for personal use only - monadelphous · 2013. 6. 7. · 2008 interim results presentation for...

2008 interim results presentation19 February 2008

For

per

sona

l use

onl

y

Rob VelletriManaging Director

Giles EveristChief Financial Officer

2

your speakers

For

per

sona

l use

onl

y

� HY08 highlights

� financials

� TSR performance

� people performance

� Operational reports:

� engineering construction (EC)

� maintenance & industrial services (MIS)

� electrical & instrumentation services (MIE)

� skystar airport services (SAS)

� Strategy & outlook

agenda

3

Rapid Growth Project 4, Port Hedland, WA

For

per

sona

l use

onl

y

� NPAT up 2% to $32.1m, EPS 38.6c & DPS 29c

� Revenue down 8% to $460.2m

� EBITDA up 5% to $51.4m, margins expanded to 11.2%

HY08 highlights

Financial

Operating

Strategic

� EC paused for breath while MIS grew strongly

� Pleasing safety performance trend

� Over $500m announced new project wins

� Long-term oil & gas wins

� Divestment of Skystar assets

� Further developments in global sourcing

4

For

per

sona

l use

onl

y

financial highlights

-21%92.072.6%Return on Equity (annualised)

32%22.029.0cpsffDPS

0%38.538.6cpsEPS

2%31.432.1$mNet Profit After Tax

5%48.751.4$mEBITDA

-8%499.4460.2$mSales Revenue

% ChangeDec-06Dec-07

5

For

per

sona

l use

onl

y

strong balance sheet

� Strong cash position

� $24.5m interim dividend payout

� High working capital movements and sharp increase in bank guarantee facilities

-18%9.88.0$mCapital expenditure

2%87 (95)89 (145)$mPerformance Bonds (Facility)

0%45.345.1$mNet Cash

-8%27.825.5$mDebt

-4%73.370.6$mCash


6

For

per

sona

l use

onl

y

revenue & key drivers

sales contributions %sales revenue $m

HY08FY07FY06FY05FY04

H1 H2

460.2

220.8

390.6

532.0

963.7

7

66% 64%56%

25% 27%34%

8% 7% 8%

2%2%2%

HY07 H207 HY08

EC MIS MIE SkystarFor

per

sona

l use

onl

y

NPAT & margins

NPAT $m NPAT margin %


H1 H2

32.1

8.5

16.7

29.4

60.4

8

6.2%5.9%

4.5%4.2%

5.1%

4.0%3.5%

6.3%

7.0%


H2 H1H1 H2For

per

sona

l use

onl

y

NPAT contribution analysis

9

NPAT $m

32.1

(0.3)0.0

(0.9)0.8

4.2

(3.2)31.4

HY07 NPAT Sales Growth MarginGrowth

Acquisitions D&A Interest (Net) Tax HY08 NPAT

For

per

sona

l use

onl

y

EBITDA & margins

EBITDA $m EBITDA margin %


H1 H2

51.4

16.1

29.0

49.0

94.0

10

9.8%9.8%

8.0%7.7%

8.5%

6.8%6.9%

11.2%

9.8%


H2 H1H1 H2For

per

sona

l use

onl

y

operating cash flow

11

operating cash flow (OCF) $m

3.9

15.7

37.1 39.2

2.7

8.3

29.7

57.1

14.9

FY04 FY05 FY06 FY07 HY08

H1 H2

For

per

sona

l use

onl

y

(0.6)

(8.2) 6.2

32.1(14.6)

14.9

HY08 NPAT D&A Provisions PPE SaleProfit

W/C Changes HY08 Op CF

12

operating cash flow reconciliation

OCF reconciliation $m

$8.2m reversal in provisions due mainly to employee entitlement payments from a number of completed projects

$14.6m increase in working capital due to:

(a) debtors/creditors (net) increase of $11m; &(b) increase in tax paid ($5m)

