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Master Drilling Group Limited FY 2012 financial results presentation

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Master Drilling Group Limited FY 2012 financial results presentation

Master Drilling Group Limited FY 2012 financial results presentation

Published in: Investor Relations
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  • 1. www.masterdrilling.comwww.masterdrilling.com RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2012 Danie Pretorius, Chief Executive Officer André van Deventer, Chief Financial Officer Johannesburg 26 March 2013
  • 2. www.masterdrilling.com DISCLAIMER This document has been compiled from information provided by the Directors of Master Drilling Group Limited (“Master Drilling”, “Master Drilling Group” or the “Company”) and from publicly available sources, and involves elements of subjective judgment and analysis, which may or may not be correct, and have not been independently verified. Accordingly, Master Drilling and its Advisors accept no responsibility for the correctness or otherwise of the content set out herein and no representation or warranty, express or implied, is being made or given as to the accuracy or completeness of the information set out herein. The information contained in this document is subject to completion, revision, verification and amendment without prior notice and without liability to compensate or reimburse any party. No representation or warranty, express or implied is, or will be, given by Master Drilling or its Directors, Partners, Employees or Advisors or any other person as to the accuracy, completeness or fairness of this document and, so far as permitted by law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements negligent or otherwise relating thereto. Master Drilling shall only be bound by those particular representations and warranties set forth in definitive written transaction documents, when and if such transaction documents are executed and subject to such restrictions and limitations as may be contained therein. This document may include certain statements, estimates, targets, forecasts and projections provided by Master Drilling. Such statements, estimates, targets, forecasts and projections reflect significant assumptions and subjective judgments and analysis by Master Drilling’s management concerning anticipated future events which may or may not prove to be correct and there can be no assurance that any estimates, targets, forecasts or projections are attainable or will be realised. Nothing contained in this document is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Accordingly, (subject as aforesaid) neither Master Drilling nor its Directors, Partners, Employees or Advisors nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this document and any such liability is expressly disclaimed. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any estimates, targets, forecasts or projections contained in this document (or otherwise provided by or on behalf of Master Drilling with respect to the subject matter of this document). In all cases, interested parties should conduct their own investigation and analysis of Master Drilling and the information contained in this document before making any decisions. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of an offer to purchase or subscribe for, any securities of the Company or any other entity, nor shall the information contained in this document or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or investment decision in relation thereto. This document is not intended to provide, and should not be relied upon for, or as, accounting, legal, tax advice or investment recommendations. You should consult your tax, legal, accounting or other professional advisors about the issues presented in the Information. This presentation and the documents provided with this presentation are confidential and may not be disclosed to any third party without the prior written consent of Master Drilling. | 26 March 2013Results for the period ended 31 December 2012 2
  • 3. www.masterdrilling.com KEY FEATURES  Company changed from private to public  Reorganisation of assets into single focused group  First of its kind to list on JSE, 20 December 2012  Raised R352.5 million, before expenses, in equity issues at listing  Revenues up from $94.6 million in 2011 to $99.7 million in 2012  Profit attributable to equity shareholders up from $10.8 million in 2011 to $11.9 million in 2012  increase of 10.2%  Adjusted HEPS up from 96.6 SA cents in 2011 to 115.5 SA cents in 2012  increase of 19.6% | 26 March 2013Results for the period ended 31 December 2012 3
  • 4. www.masterdrilling.com SAFETY PERFORMANCE | 26 March 2013Results for the period ended 31 December 2012 4 2009 2010 2011 2012 LTIFR (per million man hours) 3.95 1.97 1.47 1.63 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Frequencyrate
  • 5. www.masterdrilling.com KEY PERFORMANCE INDICATORS | 26 March 2013Results for the period ended 31 December 2012 5 2009 2010 2011 2012 Total capital project and production stage rigs 68 73 78 88 Utilisation (%) 65 80 80 71 Average revenue per operating rig (ARPOR) per month (US$) 54,386 66,235 78,502 87,627 Total exploration stage rigs 40 43 54 64 Utilisation (%) 39 23 58 51 ARPOR (US$) 16,859 16,531 29,989 36,302
  • 6. www.masterdrilling.com TRENDS: REVENUE (US$m) | 26 March 2013Results for the period ended 31 December 2012 6 - 20 40 60 80 100 120 2009 2010 2011 2012 Gold 35% Platinum 14% Coal 4% Diamonds 1% Chrome 3% Silver/lead/zinc 17% Cement 1% Copper 16% Tin 2% Iron 1% Manganese 0% Other 6% Revenue per commodity Revenue by drilling type 2012 (full year) Exploration 17,582,775 Capital 14,610,256 Production 67,463,577 Total 99,656,608
