Black Diamond Group Limited · TSX:BDI
Black Diamond — Shareholder Meeting (May 2016)
42 slides from Black Diamond's shareholder meeting presentation, May 3, 2016
Slide 1: 2016 Annual General Meeting
2016 ANNUAL GENERAL MEETING
Slide 2: Financial Overview
FINANCIAL OVERVIEW TOBY LABRIE EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. The use of the words “anticipate”, “continue”, “estimate”, “expect”, “will”, “project”, “should”, “believe”, “intend” and similar expressions identify forward- looking statements. These statements involve known and unk
Slide 4: International EBITDA ($ millions)
Q1 2016 Adjusted EBITDA $17.2 Million Business Unit Performance Adjusted EBITDA Waterfall Camps & Lodging • Ongoing weakness in the resource sector drove rental and lodging revenue down. 35.0 2016 Q1 vs 2015 Q1 Non-rental revenue lower year over year due to installation activities in Q1 2015 30.0 BO
Slide 5: Preserving Balance Sheet Flexibility
Preserving Balance Sheet Flexibility Defensive Action Results Cost controls Debt repayment Working capital efficiencies $107 million liquidity Reducing CAPEX & dividends Net Debt: EBITDA 2.00
Slide 6: Cash Flow Management
Cash Flow Management EBITDA vs. Cash Outflows 35.0 30.6 30.0 25.0 17.9 23.2 20.0 $ Millions 18.2 19.2 11.9 15.9 17.2 15.0 10.0 9.8 9.8 1.5 9.8 3.3 5.0 7.4 2.2 2.1 5.1 2.0 2.8 2.8 1.5 2.0 - 1.9 0.2 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Cash Tax Finance Costs Dividends paid Capex Consolidated EBITDA
Slide 7: Strategic Overview
STRATEGIC OVERVIEW TREVOR HAYNES PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 8: Founding Values
Founding Values PERFORMANCE A proven team of dedicated and talented people INTEGRITY INNOVATION “We are dedicated to being a reliable and innovative value creator for our partners, customers and shareholders”
Slide 9: Superior Business Model
Superior Business Model Capital Allocation Return on Model Capital Employed ASSETS Rental Revenue
Slide 10: Superior Business Model
Superior Business Model Risk Management Strategy Return on Capital Employed COMPLEMENTARY SERVICES Non-Rental Revenue ASSETS Rental Revenue
Slide 11: Superior Business Model
Superior Business Model Return on Capital Generating Value Employed PROFESSIONAL MANAGEMENT Lodging Revenue COMPLEMENTARY SERVICES Non-Rental Revenue ASSETS Rental Revenue
Slide 12: Superior Business Model
Superior Business Model Return on Capital Maximizing Return Employed Minimizing Risk DIVERSIFICATION Replicate Model PROFESSIONAL MANAGEMENT Lodging Revenue COMPLEMENTARY SERVICES Non-Rental Revenue ASSETS Rental Revenue
Slide 13: Superior Business Model
Superior Business Model PERFORMANCE INTEGRITY INNOVATION
Slide 14: Record of Success
Record of Success 11,388 11,388 Black Diamond Whitecap Whitecap First Nation 2014 Australia 2013 Black Diamond Nehiyawak Beaver Lake First Nation 2012 Asset Count Black Diamond Cygnus West Moberly First Nation 2011 33% Compound Annual Growth Rate (2006-2015) Black Diamond Dene United States 2009 For
Slide 15: Current Market
Current Market 2 year spot snapshot 10% WTI Natural Gas Metals Index • Performance Drivers 0% • Capital spending -10% • Commodity pricing • Major project approvals -20% -30% • Current Challenges • Commodities -40% • Market visibility of our customers -50% • Regulatory changes -60% -70%
Slide 16: Performance in the Current Market
Performance in the Current Market 160 35 503M 488M 140 30 444M 120 390M 25 EBITDA (in $ Millions) EBITDA (Year End) $ Canadian Dollars 100 BDI Stock Price1 20 270M 80 NBV of Asset Base2 227M 15 3 Leverage 60 176M 152M 153M 147M 10 40 126M 1 Stock Price showing 94M daily close price adjusted for stoc
Slide 17: Business Model Historical Performance
Business Model Historical Performance Yearly EBITDA vs. Cash Outflows 200 180 160 141 140 140 120 $ Millions 112 100 94 89 80 87 96 120 60 50 164 40 34 39 34 35 37 95 50 27 20 19 68 42 33 20 8 8 15 13 17 6 8 2 9 12 9 12 12 0 7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Cash Tax Finance Costs
Slide 18: Financial Positioning into Recovery
Financial Positioning into Recovery 2015 EBITDA vs. Cash Outflows 35.0 Defensive Strategy 30.6 30.0 • Working Capital Reduction • Managing Cash Outflows 25.0 23.2 • Internal Efficiencies 20.0 19.2 • Managing Costs & Assets $ Millions 17.2 15.9 17.9 18.2 15.0 11.9 2016 Focus 10.0 9.8 9.8 1.5 • Re-def
Slide 19: Looking into Recovery
Looking into Recovery The RIGHT assets Well positioned to: 1. Take advantage of market opportunities In the RIGHT locations 2. Accelerate into market recovery And the RIGHT partners 3. Increase our customer offering 5/6/201 19 6
Slide 20: Energy Services Opportunity
Energy Services Opportunity 5/6/201 20 6
Slide 21: Energy Services Opportunity
Energy Services Opportunity 5/6/201 21 6
Slide 22: Energy Services Opportunity
Energy Services Opportunity 5/6/201 22 6
Slide 23: International Opportunity
International Opportunity 23
Slide 24: International Opportunity
International Opportunity 24
Slide 25: International Opportunity
International Opportunity 25
Slide 26: Camps & Lodging Opportunity
Camps & Lodging Opportunity 5/6/201 26 6
Slide 27: Camps & Lodging Opportunity
Camps & Lodging Opportunity 5/6/201 27 6
Slide 28: Camps & Lodging Opportunities
Camps & Lodging Opportunities 5/6/201 28 6
Slide 29: Camps & Lodging Opportunities
Camps & Lodging Opportunities 5/6/201 29 6
Slide 30: BOXX Modular Opportunity
BOXX Modular Opportunity 5/6/201 30 6
Slide 31: BOXX Modular Opportunity
BOXX Modular Opportunity 5/6/201 31 6
Slide 32: BOXX Modular Opportunity
BOXX Modular Opportunity 5/6/201 32 6
Slide 33: BOXX Modular Opportunity
BOXX Modular Opportunity 5/6/201 33 6
Slide 34: BOXX Modular Opportunity
BOXX Modular Opportunity 5/6/201 34 6
Slide 35: A People Company
A People Company oy BLACK DIAMOND CAMPS
Slide 36: A People Company
A People Company 5/6/201 36 6
Slide 37: A People Company
A People Company 5/6/201 37 6
Slide 38: A People Company
A People Company 5/6/201 38 6
Slide 39: A People Company
A People Company 5/6/201 39 6
Slide 40: A People Company
A People Company 5/6/201 40 6
Slide 41: Looking Forward
Looking Forward The RIGHT business model The RIGHT strategy The RIGHT team to deliver SIGNIFICANT UPSIDE POTENTIAL Innovation Value Creation 41
Slide 42: Thank You
THANK YOU 5/6/2016 42