Nrw Holdings Limited · ASX:NWH
Nrw — Investor Presentation (July 2011)
25 slides from Nrw's investor presentation, Jul 12, 2011
Slide 1: Investor Presentation
For personal use only Investor Presentation United Kingdom and United States of America 12 – 18 July 2011
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other com
Slide 3: Executive Summary
Executive Summary For personal use only Operational Highlights Purchase of Comiskey Earthmoving in Queensland for $82M plus Tyre Stock. Award of $780M coking coal contract with Middlemount Coal. NRW’s first coal project. Signed 5 year Framework Agreement with Rio Tinto Iron Ore for future eart
Slide 4: Safety and Training
Safety and Training For personal use only Performance As of June 30 2011 NRW employs a workforce in excess of 2000, comprising direct staff and sub contractors. NRW have world class safety systems and procedures in place and have recently implemented a new HSET reporting system which has improve
Slide 5: Services and Products
Services and Products For personal use only Civil Contracting Mining Services Drill and Blast Mechanical / Provides construction Provides a wide range Provides Drill and Blast Fabrication services including rail of contracting services services for the Mining Provides equipment formation, bulk inclu
Slide 6: Key Clients
For personal use only Key Clients 6
Slide 7: Civil Division: Current Projects
Civil Division: Current Projects For personal use only Western Turner Brockman Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $160 million Scope: Bulk earthworks for the overland conveyor at Western Turner Syncline; and civil works at the Broc
Slide 8: Civil Division: Current Projects
Civil Division: Current Projects For personal use only Karara Earthworks and Concrete Client: Karara Mining (Gindalbie Metals) Value: Approximately $190 million Scope: Bulk earthworks and concrete construction work for the iron ore crushing and processing facility. Works include the constructi
Slide 9: Civil Division: Current Projects
Civil Division: Current Projects For personal use only Great Eastern Highway Upgrade Client: Main Roads WA Model: Alliance with Leighton and GHD Value: $225 million Scope: Earthworks for the upgrade of the Great Eastern Highway in metropolitan Perth between Kooyong Road and Tonkin Highway Ma
Slide 10: Civil Division: Preferred Contractor
Civil Division: Preferred Contractor For personal use only Framework Agreement Client: Rio Tinto Iron Ore Tenure: Five years Scope: The projects covered in the agreement are a part of Rio Tinto’s 333 Expansion and this agreement places NRW in a preferred contractor position for these works. Be
Slide 11: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Middlemount Coal Client: Middlemount Coal* Value: Approximately $780 million (over five years) Scope: The mining contract is for all mining activities including clearing and grubbing, long and short term detailed mine scheduling and plann
Slide 12: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Western Turner Syncline Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $200 million (over 4 years) Scope: Involves the engineering design and development of site infrastructure, mining of
Slide 13: Action Drill & Blast
Action Drill & Blast For personal use only Division formed in March 2010. Initially formed to service internal contracts at Rio Tinto’s Western Turner Syncline and BHP Billiton Iron Ore’s RGP5. It now employs 150 people operates 21 drill rigs and has undertaken work on 12 contracts. Commenced
Slide 14: Action Mining Services
Action Mining Services For personal use only Provides equipment repairs, sand blasting and painting services, service truck and tanker fabrication and import services (including quarantine cleaning) Clients include NRW Civil and Mining, Emeco, MACA, Westrac, Thiess, amongst others. Sales expec
Slide 15: Project Map
Project Map For personal use only Fortescue Metals Group - Mining Fortescue Metals Group Christmas Creek Mine; Civil Cloudbreak Mine Herb Elliot Port; Main Line Rail Duplication ECI Darwin Downer EDI - Drill & Blast Christmas Creek Mine Rio Tinto Iron Ore - Civil Western Turner Brockman; OM Holdings
Slide 16: Group Revenue Growth
Group Revenue Growth For personal use only $m's 1200 Target 1000 800 600 $1,000 400 $700 $610 $471 $509 200 $278 0 FY07 FY08 FY09 FY10 FY11 FY12 • FY11 estimated revenue of $700 million consistent with market guidance of 15% increase over FY10; subject to finalisation and audit of statutory financia
Slide 17: Order Book
Order Book For personal use only $0.90 $0.85bn $0.80 $0.76bn $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.06bn $- 2HY2011 (Jun 2011) FY12 FY13 & beyond Total order book at start: $1.66bn $1.61bn $0.85bn Note: 1. Order book as at 31 May 2011. Mining order book $1.08bn, Civil order book $0.58bn. 2. Or
Slide 18: Current Funding Facilities
Current Funding Facilities For personal use only FACILITIES ($m's) Limit Bonding 150 Finance Lease 270 Working Capital 50 TOTAL $470 • Structured Debt Facility (ANZ lead arranger) provides NRW the capability and flexibility to fund asset purchases into the future, initial value $100m with ability to
Slide 19: Opportunity Pipeline FY2012/2013
Opportunity Pipeline FY2012/2013 For personal use only As highlighted by the award of the Middlemount Contract, NRW is expected to continue to benefit from diversification across client base, commodity and geography. Target Opportunities Pipeline Civil Projects • Fortescue Expansion 0.79 • Rio Tinto
Slide 20: Strategic Objectives
Strategic Objectives For personal use only Targeting $1b Targeting Achieved to Date Revenue $1.2b+ Revenue FY12 FY13 Awarded Government Main Roads contract • Maintain strong • Expand on-shore Oil & Awarded contract in Oil & Gas sector revenue growth and Gas capability Added to services – Drill
Slide 21: APPENDICES: Half Year Results to December 2010
APPENDICES For personal use only Half Year Results to 31 December 2010 21
Slide 22: Operating Performance
Operating Performance For personal use only 1HY11 1HY10 Change SALES REVENUE $m 358.3 275.6 30% Civil Contracting $m 192.1 171.3 12% Mining Services $m 149.9 87.7 71% Drill & Blast $m 11.3 0.0 Action Mining $m 12.7 11.2 14% Other* $m (7.7) 5.4 EBITDA $m 48.5 37.9 28% EBIT $m 32.0 25.8 24% NPAT $m 20
Slide 23: Revenue Diversity
Revenue Diversity For personal use only REVENUE MIX BY CLIENT REVENUE MIX BY DIVISION 4% 2% 23% 33% 21% 4% 61% 10% 25% 2% 14% BHP Citic Pacific FMG Gindalbie Mining Civil Action Other OM Holdings Other Rio Tinto 23
Slide 24: Funding and Debt Position
Funding and Debt Position For personal use only Dec 2010 Jun 2010 Dec 2009 Cash $m 40.9 21.4 14.5 Debt $m 55.7 60.9 79.6 Net Debt $m 14.9 39.4 65.1 Net Debt / Equity 8% 23% 29% Capex (6 months) $m 14.6 26.2 33.8 Funding headroom $m 301.0 175.0 100.0 Significantly improved cash position in 1HY2011
Slide 25: Cash Flow 1HY2011
Cash Flow 1HY2011 For personal use only $m's $100 $90 $80 $70 $2.8 $3.5 $60 $21.5 $50 $47.8 $7.5 $40 $30 $20 $40.9 $10 $21.4 $0 Opening Cash Operating Investing Proceeds from Repay Loans Dividend Closing Cash June 2010 activities activities borrowings Dec 2010 Inflow Outflow Investing activities r