Keller Group Plc · LSE:KLR
Keller — FY2001 Earnings Presentation
20 slides from Keller's earnings presentation, March 2002
Slide 1: Preliminary results year ended 31 December 2001
Preliminary results year ended 31 December 2001 March 2002
Slide 2: Highlights
+LJKOLJKWV • Excellent results restoring good track record • Major acquisition of niche business • Record performance in North America • Good results in Europe • Recovery in Australia • Strong order intake • 5% placing of shares 1
Slide 3: The Group
7KH*URXS • Worldwide dominance in foundation services • Growth potential of specialist services • Unrivalled geographical coverage • Good track record 2
Slide 4: Organisation Structure
2UJDQLVDWLRQ6WUXFWXUH Tom Dobson Chief Executive Justin Atkinson Finance Director Non Executives Foundations Specialist Services USA Europe & UK Australia USA Europe & Overseas UK Hayward Baker Overseas Keller Franki Suncoast Wannenwetsch Makers Case Keller 3
Slide 5: Foundation Services
)RXQGDWLRQ6HUYLFHV • Activities • Applications • Speciality grouting • Control of building settlement • Groundwater control • Cavity filling • Ground improvement • Seismic risk protection • Foundation support • Caisson & piling in niche • Foundation support markets • Earth retention 4
Slide 6: Specialist Services
6SHFLDOLVW6HUYLFHV • Activities • Applications • Concrete repair • Car parks • Civil engineering projects • Refurbishment • Local authority housing • Heritage structures • Post-tension concrete • Slab-on-grade foundations • High rise structures 5
Slide 7: Environmental Applications
(QYLURQPHQWDO$SSOLFDWLRQV • Brownfield sites • Removal of contaminated soils • Containment barriers • Installation of barriers to prevent flooding • Sealing leaks in sewerage systems 6
Slide 8: Geographical Coverage
*HRJUDSKLFDO&RYHUDJH • Operating in 35 countries • 32 offices in USA / 36 offices in Continental Europe 7
Slide 9: Ten year track record
7HQ\HDUWUDFNUHFRUG Turnover 1992 - 2001 (£m) Operating Profit 1992 - 2001(£m) 450 422.2 A us t ra lia 18 . 3 30 25.4 400 UK H.O C o s ts 0.5 T he A m e ric a s A u s tra lia 25 3.4 350 10 0 .1 C o n t in e n t a l E u ro pe & O v e rs e a s 314.9 313.0 UK 19.4 T h e A m e ric a s 2 0 .8 14 . 2 17.0
Slide 10: Profit and Loss Account
3URILWDQG/RVV$FFRXQW 2001 2000 % £millions Change Turnover 422.2 313.0 +35 Operating profit pre-goodwill 25.4 17.7 +44 Operating profit post goodwill 24.2 16.2 +49 Interest (1.8) (0.8) Profit before tax 22.4 15.4 +45 Taxation (8.7) (5.8) Profit after tax 13.7 9.6 +43 Earnings per share pre-goodwill
Slide 11: Group Balance Sheet
*URXS%DODQFH6KHHW £millions 2001 2000 Fixed assets Goodwill 60.6 12.3 Other intangibles 0.4 0.4 Tangible assets 59.2 50.7 120.2 63.4 Current assets Stocks 12.5 7.0 Debtors 120.3 91.1 Cash 12.2 13.6 145.0 111.7 Creditors: due within one year (129.1) (92.7) Net current assets 15.9 19.0 Total assets le
Slide 12: Group Cash Flow Statement
*URXS&DVK)ORZ6WDWHPHQW £millions 2001 2000 Net cash inflow from operating activities 32.2 19.6 Returns on investment and servicing of finance (3.3) (1.0) Taxation (8.2) (5.8) Capital expenditure (10.3) (8.9) Acquisitions and disposals (67.3) (8.8) Equity dividends paid (5.0) (4.6) Net cash outflow (
Slide 13: Product analysis
3URGXFWDQDO\VLV 2001 Turnover 2000 Turnover Specialist services Repair/ Post-Tension Refurbishment Systems 13% Specialist services Repair/ 5% Refurbishment Geotechnical 15% Ground 36% improvement 24% Geotechnical 34% Ground Improvement Piling Piling 23% 24% 26% Foundation services Foundation service
Slide 14: Geographical analysis
*HRJUDSKLFDODQDO\VLV 2001 Turnover 2000 Turnover Continental Australia Europe & Overseas Australia 4% 27% 5% USA Continental 35% Europe & Overseas 31% USA 45% UK 24% UK 29% u USA sales 45% of Group u UK sales 24% of Group u German sales 10% of Group 13
Slide 15: Pro forma analysis - turnover
3URIRUPD DQDO\VLVrWXUQRYHU u Includes 12 months of sales from Suncoast Product analysis Geographic analysis Repair/ Specialist services Refurbishment Post-Tension 11% Australia Ground Continental Systems Improvement 4% Europe & 19% 20% Overseas USA 23% 53% Piling Geotechnical 20% UK 30% 20% Foundati
Slide 16: Geographical analysis
*HRJUDSKLFDODQDO\VLV Operating profit pre-goodwill (reported) % £millions 2001 2000 Change Operating Profit USA 17.3 9.9 +75 Europe & Overseas 5.9 4.9 +20 UK 3.5 3.6 -3 Australia 0.5 (0.3) +267 Central costs (1.8) (1.6) -13 25.4 16.5 +54 • Record year for North American operations • Increased margin
Slide 17: Suncoast acquisition
6XQFRDVWDFTXLVLWLRQ • Trading in line with expectations • Housing starts remain robust • Seasonal nature of business • New CFO and COO now established • Growth opportunities in California and Arizona 16
Slide 18: Strategy
6WUDWHJ\ Foundation Services u To maintain global leadership in foundation services u Organic growth in Europe and USA u Bolt-on acquisitions with sales of up to £10m u Larger acquisition opportunities to be monitored 17
Slide 19: Strategy continued
6WUDWHJ\FRQWLQXHG Specialist Services u To expand our range of specialist services u Refurbishment and Repair Partnering/term contracts Car parks u Post-Tension Systems Increased market penetration Geographic growth in USA u Acquisition Opportunities European construction industry related 18
Slide 20: Current trading and prospects
&XUUHQWWUDGLQJDQGSURVSHFWV • Order books 27% ahead of last year • Current year has started well • US construction market remains strong • UK refurbishment market offers opportunities • Record January order intake • Prospects for the year are good 19