Mastermyne Group Limited · ASX:MYE
Mastermyne — H1 FY2015 Earnings Presentation
25 slides from Mastermyne's earnings presentation, Feb 26, 2015
Slide 1: FY2015 Half Year Results Presentation
FY2015 Half Year Results For personal use only Presentation 26 February 2015 Tony Caruso – CEO & Managing Director Chris Kneipp – Chief Financial Officer Slide 1
Slide 2: Key Messages
Key Messages For personal use only Maintaining a dominant market position which places us well as the sector recovers Completed DMS acquisition Key Strategic acquisition Further diversification of the business Integration is going very well Strong balance sheet after a substantial investment Market
Slide 3: Half Year result in line with market guidance amid tough market conditions
Half Year result in line with market guidance amid tough market conditions For personal use only Revenue of $77.7 million (guidance range of $75- $80 million) Underlying EBITDA of $3.8 million Underlying NPAT of $0.013 million (guidance of break even) Statutory NPAT loss of $5.8 million after impair
Slide 4: Productivity with a safety always focus
Productivity with a safety always focus For personal use only Man TRIFR LTIFR Group TRIFR 3.54 (based on Hours 3.54 0.66 internal reporting standard on 716,619 Projects) Project Hours worked and TRIFR HSEQ leading safety targets 2500000 7.00 100% compliant on all major 5.85 5.56 5.22 6.00 2000000 pr
Slide 5: Margin pressure in some areas as customers pursue cost reductions
Margin pressure in some areas as customers pursue cost reductions For personal use only Revenue in line with previous corresponding period Underlying Net profit reduced from lower EBITDA margins Underlying EBITDA margin reduced from 6.9% in previous corresponding period to 4.9%, primarily resulting
Slide 6: The underground division continues to maintain a very dominant market position
The underground division continues to maintain a very dominant market position For personal use only Revenue increased on PCP from short term contracts Margins impacted from; Reduced equipment utilisation Contraction due to current market climate Continued third party hire equipment obligations ($0.
Slide 7: Our other divisions continue to round out the services we provide
Our other divisions continue to round out the services we provide to our customers For personal use only ENGINEERING Workshop throughput was down Margins impacted by reduced revenue and pricing competition Consumables revenue has increased DMS acquisition will provide product diversification and inc
Slide 8: Strong Balance Sheet maintained after substantial investment
Strong Balance Sheet maintained after substantial investment For personal use only HY2015 Cash Flow Balance Sheet 30 Net Debt $4.8 million 25 post the DMS MILLIONS (AUD) 20 acquisition 15 Loans and borrowings 10 increased to fund the 5 DMS acquisition 0 Slide 8
Slide 9: Acquiring DMS will mean a more diversified business
Acquiring DMS will mean a more diversified business creating more growth opportunities For personal use only • DMS acquired effective 1 January. No results reported H1 FY15. • Delivered $3.5 million in annualised overhead synergies with further potential synergies • Integration has progressed ahead
Slide 10: New structure and rebranding to unlock the full value of the DMS acquisition
New structure and rebranding to unlock the full value of the DMS acquisition For personal use only Slide 10
Slide 11: Diversified business creates significant new market and customer opportunities
Diversified business creates significant new market and customer opportunities For personal use only Dalrymple Bay Coal Terminal Saraji Mine Peak Downs Mine Hail Creek Mine DMS Sites Dalrymple Bay Coal Terminal Blackwater Mine Gregory / Crinum Mine MYE Sites Caval Ridge Mine Riverside Mine South Wal
Slide 12: We are continuing to remain competitive on our labour costs
We are continuing to remain competitive on our labour costs For personal use only Employee Numbers (FTE) 1088 253 823 754 733 669 490 518 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 HY2015 Mastermyne Group DMS Workforce after the DMS acquisition is 922 Remuneration across the sector is continuing to r
