposit in Ghana. AMS appointed Preferred Contractor for mine establishment and operation of KEFI Minerals T
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 6 Full Year to 30 Jun 2016 – Results Presentation
Slide 8: Financial Performance
FULL YEAR KEY POINTS Financial Performance Sales revenue(1) up 3.3% to $743.9 million EBITDA(1)(2) up 12.7% to $124.9 million EBIT(1)(2) up 52.9% to $56.9 million Operating PBT(1)(2) up 1,103.8% to $24.8 million Net profit after tax(1) of $20.2 million from continuing operations Return on average ca
Slide 9: Profit & Loss
FINANCIAL PERFORMANCE Profit & Loss Profit & Loss - A$ million FY15 FY16 % Change from pcp Continuing Operations Sales revenue 719.8 743.9 3.3% EBITDA (1) 110.8 124.9 12.7% EBITDA margin (2) 13.6% 15.6% 199bps EBIT (1) 37.2 56.9 52.9% EBIT margin (2) 3.4% 6.4% 307bps Profit/(loss) before tax (1) 2.1
Slide 10: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet Balance Sheet - A$ million FY15 FY16 Strong balance sheet provides flexibility and liquidity. Cash and cash equivalents 77.9 181.9 Debt reduction a key focus with Receivables 141.8 169.8 $47.8 million in net debt Inventories 226.9 191.4 repayments made during
Slide 11: Group Debt Position
FINANCIAL PERFORMANCE Group Debt Position (1) At 30 June 2016 the Group had gross debt of $398.5 million, net debt of $216.7 million. 0.9% Net debt repayments for the year totalled $47.8 million. Debt reduction remains a key focus. Gearing (Net Debt : Net Debt & Equity) reduced from AUD Debt 3
Slide 12: Group Debt Position and Maturity Profile
FINANCIAL PERFORMANCE Group Debt Position and Maturity Profile 450.0 Group debt - A$ million FY15 FY16 400.0 Revolving cash advance facility 25.0 - 350.0 300.0 Asset finance and other funding 22.9 0.5 A$ Million 250.0 US$300 million unsecured notes 390.7 402.3 200.0 Insurance premium funding and (4.
Slide 13: Cash Flow
FINANCIAL PERFORMANCE Cash Flow Working Capital Changes Cash Flow - A$ million FY15 FY16 since June 2015 A$m Operating cash flows after interest and tax 117.9 91.0 Receivables 28.0 Net debt (repayments)/proceeds (95.3) (47.8) Inventories (35.5) Capital expenditure (28.5) (12.4) Less Payables (1.8) P
Slide 14: Capital Expenditure
FINANCIAL PERFORMANCE Capital Expenditure Capital expenditure - A$ million FY15 FY16 Capex spend continues to be contained at $12.4 Drilling Services Australia (6.3) (3.8) million. Depreciation of $68.0 million Contract Mining Services Africa (14.1) (6.8) from continuing operations. Equipment Su
Slide 15: Drilling Services Australia
FINANCIAL PERFORMANCE Drilling Services Australia External Sales Revenue* ($m) EBIT** ($m) EBIT** Margin * Excluding intersegment sales ** Significant items expense in pcp excluded ** Significant items expense in pcp excluded 238.4 9.5% 222.6 21.1 12.1 5.1% FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Reve
Slide 16: Contract Mining Services Africa
FINANCIAL PERFORMANCE Contract Mining Services Africa External Sales Revenue* ($m) EBIT** ($m) EBIT** Margin * Excluding intersegment sales ** Significant items expense in pcp excluded ** Significant items expense in pcp excluded 361.9 281.4 10.1% 10.8% 38.9 28.3 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16
Slide 17: Equipment Services & Supplies
FINANCIAL PERFORMANCE Equipment Services & Supplies External Sales Revenue* ($m) EBIT** ($m) EBIT** Margin * Excluding intersegment sales ** Significant items expense in pcp excluded ** Significant items expense in pcp excluded 130.1 131.0 5.7% 7.5 -4.3 -3.3% FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Ne
Slide 18: All Other Segments
