fy19 results€¦ · fy19 revenue $119.4m pre-merger projection was approx. $120m1 normalised...

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AUGUST 2019 FY19 RESULTS PRESENTATION

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Page 1: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

i LOGICAMMS 2019 INVESTOR PRESENTATION

AUGUST 2019

FY19 RESULTS PRESENTATION

Page 2: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

Following the merger with OSD Pty Ltd, LogiCamms Limited (ASX: LCM) is now a leading mid-tier engineering, project delivery and operations services business executing work across Australia, New Zealand, PNG and the Pacific.

LogiCamms has strong positioning in each of its Service Lines:

• Asset Management• Competency Training• Digital Industry• Electrical and Instrumentation• Multi-Disciplinary Engineering • Pipelines

LogiCamms’ Mission: Outstanding Service Delivery through Innovative Engineering, Project and Operations Solutions. NEW PLYMOUTH

BRISBANE

MELBOURNE

ADELAIDE

PERTH

MACKAY

DARWIN

WHYALLA

1 LOGICAMMS 2019 INVESTOR PRESENTATION

COMPANY PROFILE

29% INFRASTRUCTURE & DEFENCE

33% INFRASTRUCTURE & DEFENCE

41% HYDROCARBONS

30% MINERALS & METALS

39% HYDROCARBONS

28% MINERALS & METALS

Pro forma consolidated (combined) revenue by industry sector

FY19 FY18

Page 3: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

FY19Revenue $119.4m Pre-merger projection was approx. $120m1

Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1

NPAT $3.2m –

Market Capitalisation (at 30 June 2019) $37m Diluted

Net Cash (at 30 June 2019) $4.6m Compared to LCM standalone (at 31 December 2018) ($3.09m)

Net Tangible Assets (at 30 June 2019) $11.01m Compared to LCM standalone (at 31 December 2018) $2.4m

Pro forma consolidated (combined)2

FY19 results matched pre-merger projections1

2 LOGICAMMS 2019 INVESTOR PRESENTATION

PROFORMA FINANCIAL PERFORMANCE

1 ASX Announcements of 24 March 2019 and again on 22nd May 20192 On 28 June 2019 LogiCamms Limited completed the legal acquisition of OSD Pty Ltd. Pursuant to the requirements of Australian Accounting Standard AASB 3 ‘Business Combinations’ OSD is deemed to be the acquirer in the business combination. This transaction therefore has been accounted for as a reverse acquisition under AASB3. Accordingly, the consolidated financial statements of LogiCamms have been prepared as a continuation of the consolidated financials of OSD. OSD has been deemed the acquirer, has accounted for the acquisition of LogiCamms at 28 June 2019. The comparative information from 1 July 2017 to 30 June 2018 presented in the consolidated financial statements is that of OSD, unless otherwise stated. A reconciliation of statutory profit before tax to underlying proforma EBITDAI is provided in the appendix to this presentation. The financial data in this investor presentation is based on proforma financial information prepared by the directors of LCM. The merged LCM proforma financial information presented in this presentation is based on the relevant period of the LCM Historical Financial Information and the OSD Historical Financial Information. Adjustments have been made to normalise one-off items and reflect certain financial impacts of the Transaction.

Page 4: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

• Outstanding Safety Performance: Zero TRIFR (849,000 hours worked)

• More than $3 million in annualised merger cost synergies already achieved

• Improved half-on-half performance for pre-merger LogiCamms business driven by increased discipline and accountability including:

– More detailed analysis of each business unit’s financial and operating trends to drive speedy response to issues

– Tighter control of overheads

– Transformed Business Development and tendering processes to improve win rate and cash flow – particularly for larger contracts

– Rationalised technology development initiatives for earlier commercialisation by addressing specific client opportunities

– Increased Business Unit leaders’ accountability by updating role requirements and objectives tracking

– Established a clear set of Business Drivers as an operating framework and used these to significantly increase leadership engagement with our work force

