Nrw Holdings Limited · ASX:NWH
Nrw — FY2010 Earnings Presentation
25 slides from Nrw's earnings presentation, Aug 30, 2010
Slide 1: Investor Presentation Full Year Results FY2010
Investor For personal use only Presentation Full Year Results FY2010 Jules Pemberton Chief Executive Officer Mark Wallace Chief Financial Officer Kim Hyman Company Secretary
Slide 2: Year in Review - Highlights
Year in Review - Highlights For personal use only Financial and Operational Highlights Revenue of $609.7m 20% increase on FY09 EBIT* of $62.3m 6% increase on FY09 Net Profit After Tax* $37.9m 2% increase on FY09 Net debt / Equity 23% From 27% in FY09 Total dividends 6 cents fully franked
Slide 3: Safety Performance
Safety For personal use only Performance 3500000 40 At June 2010 NRW employs a 3000000 35 workforce of 1614 personnel comprising direct staff and sub 30 2500000 contractors. 25 2000000 Safety performance is an important 20 fundamental factor in retaining key 1500000 clients and the awarding of n
Slide 4: Key Clients
Key Clients For personal use only NRW HOLDINGS LTD REVENUE MIX BY CLIENT REVENUE MIX BY DIVISION 23% 21% 3% 4% 33% 4% 61% 10% 25% 2% 14% BHP Citic Pacific FMG Gindalbie Mining Civil Action Promac OM Holdings Other Rio Tinto Investor Presentation Full Year Results FY2010
Slide 5: Human Resources and Training
Human Resources and Training For personal use only Training & Development Initiatives Key Management Ongoing extensive Safety Training programmes • Julian Pemberton, Chief Executive Officer attended by all staff • Willie Rooney, MD Civil & Mining Indigenous Cultural Awareness workshops attended
Slide 6: Indigenous Engagement
Indigenous Engagement For personal use only Currently Joint Ventures exist between NRW and Traditional Owner Groups, the Ngarluma and Yindjibarndi People (represented through the Ngarluma and Yindjibarndi Foundation Limited - NYFL) and the Eastern Guruma People (represented by Eastern Guruma Pty L
Slide 7: Operational Overview
Operational Overview For personal use only Investor Presentation Full Year Results FY2010
Slide 8: Civil Division – Key Projects
Civil Division – Key Projects For personal use only RGP5 (South) - BHPBIO Rail duplication - 54km of the southern section from Cowra siding to Yandi mine Contract includes: Rail formation, drill and blast, track and signals and a 300 man camp Consortium with Laing O’Rourke & John Holland Chi
Slide 9: Civil Division – Key Projects
Civil Division – Key Projects For personal use only Karara Concrete Works – Gindalbie Metals Contract includes: All preliminary construction works including site drains, roads, retention ponds and all-weather airstrip 40,000 cubic metres of concrete for Process Plant foundations In excess of 2
Slide 10: Mining Services – Key Projects
Mining Services – Key Projects For personal use only Hope Downs and Tom Price Mining – Rio Tinto Excavation, haulage and waste dump management services In-pit works including pre-development pit establishment, waste pre- stripping, waste cutback and remnant ore mining Hope Downs Christmas Creek
Slide 11: Mining Services – Key Projects
Mining Services – Key Projects For personal use only Bootu Creek – OM Holdings Drill and blast, excavation, haulage waste dump management services and crusher feed 3 + 2 year contract term Production targets increased Bootu Creek Mine Simandou Project – Rio Tinto Renegotiated contract extens
Slide 12: Action Mining Services
Action Mining Services For personal use only AMS has had a difficult year though still profitable and remains an important part of NRW’s business mix. Quarantine works increased due to stringent environmental criteria on Gorgon Project. As part of company wide review new GM and management stru
Slide 13: Action Drill & Blast
