Mlg Oz Ltd · ASX:MLG
Mlg Oz — Investor Presentation (August 2023)
20 slides from Mlg Oz's investor presentation, Aug 23, 2023
Slide 1: Full Year Financial Results
FULL YEAR FINANCIAL RESULTS For year ended 30 June 2023 23 AUGUST 2023
Slide 2: Disclaimer
Disclaimer Forward looking statements This release contains certain forward looking statements and forecasts, including in relation to possible or assumed future performance, costs, dividends, rates, prices, revenue, potential growth of MLG Oz Limited, industry growth or other trend projections. Suc
Slide 3: Significant Improvement in Financial Performance
SIGNIFICANT IMPROVEMENT IN FINANCIAL PERFORMANCE • Strong revenue growth Statutory Revenue - Rates renegotiated to reflect market conditions - Material increase in headcount driving productivity $383.8m 32.4% ($289.8m FY22) • Cost pressures remain (Labour market still very constrained and parts and
Slide 4: Statutory Result Reflects Sale of Crushing Plants
STATUTORY RESULT REFLECTS SALE OF CRUSHING PLANTS Statutory Revenue Sale of crushing plants Statutory Revenue $383.8m $383.8m 32.5% ($289.8m FY22) ($289.8m FY22) Statutory EBITDA Underlying EBITDA $35.0m Write off Inventory/Ancilliary $3.1m $38.1m ($30.0m FY22) 27.0% ($30.0m FY22) Loss on Disposal L
Slide 5: Operational Focus Has Improved Performance
OPERATIONAL FOCUS HAS IMPROVED PERFORMANCE • Very challenging start to the financial year First Half vs Second Half - Rapid escalation of input costs $207.9m $175.9m Revenue - Volatile fuel market drove higher costs 18.2% - Tight labour market with rapid wage inflation • Heavy focus on systems $21.
Slide 6: Continuing High Demand for MLG Services
CONTINUING HIGH DEMAND FOR MLG SERVICES CIVILS & MINING - First Open pit mining contract nearing completion (Barren Lands) - Preferred supplier for TS4 at Gruyere INTEGRATED SERVICES - Commenced with Westgold (Cue & Meeka and Fortnum) CRUSHING - Renewal of works underway with Ora Banda at Davyhurst
Slide 7: High Demand for Construction Materials
HIGH DEMAND FOR CONSTRUCTION MATERIALS STRATEGICALLY LOCATED QUARRY ASSETS - Materially increasing demand for volume - Forms key integration with our client needs - Capacity to expand - 100% MLG controlled - Key area of focus for FY2024 in delivery and margin - Two new quarry sites, strategically lo
Slide 8: Headcount a Key Driver to Utilisation and Revenue
HEADCOUNT A KEY DRIVER TO UTILISATION AND REVENUE OUR PEOPLE EMPLOYEES 1,000 40.0% • Turnover in industry 875 878 874 900 849 850 continues to remain high 790 800 822 840 35.0% 800 779 722 30.0% • 31.4% increase in 700 667 647 headcount over last 12 25.0% 600 months 500 20.0% • New to Industry train
Slide 9: Financial Performance
FINANCIAL PERFORMANCE MLG
Slide 10: Financial Performance – FY2023
FINANCIAL PERFORMANCE – FY2023 Pro forma1 revenue 400.0 350.0 383.8 FY2023 FINANCIAL PERFORMANCE *Pro-Forma Pro Forma Pro Forma Underlying Statutory Statutory 300.0 250.0 286.8 $000’s Notes FY23 FY23 FY22 254.0 $Am 200.0 Revenue 200.0 205.0 150.0 Mine Site Services and Bulk Haulage 329,943 329,943 2
Slide 11: Cashflow and Capital Expenditure
CASHFLOW AND CAPITAL EXPENDITURE • $36.0m Underlying cash flow – Pro Forma1 Historical Underlying Adjusts EBITDA for $3.1m non-cash write off in $'000 Notes FY20 FY21 FY22 FY23 inventory/ancillary equipment EBITDA 24,482 42,719 30,044 35,033 related to sale of high- Movement in net working capital 4
Slide 12: Capital Management & Balance Sheet Position
CAPITAL MANAGEMENT & BALANCE SHEET POSITION F I NANCIAL L I ABI LI TIES Consolidated Consolidated $000’s 30 June 2023 30 June 2022 15.7% Cash and cash equivalents 144 210 Trade and other receivables 47,381 45,272 Inventories 14,551 18,162 Total current assets 62,075 63,644 $64.2m Property, plant an
Slide 13: Structure of Financial Debt
STRUCTURE OF FINANCIAL DEBT • 90% of Financial debt at end of June 2023 is hire purchase equipment finance - Multi tenor loans with fixed rates secured by single assets - Typically 3 year contracts (where long dated rates closely align we will utilise 4/5 year term facilities) Multi tenor maturities
Slide 14: Outlook
OUTLOOK MLG
Slide 15: Achievements in FY2023 and Focus for FY2024
ACHEIVEMENTS IN FY2023 AND FOCUS FOR FY2024 27% improvement in underling EBITDA (second half up 30.9% on first half) >30% increase in our workforce Opportunity - FY2024 >30% increase in revenue (renegotiated rates and growth) Sale of our two high-capacity crushing plants – decommissioning co
Slide 16: Revenue Growth and Margin Expansion
REVENUE GROWTH AND MARGIN EXPANSION Continued growth expected into FY2024 • Continued high activity and client demand expected to drive revenue growth - Full year impact of renegotiated rates - Client growth aspirations expected to drive greater volume for MLG - Continued headcount expansion to driv
Slide 17: Business Model (Appendix)
BUSINESS MODEL (Appendix) MLG
Slide 18: About MLG
ABOUT MLG Long term sustainable partner of choice OUR WAY OF DOING BUSINESS FOUNDER LED BUSINESS SAFETY AND ENVIRONMENT [ >50% ownership ] This is our number one priority, it underlines every activity we undertake. INTEGRITY & TRUST ASX LISTED: Being honest, fair and ethical in the way [ ASX:MLG ] w
Slide 19: Integrated Services Model
INTEGRATED SERVICES MODEL BENEFIT OF INTEGRATED MODEL MINE • Single service provider SITE QUARRY ASSETS • Single contractual management touch point Site Construction MINE Services MINE • Reduced duplication (single Materials SITE SITE workshop, shared equipment) CLIENT • Processing facilities typica
Slide 20: Where We Operate
WHERE WHERE WE WE OPERATE OPERATE