Slide 1: 2008 annual results presentation
For personal use only 2008 annual results presentation 19 August 2008 Record Profit & Positioned for Growth in FY09 Rob Velletri Giles Everist Managing Director Chief Financial Officer
Slide 2: Agenda
agenda For personal use only FY08 highlights Financials TSR performance People & safety Operational reports: engineering construction (EC) maintenance & industrial services (M&IS) electrical & instrumentation services (MIE) skystar airport services (Skystar) Strategy Outlook BHP Billiton, RGP3 – Min
Slide 3: FY08 highlights
FY08 highlights For personal use only NPAT (Rep) up 15% to $69.6m, EPS up 13% to 83.2c NPAT (Norm) up 9% to $66.2m, EPS up 8% to 79.1c & DPS 72c Financial Revenue down 1% to $954.0m EBITDA (Norm) up 11% to $104.5m, margins expanded to 11% EC & MIE consolidated while M&IS growth continued Operating S
Slide 4: Financial highlights
financial highlights For personal use only Jun-08 Jun-07 % Change Sales Revenue $m 954.0 963.7 -1% EBITDA (normalised) $m 104.5 94.0 11% Operating Cash Flow $m 92.5 96.3 -4% NPAT (normalised) $m 66.2 60.4 9% EPS (normalised) cps 79.1 73.6 8% DPS cpsff 72.0 66.0 9% Return on Equity (normalised) % 68.
Slide 5: Strong balance sheet
strong balance sheet For personal use only Jun-08 Jun-07 % Change Cash $m 126.4 101.4 25% Debt $m 24.9 27.5 -9% Net Cash $m 101.6 73.9 37% Bank Guarantees & Utilised 154 70 Performance Bonds (Available) $m (165) (145) 120% Capital expenditure $m 17.1 19.4 -12% Strong cash position $36.3m final divid
Slide 6: Revenue & key drivers
revenue & key drivers For personal use only sales revenue $m sales contributions % 1% 2% 3% 2% 1% 963.7 954.0 26% 32% 35% 38% 49% 7% 8% 2% 532.0 5% 390.6 61% 65% 54% 59% 220.8 50% FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 EC MIE M&IS Skystar H1 H2 6
Slide 7: EBITDA & margins
EBITDA & margins For personal use only EBITDA $m EBITDA margin % (109.4) 104.5 (11.5% ) 11.0% 94.0 9.8% 9.2% 7.3% 7.4% 49.0 29.0 16.1 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 H1 H2 Skystar divestment Skystar divestment Note: FY08 figures in brackets are (reported), otherwise normalised 7
Slide 8: Operating cash flow & conversion rate
operating cash flow & conversion rate For personal use only operating cash flow $m EBITDA to cash flow conversion % 96.3 156% 92.5 127% 116% 66.8 5-yr Avg : 114% 105% 64% 24.0 6.6 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 H1 H2 Note: Cash flow (ungeared pre-tax) = operating cash flow – net i
Slide 9: NPAT & margins
NPAT & margins For personal use only NPAT $m NPAT margin % (69.6) (7.3% ) 66.2 6.9% 60.4 6.3% 5.5% 4.3% 3.9% 29.4 16.7 8.5 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 Skystar divestment H1 H2 Skystar divestment Note: FY08 figures in brackets are (reported), otherwise normalised 9
Slide 10: NPAT contribution analysis
NPAT contribution analysis For personal use only NPAT $m 3.4 (1.6) (0.1) 0.1 69.6 1.1 7.0 60.4 (0.7) FY07 NPAT Sales Growth Margin Acquisitions Skystar D&A Interest (Net) Tax FY08 NPAT Growth Divestment (Reported) Note: The above NPAT contribution analysis is not to scale (in order to enhance graphi
Slide 11: Record returns
record returns For personal use only earnings per share dividends per share (83.2) 79.1 72.0 73.6 66.0 36.5 33.0 21.1 19.3 11.1 7.5 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 H1 H2 Skystar divestment H1 H2 Note: FY08 figures in brackets are (reported), otherwise normalised 11
Slide 12: Exceptional return on equity
exceptional return on equity For personal use only RoE % (average) 79.2% 68.9% 54.3% 39.0% 29.3% 26.4% 23.2% FY04 FY05 FY06 FY07 FY08 ASX Peer Best Group Source: 100 Peer Group: Various (incl. DOW, LEI, MAH, NWH, TSE & UGL) FY07/FY08 RoE averages (Range: 16.3% - 44.2%) ASX Best 100: BRW, representin
Slide 13: Superior total shareholder returns (TSR)
superior total shareholder returns (TSR) For personal use only $1,000 investment 5 years ago $100,000 $14,948 $10,000 $2,122 $1,694 $1,000 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 MND S&P/ASX200 Accumulation Index S&P/ASX200 Industrials Accumulation Index 13