FINANCIAL PERFORMANCE All Other Segments External Sales Revenue* ($m) EBIT** ($m) EBIT** Margin * Excluding intersegment sales ** Significant items expense in pcp excluded ** Significant items expense in pcp excluded 70.0 1.1 1.5% 28.4 -5.3 -18.7% FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Comprises Diam
Slide 19: African Underground Mining Services (50% share)
FINANCIAL PERFORMANCE African Underground Mining Services (50% share) External Sales Revenue* ($m) EBIT** ($m) EBIT** Margin * Excluding intersegment sales ** Significant items expense in pcp excluded ** Significant items expense in pcp excluded 110.1 23.8% 76.6 18.2 16.3 14.8% FY 15 FY 16 FY 15 FY
Slide 20: Safety and People
SAFETY AND PEOPLE Full Year to 30 Jun 2016 – Results Presentation 19
Slide 21: Safety and People
SAFETY AND PEOPLE 20 SAFETY 15 Ausdrill’s commitment to safety remains a core business value. 10 A key component of the continuing One Safe All 5 Safe program is to provide positive feedback at every opportunity to work crews. 0 Jun-13 Jun-14 Jun-15 Jun-16 Dec-13 Dec-14 Dec-15 The renewed focu
Slide 22: Outlook and Strategy
OUTLOOK AND STRATEGY Full Year to 30 Jun 2016 – Results Presentation 21
Slide 23: Current Environment and Outlook
OUTLOOK AND STRATEGY Current Environment and Outlook Competitive landscape remains challenging. 1,900 Business improvement initiatives have and will 1,700 continue to strengthen our sustainability and 1,500 competitiveness. Lower input costs and lower AUD provide a 1,300 buffer against lower c
Slide 24: Strategic Initiatives
OUTLOOK AND STRATEGY Strategic Initiatives Rationalise business activities: CORE BUSINESS Exit/turnaround non-core, non-performing businesses. Cost-out initiatives focussed on DRILLING CONTRACT EQUIPMENT SERVICES MINING SERVICES & underperforming businesses. AUSTRALIA AFRICA SUPPLIES Partici
Slide 25: Business Improvement Initiatives
OUTLOOK AND STRATEGY Business Improvement Initiatives BIP Focus Cash Generation Initiatives Business Rationalisation Business rationalisation Non-core asset sales Consolidate maintenance and Productivity / operating DT HiLoad sold workshop activities and office efficiency gains accommodati
Slide 26: Sale of Non-Core Businesses
OUTLOOK AND STRATEGY Sale of Non-Core Businesses In line with Ausdrill’s strategy to refocus on its core competencies, the Drilling Tools Australia and DT HiLoad truck tray manufacturing businesses were sold in the second half of the year: On 30 June 2016, Ausdrill sold DTA to Robit plc In Janua
Slide 27: Sale/Exit of Non-Core Businesses
OUTLOOK AND STRATEGY Sale/Exit of Non-Core Businesses In line with Ausdrill’s strategy to refocus on its core competencies, the EDA oil and gas assets were placed into care and maintenance and the Miners Rest motel was sold, subsequent to year end: Subsequent to year end, Ausdrill sold the EDA o
Slide 28: Appendices
APPENDICES Full Year to 30 Jun 2016 – Results Presentation 27
Slide 29: Appendices
APPENDICES Full Year to 30 Jun 2016 – Results Presentation 29
Slide 30: What We Do
WHAT WE DO DRILLING CONTRACT EQUIPMENT SERVICES MINING SERVICES & SERVICES SUPPLIES E X P L O R AT I O N S U R F AC E M I N I N G E AR T H M O V I N G D R I L L & B L AS T F L E E T H I R E & S AL E S UNDERGROUND PRODUCTION E AR T H M O V I N G MINING E Q U I P M E N T P AR T S G R AD E C O N T R O
Slide 31: Where We Operate: Australia
WHERE WE OPERATE AUSTRALIA BHPBIO – Pilbara region Exploration drilling services Ensham Resources – Bowen Basin, QLD BHPBIO – Pilbara region Production drilling services Equipment hire Associated since 2004 BHPBIO – Pilbara region Drill and blast services Peabody Energy Macmahon – Telfer Brisbane Hu
