Nrw Holdings Limited · ASX:NWH
Nrw — Shareholder Meeting (November 2014)
29 slides from Nrw's shareholder meeting presentation, Nov 25, 2014
Slide 1: Annual General Meeting
personalise only For ANNUAL GENERAL MEETING Holdings
Slide 2: Chairman – Mr Ian Burston
CHAIRMAN MR IAN BURSTON For personal use only
Slide 3: Board of Directors
BOARD OF DIRECTORS For personal use only L-R: Jeff Dowling (non-executive director), Michael Arnett (non-executive director), Ian Burston (Chairman), John Cooper (non-executive director), Julian Pemberton (CEO).
Slide 4: CEO Update – Mr Julian Pemberton
For personal use only CEO UPDATE MR JULIAN PEMBERTON
Slide 5: Financial Overview
FINANCIAL OVERVIEW For personal use only • Revenue of $1.1 billion • EBITDA – $123.0M, 10.8% of Revenue • EBIT of $65.5M; NPAT of $44.2M • Strong cash position of $155.5M • Net Debt – $34.0M a reduction of $54.6M • Order book maintained at $1.0 billion • Final fully franked dividend • 5 cents per sh
Slide 6: Operational Overview
OPERATIONAL OVERVIEW For personal use only • Awarded largest ever civil contract by Samsung C&T at the Roy Hill Project ($620 million) – 50% complete as at June 14. • Awarded $200 million concrete and civil package for the Roy Hill Minesite. • Awarded Ore Car Repair Shop civil earthworks contract fo
Slide 7: Five Year Snapshot
FIVE YEAR SNAPSHOT For personal use only Revenue Earnings & Dividend Payout Ratio $m's 40.0 60% 1,400 1,200 50% 30.0 1,000 40% 800 20.0 30% 600 400 20% 10.0 200 10% 0 FY10 FY11 FY12 FY13 FY14 - 0% FY10 FY11 FY12 FY13 FY14 1st Half 2nd Half EPS DPS DPR Net Debt / Equity Shareholder equity 40% $m's 35
Slide 8: Health, Safety & Environment
HEALTH, SAFETY & ENVIRONMENT For personal use only 14 • Continued improvement and focus on safety 12 performance across the business, sustaining a positive trend. 10 Frequency rates • The “A Safe Day. Every Day” Program has been 8 refreshed with increased focus on the quality of 6 the leading indica
Slide 9: Human Resources
HUMAN RESOURCES For personal use only • As of the end of June 2014 NRW employed a workforce of 3,092 (compared to 2,283 end June 13) • Key achievements in the year include: − Successful mobilisation of workforce to Roy Hill Rail and Concrete Projects. − Improved mobilisation system and reduced train
Slide 10: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE
Slide 11: Civil Division Highlights
CIVIL DIVISION For personal use only Highlights $m’s $m’s • Continued improvement in safety performance – TRIFR 1,000.0 160 to 2.1 (previously 2.5 at June 13). 860.6 842.3 140 • Revenue similar level to FY13, Margin at 7.1% reflects 800.0 120 more competitive market. 92.0 100 • Secured $620M Roy Hil
Slide 12: Civil Division – Roy Hill Rail Project
CIVIL DIVISION ROY HILL RAIL PROJECT For personal use only Client: Samsung C&T Current status • Total works 87% complete. • Sections 1-3 handed over. Section 4 scheduled to complete this week (27/11/2014). 9.8% 10.7% 10.8% • 290km of the total 330km 7.1% of rail formation complete. • 40km of formati
Slide 13: Civil Division – Roy Hill Concrete Package
CIVIL DIVISION ROY HILL CONCRETE PACKAGE For personal use only Client: Samsung C&T Scope • Concrete and detailed earthworks for the iron ore processing plant, stockyard, overland conveyors and crushing areas. • 5km of rail works for the stackers and reclaimers. Current status • Total concrete Volume
Slide 14: Civil Division – Rio Tinto Projects
CIVIL DIVISION RIO TINTO PROJECTS For personal use only NRW carried out a number of projects for Rio Tinto including: • Mesa J Rail Backtrack; • Mesa J TSF Extension; • Yandi Sustaining Project; 9.8% 10.7% 10.8% works at • ongoing maintenance7.1% Cape Lambert; and • significant additional works at t
Slide 15: Mining Division Highlights
