asx code - lcm for personal use only · engineering consulting | project delivery | asset...

ASX code - LCM

2014 full year results investor briefing 28 August 2014

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2 Engineering Consulting | Project Delivery | Asset Performance FY14 Full Year Results 2 Engineering Consulting | Project Delivery | Asset Performance FY14 Full Year Results

performance summary FY14 against previous corresponding period (pcp)

• Financial results in line with guidance

• Transition program of strategic growth

initiatives and cost reductions

continues, significant cost benefits

realised in FY15

• Hydrocarbons customers contributed

57% of total revenue (FY13: 30%)

• Record work in hand entering FY15

• Solid balance sheet and net cash

position

• Workforce of 610 people (FY13: 640)

$127.9m Revenue

FY13: $129.5m

$5.0m Statutory NPAT

FY13: $11.1m

5.5c Full year dividend

FY13: 9.0c

$6.7m EBITDA^

FY13: $14.1m

7.2c Basic EPS

FY13: 16.6c

$12.2m Cash balance

FY13: $13.1m

^Refer to end note on page 19

as at 30 June 2014

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3 Engineering Consulting | Project Delivery | Asset Performance FY14 Full Year Results

financial summary FY14

• Revenue of $127.9m, down from $129.5m in

FY13

• Substantial work in hand from recent

awards expected to be realised in FY15

• Increased revenue from hydrocarbons

customers offset by pressure in minerals

and metals sector

• 23% of revenue derived from asset

performance services (FY13: 20%)

• EBITDA^ of $6.7m, down from $14.1m in FY13

• EBITDA includes the release of a $2.3m

outperformance provision, made at the time

of the acquisition of ITL Engineering for earn

out targets*

• EBITDA includes restructuring costs of

approximately $3.9m

• EBITDA margin of 5.2%, down from 10.9%

in FY13

Revenue ($m) EBITDA ($m)

*^Refer to end notes on page 19

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financial summary FY14 con’t

• NPAT of $5.0m, down from $11.1m in FY13

• Includes $1.2m of income tax credits related

to research and development incentives

(FY13: $1.8m)

• Benefits from R&D incentives are expected

to continue into FY15

• NPAT result represents basic earnings per share

of 7.2 cents, down from 16.6 cents in FY13

• Diluted earnings per share of 7.0 cents

• Final dividend of 3.5 cents per share (FY13: 4.5

cps)

• Full year dividend of 5.5 cents (FY13: 9.0 cps)

• Reflects payout ratio of 79%, ahead of stated

policy range of 40-60%, having regard to the

one-off nature of transition program

restructuring costs, strong cash flow, and

enhanced visibility of performance into FY15

• Share buy-back program to commence 11

September 2014, for an amount up to $2.0m of

issued share capital over 12 months

NPAT ($m) Full year dividend per share

(cents per share)

Earnings per

share

(cents per share)

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5

our business

We remain focused on

enhancing the value

and performance of

assets.

Our skill set extends

across all phases of

the asset and project

lifecycle.

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• Strategically significant contract awards and extensions of scope with Epic Energy, Samsung C&T, Oil

Search and Chevron Australia

• Recurring base load of work activity continues with a large portfolio of small engineering consulting

assignments

• Primarily orientated to support brownfield (existing) assets, targeted participation in major greenfield

projects

• Over 60% of revenue derived from top 20 customers

• Trained 6000 people across a spectrum of industries through Competency Training

representative customers

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adapting to market opportunities

In FY14:

• Continued expansion in hydrocarbons,

with traction gained in asset performance

services across multiple sectors

• Oil and gas customers engaged in solid

level of project activity

• Minerals, metals and key infrastructure

customers remained focused on reducing

costs, extracting greater value from

operating assets and preserving capital

In FY15:

• Retain focus on value creation, innovation,

and operating performance improvements

for customers across all markets

• Investment into key growth initiatives will

capture further market opportunities

• Revenue contribution from hydrocarbons

customers expected to grow based on an

anticipated increase in brownfield activity

• Capital spend in infrastructure sectors

presenting longer term opportunities

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our strategy FY15+

Our strategy for growth will be

delivered through a targeted plan

focused on developing services,

people and processes that

enhance the value and

performance of our customers’

assets.

