Monadelphous Group Limited · ASX:MND
Monadelphous — FY2006 Earnings Presentation
18 slides from Monadelphous's earnings presentation, Aug 22, 2006
Slide 1: 2006 annual results
Monadelphous 2006 annual results another outstanding year of growth
Slide 2: Highlights
a Monadelphous | highlights m= Record Results » Sales over $500m m Net Profit After Tax (NPAT) #76% « Earnings Per Share (EPS) 472% « Dividends #4.71% = Over $500m new contracts won since December 2005 = Capacity increased; workforce over 3,000 #\ >50% = Health and Safety performance improved; TCIFR
Slide 3: Financial highlights
ni Monadeiphous financial highlights Jun 06 Jun 05 % Change Sales Revenue $532.0m $390.6m 436% EBITDA $49.0m $29.0m +68% Net Profit After Tax $29.4m $16.7m +76% Earnings Per Share 36.5¢ 2t.ic +72% Total Dividends 33.00 cps ff 19.25 cps ff +71% Operating Cash Flow $66.8m $24.0m 4.179% Net Cash $61.6m
Slide 4: Sales revenue and profit after tax
fi Monadelphous sales revenue $m profit after tax $m 532.0 29.4 CAGR 32.6% CAGR 54.0% 2001 = 2002 = 2008 = 2004 = 2005 = 2006 2001 2002-2003 = 2004 = 2005 = 2006
Slide 5: High earnings & dividend growth
; =: i a Monadelphous: | high earnings & dividend growth Fi Special Dividend 2 Dividend Per Share (Interim + Final @ Earnings Per Share EPS CAGR 50% 2001 2002 2003 2004 2005 2006
Slide 6: Record operating cash flow
a Monadelphous | record operating cash flow EBITDA $m cashflow from operations $m 66.8 49.0 2001 = 2002-2003 2004 = 2005 = 2006 2001 = 2002, 2003 = 2004 = 2005 = 2006
Slide 7: Buoyant market, strong margins
| Monadelphous | buoyant market, strong margins EBITDA margin % profit after tax margin % 9.2% 5.5% 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 mw EBITDA margin # 1.8pp to 9.2% m PAT margin #8 1.2pp to 5.5%
Slide 8: Exceptional return on equity
a Monadelphous | exceptional return on equity : 47.3% 36.1% 21.7% 17.2% 13.2% 2001 2002 2003 2004 2005 2006 m ROE at 47.3% historically highest level m Five year average return 35.2%pa
Slide 9: 5 year share price history
$8.00 5 $7.00 4 $6.00 5 $5.00 4 $4.00 4 $3.00 54 $2.00 4 $1.00 4 Bere 5 year share price history dure Ol Dec-O1 Jurd2 Dec-02 Jurr0d = Total shareholders returns: 1 year 88% 5 years 1226% (68.0%p.a) DeolG dure 04 Deo 64 JurrOS Deo -05 Jun-G6
Slide 10: Total case injury frequency rate (TCIFR)
i Monadelphous f total case injury frequency rate (TCIFR) 0 2001 2002 2003 2004 2005 2006 = TCIFR © 23% from previous year m= Successful implementation of injury reduction initiatives
Slide 11: Employee numbers
a Monadelphous | employee numbers 3142 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 m Right people recruitment and retention strategy a key focus = Overseas recruitment for professional staff ongoing = Expanded graduate program = Professional development and skill training programs
Slide 12: Maintenance & industrial services division
t Monadelphous | maintenance & industrial services division. sales revenue $m 242.7 150.8 114.4 2004 2005 2006 m Revenue 4. 61% from previous year « Full year revenues from previous financial year contract wins « Rapidly growing Queensland market = New major contract wins « Strong performances acros
Slide 13: MalS division highlights
a M onadelphous d MalS division highlights 100% of major service contracts retained Award & establishment of new service contracts : = Comalco’s Boyne Smelter, Gladstone, QLD = Incitec Pivot shutdown, Gibson Island, QLD « Rio Tinto Iron Ore's Tom Price mine, WA « Rio Tinto’s Cape Lambert operations,
Slide 14: Engineering construction division sales revenue
a Monadelphous sales revenue $m 289.3 239.8 109.6 2004 2005 2006 m Revenue ¢s 21% from previous year = $500m new contracts secured since December 2005 = Recorded over two million manhours lost time injury free during the year
Slide 15: EC division highlights
a Monadelphous EC division highlights - m Successful progress of major contracts: = lron ore stockyards expansion; Rio Tinto lron Ore Dampier Port Upgrade project, WA = Sulphuric acid plant construction; BHP Billiton's Ravensthorpe Nickel Project, WA = Stockpile capacity extension; BHP Billiton Mits
Slide 16: $500m of new major contracts secured
$500m of new major contracts secured: « Largest ever contract won ($180m) with BHP Billiton iron Ore for Rapid Growth Project 3 (RGP3),port expansion at Nelson Point and Finucane Island, WA « BHP Billiton's Yabulu Nickel Refinery Extension Project, QLD « Rio Tinto Iron Ore Dampier Port Upgrade Phase
Slide 17: Our strategy
a Monadelphous | our strategy m Maximise core business — concentrate on earnings quality = Blue chip customers & long term relationships = Larger and longer contracts m Growing recurring revenues m Leverage capability further into oil and gas, power and water sectors = Grow electrical and instrument
Slide 18: Outlook
a Monadelphous | m Strong and high quality workload expected to deliver further revenue and earnings growth in 2006/07 m Core market conditions expected to be strong for two to three years m Growth dependent on project timing and industry capacity constraints m™ Focus on earnings quality given conti