Equity Capital Raising Presentation 9 January 2015
Contents Executive Summary Corporate Snapshot Business Overview - Historical Strategy & Challenges Key Initiatives Senior Debt Arrangements Outlook Earnings Guidance Update Rationale For Supporting The Offer Capital Raising…
Executive Summary Titan has today announced: a placement to a new cornerstone investor, Ausdrill International Pty Ltd, a wholly owned subsidiary of Ausdrill Ltd (ASX:ASL) a 3 for 5 entitlement offer equity capital raising to…
Corporate Snapshot Business description Capitalisation (A millio ns, except per share amo unts) ASX listed company providing diversified energy and infrastructure services to the oil Sha re pri ce (17/12/14) 0.23 and gas, mining,…
Strategy & Challenges Market conditions are currently challenging, Titans long term strategy remains intact Strategy World class safety Achieving zero harm to our people, our customers and the community. QLD CSG 20+ year LNG…
Key Initiatives Restructure of camp lease arrangements New commercial arrangements in place with two key suppliers, one now in effect. The other is conditional upon successful completion of an equity capital raising of at least 3m and…
Key Initiatives Continued Organisational restructure resulting in fixed cost savings 1.8m in FY15 (2.6m annually) Reduction of corporate and operational headcount by 125 FTE, down from 295 at 30 June 2014 Review of all costs, cessation…
Senior Debt Arrangements Important changes Titan has amended its funding arrangements with incumbent senior lender (GE) as follows: revise the cash flow related covenant calculation; suspend the camp and rig utilisation financial…
Outlook Challenge and opportunity Recent key initiatives position the business to respond to improved demand and meet the changing industry needs for integrated turnkey solutions QLD CSG-LNG market transitioning from high-growth…
Earnings Guidance Update Earnings guidance update Since last market update on 2 October 2014, market conditions have remained soft. Expected EBIT loss for the 6 months to 31 December 2014 of 4.0m, excluding the Hofco retention payment…
Rationale For Supporting The Offer Increased balance sheet strength and flexibility Introduction of a new cornerstone investor with industry experience and provides potential opportunities for cooperation between our companies for the…
Capital Raising Summary Titan is undertaking a 6.1 million partially underwritten equity capital raising via: a 1.0 million placement to a cornerstone investor, Ausdrill International Pty Ltd (a wholly owned subsidiary of Ausdrill Ltd…
Funding Impact Share offer strengthens the balance sheet Sources m Uses m Entitlement offer (if fully 5.1m Hofco retention payment 1.9m subscribed Placement to cornerstone Cash to balance sheet for 1.0m 3.7m investor working…
Pro-forma Statement of Financial Position Pro-form a Effect of cam p Pro-form a Actual audited 30 Trading to 30 Entitlem ent Offer unaudited 30 lease restruc- unaudited post June 2014 Novem ber 2014 + placem ent Novem ber 2014 ture…
Notes To The Pro-forma Statement of Financial Position Set out on the previous slide is the audited Statement of Financial Position for the Company as at 30 June 2014, adjusted for the following: the Company's trading for the 5 months…
Indicative Timetable Business Date Day Capital Raising: Accelerated Non-renounceable Entitlement Offer Institutional Offer Announce capital raising details (prospectus, 3B) (pre open). Execute underwriting 0 Fri 09-Jan agreement…
Key Risk Factors Risks (cont.) Satisfaction of conditions precedent in relation to the camp lease restructuring agreement One of the camp lease restructuring agreements is subject to the following conditions precedent: The company…
Key Risk Factors Risks (cont.) Contractual risks Titan's financial performance is reliant on the revenue produced from the utilisation and productivity of its key assets. To ensure that the productivity of the Companys assets is…
Key Risk Factors Risks (cont.) Reversal in outsourcing trends Titan is dependent on customers continuing to outsource drilling, field accommodation and other services. Should customers undertake these works then the reduced need for…
Key Risk Factors Risks (cont.) Industrial accidents continued Occupational health and safety and environmental performance is very important to our clients and as such, industrial incidents may impact the ability of Titan to complete…
Key Risk Factors Risks (cont.) Other material risks: Equipment constraints In order to conduct its business, the Company relies on purpose-built drilling rigs, temporary accommodation camps and other assets. Titan may have difficulty in…
Key Risk Factors Risks (cont.) Share market risk The market price of Shares can be expected to rise and fall in accordance with general market conditions and factors specifically affecting the Australian resource services sector in…
Selling Restrictions This Presentation has been prepared for information purposes only and is not a prospectus, disclosure document or other offering document under Australian law or under any other law. The distribution of this…
Appendix
Titan Historical Financial Overview Income statement, balance sheet and cashflow statement Income statement FY12 FY13 FY14 Balance sheet FY12 FY13 FY14 Atlas 24.5 35.5 42.0 Assets RCH Camps 9.1 33.9 39.1 Cash and cash equivalents 1.4…
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