Keller Group Plc · LSE:KLR
Keller — H1 2015 Earnings Presentation
31 slides from Keller's earnings presentation, Aug 3, 2015
Slide 1: Results for the six months ended 30 June 2015
Keller Group Plc Full Year Results 2014 Keller Group plc February 2015 Results for the six months ended 30 June 2015 3 August 2015
Slide 2: Cautionary Statements
Cautionary Statements This document contains certain ‘forward looking All written or verbal forward looking statements, made in statements’ with respect to Keller’s financial condition, this document or made subsequently, which are results of operations and business and certain attributable to Kelle
Slide 3: Agenda
Agenda • Introduction and highlights Alain Michaelis • Financial results and divisional review James Hind • Initial impressions and outlook Alain Michaelis • Q&A 3
Slide 4: Agenda
Agenda • Introduction and highlights Alain Michaelis • Financial results and divisional review James Hind • Initial impressions and outlook Alain Michaelis • Q&A 4
Slide 5: Highlights
Highlights* Revenue Operating margin raised to £755.8m 5.0% (2014: £788.2m), down 4% (2014: 4.5%) Operating profit Earnings per share £37.7m 31.1p (2014: £35.5m), up 6% (2014: 29.5p), up 5% Net debt Interim dividend increased to £171.5m 8.8p (2014: £161.9m) (2014: 8.4p), up 5% *before exceptional it
Slide 6: Agenda
Agenda • Introduction and highlights Alain Michaelis • Financial results and divisional review James Hind • Initial impressions and outlook Alain Michaelis • Q&A 6
Slide 7: Group Income Statement
Group Income Statement* £m H1 2015 H1 2014 % change FY 2014 Revenue 755.8 788.2 -4% 1,599.7 EBITDA 62.8 59.8 +5% 141.9 Operating profit 37.7 35.5 +6% 92.0 Net finance cost (3.1) (3.0) (6.9) Profit before tax 34.6 32.5 +6% 85.1 Tax (12.1) (10.7) (29.7) Profit after tax 22.5 21.8 +3% 55.4 EBITDA % 8.3
Slide 8: Group Income Statement (continued)
Group Income Statement (continued) £m H1 2015 H1 2014 % change FY 2014 Profit after tax* 22.5 21.8 +3% 55.4 Exceptional items (3.0) (27.6) (56.9) Tax on exceptional items 0.7 0.7 0.3 Non-controlling interests (0.2) (0.8) (1.8) Attributable to shareholders 20.0 (5.9) (3.0) Earnings per share* 31.1p 2
Slide 9: Operating Profit & Margin
Operating Profit & Margin* £m H1 2015 H1 2014 Revenue Operating Margin Revenue Operating Margin Profit Profit North America 415.8 28.4 6.8% 373.0 20.7 5.5% EMEA 210.3 7.0 3.3% 214.4 2.7 1.3% Asia 48.2 0.6 1.2% 56.6 3.6 6.4% Australia 81.5 4.2 5.2% 144.2 10.6 7.4% 755.8 40.2 5.3% 788.2 37.6 4.8% Cent
Slide 10: Group Balance Sheet
Group Balance Sheet £m H1 2015 H1 2014 FY 2014 Goodwill/intangibles 172.0 178.1 183.5 Property, plant & equipment 286.0 281.7 295.6 Other non-current assets 21.3 15.2 19.9 479.3 475.0 499.0 Inventories 50.8 62.1 48.6 Receivables 445.2 455.1 408.7 Payables (371.7) (368.5) (353.2) Working capital 124.