Slide 14: Top quartile stock performance
top quartile stock performance For personal use only TSR & relative performance MND Quartile Performance & TSR FY04 FY05 FY06 FY07 FY08 Quartile 2nd 1st 1st 1st 2nd TSR (pa) 55% 138% 82% 133% (4%) UGL MND MAH MND MAH 1st MAH UGL MND LEI LEI TSE MAH UGL MAH DOW 2nd MND DOW LEI XNJ MND XJO TSE DOW TSE
Slide 15: For personal use only
For personal use only Rio Tinto, DPU Phase B, Dampier (WA)
Slide 16: People performance
people performance For personal use only Highlights: employee numbers A review and roll-out of the ‘Right People Right Culture’ strategy 3,791 3,848 Continued to achieve high employee 2,926 retention rates – in excess of 90% for high impact roles 1,642 1,480 Success in a number of key employee progr
Slide 17: Safety scorecard
safety scorecard For personal use only total case injury frequency rate Highlights: (TCIFR) TCIFR (a key safety metric) was down 32% from FY07 28.6 (significant reductions across all divisions) 22.6 Continued investment in HSE systems and leadership training 17.3 12.6 Implementation of an upgraded i
Slide 18: For personal use only
For personal use only BGMMC, Boddington Gold Mine Expansion, Boddington (WA)
Slide 19: Operational reports
operational reports For personal use only Jun-08 Jun-07 % Change Engineering Construction $m 576.0 657.5 -12% Maintenance and Industrial Services $m 316.7 262.5 21% Electrical and Instrumentation Services $m 76.0 71.8 6% Skystar $m 14.7 19.2 -23% Internal sales eliminations $m -29.4 -47.3 TOTAL $m 9
Slide 20: Our work locations
For personal use only our work locations 20
Slide 21: For personal use only
For personal use only BBI, Dalrymple Sulphuric Bay Coal AcidTerminal, Plant, Ravensthorpe, Mackay (QLD)WA
Slide 22: EC
EC For personal use only sales revenue $m 657.5 576.0 289.3 239.8 109.6 FY04 FY05 FY06 FY07 FY08 BHP Billiton, RGP4, Port Hedland (WA) H1 H2 FY08 Sales Contribution Revenue 12% on FY07 Over $700m new contacts secured across FY08 Significant wins across all commodity sectors EC (including Iron Ore, O
Slide 23: EC division highlights
EC division highlights For personal use only Contracts done: Iron ore facility expansion; RIO, Dampier Port Upgrade Phase B (WA) Iron ore facility expansion/upgrade; BHP, RGP3 at Port Hedland (x2) & MAC (WA) Nickel facility construction; BHP, Ravensthorpe Project, Ravensthorpe (WA) Water treatment p
Slide 24: EC division highlights
EC division highlights For personal use only Strategic sourcing & capacity initiatives: Established Beijing supply office to source fabricated steel products & associated services; Seeking to establish ties with Chinese engineering companies for the provision of specialist engineering services on Au
Slide 25: For personal use only
For personal use only Darwin LNG Facility Maintenance Contract, Darwin, NT RTCA, HVO Maintenance & Shutdown Services, Singleton (NSW)
Slide 26: M&IS
M&IS For personal use only sales revenue $m 316.7 262.5 207.5 136.9 108.0 FY04 FY05 FY06 FY07 FY08 ConocoPhillips, Darwin LNG Maintenance Services, Darwin (NT) H1 H2 FY08 Sales Contribution Revenue 21% from FY07 Successful integration of the Ellavale Engineering acquisition MIS 32% High retention ra
Slide 27: M&IS division highlights
M&IS division highlights For personal use only Successful integration of Ellavale business (acquired Mar-07) New maintenance service contracts for Anglo Coal’s Dawson Mine (Moura, QLD) and BHP Billiton’s Ravensthorpe Nickel Operations (WA) Contract extensions at BHP Billiton’s Olympic Dam Operations
Slide 28: For personal use only
For personal use only BGMMC, Boddington Gold Mine Expansion, Boddington (WA)
Slide 29: MIE
MIE For personal use only sales revenue $m 76.0 71.8 26.0 6.6 FY05 FY06 FY07 FY08 BGMMC, Boddington Gold Mine Expansion, Boddington (WA) H1 H2 FY08 Sales Contribution Revenue 6% from FY07 MIE 8% Established operations to service WA market First major WA project undertaken at Boddington & major works
Slide 30: For personal use only
