Nrw Holdings Limited · ASX:NWH
Nrw — FY2012 Earnings Presentation
26 slides from Nrw's earnings presentation, Aug 24, 2012
Slide 1: Investor Presentation Full Year Results FY2012
For personal use only INVESTOR PRESENTATION FULL YEAR RESULTS FY2012
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE 2 For personal use only Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other c
Slide 3: Year in Review: Financial Highlights
YEAR IN REVIEW 3 For personal use only FINANCIAL HIGHLIGHTS • Revenue of $1.358 billion: 82% increase on FY11 • EBIT of $154.0 million: 138% increase on FY11 • EBIT Margin increased from 8.6% to 11.3% • NPAT of $97.1 million 136% increase on FY11 • NPAT Margin increased from 5.5% to 7.1% • Conservat
Slide 4: Year in Review: Strategic and Operational Highlights
YEAR IN REVIEW 4 For personal use only STRATEGIC AND OPERATIONAL HIGHLIGHTS • Awarded first oil and gas contract at Wheatstone Project • 60% of civil contracts negotiated with key clients • Work completed under 2 year Special Services Agreement signed with BMA (Queensland) • In-house concrete delive
Slide 5: Safety and Training Performance
SAFETY AND TRAINING 5 For personal use only PERFORMANCE Safety 8,000,000 40 The recently introduced company wide Safety Program, ‘A safe day, every day’ has increased 7,000,000 35 engagement and awareness across all levels of the business. 6,000,000 30 • Lost Time Injury Frequency Rate (LTIFR) curre
Slide 6: Our People
OUR PEOPLE 6 For personal use only NRW EMPLOYEES 2007–2012 5,000 4,500 • As of 30 June 2012 NRW employed a workforce in excess 4,000 of 4,592*. 3,500 • Continued focus on attraction and 3,000 retention of talent, including 2,500 project based and corporate 2,000 personnel. 1,500 • NRW’s Indigenous w
Slide 7: Key Financials
KEY FINANCIALS 7 For personal use only CONTINUED REVENUE CONTINUED EBITDA $m's $m's GROWTH 200 GROWTH 1,400 1,200 150 1,000 800 100 600 400 50 200 0 0 FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 1st Half 2nd Half 1st Half 2nd Half REDUCED NET DEBT / SHAREHOLDER EQUITY EQUITY $m's GRO
Slide 8: Civil Overview
CIVIL OVERVIEW 8 For personal use only • Revenue increase by 91% on FY2011 • Current workforce of 2,196 employees • Ongoing geographic diversification, particularly QLD (BMA and Dugald River) • 60% of civil contracts negotiated based on reputation with key clients • Awarded first major Oil & Gas pro
Slide 9: Civil – Projects Awarded in FY12
CIVIL – PROJECTS AWARDED IN FY12 9 For personal use only Major contracts and contract extensions awarded during the period included: • Main Line Rail Duplication – Fortescue • Herb Elliott Port (Anderson Point) – Fortescue • Dugald River Early Works – Minmetals Resources Ltd (MMG) • Special Services
Slide 10: Mining Overview
MINING OVERVIEW 10 For personal use only • Revenue increase by 69% on FY2011 • Current workforce of 1,643 employees • Commenced extensive pre-mining development works and Tailings Dam construction at Solomon Hub for Fortescue • Ongoing operations at Christmas Creek and Western Turner Syncline. • Per
Slide 11: Mining – Projects Awarded in FY12
MINING – PROJECTS AWARDED IN FY12 11 For personal use only Contracts awarded and extensions during the period include: • Solomon pre-mining development works – Fortescue • Solomon Tailings Dam - Fortescue • Extensions at Christmas Creek – Fortescue • 3 year extension Simandou contract – Simfer SA
Slide 12: Action Drill & Blast Overview
ACTION DRILL & BLAST OVERVIEW 12 For personal use only • Action Drill & Blast has experienced exceptional growth with a 307% increase in revenue to $113.1 million from $27.8 million in FY11. • Operates in 3 primary units, Mining, Civil and Coal in WA, SA, NT and QLD. • Expansion in the Queensland co
Slide 13: Action Drill & Blast FY12 Projects
ACTION DRILL & BLAST FY12 PROJECTS 13 For personal use only External projects undertaken and awarded during the period included: • Greenbushes – Talison Lithium • Christmas Creek (Drill Only) – Downer • South Middleback Ranges – HWE • Karara DSO – Karara Mining • Fortescue Rail - Summit North & Sout
