Monadelphous Group Limited · ASX:MND
Monadelphous — FY2013 Earnings Presentation
26 slides from Monadelphous's earnings presentation, Aug 20, 2013
Slide 1: 2013 Full Year Results
2013 Full Year Results 20 August 2013
Slide 2: Company Profile
Company Profile Monadelphous Group Limited (ASX:MND) is an S&P/ASX 100 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sector throughout Australasia. Market Earnings Dividends People Revenue capitalisation per share per share 7,418
Slide 3: Group Highlights
Group Highlights 12th consecutive year of earnings growth • Sales revenue up 37.8% to $2,614m Financial • NPAT up 24.1% on prior year underlying^ to $156.3m • EPS up 21.5%^ to 173c, DPS up 9.6% to 137c • Extraordinary surge in construction activity • Outstanding safety performance against abnormal g
Slide 4: Contract Activity
Contract Activity Geographic representation 4 4
Slide 5: Sales Revenue Analysis
Sales Revenue Analysis *SMP - Structural, mechanical and piping; E&I - Electrical and instrumentation; O&M - Operations and maintenance. 5
Slide 6: Contracts Secured
Contracts Secured $1.3b of new contracts and contract extensions 6
Slide 7: Safety Scorecard
Safety Scorecard Outstanding safety performance Record safety performance in rapid- growth environment TCIFR improved 31.6% to 4.1 incidents per million man-hours worked Launched Life Saving Rules Integrated Safety Leadership Program into operations 7
Slide 8: People Performance
People Performance Successful recruitment campaign to meet extraordinary project demands New website and enhanced corporate and employer branding Established Employee Development Centre Reconciliation Action Plan (RAP) launched 8
Slide 9: Financial Performance
Financial Performance Group highlights Unit FY13 FY12 Change Sales Revenue $m 2,614.1 1,897.5 +37.8% EBITDA^ $m 247.0 196.5 +25.7% EBITDA Margin^ % 9.45 10.35 -0.90pp* NPAT^ $m 156.3 126.0 +24.1% NPAT Margin^ % 5.98 6.64 -0.66pp* EPS^ cps 173.0 142.4 +21.5% Operating Cash Flow $m 113.2 138.6 -18.3%
Slide 10: Financial Position and Funding
Financial Position and Funding Balance sheet remains robust Jun-13 Jun-12 Change $m $m Cash at Bank 195.3 203.6 -4.0% Net Cash Position 140.2 152.9 -8.3% (Cash less interest bearing loans and borrowings) Capital Expenditure 46.4 74.2 -37.5% (Cash and Hire Purchase) Capital Expenditure Commitments 1.
Slide 11: Historical Performance
Historical Performance Historical Performance Sales Revenue ($M) EBITDA^ ($M) Net Profit After Tax^ ($M) +37.8% +25.7% +24.1% Earnings Per Share^ (Cents) Dividends Per Share (Cents) Net Cash Position ($M) +21.5% +9.6% -8.3% ^ = Underlying basis. Refer to slide 23 for reconciliation 11
Slide 12: Cash Flow Performance
Cash Flow Performance Cash Flow Performance Operating Cash Flow ($M) Operating cash flow impacted by working capital increase due to: • Significant surge in construction activity H2 • Concurrency of large projects approaching completion H1 • Customers lengthening duration of contract claim and payme
Slide 13: Net Profit After Tax Analysis
Net Profit After Tax Analysis NPAT waterfall ($M) ^ = Underlying basis. Refer to slide 23 for reconciliation 13
Slide 14: Divisional Sales Revenue Summary
Divisional Sales Revenue Summary Growth in all divisions FY13 FY12 Change $m $m Engineering Construction* 1,783.9 1,144.5 +55.9% Maintenance & Industrial Services 644.0 634.5 +1.5% Infrastructure 199.8 133.3 +49.9% Internal Eliminations -13.6 -14.8 Total 2,614.1 1,897.5 +37.8% * Comparative restated
Slide 15: Engineering Construction
Engineering Construction Highlights Sales Revenue Revenue grew 56% to $1.78 b Iron ore and coal projects dominate revenue landscape $M $700m of new contracts $M Major Project Involvement Major Project Secured • BHPB, PHIHP, Finucane Island & Nelson • BHPB Jimblebar, Newman, WA Point, WA • Rio
Slide 16: Maintenance and Industrial Services
Maintenance and Industrial Services Highlights Sales Revenue $600m in new contracts and extensions Strong growth in oil and gas maintenance activity $M Secured Woodside and QGC LNG services contracts Consolidation within division Contract Extensions New Contracts • Rio Tinto, coastal and inl
Slide 17: Infrastructure
Infrastructure Highlights Sales Revenue Strong sales growth of 50% Transition of water into EC and energy services into M&IS $M 20% growth in aviation services Major Project Involvement New Contracts • Rio Tinto, Coastal Waters Project, • Unitywater, upgrade to Maleny Sewage Pilbara Region, WA
Slide 18: Strategy
Strategy Progress during the year Markets and Growth • Capitalised on our leadership position in To maximise growth and returns from core core markets markets of resources and energy • Strengthened our position in oil and gas To build a substantial business in • Established support office in Mon
Slide 19: Australian Market Conditions
Australian Market Conditions Resources Significant change in outlook for the Australian resources sector in the past 12 months Construction activity forecast to peak in 2013 Forecast capex is approximately $204 b over five years Energy Increased activity in oil & gas sector expected to offse
Slide 20: Australian Market Conditions (cont’d)
Australian Market Conditions (cont’d) Infrastructure Construction activity forecast to remain flat Maintenance Activity expected to grow as new projects are commissioned and operations come on stream Compared to April 2012 - $561b Source: BIS Shrapnel Mining Investment by Commodity New Fixed Cap
Slide 21: Project Pipeline
Project Pipeline Regional investment for committed projects is ~$268b Expected Significant Prospects Capex Start-up Ichthys Gas Field (including Darwin LNG Plant) Underway $33b Inpex/Total Wheatstone LNG Underway $29b NT Chevron/Apache/KUFPEC/Shell $34b Upstream Queensland CSG Projects 13% Qld - Que
Slide 22: Outlook
Outlook Consolidation after surge in growth • Market conditions in the resources sector have significantly tightened • Revenue levels for FY2014 expected to moderate after abnormal growth surge • Continued focus on cost reduction and productivity improvements to protect margins Opportunity pipeline
Slide 23: Non-IFRS Financial Information
Non-IFRS Financial Information ^ Reconciliation 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 c
Slide 24: Important Notice
Important Notice Disclaimer 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 and
Slide 25: Analyst Questions
Analyst Questions 25 nl Monadelphous
Slide 26: Contact Information
Contact Information www.monadelphous.com.au Information for Investors/Analysts: Rachel Cooper, Investor Relations Manager Telephone: +61 (08) 9315 7429 Email: [email protected] 26