Slide 1: 2014 Half Year Results
2014 Half Year Results For personal use only 18 February 2014 TOGETHER WE DELIVER.
Slide 2: Company Profile
Company Profile For personal use only Monadelphous Group Limited (ASX:MND) is a S&P/ASX 100 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australasia. Market Earnings Dividends People Revenue capitalisation per
Slide 3: Group Highlights
Group Highlights For personal use only Sales revenue down 1% to $1,277m Record NPAT of $87.1m up 10.1%, underlying NPAT^ up 0.1% to $79.2m Financial Underlying EPS^ down 2.6% to 86.3c, DPS down 3.2% to 60c Strong cashflow from operations of $78.1m, conversion rate of 92% Revenue levels mai
Slide 4: Contract Activity
Contract Activity For personal use only Geographic representation Darwin Beijing Papua New Guinea Dampier Port Hedland Barrow Island Cape Lambert Karratha Bungaroo Valley ;VT7YPJL 4HJRH` Moranbah Bowen Basin Onslow Paraburdoo Newman Marandoo Emerald Gladstone Maleny *OPUJOPSSH Mount Keith Leinster B
Slide 5: Sales Revenue Analysis
Sales Revenue Analysis For personal use only End Customer Service Market 2.6% 1.0% 0.6% 0.5% 2.0% 4.6% 6.8 % 8. 4% 18.9% 37.8% Geography SA 1.1% NT 1.2% 12.7% 43.7% NSW 1.0% Overseas 1.5% 36.1% 24.3% QLD 20.3% Iron Ore Process Plant SMP* Oil & Gas Process Plant SMP* & E&I** Coal Pipelines WA 74.9% O
Slide 6: Contracts Secured
Contracts Secured For personal use only $700m of new contracts and contract extensions year-to-date ConocoPhillips 35.4HPU[LUHUJL#+HY^PU Oil Search Limited -PLSK*VUZ[Y\J[PVU:LY]PJLZ# Papua New Guinea Rio Tinto Chevron 7VY[)*HWL3HTILY[ -HJPSP[PLZ4HUHNLTLU[:LY]PJLZ#, )HYYV^0ZSHUK DBP Development Group
Slide 7: Safety Scorecard
Safety Scorecard For personal use only Injury Frequency Rates 12 12 * 12-month roling average (per million man-hours worked) TCIFR LTIFR 99 66 33 3.41 00 0.10 2009 2010 2011 2012 2013 12-month rolling average (per million man-hours worked) Record safety performance TCIFR improved 38% to 3.41 inc
Slide 8: People
People For personal use only Employee Numbers Employees by Division 213 8,000 7,606 7,067 7,000 5,971 5,812 6,000 5,382 5,656 5,000 4,000 2,759 2,684 3,000 2,000 1,000 0 FY11 HY12 FY12 HY13 FY13 HY14 Rebased to exclude Skystar employees Employee numbers reduced in line with slowing Engineering Con
Slide 9: Productivity
Productivity For personal use only Company-wide cost reduction program Focus areas Major initiatives implemented Progress Projects Consolidation of support and service structures Cost savings of People Review of project delivery methodologies ~$34m p.a. Consolidation and renegotiation of major
Slide 10: Financial Performance
Financial Performance For personal use only Group highlights Unit HY14 HY13 Change Sales Revenue $m 1,277 1,289 -1.0% EBITDA^ $m 121.4 125.3 -3.1% EBITDA Margin^ % 9.5 9.7 -0.2pp* NPAT^ $m 79.2 79.1 +0.1% NPAT Margin^ % 6.2 6.1 +0.1pp* EPS^ cps 86.3 88.6 -2.6% Operating Cash Flow $m 78.1 43.4 +80.2%
Slide 11: Financial Position and Funding
Financial Position and Funding For personal use only Balance sheet remains strong Dec 13 Dec 12 Change $m $m Cash at Bank 234.6 189.3 +23.9% Net Cash Position 188.1 126.3 +48.9% (Cash less interest bearing loans and borrowings) Capital Expenditure 2.8 36.3 -92.2% (Cash and Hire Purchase) Capital Exp
