Mlg Oz Ltd · ASX:MLG
Mlg Oz — Investor Presentation (February 2022)
16 slides from Mlg Oz's investor presentation, Feb 23, 2022
Slide 1: Half Year Financial Results
Half Year Financial Results HY2022 – Period ended 31 December 2021 23 FEBRUARY 2022
Slide 2: Financial Highlights
Financial Highlights Challenging half year following loss of Fortescue contract and cost pressures but performance now improving • Strong revenue run rate HY 2022 - EBITDA Statutory Revenue - Ramp up of new projects - Second quarter client rate increases 12.0 $141.9m 10.9 • Rapid cost increases in Q
Slide 3: Operational update
Operational update We have actively responded to a material change in our environment in consultation with our staff and our clients Responding to loss of Fortescue Adjusting to Productivity and Enhancing A focus on data Contract at rapidly escalating Optimisation of leadership and analytics and Chr
Slide 4: Integrated services model targeted at client processing facilities
Integrated services model targeted at client processing facilities Contract tenor typically 2-3 years with commercial terms and conditions and specific scope of work MINE SITE BENEFIT OF INTEGRATED MODEL • Single service provider MINE Site Construction MINE • Single contractual management touch poin
Slide 5: Vertically integrated service offering
Vertically integrated service offering MLG delivers integrated production support services to embed MLG into customer operations C o n st r u c t i o n Site Services Crushing and Export Materials and B u l k H a u l a ge a n d C i v i l Wo r ks Screening Logistics Quarries • Strategic acquisition an
Slide 6: Financial Performance
Financial Performance
Slide 7: Tight labour market and supply chain issues have restricted profitability
Tight labour market and supply chain issues have restricted profitability While higher client rates have driven higher revenue to mitigate costs, new rates have largely only increased in recent months Pro Forma Actuals $000’s Notes HY21 HY22 • Strong site services and haulage revenue growth from new
Slide 8: Historical financial performance
Historical financial performance Revenues continue to grow from new project wins and growth with our existing clients Full Year - Pro forma1 revenue Half Year - Pro forma2 revenue 250 254 241 DIVIDEND 200 200 205 REVENUE 1.71c/Share 150 Export $3.7m (Jan to June 2021) $Am 140 Logistics 3% 100 119 10
Slide 9: High capex to equip new projects and with pre orders arriving
High capex to equip new projects and with pre orders arriving Debt levels have risen as expected with high capital expenditure through this year. Property, Plant & Equipment 180 • Total capital expenditure of $33.0m $60.7m • Capex expected to slow in H2 165 HY2022 $174.2m • New project equipment pur
Slide 10: Balance Sheet
Balance Sheet New projects have driven additional capex leading to higher debt gearing. Consolidated Consolidated $000’s 30 June 2021 31 December 2021 Cash and cash equivalents 9,689 2,563 • Growth in inventories in line with new project Trade and other receivables 42,226 46,702 mobilisations Invent
Slide 11: Cashflow and Capital expenditure
Cashflow and Capital expenditure Lower profitability has constrained total operating cashflows with Q1 higher cost base reducing cashflow conversion Operating Cashflow • Strong revenue growth has expanded 31 December 31 December overall cash receipts 2020 2021 $'000 • Material rise in labour, parts
Slide 12: Outlook
Outlook
Slide 13: Outlook strengthening with capacity and capability
Outlook strengthening with capacity and capability Capability to deliver and manage through a tight labour and equipment market is driving selection criteria Roadtrains Large fleet capacity drives competitive advantage 157 Trucks + Fragmented competitor landscape does not supply integrated solution
Slide 14: Financial performance improving, Covid impacts to be monitored?
Financial performance improving, Covid impacts to be monitored? Operations well positioned to improve efficiency and deliver for our clients, but will need to be flexible given expected Covid impacts • Monthly profit run rate much improved in last 3 months Profitability • Jan and February typically
Slide 15: Strong pipeline of potential growth opportunities
Strong pipeline of potential growth opportunities MLG has identified and is actively pursuing a range of potential growth initiatives Further contract wins Expanded service offering Pursuit of strategic assets • Utilise differentiated business capability to • MLGs growth to date has been driven by t
Slide 16: Thank you
Thank you. Contact: Phil Mirams Chief Financial Officer Level 5, Cloisters 200 St Georges Terrace Perth, WA 6000 E: investors@mlgoz.com.au P: 08 6118 5106