Our focus will continue to be

oriented towards existing

(brownfield) assets.

• Strengthen core skill set and develop new services

• Targeted acquisition strategy to grow capabilities

and geographic footprint

• Strengthen Asset Performance offering

• Develop people, processes and

technology-based solutions that drive

innovation

• Improve knowledge share between our people, customers and industry

• Develop complementary partnerships and alliances

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9 Engineering Consulting | Project Delivery | Asset Performance FY14 Full Year Results 9 Engineering Consulting | Project Delivery | Asset Performance

• Extending our capabilities in

oil and gas processing,

pipelines and facilities and

tailoring solutions to meet the

specific requirements of our

customers

• Reinforcing and expanding

our core engineering

competencies, including

cementing our position as a

leading control systems

integrator

• Enhancing our delivery of

Consulting to EPC

(Engineering, Procurement

and Construction) solutions,

focusing on quality,

responsive and cost effective

delivery

• Further development of ‘front-

end’ specialist technical

consulting services in areas

such as concept design,

feasibility studies, project

planning, process consulting

and compliance services

• Deepening our Asset

Performance services

including through Competency

Training and Competency

Assurance

• Focused acquisition

strategy to expand our

capabilities and geographic

presence, particularly in the

brownfield hydrocarbons

market

• Targeted pursuit of

complementary partnerships

and alliances.

strategic priorities FY15 F

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Outlook FY15

“LogiCamms has prioritised the implementation of key growth initiatives and a

transition program that is resetting the business for high performance within a

challenging market environment. With a record level of secured work in hand and

steady opportunity pipeline, our start to the 2015 financial year is encouraging.

LogiCamms’ leaner organisational design and empowerment of our people will

support an environment of collaboration and responsiveness – the key strengths

of our business as defined by our customers.

Based on strong work in hand, lean organisational design and a focused program

of strategic initiatives, the Company forecasts revenue growth and an EBITDA

margin of 8% to 10% for FY15.”

- Matthew Adamo, Managing Director

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appendices

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LogiCamms at a glance

LogiCamms is a professional

engineering and consulting

services company across

Australia and New Zealand.

Key industries:

• Hydrocarbons

• Minerals and metals

• Infrastructure

Our purpose is to enhance the

value and performance of

assets.

610 people

8 offices

57% revenue from hydrocarbons

customers in FY14

2007 year listed on ASX F

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Description of Services Control Systems

Engineering Consulting & Sustaining Capital Projects

EPC & EPCM

Value Creation

Leading integrator of major control systems

Multiple technology vendors

Functional safety experts

Focus on innovation Transferable and

scalable design In-house specialists High value

engineering

Scalable EPC and

EPCM delivery from a consultant

Accelerated models Established partnerships

with constructors & vendors

Key Contracts

• Samsung C&T, Roy Hill mine control system, WA

• Wiggins Island Coal Export Terminal, QLD

• Oil field development study, WA

• Methanex New Zealand, engineering consulting and sustaining capital projects

• Origin Energy & Santos upstream, QLD

• Epic Energy, EPC

projects for Moomba to Adelaide Pipeline, SA

• BW Offshore, EPC boiler module, NZ

• Ballance Agri-Nutrients, NZ

work snapshot – engineering & projects

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Description of Services

Maintenance system development Shutdowns / turnarounds Asset integrity and asset

support

Value Creation

Seamless start-up support for greenfield projects

Long term asset performance strategies

Effective change management skill set

Specialist project management expertise

Cost, schedule and safety focus

Maintain and optimise

integrity of operating facilities

24-hour on- and off-site support

Key Contracts

• Chevron Australia, Gorgon LNG maintenance system, WA

• Origin Energy maintenance system, QLD

• Various mine sites, QLD

• ConocoPhillips, Darwin LNG shutdowns

• Ballance Agri-Nutrients, plant turnaround, NZ

• BW Offshore FPSO shutdown project, NZ

• BHP Billiton Olympic Dam, process control support, SA

• ConocoPhillips, Bayu-Undan

• Oil Search, asset integrity campaign, Papua New Guinea

work snapshot – asset performance

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Description of Services

Training and development solutions

Competency assurance management systems

Professional and technical training courses

Value Creation

Workforce readiness and development

Specialised and custom training packages

E-learning packages

Internal management of workforce competency

Learning and development framework

Training manuals and procedures

Verification of Competencies (VOCs)

