Monadelphous Group Limited · ASX:MND

Monadelphous — FY2013 Earnings Presentation

26 slides from Monadelphous's earnings presentation, Aug 20, 2013

  1. Slide 1: 2013 Full Year Results

    2013 Full Year Results For personal use only 20 August 2013

  2. Slide 2: Company Profile

    Company Profile For personal use only Monadelphous Group Limited (ASX:MND) is an S&P/ASX 100 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sector throughout Australasia. Market Earnings Dividends People Revenue capitalisation per

  3. Slide 3: Group Highlights

    Group Highlights For personal use only 12th consecutive year of earnings growth • Sales revenue up 37.8% to $2,614m Financial • NPAT up 24.1% on prior year underlying^ to $156.3m • EPS up 21.5%^ to 173c, DPS up 9.6% to 137c • Extraordinary surge in construction activity • Outstanding safety performa

  4. Slide 4: Contract Activity

    Contract Activity For personal use only Geographic representation 4 4

  5. Slide 5: Sales Revenue Analysis

    Sales Revenue Analysis For personal use only *SMP - Structural, mechanical and piping; E&I - Electrical and instrumentation; O&M - Operations and maintenance. 5

  6. Slide 6: Contracts Secured

    Contracts Secured For personal use only $1.3b of new contracts and contract extensions 6

  7. Slide 7: Safety Scorecard

    Safety Scorecard For personal use only Outstanding safety performance Record safety performance in rapid- growth environment TCIFR improved 31.6% to 4.1 incidents per million man-hours worked Launched Life Saving Rules Integrated Safety Leadership Program into operations 7

  8. Slide 8: People Performance

    People Performance For personal use only Successful recruitment campaign to meet extraordinary project demands New website and enhanced corporate and employer branding Established Employee Development Centre Reconciliation Action Plan (RAP) launched 8

  9. Slide 9: Financial Performance

    Financial Performance For personal use only Group highlights Unit FY13 FY12 Change Sales Revenue $m 2,614.1 1,897.5 +37.8% EBITDA^ $m 247.0 196.5 +25.7% EBITDA Margin^ % 9.45 10.35 -0.90pp* NPAT^ $m 156.3 126.0 +24.1% NPAT Margin^ % 5.98 6.64 -0.66pp* EPS^ cps 173.0 142.4 +21.5% Operating Cash Flow

  10. Slide 10: Financial Position and Funding

    Financial Position and Funding For personal use only Balance sheet remains robust Jun-13 Jun-12 Change $m $m Cash at Bank 195.3 203.6 -4.0% Net Cash Position 140.2 152.9 -8.3% (Cash less interest bearing loans and borrowings) Capital Expenditure 46.4 74.2 -37.5% (Cash and Hire Purchase) Capital Expe

  11. Slide 11: Historical Performance

    Historical Performance For personal use only Historical Performance Sales Revenue ($M) EBITDA^ ($M) Net Profit After Tax^ ($M) +37.8% +25.7% +24.1% Earnings Per Share^ (Cents) Dividends Per Share (Cents) Net Cash Position ($M) +21.5% +9.6% -8.3% ^ = Underlying basis. Refer to slide 23 for reconcilia

  12. Slide 12: Cash Flow Performance

    Cash Flow Performance For personal use only Cash Flow Performance Operating Cash Flow ($M) Operating cash flow impacted by working capital increase due to: • Significant surge in construction activity H2 • Concurrency of large projects approaching completion H1 • Customers lengthening duration of co

  13. Slide 13: Net Profit After Tax Analysis

    Net Profit After Tax Analysis For personal use only NPAT waterfall ($M) ^ = Underlying basis. Refer to slide 23 for reconciliation 13

  14. Slide 14: Divisional Sales Revenue Summary

    Divisional Sales Revenue Summary For personal use only Growth in all divisions FY13 FY12 Change $m $m Engineering Construction* 1,783.9 1,144.5 +55.9% Maintenance & Industrial Services 644.0 634.5 +1.5% Infrastructure 199.8 133.3 +49.9% Internal Eliminations -13.6 -14.8 Total 2,614.1 1,897.5 +37.8%

  15. Slide 15: Engineering Construction

    Engineering Construction For personal use only Highlights Sales Revenue Revenue grew 56% to $1.78 b Iron ore and coal projects dominate revenue landscape $M $700m of new contracts $M Major Project Involvement Major Project Secured • BHPB, PHIHP, Finucane Island & Nelson • BHPB Jimblebar, Newman, WA

  16. Slide 16: Maintenance and Industrial Services

    Maintenance and Industrial Services For personal use only Highlights Sales Revenue $600m in new contracts and extensions Strong growth in oil and gas maintenance activity $M Secured Woodside and QGC LNG services contracts Consolidation within division Contract Extensions New Contracts • BHPB, coasta

  17. Slide 17: Infrastructure

    Infrastructure For personal use only Highlights Sales Revenue Strong sales growth of 50% Transition of water into EC and energy services into M&IS $M 20% growth in aviation services Major Project Involvement New Contracts • Rio Tinto, Coastal Waters Project, • Unitywater, upgrade to Maleny Sewage Pi

  18. Slide 18: Strategy

    Strategy For personal use only Progress during the year Markets and Growth • Capitalised on our leadership position in To maximise growth and returns from core core markets markets of resources and energy • Strengthened our position in oil and gas To build a substantial business in • Established sup

  19. Slide 19: Australian Market Conditions

    Australian Market Conditions For personal use only Resources Significant change in outlook for the Australian resources sector in the past 12 months Construction activity forecast to peak in 2013 Forecast capex is approximately $204 b over five years Energy Increased activity in oil & gas sector exp

  20. Slide 20: Australian Market Conditions (cont'd)

    Australian Market Conditions (cont’d) For personal use only Infrastructure Construction activity forecast to remain flat Maintenance Activity expected to grow as new projects are commissioned and operations come on stream Compared to April 2012 - $561b Source: BIS Shrapnel Mining Investment by Commo

  21. Slide 21: Project Pipeline

    Project Pipeline For personal use only Regional investment for committed projects is ~$268b Expected Significant Prospects Capex Start-up Ichthys Gas Field (including Darwin LNG Plant) Underway $33b Inpex/Total Wheatstone LNG Underway $29b NT Chevron/Apache/KUFPEC/Shell $34b Upstream Queensland CSG

  22. Slide 22: Outlook

    Outlook For personal use only Consolidation after surge in growth • Market conditions in the resources sector have significantly tightened • Revenue levels for FY2014 expected to moderate after abnormal growth surge • Continued focus on cost reduction and productivity improvements to protect margins

  23. Slide 23: Non-IFRS Financial Information

    Non-IFRS Financial Information For personal use only ^ Reconciliation 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

  24. Slide 24: 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

  25. Slide 25: Analyst Questions

    For personal use only 25 Analyst Questions

  26. Slide 26: Contact Information

    Contact Information For personal use only www.monadelphous.com.au Information for Investors/Analysts: Rachel Cooper, Investor Relations Manager Telephone: +61 (08) 9315 7429 Email: racooper@monadel.com.au 26

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