Slide 1: 2009 Interim Results Presentation
For personal use only 2009 Interim Results Presentation 17th February 2009
Slide 2: Agenda
Agenda For personal use only • HY09 highlights • Group • Financials • Return focus • People & safety • Operational reports: • Engineering Construction (EC) • Maintenance & Industrial Services (M&IS) • Electrical & Instrumentation Services (MIE) • Skystar Airport Services (Skystar) • Outlook 2 www.mo
Slide 3: HY09 highlights
HY09 highlights For personal use only • NPAT up 15% to $36.8m, EPS up 13% to 43.7c & DPS 30c • Sales revenue up 22% to $562.7m Financial • EBITDA up 12% to $57.5m, margins remain robust (10.2%) • Solid cash flow conversion – $74.5m operating cash flow • Strong organic growth across all business unit
Slide 4: Financial Highlights
Financial Highlights For personal use only Dec-08 Dec-07 % Change Sales Revenue $m 562.7 460.2 22% EBITDA $m 57.5 51.4 12% Operating Cash Flow $m 74.5 14.9 400% NPAT $m 36.8 32.1 15% EPS cps 43.7 38.6 13% DPS cpsff 30.0 29.0 3% Return on Equity (average) % 71.1 72.6 -2% 4 www.monadelphous.com.au
Slide 5: Strong Balance Sheet
Strong Balance Sheet For personal use only Dec-08 Dec-07 % Change Gross Cash $m 152.9 70.6 117% Debt $m 23.2 25.5 -9% Net Cash $m 129.7 45.1 188% Bank Guarantees & Utilised 137 89 54% Performance Bonds (Limit) $m (165) (145) Capital expenditure $m 11.2 8.0 41% • Strong net cash position • $25.8m int
Slide 6: Revenue & Key Drivers
Revenue & Key Drivers For personal use only sales revenue $m sales contributions % 2% 3% 2% 1% 1% 963.7 954.0 26% 32% 33% 35% 38% 7% 8% 9% 532.0 562.7 2% 5% 390.6 61% 65% 54% 59% 57% FY05 FY06 FY07 FY08 HY09 FY05 FY06 FY07 FY08 HY09 H1 H2 EC MIE M&IS Skystar 6 www.monadelphous.com.au
Slide 7: EBITDA & Margins
EBITDA & Margins For personal use only EBITDA $m EBITDA margin % (109.4) 104.5 (11.5%) 11.0% 94.0 10.2% 9.8% 9.2% 7.4% 57.5 49.0 29.0 FY05 FY06 FY07 FY08 HY09 FY05 FY06 FY07 FY08 HY09 Skystar divestment H1 H2 Skystar divestment Note: FY08 figures in brackets are (reported), otherwise normalised 7 ww
Slide 8: Operating Cash Flow & Conversion Rate
Operating Cash Flow & Conversion Rate For personal use only operating cash flow $m EBITDA to cash flow conversion % 96.3 156% 158% 92.5 127% 74.5 5-yr Avg : 123% 116% 66.8 105% 24.0 FY05 FY06 FY07 FY08 HY09 FY05 FY06 FY07 FY08 HY09 H1 H2 Note: Cash flow (ungeared pre-tax) = operating cash flow – net
Slide 9: NPAT & Margins
NPAT & Margins For personal use only NPAT $m NPAT margin % (69.6) (7.3%) 66.2 6.9% 6.5% 60.4 6.3% 5.5% 4.3% 36.8 29.4 16.7 FY05 FY06 FY07 FY08 HY09 FY05 FY06 FY07 FY08 HY09 Skystar divestment H1 H2 Skystar divestment Note: FY08 figures in brackets are (reported), otherwise normalised 9 www.monadelph
Slide 10: NPAT Contribution Analysis
NPAT Contribution Analysis For personal use only NPAT contribution $m 7.0 (2.9) 0.6 36.8 (0.7) 0.7 32.1 HY08 NPAT Sales Growth Margin Growth D&A Interest (Net) Tax HY09 NPAT Note: The above NPAT contribution analysis is not to scale (in order to enhance graphical readability) 10 www.monadelphous.com
Slide 11: Record Returns
Record Returns For personal use only earnings per share dividends per share (83.2) 79.1 72.0 73.6 66.0 43.7 36.5 33.0 30.0 21.1 19.3 FY05 FY06 FY07 FY08 HY09 FY05 FY06 FY07 FY08 HY09 H1 H2 Skystar divestment H1 H2 Note: FY08 figures in brackets are (reported), otherwise normalised 11 www.monadelphou
Slide 12: For personal use only
For personal use only 12 www.monadelphous.com.au
Slide 13: People Performance
People Performance For personal use only Highlights: employee numbers • Record employee numbers from high 4,782 operational activity 3,791 3,848 • Labour market conditions easing 2,926 • Focus on right sizing the workforce to 1,642 meet changing environment FY05 FY06 FY07 FY08 HY09 Group EC M&IS MIE
Slide 14: Safety Scorecard
