Slide 1: Investor Presentation: Full Year Results FY2011
For personal use only Investor Presentation Full Year Results FY2011
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only 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 com
Slide 3: Year in review: Operational highlights
Year in review: Operational highlights For personal use only Operational highlights Purchase of Comiskey Earthmoving assets in Queensland for $82m Award of $780m mining services contract with Middlemount Coal, representing NRW’s breakthrough into the coal market (Middlemount Coal is a joint vent
Slide 4: Year in review: Financial highlights
Year in review: Financial highlights For personal use only Financial highlights Revenue of $745 million: 22% increase on FY10 EBIT of $64.6 million: 12% increase on FY10 Net Profit After Tax $41.2 million: 17% increase on FY10 Successfully raised $76 million via an equity placement and share
Slide 5: People, Safety and Training Performance
People, Safety and Training For personal use only Performance As of June 30 2011 NRW employed a workforce in excess of 2,500, comprising direct employees, sub contractors and apprentices. NRW have world class safety systems and procedures in place and have recently implemented a new HSET reporti
Slide 6: Civil Division: Current Projects
Civil Division: Current Projects For personal use only *Western Turner Brockman Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $160 million Scope: Bulk earthworks for the overland conveyor at Western Turner Syncline; and civil works at the Bro
Slide 7: Civil Division: Current Projects
Civil Division: Current Projects For personal use only Karara Earthworks and Concrete Client: Karara Mining (Gindalbie Metals) Value: Approximately $190 million Scope: Bulk earthworks and concrete construction work for the iron ore crushing and processing facility. Works include the constructi
Slide 8: Civil Division: Current Projects
Civil Division: Current Projects For personal use only Great Eastern Highway Upgrade Client: Main Roads WA Model: Joint venture with Leighton and GHD, in alliance with Main Roads WA Value: $174 million Scope: Earthworks for the upgrade of the Great Eastern Highway in metropolitan Perth betwe
Slide 9: Civil Division: Preferred Contractor Framework Agreement
Civil Division: Preferred Contractor For personal use only Framework Agreement Client: Rio Tinto Iron Ore Tenure: Five years Scope: The projects covered in the agreement are a part of Rio Tinto Iron Ore’s 333 Expansion. This agreement places NRW in a preferred contractor position for these wor
Slide 10: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Middlemount Coal Client: Middlemount Coal* Value: Approximately $780 million (over five years) Scope: The mining contract is for all mining activities including clearing and grubbing, long and short term detailed mine scheduling and plann
Slide 11: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Western Turner Syncline Client: Rio Tinto Iron Ore Model: Joint Venture with Eastern Guruma Pty Ltd Value: Award Value: $200 million (over 4 years) Scope: Involves the engineering design and development of site infrastructure, mining of
Slide 12: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Karara Mining Client: Karara Mining (Gindalbie Metals) Value: Approximately $24 million per annum Scope: Further to performance on the preceding civil and concrete package, NRW is now also providing mining services including pit developme
Slide 13: Mining Services: Current Projects
Mining Services: Current Projects For personal use only Simandou Project Client: Rio Tinto Iron Ore Value: Approximately $35 million per annum Scope: NRW have been contracted since 2007 for the civil works required for the exploration phase of this project. These works include preparation of a
Slide 14: Action Drill & Blast
Action Drill & Blast For personal use only Division formed in March 2010. Initially formed to service internal contracts at Rio Tinto Iron Ore’s Western Turner Syncline and BHP Billiton Iron Ore’s RGP5. It now employs over 200 people, operates 21 drill rigs and has undertaken work on 11 contract
Slide 15: Action Mining Services
Action Mining Services For personal use only Provides equipment repairs, sand blasting and painting services, service truck and tanker fabrication and import services (including quarantine cleaning) Clients include Emeco, MACA, Westrac, Thiess, amongst others. Sales expected to gain momentum i
Slide 16: Project Map
Project Map For personal use only Fortescue Metals Group - Mining Fortescue Metals Group Solomon; Christmas Creek Civil Mine; Cloudbreak Mine Anderson Point Port Expansion; Main Line Rail Duplication Darwin Downer EDI - Drill & Blast Christmas Creek Mine Rio Tinto Iron Ore - Civil Western Turner Bro
Slide 17: FY2011 Financials
For personal use only FY2011 Financials 17
Slide 18: Operating Performance
Operating Performance For personal use only Full Year Operating Performance ($m's) 1HY 11 2HY 11 FY11 FY10 Change Sales Revenue Civil 192.1 190.5 382.6 383.6 0% Mining 149.9 171.8 321.7 201.1 60% Action Drill & Blast 11.3 16.5 27.8 7.0 297% Action Mining Services 12.7 15.4 28.1 24.5 15% Other* (7.7)
Slide 19: Divisional Performance
Divisional Performance For personal use only Civil Mining Action Drill & Action Mining Divisional Performance ($m's) Contracting Services Blast Services Financial Year Ended 30 June 2011 Sales Revenue 382.6 321.7 27.8 28.1 Operational costs (342.3) (285.0) (24.9) (25.9) Overhead reallocation (0.7) (
Slide 20: Balance Sheet
Balance Sheet For personal use only Financial Position ($m’s) FY11 FY10 FY09 FY08 FY07 Working Capital 36.9 30.1 26.4 56.4 9.7 Non-Current Assets 293.0 178.8 156.7 165.5 110.8 Non-Current Liabilities (10.2) (0.4) (0.6) (12.3) (1.6) 319.6 208.5 182.5 209.6 118.9 Funded by: Cash / (overdraft) 70.6 21.
