Mader Group Ltd · ASX:MAD
Mader — H1 2020 Earnings Presentation
25 slides from Mader's earnings presentation, Feb 26, 2020
Slide 1: 2020 Interim Results
For personal use only 2020 Interim Results MADER GROUP LIMITED | 26 FEBRUARY 2020
Slide 2: 1H20 Highlights
1H20 Highlights For personal use only • Successfully listed on the ASX REVENUE CHANGE (FROM 1H19) • Purely organic revenue growth of 20.2% made up of: $132.7 M + 20.2% • Revenue growth in all Australian regions ADJUSTED EBITDA1 • Strong revenue growth in USA • Decline in International revenues $16.0
Slide 3: Group Outlook
Group Outlook Financial • Revenue increased 20% on 1H19 from purely organic growth For personal use only Guidance and Outlook • FY 2020 IPO Prospectus forecast re-affirmed, based on: Revenue by Region • First half revenue and EBITDA ahead of expectations at the 140 time of IPO • 1H20 adjusted net pr
Slide 4: Western Australia Outlook
Western Australia Outlook For personal use only 100 Financial • Western Region 1H20 revenue up 26% from 1H19 Region 90 Summary Revenue up • Pilbara 1H20 Revenue up 25% 80 • Goldfields 1H20 Revenue up 36% • Perth Metro 1H20 Revenue up 10% 26% From 1H19 70 Revenue A$ m • Revenue in line with forecast;
Slide 5: Eastern Australia Outlook
Eastern Australia Outlook For personal use only Financial • Eastern Region 1H20 revenue up 43% from Summary 1H19 25 Region • QLD revenue up 30% Revenue up by • NSW revenue up 109% 20 43% From 1H19 • • Revenue up on forecast Growth purely organic Revenue A$ m 15 QLD Outlook • Demand in Bowen Basin an
Slide 6: Central Corridor Outlook
Central Corridor Outlook For personal use only 12 Region Revenue up by 10 8% Financial Summary • Steady revenue growth From 1H19 • Recent division spin off (Q2 FY2020) to resource a management team with a Revenue A$ m 8 SA dedicated regional focus in 2H20 Revenue up by 6 NT • Currently 7.3% of group
Slide 7: International Outlook
International Outlook For personal use only 18 Financial • Revenue and profit softened in 1H20; expect further 16 softening in Q3 FY2020 due to reduced contract Summary volumes 14 • Contracts delivered in West Africa Q2 2020 12 Outlook Revenue A$ m • Contract in Southeast Asia delivered Q3 2020 10 S
Slide 8: United States of America Outlook
United States of America Outlook Revenue For personal use only growth of Financial Summary • • 1H20 in profit Revenue and profit exceeding forecast 3.0 317% From 2H 2019 • 317% revenue growth from 2H19 to 1H20 2.5 Outlook • Strong organic growth into recently established regions, working at or vende
Slide 9: Profit & Loss
Profit & Loss For personal use only Currency: A$’000 1H19 1H20 Revenue 110,398 132,719 • First half revenue and EBITDA ahead of EBITDA 12,670 15,411 expectations at the time of preparing the FY20 prospectus forecast … EBITDA margin 11.5% 11.6% • 1H20 adjusted NPAT ($8.7m) slightly EBIT 11,055 12,384
Slide 10: Balance Sheet
Balance Sheet For personal use only Currency: A$’000 FY 2019 1H20 • Simple balance sheet Cash and cash equivalents 3,049 5,862 • Principal asset is receivables Receivables 54,494 54,739 • ~ 2.5x monthly revenue Tax Assets 1,896 1,898 • Property, plant and equipment primarily Other assets 1,773 4,137
Slide 11: Cashflow
Cashflow For personal use only Currency: A$’000 1H19 1H20 • Operating cash flow of $3.7 million was a $8.9 million improvement on 1H19. Earnings before interest and tax 11,055 12,384 • Operating cash flow before interest and tax (OCFBIT) of Interest received (paid) (667) (934) $8.4 million represent
Slide 12: Safety & People
Safety & People For personal use only Our goal is zero harm and we will continue to Injury frequency rates work with our employees and clients to achieve 7 this. 6 • Total recordable injury frequency rate 6.4 • Lost time injury frequency rate 1.9 5 • Continuous improvement to HSE systems and 4 proce
Slide 13: Appendices
For personal use only Appendices
Slide 14: Industry Outlook
Industry Outlook For personal use only Total Maintenance Expenditure (Mining) $13.10 $12.50 $12.10 $10.00 Growth in mining tonnes produced + aging fleets = $9.70 increasing demand for maintenance labour $8.70 DOLLAR VALUE ‘BN $7.90 $7.40 $7.30 $7.00 A range of positive underlying trends for Mader: •
Slide 15: Our Journey
Our Journey For personal use only 1249 employees Mader lists on the Australian Stock Exchange 927 employees Mader enters USA 567 employees Mader enters NSW and SA 251 employees Mader enters QLD Mader opens first Mader International 100 employees Mader established workshop launched 2005 2009 2011 201
Slide 16: Expanding Global Platform
Expanding Global Platform For personal use only EAST ASIA Mongolia Northern Territory USA Tanami Nevada Queensland Wyoming Brisbane Arizona Bowen Basin Tennessee Surat Basin New Mexico Far North Queensland New South Wales AFRICA Hunter Valley Mauritania Gunnedah Basin Senegal Western Australia South
Slide 17: Growth opportunities and addressable market
Growth opportunities and addressable market For personal use only MTPA means Million Metric Tonnes Per Annum (FY2018 Run of Mine Production) ▪ Current markets ▪ Recently entered markets ▪ Potential markets CENTRAL ASIA MTPA CANADA MTPA Mongolia 123 Canadian Copper (excl. Gold) 88 Canadian Gold 155 S
Slide 18: Competitive Position
Competitive Position For personal use only Mader believes it differs from its competitors on its combination of value, flexibility, quality and capacity. Longstanding relationships with top tier mining customers are built on quality of service and a focus by the Mader Group on its people, culture an
Slide 19: System & Scheduling
System & Scheduling For personal use only Mader Group coordinators strategically pair skilled staff with corresponding projects that match their skillset and availability. This sophisticated scheduling system has been developed and continuously refined since the company’s inception. Mutual Flexibili
Slide 20: Top Tier Client Base
Top Tier Client Base For personal use only Mader Group Limited 2020 Interim Results | February www.madergroup.com.au
Slide 21: Corporate Social Responsibility
Corporate Social Responsibility For personal use only Mader Group aim to empower communities, improve social dynamics and lessen inequality by sponsoring initiatives that support socio-economic development in remote areas and disadvantaged communities. We help fund a growing number of initiatives ac
Slide 22: Notes to financials
Notes to financials For personal use only Currency: A$’000 1H19 1H20 Statutory net profit after tax 8,034 8,061 Public company costs1 (228) - One-off offer costs2 201 856 Impact of accounting standard AASB 16 (134) - Impact of income tax3 48 (256) Adjusted net profit after tax 7,921 8,661 Adjusted n
Slide 23: Our Vision
For personal use only Our Vision To b e t h e o u t s o u r c e d p r o v i d e r o f c h o i c e ▪ To maintain our superior customer service, people and culture ▪ To be the first choice place of employment for quality tradespeople in equipment maintenance ▪ To replicate and grow our business model
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Mader Group Limited (ACN 159 340 397) “Mader”, “Mader Group” and the “Company”). The information contained in this presentation is for information purposes only. The information contained in this presentation is not investment o
Slide 25: Mader Group Limited
For personal use only Mader Group Limited