3 LOGICAMMS 2019 INVESTOR PRESENTATION

OPERATIONAL HIGHLIGHTS

Page 5: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

• Merger completed 28 June 2019

• Re-financing completed: Stronger balance sheet with net positive cash position and renewed financing facilities

• New Vision, Mission and Values developed and established across the business

• Renewed company strategy established (focused on our Service Lines) and enshrined in FY20 Business Plans

• Streamlined organisation structure and refreshed executive leadership team

• Well advanced in implementing our detailed merger transition plan

• Identifying and pursuing cross-selling opportunities with our expanded client base

• Improved financial position strengthening our positioning re. larger tenders with new clients

4 LOGICAMMS 2019 INVESTOR PRESENTATION

STRATEGIC HIGHLIGHTS

Page 6: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

More than $3m annualised operating cost reductions: lower overheads

Common culture: new Vision, Mission and Values

New strategy developed and being implemented via Business Plans

Streamlined organisation structure and refreshed executive leadership team

Integrated budgets and financial reporting

Combined LCM and OSD innovation products to focus on near-term commercialisation

Identify and pursue cross-selling opportunities

Leverage strengthened specialist capabilities to expand market presence in our Service Lines

Co-location of merged teams

ITC Systems Integration

Revamped role responsibilities and employee development and performance plans to improve productivity and retention

• Leverage expanded scale and capability, lower overheads and strengthened financial position to win more and larger contracts

• Continue to build capability in our Service Lines in key growth markets (e.g. WA and PNG)

• Utilise co-location of merged teams to further increase reimbursability

• Utilise Service Line strategy and structure to drive more cross-location sharing of work

PHASE 1:ENHANCE EFFICIENCY, PROFITABILITY AND DEVELOP COMMON CULTURE

PHASE 2: LEVERAGE SKILL SET TO SECURE ORGANIC GROWTH

PHASE 3: CAPITALISE ON MOMENTUM AND STRONGER BALANCE SHEET TO PURSUE GROWTH OPPORTUNITIES

COMPLETE UNDERWAYQ2 FY20

5 LOGICAMMS 2019 INVESTOR PRESENTATION

MERGER IMPLEMENTATION UPDATE

Page 7: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

• Fully capture remaining merger cost synergies

• Cross-sell expanded capabilities and complementary skills sets to combined client base

• Leverage reduced overheads to improve competitive positioning and profitability

• Leverage expanded capabilities, stronger balance sheet and scale to win larger contracts

• Develop more aligned culture with increased engagement to drive performance

Utilise, and be known for, our strength and specialist capabilities in our Service Lines:• Asset Management• Competency Training• Digital Industry (Controls & Automation,

data technologies and industry digitalisation capabilities)

• Electrical & Instrumentation• Multi-disciplinary Engineering• Pipelines

Note: LCM exiting Monarc environmental business

• Innovation products rationalised with clear near-term commercialisation plans

• Internal innovations driven by Service Lines strategy and structure and applied to enhance our competitive edge

FULLY HARNESS MERGER BENEFITS

FOCUS ON SIX SPECIALIST SERVICE LINES

FOCUS INNOVATION EFFORTS

REMAIN FOCUSED ON OUR KEY INDUSTRY SECTORS

Hydrocarbons (Oil & Gas and Chemicals)Mining & MineralsInfrastructure (Water, Power and Intelligent Transport systems)Growing presence in Defence (in our specialty areas)

6 LOGICAMMS 2019 INVESTOR PRESENTATION

STRATEGY OUTLINE

Page 8: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

Board Position

Charles Rottier Independent Chairperson

Brian O’Sullivan AM Executive Director

Linton Burns Executive Director

Richard Robinson Independent Non-Executive Director

Other Key Management Personnel Position

Chris O’Neill Chief Executive Officer

Dan Drewe Chief Financial Officer

• Richard Robinson has informed the Board of his intention to retire by February 2020

