Emeco Holdings Limited · ASX:EHL
Emeco — ASX Small to Mid Caps New York Conference (March 2010)
25 slides from Emeco's conference presentation, Mar 4, 2010
Slide 1: ASX Small to Mid Caps New York Conference
For personal use only ASX Small to Mid Caps New York Conference Keith Gordon Managing Director
Slide 2: Company Overview
For personal use only Company Overview
Slide 3: What is Emeco?
What is Emeco? For personal use only Quick facts… Provision of earthmoving equipment solutions to blue-chip miners around the globe Large equipment range from Caterpillar, Komatsu, Hitachi, Volvo and Liebherr Operations across Australia, Indonesia and North America Divisions: Dry-hire Rent
Slide 4: Why do Customers choose Emeco?
Why do Customers choose Emeco? For personal use only Reasons: Customer Constraint : Value add: Long delivery times for new equipment – and varies by asset class Availability Limited expertise to purchase second hand machines Improve Capital Change in optimal fleet configuration over project Fl
Slide 5: Asset profile
Asset profile For personal use only Independent supplier of well-maintained, best-in-class equipment 35 tonne 50 tonne 100 tonne 150 tonne 200 tonne 250 tonne 300 tonne Small construction Super mines Truck 15 tonne 25 tonne 35 tonne 45 tonne 60 tonne 100 tonne 150 tonne Dozer Small construction Larg
Slide 6: Where are we today?
Where are we today? For personal use only Current progress… Bolster corporate management team Decisive action taken on underperforming businesses Generation of cash through disposal of underperforming assets Asset deployment currently around 78% Focus on improving utilization in core ope
Slide 7: Markets & Drivers
For personal use only Markets & Drivers
Slide 8: Rental Fleet Utilization
Rental Fleet Utilization For personal use only Improving utilization in 1H10… 100 % 95 % 90 % 85 % 83% Avg 78% Avg 80 % 75 % 70% Avg 68% Avg 70 % 65 % 60 % 55 % 50 % - Utilisation by A$ value 45 % 40 % Apr-08 Apr-09 Dec-07 Jun-08 Dec-08 Dec-09 Aug-08 Jun-09 Aug-09 Feb-08 Feb-09 Feb-10 Oct-08 Oct-09
Slide 9: Customer exposure
Customer exposure For personal use only Focusing on long-term supplier relationships with blue-chip customers ~70% revenue from large blue-chip customers Evolution of customer type Customer profile trending toward large mining houses 100% Other Contractor Mix of miners and contractors demonstr
Slide 10: Leveraged to the mining cycle
Leveraged to the mining cycle For personal use only Focus on increasing exposure to low cost producers in key commodities Thermal coal volumes forecast to increase in New South Wales, Commodity exposure Australia and Kalimantan, Indonesia Iron Other, Exposure to West Australian Iron ore and Quee
Slide 11: Performance
For personal use only Performance
Slide 12: Financial Performance
Financial Performance For personal use only Focus on improving ROC and EBIT growth Revenue & EBIT performance Balance sheet composition (31 Dec 2009) A$M 700 General working capital Revenue EBIT 600 Sales & Parts inventory 500 Rental plant 400 Intangibles Other assets 300 Net debt 200 Other liabilit
Slide 13: Share Performance
Share Performance For personal use only Indexed performance Emeco 52-week share price 400 1.20 EHL.ASX XJO.ASX XNJ.ASX 350 1.00 300 0.80 % 250 0.60 200 0.40 150 0.20 100 0.00 Over the past 12 months EHL share price Substantial shareholders: has tracked above the ASX 200 and ASX Franklin Resour
Slide 14: Strategy & Outlook
For personal use only Outlook Strategy &
Slide 15: Strategy
Strategy For personal use only Immediate focus to improve core business while long-term strategic plan is finalised Medium to Short-Term Long-Term Exit Europe Long term strategic plan under development Exit Central Appalachian coal and restructure Focus will be on long term returns to North
Slide 16: Outlook
Outlook For personal use only Emeco’s performance is highly leveraged to mining recovery currently underway Both mining development and production activity undergoing positive step-change as business confidence improves Volumes Thermal coal, coking coal and iron ore volumes growing rapidly in As
Slide 17: Questions
For personal use only Questions For further information visit our website at www.emecogroup.com
Slide 18: Company Contact Details
Company Contact Details For personal use only Thank you for your interest in Emeco. Further investor enquiries should be directed to: Keith Gordon Managing Director & CEO Stephen Gobby CFO Graham Borgerson Investor Relations +61 8 9420 0222 www.emecogroup.com
Slide 19: Appendix
For personal use only Appendix
Slide 20: Organic Growth Opportunities
Organic Growth Opportunities For personal use only End-market volumes forecast to increase Source: ABARE Commodity Outlook, (CAPP) Canadian Association of Petroleum Producers Crude Oil Forecast 2009-2025, Ministry of Energy and Mineral Resources – Republic of Indonesia 20
Slide 21: Financial Overview
Financial Overview For personal use only Operating Profit statement, 6 month evolution to 31 December 2009 (A$M) For full financial information visit our website at www.emecogroup.com/view/investors-centre 21
Slide 22: Financial Overview
Financial Overview For personal use only Cash Flow, 6 month evolution to 31 December 2009 (A$M) Note: EBITDA excludes non-cash items for purpose of cash flow 22
Slide 23: Financial Overview
Financial Overview For personal use only Balance Sheet at 31 December 2009 (A$M) A$ Millions Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 A$ m A$ m A$ m A$ m A$ m General working capital 83 93 95 60 63 Sales & Parts inventory 203 144 167 135 113 Rental plant 557 571 643 623 620 Intangibles 223 224 235 216 2
Slide 24: Disclaimer
Disclaimer For personal use only Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.
Slide 25: Company Contact Details
Company Contact Details For personal use only Thank you for your interest in Emeco. Further investor enquiries should be directed to: Keith Gordon Managing Director & CEO Stephen Gobby CFO Graham Borgerson Investor Relations +61 8 9420 0222 www.emecogroup.com
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