Emeco Holdings Limited · ASX:EHL
Emeco — H1 2013 Earnings Presentation
25 slides from Emeco's earnings presentation, Feb 21, 2013
Slide 1: 2013 Interim Results
For personal use only 2013 Interim Results Keith Gordon, Managing Director & Chief Executive Officer Stephen Gobby, Chief Financial Officer
Slide 2: Presentation Overview
Presentation Overview For personal use only Highlights Financials Strategy & Outlook Questions Appendices
Slide 3: Highlights
For personal use only Kalgoorlie, Western Australia Highlights Keith Gordon Managing Director & Chief Executive Officer
Slide 4: Highlights
Highlights For personal use only Increased presence in major mining geographies complementing Australian business Operating NPAT of $25.1M in line with guidance down 14.0% Global Utilisation and EBITDA of $110.7M down 7.7% on 1H12 100% 90% Global fleet utilisation averaged 74% in 1H13 versus 85% in
Slide 5: Safety, People & Sustainability
Safety, People & Sustainability For personal use only Building stronger relationships with the community Safety Lost Time Injury (LTI) Frequency Rate 12 Low LTIFR maintained throughout period Lost Time Injury Frequency Per million man hours 10 Improving safety awareness 8 Rate (LTIFR) 6 PASS1 initia
Slide 6: Regional Performance – Australia
Regional Performance – Australia For personal use only Volatility and reduced activity by customers led to a number of contract roll offs, which are now complete EBIT ROFE (R12)1,2 Utilisation 100% 80% 60% Feb 13 55.3% 61.7 22.7% 22.7% 40% 53.9 19.4% 34.9 20% 458 machines, WDV $416M3 0% 1H12 2H12 1H
Slide 7: Regional Performance - Canada
Regional Performance - Canada For personal use only Strategy to reconfigure fleet and supply direct to oil sands producers delivering benefits EBIT (AUD) ROFE (R12)1,2 Utilisation 100% Feb 13 91.8% 80% 60% 12.8 40% 11.2 12.1% 10.0% 8.4% 20% 5.0 146 machines, WDV $181M3 0% 1H12 2H12 1H13 1H12 2H12 1H
Slide 8: Regional Performance - Indonesia
Regional Performance - Indonesia For personal use only Growth capital and improving customer mix delivered improved performance EBIT (AUD) ROFE (R12)1,2 Utilisation 100% 80% Feb 13 71.6% 60% 10.9 15.1% 40% 12.8% 5.0 5.0 5.4% 20% 235 machines, WDV $104M3 0% 1H12 2H12 1H13 1H12 2H12 1H13 1H10 2H10 1H1
Slide 9: Regional Performance - Chile
Regional Performance - Chile For personal use only Successful entry into new market providing geographic and commodity diversification Positive contribution in first six months of operation with EBIT of $1.8M Approximately $53M of fleet currently in work with recent contract win increasing fleet dep
Slide 10: Financials
For personal use only Financials Stephen Gobby Chief Financial Officer
Slide 11: Financial Summary
Financial Summary For personal use only At a glance… 1H121 2H121 1H131 PCP Var % Revenue $273.0m $292.2m $246.7m (9.6)% EBITDA $119.9m $141.8m $110.7m (7.7)% EBIT $54.3m $71.7m $49.1m (9.6)% NPAT $29.2m $41.9m $25.1m (14.0)% ROC %2 11.4% 13.2% 11.8% 0.4% Free cash flow from $64m $50m $48m (25.0)% op
Slide 12: Earnings composition
Earnings composition For personal use only Revenue and margin decline in Australia partially offset by improvements in offshore businesses Rental & Maintenance Revenue1 Earnings & Margins1 300 160 60% 140 250 50% 120 200 40% 100 A$M A$M 150 80 30% 60 100 20% 40 50 10% 20 0 0 0% 1H12 2H12 1H13 1H12 2
Slide 13: Cashflow, Capital Expenditure & Capital Management
Cashflow, Capital Expenditure & Capital Management For personal use only Free cashflow generation to remain strong with lower capital expenditure forecasted Free cashflow from operations Free Cash Flow Generation (ex. Growth Capex, Dividends and Share Buybacks) Operating cashflow lower due to EBITDA
Slide 14: Funding Profile
Funding Profile For personal use only Diversified and secure funding portfolio in place with focus on reducing debt in the short term Debt Maturity Profile 250 Weighted average: Long dated maturity profile and significant debt 4.7 years headroom following recent debt refinancing: 200 Average debt ma
Slide 15: Return on Capital
Return on Capital For personal use only Improving returns in offshore businesses coupled with focus on redeploying and leveraging Australian installed asset base ROC (R12)1,2 Strategies in offshore businesses starting to deliver improved returns Short term decline in utilisation impacting returns 13
Slide 16: Strategy & Outlook
For personal use only Strategy & Outlook Keith Gordon Managing Director & Chief Executive Officer
Slide 17: What defines Emeco today?
What defines Emeco today? For personal use only A commitment to business consolidation over the last few years has left Emeco fitter, more sustainable and well positioned for the future Operating expenses and sustaining capex driven by utilisation Flexibility to manage capex and cashflows through th
Slide 18: The Emeco Strategy
The Emeco Strategy For personal use only Initiatives change, but our strategy remains the same… Improving the core business by Executing on growth, both driving greater efficiencies and organically and into new active asset management markets / geographies Consistent Value Creation for Shareholders
Slide 19: Our strategic focus
Our strategic focus For personal use only We are focused on ensuring Emeco is positioned to leverage its existing asset base as the local market recovers, while continuing to pursue growth in Canada and Chile Successful conversion of customer enquiries currently being pursued in Australia Continued
Slide 20: Outlook
Outlook For personal use only Lower average utilisation in 2H13 will result in slightly lower earnings than 1H13, with positive signs for improved group performance in FY14 Australian utilisation stabilised with no significant contracts finishing in 2H13 A number of new opportunities currently being
Slide 21: Questions
For personal use only Questions
Slide 22: 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 Brendan Shalders Investor Relations emecogroup.com
Slide 23: Appendices
For personal use only Appendices
Slide 24: Detailed Financials
Detailed Financials For personal use only Profit & Loss Cashflow A$ Millions Variance Variance A$ Millions 1H12 2H12 1H13 PCP 1H12 2H12 1H13 HonH % PCP % A$ m A$ m A$ m $ Revenue 273.0 292.2 246.7 (15.6) (9.6) Operating cashflow 110.5 142.0 124.4 13.9 EBITDA 119.9 141.8 110.7 (21.9) (7.7) General wo
Slide 25: 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.