Slide 21: Cash Flow
Cash Flow For personal use only $m's $250 $200 $37 $74 $150 $100 $53 $100 $18 $50 $78 $71 $0 $21 Opening Cash 1 Operating Proceeds from Net proceeds Repay Loans Investing Dividend Closing Cash Jul 2010 activities borrowings from equity activities Jun 2011 raising Inflow Outflow Application of cash
Slide 22: Current Funding Facilities
Current Funding Facilities For personal use only Facilities ($m’s) Limit Available Bonding 190 104 Asset Finance 298 169 Working Capital 50 50 TOTAL $538 $323 Structured Debt Facility (ANZ lead arranger) provides NRW the capability and flexibility to fund asset purchases into the future, with abil
Slide 23: Funding and Debt Position
Funding and Debt Position For personal use only Funding ($m’s) June 2011 June 2010 Cash 70.6 21.4 Debt 123.5 60.9 Net Debt 52.9 39.4 Net Debt / Equity 19.8% 23% Capex 68.0 61.0 Comiskey asset purchase 82.0 Funding headroom $323.0 $175.0 Consistent cash build in line with revenue and profit growth
Slide 24: Capital Expenditure
Capital Expenditure For personal use only Capital Expenditure FY11 FY10 Assets purchased for Civil & Mining 60.0 59.9 Comiskey Assets 82.0 Drill & Blast 7.4 0.7 Miscellaneous 0.6 0.7 TOTAL $150.0 $61.2 Significant investment of capital for the Mining Division Comiskey assets purchased in part to
Slide 25: Group Revenue Outlook
Group Revenue Outlook For personal use only $m's 1200 Target 1000 800 600 $1,000 400 $745 $610 $471 $509 200 $278 0 FY07 FY08 FY09 FY10 FY11 FY12 FY12 targeted revenue represents 35% growth over FY11. Revenue for FY12 fully secured based on $1bn target, and targeting 10% EBIT margin. 25
Slide 26: Order Book and Run-off
Order Book and Run-off For personal use only $1.200 $1.0bn $1.000 $0.800 $0.65bn $0.600 $0.35bn $0.400 $0.200 $- FY12 FY13 FY14 & beyond Total order book at start: Mining Services $1.35bn $0.98bn $0.65bn Civil Contracting $0.65bn $0.02bn Order book as at 22 August 2011: Mining Services $1.35bn, Ci
Slide 27: FY12 Outlook
FY12 Outlook For personal use only Record work in hand and expected improvement in margins across all divisions as a result of successful negotiation and tendering of contracts. Optimal utilisation of increased workforce and equipment will also contribute to margin improvement. Balance sheet and
Slide 28: Strategic Objectives
Strategic Objectives For personal use only FY12: Targeting FY13: Targeting Achieved to date $1b revenue $1.2b revenue Awarded Government Main Roads Maintain strong Oil & Gas client contract revenue growth and revenue stream Awarded contract in Oil & Gas sector ROCE Horizontal and Added t
Slide 29: Appendices
For personal use only Appendices 29
Slide 30: Services and Products
Services and Products For personal use only Civil Contracting Mining Services Drill and Blast Mechanical / Fabrication Provides construction Provides a wide range of Provides Drill and Blast Provides equipment repairs, services including rail contracting services services for the Mining sand blastin
Slide 31: Key Clients and FY11 Revenue Mix
Key Clients and FY11 Revenue Mix For personal use only 9.17% 0.43% 0.01% 2.19% 9.17% 0.98% 3.96% 2.95% 83.92% 87.22% Coal Govt Infrastructure Iron Ore Manganese Oil & Gas Other Northern Territory Qld WA West Africa 31