Monadelphous Group Limited · ASX:MND
Monadelphous — FY2006 Earnings Presentation
18 slides from Monadelphous's earnings presentation, June 2006
Slide 1: 2006 annual results
Monadelphous 2006 annual results another outstanding year of growth
Slide 2: Highlights
highlights Record Results Sales over $500m Net Profit After Tax (NPAT) 76% Earnings Per Share (EPS) 72% Dividends 71% Over $500m new contracts won since December 2005 Capacity increased; workforce over 3,000 >50% Health and Safety performance improved; TCIFR 23% Strong competitive position in boomin
Slide 3: Financial highlights
financial highlights Jun 06 Jun 05 % Change Sales Revenue $532.0m $390.6m +36% EBITDA $49.0m $29.0m +68% Net Profit After Tax $29.4m $16.7m +76% Earnings Per Share 36.5 c 21.1 c +72% Total Dividends 33.00 cps ff 19.25 cps ff +71% Operating Cash Flow $66.8m $24.0m +179% Net Cash $61.6m $22.2m +177% C
Slide 4: Strong revenue & profit growth
strong revenue & profit growth sales revenue $m profit after tax $m 532.0 29.4 CAGR 32.6% 390.6 CAGR 54.0% 16.7 243.7 220.8 154.7 8.5 129.6 7.1 4.8 3.4 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
Slide 5: High earnings & dividend growth
high earnings & dividend growth 36.50 33.00 EPS CAGR 50% 24.00 21.15 19.25 14.25 11.11 9.55 6.51 7.50 6.25 4.89 3.50 2.38 2001 2002 2003 2004 2005 2006
Slide 6: Record operating cash flow
record operating cash flow EBITDA $m cashflow from operations $m 66.8 49.0 29.0 24.0 15.3 16.1 12.0 12.4 13.1 9.9 6.6 3.4 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
Slide 7: Buoyant market, strong margins
buoyant market, strong margins EBITDA margin % profit after tax margin % 9.2% 5.5% 7.7% 7.7% 7.3% 7.4% 4.3% 6.3% 3.9% 3.1% 2.9% 2.6% 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 EBITDA margin 1.8pp to 9.2% PAT margin 1.2pp to 5.5%
Slide 8: Exceptional return on equity
exceptional return on equity 47.3% 36.1% 20.7% 21.7% 17.2% 13.2% 2001 2002 2003 2004 2005 2006 ROE at 47.3% historically highest level Five year average return 35.2%pa
Slide 9: Strong shareholder returns
strong shareholder returns $8.00 $7.00 5 year share price history $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Total shareholders returns: 1 year 88% 5 years 1226% (68.0%p.a)
Slide 10: Safety performance
safety performance total case injury frequency rate (TCIFR) 60 40 20 0 2001 2002 2003 2004 2005 2006 TCIFR 23% from previous year Successful implementation of injury reduction initiatives
Slide 11: Increased workforce
increased workforce employee numbers 3142 1740 1539 1376 1198 Jun - 02 Jun - 03 Jun - 04 Jun - 05 Jun - 06 Right people recruitment and retention strategy a key focus Overseas recruitment for professional staff ongoing Expanded graduate program Professional development and skill training programs
Slide 12: Maintenance & industrial services division
maintenance & industrial services division sales revenue $m 242.7 150.8 111.1 2004 2005 2006 Revenue 61% from previous year Full year revenues from previous financial year contract wins Rapidly growing Queensland market New major contract wins Strong performances across all operations of the divisio
Slide 13: M&IS division highlights
M&IS division highlights 100% of major service contracts retained Award & establishment of new service contracts : Comalco’s Boyne Smelter, Gladstone, QLD Incitec Pivot shutdown, Gibson Island, QLD Rio Tinto Iron Ore' s Tom Price mine, WA Rio Tinto’s Cape Lambert operations, WA Important oil and gas
Slide 14: Engineering construction division
engineering construction division sales revenue $m 289.3 239.8 109.6 2004 2005 2006 Revenue 21% from previous year $500m new contracts secured since December 2005 Recorded over two million manhours lost time injury free during the year
Slide 15: EC division highlights
EC division highlights Successful progress of major contracts: Iron ore stockyards expansion; Rio Tinto Iron Ore Dampier Port Upgrade project, WA Sulphuric acid plant construction; BHP Billiton' s Ravensthorpe Nickel Project, WA Stockpile capacity extension; BHP Billiton Mitsubishi Alliance (BMA) Ha
Slide 16: EC division highlights
EC division highlights $500m of new major contracts secured: Largest ever contract won ($180m) with BHP Billiton Iron Ore for Rapid Growth Project 3 (RGP3),port expansion at Nelson Point and Finucane Island, WA BHP Billiton' s Yabulu Nickel Refinery Extension Project, QLD Rio Tinto Iron Ore Dampier
Slide 17: Our strategy
our strategy Maximise core business – concentrate on earnings quality Blue chip customers & long term relationships Larger and longer contracts Growing recurring revenues Leverage capability further into oil and gas, power and water sectors Grow electrical and instrumentation services business Conti
Slide 18: Outlook
outlook Strong and high quality workload expected to deliver further revenue and earnings growth in 2006/07 Core market conditions expected to be strong for two to three years Growth dependent on project timing and industry capacity constraints Focus on earnings quality given continuing skills short