Nrw Holdings Limited · ASX:NWH
Nrw — Shareholder Meeting (November 2023)
30 slides from Nrw's shareholder meeting presentation, Nov 29, 2023
Slide 1: NRW Holdings Limited - 2023 Annual General Meeting
NRW Holdings Limited - 2023 Annual General Meeting Presentation by Mr Jules Pemberton, CEO and Managing Director 29 November 2023 Introduction FY23 brought about distinct challenges, including severe weather conditions in Queensland, client-initiated project delays and industry-wide issues like cost
Slide 2: Diversification strategy and business model
Our strategic acquisitions have enabled the diversification of our business model – substantially de-risking the business. This change has significantly enhanced the number of opportunities for us to participate in the development of new projects and the expansion of existing projects as we now have
Slide 3: Delivering the strategy is changing the nature of the business
mine development and operation opportunities coming to market, which is an exciting recent development. Delivering The Strategy Is Changing The Nature Of The Business As the strategy is implemented, the nature of the Group’s business is changing – which can be seen in these charts which show the rel
Slide 4: Revenue & Earnings Per Headcount
Revenue & Earnings Per Headcount Another important change that NRW’s diversified business model is delivering is a change in the direct relationship between revenue and earnings growth, and headcount. In a pure projects or engineering consulting business, growth can only be achieved by increasing he
Slide 5: Lithium projects and North America lithium capex
• Covalent’s Mt Holland project’ • Allkem’s Mt Cattlin project • Liontown’s Kathleen valley project • Talison’s Greenbushes project • Pilbara Mineral’s Pilgangoora project and • Tianqi Lithium’s refinery With this established track record of demonstrated success in lithium process plant design, cons
Slide 6: Climate Change, People and Culture, Community Support
Climate Change: During the year, the Board endorsed our carbon reduction target. NRW are committing to a 25% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2030. We have a very clear pathway to achieve this goal, which includes opportunities to partner with suppliers and clients. Peopl
Slide 7: Mining
Mining The Mining segment delivered solid growth during the year despite the La Niña weather pattern impacts experienced in first seven months. During FY23 new multi-year contracts were secured including: • Jellinbah East $230M, • Talison Lithium $300M and • Allkem Mt Cattlin lithium $332M. There we
Slide 8: Outlook and conclusion
Having successfully concluded challenging contracts in FY23, anticipating a better operating environment, and securing more balanced risk-sharing contract structures in our current project portfolio, we anticipate significantly improved performance across the Group in FY24 and beyond. This is underp
Slide 9: Annual General Meeting
29 NOVEMBER 2023 2023 ANNUAL GENERAL MEETING
Slide 10: FY23 Highlights - Updated
FY23 HIGHLIGHTS - UPDATED $2.7B $166.3M Revenue EBITA 120+ $227.6M Projects Cash Holdings $5.9B $2.9B Order Book Secured Work FY24 $3.0B Secured Work FY25 + Beyond 2
Slide 11: Our Growth Strategy
2023 OUR GROWTH STRATEGY OFI ACQUISITION OFI adds process controls, Long-term acquisition instrumentation design, switchboard/panel manufacture, strategy to diversify the NEW E&I CAPABILITY & MARKETS and electrical installation capability, together with an entry business model to create to Defence c
Slide 12: Diversified Business Model
DIVERSIFIED BUSINESS MODEL The strategy has successfully created a diversified end-to-end capability applicable to civil and public infrastructure and utilities. PROCESS & DESIGN MINE DEVELOPMENT DRILL & BLAST MINING CIVIL INFRASTRUCTURE MATERIAL HANDLING OEM PROCESS PLANT E&I AUTOMATION LOAD OUT IN
Slide 13: Delivering the Strategy Is Changing the Nature of the Business
DELIVERING THE STRATEGY IS CHANGING THE NATURE OF THE BUSINESS STATUTORY REVENUE BY SEGMENT $M (Excluding Corporate Eliminations) 3000 Mining: still the largest revenue contributor and will continue to be so 2500 for the medium term. 2000 Civil: is a key contributor and provides strategic diversific
Slide 14: The Nature of the Business Is Changing
THE NATURE OF THE BUSINESS IS CHANGING Capital intensity: ratio of tangible fixed assets to revenue • Capital intensity is reducing from 22% in FY19 to 18% in FY23 – NRW’s historical model of growing revenue by investing in mobile plant is changing. • MET is capital light as compared to the traditio
Slide 15: The Nature of the Business Is Changing
THE NATURE OF THE BUSINESS IS CHANGING Revenue and earnings per headcount relationship is changing • The direct relationship between growth in revenue and headcount is diminishing. • Revenue and earnings per headcount is increasing – meaning that headcount growth is not the sole enabler for revenue
Slide 16: Near Term Growth Opportunities - Iron Ore Capex
NEAR TERM GROWTH OPPORTUNITIES - IRON ORE CAPEX URBAN INFRASTRUCTURE IRON ORE – NON PILBARA • In FY21, over 20% of NRW’s revenue (approx. $500M) was derived from 4% Pilbara iron ore Civil and Mining projects. 10% 17% • In FY23 – a year of record revenue and earnings, only 9% of NRW’s revenue (approx
Slide 17: Near Term Growth Opportunities - Australian Lithium Capex
NEAR TERM GROWTH OPPORTUNITIES - AUSTRALIAN LITHIUM CAPEX • 10% of revenue in FY23 was derived from lithium projects (capex projects, mining, O&M and engineering). • FY24 capex forecast at $3.8B and in total $7.5B over the 3 years to FY27. NRW already has a well-established presence in this sector.
