Monadelphous Group Limited · ASX:MND
Monadelphous — H1 2010 Earnings Presentation
39 slides from Monadelphous's earnings presentation, Feb 16, 2010
Slide 1: ASX cover letter: 2010 Interim Results Presentation
16 February 2010 For personal use only Company Announcements Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 AUSTRALIA Dear Sir/Madam RE: Monadelphous 2010 Interim Results Presentation Please find attached a copy of the 2010 Interim Results Presentation to be issued
Slide 2: 2010 Interim Results Presentation
For personal use only 2010 Interim Results Presentation 16 February 2010
Slide 3: Agenda
Agenda For personal use only Business Highlights Rob Velletri Financial Highlights Zoran Bebic Divisional Update Rob Velletri Strategy & Outlook 2 2010 Interim Results Presentation – 16 February 2010
Slide 4: Business Highlights
For personal use only Business Highlights 3 2010 Interim Results Presentation – 16 February 2010
Slide 5: Group Highlights
Group Highlights For personal use only • NPAT up 10% to $40.5m, EPS up 8% to 47.3c & DPS up 17% to 35c • Sales revenue up 10% to $619.5m • EBITDA up 12% to $64.2m, margins steady (10.4%) • Healthy cash conversion – $56.6m operating cash flow • Strong organic growth driven by EC business activity (up
Slide 6: Divisional Highlights
Divisional Highlights For personal use only • Record sales $438.3 million up 17.4% • Awarded $250 million in new construction contracts • Continued infrastructure (water) strategic progress • Increasing multi-disciplinary (mech & elec) contracts • Retention of all key customers, contracts & sites •
Slide 7: Key Contract Wins
Key Contract Wins For personal use only 6 2010 Interim Results Presentation – 16 February 2010
Slide 8: Continued Market Diversification
Continued Market Diversification For personal use only 7 2010 Interim Results Presentation – 16 February 2010
Slide 9: Continued Service Diversification
Continued Service Diversification For personal use only 8 2010 Interim Results Presentation – 16 February 2010
Slide 10: People Performance
People Performance For personal use only Highlights: • Employee numbers in line with work volumes • Labour market conditions tightening • Further development of people systems, processes and architecture • Re-focussing on recruitment & retention strategies 9 2010 Interim Results Presentation – 16 Fe
Slide 11: Safety Scorecard
Safety Scorecard For personal use only Highlights: • Strong safety performance – TCIFR improved 24% • Continued investment in HSE systems, processes and leadership training • HSE initiatives kicked off following DuPont Review 10 2010 Interim Results Presentation – 16 February 2010
Slide 12: Financial Highlights
For personal use only Financial Highlights 11 2010 Interim Results Presentation – 16 February 2010
Slide 13: Financial Highlights
Financial Highlights For personal use only Dec-09 Dec-08 % Change Sales Revenue $m 619.5 562.7 10% EBITDA $m 64.2 57.5 12% Operating Cash Flow $m 56.6 74.5 -24% NPAT $m 40.5 36.8 10% EPS Cps 47.3 43.7 8% DPS Cps ff 35.0 30.0 17% Return on Equity (average) % 63.4 71.1 -11% Capital Expenditure (Cash +
Slide 14: Historical Performance
Historical Performance For personal use only 13 2010 Interim Results Presentation – 16 February 2010
Slide 15: NPAT Contribution Analysis
NPAT Contribution Analysis For personal use only 14 2010 Interim Results Presentation – 16 February 2010
Slide 16: Cash Flow Contribution Analysis
Cash Flow Contribution Analysis For personal use only 15 2010 Interim Results Presentation – 16 February 2010
Slide 17: Cash Flow Performance
Cash Flow Performance For personal use only 16 2010 Interim Results Presentation – 16 February 2010
Slide 18: Sources & Uses of Cash
Sources & Uses of Cash For personal use only 17 2010 Interim Results Presentation – 16 February 2010
Slide 19: Divisional Update
For personal use only Divisional Update 18 2010 Interim Results Presentation – 16 February 2010
Slide 20: Divisional Summary
Divisional Summary For personal use only Dec-09 Dec-08 % Change Engineering Construction $m 438.3 373.4 17% Maintenance and Industrial Services $m 176.9 190.2 -7% Skystar $m 6.5 4.9 33% Internal sales eliminations $m -2.2 -5.8 TOTAL $m 619.5 562.7 10% 19 2010 Interim Results Presentation – 16 Februa
Slide 21: Engineering Construction
Engineering Construction For personal use only Highlights: • Continued infrastructure (water) strategic progress • Increasing multi-disciplinary contracts • Awarded $250 million in new construction contracts Major Contracts Done*/Underway: Major Contracts Won: • BHPB, RGP6 – Nelson Point Pre-works,
Slide 22: Maintenance & Industrial Services
Maintenance & Industrial Services For personal use only Highlights: • Retention of all key customers, contracts & sites • Awarded $200 million in new contracts & re-competes • Sales activity trending up Major Contract Highlights: Major Contracts Won: • Rio Tinto, Yarwun Refinery, QLD (extension) • R
