Emeco Holdings Limited · ASX:EHL
Emeco — Goldman Sachs 2012 Mining Services Conference
24 slides from Emeco's conference presentation, Nov 1, 2012
Slide 1: Goldman Sachs 2012 Mining Services Conference
For personal use only Goldman Sachs 2012 Mining Services Conference Keith Gordon, Managing Director & Chief Executive Officer
Slide 2: Presentation Overview
Presentation Overview For personal use only Business & Operating Overview Financial Overview Strategy & Outlook
Slide 3: Business & Operating Overview
For personal use only Kalgoorlie, Western Australia Business & Operating Overview
Slide 4: Rental in the Mining Production Phase
Rental in the Mining Production Phase Customer requirements vary but Emeco’s solution is used at all stages of mine life For personal use only Emeco’s Mine Development Overburden Production Mining cycle 7% 20% 73% leverage: Customers Flexibility Equipment Mechanical Capital Avoid Residual Needs: Ava
Slide 5: Geographic & Commodity Diversification
Geographic & Commodity Diversification Well diversified revenue streams from multiple regions and commodities with fleet redeployment opportunities For personal use only Canada Australia Indonesia Chile Oil sands Thermal Coal Thermal Coal Copper Coal Gold Gold Gold Gold Metallurgical Coal Iron Ore
Slide 6: Global Fleet Profile
Global Fleet Profile Production focused fleet, suitable for variety of customers across markets For personal use only Fleet mix proportions by WDV: Fleet reconfiguration complete with incremental fleet growth driven by mining customer needs Emeco’s large and small mining fleets commonly used across
Slide 7: Customer Strategy
Customer Strategy Targeting customers in each market which align with Emeco’s strategic objectives For personal use only Customer objectives by region: Australia Canada Indonesia Targeting customers requiring Direct relationship with oil Focus on miners with fleets on long-term fully sands companies
Slide 8: Managing the Business Through the Cycle
Managing the Business Through the Cycle Range of business levers available to ensure Emeco’s financial health across mining cycles For personal use only • No capital commitment outside FY13 growth capex announced Growth Capital: • Flexibility to change investment plans according to outlook • High co
Slide 9: Global Business Snapshot
Global Business Snapshot For personal use only Australia: Customers focused on improving cost & productivity Global utilisation % Shorter contract tenure Rate structure & maintenance responsibilities 75% Increasingly competitive environment Emeco very active in pursuing new projects in cautious envi
Slide 10: Financial Overview
For personal use only Financial Overview
Slide 11: Financial summary
Financial summary Strong performance in Australia with offshore businesses picking up steam For personal use only FY12 FY11 Var % REVENUE 565.2 502.5 12.5% EBITDA 261.7 223.3 17.2% EBIT 126.0 101.2 24.5% NPAT 71.1 56.0 27.0% ROC % 13.2% 11.3% 16.7% OP. CASHFLOW 214.3 159.7 34.2% GEARING 1.47 1.38 -
Slide 12: Cash Flow & Capital Expenditure
Cash Flow & Capital Expenditure Strong operating cash flow provides flexibility For personal use only Free Cash Flow Generation (ex Growth Capex & Dividends) EBITDA performance delivered 34.2% growth in operating cash flow in FY12 Working capital efficiency remains a focus +$100M available cash flow
Slide 13: Balance Sheet & Capital Management
Balance Sheet & Capital Management Balance sheet provides certainty and flexibility For personal use only Emeco’s Debt Maturity Profile Strong balance sheet with quality assets and secure debt portfolio Bank debt refinancing and USPP provides average maturity profile of ~5 years Gearing towards bott
Slide 14: Return on Capital
Return on Capital Quality in the earnings growth For personal use only ROC, ROFE & INVESTED CAPITAL Strategy has focused on: Exiting low returning assets/businesses Invest in production focused fleet Target highly productive customers Leverage fixed cost and goodwill Australia – incremental investme
Slide 15: Strategy & Outlook
For personal use only Strategy & Outlook
Slide 16: How has the business changed?
How has the business changed? Business now fitter, more sustainable and well positioned for the future For personal use only Financial performance: Strategy translating to improved earnings and returns Non-core businesses: Exited non-core businesses releasing underperforming capital & earnings drag
Slide 17: Strategic focus
Strategic focus For personal use only Improving our core businesses Executing on organic growth Contract renewals & project sites Securing contracts for new fleet into a priority for Australia Chile over FY13 Build on new customer Consolidate contract wins in relationships in Canada & Indonesia Indo
Slide 18: Emeco Outlook
Emeco Outlook A diversified portfolio to provide benefits in the year ahead For personal use only Changing environment in Australian market with focus on operating costs by customers - Recent contract wins in gold and iron ore - Renewed large contracts with coal customers late in 2H12 - Number of co
Slide 19: Questions
For personal use only <INSERT PICTURE> Hitachi EX3600, Queensland Questions
Slide 20: Further Information
Further Information For personal use only Thank you for your interest in Emeco Further investor enquiries should be directed to: Keith Gordon CEO Stephen Gobby CFO emecogroup.com
Slide 21: Appendices
For personal use only Appendix Hitachi EX3600, Queensland Appendices
Slide 22: Detailed Financials
Detailed Financials For personal use only Cash flow Profit & Loss A$ Millions FY11 FY12 A$ Millions FY11 FY12 Var A$ m A$ m Operating Operating % Ca s h from opera ti ons 196.3 252.5 Revenue 502.5 565.2 12.5 Interes t & Borrowing cos ts (22.6) (24.3) EBITDA 223.3 261.7 17.2 Income tax payments (14.0
Slide 23: Geographic Segments
Geographic Segments For personal use only Australia Indonesia Canada Operating Results Operating Results Operating Results FY11 FY12 Var % FY11 FY12 Var % FY11 FY12 Var % Revenue 327.2 383.3 17.1% Revenue 44.6 49.9 12.0% Revenue 64.9 67.2 3.5% EBITDA 185.3 215.7 16.4% EBITDA 21.0 25.2 19.9% EBITDA 3
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.
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