Mader Group Ltd · ASX:MAD
Mader — Shareholder Meeting (November 2019)
27 slides from Mader's shareholder meeting presentation, Nov 29, 2019
Slide 1: FY2019 CEO AGM Presentation
FY2019 CEO AGM Presentation MADER GROUP LIMITED | 29 November 2019
Slide 2: CEO's Address
CEO’s Address Patrick Conway Mader Group Limited AGM | November
Slide 3: Board of Directors
Board of Directors Jim Walker Luke Mader Craig Burton Patrick Conway Justin Nuich Non-Executive Founder and Non-Executive Director Executive Director and Non-Executive Chairman Executive Director Chief Executive Officer Director Over 45 years’ experience in the Founder of Mader Group. A venture capi
Slide 4: Safety & People
Safety & People Our goal is zero harm and we will continue to Injury frequency rates work with our employees and clients to achieve 7 this. 6 • Total recordable injury frequency rate 5.35 • Lost time injury frequency rate 0.82 5 • Continuous improvement to HSE systems and 4 process: • Implemented ne
Slide 5: FY2019 Highlights
Revenue by Region FY2019 Highlights 250 200 REVENUE $228.6 M Revenue A$ m 150 YOY REVENUE GROWTH 100 46.4% 50 EBITDA 0 $25.5 M 2017 2018 2019 WA QLD/NSW SA/NT International USA EBIT $21.6 M • Officially listed on the ASX • Net profit after tax increased from $11.4m in FY2018 ADJUSTED NET PROFIT AFTE
Slide 6: Industry Outlook
Industry Outlook Total Maintenance Expenditure (Mining) $13.10 $12.50 $12.10 $10.00 Growth in mining tonnes produced + aging fleets = $9.70 increasing demand for maintenance labour $8.70 DOLLAR VALUE ‘BN $7.90 $7.40 $7.30 $7.00 A range of positive underlying trends for Mader: • Increasing forecast m
Slide 7: Group Outlook
Group Outlook Revenue by Region Financial • Group net profit* in line with 80 Guidance prospectus forecast. • Revenue up 6% from Q4 2019 70 • Revenue up 23% from Q1 2019 • Purely organic growth REVENUE UP 60 • Dividend intended for March 2020 – 23% 1.5c per share Revenue A$ m 50 From Q1 2019 40 Outl
Slide 8: Western Australia Outlook
Western Australia Outlook Region Revenue up 50 Financial • Western Region Q1 FY2020 revenue up 6% Guidance from Q4 FY2019 • Pilbara Quarterly Revenue up 9% 6% 45 • Goldfields Quarterly Revenue up 9% 40 • Perth Metro down 10% 35 • Revenue up on forecast Pilbara • Profit* up on forecast Revenue up 30
Slide 9: East Coast Outlook
East Coast Outlook 14 Region Financial • Eastern Region Q1 FY2020 revenue up 21% from Revenue up by Guidance Q4 FY2019 • QLD revenue up 19% 12 21% From Q4 2019 • NSW revenue up 27% • Revenue and profit* up on forecast • Growth purely organic 10 QLD Revenue A$ 'm • Demand in Bowen Basin, Surat Basin
Slide 10: Central Corridor Outlook
Central Corridor Outlook 6 5 Financial • Steady revenue Guidance • Recent division spin off (Q2 FY2020) to resource management team with a 4 dedicated regional focus in Q2 FY2020 Revenue A$ 'm NT Outlook • Currently 8% of group monthly turnover; 3 SA focus to increase revenue in the SA and NT region
Slide 11: International Outlook
International Outlook Financial • Revenue and profit* softened in Q1 FY2020; expect further softening in Q2 FY2020 due to reduced 7 Guidance contract volumes. 6 • Revenue softening in Mongolia for Q3 FY2020 Outlook 5 • Re-allocation of internal employees to Australian Revenue A$ 'm contracts has occ
Slide 12: United States of America Outlook
United States of America Outlook Revenue growth of Financial Guidance • • Q1 FY2020 in profit* Revenue and profit* exceeding forecast 2.0 107% From Q4 2019 • 107% revenue growth from Q4 FY2019 to Q1 FY2020 1.8 Outlook • Strong organic growth into recently established regions, 1.6 working at or vende
Slide 13: Appendices
Appendices Y/
Slide 14: Our Journey
Our Journey 1249 employees (as at 31 Oct 2019) Mader lists on the Australian Stock Exchange 927 employees Mader enters USA 567 employees Mader enters NSW and SA 251 employees Mader enters QLD Mader opens first Mader International 100 employees Mader established workshop launched 2005 2009 2011 2012