Slide 18: Medium Term Growth Opportunities - North American Lithium Capex & IP
MEDIUM TERM GROWTH OPPORTUNITIES - NORTH AMERICAN LITHIUM CAPEX & IP • Global reputation for process design and construction expertise. • HQ in Montreal and offices in Houston and Toronto. Global James Bay Area, QC workflow model delivers world leading expertise through a Nemaska Lithium Concentrato
Slide 19: Environment Social & Governance
ENVIRONMENT SOCIAL & GOVERNANCE 11
Slide 20: Sustainability
SUSTAINABILITY HEALTH AND SAFETY • Remains our top priority. • Strengthened Critical Risk Management focus. • Implemented a Group wide integrated Health, Safety and Environment management system. CLIMATE CHANGE • Carbon reduction commitment set of a 25% reduction in Scope 1 and Scope 2 greenhouse ga
Slide 21: Business Segment Performance & Outlook
BUSINESS SEGMENT PERFORMANCE & OUTLOOK 13
Slide 22: Civil
WW sped ueyy “pund i lewis YH ca Py
Slide 23: Civil
CIVIL RESULTS CIVIL PROJECTS • Revenue increased by 13.9% to $550.3M. • EBIT $20.7M, margin of 3.8%. OUTLOOK • Improving near-term view as number of projects coming to market is growing and available capacity is diminishing across resources and public infrastructure sectors: o Iron ore replacement a
Slide 24: Mining
MINING 16
Slide 25: Mining
MINING RESULTS MINING PROJECTS • Revenue increased to $1,441.0M from $1,273.2M in FY22. • EBIT increased to $134.1M compared to $106.6M with FERTILISERS Phosphate Hill Fertili sers margin growth from 8.4% to 9.3%. GOLD Dalgaranga Gold OUTLOOK Bellevue Gold IRON ORE Atlas Mt Webber • FY24 revenue ful
Slide 26: Minerals, Energy & Technologies
MINERALS, ENERGY & TECHNOLOGIES 18
Slide 27: MET
MET RESULTS MET PROJECTS (Excluding studies) • Revenue increased to $729.1M from $690.7M in FY22. BASE METALS KCGM Growth project enabling works Fimiston Stage 1 • EBIT $30.5M, margin of 4.2%. Fimiston Stage 2 Base Metals DHHI Atlas Iron Stockyard APF & BFD RTIO Western Range APF FMG Christmas Creek
Slide 28: Summary
SUMMARY 20
Slide 29: Outlook & Guidance
OUTLOOK & GUIDANCE OUTLOOK UPDATED GUIDANCE • Near-term tender pipeline capable of being awarded in next 12 • FY24 full year revenue will exceed $2.9B. months is $17.1B at June 23. • Earnings (EBITA) for FY24 are expected to be between • Group’s order book was $5.9B at August 23. $175.0M to $185.0M,
Slide 30: Disclaimer
DISCLAIMER SUMMARY INFORMATION This Presentation contains summary information about NRW and its associated entities and their activities current only at the date of this Presentation. This Presentation is for general information purposes only and does not purport to be complete. The content should b