For personal use only PerthPerth Airport, Airport, PerthPerth, (WA) WA
Slide 31: Skystar
Skystar For personal use only sales revenue $m 19.2 14.8 14.7 7.3 3.1 Perth Domestic Airport, Perth (WA) FY04 FY05 FY06 FY07 FY08 H1 H2 FY08 Sales Contribution Skystar 1% Revenue 23% on FY07 Partial divestment to Toll Dnata (Toll/Emirates JV) Continues to grow & operate profitably Now focused on Aus
Slide 32: For personal use only
For personal use only Rio Tinto, DPU Phase B, Dampier (WA)
Slide 33: Our strategy
our strategy For personal use only earnings quality blue chip customers long term relationships larger & longer contracts Core growing recurring revenue base (M&IS) Business commodity diversification (O&G, coal, power & water) service expansion (MIE) geographic expansion (SA & N.Qld) strategic acqui
Slide 34: Outlook
outlook For personal use only Entered 2008/09 with a strong forward workload Project pipeline & client conviction continues to be long & strong Project timing and capacity constraints will continue to be the most significant challenge Continue to assess acquisition opportunities to support long term
Slide 35: 2008 annual results presentation
For personal use only 2008 annual results presentation 19 August 2008 Record Profit & Positioned for Growth in FY09 Rob Velletri Giles Everist Managing Director Chief Financial Officer
Slide 36: Appendix 1: Skystar divestment guidance
Appendix 1: Skystar divestment guidance For personal use only Background FY08 Skystar FY08 MND announced on 27-Dec-07 it had Reported Impact Normalised entered into an agreement to divest part of P&L Sales Revenue 954.0 954.0 its Skystar operations to Toll Dnata Airport EBITDA 109.4 4.9 104.5 Servic
Slide 37: Appendix 2: Key EC Contracts
Appendix 2: Key EC Contracts For personal use only Customer Project State Location Commodity Description Babcock & Brown Dalrymple Bay Coal Terminal – R8 & S8 Conveyors QLD Mackay Coal Structural, mechanical and electrical work for new Infrastructure (BBI) Infrastructure (BBI) stockpile conveyors (w
Slide 38: Appendix 3: Key M&IS Contracts
Appendix 3: Key M&IS Contracts For personal use only Customer Project State Location Commodity Description Alcoa Operations Labour Hire Services WA Kwinana, Pinjarra, Alumina Supply of tradespeople, operators and labourers Wagerup Anglo Coal Dawson Coal Handling Preparation Plant Maintenance QLD Mou
Slide 39: Appendix 4: Key MIE Contracts
Appendix 4: Key MIE Contracts For personal use only Customer Project State Location Commodity Description Ausenco Services Lady Annie Copper SXEW Project QLD Mount Isa Copper Electrical & instrumentation services for the construction of the process plant Babcock & Brown Dalrymple Bay Coal Terminal –
Slide 40: Appendix 5: About Monadelphous
Appendix 5: About Monadelphous For personal use only A leading Australasian engineering group providing services to the resources, energy and infrastructure sectors • Market capitalisation of A$1 billion-plus (S&P/ASX 200 constituent) • Revenue approaching A$1 billion • Approximately 4,000 people (e
Slide 41: Appendix 6: Our customers & partners
Appendix 6: Our customers & partners For personal use only 41
Slide 42: Appendix 7: Our business model
Appendix 7: Our business model For personal use only GEOGRAPHY INDUSTRY A s ia Po C we VI r W SW at N e r Oi SA T l& Ga /N Co s LD al Q Concept/Feasibility M in er A Commissioning al W s Construction Iro Fabrication n O Drafting re Design BACKWARD FORWARD INTEGRATION Pe INTEGRATION op Maintenance Sh
Slide 43: Appendix 8: Our competitive advantage
Appendix 8: Our competitive advantage For personal use only safety & wellbeing integrity teamwork achievement loyalty Values Monadelphous will: double in size every five years by Competitive being recognised as a truly great company to work for, to work To deliver safe and Advantage with, and invest
Slide 44: For more information
For personal use only For more information visit www.monadel.com.au or contact David Loch Investor Relations Manager Ph: (61 8) 9316 1255 Fax: (61 8) 9316 6272 email: dloch@monadel.com.au