Slide 15: Expanding Global Platform
Expanding Global Platform EAST ASIA Mongolia Northern Territory USA Tanami Nevada Queensland Wyoming Brisbane Arizona Bowen Basin Tennessee Surat Basin New Mexico Far North Queensland New South Wales AFRICA Hunter Valley Mauritania Gunnedah Basin Senegal Western Australia Southern NSW Mali Pilbara A
Slide 16: Competitive Position
Competitive Position Mader believes it differs from its competitors on its combination of value, flexibility, quality and capacity. Longstanding relationships with top tier mining customers are built on quality of service and a focus by the Mader Group on its people, culture and reputation. MARKET S
Slide 17: System & Scheduling
System & Scheduling Mader Group coordinators strategically pair skilled staff with corresponding projects that match their skillset and availability. This sophisticated scheduling system has been developed and continuously refined since the company’s inception. Mutual Flexibility Clients Workforce T
Slide 18: Growth opportunities and addressable market
Growth opportunities and addressable market MTPA means Million Metric Tonnes Per Annum (FY2018 Run of Mine Production) ▪ Current markets ▪ Recently entered markets ▪ Potential markets CENTRAL ASIA MTPA CANADA MTPA Mongolia 123 Canadian Copper (excl. Gold) 88 Canadian Gold 155 SOUTH EAST ASIA MTPA (i
Slide 19: Top Tier Client Base
Top Tier Client Base Mader Group Limited AGM | November www.madergroup.com.au
Slide 20: Corporate Social Responsibility
Corporate Social Responsibility Mader Group aim to empower communities, improve social dynamics and lessen inequality by sponsoring initiatives that support socio-economic development in remote areas and disadvantaged communities. We help fund a growing number of initiatives across the globe, with p
Slide 21: Profit & Loss
Profit & Loss Historical Forecast Currency: A$’000 FY17 FY18 FY19 FY20 Revenue 99,252 156,208 228,645 279,176 … % growth 35.2% 57.4% 46.4% 22.1% EBITDA 10,174 18,603 25,454 33,836 … EBITDA margin 10.3% 11.9% 11.1% 12.1% EBIT 8,440 15,551 21,628 28,097 … EBIT margin 8.5% 10.0% 9.5% 10.1% Net Profit B
Slide 22: Balance Sheet
Balance Sheet Currency: A$’000 Jun 18 Jun 19 Cash and cash equivalents 8,246 3,049 Receivables 39,366 54,495 Tax Assets 1,701 1,896 Other assets 2,854 1,820 Property, plant and equipment 12,736 26,247 Total assets 64,903 87,507 Payables 18,388 24,809 Borrowings 14,794 24,228 Provisions 696 1,140 Tax
Slide 23: Cash Flow
Cash Flow Historical Forecast Currency: A$’000 FY17 FY18 FY19 FY20 Earnings before interest and tax 8,440 15,551 21,628 28,097 Interest received (paid) (347) (489) (1,475) (1,139) Income tax paid (2,649) (4,159) (2,800) (7,432) Depreciation 1,734 3,052 3,826 5,196 Movement in payables 2,412 10,862 3
Slide 24: Notes to financials
Notes to financials Historical Forecast Currency: A$’000 FY17 FY18 FY19 FY20 Statutory net profit after tax 6,206 11,353 14,900 18,853 Public company costs1 (523) (523) (228) - One-off offer costs2 - - 908 671 Impact of accounting standard AASB 16 (26) (19) (267) (18) Impact of income tax3 165 163 (
Slide 25: Our Vision
Our Vision To b e t h e o u t s o u r c e d p r o v i d e r o f c h o i c e ▪ To maintain our superior customer service, people and culture ▪ To be the first choice place of employment for quality tradespeople in equipment maintenance ▪ To replicate and grow our business model
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Mader Group Limited (ACN 159 340 397) “Mader”, “Mader Group” and the “Company”). The information contained in this presentation is for information purposes only. The information contained in this presentation is not investment or financial product ad
Slide 27: Mader Group Limited
Mader Group Limited