www.hydrodec.com
Hydrodec Group plc
“Re-emerging stronger”
Strategy update
Ian Smale, Chief Executive Chris Ellis, Chief Financial Officer 20 January 2015
Hydrodec Group plc Re- emerging stronger Strategy update Ian Smale - - PowerPoint PPT Presentation
Hydrodec Group plc Re- emerging stronger Strategy update Ian Smale , Chief Executive Chris Ellis , Chief Financial Officer 20 January 2015 www.hydrodec.com Precautionary Statement This presentation has been issued by Hydrodec Group plc
www.hydrodec.com
Ian Smale, Chief Executive Chris Ellis, Chief Financial Officer 20 January 2015
Hydrodec Group plc
This presentation has been issued by Hydrodec Group plc (“Hydrodec”) and is personal to the recipient. This presentation and these slides may not be reproduced or published in whole or in part for any purpose. This presentation and associated discussion includes forward-looking statements. Certain information contained in this presentation relating to Hydrodec has been compiled from public sources. All statements other than statements of historical fact included in this presentation, including without limitation those regarding the plans, objectives and expected performance of Hydrodec, are forward- looking statements. Hydrodec has based these forward-looking statements on its current expectations and projections about future events, including numerous assumptions regarding its present and future business strategies, operations, and the environment in which it will operate in the future. All information in this presentation is only accurate as at the date of this presentation. Forward-looking statements generally can be identified by the use of forward-looking terminology such as 'ambition', 'may', 'will', 'could', 'would', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek' or 'continue', or negative forms or variations of similar terminology. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors related to Hydrodec. By their nature, forward-looking statements involve risks, uncertainties and assumptions and many relate to factors which are beyond the control of Hydrodec, such as future market and economic conditions, external factors affecting operations and the behaviour of other market participants. Actual results may differ materially from those expressed in forward-looking statements. Given these risks, uncertainties, and assumptions, you are cautioned not to put undue reliance on any forward-looking statements. In addition, the inclusion of such forward-looking statements should under no circumstances be regarded as a representation by Hydrodec that Hydrodec will achieve any results set out in such statements or that the underlying assumptions used will in fact be the case. Other than as required by applicable law or the applicable rules of any exchange on which securities of Hydrodec may be listed, Hydrodec has no intention or obligation to update or revise any forward-looking statements included in this presentation. This presentation is for information only and does not constitute or form part of any offer or invitation to sell, or any solicitation of any
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Hydrodec Group plc
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Hydrodec Group plc
and Australia re-engineered
($1.6bn, growing 9% to 2017)
extraordinary recoveries (>99%)
end 2016
supply exclusivity
collaboration; patented opportunities for improvement
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Hydrodec Group plc
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Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Group III Base Oil Group I/II Base Oil Fuel Oil (3.5%) OSS ASP (PFO) OSS APP Margin
UK pricing linked to fuel oil High quality base oils resilient Adapting to changing markets
Hydrodec Group plc
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Hydrodec Group plc
expanded T-oil plant – commissioning 1Q15
3 integrated modules
with G&S Technologies integrates supply chain
plus 24.9% with further expansion
in US; access to voluntary carbon offset
leading collector/ processor of used oil
supply for unique UK re- refinery by end 2016
producer; low value/low margin
service offer based on convenience
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agreement with Southern Oil Company, Wagga Wagga offers significant efficiencies
stewardship/brand retained
Hydrodec Group plc
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Hydrodec Group plc
25.5 19.5 139.5 129.5
20 40 60 80 100 120 140 160 180 Automotive Industrial Litres (millions) OSS Remaining Oil
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Hydrodec Group plc
Advantaged UK location Petrochemical heartland; adjacent to existing infrastructure
Hydrodec Group plc
5,000 10,000 15,000 20,000 25,000 30,000 2011 H1 2011 H2 2012 H1 2012 H2 2013 H1 2013 H2 2014 H1
USD '000 Year
Total Revenue
500 1,000 1,500 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014
USD '000 Year
Underlying Operating EBITDA
1 including estimated receipts for business interruption coverage under Group insurance policy 2 EBITDA adjusted for growth expenditure of US$1.1 million (H1 2013: US$1.7 million) 1 2
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Hydrodec Group plc
Trading Performance Revenues up 36% to $54m - full year impact of OSS acquisition outweighing reduced income from US; US revenues: business interruption income and oil trading Total sales volumes up 26% to 48.6ml - trading sales only in US Group EBITDA - expected to improve over 2013 Milestones Insurance settlement delivered $18.75m net; created a “profit on disposal” of $1.4m US$10m, 7 year asset financing facility for Hydrodec of North America Submission of patent applications - Protecting patents, IP Exclusive UK licence and collaboration agreement for used oil re-refining in the UK with CEP – Basic engineering delivered, FEED commissioned
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Hydrodec Group plc
Delivering “the circular economy;” supported by the EU waste directive hierarchy Proven, successful businesses; clear, materially de-risked paths to growth; experienced board and management Proprietary, world leading technology; multi-feedstock applications; high value products Integrated business models; secure feedstock; offer options for consolidation Re-refined oils, returning oils for original purpose, “better than new” not reliant on subsidy; qualifying for carbon offset credits Expansion into base oil re-refining offers substantial organic growth with scope for market consolidation using proven technology
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Hydrodec Group plc
Hydrodec Group plc. 50 Curzon Street London W1J 7UW United Kingdom +44 (0)20 79079220 www.hydrodec.com