Emeco Holdings Limited · ASX:EHL
Emeco — Non-Deal Roadshow (May 2011)
20 slides from Emeco's roadshow presentation, May 17, 2011
Slide 1: Investor Roadshow - Hong Kong & Singapore
For personal use only Investor Roadshow - Hong Kong & Singapore 17th – 19th May 2011
Slide 2: Presentation Overview
For personal use only Presentation Overview Company Overview Operating Update & Financials Strategy Picture: Emeco 777D
Slide 3: Company Overview
For personal use only Company Overview
Slide 4: What is Emeco?
What is Emeco? Fast facts… For personal use only Emeco is a leading supplier of heavy earthmoving equipment solutions for the mining industry across Emeco closing share price (ASX:EHL) the globe 1.30 Established in Australia in 1972 1.20 1.10 Operations across Australia, Indonesia and Canada 1
Slide 5: Meeting Customers Needs
Meeting Customers Needs Customer requirements vary but Emeco’s solution is used at all stages of mine life For personal use only Emeco’s Mine Mine Core Overburden Mining cycle Construction Development Production (Production) leverage: 6% 19% 42% 33% Customers Flexibility Equipment Mechanical Capital
Slide 6: Customer Case Studies
Customer Case Studies High propensity for initial contract tenure to extend For personal use only Need Customer Fleet Services Site usage Time on Site Flexibility Blue-chip 37x items of plant, based on Full maintenance Primary 3 years miner 2 production fleets of 150tn services & labour mining fleet
Slide 7: Who are our Customers?
Who are our Customers? Leveraged to bulk commodities and gold with significant exposure to production cycle For personal use only Diversified global commodity exposure Customer composition differs by market Australia Indonesia Canada 9% 18% 100% 100% 100% 7% 75% 75% 75% 9% 21% 50% 50% 50% 9% 25% 25%
Slide 8: Operating Segments
For personal use only Operating Segments Funds Employed (Dec-10) EBIT contribution (1H11) 8% 0% 12% 12% Australian Rental Australia 12% Canada Canada 20% 60% Indonesia Indonesia Sales & Parts 76% Sales & P Notes: Graphs represent operating results as at Dec-10; 8 Funds Employed defined as average ‘E
Slide 9: Fleet Strategy
Fleet Strategy Continuing to grow the large mining fleet For personal use only June 09 June 10 Dec 10 Civil Fleet Civil Fleet Civil Fleet 8% 9% 16% WDV: Small Mining Jun-09: $623M 45% Large Large Mining Small Mining Jun-10: $572M Small Mining 36% 55% Large Mining Dec-10: $557M 24% Mining 47% 60% Civ
Slide 10: Safety performance
For personal use only LTI FR (per million hrs) - 10.0 12.0 2.0 4.0 6.0 8.0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Safety performance Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Note: LTIFR measured as number of LTI incidents per million man hours Mar-10 Apr-10 May-10 Our custom
Slide 11: Operating Update & Financials
For personal use only Operating Update & Financials
Slide 12: Rental fleet utilisation
Rental fleet utilisation Specific short-term factors impacting recent utilisation.….however demand for idle fleet remains strong For personal use only Specific short term factors have temporarily impacted utilisation over past two months due to : Average Equipment Utilisation by WDV 100 % After st
Slide 13: Earnings
Earnings Improved earnings in CY10 contributing to improved ROC For personal use only A$ Millions 1H10 2H10 1H11 Var Var Operating Operating Normalised $ % Revenue 208.5 235.9 253.6 45.1 21.6 EBITDA 82.5 107.9 115.0 32.5 39.4 margin (%) 39.6 45.7 45.4 - 5.8 EBIT 32.1 51.5 54.7 22.6 70.1 margin (%) 1
Slide 14: Balance sheet & borrowings
Balance sheet & borrowings Balance sheet capacity and conservative gearing positions Emeco for growth Net Debt & Facility Headroom For personal use only 700 600 Reduced debt profile given strong operating cash 500 flow & capital release 400 A$M 300 200 Conservative gearing of 1.15x (Net Debt:EBI
Slide 15: Strategy
For personal use only Strategy
Slide 16: The Emeco Strategy
The Emeco Strategy Strategy developed to drive business performance with focus on shareholder returns For personal use only Ongoing optimisation of Grow without sacrificing invested capital and quality of earnings earnings Leverage capabilities for Continue to evolve the growth business mode
Slide 17: Business Unit Returns
Business Unit Returns Investment of incremental capital can deliver acceptable returns For personal use only 24.0% R12 at Jun-08 25.0% 23.4% R12 at Jun-09 R12 at Jun-10 20.0% 17.6% R12 at Dec-10 16.6% R6 at Dec-10 15.0% 14.0% 15.0% 13.0% 10.0% 8.8% 5.0% 0.0% GROUP AUS RENTAL (ex VIC) INDONESIA CANAD
Slide 18: Focus on Growth
Focus on Growth Full utilisation and robust demand outlook supports further organic growth investment For personal use only Organic Growth Procurement Strategy Capital Investment Target large mining fleet to enhance FY11 estimated capex portfolio returns • Sustaining: $100-110M (1H11 $50M) • Gro
Slide 19: Company Contact Details
For personal use only Company Contact Details Thank you for your interest in Emeco Further investor enquiries should be directed to: Keith Gordon CEO Stephen Gobby CFO Graham Borgerson Investor Relations emecogroup.com
Slide 20: Disclaimer
For personal use only Disclaimer Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.