Foraco International Sa · TSX:FAR
Foraco International Sa — Q4 2014 Earnings Presentation
28 slides from Foraco International Sa's earnings presentation, Mar 3, 2015
Slide 1: A Global Leader in Mineral Drilling Services
A GLOBAL LEADER IN MINERAL DRILLING SERVICES TSX: FAR
Slide 2: Table of Contents
TABLE OF CONTENTS – Slide # 3. Forward Looking Statements 4. Key Takeaways – Points 1 to 4 5. Foraco Market Profile (as of March 3, 2015) 6. Tracking Stock Performance (as of March 3, 2015) 7. Key Takeaway - Point 1 - Global Mineral & Water Driller 8. Strong & Experienced Management Team 9. Global R
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, but are not limit
Slide 4: Key Takeaways
KEY TAKEAWAYS 1. Global Mineral & Water Driller 2. Diversified by Commodity & Geography 3. Financial Data 4. Adapting to a Changing Market TSX: FAR 4
Slide 5: Foraco Market Profile
FORACO MARKET PROFILE Stock Symbol: TSX: FAR Shares Issued and Outstanding: 90.0 million Share Price (as of March 3, 2015): C$0.50 Market Capitalization: C$44.97 million 2013 Dividend: Nil 2012 Dividend: C$0.055 per share Major Shareholder: 42.0% basic JPC-DS1 1 Shares of JPC-DS are held by Financiè
Slide 6: Tracking Stock Performance
TRACKING STOCK PERFORMANCE 1 Year 5 Years As of March 3, 2015 TSX: FAR 6
Slide 7: Global Mineral & Water Driller
KEY TAKEWAY – Point 1 Global Mineral & Water Driller TSX: FAR 7
Slide 8: Strong & Experienced Management Team
STRONG & EXPERIENCED MANAGEMENT TEAM • Director & CEO since incorporation Daniel Simoncini • Over 30 years of industry experience Chairman and Co-CEO • Based in Singapore • Director & Executive Officer since incorporation Jean-Pierre Charmensat • Over 35 years of management experience Co-CEO and CFO
Slide 9: Global Reach
GLOBAL REACH Canada United States Brazil Mexico Argentina Chile Peru England France Germany Turkey Russia Burkina Faso Chad Republic of Congo Ivory Coast Ghana Guinea Mali Niger Kazakhstan 24 countries Australia New Caledonia Singapore TSX: TSX:FAR FAR 9
Slide 10: Skilled People Based Business
SKILLED PEOPLE BASED BUSINESS • 1,600+ experienced employees located around the globe TSX: FAR 10
Slide 11: Versatile and Modern Drill Fleet
VERSATILE AND MODERN DRILL FLEET Global Drill Rig Fleet 302 Drill Rigs 62 Rotary 212 Diamond 28 Combination TSX: FAR 11
Slide 12: Delivering Drilling Solutions
DELIVERING DRILLING SOLUTIONS At Every Stage of the Mine Life Cycle Exploration Geotechnical Drilling Activity Metallurgical Sampling Water TSX: FAR 12
Slide 13: Competitive Landscape
COMPETITIVE LANDSCAPE 1200 Global Mineral Rig Counts 1000 950 800 708 600 400 302 234 220 214 200 120 91 85 69 50 26 0 Ausdrill Orbit Garant Cabo Christensen Mining Geodrill Longyear Drilling Foraco Energold Drilling Geotec Capital Boyles Swick Major Boart Layne • Highly fragmented market with a sma
Slide 14: Consistent Strategy
CONSISTENT STRATEGY Focus on Leveraging our Position 1 Growth in the Americas Solidify our preferred 2 driller status with Majors Continue to capitalize 3 on African opportunities 4 Expand Asia, Far East and CIS presence TSX: FAR 14
Slide 15: Diversified by Commodity & Geography
KEY TAKEAWAY – Point 2 Diversified by Commodity & Geography TSX: FAR 15
Slide 16: Diversified Commodity Exposure
DIVERSIFIED COMMODITY EXPOSURE Revenue By Commodity Full Year 2014 OIl & Gas 3% Base Metals 2% Coal 12% Uranium 1% Gold 31% Water 12% Nickel 11% Copper 14% Iron 14% TSX: TSX:FAR FAR 16
Slide 17: Expanding Geographic Coverage
EXPANDING GEOGRAPHIC COVERAGE Revenue By Region Full Year 2014 • A global leader in the mineral drilling industry. • Presence in all major mining markets. TSX: TSX:FAR FAR 17
Slide 18: Leveraging Strong Customer Relationships
LEVERAGING STRONG CUSTOMER RELATIONSHIPS Revenue By Customer Full Year 2014 Main Customers 14% 86% Majors & Multinational Institutions Juniors TSX: FAR 18
Slide 19: Financial Data
KEY TAKEAWAYS – Point 3 Financial Data TSX: FAR 19
Slide 20: Selected Financials
SELECTED FINANCIALS 1 Includes amortization and depreciation expenses ² Net Cash generated from operations less Capex Source: Company Reports. TSX: FAR 20
Slide 21: Selected Financials
SELECTED FINANCIALS Source: Company Reports. TSX: FAR 21
Slide 22: A Targeted Acquisition Strategy to Reach a Global Scale
A TARGETED ACQUISITION STRATEGY TO REACH A GLOBAL SCALE 2007 2008 2009 2010 2011 2012 January ‘07: September ‘08: April ‘09: April ‘10: April ‘10: April ‘12: November ‘12: Acquisition Connors Drilling North West Mosslake Eastern Drilling Adviser Drilling Servitec John Nitschke History Sequoia Drilli
Slide 23: Adapting to a Changing Market
KEY TAKEAWAY – Point 4 Adapting to a Changing Market TSX: FAR 23
Slide 24: Mineral Drilling Services Macro Environment
MINERAL DRILLING SERVICES MACRO ENVIRONMENT • Metals pricing is the key driver to mineral Worldwide Mineral Exploration Spending1 drilling. Prices entered a bear market in the second half of 2012 and have continued to deteriorate since then. • Majors have reviewed their cost structures and significa
Slide 25: Adapting to a Changing Market
ADAPTING TO A CHANGING MARKET Macro Actions towards a leaner, more efficient Organization Environment ready for the next phase of Growth Pressures Rigs Moved to more Active Regions Decrease in Activity Reduced Total Headcount from 4,400 (2012 peak) to 1,600 today Downward Pricing Reduced Supplier Co
Slide 26: Compelling Investment Proposition
COMPELLING INVESTMENT PROPOSITION • World’s 3rd Largest Global Mineral Driller. • Reliable and innovative, with a safety and customer first culture. • Solid management team, with a world-class customer base who, on average, rated FAR services at 82.4/100 in a 2014 customer survey. • Increased Financ
Slide 27: For More Information Please Contact
FOR MORE INFORMATION PLEASE CONTACT Brenda Patterson-Mack [email protected] T: + 1.877.795.6363 | M: + 1.705.825.0169 www.foraco.com TSX: FAR TSX: FAR 27
Slide 28: Analyst Coverage
ANALYST COVERAGE Broker Analyst Contact CIBC World Markets Kevin Chiew 1.416.594.7457 Cormark Securities Maggie MacDougall 1.416.943.6733 Mackie Research Capital Ryan Hanley 1.416.860.8837 TSX: FAR 28