QMASTOR Limited. Managing Directors Presentation Annual General meeting

Transcription

1 QMASTOR Limited Managing Directors Presentation 2010 Annual General meeting 23 rd November

2 Disclaimer This presentation contains forward-looking statements concerning the future performance of QMASTOR s business, its operations, and its financial performance and condition. These forward-looking statements are based on management s current expectations and judgment. The Company cautions readers that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates, or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including but not limited to economic conditions, technological change, and changes in competitive factors, many of which are beyond the Company s control. 2

3 1, Review of FY 2010 Results 2, Algosys Acquisition 3, Equity Raising 4, Outlook

4 Financial Results Revenue Down 19% to $7.336M ($9.03M 2009) Reflects reduced capital spend by customers. Primarily Western Australian iron ore NPAT Down 75% to $0.404M ($1.630M 2009) Reflects strategic spend on new products and global expansion Operating EPS 0.78 cents (4.02 Cents 2009) Dividend 0.5 cents (1.5 Cents 2009)

5 FY 2010 Operational Highlights Expansion into new global markets Opened Denver office to support North America Opened Brazilian office to support South America Further strengthened South African office Released new performance management product QMetrics Significant investment in new products PortVu and Horizon APS $3.1M investment in these two products 4 Horizon sites now in production PortVu nearing completion Above investment undoubtedly large factor in winning HVCCC 5

6 Major Strategic Sale to Hunter Valley Coal Chain Coordinator (HVCCC) HVCCC responsible for mine gate to Vessel loading for the Hunter Valley Coal chain 35 mines, 1200 vessels, close 100M tonnes p.a Acquisition of IP that will further enhance Horizon and increase marketability QML Services FY 2010 Operational Highlights Performed well in difficult market Cross selling opportunities increasing Moving into the training market 6

7 FY 2010 Revenue by Source Similar to last years result 7

8 FY 2010 Revenue by Commodity Significant contraction of iron ore revenue as a % (44% in 2009) due to reduction of capital spend by large iron ore customers. 2011FY should see a recovery in sales to the iron ore market 8

9 FY 2010 Revenue by Region 18% from international sources targeting over 25% for FY2011 and 50% for FY2012 9

10 Awards QMASTOR s Pit To Port was voted by the mining industry as the Best Enterprise Management Software/Tool for mining in a recent High Grade survey 10

11 Post Year End QMASTOR awarded a major contract to improve management of the Exxaro supply chains in South Africa and Australia Exxaro is the fourth-largest South African coal producer with capacity of 45 million tonnes per annum and the third-largest global producer of mineral sands. Exxaro also has exposure to Iron Ore through its 20% ownership of the Sishen Iron Ore Company (SIOC) Major strategic sale for the Pit To Port in Africa. Expected to underpin the South African office and company growth in Africa

12 1, Review of FY 2010 Results 2, Algosys Acquisition 3, Equity Raising 4, Outlook

13 Acquisition Rationale Algosys presents an exciting growth opportunity for QMASTOR Highly Synergistic functionality already on the QMASTOR roadmap 3 Global agreements in place with majors including Vale Inco. Strong in base and precious metals provides access for QMASTOR to these clients Strong presence in North and South America Current Market leader Provides strong base for QMASTOR operations in Canada plus extra support for North and South American time zones and customers

14 Strong Historical performance 1 Acquisition of Algosys Inc (f) Revenue C$1,197,220 C$1,881,773 C$2,109,809 EBIT C$303,305 C$518,804 C$748,133 NPAT C$253,324 C$428,948 C$561,100 Algosys is expected to contribute approximately $1.6M in Revenue in 2011AFY The Algosys forecast for 2011CFY 1 is C$2.2 to C$2.9M (1) Based on Algosys forecasted revenue in Canadian Financial years 1 Nov -31 Oct.

15 Larger Client Base QMASTOR Customers Algosys Customers 15

16 Bigger Commodity Base QMASTOR systems are installed in the following commodities Coal Iron ore Nickel Bauxite Gold Mineral sands QMASTOR Customers Oil sands Copper Silver Lead Zinc Platinum Molybdenum Algosys Customers 16

17 Combined Install Base 17

18 Locations The addition of Algosys in Canada provides our North and South American customers with sales and support in their time zone 18

19 QMASTOR Products Pit to Port - Management information system for companies operating export, domestic bulk materials supply chains PortVu - Designed specifically for managing ports and terminals; SMS3D Three dimensional visualisation of parcels of commodities; accurate tracking of bulk materials Horizon APS - Enables supply chains to be modelled, planned and scheduled simply and efficiently QMetrics - Performance management tool ifuse - Enables the integration of mining systems 19

20 Algosys Products Bilmat- Data reconciliation & mass balancing engine More than 250 installs globally Metallurgical Accountant - Metallurgical accounting, mass balancing and production management for process plants and smelters. 20

21 1, Review of FY 2010 Results 2, Algosys Acquisition 3, Equity Raising 4, Outlook

22 Equity Raising 1 for 3 non-renounceable rights issue at $0.21per share to raise approximately $3.91 million Rights Issue closed on Wednesday the 17 th of November Issue closed oversubscribed by $0.88m The funds will be used to fund the acquisition of Algosys Inc and strengthen the balance sheet of QMASTOR Limited The board is sincerely thankful for shareholders continued support of QMASTOR

23 1, Review of FY 2010 Results 2, Algosys Acquisition 3, Equity Raising 4, Outlook

24 Strategies remain the same Fundamental strategies for the development of QMASTOR are: Continuous product development allows us to meet emerging market demands Significant global market share available; base established in Australia is the launching pad Structural changes (i.e. international offices) to achieve forecast growth Confidence in our ability to retain and attract new staff Acquisition opportunities to add new products and provide rapid access to new clients 24

25 Mining industry domain knowledge Our Competitive Advantages Bulk commodity grade and supply chain management Integration of complex information systems Track record in Australia; important in building profile internationally Staff with extensive experience supply chain, logistics, mining etc Products provide tangible and quantifiable results In boom times shipping/handling of more resources In slowdown cost management and better utilisation of resource 25

26 Outlook FY2011 FY 2011 underpinned by Exxaro and HVCCC sales Revenue target for FY2011 remains $14m (up 91% on FY2010) First half forecast is $5.4M Revenue(up 58% on FH2010) with a expected NPAT $0.35m (up 306% on FH2010). FY2011 target on track with $11.5m of revenue already expected International revenues 25% target this financial year; 50% by FY month pipeline now stands at more than $25m and growing Australian Bureau of Statistics forecast capital spending in mining is to increase 57% in FY

27 Outlook FY2012 Revenue goal for FY12 is $30m ($20m organic/$10m via acquisition). This can be delivered by: Continued Leader in a niche market Income model delivers dependable revenue base Diversified revenue sources International markets - 50% of 2012 Rev. from international markets Further acquisitions in the mining technology space that align with our M&A target guidelines: Niche Profitable Exposed to low number of competitors Good synergies with QMASTOR s existing business 27

28 Questions!