Aj Lucas Group Limited · ASX:AJL
Aj Lucas — H1 FY2009 Earnings Presentation
16 slides from Aj Lucas's earnings presentation, Feb 27, 2009
Slide 1: AJ Lucas Group Limited Results Presentation Half Year ended 31 Dec 2008
For personal use only AJ LUCAS GROUP LIMITED RESULTS PRESENTATION Half Year ended 31 Dec 2008
Slide 2: Presentation Outline
Presentation Outline For personal use only Overview Key Business Objectives Financial Performance Coal Seam Gas Assets Outlook 2
Slide 3: Overview
Overview For personal use only • Strong Operating financial performance – Revenue increased by 43% to $292.8m – Profit after tax increased by 1,846% to $160.3m – Underlying EBITDA increased by 35% to $29.9m (excl CSG sale) – Gloucester Basin sold for $259m – profit of $218.4m – Strong cash balance a
Slide 4: Our People
Our People For personal use only Employee Numbers Safety Performance Significant Growth Significant Improvement 1036 23.00 21.00 768 19.00 17.00 15.00 13.00 406 11.00 9.00 188 217 203 7.00 103 5.00 72 3.00 1.00 2002 2003 2004 2005 2006 2007 2008 HY 2009 8 8 8 8 8 8 8 08 08 8 8 8 -0 -0 r-0 -0 -0 0 -0
Slide 5: Key Business Objectives
Key Business Objectives For personal use only Operations: • People – Continue to improve safety performance – Significant investment in training & development • Markets – Focused on continuing leadership in our niche market segments – Ongoing development of O&M business strategy – Pursue regional in
Slide 6: Key Business Objectives
Key Business Objectives For personal use only • Financial – Maintainable revenue streams – Improve bottom line results through increased efficiencies Other: • Continued focus on Energy opportunities • Exploring Water opportunities 6
Slide 7: Financial Performance
Financial Performance For personal use only 2008 2007 Change Revenue $292.8m $205.3m + 43% • Strong revenue growth – Mitchell Acquisition 4 months Underlying EBITDA $29.9m $22.1m + 35% – Construction & Infrastructure +29% Underlying EBIT $18.5m $13.3m + 39% • Margins Underlying EBIT 6.3% 6.5% – Chan
Slide 8: Strong Growth
Strong Growth For personal use only Operating Revenue $m Underlying EBITDA $m Underlying EBITDA Margin 424.3 37.4 8.8 8.5 29.9 6.2 10.2 292.8 18.3 (9.0) 216.4 2005 2006 2007 2008 2009 10.6 171.3 (6.7) 2005 2006 2007 2008 2009 74.2 2005 2006 2007 2008 2009 8
Slide 9: Balance Sheet
Balance Sheet For personal use only $m Dec 08 Jun 08 Cash 234.0 16.6 Total assets 637.7 229.9 Borrowings 216.5 71.0 Total liabilities 368.1 164.7 Equity 269.6 65.2 Net debt (17.5) 54.4 Gearing (Net debt/Equity) (6%) 84% Net debt/EBITDA (3.0)x 2.1x 9
Slide 10: Working Capital
Working Capital For personal use only Operating cash flow $m Underlying EBITDA 29.9 • Debtor collections remain strong 33 days Net Interest expense (7.7) • Trade creditors movement 22.2 impacted by timing re Movement in working capital: completion of large projects Trade & other receivables (9.4) •
Slide 11: Construction & Infrastructure Division
Construction & Infrastructure Division For personal use only HY09 HY08 Change Revenue $189.4m $147.1m 29% EBITDA $9.1m $9.2m (1)% EBITDA Margin 4.8% 6.3% 11
Slide 12: Construction & Infrastructure Division: Highlights, Challenges & Actions
Construction & Infrastructure Division For personal use only Highlights, Challenges & Actions • Selected as preferred proponent Perth Desalination plant ($1b) • Completed Bonaparte pipeline ahead of schedule • New prospects secured in regional NSW • Restructured division to drive greater efficiencie
Slide 13: Drilling Services Division
Drilling Services Division For personal use only HY09 HY08 Change Revenue $103.3m $58.2m 77% EBITDA $22.0m $11.5m 91% EBITDA Margin 21.3% 19.8% 13
Slide 14: Drilling Services Division: Highlights, Challenges & Actions
Drilling Services Division For personal use only Highlights, Challenges & Actions • Largest drilling services provider to coal and coal seam gas sectors in Australia (88 rigs) • Business restructure – Drilling HQ relocated to Brisbane • CSG opportunities remain strong • Coal sector remains stable •
Slide 15: Outlook
Outlook For personal use only • Strong order book of $246 million • Revenue guidance (FY2009): $530 million - $560 million • Business mix to improve margin in second half • Capital management initiatives under consideration • Well positioned as niche, focused services provider despite weak outlook f
Slide 16: For personal use only
For personal use only This presentation has been compiled by AJ Lucas Group Limited from sources it believes to be reliable. However it is not warranted as to its completeness or accuracy. This presentation is not an offer to sell or a solicitation to buy any securities. As it is prepared for genera