Monadelphous Group Limited · ASX:MND
Monadelphous — H1 2015 Earnings Presentation
21 slides from Monadelphous's earnings presentation, Feb 17, 2015
Slide 1: 2015 Half Year Results
2015 Half Year Results For personal use only Tuesday 17 February 2015
Slide 2: Company Profile
Company Profile For personal use only Monadelphous Group Limited (ASX:MND) is a S&P/ASX 100 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australasia. Market Earnings Dividends People Revenue capitalisation per
Slide 3: Group Highlights
Group Highlights For personal use only • Sales revenue, $1,052m, down 17.6% • NPAT $60.7m, down 23.4%^ • EPS 65.4c, DPS 46.0c • Cashflow from operations of $56.4m, conversion rate of 85% • Awarded ~$450m of new contracts and contract extensions • Strong safety performance – 8% improvement • Cost red
Slide 4: Contract Activity
For personal use only 4 Contract Activity
Slide 5: Sales Revenue Analysis
Sales Revenue Analysis For personal use only End Customer Market Service Market Geography 5
Slide 6: Contracts Secured
Contracts Secured For personal use only $450m new contracts 6
Slide 7: Safety
Safety For personal use only Injury Frequency rates* • Record safety performance – TCIFR improved 8% • Continuing focus on frontline safety leadership contributed to the improvement • Further development of the Company’s safety management system undertaken. 7
Slide 8: People
People For personal use only Employee Numbers* Employees by Division *Comparatives rebased to exclude Skystar employees • Employee numbers reduced in line with slowing construction activity • Improved availability of labour contributing to greater workforce productivity • High levels of key talent r
Slide 9: Financial Performance
Financial Performance For personal use only Unit HY15 HY14^ Change Sales Revenue $m 1,052.0 1,276.7 (17.6%) EBITDA^# $m 95.1 126.5 (24.8%) EBITDA Margin^# % 9.0 9.9 (0.9pp*) NPAT^ $m 60.7 79.2 (23.4%) NPAT Margin^ % 5.8 6.2 (0.4pp*) EPS^ cps 65.4 86.3 (24.3%) Operating Cash Flow $m 56.4 78.1 (27.8%)
Slide 10: Financial Position and Funding
Financial Position and Funding For personal use only Maintained strong balance sheet HY15 HY14 Change $m $m Cash at Bank 212.4 234.6 (9.5%) Net Cash Position 184.4 188.1 (2.0%) (Cash less interest bearing loans and borrowings) Capital Expenditure 1.1 2.8 (61.3%) (Cash and Hire Purchase) Bank Guarant
Slide 11: Historical Performance
Historical Performance For personal use only ^Underlying basis. Refer to Slide 18 for details. # Comparatives restated to reflect a change in accounting policy. Refer to slide 19 for details. *2012 comparative excludes sale of Norfolk Group Limited shares. Refer to slide 18 for details. 11
Slide 12: Cash Flow Performance
Cash Flow Performance For personal use only Operating Cash Flow Cash Flow Conversion • Maintained strong balance sheet, solid cash flow and robust cash flow conversion • Bank facilities renewed for a further two years, with improved pricing and terms and conditions. ^Underlying basis. Refer to Slide
Slide 13: Net Profit After Tax Analysis
Net Profit After Tax Analysis For personal use only NPAT Waterfall ($m) ^Underlying basis. Refer to slide 18 for reconciliation. 13
Slide 14: Engineering Construction
Engineering Construction For personal use only Highlights End Customer Sales Revenue ($m) • $250m of new contracts • Secured work in new service markets • Expanded presence in water infrastructure. Major Contract Activity • APLNG, Roma, Queensland • Rio Tinto, Cape Lambert Port B, WA • JKC, Ichthys
Slide 15: Maintenance and Industrial Services
Maintenance and Industrial Services For personal use only Highlights End Customer Sales Revenue ($m) • Achieved revenue growth in a challenging market • Awarded $200m contract extension • Successful completion of major LNG shutdowns. Major Contract Activity • Chevron-operated Gorgon Project, Barrow
Slide 16: Australian Market Conditions
Australian Market Conditions For personal use only Total mining capex (A$b) Total energy capex (A$b) Source: BIS Shrapnel – Mining Investment by Commodity - Total New Fixed Capital Expenditure Source: BIS Shrapnel – Mining Investment by Commodity - Total New Fixed Capital Expenditure Constant 2011/1
Slide 17: Outlook
Outlook For personal use only • Mining and minerals customers focused on optimising production and reducing costs • Oil and gas sector impacted by decline in oil price • Preferred contractor status achieved on new construction work • Maintenance prospects remain positive in the oil and gas sector •
Slide 18: Notes to Financials
Notes to Financials For personal use only Non-IFRS Financial Information 31 December 2014 $’000 31 December 2013 $’000 Monadelphous Group Limited results are reported under Restated# International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Com
Slide 19: Notes to Financials (continued)
Notes to Financials (continued) For personal use only # Restatement of Comparatives – Change in Accounting Policy As disclosed in the Financial Statements for the year ended 30 June 2014, the Group has elected to recognise the excess of the research and development tax offset over the statutory rate
Slide 20: Important Notice
Important Notice For personal use only Disclaimer Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited or any other
Slide 21: For more information
For more information For personal use only Rachel Cooper, Investor Relations Manager Telephone: +61 (08) 9315 7429 Email: rcooper@monadel.com.au www.monadelphous.com.au