Emeco Holdings Limited · ASX:EHL
Emeco — FY2013 Earnings Presentation
27 slides from Emeco's earnings presentation, Aug 22, 2013
Slide 1: 2013 Full Year Results
For personal use only 2013 FULL YEAR RESULTS 22 AUGUST 2013 KEITH GORDON, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER STEPHEN GOBBY, CHIEF FINANCIAL OFFICER
Slide 2: Presentation Overview
PRESENTATION OVERVIEW For personal use only • Highlights • Financials • Strategy & Outlook • Questions • Appendices 2
Slide 3: Highlights
For personal use only HIGHLIGHTS Keith Gordon Managing Director & Chief Executive Officer 3
Slide 4: FY13 Year in Review
FY13 YEAR IN REVIEW For personal use only LOWER COMMODITY PRICES AND COST FOCUS BY MINERS IMPACTED ACTIVITY Operating NPAT of $35.2M in line with guidance Operating results PCP Statutory NPAT of $6.0M includes one-off items A$million FY11 FY12 FY13 Var % Global utilisation averaged 67% in FY13, vers
Slide 5: Safety, People & Sustainability
SAFETY, PEOPLE & SUSTAINABILITY For personal use only SAFETY, OUR EMPLOYEES AND COMMUNITY ENGAGEMENT REMAIN A KEY PRIORITY Total Recordable Injury Safety Frequency Rate (TRIFR) o TRIFR improved 39% on prior year 20 o Low LTIFR maintained throughout period 15 TRIFR o Sub-contractor compliance improve
Slide 6: Diversifying for the Future
DIVERSIFYING FOR THE FUTURE For personal use only EXPANDING COMMODITY AND GEOGRAPHIC DIVERSIFICATION A KEY STRATEGY Revenue by Commodity Revenue by Region FY12 FY13 FY12 FY13 Other, 12% Thermal Other, 7% Chile, 4% Copper, 4% Thermal Canada, 13% Coal, 29% Coal, 30% Iron ore, 7% Canada, Iron ore, Indo
Slide 7: Flexible Fleet Strategy to Support Growth
FLEXIBLE FLEET STRATEGY TO SUPPORT GROWTH For personal use only FLEET MIX WELL PLACED WITH FOCUS ON REDEPLOYMENT TO MEET DEMAND Fleet profile Fleet Redeployment WDV Number of machines Group Fleet Chile Fleet 37.8% 41.5% 94.9% 5.1% 38.5% 61.5% 58.5% 62.2% Large mining Large mining Small mining Small
Slide 8: Regional Performance - Australia
REGIONAL PERFORMANCE - AUSTRALIA For personal use only RAPID DECLINE IN MARKET ACTIVITY ADVERSELY IMPACTING PERFORMANCE REVENUE EBITDA EBIT Utilisation 383.3 215.7 115.6 327.2 100% 185.3 98.3 250.6 80% 121.6 60% 53.4 Current 37% 40% 20% 418 machines, WDV $367M 0% FY11 FY12 FY13 FY11 FY12 FY13 FY11 F
Slide 9: Regional Performance - Canada
REGIONAL PERFORMANCE - CANADA For personal use only DIRECT EXPOSURE TO OIL MAJORS DRIVING EARNINGS GROWTH REVENUE1 EBITDA1 EBIT1 Utilisation 94.2 46.5 23.4 100% 64.9 67.2 35.9 32.6 80% 16.2 Current 14.0 60% 56% 40% 20% 141 machines, WDV $182M 0% FY11 FY12 FY13 FY11 FY12 FY13 FY11 FY12 FY13 Revenue u
Slide 10: Regional Performance - Indonesia
REGIONAL PERFORMANCE - INDONESIA For personal use only REDUCED COAL ACTIVITY AND CUSTOMER CONCENTRATION IMPACTING PERFORMANCE REVENUE1 EBITDA1 EBIT1 Utilisation 60.3 28.0 100% 49.9 25.2 44.6 14.3 80% 21.0 10.0 60% 5.3 40% 20% Current 230 machines, WDV $108M 2% 0% FY11 FY12 FY13 FY11 FY12 FY13 FY11 F
Slide 11: Regional Performance - Chile
REGIONAL PERFORMANCE - CHILE For personal use only SUCCESSFUL EXPANSION INTO CHILE INCREASES DIVERSIFICATION Chile business averaged 86% utilisation since FY13 Performance1 inception, contributing revenue of $17.4M and 17.4 EBIT of $6.4M 11.1 $100M now invested in business, including approx. $40M re
Slide 12: Financials
For personal use only FINANCIALS Stephen Gobby Chief Financial Officer 12
Slide 13: Financial Summary
