Monadelphous Group Limited · ASX:MND
Monadelphous — FY2005 Earnings Presentation
21 slides from Monadelphous's earnings presentation, August 2005
Slide 1: 2005 Annual Results Presentation
2005 Annual Results Presentation August 2005
Slide 2: Highlights
Highlights 95% increase in profit after tax Health & Safety performance (TCIFR) improved by 20% Record levels of resource development activity providing numerous opportunities Shortage of skilled labour is a challenge Workload levels expected to at least continue at current levels Acquisition of Mur
Slide 3: Financial Highlights
Financial Highlights Exceptional Financial Year Performance NPAT up 95% to $16.7M EPS up 90% to 21.1cps One to four share split approved by shareholders Final dividend up 89% to 9.0cpsff Full year dividends of 19.25cpsff, including a special dividend of 5.0cpsff Special dividends flagged for 2006 an
Slide 4: Financial Performance Summary
Financial Performance Summary Jun 05 Jun 04 % Change Revenue $390.6M $220.8M +77% EBITDA $29.2M $16.1M +81% Net Profit After Tax $16.7M $8.5M +95% Earnings per Share 21.1c 11.1c +90% Final Dividend 9.00cpsff 4.75cpsff +89% Return on Equity 36.1% 21.7% +66%
Slide 5: Continued Strong Growth Rate
Continued Strong Growth Rate Revenue Profit After Tax 400,000 18,000 350,000 16,000 14,000 300,000 12,000 250,000 10,000 $'000 $'000 200,000 8,000 150,000 6,000 100,000 4,000 50,000 2,000 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Dec Half June Half Dec Half June Half 77% increase in reve
Slide 6: Improved Margins
Improved Margins EBITDA Margin Profit After Tax Margin 9% 4.5% 8% 4.0% 7% 3.5% 6% 3.0% 5% % 2.5% 4% % 2.0% 3% 1.5% 2% 1.0% 1% 0.5% 0% 2001 2002 2003 2004 2005 0.0% 2001 2002 2003 2004 2005 Dec Half Full Year Dec Half Full Year 2005 EBITDA margin of 7.5% and PAT margins of 4.3% improved by 0.2pts and
Slide 7: Strong Cash Flow
Strong Cash Flow EBITDA Cashflow from Operations 30,000 25,000 25,000 20,000 20,000 15,000 $' 000 $'000 15,000 10,000 10,000 5,000 5,000 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Dec Half June Half Dec Half June Half EBITDA of $29.2M, up 81% in line with the increase in revenue Strong op
Slide 8: Special Dividend
Special Dividend Earnings Per Share Total Dividend Payments 25.0 20 18 20.0 16 14 15.0 12 Cents Cents 10 10.0 8 6 5.0 4 2 0.0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Dec Half June Half Interim Dividend Final Dividend Special Dividend EPS of 21.1cps up 90% and DPS of 19.25cps up 157% on p
Slide 9: Net Cash Position Maintained
Net Cash Position Maintained Debt to Equity Capital Expenditure 40% 20,000 35% 18,000 30% 16,000 14,000 25% 12,000 $'000 % 20% 10,000 15% 8,000 6,000 10% 4,000 5% 2,000 0% 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Full Year Dec Half June Half Comfortable with debt to equity ratio increase
Slide 10: Well Above Average Return on Equity
Well Above Average Return on Equity Return on Equity 40% 35% 30% 25% % 20% 15% 10% 5% 0% 2001 2002 2003 2004 2005 Dec Half June Half Return on equity 36.1% was well above historic average
Slide 11: People Performance
People Performance Employee Numbers Total Case Injury Frequency Rate (TCIFR) 2000 60 1600 50 40 1200 30 800 20 10 400 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Employee Numbers TCIFR Injury frequency rate reduced by 20% Steady increase in employee numbers during the past 5 years Major fo
Slide 12: Engineering Construction Division
Engineering Construction Division 04/05 03/04 % Change Revenue $239M $101M +137% Undergone rapid expansion throughout 2004/2005 Zero Lost Time Injuries (over 1 million manhours)
Slide 13: Engineering Construction Division Highlights
Engineering Construction Division Highlights Revenues boosted by completion or substantial progress on major construction contracts including: Expansion of Comalco’s bauxite operations, Weipa, QLD Coal handling facilities for Xstrata’s Rolleston Coal Project, QLD Iron ore rail car dumper for Rio Tin
Slide 14: Engineering Construction Division Highlights
Engineering Construction Division Highlights Major projects secured and underway included: Major expansion of iron ore stockyards for Rio Tinto’s Dampier Port Upgrade Project, WA Sulphuric Acid Plant for BHP Billiton’s Ravensthorpe Nickel Project, WA Extension of stockpile capacity at BHP Billiton M
Slide 15: Maintenance & Industrial Services Division
Maintenance & Industrial Services Division 04/05 03/04 % Change Revenue $151M $120M +26% Secured a number of long term contracts and new major customers Acquisition of Murray Instrumentation & Electrical
Slide 16: Maintenance & Industrial Service Division Highlights
Maintenance & Industrial Service Division Highlights Growth/expansion of maintenance services business in Queensland: New long-term contract at the new Comalco Alumina Refinery in Gladstone Preferred contractor to provide mechanical services at Comalco’s Boyne Smelter in Gladstone Retention of all m
Slide 17: Skystar
Skystar Experienced substantial growth during 2004/2005 New contracts secured with Malaysian Airlines and Value Air in Perth, WA and the establishment of operations at Brisbane airport, QLD Preferred ground handling service for HRH Prince Charles and Sultan of Brunei during their visits this year
Slide 18: Acquisitions
Acquisitions May 2005 announced acquisition of specialist electrical and instrumentation contractor, Murray Instrumentation & Electrical (MIE) Strategic milestone for the company Significant step forward to achieving the objective to diversify and grow
Slide 19: Key Customers
Key Customers BHP Billiton (Iron Ore, Nickel, Coal) Rio Tinto Hamersley Iron (Iron Ore) WMC Resources (Copper, Nickel) Xstrata (Copper, Lead) Comalco (Alumina) Queensland Alumina (Alumina) Alcan Gove (Alumina) Chevron (Oil, Gas) Alcoa (Alumina) Santos (Oil, Gas) Woodside (Oil, Gas)
Slide 20: Outlook
Outlook A booming market coupled with a strong competitive position Record levels of resource sector investment forecast for at least the next 2 to 3 years Forward workload levels expected to at least continue at current levels for 2006 financial year 2006 revenues will be subject to timing of proje
Slide 21: Company Overview
Company Overview A leading national engineering group providing extensive engineering construction, maintenance and industrial services to the resources, energy and infrastructure industry sectors. A solid track record in the safe and reliable delivery of major multi- disciplinary construction proje