Perenti Limited · ASX:PRN
Perenti — H1 FY19 Earnings Presentation
34 slides from Perenti's earnings presentation, Feb 21, 2019
Slide 1: Half year results to 31 December 2018
Half year results to 31 December 2018 20 February 2019
Slide 2: Managing Director action for the first 5 months
Managing Director action for the first 5 months ▪ Successfully completed the acquisition of leading underground mining contractor, Barminco, transforming Ausdrill into the second largest mining services company in Australia ▪ Integration of the Barminco business successfully completed – on target to
Slide 3: Our operating model
Our operating model Underground Mining Surface Mining Investments H1 FY19 proforma external H1 FY19 proforma H1 FY19 proforma external H1 FY19 proforma H1 FY19 proforma external H1 FY19 proforma sales revenue (%) EBIT (A) (%) sales revenue (%) EBIT (A) (%) sales revenue (%) EBIT (A) (%) 52% 65% 40%
Slide 4: Enhanced organisation design and governance focus
Enhanced organisation design and governance focus Board Managing Director Chief Chief Chief Chief CEO CEO COO Financial People Development Technology Underground Surface Investments Officer Officer Officer Officer ▪ New organisational structure designed to support the New Ausdrill business now and i
Slide 5: Performance highlights
Performance highlights
Slide 6: Half Year Performance Highlights
Half Year Performance Highlights ▪ All key safety indicators improved during the period ▪ H1 FY19 proforma sales revenue of $971.7 million, up 16% ▪ H1 FY19 proforma profit after tax of $55.2 million, up 33% ▪ H1 FY19 proforma earnings per share of 16.2 cents, up 31% ▪ Fully franked interim dividend
Slide 7: Safety and People
Safety and People TRIFR: Total Recordable Injury Frequency Rate Employees 7,502 20 14.4 5,278 15 4,578 4,582 10.7 4,080 3,841 10 6.6 6.0 5 3.5 3.2 0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-18 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-18 ▪ Ausdrill’s commitment to safety remains a core ▪ The number of em
Slide 8: We delivered on our expectations
We delivered on our expectations Underlying adj. Underlying EBITDA Underlying EBIT (A) EPS(A) (cents) margin (%) margin (%) +2% A +60bps B +10bps C 15.8 16.2 20.1% 20.7% 10.6% 10.7% ROACE Net debt / DPS (%) Underlying EBITDA (x) (cents) +190bps D ― E na F 16.4% 14.5% 1.4 1.4 TBC 6.2 3.5 FY18 New Aus
Slide 9: Financial performance
Financial performance
Slide 10: H1 FY19 Reconciliation of proforma to statutory results
H1 FY19 Reconciliation of proforma to statutory results Sales $million EBITDA EBIT NPAT revenue Statutory results 640.2 284.1 213.7 217.0 Less non-recurring items below (items G to K) AUMS step acquisition gains - (198.4) (198.4) (198.4) G Transaction and one-off redundancy costs - 13.9 13.9 14.1 H
Slide 11: Proforma Profit & Loss
Proforma Profit & Loss $million 6 mths to 6 mths to Change Dec 17 Dec 18 Sales revenue 838.2 971.7 15.9% EBITDA 172.5 201.2 16.7% EBITDA margin 20.6% 20.7% 10bps EBIT (before amortisation) 93.0 103.6 11.3% EBIT (before amortisation) margin 11.1% 10.7% 40bps PBT (before amortisation) 56.5 6
Slide 12: Proforma Group Results
Proforma Group Results External Sales EBIT (A) ($m) EBIT (A) Margin ROACE Revenue ($m) 971.7 103.6 17.0% 16.4% 93.0 11.1% 838.2 10.7% H1 FY18 Proforma H1 FY19 Proforma ▪ Revenue up 15.9% delivering H1 FY19 proforma EBIT (before amortisation) growth of 11.3% from H1 FY18 proforma EBIT ▪ Revenue and E
Slide 13: Proforma Underground Mining
Proforma Underground Mining External Sales EBIT (A) ($m) EBIT (A) Margin ROACE 52% of Group Revenue ($m) 72.4 14.3% Revenue 506.7 43.8% 12.2% 414.2 34.7% 50.7 65% of Group EBIT (A) H1 FY18 Proforma H1 FY19 Proforma ▪ Comprises Barminco and African Underground Mining Services (AUMS) ▪ Strong revenue
Slide 14: Proforma Surface Mining
Proforma Surface Mining External Sales EBIT (A) ($m) EBIT (A) Margin ROACE 40% of Group Revenue ($m) 390.3 35.8 12.3% Revenue 348.6 28.5 10.3% 7.3% 7.9% 25% of Group EBIT (A) H1 FY18 Proforma H1 FY19 Proforma ▪ Comprises African Mining Services (AMS) (~73%) and Drilling Services Australia (DSA) (~27
Slide 15: Proforma Investments
Proforma Investments External Sales EBIT (A) ($m) EBIT (A) Margin ROACE 8% of Group Revenue ($m) 75.4 74.7 10.8 Revenue 14.5% 10.4% 8.9 11.8% 8.1% 10% of Group EBIT (A) H1 FY18 Proforma H1 FY19 Proforma ▪ Comprises BTP Group, MinAnalytical, Energy Drilling Australia (EDA), Supply Direct and Well Con
Slide 16: Statutory Balance Sheet
Statutory Balance Sheet $million Jun 18 Dec 18 Cash and cash equivalents 137.3 198.9 Receivables 230.5 362.9 Inventories 212.6 317.3 Property, plant and equipment 664.3 897.3 Goodwill and intangibles - 765.8 Other assets 123.1 121.4 Total assets 1,367.8 2,663.5 Payables 122.8 221.8 Borrowings 404.6
Slide 17: Group Debt and Funding