FINANCIAL SUMMARY For personal use only At a glance… PCP Var A$million FY11 FY12 FY13 % Revenue 502.5 565.2 439.7 (22.2)% EBITDA 223.3 261.7 188.3 (28.0)% EBIT 101.2 126.0 75.6 (40.0)% NPAT 56.0 71.1 35.2 (50.5)% Statutory NPAT1 49.6 70.0 6.0 (91.4)% ROC %2 11.3 13.2 7.1 (6.1)% Free cash flow 144.8
Slide 14: Margins & Operating Costs
MARGINS & OPERATING COSTS For personal use only PRICING AND FIXED COSTS IMPACTING MARGINS DESPITE VARIABLE DIRECT COSTS FY13 EBITDA Analysis Operating Cost – % of Revenue1 FY12 FY13 300.0 50% 261.7 Repairs & 250.0 223.3 maintenance 21.9% 22.0% 48% 200.0 188.3 Direct 46% Cost of maintenance services
Slide 15: Depreciation
DEPRECIATION For personal use only EBIT MARGINS ALSO IMPACTED BY IDLE FLEET DEPRECIATION FY13 EBIT Analysis Depreciation 140.0 25.0% 35% 126.0 1.6% 1.0% 2.8% 120.0 30% 101.2 23.0% % of Rental Revenue 100.0 25% 22.3% 75.6 21.0% 80.0 20% 60.0 20.1% 15% 29.1% 28.9% 19.0% 26.6% 40.0 10% 17.0% 20.0 17.2%
Slide 16: Cash Generation
CASH GENERATION For personal use only CASHFLOW LEVERS DRIVING SIGNIFICANT CASH GENERATION IN 2H13 1H13 2H13 FY13 Strong cash from operations of $206M Cash from operations 124.4 81.6 206.0 General working capital (1.7) (1.0) (2.7) 2H13 free cashflow of $60M generated Sales & parts inventory 3.3 18.9
Slide 17: Working Capital & Capital Expenditure
WORKING CAPITAL & CAPITAL EXPENDITURE For personal use only CAPITAL RELEASE AND CAPEX KEY FOCUS OF BUSINESS A$M Working Capital 120 Trade receivables declined $20M over FY13 100 representing the unwinding of revenue during the (20.0) 21.1 (20.4) 80 6.8 (12.5) year 60 95.8 40 Further wind-down of Par
Slide 18: Free Cashflow Across the Cycle
FREE CASHFLOW ACROSS THE CYCLE For personal use only Free Cash Flow Generation (excl. Growth Capex & Capital Mgt) A$M Utilisation % 100% 250 200 80% 150 60% 100 50 40% - 20% -50 -100 0% 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 Free cashflow before growth capex and 60 53 55 67 69 76 64 50 48
Slide 19: Funding Profile
FUNDING PROFILE For personal use only CASH DEBT REDUCTION IN 2H13 PARTIALLY OFFSET BY AUD DECLINE Debt headroom A$M Debt maturity profile A$M 250 650 200 550 Headroom $214M 150 100 450 455.1 414.7 50 382.5 350 0 Jun-12 Dec-12 Jun-13 Total facility limit Net debt Gearing2 Other debt metrics 3.0 A$mil
Slide 20: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK Keith Gordon Managing Director & Chief Executive Officer 20
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK For personal use only Project pipeline has improved in Australia, with new opportunities in coal and iron ore but market is expected to remain highly competitive. Important to remain customer focused and flexible with our offer Strong opportunity pipeline in Canada, preferred equi
Slide 22: Questions
For personal use only QUESTIONS 22
Slide 23: Further Information
FURTHER INFORMATION For personal use only Thank you for your interest in Emeco Further investor enquiries should be directed to: • Keith Gordon CEO • Stephen Gobby CFO • Brendan Shalders Investor Relations 23
Slide 24: Appendices
For personal use only APPENDICES 24
Slide 25: Detailed Financials
DETAILED FINANCIALS For personal use only Profit & Loss Cashflow A$ millions FY12 FY13 PCP Var % PCP Var A$ millions FY12 FY13 % Revenue 565.2 439.7 (22.2)% Operating cashflow 259.9 206.0 (20.7)% EBITDA 261.7 188.3 (28.0)% General working capital (9.8) (2.7) 72.4% margin (%) 46.3 42.8 Sales & parts
Slide 26: Disclaimer
DISCLAIMER For personal use only Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.
Slide 27: Learn more about us
For personal use only Learn more about us emecogroup.com