Newalta presentation13
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Transcript of Newalta presentation13
CIBC EASTERN INSTITUTIONAL INVESTOR CONFERENCE SEPTEMBER 19, 2013
This presentation contains forward-looking statements which are based on current views and assumptions and are subject to uncertainties which are difficult to predict. These forward-looking statements include future operating and financial results, business prospects and strategy, realization of anticipated benefits of growth capital investments, acquisitions and technical development initiatives, industry conditions, the amount of dividends declared or payable in the future and future capital needs. Please refer to Newalta’s continuous disclosure documents for reference to certain risks, uncertainties and assumptions which may cause actual results and performance to differ materially from future results and performance that may be expressed or implied by these forward-looking statements.
This presentation also contains references to certain financial measures that do not have any standardized meaning prescribed by International Financial Reporting Standards and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined in Newalta’s continuous disclosure documents.
FORWARD LOOKING STATEMENTS
UNIQUE BUSINESS MODEL Engineered environmental solutions Partnering with customers Focus on recovery and recycling
INDUSTRY LEADER
Average 25% growth per year Grew to >2000 people, 85 locations,
>250 operating permits Increased dividend Committed to innovation Developed onsite business model
INVESTMENT HIGHLIGHTS
Expect average annual growth of ~15% Excellent organic growth opportunities:
• Grow onsite contracts • Develop U.S. business • Add and expand facilities • Commercialize new processes
GROWTH OPPORTUNITIES
THREE GROWTH ENGINES
Leading our growth North American energy market is a key opportunity First-mover position
NEW MARKETS
Onsite contract model, recovery at source
Cost and environmental benefits Market leader in SAGD
slop-oil processing Well positioned for growth
NEW MARKETS – HEAVY OIL
Expanded to oil sands mining sites to treat mature fine tailings
Secured long-term contracts with Shell and Syncrude
NEW MARKETS – HEAVY OIL
NEW MARKETS - U.S.
Apply proven processes and business model
Grow onsite contracts Build satellites and facilities
Delivers strongest returns Growing stable cash flow through long-term onsite contracts First-mover position will drive growth of >20% per year
NEW MARKETS GROWTH
($ million) 2010 2011 2012
Revenue 99 139 189
Divisional EBITDA 38 54 80
EBITDA growth 42% 48%
EBITDA/Assets 48% 43% 42%
Growth capital invested 14 27 67
Network of 30 facilities with excellent market coverage Strong customer relationships Expand onsite services and add satellite facilities to match demand Grow revenue 15% per year
OILFIELD
Deliver broad range of services to industrial customers
Network of integrated facilities across Canada
Modest growth through 2016 • Maximize returns • Expand onsite services • Capacity expansions
INDUSTRIAL
Grow onsite contracts Grow U.S. business Add mobile satellite and
fixed facilities Commercialize new processes
GROWTH SUMMARY
Revenue up 15%, Adjusted EBITDA up 27% Contributions from growth investments drove improvements Adjusted EBITDA in second half is expected to be at least 20%
higher than last year
Q2 FINANCIAL PERFORMANCE
Balanced growth with low risk and high return
Total Debt to Adjusted EBITDA target of 2.0
Trading at ~1.2X BV/share Total shareholder return of 20%
per year since 2010
INVESTMENT HIGHLIGHTS
TSX:NAL
As at Sept 11, 2013
Market capitalization $849 million
Share Price $15.41
Shares outstanding 55.1 million
52-week high-low $12.41 - $16.39
Dividend (Annualized) $0.44/share
Yield 2.9%
Book value per share $12.12
INVESTOR RELATIONS PRESENTATION – SUMMER 2013