Slide 1: FY2014 Full Year Results Presentation
For personal use only Mastermyne Group Limited FY2014 Full Year Results Presentation 22 August 2014 Tony Caruso – CEO & Managing Director Chris Kneipp – Chief Financial Officer 1 1
Slide 2: Contents
CONTENTS For personal use only Results Summary FY14 Full Year Results Operational Overview Outlook Summary 2
Slide 3: Results Summary
FY14 Full Results Operational For personal use only Year Outlook Summary Summary Overview Results
Slide 4: Results Summary: Financial Highlights
Results Summary Financial Highlights For personal use only • Revenue of $172 million above guidance range of $155‐$165 million REVENUE • EBITA of $5.3 million ($3.3 million contributed in 2nd half) $172m(↓30.9%) Guidance • Statutory NPAT of $2.99 $155m ‐ $165m • Underlying NPAT of $2.64 million FY20
Slide 5: Operational Summary
Operational Summary For personal use only • Continued trend of improving safety performance. TRIFR from 3.48 in June 2013 to 3.13 in June 2014 • Maintained MYE’s strong link to producing underground coking coal mines that are focused on increasing production to reduce unit costs • No erosion of the
Slide 6: FY14 Full Year Results
FY14 Full Results Operational For personal use only Year Outlook Summary Summary Overview Results
Slide 7: FY2014 Financial Summary
FY2014 Financial Summary For personal use only Summary Income Statement • Revenue is down 30.9% as a result of full year effect ($’000) FY2014 FY2013 Change(%) of contracts running off from FY2013. Total Revenue 171,977 248,836 (30.9%) • Net Profit down 74% due to decreased revenues and lower margin
Slide 8: FY2014 Divisional Performance
FY2014 Divisional Performance For personal use only Underground Engineering Services ($’000) FY2014 FY2013 FY2014 FY2013 FY2014 FY2013 External Revenue 150,702 194,251 18,468 17,819 2,807 36,766 Inter Segment Revenue* 6,367 12,129 1,109 1,471 62 6 Total Divisional Revenues 157,069 206,380 19,577 19,
Slide 9: FY2014 Working Capital & Cash Flow
FY2014 Working Capital & Cash Flow For personal use only $AUD (000's) FY2014 FY2013 • Strong operating cash flows EBITDA (Statutory) 12,224 25,878 delivered $10.7 million on a Movements in Working Capital 1,486 (3,314) market cap of ~$40 million. Non cash items 63 477 • Total debt repayments of Net
Slide 10: FY2014 Balance Sheet
FY2014 Balance Sheet For personal use only $AUD (000's) FY2014 FY2013 Assets • Net Assets down to $60.7 million Cash and cash equivalents 8,810 10,223 • Lower balance of working capital as Trade and other receivables 37,917 40,906 Inventories 2,742 2,332 revenues reduced Total current assets 49,469
Slide 11: Operational Overview
Results FY14 Full Operational For personal use only Outlook Summary Summary Year Results Overview
Slide 12: HSEQ Scorecard
HSEQ Scorecard Production focus For personal use only Safety Always Project Hours worked and TRIFR • FY2014 Group TRIFR 3.13 (200,000hrs based on internal reporting standard on Projects) 2500000 7.00 5.85 • 3 of the 9 major underground projects have a TRIFR of 5.56 6.00 5.22 0.00 2000000 5.00 • HSEQ
Slide 13: MYE Workforce
MYE Workforce For personal use only Employee Numbers (FTE) Employee Numbers (FTE) 1088 5% 5% 823 754 733 Underground Engineering 490 518 Corporate 386 90% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 • Implemented a Supplementary Labour (Labour Hire) • Transitioned 300+ QLD workforce to adjusted
Slide 14: Operations: Underground
Operations For personal use only Underground • Mobilising labour for the Grosvenor Mine project and will continue to ramp up over the next 6 months • Mobilised on Grasstree Mine for stone drivage project • Completed the Broadmeadows Longwall and Conveyor projects • Contract for roadway development a
Slide 15: Operations: Engineering and Services
Operations For personal use only Engineering • Revenue driver has shifted from a fabrication bias to consumable sales • The two workshops maintained a full order book during the 2nd half of the 2014 FY. • New products; developed and delivered from the Cardiff workshop Services • 2 projects delivered
Slide 16: Operations: MyneSight
Operations For personal use only MyneSight • Extended the Rio Tinto Training contract for another 12 months • Retained and continued the Anglo American training delivery contract • Commenced the Grosvenor Project induction/training work • Completed our 5 yearly Registered Training Organisation re‐ r
Slide 17: Outlook
Results FY14 Full Operational For personal use only Outlook Summary Summary Year Results Overview
Slide 18: Outlook – Order Book
Outlook – Order Book For personal use only Moranbah North Drivage • Total Order Book Moranbah North Umbrella $257 million Grasstree Stone Drivage • Order book Grasstree Mine deliverable in FY15 Westcliff Colliery $112 million Appin Area 9 Dendrobium Mine Services Dendrobium Longwall • Recurring work
Slide 19: Market Outlook – FY2015 and Beyond
Market Outlook – FY2015 and Beyond For personal use only • Industry will remain challenged by coal pricing • Focus of coal mines will remain on increased coal production to keep unit rates down • Coal miners will continue to utilise contractors to • Maintain flexible workforce structures • Substitut
Slide 20: MYE Outlook – FY2015
MYE Outlook – FY2015 For personal use only • Existing order book stable and most likely will see scope expansion Underground under existing contracts • Continuing to ramp up on new work in the Bowen basin • Shortlisted on 2 roadway development projects with another tender still being evaluated • Pre
Slide 21: MYE Outlook – FY2015: Services, Engineering, MyneSight
MYE Outlook – FY2015 For personal use only Services Engineering MyneSight • Build stable and increased • Engineering pipeline will rely on • Expansion of training services into revenue consumables sales and will be other complimentary sectors and supported by refurbishment work internationally • Mob
Slide 22: Summary
Results FY14 Full Operational For personal use only Outlook Summary Summary Year Results Overview
Slide 23: Summary
Summary For personal use only • Full year results were in line with guidance with strong second half performance • Order book is well established and provides clear visibility into FY2015 earnings and beyond • Tender pipeline and current active tenders is substantial • Contract roadway development t
Slide 24: Corporate Overview
Corporate Overview For personal use only Capital Structure 12 Month Trading History Share price as at 20 August 2014 ($) 0.525 Shares on issue (m) 75.5 Market cap ($m) 39.6 Net Debt as at 30 June 2014 ($m) 2.2 Enterprise value ($m) 41.8 Board Darren Hamblin Non-executive Chairman Anthony (Tony) Caru
Slide 25: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only 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 us
Slide 26: Contact
CONTACT For personal use only www.mastermyne.com.au Information for Investors / Analysts: Tony Caruso – Managing Director: (07) 4963 0400 Bill Lyne – Company Secretary: (07) 3378 7673 26