Emeco Holdings Limited · ASX:EHL
Emeco — FY2012 Earnings Presentation
25 slides from Emeco's earnings presentation, Aug 21, 2012
Slide 1: 2012 Full Year Results
For personal use only 2012 Full Year Results Keith Gordon, Managing Director & Chief Executive Officer Stephen Gobby, Chief Financial Officer
Slide 2: Presentation Overview
For personal use only Presentation Overview Year in Review Financials Strategy & Outlook Questions Appendices
Slide 3: Year in Review
For personal use only Kalgoorlie, Western Australia Year in Review Keith Gordon Managing Director & Chief Executive Officer
Slide 4: FY12 Year in Review
FY12 Year in Review Executing strategy delivers significant improvements in shareholder returns For personal use only AT A GLANCE REVENUE $565.2m p 12.5% Focused on returns - ROC improving to 13.2%, up from 11.3% EBITDA $261.7m p 17.2% NET PROFIT $71.1m p 27.0% Operating NPAT up 27% to $71.1M RO
Slide 5: Global Business Snapshot
For personal use only Global Business Snapshot Global utilisation Australia: Deployed FY12 growth capex into production Aug-12 Secured new contracts in gold and iron ore in 1H13 76% Contract renewals with coal customers late in FY12 Customers focused on operating costs and managing capital e
Slide 6: Regional Performance – Australia
Regional Performance – Australia Continuing to deliver high quality returns For personal use only EBIT R12 ROFE Utilisation Aug-12 76% 509 machines, WDV $486M 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Business continues to deliver value creating returns – ROFE of 24.2% on 6 month basis in 2H12 High uti
Slide 7: Regional Performance - Canada
Regional Performance - Canada Increased exposure to oil companies, indigenous contractors and coal miners providing better visibility on demand For personal use only EBIT (AUD) R12 ROFE Utilisation Aug-12 74% 169 machines, WDV $212M 1H10 2H10 1H11 2H11 1H12 2H12 1H13 After poor Q1, enjoyed strong
Slide 8: Regional Performance - Indonesia
Regional Performance - Indonesia Successful deployment of growth capital into new customer contracts For personal use only EBIT (AUD) R12 ROFE Utilisation Aug-12 78% Fleet redeployment post debtor 229 machines, WDV $96M 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Large fleet redeployment in 1H12 underpinne
Slide 9: Regional Performance - Chile
Regional Performance - Chile Market entry in-line with plan For personal use only Progress to date: Country Manager and Operations Manager in place Committed $80M investment over FY13 Fleet First trucks working with large Copper miner redeployment post debtor Opportunity pipeline for future
Slide 10: Financials
For personal use only Financials Stephen Gobby Chief Financial Officer
Slide 11: Financial summary
Financial summary Strategy translating into stronger financial metrics For personal use only FY12 FY11 Var % Revenue up 12.5% PCP to $565.2M REVENUE 565.2 502.5 p 12.5% Operating NPAT $71.1M, up 27% EBITDA 261.7 223.3 p 17.2% EBIT 126.0 101.2 p 24.5% Statutory NPAT $69.7M, up 40.6% NPAT 71.1 5
Slide 12: Earnings composition
For personal use only Earnings composition Revenue Profile Earnings & Margins Revenue growth from investment in Australia, Fixed cost leverage as growth fleet deployed and utilisation improvement offshore Scale & cost focus improving margins in Capital turnover flat due to: Indonesia & Canad
Slide 13: Cash Flow & Capital Expenditure
Cash Flow & Capital Expenditure Strong operating cash flow provides flexibility For personal use only FY12 Cash Flow EBITDA performance delivered 34.2% growth in Sustaining Investment & Operating Shareholder operating cashflow Cashflow returns Working capital efficiency remains a focus +$100M
Slide 14: Balance Sheet & Capital Management
Balance Sheet & Capital Management Balance sheet capacity and funding certainty in place For personal use only Debt Facilities Headroom Strong balance sheet with quality assets $243M and secure debt portfolio $140M USPP increased average maturity from 1.9 to 4.1 years Gearing at 1.47x despite
Slide 15: Return on Capital
Return on Capital Quality in the earnings growth For personal use only ROC, ROFE & INVESTED CAPITAL Strategy focused on: Exit low returning assets/businesses Invest in production focused fleet Target highly productive customers Leverage fixed cost and goodwill Benefit from 1H12 growth ca
Slide 16: Strategy & Outlook
For personal use only Strategy & Outlook Keith Gordon Managing Director & Chief Executive Officer
Slide 17: How has the business changed?
How has the business changed? Business now fitter, more sustainable and well positioned for the future For personal use only Financial performance: Strategy translating to improved earnings and returns Non-core businesses: Exited non-core businesses releasing underperforming capital & earnings drag
Slide 18: Strategic focus
For personal use only Strategic focus Improving our core businesses Executing on organic growth Contract renewals & project sites Securing contracts for new fleet into a priority for Australia Chile over FY13 Build on new customer Consolidate contract wins in relationships in Canada & Indone
Slide 19: Emeco Outlook
Emeco Outlook A diversified portfolio to provide benefits in the year ahead For personal use only Recent production forecasts support medium term outlook Strong enquiry levels in some Australian markets and focus on operating costs in others ‐ Recent contract wins in gold and iron ore ‐ Renewed
Slide 20: Questions
For personal use only <INSERT PICTURE> Hitachi EX3600, Queensland Questions
Slide 21: Further Information
For personal use only Further Information 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 22: Appendices
For personal use only Appendix Hitachi EX3600, Queensland Appendices
Slide 23: Detailed Financials
Detailed Financials Cash flow For personal use only Profit & Loss A$ Millions FY11 FY12 A$ Millions FY11 FY12 Var A$ m A$ m Operating Operating % Ca s h from opera tions 196.3 252.5 Revenue 502.5 565.2 12.5 Interes t & Borrowi ng cos ts (22.6) (24.3) EBITDA 223.3 261.7 17.2 Income ta x pa yments (14
Slide 24: Geographic Segments
For personal use only Geographic Segments Australia Indonesia Canada Operating Results Operating Results Operating Results FY11 FY12 Var % FY11 FY12 Var % FY11 FY12 Var % Revenue 327.2 383.3 17.1% Revenue 44.6 49.9 12.0% Revenue 64.9 67.2 3.5% EBITDA 185.3 215.7 16.4% EBITDA 21.0 25.2 19.9% EBITDA 3
Slide 25: 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.