Emeco Holdings Limited · ASX:EHL
Emeco — Non-Deal Roadshow (November 2010)
24 slides from Emeco's roadshow presentation, Nov 29, 2010
Slide 1: Investor Roadshow
For personal use only Investor Roadshow November 2010 Keith Gordon – Chief Executive Officer Ian Testrow – President Emeco Canada Steve Gobby – Chief Financial Officer
Slide 2: Presentation Overview
For personal use only Presentation Overview Strategy Canada Overview Operating Update
Slide 3: Strategy
For personal use only Strategy
Slide 4: Executing the Strategy
Executing the Strategy Current focus on Optimising the Core For personal use only Embed “Customer Centric” model in Incremental investment in growing mining markets core markets with quality Align Australia Sales and Parts with historical returns Rental (mining) Expand maintenance services
Slide 5: Focus on Customer Needs
Focus on Customer Needs Customer requirements vary but Emeco’s solution is used at all stages of mine life For personal use only Emeco’s Mine Mine Core Overburden Mining cycle Construction Development Production (Production) leverage: 6% 19% 42% 33% Customers Flexibility Equipment Mechanical Capital
Slide 6: Incremental Investment
Incremental Investment Investment of incremental capital in core businesses to deliver returns above the cost of capital For personal use only Returns from Core Businesses over 4 years Australia will remain around 75% of 21.5% earnings in short to medium term 25.0% Customer diversification and g
Slide 7: Canada Overview
For personal use only Canada Overview
Slide 8: Strategic Focus - Canada
Strategic Focus - Canada Fleet reconfiguration and commodity diversification first steps to deliver enhanced returns For personal use only Customers o Differentiating our offering from competitors through flexible, well supported solutions o Focus on increasing rental direct to miners (progress ma
Slide 9: Markets
Markets Volume growth outlook in target commodities supports investment thesis For personal use only Million tonnes Oil Sands Robust activity in core production and reclamation 1,000.0 750.0 works 500.0 250.0 Current rental fleet is much less reliant on development - works given its inherent vol
Slide 10: Canadian Fleet Evolution
Canadian Fleet Evolution Large mining equipment expected to deliver more consistent utilization For personal use only June 09: June 10: Oct 10: WDV C$99.4M WDV C$88.3M WDV C$97.9M 264 machines 154 machines 146 machines Civil Fleet, Civil Fleet, $22.1 Small Mining, $27.1 Small Mining, $37.7 Small Min
Slide 11: Operating Update
For personal use only Operating Update
Slide 12: Rental Fleet Utilisation
Rental Fleet Utilisation Strong market activity and fleet optimization translating into higher utilization For personal use only Average Equipment Utilisation by WDV Customer activity levels driven by strong 100 % commodity outlook 95 % 88.1% Avg 90 % 83% Avg All core markets are contributing to
Slide 13: Business Unit Performance
Business Unit Performance Strong demand for equipment in Eastern Australia QLD For personal use only 100 % 90 % Recent wet weather had little impact on 80 % equipment utilisation (no major fleets in transit) 70 % Queensland 60 % Investment in 5 x 240 tonne trucks purchased 50 % and deployed in 1
Slide 14: Business Unit Performance
Business Unit Performance Strong sector activity in WA translating into sustained utilisation WA 100 % For personal use only 90 % New projects commissioned in FY10 now well 80 % established 70 % Western Australia 60 % Gold production expected to increase as new 50 % projects come on-line 40 % 30
Slide 15: Business Unit Performance
Business Unit Performance Revised strategy and strong market fundamentals providing growth opportunities offshore Canada 100 % For personal use only 90 % Reconfigured mining fleet highly utilized with 80 % strong activity in oil sands region 70 % 60 % Seasonal “freeze” and “thaw” periods will 50
Slide 16: Equipment
Equipment Progressing fleet evolution For personal use only June-10 September-10 Fleet mix proportions by net book value: Continue to increase weighting of large mining equipment Acquisition of $29M large mining fleet in 1Q11, including 5x 240 tonne trucks Further downsizing of small civil equ
Slide 17: Recent activities
Recent activities Executing refinace and first half earnings guidance For personal use only 17
Slide 18: Market Outlook
Market Outlook Outlook in core markets remains positive For personal use only 18
Slide 19: Appendix
For personal use only Appendix
Slide 20: Geographies
For personal use only Geographies FY10 Rental WDV by FY10 Revenue Split FY10 Commodity Exposure Geographic Region (AUD $M) 5% 3% 37.5 3% 10% 6% 26% 74.1 135.3 11% 8% 4% 89.5 11% 59% 128.0 10% 19% 8% 107.6 16% Queensland Australian Rental Thermal Coal Coking Coal Western Australia Canada Gold Zinc Ca
Slide 21: Detailed Financials
Detailed Financials Profit & Loss Cash flow For personal use only A$ Millions 1H10 2H10 Var Var A$ Millions FY09 FY10 Var Var Operating Operating $ % A$ m A$ m A$ m % Revenue 208.5 235.9 27.4 13.1 Operating Cash flow 202.0 178.2 (23.8) (11.8) EBITDA 82.5 107.9 25.4 30.8 General Working Capital 15.7
Slide 22: Asset profile
Asset profile Independent supplier of well-maintained, best-in-class equipment For personal use only 35 tonne 50 tonne 100 tonne 150 tonne 200 tonne 250 tonne 300 tonne Small construction Super mines Truck 15 tonne 25 tonne 35 tonne 45 tonne 60 tonne 100 tonne 150 tonne Dozer Small construction Larg
Slide 23: Company Contact Details
For personal use only Company Contact Details Thank you for your interest in Emeco Further investor enquiries should be directed to: Keith Gordon CEO Stephen Gobby CFO Graham Borgerson Investor Relations emecogroup.com
Slide 24: Disclaimer
For personal use only Disclaimer Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.