Nrw Holdings Limited · ASX:NWH
Nrw — H1 FY2021 Earnings Presentation
24 slides from Nrw's earnings presentation, Feb 18, 2021
Slide 1: NRW Holdings Half Year Results
For personal use only NRW HOLDINGS HALF YEAR RESULTS 18 FEBRUARY 2021
Slide 2: Results Overview
RESULTS OVERVIEW • Revenue up 44% to $1,168M; first half of FY20 (pcp) $808.7M. • Earnings (EBITDA) increased to $132.8M up 28% compared to $103.8M pcp(1). For personal use only • Margins on Pilbara projects impacted by resource availability due to continued constraints related to COVID-19 measures.
Slide 3: Primero
PRIMERO • NRW now holds a relevant interest of circa 98% (15 Feb 2021) of Primero’s shares and is now moving to compulsory acquisition of the remaining shares in Primero. For personal use only • Primero’s business and its competencies are complementary to NRW’s compelling strategic delivery platform
Slide 4: HSE & People
HSE & PEOPLE SAFETY HEADCOUNT 7,000 • Increased monitoring and focus on welfare of workforce due to COVID-19. For personal use only • Total Recordable Injury Frequency Rate (TRIFR) at December 2020 8000 was 6.66. JUN 20 DEC 20 7000 • Lost Time Injury Frequency Rate (LTIFR) at December 2020 was 0.39.
Slide 5: Financial Overview
NorthLink WA Central Section, Main Roads WA. For personal use only FINANCIAL OVERVIEW FINANCIAL OVERVIEW 5
Slide 6: Financials
FINANCIALS • Revenue growth from order wins in civil and addition of • Cash balances sustained whilst accelerating non asset BGC Contracting. finance debt repayments (Bank loans to fund acquisitions). • Earnings impacted by resource availability due to COVID-19 restrictions. • Net debt reduced by $4
Slide 7: Cashflow
CASHFLOW • Cash conversion at 85% - includes repayment of contract advances. • Cash outflow of GCY and Altura is higher than the P&L impact. Earnings include $14M of equity in GCY received as part of the recapitalisation plan STRONG CASH CONVERSION For personal use only (not a cash transaction). • R
Slide 8: Business Structure & Performance
Provided by Mt Webber, WA. For personal use only BUSINESS STRUCTURE & PERFORMANCE BUSINESS STRUCTURE & PERFORMANCE 8
Slide 9: Positioned for Future Growth
POSITIONED FOR FUTURE GROWTH Primero completes delivery capabilities across our four business pillars. EPC CAPABILITIES For personal use only INCREASED CIVIL INFRASTRUCTURE OPPORTUNITIES ACQUISITION OF INCREASED CAPABILITIES ACQUISITION BGC CONTRACTING 2021 & DIAB ENGINEERING GEOGRAPHIC EXPANSION AC
Slide 10: Business Structure
BUSINESS STRUCTURE CIVIL MINING DRILL & BLAST MINERALS, ENERGY & TECHNOLOGIES For personal use only REVENUE REVENUE REVENUE REVENUE $464.9M $547.8M $87.7M $118.3M 52% 46% 10% 60% NRW Civil NRW Mining Action Drill & Blast RCR Mining Technologies Golding Civil Golding Mining DIAB Engineering Golding U
Slide 11: Civil
CIVIL For personal use only CIVIL 11
Slide 12: Civil Results
CIVIL RESULTS • Revenue increased 52% to $464.9M $M FH FY21 FH FY20 For personal use only o Contract awards Revenue 464.9 305.0 o Addition of BGC Contracting • Margin percentages lower due to continued impact of COVID-19 EBITDA 15.8 3.4% 13.6 4.5% particularly availability of quality resources, impa
Slide 13: Civil Outlook: Resources & Infrastructure
CIVIL OUTLOOK RESOURCES & INFRASTRUCTURE • Whist major sustaining projects in iron ore have been awarded the pipeline is likely to remain strong through the next five years, For personal use only (chart below). • Anticipated strong growth across a range of other commodities. • Strong pipeline of inf
Slide 14: Mining
MINING For personal use only MINING 14
Slide 15: Mining Results
MINING RESULTS • Revenue increased 46% to $547.8M from $375.0M $M FH FY21 FH FY20 For personal use only o Activity increase mostly due to the addition of BGC Contracting. Revenue 547.8 375.1 • Earnings increase but margin percentage lower o East Coast earnings performance was in line with expectatio
Slide 16: Drill & Blast
DRILL & BLAST For personal use only DRILL & BLAST 16
Slide 17: Drill & Blast Results
DRILL & BLAST RESULTS • Revenue growth was driven by a full half contribution from projects won in the prior period. $M FH FY21 FH FY20 For personal use only • Higher margins were the consequence of ongoing cost initiatives, Revenue 87.7 79.5 including improved equipment availability and utilisation
Slide 18: Minerals, Energy & Technologies
MINERALS, ENERGY & TECHNOLOGIESFor personal use only MINERALS, ENERGY & TECHNOLOGIES 18
Slide 19: Minerals, Energy & Technologies Results
MINERALS, ENERGY & TECHNOLOGIES RESULTS • RCRMT and DIAB had a very strong start to the year with results ahead of expectations and a strong outlook for FY21 and FY22. $M FH FY21 FH FY20 For personal use only o Recent award of the Fortescue Metals Group Queens Overland Revenue 118.3 74.1 Conveyor an
Slide 20: Summary
SUMMARY For personal use only SUMMARY 20
Slide 21: Tender Pipeline & Outlook
TENDER PIPELINE & OUTLOOK • Order intake $1B in the half. PIPELINE GROWTH • FY21 revenue forecast retained - between $2.2B to $2.3B FROM JUN 20 TO DEC 20 - Low end of the range covered with secured work. For personal use only CIVIL INFRASTRUCTURE • Tender Pipeline increased to $14.1B, of which NRW h
Slide 22: Disclaimer
DISCLAIMER SUMMARY INFORMATION • This Presentation contains summary information about NRW and its associated entities and their activities current only at the date of this Presentation. For personal use only • This Presentation is for general information purposes only and does not purport to be comp
Slide 23: Appendix A – Segment Results
APPENDIX A – SEGMENT RESULTS For comparative purposes, FH FY20 segment information is adjusted to reflect retrospective reassessment of AASB 16. For personal use only As disclosed Restated Audited $M FH FY20 FH FY20 SH FY20 Full Year FY20 Revenue 305.0 305.0 506.0 811.0 CIVIL EBITDA 16.9 5.5% 13.6 4
Slide 24: For personal use only
For personal use only 181 Great Eastern Highway BELMONT WA 6102 (08) 9232 4200 www.nrw.com.au