Monadelphous Group Limited · ASX:MND
Monadelphous — H1 FY2016 Earnings Presentation
21 slides from Monadelphous's earnings presentation, Feb 16, 2016
Slide 1: 2016 Half Year Results
2016 Half Year Results For personal use only Tuesday 16 February 2016
Slide 2: Company Profile
Company Profile For personal use only Monadelphous Group Limited (ASX:MND) is a S&P/ASX 200 company that provides construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australasia. Earnings Dividends People Revenue NPAT People Revenue Earnin
Slide 3: Group Highlights
Group Highlights For personal use only • Sales revenue $737m, down 29.9% • NPAT $37.6m, down 37.9% • EPS 40.4c, DPS 28.0c • Cashflow from operations of $42.5m, conversion rate of 87% • Awarded ~$1b of new contracts and contract extensions • Strong safety performance – 10% improvement • Cost reductio
Slide 4: Contract Activity
For personal use only 4 Contract Activity
Slide 5: Sales Revenue Analysis
Sales Revenue Analysis For personal use only End Customer Market Service Market Geography 5
Slide 6: Contracts Secured ~ $1 billion
Contracts Secured ~ $1 billion For personal use only 6
Slide 7: Safety
Safety For personal use only Injury Frequency rates* • Record safety performance – TCIFR improved by 10% • Continuing focus on risk management and frontline safety leadership. 7
Slide 8: People
People For personal use only Employee Numbers Employees by Division • Overall employee numbers remain stable with large changes within divisions • Engineering people numbers continued to reduce in line with the slowing construction offset by increasing maintenance activity • Improved availability of
Slide 9: Financial Performance
Financial Performance For personal use only Unit HY16 HY15 Change Sales Revenue $m 737.0 1,052.0 (29.9%) EBITDA $m 62.7 95.1 (34.0%) EBITDA Margin % 8.5 9.0 (0.5pp*) NPAT $m 37.6 60.7 (37.9%) NPAT Margin % 5.1 5.8 (0.7pp*) EPS cps 40.4 65.4 (38.2%) Operating Cash Flow $m 42.5 56.4 (24.6%) DPS (Fully
Slide 10: Financial Position and Funding
Financial Position and Funding For personal use only Maintained strong balance sheet HY16 HY15 Change $m $m Cash at Bank 202.6 212.4 (4.6%) Net Cash Position 182.7 184.4 (0.9%) (Cash less interest bearing loans and borrowings) Capital Expenditure 4.5 1.1 309.1% (Cash and Hire Purchase) Bank Guarante
Slide 11: Historical Performance
Historical Performance For personal use only ^Underlying basis. 11
Slide 12: Cash Flow Performance
Cash Flow Performance For personal use only Operating Cash Flow Cash Flow Conversion • Maintained strong balance sheet, solid cash flow and robust cash flow conversion. ^Underlying basis. 12
Slide 13: Net Profit After Tax Analysis
Net Profit After Tax Analysis For personal use only NPAT Waterfall ($m) 13
Slide 14: Engineering Construction
Engineering Construction For personal use only Highlights End Customer Sales Revenue ($m) • Established presence in USA • Secured work in new overseas markets • Expanded presence in water infrastructure. Major Project Activity • Sino Iron, SMP works for Sino Iron Project, Cape Preston, WA • JKC, SMP
Slide 15: Maintenance and Industrial Services
Maintenance and Industrial Services For personal use only Highlights End Customer Sales Revenue ($m) • Maintained revenue in challenging market • Worked closely with customers to improve productivity • Awarded $900m of new contracts and extensions • Strengthened leading position in oil and gas servi
Slide 16: Australian Market Conditions
Australian Market Conditions For personal use only Total Resources (A$b) Total Energy (A$b) Source BIS Shrapnel – Mining in Australia (released November 2015) Source BIS Shrapnel – Mining in Australia (released November 2015) Total Infrastructure (A$b) Total Maintenance (A$b) Source BIS Shrapnel - V
Slide 17: Strategic Progress
Strategic Progress For personal use only • Secured 3 new long-tem LNG maintenance contracts: Chevron Barrow Island (3 years) Maximise our position in Shell Prelude FLNG (7 years) Woodside Karratha Life Extension (2 years) core markets • Secured new panel service contracts and wellhead skids fo
Slide 18: Outlook
Outlook For personal use only • Australian market conditions to remain challenging with customers minimising capital and operating costs • Opportunities for new major construction contracts likely to remain at low level • Outlook for maintenance is positive and Company in a strong position to capita
Slide 19: Notes to Financials
Notes to Financials For personal use only Non-IFRS Financial Information 31-Dec 31-Dec 2015 2014 $’000 $’000 Monadelphous Group Limited results are reported under EBITDA International Financial Reporting Standards (IFRS) as issued Profit before income tax 53,188 84,622 by the International Accountin
Slide 20: Important Notice
Important Notice For personal use only Disclaimer Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Monadelphous Group Limited or any other
Slide 21: For more information
For more information For personal use only Investor Relations Telephone: +61 (08) 9315 7312 Email: investor_relations@monadel.com.au www.monadelphous.com.au