Introducing ats revised

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<ul><li> STRICTLY PRIVATE &amp; CONFIDENTIAL April, 2012 </li> <li> DISCLAIMER This document and the information contained herein was prepared by Black Star Advisors and is confidential and for the exclusive use of the recipient and others involved in the recipients decisions and is to be used solely for the purpose of evaluating the opportunity described herein. This document may not be photocopied, reproduced, provided or disclosed to third parties, other than the recipients professional advisors, or used for any other purpose. This document and all of its contents herein shall remain the exclusive property of Black Star Advisors and shall be returned promptly to the directors of Black Star Advisors if so requested. 2 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> EXECUTIVE SUMMARY Allterrain Services Inc. (the Company) or (ATS) offers camp management and hospitality services to leading firms mostly in the mining industry across African countries, established in 1997 and head office situated in Accra, Ghana. The Company has achieved 52% 5-year CAGR in turnover from $6.8M in 2004 to $36.2M in 2008, with average 8% EBITDA margin over the same period ATS hopes to achieve its medium term growth and profitability targets of over $150M annual turnover by 2012 and sustaining EBITDA margins &gt;8% by doing the following: Entering 7 new country markets over the next 3 years ATS has acquired market control in most of African mining regions. Serving new industries such as oil and gas, etc Improving product mix in favor of high margin products while reducing and managing cost through extensive use of IT in stock control and other process improvements to increase efficiency and exploit economies of scale. 3 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ESTABLISHED IN 1997 Offering Catering, Facilities Management + Design &amp; Communications Solutions ATS Is Currently In 13 Countries Across Africa Offering 4 Products/Services Catering Facilities Management Facilities Design Communications Solutions 4 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ATS CLIENTELE A Testament To Their Efficient And Well-Managed Operations African Gold Group, Inc. Contracts are typically renewable after 3 years with the oldest existing contract having run for over 9 years. 5 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ATS COMPETITIVE ADVANTAGES Including HACCP and ISO22000:2005 FSMS Certification HACCP: The first and only current operator to obtain HACCP (Hazard Analysis Critical Control Point) for our catering and facilities operations. ISO22000:2005 FSMS Certification: The first and only current operator to obtain for our catering and facilities operations. Cost control: cutting edge computer technology with the latest in swipe cards and bar codes to control meal, shop and bar sales, tailored to the individual site and individual client requirements. Shareholder managers actively involved in operating the business with share option package aimed at locking the key managers into the company. Good auditable track record of operations in the African Market place. Strong Client relationships supported by key top managers with regular meetings and feedback. 6 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ATS CURRENTLY SERVES ~12K WORKERS DAILY I.E. 0.1% OF INDUSTRIAL WORKERS IN THEIR OPERATIONAL MARKETS, Mostly In Gold Mining And Other Extractive Industries Industrial Workers In Addressable Market (M) 10 8.2 8 5.7 6 4 6.5 Congo, Dem. Rep. Zambia Burkina Faso Sierra Leone Mali Cote d'Ivoire Ghana Tanzania 4.4 3.7 3.8 2003 2004 2005 2006 2007 2008 1.2 0.1% 1.8 0.1% 2.5 0.1% 3.9 0.1% 5.2 0.2% 6.5 0.1% 3 4 6 8 10 12 2 2 3 6 7 8 2 0 Meals (M) Share Workers Served Countries Served Year DR Congo Operation Begun in 2008, Nigeria Likely to Begin Soon 7 STRICTLY Sources: www.worldbank.org, www.cia.gov PRIVATE &amp; CONFIDENTIAL </li> <li> ATS HAS ACHIEVED AN IMPRESSIVE 52% 5-YEAR REVENUE CAGR FROM $6.8M (2004) TO ~$36.2M (2008) With 8% Average EBITDA Margin Over The Period Revenue and EBITDA 2004-2008 ($M) $40M 36.2 52% CAGR 28.9 30 18.4 20 11.0 10 6.8 1.0 0 Meals/day EBITDA Margin 2004 0.1 2.2 1.9 2.5 2005 2006 2007 2008 5K 7K 11K 14K 18K 14% 1% 12% 7% EBITDA Revenue 7% Year Business has sustained a 52% 5-year Income CAGR 2004-2008 EBITDA margin has averaged 8%, a really strong performance in a traditionally low margin business achieved through tight cost control and extensive use of IT to control shrinkage. Reduced risk exposure through country, industry and product diversification 8 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ZAMBIA AND GHANA OPERATIONS ARE LEADING INDICATORS TO GROUP REVENUE 38% &amp; 31% RESPECTIVELY Sierra Leone 7%, Burkina 7%, Tanzania 7% And Mali 6% Are Next In Significance 9 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> STRATEGIC AND PROJECTED MARKET OPPORTUNITIES Nigeria, Mozambique, Angola, Senegal, Liberia, Namibia &amp; Zimbabwe While Country Entry Would Be Opportunistic We Envisage This Sequence Given Pipeline ATS Is Currently In 13 Countries Across Africa Largest available untapped markets for our services Geographically close to existing ATS contracts Potential contracts have already been identified and offer a firm opportunity. 