• Search to appoint two independent directors is well advanced

• Refreshed executive leadership team from LCM and OSD talent

7 LOGICAMMS 2019 INVESTOR PRESENTATION

MERGED BOARD AND MANAGEMENT

Page 9: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

HYDROCARBONS (OIL & GAS AND CHEMICALS)• A continued return to investment in existing assets – brownfield

projects, data technology, replacement of outdated equipment, asset management services and training

• Next wave of WA gas projects starting, with opportunities for LCM particularly in associated life extension and modification works to existing facilities

• PNG potential for increase in greenfield and brownfield oil and gas project work

• Increasing chemicals industries investment in selected areas: LCM has strong relationships with a number of these companies and has commenced work on these projects

MINING & MINERALS• Ongoing brownfield projects particularly in the areas of

Digital Industry, Electrical & Instrumentation and fuel systems• Several large, greenfield developments underway

(particularly in Western Australia) – LogiCamms tendering for key work packages,

and increasing number of brownfield upgrades

INFRASTRUCTURE• Continued strong investment in LCM areas of expertise

(water, power and intelligent transport systems)

• Our Digital Industry and Electrical & Instrumentation Service Lines are already strong in these areas and there are growing opportunities for our other Service Lines

DEFENCE• Expenditure increasing: LCM targeting increasing

investment particularly in our speciality areas of fuel systems (Multi-Disciplinary Engineering) and multiple opportunities for Electrical and Instrumentation and Digital Industry (controls and automation and data management)

Generally positive conditions in LCM’s key markets, including all areas serviced by our Service Lines:

8 LOGICAMMS 2019 INVESTOR PRESENTATION

MARKET CONDITIONS

Page 10: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

• $54m work in hand at 31 July 2019

• Industry trends mean larger and more complex projects becoming available to pursue. LCM in stronger position to bid and win these contracts:

– Mid-tier position, stronger balance sheet and lower overheads

– Service Line strategy (and branding) to focus our efforts in areas where we have strong industry presence, strong capabilities and industry reputation

– More structured business development process and refreshed Business Unit leadership with BD track record

– Revamped tendering process that ensures differentiated value propositions and optimal commercial strategy for each opportunity

• Service Line focus strengthens LogiCamms’ position to continue to win a large number of medium and small projects (from a wide variety of industries and clients) that form a firm underlying base to our business

9 LOGICAMMS 2019 INVESTOR PRESENTATION

OUTLOOK

Page 11: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

8.0

0.00.3

2.70.3

1.4

2.2 6.97.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0Statutory Profit before

TaxOSD D&A Reverse takeover costs

(included in Statutory results)

LCM pro-forma debt adjustment

LCM transaction costs incurred pre-merger

close (not included in Statutory results)

LCM EBITDAI pre transaction close

Pro-forma Normalised FY19 EBITDAI

Reported Profit before tax to Group pro forma EBITDAI

10 LOGICAMMS 2019 INVESTOR PRESENTATION

APPENDIX 1

Page 12: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

The purpose of this presentation is to provide general information about LogiCamms Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company solely on the basis of this presentation. This presentation does not contain all information which would be material to the making of a decision in relation to the Company. Any investor should make its own independent assessment and determination as to the Company’s prospects prior to making any investment decision, and should not rely on the information in this presentation for that purpose.

This presentation contains certain statements which may constitute “forward looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements.

No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct.

Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

11 LOGICAMMS 2019 INVESTOR PRESENTATION

DISCLAIMER

Page 13: FY19 RESULTS€¦ · FY19 Revenue $119.4m Pre-merger projection was approx. $120m1 Normalised EBITDAI $6.87m Pre-merger projection was $6.7m1 NPAT $3.2m – Market Capitalisation

12 LOGICAMMS 2019 INVESTOR PRESENTATION

FURTHER INFORMATIONINVESTOR RELATIONSChris O’Neill Chief Executive Officer Tel. +61 7 3058 7000

REGISTERED OFFICELevel 14, 200 Mary Street Brisbane Queensland 4000 Tel. +61 7 3058 7000

WEBwww.logicamms.com.au