MINING DIVISION For personal use only Highlights $m’s $m’s 500.0 60 • Revenue impacted by major client transitioning 404.5 50 400.0 to dry hire during 2013 and higher activity in the first half of FY13. 40 300.0 • Awarded contract for ERA at Ranger. 186.9 30 200.0 17.9 20 • Awarded Iron Bridge bulk
Slide 16: Action Drill & Blast Highlights
ACTION DRILL & BLAST For personal use only Highlights • Revenue at $110M reflects downturn in market and $m’s $m’s reduced civil drill & blast activity. 175.0 40 150.5 • Margins impacted by lower revenues and asset utilisation. 150.0 35 30 • Awarded a three year contract valued at $60M for drill and
Slide 17: AES Equipment Solutions Highlights
AES EQUIPMENT SOLUTIONS For personal use only Highlights • Revenue and results impacted by significant $m’s $m’s maintenance expenditure cut-backs. 45.0 41.8 45 • Restructure and reduction in overhead costs. 40.0 40 35.0 35 • Obtained formal approval as a preferred supplier of Rio 30.0 28.0 30 25.0
Slide 18: Financial Overview
For personal use only OVERVIEW FINANCIAL
Slide 19: Summary Financials
SUMMARY FINANCIALS For personal use only • Revenue in line with FY14 guidance • EBITDA margin at 10.8% compared to 12.1% reflects more competitive market • Impairment (AMS) relates to downturn in client Opex and lower product sales • Interest costs slightly lower – Debt mostly fixed over 4 to 5 year
Slide 20: Cashflow
CASHFLOW For personal use only $m's • Improved Net debt from $88.6M to 60 $34.0M Nebt Debt Movement - FY14 • Full conversion of EBITDA ($123.0M) 40 into operating cashflow • Capex spend – $29.6M reflects 20 (29.6) completion of current investment 2.3 cycle 0 • Systems development 123.0 (21.2) • Buy
Slide 21: Balance Sheet
BALANCE SHEET For personal use only 400.0 Net Tangible Assets - June 14 • Strong balance sheet with increasing value of cash and net owned equipment. 350.0 18.9 • Net Tangible Assets per share of $1.22 cents • Cash Balances provide risk mitigation and 300.0 allow fast response to changing market 250
Slide 22: Tender Pipeline & Summary
For personal use only TENDER PIPELINE & SUMMARY
Slide 23: Tender Pipeline
TENDER PIPELINE For personal use only • Order book at $0.7 billion in line with project revenues in Q1. Work in Hand – Delivery Profile • Over $150m in new contract awards $ billions 0.8 and extensions since 30 June 2014. • Robust tendering activity valued at $3.4 0.7 billion (cf previous update $2.
Slide 24: Strategy
STRATEGY For personal use only Existing business • Continue our strategy of diversification across client, commodity, location and service delivery. • Drive value through cost control and productivity improvements. • Continue investigation of sectors that are not directly correlated to the mining in
Slide 25: NewGen Drilling Investment Highlights
For personal use only Highlights • NRW has partnered with CalEnergy in an investment in NewGen Drilling (NGD). NGD provides deep drilling services to Australia’s on-shore tight gas and shale basins. • NGD owns one of the most advanced deep gas drilling rigs in Australia, the Huisman LOC400. The rig
Slide 26: Outlook (Market Update)
OUTLOOK (MARKET UPDATE) For personal use only • Revenues in FY15 which remain dependent on the timing of new work are expected to be at the lower end of previously advised guidance of between $1.0b to $1.2b of which circa $0.8b is currently in the order book. • Earnings for FY15 are likely to be mat
Slide 27: Company Outlook
COMPANY OUTLOOK For personal use only • Market conditions continue to be challenging with pressure on commodity prices, miners and the mining services sector. • However, there is currently $1.8 billion dollars of active Civil tenders and $1.1 billion in Mining. Government infrastructure and large pr
Slide 28: Project Locations
For personal use only PROJECT LOCATIONS
Slide 29: Disclaimer & Important Notice
DISCLAIMER & 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 compa