Monadelphous Group Limited · ASX:MND
Monadelphous — Shareholder Meeting (2007)
22 slides from Monadelphous's shareholder meeting presentation, 2007
Slide 1: 2007 annual results
2007 annual results strong compound profit growth
Slide 2: Highlights
highlights Continued exceptional organic growth … Earnings Per Share 102% to 73.6c, 05/06 73%, 04/05 90% … driven by surge in construction activity … … and further margin improvement Strong balance sheet Market capital over $1b and now in ASX 200 Workforce up 28% to 4034 in tight labour market Strat
Slide 3: Financial highlights
financial highlights Jun-07 Jun-06 % Change Sales Revenue $m 963.7 532.0 81% EBITDA $m 94.0 49.0 92% Net Profit After Tax $m 60.4 29.4 106% Earnings Per Share cps 73.6 36.5 102% Total Dividends cpsff 66.0 33.0 100% Operating Cash Flow $m 96.3 66.8 44%
Slide 4: Strong balance sheet
strong balance sheet Jun-07 Jun-06 % Change Cash $m 101.4 61.7 64% Debt $m 27.5 26.4 4% Net Cash $m 73.9 35.3 109% Bank guarantee facilities $m 145.0 72.5 100% Capital expenditure $m 19.4 23.5 -18% Strong cash position 90% dividend payout ($36.5m) High working capital movements and sharp increase in
Slide 5: Revenue & profit growth
revenue & profit growth sales revenue $m profit after tax $m 60.4 963.7 CAGR 44.2% CAGR 66.2% 532.0 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 73.6 66.0 CAGR 62.4% CAGR 79.9% 36.5 33.0 21.1 19.3 9.6 11.1 6.5 6.3 7.5 3.5 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Interim Dividend Final Dividend Special Dividend
Slide 7: EBITDA and operating cash flow
EBITDA and operating cash flow EBITDA $m cashflow from operations $m 94.0 96.3 66.8 49.0 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 % 9.8% 9.2% 7.7% 7.3% 7.4% 6.3% 6.3% 5.5% 4.3% 3.9% 3.1% 2.9% 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007
Slide 9: Exceptional return on equity
exceptional return on equity return on equity % 66.8% 47.3% 36.1% 20.7% 21.7% 17.2% 2002 2003 2004 2005 2006 2007
Slide 10: Strong shareholder returns
strong shareholder returns 5 year share price history $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Total shareholders returns- at June 2007: 1 year 153% 5 years 2376%
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 12.6 2002 2003 2004 2005 2006 2007
Slide 12: Increasing workforce
increasing workforce employee numbers 4034 3142 1740 1539 1376 1198 2002 2003 2004 2005 2006 2007
Slide 13: Our work locations
ill Monadelphous our work locations @ Iron Ore A Power @ Coal @ Copper IN Nickel @ Gold A Chemical L. Lead 4 Qil and Gas & Zinc A Pig tron V Uranium 4 Alumina/Aluminum Barrow Island Thevenard Island A> Brisbane AGibson Island r Valley Perthil Pinjarra
Slide 14: Revenue by division
revenue by division Jun-07 Jun-06 % Change Engineering Construction $m 657.5 289.3 127% Maintenance and Industrial Services $m 262.5 207.6 26% Electrical and Instrumentation Services $m 71.8 26.0 176% Skystar $m 19.2 14.8 30% Eliminations $m -47.2 -5.8 TOTAL $m 963.7 532.0 81%
Slide 15: Engineering construction division
engineering construction division sales revenue $m 657.5 289.3 239.8 109.6 2004 2005 2006 2007 Dec Half June Half Revenue 127% on last year – $500m of work won in previous year Levelling off in second half activity did not eventuate – faster than expected progress on projects and scope growth
Slide 16: EC division highlights
EC division highlights Major contracts during 2006/07: BHP Billiton Iron Ore RGP2 - Nelson Point & Finucane Island Port Expansion RGP3 - Nelson Point & Finucane Island Port Expansion RGP3 - Mining Area C Expansion RGP3 - Car dumper Rio Tinto Iron Ore DPU Phase B Yandicoogina mine expansion Yandi Jun
Slide 17: Maintenance & industrial services division
maintenance & industrial services division sales revenue $m 262.5 207.5 136.9 108.0 2004 2005 2006 2007 Dec Half June Half Revenue 26% on last year Retention of all major contracts and increased service volumes Full period revenues from newly established contracts Significant further expansion into
Slide 18: M&IS division highlights
M&IS division highlights Ellavale Engineering acquisition to expand coal services in NSW and Qld Oil and Gas Contracts ConocoPhillips - Darwin LNG facility maintenance support services Oil Search – PNG Facility Construction Services Chevron - Barrow & Thevenard Island maintenance services extended t
Slide 19: Electrical & instrumentation division
electrical & instrumentation division MIE sales revenue $m 71.8 26.0 2006 2007 Dec Half June Half Revenue 176% from last year Major works carried out through EC division, including Yabulu and CQPA Key strategic focus – geographic expansion into WA
Slide 20: Airport services division
airport services division Skystar sales revenue $m 19.2 14.8 7.3 3.1 2004 2005 2006 2007 Dec Half June Half Revenue 30% from last year Full period revenues from contracts secured last year
Slide 21: Our strategy
our strategy Growth strategies: Maximise returns from core markets (mineral resources) Geographic (QLD, SA & NSW) and service expansion (electrical) Diversify into new markets Further development into oil & gas and infrastructure markets Support strategies: Right people, right culture strategy Build
Slide 22: Outlook
outlook Maintaining level of construction workload in the short term will be challenging … … however construction pipeline remains strong Quality and timing of projects together with capacity are critical factors Maintenance services market to grow from new operations coming on stream Margins likely