2009: Nigeria, Mozambique &amp; Angola Headquarters Current Presence 2010: Liberia and Senegal New Markets 2011: Namibia and Zimbabwe ATS Is Well-Advanced in Pursuing Several Opportunities in the Nigeria 10 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ON COMPLETION OF PROPOSED 7 COUNTRIES ROLLOUT (2011), ATS OPERATIONAL MARKET 16.5M Industrial Workers (Addressable Market) Sources: www.worldbank.org www.cia.gov Note: Based on % of labor force engaged in industry and labor force as percentage of projected population 11 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ATS HAS MADE SIGNIFICANT STRIDES IN 2009 REGARDING NEW MARKET ENTRY AND GROWTH Recent Developments: Nov 2010 - 2012 Won Tullow Oil Contract Accra and Takoradi Offices and Guest Houses our first true Oil &amp; Gas Contract. Won Anglo Gold Ashanti Contract various Accra Ghana Projects. Won Ivory Coast - Banlaw Ltd Contract We have mobilized to site on the Cluff Project. Signed and MOU with Group 4 Securicor in Nigeria to jointly market our services. New Nigerian Law requires factories to have a canteen and provide food. G4S have about 4 contracts for us to take on immediately. 12 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> ATS HAS MADE SIGNIFICANT STRIDES IN 2009 REGARDING NEW MARKET ENTRY AND OTHER GROWTH PLANS (II) Recent Developments Contracts Feb 2009 In Final Discussions PROJECTS CURRENTLY ON SERVICE BURKINAFASO- SomitaTaparko DRC-Banro-Bukavu Mine TANZANIA- UGANDA- BMCYouga KibaliGoldmines BissaGold Perkoa GHANA SIERRALEONE- SierraRutile LIBERIA- MALI- ZAMBIA- Mantra-mkujuRiver RandGold NGGL AfricanMinerals Goldfields FQML BanroTwangiza ShantaGold TullowOil LondonMinning PutuIronOre Equa tor Reso urces WestAfrican Drilling Q&amp;A Banro-Lugushwa Schlumberger AdamusResources Morilla MMSMaintenance Chirano LMC PanAfricanResources AmpelaBatie MiddleIsland- Poni Banro-Namoya AGA-Mongbwalu Buzwagi-Barrick Golder Sarama Group5 Geodrill BakerHughes GeodrillBatie Teichmann-Katanga Loncor CDI-NewcrestMine- Bonikro GOPDC ResoluteGuestHouse Dredgingconstruction BanlawHireandOume BakerHughesBayCourt WBHO AyanfuriPerseusMining LycopodiumResources AzumahGoldResources AryeeMining 13 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> <li> 2011 Actual Revenue CE &amp; DRC Banro &amp;TZ Central &amp; Easten Africa Francofone West Africa Ghana Liberia Sierra Leone Zambia Equipt Supply Vsat sales 1. 2. 3. 4. 5. vs 2010 act vs 2011 bud 2012 Budget usd 'mn 67.26 usd 'mn 17.67 % 36% usd 'mn 3.57 % 6% 5.33 2.46 0.48 1.20 10% 94% 0.21 0.12 4% 5% 7.13 7.08 (0.14) -2% 2.48 15% (0.37) -24% 7.28 254% 6.67 46% 0% 0.07 21% 0.31 1.08 0.01 1.12 1.35 - 0.63 4% 6% 1% 12% 7% 0% -62% 11.58 19.83 1.05 10.28 32.53 0.15 - 7.91 18.64 1.14 10.14 21.25 0.38 usd 'mn 89.63 vs 2011 act 2013 usd 'mn 22.37 1.80 4.61 % 33% 94.11 34% 187% 3.68 1.19 (0.09) 0.14 11.27 0.15 (0.38) 47% 6% -8% 1% 53% 100% -100% 3Yrs F'cast 2014 100.05 106.14 7.49 7.43 7.96 7.90 8.45 8.38 12.16 20.82 1.10 10.79 34.15 0.16 - 12.93 22.13 1.17 11.47 36.31 0.17 - 13.72 23.48 1.24 12.17 38.52 0.18 - Overall strong revenue growth in 2011 versus 2010 driven by CEA, SL and ZM. 2012 budget increases are driven by CEA, Franco WA, DRC &amp; TZ, and Zambia CEA growth majorly driven by Kibali &amp; Mongwalu SOW doubling over PY, and addition of (Loncor Resources) FY impact of LMC in 2011 Significant change in SOW from 5k meals to about 27k meals in Tonkolili In Liberia Putu Iron Construction project ended in 2010, accounting for drop in revenues in 2011 In Zambia LMC increased SOW from 79k 2010 to 88k meals in 2011; New projects in 2011: Manyama Maintenance, Kalumbila and Teichman in DRC 14 STRICTLY PRIVATE &amp; CONFIDENTIAL 2015 </li> <li> Key ratios 2010 US$M 2011 US$M 2012 Budget US$M 2013 Fcast US$M 2014 Fcast US$M 2015 Fcast US$M Revenues 49.6 67.3 89.6 94.1 100.1 106.1 Gross Margin 21.1 27.2 42.3 45.0 50.3 53.8 Earnings -0.7 2.4 6.4 6.6 6.8 7.8 EBITDA 2.0 4.5 **9.0 9.5 10.0 10.6 GM % 43% 40% 47% 48% 50% 51% Earnings % -1% 4% 7% 7% 7% 7% EBITDA % 4% 7% 10% 10% 10% 10% ** requires reconfirmation as capex requirements incomplete 15 STRICTLY PRIVATE &amp; CONFIDENTIAL </li> </ul>