Monadelphous Group Limited · ASX:MND
Monadelphous — H1 2007 Earnings Presentation
21 slides from Monadelphous's earnings presentation, Feb 20, 2007
Slide 1: December 2006 half year results
Monadelphous December 2006 half year results
Slide 2: Highlights
a Monadelphous | highlights = Half year revenue of $499.4m up 105%, EPS up 147% to 38.5¢ ® Spike in construction activity has driven bumper half year result = All divisions had strong performances = Continued focus on safety performance = Organisation restructured to facilitate further organic growt
Slide 3: Financial highlights
a Monadelphous | financial highlights Dec-06 Dec-05 Sales Revenue $m 499.4 243.5 EBITDA $m 48.7 20.8 Net Profit After Tax $m 31.4 12.5 Earnings Per Share cps 38.5 15.6 Total Dividends cpsff 22.0 9.0 Operating Cash Flow $m 39.2 37.1 Net Cash $m 45.3 24.7 Capex $m 9.8 10.8
Slide 4: Revenue by division
revenue by division - a Monadelphous | Dec-06 Dec-05 Engineering Construction $m 354.3 130.6 Maintenance and industrial Services $m 132.2 96.3 Electrical and Instrumentation Services $m 40.4 10.8 Skystar $m 9.5 58 Internal sales eliminations $m -37.0 TOTAL $m 499.4 243.5
Slide 5: Sales revenue and profit after tax
sales revenue $m profit after tax $m 31.4 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 WDecHalf June Half @DecHalf June Half
Slide 6: Earnings & dividend growth
a Monadelphous earnings & dividend growth earnings per share dividend per share 33.0 22.0 19.3 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 WDecHalf June Halt Interim Dividend @ Final Dividend & Special Dividend
Slide 7: EBITDA and operating cash flow
rl Monadelphous EBITDA and operating cash flow EBITDA $m cashflow from operations $m 66.8 49.0 48.7 2002 2003 2004 =. 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half @ June Half WDec Half & June Half
Slide 8: EBITDA margin and profit after tax margin
2002 EBITDA margin % 2003 2004 2005 Full Year m Dec Half 2006 98% 2007 2002 profit after tax margin % 2003 2004 2005 @ Full Year @ Dec Half 2006 6.3% 2007
Slide 9: Exceptional return on equity
exceptional return on equity : 47.3% a Monadelphous | 2002 2003 2004 2005 @ Dec Half @ June Half 2006 2007
Slide 10: Strong shareholder returns
$10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 strong shareholder returns 5 year share price history oe na Monadelphous | Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 = Total shareholders returns: 1 year 105% 5 years 2370% (90% p.a)
Slide 11: Strong focus on safety
| Monadeiphous __- strong focus on safety total case injury frequency rate (TCIFR) 32.1 29.0 28.6 22.6 2002 2003 2004 2005 2006 YTD Dec 2006
Slide 12: Increasing workforce
oe aq Monadeiphous increasing workforce employee numbers 3647 2002 2003 2004 2005 2006 Dec 2006
Slide 13: Engineering Construction division revenue
a Monadelphous 354.3 109.6 2004 2005 2006 2007 @ Dec Half @ June Half m Revenue #\ 171% on last year’s first half ($500m of work won between December 2005 and August 2006) = First major win in the water industry = Second half revenue is forecast to revert to a more normalised level
Slide 14: EC division highlights
a Monadelphous | EC division highlights m Substantial completion of major contracts: = Sulphuric acid plant construction; BHP Billiton’s Ravensthorpe Nickel Project, WA = Stockpile capacity extension; BHP Billiton Mitsubishi Alliance (BMA) Hay Point Coal Terminal, QLD = lron ore facility expansion;
Slide 15: EC division highlights
mS fi Monadelphous EC division highlights m Successful progress of major contracts: = lron ore facility expansion; Rio Tinto lron Ore Dampier Port Upgrade Phase B, WA = lron ore facility expansion; Yandi Junction South East project at Rio Tinto Iron Ore’s Yandicoogina mine, WA = lron ore facility ex
Slide 16: $70m of new major contracts secured subsequent to reporting period
m $70m of new major contracts secured subsequent to reporting period: a lron ore car dumper refurbishment; BHP Billiton lron Ore’s Rapid Growth Projects, WA = Nickel facility construction work; BHP Billiton Ravensthorpe Nickel Project, WA a Water treatment plant design and construction; Water Corpor
Slide 17: Maintenance & industrial services division
Ss 7 . ws - ; . ff Monadeiphous | -maintenance & industrial services division 7 sales revenue $m 207.5 136.9 132.2 2004 2005 2006 2007 @ Dec Half @ June Half m Revenue #\ 37% from last year’s first half = Retention of all major contracts and increased service volumes = Full period revenues from newl
Slide 18: MalS division highlights
a M onadelphous d MalS division highlights Award & establishment of new service contracts : = 2 year oil and gas maintenance support services contract; Conoco Philips’ Darwin LNG facility, NT = 3 year oil and gas operation services contract; Oil Search, Papua New Guinea Significant contract extensio
Slide 19: Other growing divisions
-Other growing divisions MIE sales revenue $m Skystar sales revenue $m 40.4 148 26.0 9.5 2006 2007 2004 2005 2006 2007 @ Dec Half @ June Half Dec Half @ June Half m Revenue 4 274% from last year’s first half ™ Revenue 4. 64% from last year’s first half m Major works carried out through other m Full
Slide 20: Our strategy
a Monadelphous | our strategy m Core business strategies: = earnings quality, blue chip customers, long term relationships = larger and longer contracts = focus on growing recurring revenue base m Diversification strategies: = geographical expansion of electrical services = further development into
Slide 21: Outlook
a Monadelphous | m Second half revenues to return to more normalised levels m Revenue on track to exceed $800m for the full year m Pipeline of projects continues to be strong, in particular iron ore m Project timing and capacity utilisation will continue to impact engineering construction revenue fl