AJ Lucas : Investor Presentation

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AJ Lucas Group Limited

This Presentation has been prepared by AJ Lucas Group Limited (ACN 060 309 104) (AJL).

Summary information

This Presentation contains summary information about the AJ Lucas Group. This information is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor should consider when making an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act. This Presentation should be read in conjunction with AJL's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.

Not an offer

This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with ASIC) or any other law. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction.

Not investment advice

This Presentation does not constitute investment or financial product advice. It is not intended to be used as the basis for making a financial decision, nor is it intended to constitute legal, tax, or accounting advice or opinion. Recipients should make their own enquiries and investigations regarding any investment, and should seek their own professional advice on the legal, financial, accounting, taxation and other consequences of investing in any securities in AJL.

Forward looking statements

The Presentation contains forward looking statements. You should be aware that such statements are only estimates or predictions, which may be based on subjective judgments and assumptions as to future events, which may or may not occur and which are subject to inherent risks and uncertainties, many of which are beyond the control of AJL. Actual events or results may differ materially from the events or results expected or implied in any forward looking statement. No representation or warranty (whether express or implied) is made as to the accuracy or likelihood of fulfilment of any forward looking statement, including whether any aspect of AJL's proposed recapitalisation will be achieved.

Past performance

Investors should note that past performance, including past share price performance and pro forma historical information in this Presentation is given for illustrative purposes only and cannot be relied upon as an indicator of (and provides no guidance as to) future performance including future share price performance. The historical information in this Presentation is, or is based upon, information that has been released to ASX.

Disclaimers

Not all of the information contained in the Presentation has been subject to independent audit or review. No representation or warranty, express or implied, is made as to the currency, accuracy, fairness, sufficiency, reliability or completeness of the information, projections, opinions or beliefs contained in this Presentation. To the maximum extent permitted by law, no liability (including without limitation, any liability arising out of mistakes, omissions, misstatements, misrepresentations in the Presentation or out of any other fault or negligence) is accepted by AJL, its officers, employees or contractors or the Limited Parties for any loss, cost or damage suffered or incurred as a result of the reliance on such information, projections, opinions or beliefs. The Limited Parties make no recommendations or endorsements as to whether any recipient should participate in the Offer and, to the maximum extent permitted by law, disclaim any fiduciary relationship with any recipient.

Distribution restrictions

Neither the Presentation, nor any copy of it, may be taken, transmitted into or otherwise made available in the United States or any jurisdiction where their issuance, distribution or transmission are prohibited under the law of that jurisdiction. Any failure to comply with any such restriction may constitute a violation of relevant local securities laws.

Key financials
Market Cap as at 31 December 2015 (s/p 35¢)	A$94mm
Total Debt	A$116mm
Enterprise Value	A$210mm
Underlying Group EBITDA 30 June 2015A (full year)	A$9mm
Underlying Group EBITDA 31 December 2015A (half year)	A$8mm

AJL Nominees at Cuadrilla Board
Chairman/Kerogen	Roy Franklin
Kerogen	Ivor Orchard
AJL	Phil Arnall

Business Overview Ownership and governance

Key Shareholders
Kerogen Capital Specialist O&G private equity fund	52.6%
Paul Fudge unconventional energy specialist	12.4%
Andial Holdings	6.5%
Amalgamated Dairies	6.1%

AJL Board
Chairman	Phil Arnall
Director	Julian Ball
Director	Ian Meares
Director	John O'Neill
Director	Andrew Purcell

Capital Raises

Sep 11 A$14m

Feb 12 A$36m

Sep 12 A$40m

Feb 13 A$17m

Jun 13 A$149m

Total A$256m

500

450

400

Balance Sheet (A$ mm)

350

Historical Balance Sheet - AJ Lucas Group

4 Year Change

• A$356mm of new capital has been raised in 4 years.

  • A$256mm in equity

  • A$100mm in debt

300

250

200

150

100

50

0

Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

Trade and Other Payables ATO Liability

Other Debt Kerogen Debt Kerogen Equity Other Equity

-A$51 mm

-A$18 mm

-A$112 mm A$73 mm A$175 mm A$73 mm

• This has been applied to:

  • A$35mm in payments to the ATO

  • A$200mm in debt

    repayment/refinance

  • A$40mm for Cuadrilla

  • A$65mm in working capital/interest

Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

Total Equity 92 105 139 180 276 340 340 340 340

Total Debt* 254 271 276 308 190 153 141 131 147

Debt/Equity 2.8 2.6 2.0 1.7 0.7 0.4 0.4 0.4 0.4

Kerogen Equity 0% 13% 31% 47% 48% 48% 48% 52% 52%

A$248m increase in total equity A$108m decrease in total debt * includes Trade and other payables

payments