Slide 11: Group Cash Flow Statement
Group Cash Flow Statement £m H1 2015 H1 2014 FY 2014 Cash generated from operations 18.6 31.9 165.4 Cash flows from exceptional items (25.0) - - Capex – net (31.0) (27.8) (61.0) Interest (3.1) (3.4) (9.6) Tax (17.0) (11.6) (28.4) Free cash flow (57.5) (10.9) 66.4 Acquisitions (2.7) (1.1) (5.0) Divid
Slide 12: Cash Flow History
Cash Flow History 12 months to 30 £m June 2015 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 EBITDA Cash from operations 10-year cash conversion 10-year aggregate EBITDA 10-year aggregate cash rate of 98% of £1,107.1m from operations of £1,086.3m 12
Slide 13: Group Contract Awards
Group Contract Awards Monthly orders (£m) (rolling 3 month average at constant currency*) 180 Seattle 160 Wheatstone; St Kanzian Crossrail; Victoria Vale; Gdansk Station; LNG MOF 140 120 100 80 Changi Airport; Sengkang Caspian region 60 Moscow Hospital 40 20 0 Healthy order intake during Order book
Slide 14: Divisional review
Divisional review 14
Slide 15: US Construction Market
US Construction Market US Construction Put-in-Place ($bn) Source: US Census Bureau, July 2015 450 400 350 300 250 200 150 100 50 0 Residential Infrastructure/Public Buildings Office/Commercial Power/Industrial Total US construction Residential up 6% Office/Commercial up 19% market up 6% in 2015 YTD
Slide 16: US Revenue by End Market
US Revenue by End Market H1 2015 Revenue by End Market H1 2014 Revenue by End Market Total revenue $572m Total revenue $537m 26% 26% 33% 39% 18% 25% 16% 17% Infrastructure/Public Buildings Power/Industrial Office/Commercial Residential Office/Commercial revenue Infrastructure/Public up 48% Buildings
Slide 17: North America
North America US - Strong first half: revenue, profit and margin up - despite Q1 adverse weather conditions - helped by an improving market - Good performance from US foundation contracting businesses - especially Case and HJ - Seattle seawall project on track - Suncoast suffered from heavy rains in
Slide 18: North America: Acquisition of Bencor
North America Acquisition of Bencor - Leading US diaphragm wall contractor - significant addition to Keller’s existing D-wall expertise and equipment - Strengthens ability to offer complete packaged solutions - Annual revenue of US$50-80m - Acquired order book will include East Branch Dam Project -
Slide 19: EMEA Regional Split
EMEA Regional Split H1 2015 Revenue by Region H1 2014 Revenue by Region Total revenue €286m Total revenue €262m 15% 14% 16% 20% 7% 7% 16% 10% 9% 14% 8% 10% 16% 15% 13% 10% Africa UK Germany Poland Middle East Austria France Other Africa now 20% of EMEA 75% of European revenue Middle East showing sig
Slide 20: EMEA Highlights
EMEA Highlights Results - Revenue up 5% on like-for-like basis - Operating profit more than doubled - Margin increased to 3.3% - Focus on cost control and risk management Europe - No real signs of market improvement - Good results from central Europe - Southern Europe remains difficult Emerging mark
Slide 21: Asia Regional Split
Asia Regional Split H1 2015 Revenue by Country H1 2014 Revenue by Country Total revenue S$99m Total revenue S$119m 4% 5% 11% 19% 27% 26% 58% 50% Singapore Malaysia India Other Singapore revenue reflects Malaysian market hurt by timing of major projects low oil price – compounded by cooling - Keller
Slide 22: Asia Highlights
Asia Highlights ASEAN region - Results impacted by timing of major projects - Reduced oil price depressing the petrochemical market - Now mobilising on RAPID development in Malaysia - Delays on Changi expansion project India - Good first half - Some signs of market improvement Opportunities in Bangl
Slide 23: Australia Highlights
Australia Highlights - First-half performance reflects completion of Wheatstone, the Group’s largest ever contract - compounded by challenging market conditions - Focusing on costs and efficiency - centralised certain functions - restructuring equipment management and facilities - Pipeline of major
Slide 24: Australia: Acquisition of Austral
Australia Acquisition of Austral - Provides piling and civils services for infrastructure and the mining industry - focus on near-shore marine work - Works mainly in western Australia - complements Waterways presence in the east - Historic revenue of A$76m and operating profit of A$10m - Acquired fo
Slide 25: Agenda
Agenda • Introduction and highlights Alain Michaelis • Financial results and divisional review James Hind • Initial impressions and outlook Alain Michaelis • Q&A 25
Slide 26: Initial impressions: Strengths
Initial impressions: Strengths • Some excellent market positions • Consistent and successful strategy • Plenty of growth prospects • Loyal and experienced people • Already the leading player and a “pure” play 26
Slide 27: Initial impressions: Opportunities
Initial impressions: Opportunities • Further differentiate against our local competitors through unique levers • Sharpen market and commercial focus • Improve operational efficiency • Continued growth Enabled by a better connected global leadership team 27
Slide 28: Outlook
Outlook • No major changes in our markets - US continues steady growth - Australia, Canada, Europe remain challenging • Order book up 5% - positions Group well for second half • Confident full year should be in line with current market expectations 28
Slide 29: Agenda
Agenda • Introduction and highlights Alain Michaelis • Financial results and divisional review James Hind • Initial impressions and outlook Alain Michaelis • Q&A 29
Slide 30: Q&A
Keller Group Plc Full Year Results 2014 Keller Group plc February 2015 Q&A
Slide 31: 31
31