Slide 23: Strong Services Relationships
Strong Services Relationships For personal use only 22 2010 Interim Results Presentation – 16 February 2010
Slide 24: Strategy & Outlook
For personal use only Strategy & Outlook 23 2010 Interim Results Presentation – 16 February 2010
Slide 25: Market Conditions
Market Conditions For personal use only Resources Energy (Australian Mining Capex – A$bn) (Australasian LNG/CSG Production – mtpa) $ 45bn 80% 70 65 $ 40bn 70% 60 Traditional $ 35bn 60% 55 50 resources $ 30bn 50% 45 40 markets $ 25bn 40% 35 $ 20bn 30% stabilising, 30 $ 15bn 20% 25 visibility $ 10bn 1
Slide 26: Our Strategy & 2010 Progress
Our Strategy & 2010 Progress For personal use only 2010 Progress Markets & Growth • Maintained strong position in core markets • Continued market expansion • To maximise growth & returns from our core markets of – energy & infrastructure resources & energy • Solid growth in multi-disciplinary servic
Slide 27: Outlook
Outlook For personal use only • Entered remainder of FY10 in a strong position • Current business activity and forward workload levels are healthy • Anticipate similar sales and earnings in 2H FY10 • Industry capacity issues started to re-emerge – re-focus on capacity expansion, people retention and
Slide 28: 2010 Interim Results Presentation
For personal use only 2010 Interim Results Presentation 16 February 2010
Slide 29: Supplementary disclosures
For personal use only Supplementary disclosures 28 2010 Interim Results Presentation – 16 February 2010
Slide 30: Appendix 1: Profit & Loss
Appendix 1: Profit & Loss For personal use only HY10 Chg HY09 HY08 HY07 HY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Sales revenue 619.5 10% 562.7 460.2 499.4 243.5 Other revenue 0.5 (44%) 0.9 0.8 0.8 1.3 Total revenue 620.0 10% 563.6 461.0 500.2 244.8 Operating expenses (555.8) 10% (506.1) (409.6) (45
Slide 31: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet For personal use only HY10 Chg HY09 HY08 HY07 HY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Cash and equivalents 158.6 4% 152.9 70.6 73.3 47.5 Receivables 112.5 2% 110.8 142.4 94.4 60.9 Inventories 21.7 121% 9.8 11.3 9.9 9.4 Available-for-sale financial assets 16.9 n/a 0.0 0.0
Slide 32: Appendix 3: Cash Flow
Appendix 3: Cash Flow For personal use only HY10 Chg HY09 HY08 HY07 HY06 5 YEAR SUMMARY $m on pcp $m $m $m $m Receipts from customers 723.8 12% 644.9 482.6 509.3 248.5 Payments to suppliers/employees (651.4) 17% (554.5) (450.4) (458.5) (206.8) Income Tax Paid (17.2) (5%) (18.1) (18.6) (13.3) (5.2) N
Slide 33: Appendix 4: Key EC Contracts
Appendix 4: Key EC Contracts For personal use only Customer Project Name State Location Commodity Description BHP Billiton Rapid Growth Project 4 WA Newman Iron Ore Structural, mechanical and piping works associated – Newman Hub with the new stockpiling and processing facility BHP Billiton Rapid Gro
Slide 34: Appendix 4: Key EC Contracts Cont'd
Appendix 4: Key EC Contracts Cont’d For personal use only Customer Project Name State Location Commodity Description Ports Corporation of Abbot Point Coal Terminal QLD Bowen Coal Structural, mechanical and electrical works for the extension Queensland X50 Expansion of existing inloading and outloadi
Slide 35: Appendix 5: Key M&IS Contracts
Appendix 5: Key M&IS Contracts For personal use only Customer Project Name State Location Commodity Description Anglo Coal Coal Handling Preparation QLD Moura Coal Multi disciplined maintenance, sustaining capital works Plant Maintenance and shutdown services BHP Billiton Nickel West Operations WA K
Slide 36: Appendix 5: Key M&IS Contracts Cont'd
Appendix 5: Key M&IS Contracts Cont’d For personal use only Customer Project Name State Location Commodity Description Incitec Pivot Shutdown Alliance Contract QLD Gibson Island Chemical Planning, management and execution of shutdowns Mount Isa Phosphate Hill Oil Search Limited Field Facilities Cons
Slide 37: Appendix 5: Key M&IS Contracts Cont'd
Appendix 5: Key M&IS Contracts Cont’d For personal use only Customer Project Name State Location Commodity Description Rio Tinto Tom Price Operations WA Tom Price Iron Ore Structural repair work – Structural Integrity Project Rio Tinto Alcan Operations Services QLD Gladstone Alumina Maintenance, cap
Slide 38: For more information visit
For personal use only For more information visit www.monadelphous.com.au Or contact David Loch – Investor Relations Manager Ph: (61 8) 9315 7429 Fax: (61 8) 9316 6272 Email: dloch@monadel.com.au 2010 Interim Results Presentation – 16 February 2010
Slide 39: 2010 Interim Results Presentation
For personal use only 2010 Interim Results Presentation 16 February 2010