Safety Scorecard For personal use only Highlights: total case injury frequency rate • TCIFR (a key safety metric) up slightly (TCIFR) after falling 50% since FY06 22.6 • Continued investment in HSE systems 17.3 and leadership training 12.6 8.6 9.6 • DuPont Safety Review completed and opportunities f
Slide 15: For personal use only
For personal use only 15 www.monadelphous.com.au
Slide 16: Operational Reports
Operational Reports For personal use only Dec-08 Dec-07 % Change Engineering Construction $m 324.5 265.3 22% Maintenance and Industrial Services $m 190.2 160.3 19% Electrical and Instrumentation Services $m 48.9 40.3 21% Skystar $m 4.9 10.2 47%* Internal sales eliminations $m -5.8 -15.9 TOTAL $m 562
Slide 17: Our Work Locations
Our Work Locations For personal use only 17 www.monadelphous.com.au
Slide 18: For personal use only
For personal use only 18 www.monadelphous.com.au
Slide 19: EC Overview
EC Overview For personal use only sales revenue $m 657.5 576.0 289.3 324.5 239.8 HY09 Sales Contribution FY05 FY06 FY07 FY08 HY09 EC 57% H1 H2 • Revenue 22% on HY08 • Over $250m new contacts secured across HY09 • Significant wins across all market sectors (including resources, energy & infrastructur
Slide 20: EC Division Highlights
EC Division Highlights For personal use only Major Contracts done • Coal terminal facility expansion; BBI, Dalrymple Bay Coal Terminal (QLD) • Iron ore port facility upgrade; Rio Tinto, Cape Lambert 80MTPA Project (WA) • Gold facility expansion; OZ Minerals, Prominent Hill Gold Mine (SA) Major Contr
Slide 21: For personal use only
For personal use only 21 www.monadelphous.com.au
Slide 22: M&IS Overview
M&IS Overview For personal use only sales revenue $m 316.7 262.5 207.5 190.2 136.9 HY09 Sales Contribution M&IS 33% FY05 FY06 FY07 FY08 HY09 H1 H2 • Revenue 19% from HY08 • Over $150m new contacts & re-competes secured across HY09 • Growth driven by increased service volumes & new contracts 22 www.m
Slide 23: M&IS Division Highlights
M&IS Division Highlights For personal use only • Awarded long-term shutdown alliance contract with Incitec Pivot across a number of their Queensland operations • New specialist services contract for the erection of three new coal reclaimers for Sandvik at Newcastle (NSW) • Contract extensions at Con
Slide 24: For personal use only
For personal use only 24 www.monadelphous.com.au
Slide 25: MIE Overview
MIE Overview For personal use only sales revenue $m 76.0 71.8 48.9 26.0 HY09 Sales Contribution MIE 9% 6.6 FY05 FY06 FY07 FY08 HY09 H1 H2 • Revenue 21% from HY08 • Demonstrating a national multi-disciplinary capability • Key HY09 multi-disciplinary (EC/MIE) project wins including those for Worsley A
Slide 26: For personal use only
For personal use only 26 www.monadelphous.com.au
Slide 27: Skystar Overview
Skystar Overview For personal use only sales revenue $m 19.2 14.8 14.7 HY09 Sales Contribution 7.3 Skystar 4.9 1% FY05 FY06 FY07 FY08 HY09 H1 H2 • Underlying Revenue 47% on HY08 (excl. recently divested operations) • Focussed on Australian carriers • Continues to grow organically & operate profitabl
Slide 28: For personal use only
For personal use only 28 www.monadelphous.com.au
Slide 29: Outlook
Outlook For personal use only • Entered remainder of FY09 in a strong position • Current business activity and forward workload levels remain healthy • Continue to anticipate double digit growth in FY09 normalised NPAT • Mineral sector slowing though continuing to see customer confidence in long ter
Slide 30: Supplementary disclosures
2009 Interim Results Presentation For personal use only 17th February 2009 Supplementary disclosures 30 www.monadelphous.com.au
Slide 31: Appendix 1: Profit & Loss
Appendix 1: Profit & Loss For personal use only HY09 Chg HY08 HY07 HY06 HY05 5 YEAR SUMMARY $m on pcp $m $m $m $m Sales revenue 562.7 22% 460.2 499.4 243.5 199.5 Other revenue 0.9 12% 0.8 0.8 1.3 1.0 Total revenue 563.6 22% 461.0 500.2 244.8 200.5 Operating expenses (506.1) 24% (409.6) (451.5) (224.