Slide 14: Action Mining Services Overview
ACTION MINING SERVICES OVERVIEW 14 For personal use only • Action Mining Services provides repairs, refurbishment to all brands of earthmoving and mining equipment. A comprehensive mechanical repair and rebuild facility, sand blasting, painting, boiler making repair and fabrication services are offe
Slide 15: Action Mining Services Highlights
ACTION MINING SERVICES 15 For personal use only HIGHLIGHTS • Support vehicle sales outperformed, with units sold exceeding forecast budget by 64%. • The 200th Water Tank was invoiced in May with the 100th Service Module due to come off the production line in August 2013. • Staff increased by 17% to
Slide 16: Project Locations
For personal use only PROJECT LOCATIONS 16
Slide 17: Financial Results FY2012
17 For personal use only FINANCIAL RESULTS FY2012
Slide 18: Operating Performance
OPERATING PERFORMANCE 18 For personal use only FINANCIAL 1HY12 2HY12 FULL YEAR FY12 FY11 Change PERFORMANCE ($m’s) SALES REVENUE Civil 323.9 407.8 731.7 382.6 91% Mining 246.5 295.7 542.2 321.7 69% Action Drill & Blast 50.9 62.2 113.1 27.8 307% Action Mining Services 21.0 25.6 46.6 28.1 66% Other *
Slide 19: Divisional Performance
DIVISIONAL PERFORMANCE 19 For personal use only DIVISIONAL NRW CIVIL NRW MINING ACTION ACTION PERFORMANCE ($m’s) CONTRACTING SERVICES DRILL & BLAST MINING SERVICES FY2012 Revenue 731.7 542.2 113.1 46.6 Segment Profit 81.6 64.0 18.7 4.6 Return on revenue 11% 12% 17% 10% FY2011 Revenue 382.6 321.7 27.
Slide 20: Balance Sheet
BALANCE SHEET 20 For personal use only FINANCIAL POSITION ($m’s) FY12 FY11 FY10 FY09 FY08 Working Capital 15.0 36.9 30.1 26.4 56.4 Non-Current Assets 391.1 293.0 178.8 156.7 165.5 Non-Current Liabilities (16.2) (10.2) (0.4) (0.6) (12.3) 389.9 319.6 208.5 182.5 209.6 Funded by: Cash / (overdraft) 138
Slide 21: Cash & Return on Capital Employed
CASH & RETURN ON CAPITAL EMPLOYED 21 For personal use only $m’s $m's % 200.0 180.0 450 45% 160.0 400 40% 140.0 350 35% 120.0 300 30% 100.0 250 25% 80.0 200 20% 60.0 150 15% 40.0 100 10% 20.0 50 5% - - 0% FY07 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Operating Cash Flow Net Fixed Assets Retu
Slide 22: Capital Expense & Funding
CAPITAL EXPENSE & FUNDING 22 For personal use only CAPITAL FY12 FY11 FACILITY ($m’s) Limit Available EXPENDITURE ($m’s) NRW Civil Division 16.6 6.9 NRW Mining Division 105.5 120.4 Bonding 208 73.6 Action Drill & Blast 15.1 7.5 Asset Funding 495 260.7 Action Mining Services 0.6 0.6 Working Capital 50
Slide 23: Order Book & Revenue Run Off
ORDER BOOK & REVENUE RUN OFF 23 For personal use only $2.0bn $0.7bn $0.3bn FY13 FY14 FY15 & beyond Total order book at start: Mining Services $1.1bn $0.60bn $0.3bn Civil Contracting $0.7bn $0.06bn Drill & Blast $0.2bn $0.04bn • Order book as at 30 June 2012 is $2.0 billion comprising; Mining Service
Slide 24: Tender Pipeline & Active Tenders
TENDER PIPELINE & ACTIVE TENDERS 24 For personal use only Strong tender activity and good visibility with $13.4 billion in the future tender pipeline across Australia. Current active tenders/framework $2.31bn Civil WA $3.04bn projects approximately $4.6 billion Civil Qld comprised of: Drill & Blast
Slide 25: FY13 Outlook
FY13 OUTLOOK 25 For personal use only • NRW is confident of strong growth with an order book of $2 billion including secured revenue for FY13 of $1.3 billion. The Company is targeting growth in both revenue and earnings of at least 15-20% in FY13. • We expect to secure further work in Queensland and
Slide 26: FY13 Outlook
FY13 OUTLOOK 26 For personal use only • Action Drill & Blast will continue its strong growth profile through its existing client base in WA and Queensland, as well as capitalising on new contract opportunities throughout Australia. • Action Mining Services’ performance will be influenced by investme