Slide 13: The second half will see continuing tough conditions with similar results to H1
The second half will see continuing tough conditions with similar results to H1 For personal use only • Operator costs have reduced and coal prices expected to remain stable • Major projects continue to be deferred • Increased activity on the Grosvenor project • Secured approx. $18 million in short
Slide 14: Key Messages
Key Messages For personal use only Maintaining a dominant market position which places us well as the sector recovers Completed DMS acquisition Key Strategic acquisition Further diversification of the business Integration is going very well Strong balance sheet after a substantial investment Market
Slide 15: Appendices
For personal use only Slide 15 Appendices
Slide 16: Corporate Overview
Corporate Overview For personal use only Capital Structure 12 Month Trading History Share price as at 24 February ($) 0.32 $0.80 10,000 Shares on issue (m) 91.1 $0.70 9,000 8,000 Market cap ($m) 29.1 $0.60 7,000 $0.50 6,000 Net Debt as at 30 June 2014 ($m) 4.8 $0.40 5,000 Enterprise value ($m) 33.9
Slide 17: HY 2015 Results Financial Summary
HY 2015 Results Financial Summary For personal use only Summary Income Statement ($’000) HY2015 HY2014 Change(%) 77,739 77,270 0.6% Total Revenue 2,039 5,351 (61.9%) Statutory EBITDA (1,366) 1,954 (169.9%) Statutory EBITA (4,538) - Goodwill impairment (6,197) 1,207 (613.4%) Statutory Profit/(loss) b
Slide 18: HY 2015 Results Divisional Performance
HY 2015 Results Divisional Performance For personal use only Underground Engineering Services ($’000) Dec- Dec-14 Dec- Dec-13 Dec- Dec-14 Dec- Dec-13 Dec- Dec-14 Dec- Dec-13 69,095 66,324 8,644 9,764 - 1,182 External Revenue Inter Segment Revenue* * 3,104 680 638 563 - 62 72,199 67,004 9,282 10,327
Slide 19: HY2015 Results Working Capital & Cash Flow
HY2015 Results Working Capital & Cash Flow For personal use only $AUD (000's) Dec- Dec-14 Dec- Dec-13 EBITDA (Statutory) 2,039 5,351 Movements in Working Capital 8,319 6,503 Non cash items 8 6 Net Interest Costs (413) (685) Income tax payments (499) (1,401) Net Operating Cash Flow 9,454 9,774 Procee
Slide 20: HY2015 Results Balance Sheet
HY2015 Results Working Capital & Cash Flow For personal use only $AUD (000's) Dec-14 Jun-14 Assets Cash and cash equivalents 14,975 8,810 Trade and other receivables 28,074 37,917 Inventories 3,447 2,742 Current Tax Assets 839 Total current assets 47,335 49,469 Property, plant and equipment 32,631 2
Slide 21: Orderbook
Orderbook For personal use only Anglo Moranbah Region Umbrella Contract Anglo Moranbah Region Drivage Contract Westcliff Colliery Appin Area 9 Dendrobium Mine Services Crinum Mine Broadmeadow Conveyor Installation DBCT Scaffolding Services Kestrel Strata Support Carborough Downs Framework Agreement
Slide 22: DMS Revenue Streams: Industrial and Maintenance
DMS Revenue Streams Industrial and Maintenance For personal use only • Access Solutions (Scaffolding & Rigging) • Protective Coatings • Pipeline Services • Structural, Mechanical Electrical & Line Boring Revenue profile generated from: Long term maintenance contracts with base load of recurring work
Slide 23: DMS Revenue Streams: Fabrication and Machining
DMS Revenue Streams Fabrication and Machining For personal use only • Fabrication • Machining • Consumables Jobbing shop with work secured by quoting new customers or repeat customers. Typically 6 to 8 weeks pipeline visibility Jobs range in size from thousands of dollars up to major work packages p
Slide 24: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are advised to read this disclaimer carefully before reading or making any other us
Slide 25: Contact
www.mastermyne.com.au CONTACT Information for Investors / Analysts: For personal use only Tony Caruso – Managing Director: (07) 4963 0400 Chris Kneipp– Company Secretary: (07) 4963 0400 Colin Bloomfield – Chairman: (07) 4963 0400 Slide 25