For personal use only - Monadelphous · 2013. 6. 7. · 2008 interim results presentation For...
Transcript of For personal use only - Monadelphous · 2013. 6. 7. · 2008 interim results presentation For...
2008 interim results presentation19 February 2008
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Rob VelletriManaging Director
Giles EveristChief Financial Officer
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your speakers
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� 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
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Rapid Growth Project 4, Port Hedland, WA
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� 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 $500m announced new project wins
� Long-term oil & gas wins
� Divestment of Skystar assets
� Further developments in global sourcing
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financial highlights
-21%92.072.6%Return on Equity (annualised)
32%22.029.0cpsffDPS
0%38.538.6cpsEPS
2%31.432.1$mNet Profit After Tax
5%48.751.4$mEBITDA
-8%499.4460.2$mSales Revenue
% ChangeDec-06Dec-07
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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
% ChangeDec-06Dec-07
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revenue & key drivers
sales contributions %sales revenue $m
HY08FY07FY06FY05FY04
H1 H2
460.2
220.8
390.6
532.0
963.7
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66% 64%56%
25% 27%34%
8% 7% 8%
2%2%2%
HY07 H207 HY08
EC MIS MIE SkystarFor
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NPAT & margins
NPAT $m NPAT margin %
HY08FY07FY06FY05FY04
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%
HY08FY07FY06FY05FY04
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NPAT contribution analysis
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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
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EBITDA & margins
EBITDA $m EBITDA margin %
HY08FY07FY06FY05FY04
H1 H2
51.4
16.1
29.0
49.0
94.0
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9.8%9.8%
8.0%7.7%
8.5%
6.8%6.9%
11.2%
9.8%
HY08FY07FY06FY05FY04
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operating cash flow
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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
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(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
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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)
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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%
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earnings & dividends
earnings per share dividends per share
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HY08FY07FY06FY05FY04
H1 H2
38.6
11.1
21.1
36.5
73.6
HY08FY07FY06FY05FY04
H1 H2
29.0
7.5
19.3
33.0
66.0
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79.2%
54.3%
39.0%
23.2%29.3%
25.8%
72.6%
PeerGroup
ASXBest100
HY08FY07FY06FY05FY04
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)
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superior total shareholder returns (TSR)
$1,000 investment 5 years ago
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$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
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MND S&P/ASX200 Accumulation Index S&P/ASX200 Industrials Accumulation Index
$21,753
$2,410
$2,598
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top quartile stock performance
TSR & relative performance
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QuartileTSR (pa)
Note: Peer Group includes DOW, LEI, MAH, TSE, UGL, S&P/ASX 200 (XJO) & S&P/ASX 200 (XNJ) Industrials indices
MND Quartile Performance & TSR
71% 79% 151% 106%
CY07
2nd 1st 1st
CY03
UGL
CY04 CY05 CY06
MAH
DOW
TSE
MND
DOW
1st 2nd55%
TSE
MAH
XNJ
XJO
LEI
1st
2nd
3rd
4th
LEI
XJO
XNJ
MND
UGL
MND
UGL
DOW
LEI
MAH
TSE
XJO
XNJ
MND
MAH
UGL
XJO
DOW
XNJ
TSE
LEI
DOW
5yrs MND (No.1 of 8, 2075%)Overall
3yrs MND (No.1 of 8, 672%)
LEI
MAH
MND
TSE
UGL
XJO
XNJ
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people performance
total case injury frequency rate (TCIFR)
28.6
22.6
17.3
12.68.4
FY04 FY05 FY06 FY07 HY08
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employee numbers
� TCIFR � 48% from HY07
� Continued investment in HSE
� Workforce consolidation across HY08
� Continued investment in our most valuable asset
1,539 1,740
3,142
4,034 3,808
FY04 FY05 FY06 FY07 HY08
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Dampier Port Upgrade Phase B, Dampier, WA
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operational reports
-8%499.4460.2$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
% ChangeDec-06Dec-07
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our work locations
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Note:Blue text represents the locations of projects won in HY08
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Sulphuric Acid Plant, Ravensthorpe, WA
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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
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sales revenue $m
HY08FY07FY06FY05FY04
H1 H2
109.6
239.8289.3
657.5
265.3
HY08 Sales Contribution
EC56%
Hay Point Coal Terminal, Mackay, QLD
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� 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
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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.
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Darwin LNG Facility Maintenance Contract, Darwin, NT
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MIS
sales revenue $m
HY08FY07FY06FY05FY04
H1 H2
108.0
136.9
207.5
262.5
160.3
HY08 Sales Contribution
MIS34%
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� 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
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� 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
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Curragh North Expansion Project, Blackwater, QLD
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� 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
HY08 Sales Contribution
MIE8%
HY08FY07FY06FY05
H1 H2
6.6
26.0
71.8
40.3
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Gladstone Port Rail Receival #3 Project, Gladstone, QLD
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Perth Airport, Perth, WA
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SAS
sales revenue $m
� Revenue � 7% from HY07
� Announced partial divestment to Toll
Dnata (Toll/Emirates JV)
HY08FY07FY06FY05FY04
H1 H2
3.1
7.3
14.8
19.2
10.2
HY08 Sales Contribution
Skystar2%
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Perth International Airport, Perth, WA
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SAS divestment guidance
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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.)
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Dampier Port Upgrade Phase B, Dampier, WA
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our strategy
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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
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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
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2008 interim results presentation19 February 2008
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