Slide 32: Where We Operate: Africa
WHERE WE OPERATE AFRICA Nordgold – Bissa, Taparko and Bourum, Burkina Faso Gold - Equipment hire Resolute Mining – Syama, Mali B2 Gold – Kiaka, Burkina Faso Gold - Open pit mining services Gold – Exploration drilling B2Gold – Fekola, Mali West African Resources – Tanlouka, Gold - Exploration drillin
Slide 33: Contracts Summary
CONTRACTS SUMMARY Client Project Location Services Provided AUSTRALIA Gold Fields Kambalda and Granny Smith Goldfields, WA Exploration drilling Northern Star Resources Kanowna Belle and Kundana Goldfields, WA Exploration drilling BHP Billiton Several Pilbara mine sites Pilbara, WA Exploration drilli
Slide 34: Our Equipment
OUR EQUIPMENT Note: Numbers represent the number of major equipment items owned by the Group and AUMS Full Year to 30 Jun 2016 – Results Presentation 33
Slide 35: Profit & Loss
PROFIT & LOSS Profit & Loss - A$ million FY15 FY16 % Change from pcp Continuing Operations Sales revenue 719.8 743.9 3.3% Interest income 1.8 1.6 (10.7%) Materials (285.5) (299.1) (4.8%) Labour (253.2) (240.8) 4.9% Rental and hire (10.7) (14.0) (30.8%) Depreciation & amortisation expense (73.6) (68.
Slide 36: Ausdrill Group Balance Sheet
AUSDRILL GROUP BALANCE SHEET Balance Sheet - A$ million FY15 FY16 Cash and cash equivalents 77.9 181.9 Current receivables 141.8 169.8 Inventories 226.9 191.4 Property, plant and equipment 559.7 489.8 Other assets 123.7 117.5 Total assets 1,130.0 1,150.4 Payables 84.6 82.8 Borrowings 433.8 398.5 Emp
Slide 37: Cash Flow
CASH FLOW Cash Flow - A$ million FY15 FY16 Receipts from customers (inclusive of GST) 830.2 791.5 Payments to suppliers and employees (inclusive of GST) (691.7) (668.3) 138.5 123.2 Interest received 1.7 1.7 Interest and other costs of finance paid (33.1) (30.9) Income taxes received / (paid) 7.1 (6.
Slide 38: AUMS Balance Sheet
AUMS BALANCE SHEET Ausdrill’s 50% share on a pro-forma basis Balance Sheet - A$ million FY15 FY16 Cash and cash equivalents 20.5 5.8 Receivables 28.8 24.0 Inventories 22.3 21.6 Property, plant and equipment 19.6 23.7 Other assets 2.2 8.9 Total assets 93.4 84.0 Payables 22.5 7.8 Borrowings – external
Slide 39: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE DIRECTORS AND SENIOR MANAGEMENT Share price (close as at 21 Aug 2016) $1.20 Terence O'Connor Chairman, Non-executive Director Fully paid ordinary shares 312.3 million Ronald Sayers Managing Director Market capitalisation (undiluted) $374.8 million Ian Cochrane De
Slide 40: Diversified Revenue
DIVERSIFIED REVENUE Sales Revenue By Business Activity (1) Sales Revenue By Geography (1) Burkina 4.8% Other 3.3% Manufacturing Mali 7.3% 1.2% Contract Mining Africa Supply Logistics 49.0% Other 1.3% 3.3% Other 5.4% Other Guinea 12.3% Aust. 7.9% 49.4% Explor. Production Africa Aust 49.4% Exploration
Slide 41: Reconciliation of Non-IFRS Financial Information
RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION A$ million FY15 Continuing Operations Loss after tax as reported (160.3) Add back: Impairment expense 184.2 Deduct: Tax (credit) / expense (21.9) Profit before tax 2.1 Net interest expense 35.1 EBIT 37.2 Depreciation and amortisation expense 73.6 EBIT
Slide 42: Important Notice and Disclaimer
This presentation and these materials (together the “Presentation”) has been prepared by The information contained in this Presentation is for information purposes only and does not Ausdrill Limited ABN 95 009 211 474 (ASX:ASL) (“Ausdrill”) as an Investor Presentation and a constitute an offer to is
Slide 43: Thank You
THANK YOU FOLLOW US AT AUSDRILL.COM.AU