Mastermyne Group Limited · ASX:MYE
Mastermyne — FY2019 Earnings Presentation
20 slides from Mastermyne's earnings presentation, Aug 21, 2019
Slide 1: FY2019 Full Year Results Presentation
FY2019 Full Year Results Presentation August 2019 Tony Caruso, CEO & Managing Director Brett Maff, Chief Financial Officer
Slide 2: Mastermyne continues to deliver strong results in FY19
Mastermyne continues to deliver strong results in FY19 • Buoyant coal industry - long term fundamentals remain strong • Sale of Scaffolding, Blast and Paint business • Mastermyne operating model is delivering real leverage o Net proceeds returned to shareholders through a 2 cents o Revenue increased
Slide 3: Continued growth is delivering excellent cash flow
Continued growth is delivering excellent cash flow • Result in line with guidance despite deferral of North Goonyella revenue and sale of Scaffold, Blast & Paint business • Overhead costs as a proportion of revenue has reduced from 10% in FY2017 to 6.4% in FY2019 (6.2% FY2020 Forecast) • Full Year E
Slide 4: Strong capital position provides flexibility
Strong capital position provides flexibility Debt Profile $millions (AUD) • End of year Net Cash position of $16.4m $20 • Debt repayments of $3.0m during FY2019 $15 • Debt free – fully repaid facility in June 2019 $10 1.5 $5 • Undrawn working capital and equipment lines of $20m and $10m respectively
Slide 5: Our safety performance is good but we want to be better
Our safety performance is good but we want to be better • Focus on safety culture is delivering outcomes • Strong leadership element in all Mastermyne safety improvement initiatives • “Brain Science” project is providing insights into improving safety message delivery • Mastermyne is participating i
Slide 6: Workforce numbers and equipment utilisation continue to increase
Workforce numbers and equipment utilisation continue to increase • Gross margins benefited from improved contract terms • Our services remain inextricably linked to our clients production Group headcount FTE outcomes ~1250 • Mastermyne performance has supported increased production delivered by an e
Slide 7: Order book benefiting from contract wins like Aquila Project
Order book benefiting from contract wins like Aquila Project FY2020 order book FY2021 order book Post FY2021 order book Tendering pipeline $251 million* $185 million $148 million $1.8 billion • Recently announced the Aquila Development contract • Potential for North Goonyella development contract to
Slide 8: World class assets and long term relationships supporting record order book
World class assets and long term relationships supporting record order book 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 QUEENSLAND BMA Broadmeadow Conveyors Anglo Moranbah Region Umbrella Contract Anglo American Aquila Equipment Hire Anglo American Aquila Development Anglo American G
Slide 9: Key focus areas to deliver further growth
Key focus areas to deliver further growth 01 02 03 Maximise returns from Expand underground Build a whole of mine core coal business service offering business PRIORITIES PRIORITIES PRIORITIES • Convert current tender pipeline • Leverage Wilson Mining • Assessing multiple WOM opportunities opportunit
Slide 10: Strong industry fundamentals support long term growth
Strong industry fundamentals support long term growth • Coal industry has been buoyant over the last 12 months with both metallurgical and thermal prices enjoying a period of Forecast Australian coal exports relative strength • Coal mine operators responded with a strong production focus and continu
Slide 11: Outlook for Mastermyne is continued growth in FY2020
Outlook for Mastermyne is continued growth in FY2020 • Strong industry fundamentals support a large pipeline of opportunities • Order book significantly bolstered with strong bias back to metallurgical coal • Greenfield opportunities progressing with some projects well advanced (e.g. Aquila, Eagle D
Slide 12: Strong FY2019 and promising outlook
Strong FY2019 and promising outlook • Buoyant coal industry - long term fundamentals remain • Sale of Scaffolding, Blast and Paint business strong o Net proceeds returned to shareholders through a 2 cents • Mastermyne operating model is delivering real leverage per share Special Dividend o Revenue i
Slide 13: Appendices
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Slide 14: Corporate Overview
Corporate Overview 53% Capital structure Shareholder composition Share price as at 14 August 2019 $1.06c Shares on issue 101.7m Retail Investors 52% Market capitalisation $107.3m Institutional Investors 32% Net cash/(Debt) as at 30 June 2019 $16.4m Enterprise value $90.8m Board & Management 16% Two-
Slide 15: Board
Board Colin Bloomfield Anthony Caruso Andrew Watts Gabriel Meena Julie Whitcombe Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Colin’s former roles during his 27 Tony has held a number of senior Andrew co-founded Mastermyne in Gabe is a
Slide 16: FY19 Financial Performance
FY19 Financial Performance Period ended 30 June 2019 FY19 FY18 Change Total Revenue $238.04m $201.72m +18.0% EBITDA $21.01m $16.34m +28.5% EBITDA % 8.8% 8.1% 0.7% Statutory profit/(loss) before tax $12.14m $8.21m +47.9% Tax benefit/(expense) ($3.60m) ($2.62m) (37.5%) Gain on sale of divested busines
Slide 17: FY19 Cash Flow
FY19 Cash Flow Period ended 30 June 2019 FY19 FY18 $AUD millions EBITDA (Statutory) 21.01 16.34 Movements in working capital 3.37 (4.71) Non-cash items 0.18 (0.08) Interest costs (0.59) (0.64) Income tax receipts / (payments) (1.76) (0.58) Net Operating Cash Flow 22.21 10.33 Net capex (including int
Slide 18: FY19 Balance Sheet
FY19 Balance Sheet Assets Liabilities Period ended 30 June 2019 Period ended 30 June 2019 FY19 FY18 FY19 FY18 $AUD millions $AUD millions Assets Liabilities Cash and cash equivalents 16.42 0.001 Bank overdraft - 0.52 Trade and other receivables 39.17 43.43 Trade and other payables 16.82 19.02 Invent
Slide 19: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided regarding the success of the strategies is subject to uncertainties and contingencies beyond Mastermyne’s information contained in this presentation (the Information). You are advised to read this control,
Slide 20: Contacts
Contacts Tony Caruso Managing Director (07) 4963 0400 Brett Maff CFO/Company Secretary (07) 4963 0400 mastermyne.com.au