(1) Management's Discussion and Analysis and Newalta's Consolidated Financial Statements and notes are attached. References to Generally Accepted Accounting Principles ("GAAP") are synonymous with IFRS and references to Consolidated Financial Statements and notes are synonymous with Financial Statements.
(2) These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-GAAP financial measures are identified and defined throughout the attached Management's Discussion and Analysis.
(3) Includes Series 1 and Series 2 Senior Unsecured Debentures ("Senior Unsecured Debentures")
(4) Newalta has 54,410,235 shares outstanding as at February 13, 2013.
NEWALTA - WHO WE ARE
Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 facilities in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement.
Vision:
To be the North American leader in providing cost-effective engineered environmental solutions for our customers.
2012 Review:
---------------------------------------------------------------------------- Tactics Progress in 2012StrategicObjective--------------------------------------------------------------------------------------------------------------------------------------------------------Maximize Focus on productivity Excluding the impact of lowerFacilities improvements to drive prices received for ourProfitability incremental cash flow from recovered products, gross existing assets profit grew to 24% compared to 23% in 2011. --------------------------------------------------------- Transfer existing services Expanded oil recycling throughout the network to services into eastern Canada. offer full breadth of Expanded our western Canadian services to customers model to process oilfield across Canada waste in Atlantic Canada. --------------------------------------------------------- Expand Facility network to Constructed one satellite take advantage of growth in that will be commissioned in existing markets and new first half 2013. Identified opportunities and pursuing multiple locations in high activity areas. --------------------------------------------------------- Execute organic growth Completed over $40 million in capital projects organic growth projects in 2012.--------------------------------------------------------------------------------------------------------------------------------------------------------Recovery at Source Expand U.S. market presence Generated 25% revenue growth(Onsite) in the U.S. --------------------------------------------------------- Transition projects to Contracts now generate 9% of contract service total revenue, compared to 3% arrangements, specifically in 2011. to add 4 new long-term Commissioned a three-year contracts per year contract to process mature fine tailings ("MFT"), improving our stable stream of future cash flows. Continue to make good progress on our pipeline of contracts in the scoping and development stage. --------------------------------------------------------- Increase market share in Project revenue grew 12% project activity in across the network. multiple industry segments Projects generate 12% of total revenue, up from 11% in 2011. Commenced a multi-year arrangement in the U.S. to process slop oil emulsions on a customer's site in the Bakken. --------------------------------------------------------- In Onsite, execute organic Completed over $65 million of growth capital projects organic growth projects in 2012.--------------------------------------------------------------------------------------------------------------------------------------------------------Process Deliver two new commercial Invested $12 million ofCommercialization processes with wide capital in 2012. application to operations Two technologies in the every year demonstration phase, with commercial application expected in 2013. --------------------------------------------------------- Our Technical Development Ongoing. Assess pilot team will search globally projects in progress for and evaluate technologies commercial application and for commercial application testing within our facility network. --------------------------------------------------------- Utilize facility network to Ongoing. Upgraded wastewater expedite commercialization treatment plant to allow for demonstration scale testing.----------------------------------------------------------------------------