  • 7. www.masterdrilling.com TRENDS: REVENUE AND PROFITS | 26 March 2013Results for the period ended 31 December 2012 7 34% 52% 14% Profit 38% 56% 6% Revenue Africa Latin America Rest of the world
  • 8. www.masterdrilling.com TRENDS: EBITDA (US$m) | 26 March 2013Results for the period ended 31 December 2012 8 0 5 10 15 20 25 2009 2010 2011 2012
  • 9. www.masterdrilling.com TRENDS: PROFIT AFTER TAXATION (US$m) | 26 March 2013Results for the period ended 31 December 2012 9 - 2 4 6 8 10 12 14 2009 2010 2011 2012
  • 10. www.masterdrilling.com COMPREHENSIVE INCOME (US$m) | 26 March 2013Results for the period ended 31 December 2012 10 Continuing operations Full year unaudited 2012(1) Comments Revenue 99,656,608  Top-line revenue growth of 88% between FY2009 and FY2012 representing CAGR of 23% pa  Gross margin of 30% in FY2012, average over past 4 years of 31%  Operating margin of 17% in FY2012, average over past 4 years of 18%  Adjusted EBITDA of US$20.2m in FY2012  Net profit margin of 12% in FY2012, average over past 4 years of 12%  Net profit from continuing operations increased by 106% between FY2009 and FY2012, representing CAGR of 27% pa  Total comprehensive income growth of 43% between FY2011 and FY2012  HEPS in SA cents up 19.6% from 96.6 cents to 115.5 cents  Top-line revenue up 18% from H1 FY2012 to H2 FY2012 (1) A favourable Factual Findings Report was issued on the 2012 full year SOCI. Cost of sales (70,219,566) Gross profit 29,437,042 Other operating income 6,012,935 Other operating expenses (18,198,969) Operating profit 17,251,008 Investment revenue 400,319 Finance costs (1,934,540) Profit before taxation 15,716,787 Taxation (3,538,609) Profit for the year 12,178,178 Other comprehensive income: Exchange differences on translating foreign operations 206,951 Total comprehensive income 12,385,129 Profit attributable to: Owners of the parent – from continuing operations 11,900,259 Non-controlling interest – from continuing operations 277,919 Total comprehensive income attributable to: 12,385,129 Owners of the parent 12,107,210 Non-controlling interest 277,919
  • 11. www.masterdrilling.com FINANCIAL POSITION (US$m) | 26 March 2013Results for the period ended 31 December 2012 11 At 31 December 2012 Comments Assets Total non-current assets 68,771,479  Current ratio of 1.76:1 in FY2012 compared with 1.18 in FY2011  Gearing ratio of 11.9% in FY2012 compared with 33.5% in FY2011  Total interest-bearing debt of US$11.5m compared with US$16.7m in FY2011  187% growth in total assets between FY2009 and FY2012 representing a CAGR of 42% pa Total current assets 89,214,216 Total assets 157,985,695 Equity Equity 89,318,105 Non-controlling interest 7,156,122 Total equity 96,474,227 Liabilities Total non-current liabilities 10,853,021 Total current liabilities 50,658,447 Total liabilities 61,511,468 Total equity and liabilities 157,985,695
  • 12. www.masterdrilling.com CASH FLOW (US$m) | 26 March 2013Results for the period ended 31 December 2012 12 Period ended 31 December 2012 Comments Net cash flow from operating activities 8,929,202  Information on cashflow statement is reported for a limited period  Positive cash balance FY2012 of US$49.6m compared with negative balance of US$1.6m FY2011  Biggest contributor to positive cash movement is the US$41.6m raised through issue of shares  US$41.6m before costs Net cash flow from investing activities 4,392,690 Net cash flow from financing activities 36,544,753 Total cash movement for the year 49,866,645 Cash at the beginning of the period – Effect of exchange rate movement on cash balances (293,368) Total cash at the end of the year 49,573,277
  • 13. www.masterdrilling.com SHARE PRICE (JSE) | 26 March 2013Results for the period ended 31 December 2012 13 720 740 760 780 800 820 840 860 880 900 920 940 20 December 2012 20 January 2013 20 February 2013 20 March 2013
  • 14. www.masterdrilling.com STRATEGIC INITIATIVES: 2013  Grow the revenue base  from existing markets to existing services  expand into new geographical areas  expand drilling services  Increase margin  Technology optimisation and development  People capacity and development | 26 March 2013Results for the period ended 31 December 2012 14  Organic  Joint ventures
  • 15. www.masterdrilling.com GLOBAL FOOTPRINT | 26 March 2013Results for the period ended 31 December 2012 15
  • 16. www.masterdrilling.com COMMITTED ORDERS (US$m) | 26 March 2013Results for the period ended 31 December 2012 16 Africa Latin America 92 125 442 45 857 626 79 617 746 217 600 813 0 50 000 000 100 000 000 150 000 000 200 000 000 250 000 000 2013 2014 2015 onwards Total
  • 17. www.masterdrilling.com LOOKING AHEAD  Continue to improve safety, quality and training (human capital)  Bullish about copper, zinc, silver and gold  Organic growth in Chile, Peru, Mexico, Burkina Faso, DRC and Zambia  increase ratio of US dollar vs rand income  New markets in Mali and Colombia  Largest contract to date in SA iron-ore sector  technology in line with Master Drilling strategy  first ‘one-stop shop’ agreement  Remain committed to local mining industry in spite of SA’s labour, energy and political issues  Ensure sustainable growth through major R&D and innovation programmes | 26 March 2013Results for the period ended 31 December 2012 17
  • 18. www.masterdrilling.com CONTACT DETAILS REGISTERED OFFICE 4 Bosman Street, Fochville, South Africa PO Box 902, Fochville 2515, South Africa INVESTOR/MEDIA RELATIONS James Duncan Russell and Associates Tel: +27 11 880 3924 Fax: +27 11 880 3788 Mobile: +27 82 892 8052 E-mail: james@rair.co.za General e-mail enquiries: info@masterdrilling.com | 26 March 2013Results for the period ended 31 December 2012 18

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