Group Debt and Funding Group Debt ($million) Jun 18 Dec 18 Maturity Profile ($million) US$350 million secured notes - 493.3 600 US$300 million unsecured notes 405.0 - 500 Revolving Credit Facilities - 200.2 400 Asset finance and other funding (0.4) 53.1 300 Total borrowings 404.6 746.6 200 Cash and
Slide 18: Statutory Cash Flow
Statutory Cash Flow 6 mths to 6 mths to $million Dec 17 Dec 18 Operating cash flows before interest and tax 62.4 93.4 Interest and tax (22.3) (42.7) Operating cash flows after interest and tax 40.1 50.7 Net debt (repayments)/proceeds (1.5) (225.8) Capital expenditure (78.1) (76.6) Proceeds from asse
Slide 19: Cash Conversion - Statutory
Cash Conversion - Statutory 6 mths to 6 mths to $million Dec 17 Dec 18 Underlying EBITDA 92.2 130.8 Share of profits from AUMS (9.2) (10.7) Adjusted EBITDA 83.0 120.1 Movement in receivables (15.3) 18.5 Movement in inventories (2.2) (25.0) Movement in payables 3.5 (27.0) Other non-cash items (6.6) 6
Slide 20: Outlook and strategy
Outlook and strategy
Slide 21: Outlook
Outlook ▪ Underground mining is presenting significant organic growth opportunities across Australia and Africa. We believe that the strong orderbook coupled with the organic growth opportunities makes a strong case for continued growth in underground ▪ Surface mining is presenting significant organ
Slide 22: We have a strong foundation to build on
Strategy We have a strong foundation to build on… ▪ The Ausdrill group has been transformed into Australia’s second largest mining services provider with proforma revenues of ~$1.9 billion and significantly enhanced financial metrics ▪ We have a great business with a strong balance sheet to capitali
Slide 23: Our aspiration … to become indispensable to our customers
Our aspiration … to become indispensable to our customers Strategic pillars to deliver certainty – underpinned by our people and principles Strategic Operational Strategic Organisational Technology Financial Pillars Excellence Growth Health Driven Future Capacity Horizon 1: • Transform AMS • Portfol
Slide 24: Appendices
Appendices
Slide 25: Working across 50 projects globally
Working across 50 projects globally Australia Africa India Western Australia ▪ Independence Group - Mali Burkina Faso India Nova Bollinger ▪ BHPBIO – Various ▪ Resolute Mining –Tabakoroni ▪ SEMAFO – Boungou ▪ Hindustan Zinc – Rampura Agucha ▪ Process Minerals ▪ Gold Fields - Agnew, ▪ Hummingbird – Y
Slide 26: H1 FY19 proforma revenue diversification
H1 FY19 proforma revenue diversification Sales revenue by business activity Sales revenue by geography 1% 8% Underground 4% 45% Australia Ghana 52% 3% Burkina Tanzania Surface 7% Mali Senegal Investments 7% Egypt Other 40% 11% 21% Sales revenue by top customers Sales revenue by commodity 1% 2% 18% A
Slide 27: Share information
Share information Share Price Performance (rebased) ASL.ASX XJO.ASX 110% 100% 90% 80% 70% 60% 50% 40% 29 Dec 17 06 Feb 18 13 Mar 18 19 Apr 18 25 May 18 02 Jul 18 06 Aug 18 10 Sep 18 15 Oct 18 19 Nov 18 24 Dec 18 Capital Structure Substantial Shareholders Share price $1.59 Name Shareholding Fully pai
Slide 28: Statutory Profit & Loss
Statutory Profit & Loss 6 mths to 6 mths to $million % Change Dec17 Dec18 Continuing operations Sales revenue 439.7 640.2 45.6% Materials (171.2) (248.5) 45.2% Labour (149.6) (211.1) 41.1% Rental and hire (8.2) (10.5) 28.4% Share of associates profits 9.2 10.7 16.8% Other items (27.7) 103.3 (473.0
Slide 29: Statutory Balance Sheet
Statutory Balance Sheet $million Jun 18 Dec 18 Cash and cash equivalents 137.3 198.9 Receivables 230.5 362.9 Inventories 212.6 317.3 Property, plant and equipment 664.3 897.3 Goodwill and intangibles - 765.8 Other assets 123.1 121.4 Total assets 1,367.8 2,663.5 Payables 122.8 221.8 Borrowings 404.6
Slide 30: Statutory Cash Flow
Statutory Cash Flow $million 6 mths to 6 mths to Dec17 Dec18 Receipts from customers (inclusive of GST) 455.4 697.5 Payments to suppliers and employees (inclusive of GST) (393.3) (604.5) 62.1 93.1 Interest received 1.2 2.3 Interest and other costs of finance paid (14.4) (37.0) Income taxes received
Slide 31: Capital Expenditure - Statutory
Capital Expenditure - Statutory Statutory Statutory Proforma $million 6 mths to 6 mths to 6 mths to Dec 17 Dec 18 Dec 18 Underground Mining - 22.9 74.9 Surface Mining 72.0 41.3 41.3 Investments 6.0 12.2 12.2 Corporate and Finance 0.1 0.2 0.2 Proceeds from asset sales (4.4) (2.0) (2.0) Capital expend
Slide 32: Notes
Notes Ausdrill’s statutory results are reported under International Financial Reporting Standards and includes various non-recurring items. Reconciliation of proforma to statutory results are shown on slides 11 to provide a greater understanding of the underlying financial performance of the New Aus
Slide 33: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Ausdrill Presentation. This Presentation has been prepared without taking into account the investment Limited ABN 95 009 211 474 (ASX:ASL) (“Ausdrill”) as an Investor Presentatio
Slide 34: Thank you
Thank you