Slide 12: Historical Performance
Historical Performance For personal use only 2,614.1 2,614.1 156.3 247.0 1,897.5 196.5 126.0 1,897.5 196.5 1,443.9 1,443.9 153.3 153.3 95.1 1,275.4 1,275.4 1,276.7 1,276.7 129.4 129.4 121.4 74.2 83.2 79.2 1,122.5 116.1 121.4 FY10 FY11 FY12 FY13 HY14 FY10 FY11 FY12 FY13 HY14 FY10 FY11 FY12 FY13 HY14
Slide 13: Cash Flow Performance
Cash Flow Performance For personal use only Operating Cash Flow Cash Flow Conversion 138.6 125.2 103% 113.2 92% 92% 96.0 78.1 68% 58% FY10 FY11 FY12 FY13 HY14 HY12 FY12 HY13 FY13 HY14 Operating cash flow before interest & tax Cash flow conversion = EBITDA^ Strong cash flow from operations and cash
Slide 14: NPAT Contribution Analysis
NPAT Contribution Analysis For personal use only NPAT Contribution ($m) 7.9 87.1 79.1 (0.8) 2.2 79.2 (1.7) (0.4) 0.8 Underlying^ HY13 NPAT Sales Margin Interest (Net) D&A Tax Rate Profit on disposal HY14 NPAT of Skystar ^Underlying basis. Refer to slide 20 for reconciliation. 14
Slide 15: Sales Revenue Summary
Sales Revenue Summary For personal use only Divisional Highlights Revenue by Division 0.6% Unit HY14 HY13 Change Engineering Construction* $m 960.4 952.4 +0.8% 24.7% Maintenance & Industrial $m 317.1 339.8 -6.7% Services* 74.7% Skystar $m 7.8 11.2 -30.4% Internal Eliminations $m -8.6 -14.1 Total $m
Slide 16: Engineering Construction
Engineering Construction For personal use only Highlights End Customer Sales ($m) 2.6% Revenue grew 0.8% to 952.4 960.4 $960.4m Oil & Gas High levels of 23.5% 28.9% 532.0 562.5 Iron Ore 421.7 construction activity Coal Strengthened position Infrastructure 45.0% in new service markets. HY10 HY1
Slide 17: Maintenance and Industrial Services
Maintenance and Industrial Services For personal use only Highlights End Customer Sales ($m) $250m of new 317.1 339.8 317.1 contracts and extensions 18.8% Oil & Gas Growth in oil and gas 5.6% Iron Ore 176.9 188.1 maintenance activity 58.9% Coal 16.7% Other Minerals Scope expansion with Woodsid
Slide 18: Market Conditions
Market Conditions For personal use only Construction (Capex A$b) Construction 140 Softer outlook despite capex remaining at historically high levels 120 Large LNG projects will provide prospects in short to medium term 100 80 60 Maintenance 40 20 Maintenance activity to increase on new assets
Slide 19: Outlook
Outlook For personal use only Market conditions continue to tighten as customers pull back on capital expenditure and focus on maximising returns from existing assets Committed developments in oil and gas and iron ore will continue to provide opportunities in the short to medium term Bidding a
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only ^ Reconciliation H1 2014 H1 2013 Information, including forecast financial information, in this presentation, should $’000 $’000 not be considered as a recommendation in relation to holding, purchasing or selling Underlying EBITDA shares, securiti
Slide 21: Important Notice
Important Notice For personal use only Disclaimer Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited or any other
Slide 22: For more information
For more information: For personal use only Rachel Cooper, Investor Relations Manager Telephone: +61 (08) 9315 7429 Email: rcooper@monadel.com.au www.monadelphous.com.au TOGETHER WE DELIVER.