Nrw Holdings Limited · ASX:NWH
Nrw — FY2008 Earnings Presentation
21 slides from Nrw's earnings presentation, Aug 29, 2008
Slide 1: Investor Presentation Full Year 2008 Result
For personal use only Investor Presentation Full Year 2008 Result 29 August 2008 Jeff McGlinn, CEO - Julian Pemberton, COO - Gino Chiarelli, CFO
Slide 2: Agenda
For personal use only Agenda Highlights People and Safety Business Review Financial Summary Balance Sheet Cash Flow Strong Industry Growth Outlook Appendix – Additional Information 2
Slide 3: Financial and Operational Highlights
Highlights Financial and Operational Highlights For personal use only Pro Forma Revenue of $471.2m 70% increase on FY2007 Pro Forma Pro Forma EBIT of $66.1m 97% increase on FY2007 Pro Forma Pro Forma NPAT of $41.4m 106% increase on FY2007 Pro Forma Pro Forma Return on Equity of 35.3% Fully
Slide 4: People and Safety
For personal use only People and Safety 2500 4 At 30 June 2008 NRW employed 808 staff together with a significant 3.5 number of contractors 2000 3 Continue to have very high employee retention rates 2.5 Man Hours (000) 1500 Approximately 10% of total LTIFR 2 employees are indigenous with a 100
Slide 5: People and Safety: New Appointments
People and Safety New Appointments For personal use only Willie Rooney – Managing Director Civil & Mining (Commencing October 2008) 30 years experience in Civil and Mining contracting. Degree in Civil Engineering. Educated in Northern Ireland, worked in UK & South Africa, migrated to Australia
Slide 6: Civil Projects Update
Civil Projects Update New Contracts For personal use only Project name Description 44km Cloud Break to Christmas Creek Rail Christmas Creek rail extension on Extension schedule FMG Contract includes: Rail earthworks, roadworks, bridges and drainage Brockman 4 Brockman 4 Expansion on schedule R
Slide 7: Mining Services Update
For personal use only Mining Services Update Project name Description Hope Downs Mining Drill and blast, excavation, haulage Rio Tinto and waste dump management services In-pit works including pre-development pit establishment, waste pre-stripping, waste cutback and remnant ore mining Cloud Brea
Slide 8: Promac / Action Mining
For personal use only Promac / Action Mining Promac Update Supply of Chinese radial tyres in the larger sizes (100 tonne class truck +) is expected to contribute to increasing sales in FY2009 Promac’s machinery sales (rollers, service and water trucks) have continued demand. Electrical products
Slide 9: Financial Summary: Pro Forma revenue by division
Financial Summary Pro Forma revenue by division For personal use only FY2007 FY2008 FY2008 Pro Forma $m Pro Forma Actual Pro Forma Actual Prospectus Forecast NRW Civil Contracting 162.0 336.8 305.7 NRW Mining Services 77.8 107.2 91.4 Promac 28.6 21.2 39.6 Action Mining 20.7 26.2 26.0 Other / Elimina
Slide 10: Financial Summary: Pro Forma Financials
Financial Summary Pro Forma Financials For personal use only FY2007 FY2008 FY2008 Pro Forma $m unless stated Pro Forma Actual Pro Forma Actual Prospectus Forecast Revenue 277.6 471.2 440.4 EBITDA 45.2 84.2 85.4 EBITDA margin (%) 16.3% 17.9% 19.4% Depreciation (11.6) (18.1) (21.2) EBIT 33.6 66.1 64.2
Slide 11: Balance Sheet
Balance Sheet Summary Balance Sheet For personal use only $m unless stated 30 Jun 08 Cash 3.3 Total debt of $98.1m (net debt of $94.8m) PPE 123.4 Other assets 185.0 Trade finance + insurance funding Total assets 311.7 $5.3m Current liabilities Hire purchase liabilities of $78.3m (3-5 Interest
Slide 12: Capital Expenditure
Capital Expenditure 70 For personal use only 61.1 59.0 FY2008 capital expenditure of $59.0m. 60 $4.8m funded by cash. 50 $53.2m funded by hire-purchase 40.8 liabilities and $1.0m funded by trade 40 finance. $m 51.0 52.4 30 Capital expenditure primarily relates 36.4 to: 20 Simandou project
Slide 13: Operating Cash Flow
Operating Cash Flow Pro Forma Operating Cash Flow For personal use only FY2007 FY2008 FY2008 Pro Forma $m Pro Forma Actual Pro Forma Actual Prospectus Forecast EBIT 33.6 66.1 64.2 Depreciation and amortisation 11.6 18.1 21.2 EBITDA 45.2 84.2 85.4 Working capital movements (0.2) (69.5) (11.4) Cash fl
Slide 14: Strong Industry Growth
Strong Industry Growth Key clients continue to increase investment and announce iron ore For personal use only production increases in WA and offshore Current production: 175 mtpa Current production: 22 mtpa Current production: 111 mtpa (12 months to June 2008) for CY08 (target) (FY2008) Forecast pr
Slide 15: Strong Industry Growth
Strong Industry Growth Significant capital expenditure in the mining industry For personal use only will drive future growth 40 35 Expected capital expenditure ($bn) 30 25 20 15 10 5 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Source: Australian Bureau of Statistics, 2008 15
Slide 16: Outlook: Strong growth and margins
Outlook Strong growth and margins For personal use only 600 16.0% 14.0% 13.4% 12.1% 14.0% 500 12.0% 400 8.4% 10.0% 300 8.0% 471.2 6.0% 200 277.6 4.0% 100 186.2 2.0% 76.7 0 0.0% Full Year Full Year Full Year Full Year 2005 Actual 2006 Actual 2007 Actual 2008 Actual Pro Forma Revenue ($m) Pro Forma EB
Slide 17: Outlook
For personal use only Outlook FY2009 order book is very strong and expect minimum net profit growth of 15-20% Group tender activity at record highs 89% of FY2009 Civil & Mining Division revenue secured, compared to 57% secured this time last year Mining division to outpace growth in the othe
Slide 18: Appendix – additional information
For personal use only Appendix – additional information 18
Slide 19: Statutory and Pro Forma Income Statement
For personal use only Financial Overview Statutory and Pro Forma Income Statement FY2008 FY2008 Statutory FY2008 FY2008 Statutory Prospectus Pro Forma Pro Forma $m unless stated Actual Forecast Actual Prospectus Forecast Revenue 471.2 440.4 471.2 440.4 EBITDA 71.9 74.0 84.2 85.4 EBITDA margin (%) 15
Slide 20: Reconciliation of Statutory to Pro Forma Income Statement
For personal use only Financial Overview Reconciliation of Statutory to Pro Forma Income Statement $m Unless FY2008 IPO related Other FY2008 Stated Statutory Actual Costs Costs Pro Forma Actual Revenue 471.2 - - 471.2 Operating costs (399.3) 11.7 0.6 (387.0) EBITDA 71.9 11.7 0.6 84.2 Depreciation (1
Slide 21: Statutory Consolidated Statement of Cash Flows
Financial Overview Statutory Consolidated Statement of Cash Flows For personal use only Year ended 30 June 2008 Year ended 30 June 2007 $’000 $’000 Cash flows from operating activities Cash receipts from customers 402,688 243,372 Cash paid to suppliers and employees (372,000) (199,412) Interest paid