Emeco Holdings Limited · ASX:EHL
Emeco — H1 2008 Earnings Presentation
28 slides from Emeco's earnings presentation, Feb 19, 2008
Slide 1: 2008 Interim Results Presentation
Emeco Holdings Limited 2008 Interim Results Presentation For personal use only
Slide 2: Disclaimer
05060D937_2006-07 interim results Disclaimer For personal use only This presentation may contain forward looking statements that are subject to a range of risk factors and uncertainties. Whilst these statements are considered to be based on reasonable assumptions, the statements themselves and the a
Slide 3: Agenda
05060D937_2006-07 interim results Agenda For personal use only 1. Highlights 2. Financials 3. Operating update 4. Guidance 5. Appendix—detailed geographic information Page 3
Slide 4: Highlights
05060D937_2006-07 interim results Highlights For personal use only Operating revenues increased by 14.5% on pcp to $288.2m (Australia +6.2%, International +45.6%) EBITDA decreased by 1.1% to $98.6m (Australia +9.6%, International -32.6%) EBITA decreased by 9.6% to $55.4m (Australia +4.1%, Internatio
Slide 5: Agenda
05060D937_2006-07 interim results Agenda For personal use only 1. Highlights 2. Financials 3. Operating update 4. Guidance 5. Appendix—detailed geographic information Page 5
Slide 6: Group results—last five years
05060D937_2006-07 interim results Group results—last five years For personal use only Revenue EBITDA 1 EBITA 1 600 554 250 40 % 160 25 % 207 35 % 140 129 500 200 20 % 30 % 120 383 400 143 25 % 100 89 150 15 % 292 288 300 251 20 % 80 96 99 63 190 100 55 10 % 73 15 % 60 200 61 41 34 10 % 40 50 5% 100
Slide 7: Group results
05060D937_2006-07 interim results Group results For personal use only Return on funds employed Key drivers 40% 250 Continued to build capabilities in international 35% markets over the half 30% 200 − in line with global vision − underlying profit and ROFE impacted as 25% 150 resources and equipment
Slide 8: Summary financials
05060D937_2006-07 interim results Summary financials For personal use only Pro forma 6 months to Change Key drivers A$m FY2006 FY2007 Dec-06 Dec-07 pcp (%) Strong domestic rentals and Revenue 382.6 554.4 251.6 288.2 14.5 the sales business continue to EBITDA 143.4 207.3 99.8 98.6 (1.2) drive revenue
Slide 9: Earnings (NPAT) bridge on pcp
05060D937_2006-07 interim results Earnings (NPAT) bridge on pcp For personal use only 40 1.9 34.8 35 (4.4) 3.1 30.5 1.0 A$m 30 1.6 (2.0) (3.0) (2.5) 25 20 1H07 Australia Indonesia Canada USA Europe Amortisation Interest Tax 1 1H08 Note: 1. Effective tax rate of 29% in 1H08 from 34% due to tax effect
Slide 10: Working capital
05060D937_2006-07 interim results Working capital For personal use only A$m Change Key drivers As at: Jun-06 Dec-06 Jun-07 Dec-07 h/h (%) A significant increase in sales Cash 19.2 10.8 27.7 12.7 (54.2) machines resulted from an investment Trade receivables 71.5 63.4 81.1 73.6 (9.2) in US originated
Slide 11: Working capital bridge (half on half)
05060D937_2006-07 interim results Working capital bridge (half on half) For personal use only 320 3.7 0.4 298.5 6.4 4.0 300 54.2 280 260 252.3 A$m 240 (15.0) 220 (7.5) 200 180 160 Jun-07 Cash Trade Sales Parts Tyres Other Payables Dec-07 receivables machines1 inventory Note: 1. Includes c.$30m of su
Slide 12: Operating cash flow
05060D937_2006-07 interim results Operating cash flow For personal use only A$m Statutory Pro forma Statutory Key drivers 6 months to: Dec-06 Dec–06 Dec–07 EBITDA 98.5 99.7 98.6 Operating cash flow strong Increase in working capital (40.8) (40.8) (46.2) Negatively impacted by working Provisions and
Slide 13: Balance sheet and gearing
05060D937_2006-07 interim results Balance sheet and gearing For personal use only A$m Change Key drivers As at: Dec–06 Jun-07 Dec–07 h/h (%) Gearing remains within Working capital 204.3 252.3 298.5 18.3 acceptable levels Rental plant 512.9 520.2 561.0 7.8 Current interest cover Total assets 1,031.4
Slide 14: Management of capital
05060D937_2006-07 interim results Management of capital For personal use only Management has instituted a 12 month plan to restore capital returns across the group particularly in the international businesses As part of this initiative, as mentioned previously, a review of working capital positions
