Slide 1: FY2011 Results Presentation
For personal use only FY2011 Results Presentation Ref: 90038 1488:P:jm
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared by GR Engineering Services Limited (“GR Engineering”) to provide an overview of GR Engineering and its 2010/2011 financial performance. Any statements, opinions, projections or other material contained in this document do not constitut
Slide 3: Presentation Outline
PRESENTATION OUTLINE For personal use only About GR Engineering Corporate Overview and Highlights Financial Results Operational Overview FY12 Outlook 3
Slide 4: About GR Engineering
ABOUT GR ENGINEERING For personal use only Australian based Engineering Design and Construction Contractor servicing the mining and minerals processing industry. Specialising in Engineering, Procurement and Construction (EPC) contracting to provide turnkey project delivery with secure cost, time
Slide 5: Corporate Overview and Highlights: Capital Structure
CORPORATE OVERVIEW AND HIGHLIGHTS For personal use only Capital Structure Share Price (02-Sept-11) $1.77 Total Shares 150,000,000 Shares on Issue1 150.0m Other Top 20 Senior Employees 8.7% & Founding Market Capitalisation 265.5m Shareholders 55.3% Balance Cash (as at 02-Sept-11) 45.1m 11.5% Debt (
Slide 6: Share Price Performance (since IPO)
CORPORATE OVERVIEW AND HIGHLIGHTS For personal use only Share Price Performance (since IPO) IPO price = $1.00 6
Slide 7: Main Reasons for Public Listing
CORPORATE OVERVIEW AND HIGHLIGHTS For personal use only Main Reasons for Public Listing Provide Balance Sheet to fund EPC contract bonding requirements via Bank Guarantees, normally 5 to 10%. Targeting opportunities for larger contracts. Increase GR profile and financial strength, capability a
Slide 8: Financial Results
FINANCIAL RESULTS For personal use only NPAT of $21.1 million against IPO forecast of $18.8 million. Revenue of $142.5 million against IPO forecast of $138.3 million. Fully franked dividend of 4 cents as per IPO forecast. Record date 16 September 2011 and payable 10 November 2011. Financial Ye
Slide 9: Financial Results: Balance Sheet Strength
FINANCIAL RESULTS For personal use only Balance sheet strength. Financial Year FY11 FY10 Ending 30 June Total Assets 68,075 48,905 Total Liabilities 27,241 38,720 Net Assets 40,834 10,185 Net Cash 36,045 12,400 Balance sheet can support significant project bonding requirements for larger EPC Con
Slide 10: Revenue and EBIT History
FINANCIAL RESULTS For personal use only Revenue and EBIT history. Revenue ($ Millions) Earnings Before Interest and Tax ($ Millions) 28.3 160.0 142.5 30.0 128.2 23.7 140.0 25.0 21.1 120.0 106.2 20.0 100.0 79.1 80.0 15.0 12.6 60.0 10.0 40.0 5.0 20.0 0.0 0.0 2008A 2009A 2010A 2011A 2008A 2009A 2010A
Slide 11: Revenue Analysis
FINANCIAL RESULTS For personal use only Revenue Analysis Revenue by Service Studies & Studies & Consulting 6% Consulting 11% 2010A 2011A Project Design Project Design & Construction & Construction 94% 89% Revenue by Commodity Nickel Nickel 15% 18% 2010A Other Gold 2011A 2% Other 64% 21% Gold 80% 1
Slide 12: Operational Overview: General
OPERATIONAL OVERVIEW For personal use only General Focused on providing integrated services which enables involvement in the entire project development life cycle: Feasibility studies. Engineering design and construction. Asset management and operational support. Strong in gold, base metal
Slide 13: Operational Overview: Turnkey EPC Contracting
OPERATIONAL OVERVIEW For personal use only Projects delivered via turnkey EPC contracting arrangements. EPC „Risk‟ managed by: Tailoring EPC contracts to reflect client risk profile and needs; provides clients with secure and guaranteed outcomes. Adopting comprehensive risk management and cost
Slide 14: GR Engineering's Clients
OPERATIONAL OVERVIEW For personal use only GR Engineering’s Clients Gold Base Metals Other 14
Slide 15: Operational Overview: FY11
OPERATIONAL OVERVIEW For personal use only FY11 Consistently increased professional and support staff to current +185 from 140 at beginning of FY11 – proven ability to attract high quality personnel. Maintained excellent staff retention rate. Significantly growing Brisbane office – stand alone b
Slide 16: Operational Overview: New Clients and Contracts
OPERATIONAL OVERVIEW For personal use only Consistently attracting new clients as well as retaining existing clients. Increasing involvement in iron ore projects initially via studies and design services. In May 2011 awarded $360M Moly Mines EPC Contract – conditional on full project financing
Slide 17: FY12 Outlook
FY12 OUTLOOK For personal use only Maintain robust financial performance: Carrying forward $100M revenue into FY12. Currently undertaking over 20 feasibility studies of which over 10 are final stage studies and 8 for overseas projects. Recently completed and current final stage studies with
Slide 18: FY12 Outlook: China Demand and Business Model
FY12 OUTLOOK For personal use only China growth and demand will drive base metals, bulk commodities and industrial minerals. Increasing involvement in iron ore projects. Major mining companies are now also looking at EPC project delivery as a result of significant cost/time overruns within alt
Slide 19: FY12 Outlook: Organic Growth
FY12 OUTLOOK For personal use only Maintain excellent industry track record and reputation for cost efficient, timely, safe and „fit for purpose‟ project and services delivery. Suitable M & A opportunities will be considered and evaluated but primary focus on organic growth. Continue organic g