Nrw Holdings Limited · ASX:NWH
Nrw — H1 FY2017 Earnings Presentation
18 slides from Nrw's earnings presentation, Feb 16, 2017
Slide 1: 2017 Half Year Results
NRW Holdings 2017 Half Year Results 16 February 2017
Slide 2: Financial overview
Financial overview • Revenue of $176.6(1) million up 17.6% on the same period last year • Underlying EBITDA(2) of $29.2m up 21.7% on the prior comparative period • Net profit after tax of $11.6m (up 90%) and earnings per share of 3.8 cents • New work secured circa $200m; order book at $1.0 billion •
Slide 3: Operational overview
Operational overview • Yandi Oxbow project and Nammuldi waste storage facility progressing well • Additional $40m contract within Yandi sustaining project for Rio Tinto • Nammuldi Incremental Tonnes (NIT) to finish four months early – no material impact on second half earnings – Fleet to be relocate
Slide 4: HSE & People
HSE & People HSE Total Recordable Injury Frequency Rate • Improved TRIFR reflecting lower incidents and increased hours • A number of innovative approaches implemented to deal with plant isolation issues • Focus in the half year on lead indicators – hazard observations, take 5’s, visible safety lead
Slide 5: Financial overview
Middlemount Mining Financial overview
Slide 6: Summary financials
Summary financials • Revenue in line with order book as advised at November Annual General Meeting • 21.7% increase in EBITDA over same period last year • Civil and Mining activity reflects award First Half FY17 First Half FY16 of new civil contracts mostly for Rio Revenue Earnings Revenue Earnings
Slide 7: Cashflow
Cashflow • Strong cashflow generation from EBITDA Cash movement: First Half FY17 • Transaction costs include - – Corporate note: lead arranger fees, legal costs and loan termination costs – Hughes acquisition costs • Capex run rate higher than last year due to maintenance cycle of mobile mining flee
Slide 8: Debt and banking
Debt and banking $70m corporate bond issue used to refinance existing debt - better alignment of debt repayments and earnings - completed December 2016 • Bond significantly improves liquidity Calendar year debt and interest repayment profile – Previous bank term 24 months – Bond term now 48 months •
Slide 9: Balance sheet
Balance sheet Net assets: December 16 • Net assets 57 cents per share • Debt relates to equipment financing – $109.6m notional net value of NRW ‘owned fleet’ • Tax assets include $30.1m on balance sheet and $26.7m in contingent assets – Represents asset with NPV of circa $40m • Franking credits of $
Slide 10: Business unit performance
Yandi Oxbow Bridge Business unit performance
Slide 11: NRW Civil and Mining
NRW Civil and Mining Civil • Revenue $42m (last year $23m) increase due to new work secured in 2016 • Further work for Rio Tinto secured in the half at Yandicoogina: $40m • SI-NRW progressing the Forrestfield-Airport Link project: – Tunnel boring machines to be commissioned in the first half of 2017
Slide 12: Action Drill & Blast
Action Drill & Blast • Improved underlying drill and blast activity up 20% on last year – Lower business revenue due to Middlemount explosives being client supplied in new contract • Secured new work in the half includes – Contract from Macmahon for the Telfer Gold Mine $40m – Two year extension at
Slide 13: Tender pipeline summary
Forrestfield-Airport Link: Artist’s Impression of Forrestfield Station Tender pipeline summary
Slide 14: Tender pipeline & outlook
Tender pipeline & outlook Order book of $1.0b at Feb 2017 Tender pipeline • Secured work for FY17 totals $346m and for FY18 totals $300m • Tendering pipeline valued at $2.8b – NRW Civil $0.9b – NRW Mining $1.4b – ADB $0.5b Civil • Includes sustaining tonnes projects in iron ore likely to Order book:
Slide 15: Outlook
Outlook Operationally our focus will remain on • Continuing to deliver projects to client expectations • Supporting the iron ore sector as plans for sustaining current production volumes are developed • Growing our presence in QLD and NSW on the back of the recent Hughes acquisition • Reviewing oppo
Slide 16: FY17 project locations
FY17 project locations WA - Pilbara Rio Tinto Iron Ore Nammuldi Incremental Tonnes Phase 2 Rio Tinto Iron Ore Nammuldi Incremental Tonnes Fortescue Metals Group Cloudbreak oe Pilbara Rio Tinto Iron Ore Yandi Oxbow: Yandicoogina Mine Nammuldi BWT Waste Fines Storage Facility — Stage 2 Rio Tinto Iron
Slide 17: Disclaimer and important notice
Disclaimer and important notice Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other company. Due care and att
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