Action Drill & Blast For personal use only Division formed in March 2010 GM Warren Fair and senior personnel ex-Brandrill Initially formed to service internal contracts at Western Turner Syncline and Chichester Deviation Significant scope for external contracting in Western Australia and Que
Slide 14: Financials
Financials For personal use only RGP5 Rail South Investor Presentation Full Year Results FY2010
Slide 15: Operating Performance
Operating Performance For personal use only $M's FY07 FY08 FY09 FY10 * Mining 77.8 107.2 189.4 201.1 Civil 158.9 336.8 294.1 383.6 Drill & Blast - - - 7.0 Action Mining 4.8 26.2 25.6 24.5 Promac 28.6 21.2 31.8 17.1 Other / Eliminations (12.8) (20.2) (31.4) (23.4) SALES $257.4 $471.2 $509.6 $609.7 Co
Slide 16: Balance Sheet
Balance Sheet For personal use only $M's FY07 FY08 FY09 FY10 Working Capital 9.7 56.4 26.4 30.1 Non Current Assets 110.8 165.5 156.7 178.8 Investment in income producing assets Non Current Liabilities (1.6) (12.3) (0.6) (0.4) 118.9 209.6 182.5 208.5 Funding Cash / (overdraft) 16.6 (11.3) 20.6 21.4 S
Slide 17: Revenue
Revenue For personal use only $M's 800 30% CAGR 700 600 500 400 300 200 100 - FY06 FY07 FY08 FY09 FY10 FY11 NRW has secured FY11 revenue of $530m. In order to meet a 15% growth over FY10, $170m is to be won from a significant sized pipeline of works in the 2HY11. Revenue excludes variations, e
Slide 18: Cash Flow
Cash Flow For personal use only $M's FY09 FY10 EBIT 60.1 59.6 Depreciation 21.1 30.1 Goodwill impairment 0 2.7 Cash from operations before working capital 81.2 92.5 Net working capital movement 30.1 3.3 Tax Expense (14.9) (16.1) Interest paid (8.3) (8.6) Cash from operations 88.1 71.1 FY09 cash fl
Slide 19: Funding
Funding For personal use only $M's FY10 Working Cap & bank guarantees (ANZ) 100.0 OEM and other bank funding 173.0 Total $273.0 Utilization of facilities June 2010 $100.8 Headroom $172.2 Funding represented is only base facilities with availability for expanded capacity to meet large project requi
Slide 20: Capital Expenditure
Capital Expenditure For personal use only $51.0 $47.3 $36.4 $19.7 $8.0 $6.2 $4.4 $3.4 FY07 FY08 FY09 FY10 Maintenance ($m's) Growth ($m's) FY10 majority of expenditure occurred in 1HY10 with strategic and opportunistic purchases to meet new projects coming on stream in 2HY10. Growth Capex relate
Slide 21: Debt
Debt For personal use only 79% 67% 28% 23% $29 $93 $40 $39 FY07 FY08 FY09 FY10 Net Debt ($m's) Net Debt/Equity NRW’s mining projects are increasing in tenure providing the ability to match funding and avoid a funding “gap” The balance sheet was purposely de-geared in FY09 without the need to rai
Slide 22: Order Book
Order Book For personal use only $M's 800 700 FMG 600 500 400 300 200 100 0 Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 The order book is expanding as NRW diversifies the portfolio of projects with longer dated tenure. Western Turner Syncline (Rio Tinto) and Bootu Creek (OM Holdings) provide an an
Slide 23: Order Book Run Off
Order Book Run Off For personal use only $M's 800 700 600 500 400 300 200 100 0 FY 11 FY 12 FY 13 FY 14 The order book represents value at the commencement of the financial year. Clear goals set to increase tenure of projects to provide more transparency of future earnings Investor Presentation
Slide 24: Strategy & Outlook
Strategy & Outlook For personal use only FY11 target is to build NPAT growth in line with revenue growth; activity in second half of FY11 expected to increase as timing of project roll-outs normalizes Increase focus on longer term revenues whilst maintaining ROCE levels Focus on increasing NRW’s rel
Slide 25: Strategic Emphasis
Strategic Emphasis For personal use only A subtle shift . . . • Increased focus on ROCE as well as margin • Focus more on increasing our relevance to customers through a broader product / service offering • Ensure product / revenue mix appropriately balanced to changing environment • Take business i