Mastermyne Group Limited · ASX:MYE
Mastermyne — FY2016 Earnings Presentation
17 slides from Mastermyne's earnings presentation, Aug 16, 2016
Slide 1: FY 2016 Full Year Results Presentation
FY 2016 Full Year Results Presentation For personal use only August 2016 Tony Caruso – CEO & Managing Director Chris Kneipp – Chief Financial Officer Slide 1
Slide 2: Company remains well positioned amidst continuing challenges
Company remains well positioned amidst continuing challenges For personal use only • Debt reducing, maintaining a strong balance sheet • Sector conditions stabilising but not translating to material increase in activity at this point • Restructured for work in hand and to ensure strong cash generati
Slide 3: More focused business and 26% reductions in overhead ensures cash will be generated
More focused business and 26% reductions in overhead ensures cash will be generated For personal use only Summary Income Statement • 2nd half performance ($’000) FY2016 FY2015 Change(%) dominated by restructuring Total Revenue 168,434 174,195 (3.31%) costs Statutory EBITDA 1,368 6,182 (77.87%) Statu
Slide 4: Maintained our strong balance sheet through a flat second half
Maintained our strong balance sheet through a flat second half For personal use only • Net Debt of 11.1 at 30 June Debt Profile $20 • Late debtors received in MILLIONS (AUD) $15 July resulting in Net Debt $10 of $6.4 million at 31 July $5 $0 • Paid down additional debt by 2015 2016 2017 2018 $2.3 mi
Slide 5: No compromising on safety
No compromising on safety For personal use only • All internal safety targets TRIFR and Hours Worked exceeded for FY2016 2500000 8.00 2000000 5.85 5.56 6.00 • TRIFR rate reduced from 4.34 1500000 3.48 3.13 4.00 4.34 to 1.68 1000000 1.68 500000 2.00 • Significant improvement in 0 0.00 Mastertec safet
Slide 6: Labour engagement strategies have impacted the underground business
Labour engagement strategies have impacted the underground business For personal use only • Manning numbers reduced as some clients moved to labour hire • Grosvenor Mine demobilisation was single biggest impact to mining division • No material changes to remaining contracts • Contact mining opportun
Slide 7: Mastertec pipeline increasing but revenues still down from lack of maintenance spending
Mastertec pipeline increasing but revenues still down from lack of maintenance spending For personal use only • Traditional mining sector maintenance spending remains constrained • Mastertec result impacted by restructure and impairment • Impairment $8 million, Restructure $2.6 million, • Now expose
Slide 8: Tier contracts but order book reduces
Tier 1 contracts but order book reduces For personal use only Anglo Moranbah Region Umbrella Contract Anglo Moranbah Region Drivage Contract Appin Colliery Broadmeadow Conveyors DBCT Scaffolding Services Development contract Kestrel Strata Support 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fi
Slide 9: FY17 Order Book provides the base to build from
FY17 Order Book provides the base to build from For personal use only • Current Order Book $123.3 million • Mastermyne Mining $101.3 million • Mastertec $22 million • $64.2 million to be delivered in FY17 • Total pipeline of opportunities $971 million • Mastermyne mining $900 million • Mastertec $71
Slide 10: Outlook showing some early signs of recovery
Outlook showing some early signs of recovery For personal use only • FY17 will remain tight however the worst of the cost reductions appear to be behind us • Coal prices are showing signs of stabilising • Divestment by Tier 1 miners is creating opportunities for contract mining • Strategy of diversi
Slide 11: Appendices
For personal use only Slide 11 Appendices
Slide 12: Corporate Overview
Corporate Overview For personal use only Capital Structure Substantial Shareholders Share price as at 15 July 2016 ($) 0.19 Andrew Watts 13.46% Shares on issue (m) 91.1 Kenneth Kamon 11.94% Market cap ($m) 17.3 Darren Hamblin 10.65% Net Debt as at 31 June 2016 ($m) 11.1 Maui Capital 6.91% Enterprise
Slide 13: Mastermyne Income Statement
Mastermyne Income Statement For personal use only ($’000) Jun-16 Jun-15 Change(%) Total Revenue 168,434 174,195 (3.31%) Statutory EBITDA 1,368 6,182 (77.87%) Goodwill Impairment (7,999) (4,538) (76.27%) Gain on Bargain Purchase 2,221 Statutory profit/(loss) before tax (15,041) (4,549) (230.64%) Tax
Slide 14: Mastermyne Cash Flow
Mastermyne Cash Flow For personal use only $AUD (000's) Jun-16 Jun-15 EBITDA (Statutory) 1,368 6,182 Movements in Working Capital (2,566) 2,571 Non cash items 2,032 41 Interest Costs (907) (1,101) Income tax payments 454 (558) Net Operating Cash Flow 381 7,135 Net Capex (includes intangibles) (2,053
Slide 15: Mastermyne Balance Sheet
Mastermyne Balance Sheet For personal use only $AUD (000's) Jun-16 Jun-15 Assets Cash and cash equivalents 1,836 8,723 Trade and other receivables 29,084 38,568 Inventories 3,408 3,002 Current Tax Assets 226 259 Total current assets 34,554 50,552 Deferred Tax Asset 8,579 7,146 Property, plant and eq
Slide 16: Disclaimer and Important Notice
Disclaimer and Important Notice The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are For personal use only advised to read this disclaimer carefully before reading or making any other us
Slide 17: Contact
CONTACT For personal use only www.mastermyne.com.au Information for Investors / Analysts: Tony Caruso – Managing Director: (07) 4963 0400 Chris Kneipp– CFO/Company Secretary: (07) 4963 0400