Nrw Holdings Limited · ASX:NWH
Nrw — H1 2008 Earnings Presentation
20 slides from Nrw's earnings presentation, Feb 22, 2008
Slide 1: Investor Presentation – Half Year 2008 Result
For personal use only Investor Presentation – Half Year 2008 Result 22 February 2008
Slide 2: Agenda
For personal use only Agenda Highlights Business Review Income Statement Balance Sheet Operating Cash Flow Capital Expenditure Strong Industry Growth Outlook Appendix – Additional financial information 2
Slide 3: Business Highlights
For personal use only Highlights Business Highlights Successful completion of IPO and listing on ASX Strong market demand for civil and mining services, equipment and maintenance services Integration of Action Mining acquisition Implementation of NRW detailed safety and financial systems com
Slide 4: Financial Highlights
For personal use only Highlights Financial Highlights Pro Forma Revenue of $253.5m (58% of full year Prospectus forecast) Pro Forma EBIT of $34.9m (54% of full year Prospectus forecast) Pro Forma NPAT of $22.3m (56% of full year Prospectus forecast) Pro Forma EPS of 8.89 cents Fully franke
Slide 5: Business Review: Civil Contracting
Business Review Civil Contracting For personal use only Project name Description 105km Rail Project progressing well with NRW approx FMG Construction 90% complete FMG Additional works being undertaken by variation Ranger Uranium Project completed and demobilised ERA ERA Ranger Brockman 4 – P
Slide 6: Business Review: Mining Services
Business Review Mining Services For personal use only Project name Description Tom Price Mining Excavation, haulage and waste dump Tiwi Islands Rio Tinto management services In-pit works including pre development pit establishment, waste prestripping, waste cutback and remnant ore mining Tiwi Is
Slide 7: Business Review: Promac and Action Mining Services
Business Review Promac For personal use only Tyre sales expected to increase in the second half and negotiations are continuing with major retail outlets for Australia wide distribution Promac’s Lighting Tower product will be available by the end of March 2008 for release at trade shows in April
Slide 8: Income Statement: Pro Forma revenue by division
Income Statement Pro Forma revenue by division For personal use only Full Year ’07 Half Year ‘08 Full Year ‘08 Pro Forma $m Pro Forma actual Pro Forma actual Prospectus forecast NRW Civil Contracting 162.0 220.5 305.7 NRW Mining Services 77.8 18.9 91.4 Promac 28.6 10.7 39.6 Action Mining 20.7 13.6 2
Slide 9: Pro Forma Income Statement
For personal use only Income Statement Pro Forma Income Statement Full Year ‘07 Half Year ‘08 Full Year ‘08 Pro Forma $m unless stated Pro Forma actual Pro Forma actual Prospectus forecast Revenue 277.6 253.5 440.4 EBITDA 45.2 42.4 85.4 EBITDA margin (%) 16.3% 16.7% 19.4% Depreciation (11.6) (7.5) (
Slide 10: Income Statement
For personal use only Income Statement Pro Forma financials are adjusted for IPO and other one-off costs to reflect the recurring performance of NRW Group (refer Appendix for Statutory financials) Lower EBITDA margin than Prospectus forecast reflects low margin on FMG camp construction Strateg
Slide 11: Summary Balance Sheet
Balance Sheet Summary Balance Sheet For personal use only $m unless stated 31 Dec 07 Total debt of $75m (net debt of $52.5m) Cash 22.5 Trade finance of $15m (converted to hire PPE 114.7 purchase liabilities in Jan 2008) Other assets 125.8 Hire purchase liabilities of $60m (3-5 year Total asset
Slide 12: Pro Forma Operating Cash Flow
Operating Cash Flow Pro Forma Operating Cash Flow For personal use only Full Year ‘07 Half Year ‘08 Full Year ‘08 Pro Forma $m Pro Forma actual Pro Forma actual Prospectus forecast EBIT 33.6 34.9 64.2 Depreciation and amortisation 11.7 7.5 21.1 EBITDA 45.2 42.4 85.4 Working capital movements (0.2) (
Slide 13: Capital Expenditure
For personal use only Capital Expenditure 70 Half Year 2008 capital expenditure of 61.1 $39.1m 60 $6.1m funded by cash 50 $21.7m funded by hire-purchase liabilities and $11.3m funded by trade finance 40.8 40 39.1 Capital expenditure primarily relates to: $m 52.4 Simandou project ($12.7m) 3
Slide 14: Strong Industry Growth
Strong Industry Growth Key clients continue to increase investment and announce iron ore For personal use only production increases in WA and offshore Current production: 166 mt Current production: 0 Current production: 108 mt (FY2007) (FY2007) Forecast production: 320 mt Forecast production: 55 mt
Slide 15: Outlook: Strong growth and margins
Outlook Strong growth and margins For personal use only 400 16.0% 13.8% 13.4% 350 14.0% 12.1% 300 12.0% 250 8.4% 10.0% 200 8.0% 150 277.6 253.5 6.0% 100 186.2 4.0% 50 76.7 2.0% 0 0.0% Full Year Full Year Full Year Half Year 2005 Actual 2006 Actual 2007 Actual 2008 Actual Pro Forma Revenue ($m) Pro F
Slide 16: Outlook
For personal use only Outlook Strong trading conditions expected to continue for foreseeable future 100% of the Group’s FY08 Prospectus revenue forecast of $440.4m is secured or under negotiation Civil and Mining divisions have already secured revenue of $160m for the second half of FY08 with
Slide 17: Appendix – Additional financial information
For personal use only Appendix – Additional financial information 17
Slide 18: Statutory and Pro Forma Income Statement
For personal use only Additional financial information Statutory and Pro Forma Income Statement Half Year ‘07 Half Year ‘08 Half Year ‘08 Full Year ‘08 Statutory Statutory Pro Forma Pro Forma $m unless stated actual actual actual Prospectus forecast Revenue 134.0 253.5 253.5 440.4 EBITDA 21.6 30.2 4
Slide 19: Reconciliation of Statutory to Pro Forma Income Statement
For personal use only Additional financial information Reconciliation of Statutory to Pro Forma Income Statement Half Year ‘08 IPO related Half Year ‘08 $m unless stated Statutory actual costs Other costs Pro Forma actual Revenue 253.5 - - 253.5 Operating costs (223.3) 11.7 0.5 (211.1) EBITDA 30.2 1
Slide 20: Statutory Consolidated Statement of Cash Flows
For personal use only Additional financial information Statutory Consolidated Statement of Cash Flows Half-year ended 31 Half-year ended 31 December 2007 December 2006 $’000 $’000 Cash flows from operating activities Cash receipts from customers 246,403 134,585 Cash paid to suppliers and employees (