Slide 15: Geographic segment results
05060D937_2006-07 interim results Geographic segment results For personal use only A$m Australia Indonesia Canada US Europe 6 months to: Dec-06 Dec-07 Change Dec-06 Dec-07 Change Dec-06 Dec-07 Change Dec-06 Dec-07 Change Dec-06 Dec-07 Change % % % % % Financial performance1 Revenue 198.5 210.9 6.2 1
Slide 16: Agenda
05060D937_2006-07 interim results Agenda For personal use only 1. Highlights 2. Financials 3. Operating update 4. Guidance 5. Appendix—detailed geographic information Page 16
Slide 17: Current market conditions
05060D937_2006-07 interim results Current market conditions For personal use only Current market conditions and outlook Continuing strong outlook for mining volumes Impact from QLD flooding presents short term challenges but medium term opportunities Australia Strong civil market emerging – particul
Slide 18: Current market conditions
05060D937_2006-07 interim results Current market conditions For personal use only Current market conditions and outlook Oil and gas markets remain depressed Canada Infrastructure markets around Edmonton and Oil Patch look encouraging Two major refineries announced for Oil Patch c.$30 billion Metalif
Slide 19: Agenda
05060D937_2006-07 interim results Agenda For personal use only 1. Highlights 2. Financials 3. Operating update and guidance 4. Guidance 5. Appendix—detailed geographic information Page 19
Slide 20: Guidance
05060D937_2006-07 interim results Guidance For personal use only Global commodity demand remains strong and a return to historic utilisation levels is expected − significant improvements in utilisation have been evidenced in the last two months − strong conditions for coal globally are expected to u
Slide 21: Agenda
05060D937_2006-07 interim results Agenda For personal use only 1. Highlights 2. Financials 3. Operating update 4. Guidance 5. Appendix—detailed geographic information Page 21
Slide 22: Australia—overview
05060D937_2006-07 interim results Australia—overview For personal use only Rental end market exposure Rental client profile Rental type of customer 120% 5% 9% 27% 100% 6% 32% 36% 80% 60% 19% 40% 19% 18% 20% 29% 0% Coal Gold Zinc Large Small Total Top 5 Top 6 – 10 Civil Iron Ore Other Top 11 – 20 Rem
Slide 23: Australia—overview
05060D937_2006-07 interim results Australia—overview For personal use only Rental machine profile Funds employed and utilisation Truck 119 100% 1,000 Dozer 118 900 80% 800 Loader 133 Funds employed (A$m) 700 Excavator 55 60% 600 Utilisation Grader 41 500 Other 102 40% 400 300 20% 200 100 0% – Jul-05
Slide 24: Indonesia—overview
05060D937_2006-07 interim results Indonesia—overview For personal use only Rental end market Rental client profile Funds employed and utilisation 1% 83% 100% 100 36% 90 43% 80% 80 Funds employed (A$m) 70 60% 60 Utilisation 50 20% Coal Gold 17% 40% 40 Civil Other Top 5 Top 6 – 10 30 20% 20 10 Rental
Slide 25: Canada—overview
05060D937_2006-07 interim results Canada—overview For personal use only Rental end market Rental client profile Funds employed and utilisation 1% 5% 12% 100% 200 15% 27% 180 36% 80% 160 Funds employed (A$m) 140 67% Utilisation 60% 120 Civil 37% 100 Top 5 Oil and Gas Top 6 – 10 40% 80 Coal Top 11 – 2
Slide 26: US—overview
05060D937_2006-07 interim results US—overview For personal use only Rental end market Rental client profile Funds employed and utilisation 94% 100% 60 80% 50 Funds employed (A$m) 40 60% Utilisation 30 100 6% % 40% Top 5 Top 6 – 10 20 Coal 20% 10 Rental machine profile 0% – Truck 13 Excavator 4 May-
Slide 27: Europe—overview
05060D937_2006-07 interim results Europe—overview For personal use only Funds employed 30 25 Funds employed (A$m) 20 15 10 5 0 Oct-06 Jul-07 Oct-07 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 Jun-07 Aug-07 Sep-07 Nov-07 Dec-07 May-07 Note: 1. Funds employed is defined as net tangible assets plus inter
Slide 28: Historical financial information
05060D937_2006-07 interim results Historical financial information For personal use only A$m Australia Indonesia Canada US Europe 12 months to: 2005 2006 2007 2005 2006 2007 2005 2006 2007 2005 2006 2007 2005 2006 2007 1 Financial performance Revenue 244.6 291.2 418.9 27.8 32.7 27.5 – 27.4 39.8 19.4