Slide 32: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet For personal use only HY09 Chg HY08 HY07 HY06 HY05 5 YEAR SUMMARY $m on pcp $m $m $m $m Cash and equivalents 152.9 117% 70.6 73.3 47.5 25.6 Receivables 110.8 (22%) 142.4 94.4 60.9 45.4 Inventories 9.8 (14%) 11.3 9.9 9.4 5.6 Property, plant and equipment 65.8 3% 63.9 52.4 39
Slide 33: Appendix 3: Cash Flow
Appendix 3: Cash Flow For personal use only HY09 Chg HY08 HY07 HY06 HY05 5 YEAR SUMMARY $m on pcp $m $m $m $m Receipts from customers 644.9 34% 482.6 509.3 248.5 198.9 Payments to suppliers/employees (554.5) 23% (450.4) (458.5) (206.8) (180.7) Income Tax Paid (18.1) (2%) (18.6) (13.3) (5.2) (2.9) Ne
Slide 34: Appendix 4: Key EC Contracts
Appendix 4: Key EC Contracts For personal use only Customer Project Name State Location Commodity Description Babcock and Brown Dalrymple Bay Coal Terminal - R8 and S8 QLD Mackay Coal Structural, mechanical and electrical work for new stockpile Infrastructure (BBI) Conveyors conveyors (with MIE) BHP
Slide 35: Appendix 5: Key M&IS Contracts
Appendix 5: Key M&IS Contracts For personal use only Customer Project Name State Location Commodity Description Alcoa Operations Labour Hire Services WA Kwinana, Alumina Supply of tradespeople, operators and labourers Pinjarra, Wagerup Anglo Coal Coal Handling Preparation Plant QLD Moura Coal Supply
Slide 36: Appendix 5: Key M&IS Contracts Cont'd
Appendix 5: Key M&IS Contracts Cont’d For personal use only Customer Project Name State Location Commodity Description Oil Search Limited Field Facilities Construction Services PNG Papua New Oil & gas Maintenance, capital works and shutdown services Guinea Queensland Alumina Maintenance and Minor Ca
Slide 37: Appendix 6: Key MIE Contracts
Appendix 6: Key MIE Contracts For personal use only Customer Project Name State Location Commodity Description Babcock and Brown Dalrymple Bay Coal Terminal - R8 and QLD Mackay Coal Structural, mechanical and electrical work for new Infrastructure BBI (DBCT) S8 Conveyors stockpile conveyors (with EC
Slide 38: Appendix 7: Our Strategy
Appendix 7: Our Strategy For personal use only • Earnings quality • Blue chip customers Core Business • Long term relationships • Larger & longer contracts • Growing recurring revenue base (M&IS) • Market expansion (energy and infrastructure) Diversification • Service expansion • Geographic expansio
Slide 39: Appendix 8: Opportunity Heat Map
Appendix 8: Opportunity Heat Map For personal use only 39 www.monadelphous.com.au
Slide 40: 2009 Interim Results Presentation
2009 Interim Results Presentation For personal use only 17th February 2009 For more information visit www.monadelphous.com.au Or contact David Loch – Investor Relations Manager Ph: (61 8) 9315 7429 Fax: (61 8) 9316 6272 Email: dloch@monadel.com.au www.monadelphous.com.au