Monadelphous Group Limited · ASX:MND
Monadelphous — H1 FY2007 Earnings Presentation
21 slides from Monadelphous's earnings presentation, February 2007
Slide 1: December 2006 half year results
December 2006 half year results
Slide 2: Highlights
highlights Half year revenue of $499.4m up 105%, EPS up 147% to 38.5c Spike in construction activity has driven bumper half year result All divisions had strong performances Continued focus on safety performance Organisation restructured to facilitate further organic growth Delivering on diversifica
Slide 3: Financial highlights
financial highlights Dec-06 Dec-05 % Change Sales Revenue $m 499.4 243.5 105% EBITDA $m 48.7 20.8 134% Net Profit After Tax $m 31.4 12.5 152% Earnings Per Share cps 38.5 15.6 147% Total Dividends cpsff 22.0 9.0 144% Operating Cash Flow $m 39.2 37.1 6% Net Cash $m 45.3 24.7 83% Capex $m 9.8 10.8 -9%
Slide 4: Revenue by division
revenue by division Dec-06 Dec-05 % Change Engineering Construction $m 354.3 130.6 171% Maintenance and Industrial Services $m 132.2 96.3 37% Electrical and Instrumentation Services $m 40.4 10.8 274% Skystar $m 9.5 5.8 64% Internal sales eliminations $m -37.0 TOTAL $m 499.4 243.5 105%
Slide 5: Revenue & profit growth
revenue & profit growth sales revenue $m profit after tax $m 532.0 31.4 499.4 29.4 390.6 16.7 243.7 220.8 154.7 8.5 7.1 4.8 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Dec Half June Half
Slide 6: Earnings & dividend growth
earnings & dividend growth earnings per share dividend per share 38.5 36.5 33.0 21.1 22.0 19.3 11.1 9.6 7.5 6.5 6.3 3.5 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Interim Dividend Final Dividend Special Dividend Dec Half June Half
Slide 7: EBITDA and operating cash flow
EBITDA and operating cash flow EBITDA $m cashflow from operations $m 66.8 49.0 48.7 39.2 29.0 24.0 15.3 16.1 12.0 12.5 13.1 6.6 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Dec Half June Half
Slide 8: EBITDA and PAT margins
EBITDA and PAT margins EBITDA margin % profit after tax margin % 6.3% 9.8% 5.5% 9.2% 5.1% 8.5% 7.7% 4.3% 7.2% 7.3% 7.4% 4.0% 6.9% 6.8% 3.9% 6.6% 6.3% 3.5% 3.1% 3.0% 2.9% 2.9% 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Full Year Dec Half Full Year Dec Half
Slide 9: Exceptional return on equity
exceptional return on equity 47.3% 42.2% 36.1% 20.7% 21.7% 17.2% 2002 2003 2004 2005 2006 2007 Dec Half June Half
Slide 10: Strong shareholder returns
strong shareholder returns 5 year share price history $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Total shareholders returns: 1 year 105% 5 years 2370% (90% p.a)
Slide 11: Strong focus on safety
strong focus on safety total case injury frequency rate (TCIFR) 32.1 29.0 28.6 22.6 17.3 16.0 2002 2003 2004 2005 2006 YTD Dec 2006
Slide 12: Increasing workforce
increasing workforce employee numbers 3647 3142 1740 1539 1376 1198 2002 2003 2004 2005 2006 Dec 2006
Slide 13: Engineering construction division
engineering construction division sales revenue $m 354.3 289.3 239.8 109.6 2004 2005 2006 2007 Dec Half June Half Revenue 171% on last year’s first half ($500m of work won between December 2005 and August 2006) First major win in the water industry Second half revenue is forecast to revert to a more
Slide 14: EC division highlights
EC division highlights Substantial completion of major contracts: Sulphuric acid plant construction; BHP Billiton’s Ravensthorpe Nickel Project, WA Stockpile capacity extension; BHP Billiton Mitsubishi Alliance (BMA) Hay Point Coal Terminal, QLD Iron ore facility expansion; BHP Billiton’s Rapid Grow
Slide 15: EC division highlights
EC division highlights Successful progress of major contracts: Iron ore facility expansion; Rio Tinto Iron Ore Dampier Port Upgrade Phase B, WA Iron ore facility expansion; Yandi Junction South East project at Rio Tinto Iron Ore’s Yandicoogina mine, WA Iron ore facility expansion; BHP Billiton Iron
Slide 16: EC division highlights
EC division highlights $70m of new major contracts secured subsequent to reporting period: Iron ore car dumper refurbishment; BHP Billiton Iron Ore’s Rapid Growth Projects, WA Nickel facility construction work; BHP Billiton Ravensthorpe Nickel Project, WA Water treatment plant design and constructio
Slide 17: Maintenance & industrial services division
maintenance & industrial services division sales revenue $m 207.5 136.9 132.2 108.0 2004 2005 2006 2007 Dec Half June Half Revenue 37% from last year’s first half Retention of all major contracts and increased service volumes Full period revenues from newly established contracts Significant further
Slide 18: M&IS division highlights
M&IS division highlights Award & establishment of new service contracts : 2 year oil and gas maintenance support services contract; Conoco Philips’ Darwin LNG facility, NT 3 year oil and gas operation services contract; Oil Search, Papua New Guinea Significant contract extension: 3 year extension oi
Slide 19: Other growing divisions
Other growing divisions MIE sales revenue $m Skystar sales revenue $m 40.4 14.8 26.0 9.5 7.3 3.1 2006 2007 2004 2005 2006 2007 Dec Half June Half Dec Half June Half Revenue 274% from last year’s first half Revenue 64% from last year’s first half Major works carried out through other Full period reve
Slide 20: Our strategy
our strategy Core business strategies: earnings quality, blue chip customers, long term relationships larger and longer contracts focus on growing recurring revenue base Diversification strategies: geographical expansion of electrical services further development into oil and gas, power and water ma
Slide 21: Outlook
outlook Second half revenues to return to more normalised levels Revenue on track to exceed $800m for the full year Pipeline of projects continues to be strong, in particular iron ore Project timing and capacity utilisation will continue to impact engineering construction revenue flows Further long