Mastermyne Group Limited · ASX:MYE
Mastermyne — FY2018 Earnings Presentation
18 slides from Mastermyne's earnings presentation, Aug 21, 2018
Slide 1: FY18 Full Year Results Presentation
FY18 FULL YEAR RESULTS PRESENTATION AUGUST 2018 Tony Caruso – CEO & Managing Director Liz Blockley – Chief Financial Officer www.mastermyne.com.au
Slide 2: Overview
Overview • Delivering significant revenue growth through new projects and customers • Revenue increased 62% from PCP to $201.7 million in FY18 • Focused on managing costs tightly as we grew delivering stronger EBITDA margins • Successfully resourced new projects while achieving improvement in our sa
Slide 3: New projects and fleet underpin a strong financial result
New projects and fleet underpin a strong financial result • Revenue $201.7 million and Net $AUD (000's) FY18 FY17 Change(%) Profit $5.6 million Total Revenue 201,719 124,162 62.5% • EBITDA $16.3 million (8.1% Statutory EBITDA 16,344 4,770 242.6% margin), up from $4.8 million EBITDA % 8.1% 3.8% 110.9
Slide 4: Strong cash generation is reducing debt quickly
Strong cash generation is reducing debt quickly • Net Debt reduced from $10.0 million in pcp to $3.5 million • Completed $6.0 million Placement in Debt Profile September 2017 $20 • Millions (AUD) $3.0m Cash Advance facility will be $15 repaid by December 2018 $10 • Restructured working capital facil
Slide 5: Safety outcomes improved through a period of significant growth
Safety outcomes improved through a period of significant growth • Injury frequency rates • NSW mining division achieved decreased from 18.3 to 6.3 over full year of operations with no the FY2018 year recordable injuries • 12 of 16 projects were • Maintained strong HSEQ recordable injury free for the
Slide 6: New contracts are improving margin outlook
New contracts are improving margin outlook • Cycling through contracts negotiated in the low point of Mastermyne Mining Change the cycle $AUD ($’000) FY18 FY17 (%) • New contracts supporting Revenue 174,382 92,400 88.7% stronger margins EBITDA 16,055 6,858 134.1% EBIT 9,356 1,444 547.9% • Refocused
Slide 7: Successfully resourced the growth opportunities throughout the year
Successfully resourced the growth opportunities throughout the year • Current projects fully resourced with labour and equipment • Starting to see tightening in the labour market • Reactivating resourcing strategies from previous strong cycles • Cost of labour has stabilised following an average 10%
Slide 8: High quality order book supported by robust tender pipeline
High quality order book supported by robust tender pipeline • Order Book $280 million, $185 2014 2015 2016 2017 2018 2019 2020 QLD million to be delivered in FY19 Broadmeadow Conveyors • Tendering pipeline over $1.9 DBCT Scaffolding Services billion, $800 million in core Anglo Moranbah Region Umbrel
Slide 9: Whole of Mine opportunities present a step change for the business
Whole of Mine opportunities present a step change for the business • Progressing two late stage Whole of Mine opportunities in NSW with the first expected to mobilise in the 2nd quarter FY19 • BFS study for Stanmore’s Isaac Plains Underground Coal Mine will be completed in late September with final
Slide 10: Strong market outlook is driving increased demand for our services
Strong market outlook is driving increased demand for our services • Early stages of a stronger cycle supporting a positive outlook • New disaggregated industry dynamic with emerging new players creating more opportunities • Expanding underground sector as new projects come on line over the next 12
Slide 11: Mastermyne is in an excellent position to deliver another year of strong growth
Mastermyne is in an excellent position to deliver another year of strong growth • Delivering significant revenue growth through new projects and customers • Revenue increased 62% from PCP to $201.7 million in FY18 • Focused on managing costs tightly as we grew delivering stronger EBITDA margins • Su
Slide 12: Appendices
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Slide 13: Corporate Overview
Corporate Overview Capital Structure Substantial Shareholders Share price as at 20 Aug 2018 ($) 1.52 Andrew Watts 12.13% Shares on issue (m) 101.1 Kenneth Kamon 10.76% Market cap ($m) 153.7 Darren Hamblin 9.55% Net Debt as at 30 June 2018 ($m) 3.5 Paradice Investment Management 8.39% Enterprise valu
Slide 14: Mastermyne FY18 Income Statement
Mastermyne FY18 Income Statement $AUD (000's) FY18 FY17 Change(%) Total Revenue 201,719 124,162 62.5% Statutory EBITDA 16,344 4,770 242.6% EBITDA % 8.1% 3.8% 110.9% Statutory profit/(loss) before tax 8,208 (2,881) 384.9% Tax benefit/(expense) (2,620) 771 (439.8%) Statutory profit/(loss) after tax 5,
Slide 15: Mastermyne FY18 Cash Flow
Mastermyne FY18 Cash Flow $AUD (000's) FY18 FY17 EBITDA (Statutory) 16,344 4,770 Movements in Working Capital (4,713) 462 Non cash items (87) 704 Interest Costs (635) (576) Income tax receipts / (payments) (578) 92 Net Operating Cash Flow 10,330 5,452 Net Capex (includes intangibles) (9,480) (4,331)
Slide 16: Mastermyne FY18 Balance Sheet
Mastermyne FY18 Balance Sheet Jun-18 Jun-17 $AUD (000's) Assets Cash and cash equivalents 1 1 Trade and other receivables 43,427 29,454 Inventories 2,973 2,684 Current Tax assets 0 202 Total current assets 46,401 32,341 Deferred Tax asset 8,791 9,285 Property, plant and equipment 21,053 18,745 Intan
Slide 17: Disclaimer and Important Notice
Disclaimer and Important Notice The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation
Slide 18: Contact
CONTACT www.mastermyne.com.au Information for Investors / Analysts: Tony Caruso – Managing Director: (07) 4963 0400 Liz Blockley– CFO /Company Secretary: (07) 4963 0400 Mastermyne Group Limited www.mastermyne.com.au Phone: (07) 4963 0400 Delivering Customer Excellence | Innovation and Continuous Imp