For

per

sona

l use

onl

y

13

operating cash flow conversion

OCF / EBITDA %

49%

33%

115%

54%

178%

106%

80%

126%

29%

HY04 H204 HY05 H205 HY06 H206 HY07 H207 HY08

5-yr Avg OCF/EBITDA: 88%

For

per

sona

l use

onl

y

earnings & dividends

earnings per share dividends per share

14


H1 H2

38.6

11.1

21.1

36.5

73.6


H1 H2

29.0

7.5

19.3

33.0

66.0

For

per

sona

l use

onl

y

79.2%

54.3%

39.0%

23.2%29.3%

25.8%

72.6%

PeerGroup

ASXBest100


exceptional return on equity

Source:Peer Group: Various (incl. DOW, LEI, MAH, NWH [yr end], TSE & UGL) FY07 RoE averages (Range: 16.3% - 44.2%)ASX Best 100: BRW, representing the ASX’s best performing companies by RoE (top 100) 15

RoE % (average)

For

per

sona

l use

onl

y

superior total shareholder returns (TSR)

$1,000 investment 5 years ago

16

$1,000

$10,000

$100,000

Dec

-02

May

-03

Oct

-03

Mar

-04

Aug

-04

Jan-

05

Jun-

05

Nov

-05

Apr

-06

Sep

-06

Feb-

07

Jul-0

7

Dec

-07

MND S&P/ASX200 Accumulation Index S&P/ASX200 Industrials Accumulation Index

$21,753

$2,410

$2,598

For

per

sona

l use

onl

y

top quartile stock performance

TSR & relative performance

17

QuartileTSR (pa)

Note: Peer Group includes DOW, LEI, MAH, TSE, UGL, S&P/ASX 200 (XJO) & S&P/ASX 200 (XNJ) Industrials indices

MND Quartile Performance & TSR

71% 79% 151% 106%

CY07

2nd 1st 1st

CY03

UGL

CY04 CY05 CY06

MAH

DOW

TSE

MND

DOW

1st 2nd55%

TSE

MAH

XNJ

XJO

LEI

1st

2nd

3rd

4th

LEI

XJO

XNJ

MND

UGL

MND

UGL

DOW

LEI

MAH

TSE

XJO

XNJ

MND

MAH

UGL

XJO

DOW

XNJ

TSE

LEI

DOW

5yrs MND (No.1 of 8, 2075%)Overall

3yrs MND (No.1 of 8, 672%)

LEI

MAH

MND

TSE

UGL

XJO

XNJ

For

per

sona

l use

onl

y

people performance

total case injury frequency rate (TCIFR)

28.6

22.6

17.3

12.68.4


18

employee numbers

� TCIFR � 48% from HY07

� Continued investment in HSE

� Workforce consolidation across HY08

� Continued investment in our most valuable asset

1,539 1,740

3,142

4,034 3,808


For

per

sona

l use

onl

y

��

Dampier Port Upgrade Phase B, Dampier, WA

For

per

sona

l use

onl

y

operational reports

-8%499.4460.2$mTOTAL

-37.0-15.9$mInternal sales eliminations

7%9.510.2$mSkystar

0%40.440.3$mElectrical and Instrumentation Services

21%132.2160.3$mMaintenance and Industrial Services

-25%354.3265.3$mEngineering Construction


20

For

per

sona

l use

onl

y

our work locations

21

Note:Blue text represents the locations of projects won in HY08

For

per

sona

l use

onl

y

��

Sulphuric Acid Plant, Ravensthorpe, WA

For

per

sona

l use

onl

y

EC

� Revenue � 25% on HY07

($400m announced contacts across HY08)

� Major O&G win at ENI’s Blacktip project (NT)

� H2 FY08 revenue is forecast to strengthen

23

sales revenue $m


H1 H2

109.6

239.8289.3

657.5

265.3

HY08 Sales Contribution

EC56%

Hay Point Coal Terminal, Mackay, QLD

For

per

sona

l use

onl

y

� Contracts done:

� Iron ore facility expansion; RIO, Dampier Port Upgrade Phase B, WA

� Iron ore facility expansion; BHP, RGP3 at Port Hedland, WA

� Iron ore car dumper refurbishment; BHP, RGP3 at Port Hedland, WA

� Iron ore facility expansion; BHP, RGP3 at Mining Area C, WA

� Nickel facility construction work, BHP, Ravensthorpe Project, WA

� Contracts won:

� Deep water port facility upgrade; RIO, Cape Lambert 80MTPA Project, WA

� Onshore gas treatment plant construction; ENI, Blacktip Development Project, NT

� Dry processing plant construction; Newmont/Anglo, Boddington Gold Mine, WA

� Structural, mechanical & electrical package; BBI, Dalrymple Bay Coal Terminal, QLD

� Crushing, screening & mills construction; Oxiana, Prominent Hill Gold Mine, SA

EC division highlights

24

For

per

sona

l use

onl

y

EC division highlights

� Strategic sourcing & capacity initiatives:

� Established Beijing supply office to source fabricated steel products

& associated services;

� Seeking to establish ties with Chinese engineering companies for

the provision of specialist engineering services on Australian based

projects; and

� Establishment of a 10-year partnership with UWA to create a

learning centre to develop more job/industry-ready engineers.

