Emeco Holdings Limited · ASX:EHL
Emeco — Morgan Stanley Emerging Companies Conference (June 2011)
14 slides from Emeco's conference presentation, Jun 9, 2011
Slide 1: Morgan Stanley Emerging Companies Conference
For personal use only Morgan Stanley Emerging Companies Conference Stephen Gobby, Chief Financial Officer 10th June 2011 Sydney
Slide 2: Presentation Overview
For personal use only Presentation Overview Operating Update Sustainable Growth Strategy Shareholder Value Creation Optimising the Core Outlook Picture: Recently acquired 350T hydraulic excavator boom en-route to European port, bound for Queensland
Slide 3: Operating Update
Operating Update Specific short-term factors impacting recent utilisation….but strong demand supporting momentum into FY12 For personal use only 2H11 utilisation expected to average ~83% (1H11 Average Equipment Utilisation by WDV 88%) Various factors impacting 2H11 earnings: Qld wet weather im
Slide 4: Strategy
Strategy How will we drive improvement in business performance? For personal use only Ongoing optimisation of Grow without sacrificing invested capital and quality of earnings earnings Leverage capabilities for Continue to evolve the growth business model Consistent Value Creation for Shareh
Slide 5: Fleet Strategy
Fleet Strategy Targeted investment in large mining fleet used in production applications For personal use only June 09 June 10 Dec 10 Civil Fleet Civil Fleet Civil Fleet 8% 9% 16% WDV: Small Mining Jun-09: $623M 45% Large Large Mining Small Mining Jun-10: $572M Small Mining 36% 55% Large Mining Dec-
Slide 6: Commodity & Customer Exposure
Commodity & Customer Exposure Leveraged to bulk commodities, gold and oil sands with significant exposure to production cycle For personal use only Diversified global commodity exposure Customer composition differs by market Australia Indonesia Canada 9% 18% 100% 100% 100% 7% 75% 75% 75% 9% 21% 50%
Slide 7: Growing Returns
Growing Returns Investment of incremental capital can deliver acceptable returns For personal use only Business unit returns $93M investment in Australia in FY12 to capitalise on strong volume growth Immediate focus on stabilising Indonesian business before building scale and improving customer
Slide 8: Focus on Growth
Focus on Growth Full utilisation and positive demand outlook supports further organic growth investment For personal use only Organic Growth Procurement Strategy Capital Investment Target large mining fleet to enhance FY11 estimated capex portfolio returns • Sustaining: $90-100M (1H11 $50M) • Gr
Slide 9: Executing the Strategy
Executing the Strategy Balance sheet capacity and conservative gearing positions Emeco for sustainable growth For personal use only Net Debt & Facility Headroom 700 600 ~$175M of available headroom under current 500 debt facilities 400 A$M 300 200 Conservative gearing of ~1.25x (Net 100 Debt:EBI
Slide 10: Focus on Shareholder Returns
Focus on Shareholder Returns Consistent value creation Clear focus on deliver acceptable ROC from core mining for shareholders markets For personal use only Return on Capital Significant progress liberating 1,400 18.0% underperforming capital 16.0% 1,200 Improved utilisation of installed 1,000 1
Slide 11: Outlook
Outlook Commitment to growth capital in FY12 reflects confidence in medium term outlook for mining volume growth For personal use only Volume growth outlook in Australian, Indonesian and Canadian mining markets remains positive Emeco’s exposure to production cycle is underpinning strong demand
Slide 12: Questions
For personal use only Questions
Slide 13: Company Contact Details
For personal use only Company Contact Details Thank you for your interest in Emeco Further investor enquiries should be directed to: Keith Gordon CEO Stephen Gobby CFO Graham Borgerson Investor Relations emecogroup.com
Slide 14: Disclaimer
For personal use only Disclaimer 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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