High voltage operations Hazardous areas Project management On- and off-site delivery

Key Contracts

• Santos • Origin Energy • BHP Billiton • Rio Tinto • Chevron Australia • ConocoPhillips

Australia

• QGC • Oil Search • Ballance Agri-Nutrients • SIMTARS

• Oil Search • Woodside • Monadelphous • Fluor

work snapshot – training & assurance

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financial summary FY14

FY14 FY13 Comparison

A$m Statutory Results to 30 June 2014

Statutory Results to 30 June 2013

Change

Revenue $127.9m $129.5m -1%

Gross Profit Gross Profit %

$49.5m 38.7%

$52.5m 40.5%

-6%

EBITDA EBITDA %

$6.7m 5.2%

$14.1m 10.9%

-53%

EBIT $4.5m $13.0m -65%

NPAT NPAT Margin (%)

$5.0m 3.9%

$11.1m 8.6%

-55%

Operating Cash Flow $5.6m $14.6m -62%

EPS (Basic) (cents per share)

7.2c 16.6c -57%

DPS (cents per share, ff)

5.5c 9.0 -39%

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balance sheet (June 2014) – key items

Balance Sheet Item Balance A$m Comparison to 30 June 2013

Comments

Cash $12.2m $13.1m • Strong positive operating cash flow continued

investment in key business systems and payment of dividends

Current Receivables & Work In Progress

$29.1m $33.4m • Continued emphasis on cash collection,

managing projects and billing of work in progress

Current Trade and other Payables

$7.9m $9.3m • Ongoing focus on working capital management

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• 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 based solely on 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 does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company.

• 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.

End Notes ^ Earnings Before Interest Tax Depreciation and Amortisation. The reference to EBITDA is unaudited and unreviewed however is based on amounts extracted from the reviewed financial statements and reconciles to the profile before and after income tax as reported in the Condensed Consolidated Income Statement contained within the Company’s Financial Report and Appendix 4E for FY14 as follows:

The presentation of EBITDA is intended to provide a measure of the Group’s performance before the impact of non-cash expense items such as depreciation and net finance income.

*Despite solid earnings performance in New Zealand the provision release was realised due to earnings growth in New Zealand for FY14 being below defined outperformance targets established at the time of acquisition. The total provision made on acquisition was NZD 5.0 million (AUD 4.2 million) and following the release of AUD 2.3 million, AUD 1.9 million remains in place for potential payments to the vendors of ITL Engineering for FY15 financial outperformance.

TRIFR = the Total Recordable Injury Frequency Rate is a rolling 12 month average measure of safety performance.

disclaimer & notes

30 June 2014 30 June 2013

Net Profit Before Tax

$4.6m $13.5m

Net finance income ($0.1m) ($0.5m)

Depreciation $2.2m $1.1m

EBITDA $6.7m $14.1m

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19 Engineering Consulting | Project Delivery | Asset Performance FY14 Full Year Results 19 Engineering Consulting | Project Delivery | Asset Performance

further information

Registered Office

433 Boundary Street

Spring Hill, Brisbane

Queensland, Australia 4000

Tel. +61 7 3058 7000

Investor Relations

Matthew Adamo

Managing Director

Tel. +61 7 3058 7205

Our Values

Web www.logicamms.com.au

Media Enquiries

Alasdair Jeffrey

Rowland

Tel. +61 7 3229 4499

Paul Bowker

Chief Financial Officer

Tel. +61 7 3058 7205

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