25

For

per

sona

l use

onl

y

��

Darwin LNG Facility Maintenance Contract, Darwin, NT

For

per

sona

l use

onl

y

MIS

sales revenue $m


H1 H2

108.0

136.9

207.5

262.5

160.3


MIS34%

27

� Revenue � 21% from HY07

� Growth driven by increased service volumes & new contracts

� Significant further expansion into the coal and O&G sectors

Rio Tinto Aluminium Yarwun, Gladstone, QLD

For

per

sona

l use

onl

y

� Significant expansion in oil & gas capabilities through:

� 3 year O&G capital improvement & shutdown projects: BP, Kwinana Refinery (WA)

� 5 year O&G capital improvement projects: BP, Bulwer Island (QLD)

� Successful completion of major shutdowns for ConocoPhillips at their Darwin LNG

Plant (Darwin, NT)

� Awarded & commenced new maintenance services for Anglo Coal’s Dawson Mine

(Moura, QLD)

� Awarded extensions of Pilbara Iron (RIO) structural integrity contracts (Tom Price &

Cape Lambert)

� Successful integration of Ellavale business (acquired Mar-07)

� Continued organic growth of all operations across the Division

MIS division highlights

28

For

per

sona

l use

onl

y

��

Curragh North Expansion Project, Blackwater, QLD

For

per

sona

l use

onl

y

� Revenue flat from HY07

� Established operations to service WA market

� Major works carried out through other divisions including CQPA, DBCT, Bargara & Yandi

MIE

sales revenue $m


MIE8%

HY08FY07FY06FY05

H1 H2

6.6

26.0

71.8

40.3

30

Gladstone Port Rail Receival #3 Project, Gladstone, QLD

For

per

sona

l use

onl

y

��

Perth Airport, Perth, WA

For

per

sona

l use

onl

y

SAS

sales revenue $m

� Revenue � 7% from HY07

� Announced partial divestment to Toll

Dnata (Toll/Emirates JV)


H1 H2

3.1

7.3

14.8

19.2

10.2


Skystar2%

32

Perth International Airport, Perth, WA

For

per

sona

l use

onl

y

SAS divestment guidance

33

Background

� MND announced on 27-Dec-07 it had entered into an agreement

to divest part of its Skystar operations to Toll Dnata Airport

Services.

� Subsequent to this announcement, the deal closed in Jan-08.

Consideration: A$8.75m cash

FY08 Impacts

� Group revenue & profit impact: <1%

� Pre-tax profit on sale: $4.5m (approx.)

For

per

sona

l use

onl

y

��

Dampier Port Upgrade Phase B, Dampier, WA

For

per

sona

l use

onl

y

our strategy

35

CoreBusiness

Internal

CapacityExpansion

Diversification OurStrategy

�� earnings quality�� blue chip customers�� long term relationships�� larger & longer contracts�� growing recurring revenue base (MIS)

commodity diversification ��(O&G, coal, power & water)

service expansion (MIE) ��geographic expansion (SA & N.Qld) ��

strategic acquisitions ��

attract & retain right people ��maintain culture ��

enhance reputation ��processes, systems & risk management ��

�� improved project delivery methodology�� offshore procurement�� offshore recruitment�� up-skilling programs

For

per

sona

l use

onl

y

outlook

� Revenue expected to be flat for the full year with margins strengthening

� Project pipeline continues to be long and strong, in particular iron ore &

O&G

� Project timing and capacity utilisation will continue to impact EC revenue

flows

� Further contract wins to strengthen the company’s position leading into

2008/09

� Focus on diversification and capacity expansion for long-term growth

36

For

per

sona

l use

onl

y

2008 interim results presentation19 February 2008

For

per

sona

l use

onl

y

for personal use only - monadelphous · 2013. 6. 7. · 2008 interim results presentation for...

Documents