Monadelphous Group Limited · ASX:MND
Monadelphous — H1 2011 Earnings Presentation
26 slides from Monadelphous's earnings presentation, Feb 22, 2011
Slide 1: 2011 Interim Results Presentation
2011 Interim Results Presentation 22 February 2011
Slide 2: Agenda
Agenda Business Highlights Rob Velletri Financial Performance Zoran Bebic Divisional Update Rob Velletri Strategy and Outlook Rob Velletri 02
Slide 3: Business Highlights
fl Monadelphous Business Highlights
Slide 4: Group Highlights
Group Highlights • Sales revenue up 13% to $700m • EBITDA up 15% to $74m, enhanced margin of 10.6% Financial • NPAT up 12% to $45.5m, EPS up 10.6% to 52.3c, DPS up 14% • Healthy cash conversion, $61.5m cash flow from operations • Strong demand and scope growth in EC activity, up 11% • $450m of new c
Slide 5: Divisional Highlights
Divisional Highlights • Record sales revenue of $467 million, up 11% Engineering • Strengthening of the energy and resources markets Construction • Awarded more than $200 million in new construction contracts • Sales revenue up 6% to $188 million Maintenance • Retained all existing customers and con
Slide 6: Key Contract Wins
Key Contract Wins Sino Iron ‘Structural and Mechanical Works: Cape Preston, WA Sino Iron Construction oItake and Outall Posies Cape Preston, WA Chevron |——___— ‘Onshore Pipelines, Cables and Tubes. Barrow Island, WA BHP Billiton Iron Ore Stnetural and Mechanical Works Fins Island, Port WA BHP Billit
Slide 7: Continued Market Diversification
Continued Market Diversification Contribution to Group Sales 2% 3% 3% 4% 10% 100% 4% 8% 90% 17% 80% 31% 70% 35% 60% Market Segment 50% Infrastructure 96% 89% 40% 80% Energy 30% 65% 55% Resources 20% 10% 0% FY07 FY08 FY09 FY10 HY11 Group Sales Revenue 07
Slide 8: People Performance
People Performance Employee Numbers Highlights: 7,000 5,742 • Employee numbers increase 6,000 5,424 24% (pcp) in line with work volumes 5,000 4,782 4,632 4,211 4,041 • Skilled labour shortages continue to 4,000 3,808 3,848 build 3,000 • Continued focus on attraction and 2,000 retention strategies 1,
Slide 9: Safety Scorecard
Safety Scorecard Highlights: Injury Frequency Rate (per million hours worked) • TCIFR up marginally to 6.7 25 incidents 20 • Improvement in LTIFR Total case injury frequency rate (TCIFR) • Continued investment in safety 15 leadership training, HSE 10 6.7 processes and systems 5 Lost time injury freq
Slide 10: Financial Performance
fl Monadelphous Financial Performance
Slide 11: Financial Highlights
Financial Highlights Dec 10 Dec 09 Change Sales Revenue $m 700.1 619.5 + 13.0% EBITDA $m 74.0 64.2 + 15.4% Operating Cash Flow $m 61.5 56.6 + 8.7% NPAT $m 45.5 40.5 + 12.3% NPAT Margin* % 6.5 6.5 0 pp EPS Cps 52.3 47.3 + 10.6% DPS (Fully Franked) Cps 40.0 35.0 + 14.3% Return on Equity (Average)* % 5
Slide 12: Historical Performance
Historical Performance HY11 700.1 HY11 74.0 HY11 45.5 FY10 1275.4 FY10 129.4 FY10 83.2 FY09 1122.5 FY09 116.1 FY09 74.2 FY08 954.0 FY08 104.5 FY08 66.2 FY07 963.7 FY07 94.0 FY07 60.4 Sales Revenue ($M) EBITDA ($M) Net Profit After Tax ($M) +13.0% +15.4% +12.3% HY11 52.3 HY11 40.0 HY11 129.1 FY10 96.
Slide 13: NPAT Contribution Analysis
NPAT Contribution Analysis NPAT Contribution ($m) 49 47 1.9 (1.8) 0.2 (0.5) 45 43 5.2 41 45.5 39 40.5 37 35 HY10 NPAT Sales Grow th Margin Grow th D&A Interest (Net) Tax HY11 NPAT 13
Slide 14: Cash Flow Performance
Cash Flow Performance HY11 61.5 HY11 107% FY10 96.0 FY10 98% FY09 113.8 FY09 127% FY08 92.5 FY08 116% FY07 96.3 FY07 127% Operating Cash Flow ($M) Cash Flow Conversion (%) Cash flow conversion (%) = cash flow (un-geared pre-tax) / EBITDA 14
Slide 15: Divisional Update
fl Monadelphous Divisional Update
Slide 16: Divisional Sales Revenue Summary
Divisional Sales Revenue Summary Dec 10 Dec 09 Change Engineering Construction $m 466.8 421.7 + 10.7% Maintenance and Industrial Services $m 188.1 176.9 + 6.3% Infrastructure $m 72.0 23.1* + 211.7% Internal Eliminations $m -26.8 -2.2 TOTAL $m 700.1 619.5 + 13.0% * Comparative includes Skystar sales
Slide 17: Engineering Construction
Engineering Construction Sales Revenue ($m) Sales Contribution (%) Highlights: HY11 466.8 • Record sales revenue of $467 million • Strengthening of the energy and resources market FY10 843.6 64% • Awarded more than $200 million in new construction contracts FY09 752.8 • Enhanced heavy-lift capabilit
Slide 18: Maintenance and Industrial Services
Maintenance and Industrial Services Sales Revenue ($m) Sales Contribution (%) Highlights: • Sales revenue up 6% to $188 million HY11 188.1 26% • Retained all existing customers and contracts FY10 376.2 • Secured 3yr Oil Search contract extension and associated gas works for LNG project • Established
Slide 19: Infrastructure
Infrastructure Sales Revenue ($m) Sales Contribution (%) Highlights: 10% • Sales revenue up 212% HY11 72.0 • Successful acquisition and integration of KT • Secured $170 million in new contracts FY10 59.0 • JV with AnaeCo secures WMRC Stage II Project FY09 33.0 • Significant investment in specialised
Slide 20: Strategy and Outlook
fl Monadelphous Strategy and Outlook
Slide 21: Strategy Progress
Strategy Progress 2011 Progress Markets & Growth • Maintained strong position in core markets • To maximise growth and returns from our core markets • Continued market expansion initiatives in energy of resources and energy and infrastructure • To build a new business in infrastructure markets • LNG
Slide 22: Market Conditions
Market Conditions Resources Energy $40 25 (Australian Mining Capex A$bn) (Australian Oil & Gas Capex A$bn) $35 20 $30 $25 15 $20 10 $15 $10 5 $5 $0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 20
Slide 23: Outlook
Outlook • Forward workload remains robust entering H2 of FY 2011 • Burgeoning pipeline of opportunities across all markets • Continued expansion of Infrastructure division • Skilled labour shortages continue to build – focus on attraction and retention • No significant impact to H2 earnings from Que
Slide 24: 2011 Interim Results Presentation
2011 Interim Results Presentation 22 February 2011
Slide 25: www.monadelphous.com.au
www.monadelphous.com.au 25
Slide 26: Disclaimer and Important Notice
Disclaimer and Important Notice Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited or any other company. Due care