Emeco Holdings Limited · ASX:EHL
Emeco — UBS Emerging Company Conference 2011
20 slides from Emeco's conference presentation, Apr 7, 2011
Slide 1: UBS Emerging Company Conference
For personal use only UBS Emerging Company Conference Keith Gordon, Managing Director & Chief Executive Officer 7th April 2011 Sydney
Slide 2: UBS Emerging Company Conference agenda
For personal use only UBS Emerging Company Conference Operating Update The Rental Value Proposition Focus Area: Australian Rental Strategy & Outlook Picture: Emeco supervisor inspecting truck fleet during shift change
Slide 3: Operating Update
For personal use only Operating Update
Slide 4: Q3 Operating Update
For personal use only Q3 Operating Update Group utilisation remains robust at 84.0% (avg. 86.6% to end Mar-11) Current wet weather in Queensland affecting performance at some sites Canadian thaw profile & Indonesian fleet redeployment may influence Q4 $43M forward orders held on new OEM equi
Slide 5: The Rental Value Proposition
For personal use only The Rental Value Proposition
Slide 6: Meeting Customers Needs
Meeting Customers Needs Customer requirements vary but Emeco’s solution is used at all stages of mine life For personal use only Emeco’s Mine Mine Core Overburden Mining cycle Construction Development Production (Production) leverage: 6% 19% 42% 33% Customers Flexibility Equipment Mechanical Capital
Slide 7: Customer Case Studies
Customer Case Studies High propensity for initial contract tenure to extend For personal use only Need Customer Fleet Services Site usage Time on Site Flexibility Blue-chip 37x items of plant, based on Full maintenance Primary 3 years miner 2 production fleets of 150tn services & labour mining fleet
Slide 8: Focus Area: Australian Rental
For personal use only Focus Area: Australian Rental
Slide 9: Commodity Composition
Commodity Composition Leveraged to bulk commodities and gold with significant exposure to production cycle For personal use only NSW QLD/ NT WA 5% 3% Coking Coal 18% 7% Coking Coal Thermal Coal 22% Thermal Coal Iron Ore Iron Ore Gold 33% Gold Zinc 49% 40% Zinc 51% Copper Copper Civil Civil Other 58%
Slide 10: Australian Business Unit Utilisation
Australian Business Unit Utilisation Australian fleet utilisation continues to track above 85% with strong enquiry levels For personal use only 100 % QLD 90 % NSW WA 80 % 70 % 60 % 50 % Sep-08 Sep-09 Sep-10 Jun-09 Jun-10 Jun-08 Dec-09 Dec-10 Dec-07 Dec-08 Mar-08 Mar-09 Mar-10 Mar-11 10 Note: Graphs
Slide 11: Fleet Strategy
Fleet Strategy Continuing to grow the large mining fleet to provide extended tenure and continued demand across the mining cycle For personal use only NSW QLD/ NT WA 3% Civil Civil 7% 4% Small Mining 17% Small Mining 41% Small Mining 48% Large Mining Large Mining 48% Large Mining 56% 76% WDV: $87.4M
Slide 12: Australian Rental Returns
Australian Rental Returns Australian business units have historically delivered acceptable shareholder returns For personal use only ROFE 25.0% 24.0% 23.4% 22.1% 20.6% 20.0% 19.1% 15.0% 10.0% 5.0% 0.0% Jun-08 Jun-09 Jun-10 Dec-10 (R12) Dec-10 (R6) Represents 6 month ROFE to 31 Dec 2010 annualised No
Slide 13: Australian Safety Performance
For personal use only LTI FR (per million hrs) - 10.0 12.0 14.0 16.0 2.0 4.0 6.0 8.0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Australian Safety Performance Nov-09 Dec-09 Jan-10 Feb-10 Note: LTIFR measured as number of LTI incidents per million man hours Mar-10 Apr
Slide 14: Strategy & Outlook
For personal use only Strategy & Outlook
Slide 15: The Emeco Strategy
The Emeco Strategy Strategy developed to drive business performance and growth 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 Crea
Slide 16: Macro demand
Macro demand Positive outlook for bulk commodities in three core mining regions For personal use only Open Cut Volume of Earth Moved Growth ( 2011 - 2016) 15,000 14,000 203 156 37 4 (9 ) 12,735 Million Tonnes 13,000 767 1,743 67 ( 126 ) 12,000 11,000 9,892 10,000 9,000 8,000 Nickel Copper Iron Ore O
Slide 17: Focus on Growth
Focus on Growth Full utilisation and robust 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: $100-110M (1H11 $50M) • Gro
Slide 18: Summary
For personal use only Summary Strong operating result delivering improved financial performance Positive commodity fundamentals in key operating regions Committed capex resulting from procurement strategy to meet further growth opportunities Balance sheet to support value accretive growth 18
Slide 19: 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 20: 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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