for personal use only march - australian securities exchange · 2013-03-05 · and russia marketing...
TRANSCRIPT
Investor PresentationMarch 2013
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Corporate Snapshot
Capital Structure Share Price Performance – 1 Year
Shares on issue 132,157,097Options on issue NilShare price 38cMarket cap $50.2m (undiluted)Cash (28/02/2013) $8.0m (6 cents per share)Debt (28/02/2013) $0.0m Enterprise Value $42.2m (32 cents per share)
Directors & Management Shareholder Breakdown
Ken Baxter Non Executive Chairman Directors & Management 19%David Brown Non Executive Director Top 20 Shareholders 62%John Parsons Non Executive DirectorFred Grimwade Non Executive Director Substantial Shareholders (Non Management)David Kiggins Non Executive Director The Skye Alba Fund 7.95%Vance Stazzonelli Chief Executive Officer Private Portfolio Managers 9.76%
NAB 5.65%
$0.20
$0.25
$0.30
$0.35
$0.40
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Company Overview
X‐Ray Flux and chemicals
Platinum Labware Specialised furnaces and general laboratory
equipment
Manufacturer of consumables and equipment for mining and industry, for X‐Ray Fluorescence (XRF) analysis – a powerful long‐established analytical technique, vital to the discovery, evaluation, qualification and production of most metals (except gold)
Offices in Perth and Melbourne with 65 employees across Australia, and a global network of distributors
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Our Products
Products
LaboratoryExploration
MiningRail
Stock & Blend
Shipping
Industry
Samples
Samples
X‐Ray Flux Fusion MachinesPlatinum Labware
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The XRF Analysis Process
Drill core is sent from the field to the laboratory
The drill core is then processed into a fine dust
The mineral dust is then fused into a glass bead using XRF Scientific’s products
The glass disk is presented into
an x‐ray spectrometer for analysisF
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Revenue Base
95%
5%
Industry Exposure
Mining
Industry45%
19%5%
8%
18%
5%
Commodity Exposure (Estimated)
Iron Ore
Nickel
Copper
Mineral Sands
Other Base Metals
Non Mining (Industry)
28%
47%
25%
Customers
Miners
CommercialLabs
Others
30%
70%
International Sales
International
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Results Snapshot
1.7
2.7 2.62.9
3.5
1H11 2H11 1H12 2H12 1H13EBITDA ($m)
8.6
11.712.4
13.4 13.6
1H11 2H11 1H12 2H12 1H13Sales Revenue ($m)
1.0
1.6 1.6
2.0
2.3
1H11 2H11 1H12 2H12 1H13NPAT ($m)
Revenue up 10% on 1H12 EBITDA up 34% on 1H12 NPAT up 39% on 1H12
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Half Year Results – Overview
($m) 1H13 1H12 Change %
Revenue 13.6 12.4 10%
EBITDA 3.5 2.6 34%
Profit before tax 3.3 2.3 39%
Net profit after tax 2.3 1.6 39%
Earnings per share (cents) 1.7 1.3 33%
Weighted average no. of shares 129,338,832 125,503,805 3%
Number of employees 67 63 6%
Operating cash flow 1.8 2.0 (10%)
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Consumables
Overview for 1H13:
Revenue up 9% on PCP
NPBT up 21% on PCP
Growth in volumes over the PCP
Outlook for 2H13:
Increased levels of production mining and exploration activity
Continuation of expansion efforts into Brazil and Russia
Marketing of a specialised chemical used in iron ore analysis process
($m) 1H13 1H12
Sales revenue 3.9 3.6
Change in % 9% 33%
NPBT 1.4 1.2
Change in % 21% 46%
Margin % 37% 33%
432543
275418
816
1,229 1,191
1,5221,441
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
Net Profit Before Tax ($'000)
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Precious Metals
Overview for 1H13:
Revenue up 3% on PCP
NPBT up 13% on PCP
Strong level of new platinum labware sales
Outlook for 2H13:
Development of complementary products
International expansion efforts throughout the Americas
($m) 1H13 1H12
Sales revenue 5.3 5.2
Change in % 3% 44%
NPBT 0.9 0.8
Change in % 13% 45%
Margin % 17% 16%
674
321438
536 556
981
806920 914
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
Net Profit Before Tax ($'000)
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Capital Equipment
Overview for 1H13:
Revenue up 34% on PCP
NPBT up 155% on PCP
Streamlined product offerings, overhead costs and manufacturing processes
Removal of low margin OEM product revenue
Outlook for 2H13:
Steady CAPEX order levels
New product developments will be progressed for release in FY14 – efficient R&D processes
Greater co‐ordination of resources between WA and VIC manufacturing plants
($m) 1H13 1H12
Sales revenue 5.2 3.9
Change in % 34% 52%
NPBT 0.9 0.3
Change in % 155% 229%
Margin % 17% 9%
1,004
430
12449
10528
345 373
881
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
Net Profit Before Tax ($'000)
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Growth Strategy
Acquisitions: Criteria Be a business we understand Have a technology base and barriers to
entry Strong synergies with our existing
business Delivery of more products to our existing
customer base EPS accretive Cash flow positive
Business Types Consumables or services, CAPEX products
with repeat revenue Exposure to additional commodities Expansion of sales in existing product
lines
Acquisitions: Criteria Be a business we understand Have a technology base and barriers to
entry Strong synergies with our existing
business Delivery of more products to our existing
customer base EPS accretive Cash flow positive
Business Types Consumables or services, CAPEX products
with repeat revenue Exposure to additional commodities Expansion of sales in existing product
lines
Organic Growth: Increased volumes in mining Geographical expansion New product releases Adoption of XRF as an analytical
technique
Organic Growth: Increased volumes in mining Geographical expansion New product releases Adoption of XRF as an analytical
technique
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Contact Information
Tel: (08) 9244 060098 Guthrie St. Osborne Park WA
Vance Stazzonelli – [email protected]
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Disclaimer
No responsibility for contents of Investor Presentation•To the maximum extent permitted by law, XRF Scientific Limited and representatives:•make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Investor Presentation or any other written or verbal communication transmitted or made available to any recipient;•accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Investor Presentation or any other written or verbal communication transmitted or made available to any recipient; and•accept no responsibility for any errors or omissions from this Investor Presentation whether arising out of negligence or otherwise.
Accuracy of projections and forecasts•This Investor Presentation includes certain statements, opinions, estimates, projections and forward looking statements with respect to the expected future performance of XRF Scientific Limited. These statements are based on, and are made subject to, certain assumptions which may not prove to be correct or appropriate. Actual results may be materially affected by changes in economic and other circumstances which may be beyond the control of XRF Scientific Limited. Except to the extent implied by law, no representations or warranties are made by XRF Scientific Limited, its advisers or representatives as to the validity, certainty or completeness of any of the assumptions or the accuracy or completeness of the forward looking statements or that any such statement should or will be achieved. The forward looking statements should not be relied on as an indication of future value or for any other purpose.
No offer to sell or invitation to buy•This Investor Presentation does not, and should not be considered to, constitute or form part of any offer to sell, or solicitation of an offer to buy, any shares in XRF Scientific Limited, and no part of this Investor Presentation forms the basis of any contract or commitment whatsoever with any person.This Investor Presentation does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not permitted under applicable law. Distribution of this Investor Presentation in or from certain jurisdictions may be restricted or prohibited by law. Recipients must inform themselves of and comply with all restrictions or prohibitions in such jurisdictions. Neither XRF Scientific Limited, its advisers or representatives accept any liability to any person in relation to the distribution or possession of this Investor Presentation from or in any jurisdiction.
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