Mastermyne Group Limited · ASX:MYE
Mastermyne — FY2020 Earnings Presentation
21 slides from Mastermyne's earnings presentation, Aug 18, 2020
Slide 1: FY2020 Full Year Results Presentation
FY2020 Full Year Results Presentation August 2020 Tony Caruso, CEO & Managing Director Brett Maff, Chief Financial Officer
Slide 2: Mastermyne in excellent shape after another strong year
Mastermyne in excellent shape after another strong year • Safe Operations remains our primary focus with lengthy injury • Final dividend declared of 4.0 cents per share (fully franked) free periods at multiple sites • New projects were won and mobilised at Aquila and Moranbah • Record Revenue and NP
Slide 3: Record Revenue, EBITDA and NPAT all well ahead of the PCP
Record Revenue, EBITDA and NPAT all well ahead of the PCP • Revenue $292.7m vs $238.0m PCP up 23% • $28.6m Reported EBITDA, $21.0m PCP (up 36%) • EBITDA (pre AASB16 impact) $25.6m (up 22%) • 9.8% EBITDA margin, in line with pcp at 8.8% pre AASB16 impact • Disciplined overhead cost management continu
Slide 4: Exceptional cash generation provides for strong balance sheet and shareholder returns
Exceptional cash generation provides for strong balance sheet and shareholder returns • $21.4m Net Cash position after return to shareholders and on-going investment • Dividends $6.1m • Wilson Mining acquisition payment $3.8m • $9.1m net capital expenditure • Strong working capital management suppor
Slide 5: Strong period of investment to support our growth
Strong period of investment to support our growth • Capex expenditure in FY2020 driven by opportunistic investment supported by long term projects • Larger investment than previous periods but will continue to support future margins • FY2020 Capital investment of $13.4m ($9.1m net of funding) • Marg
Slide 6: Safe Operations is still our primary focus
Safe Operations is still our primary focus • Recent industry events reinforce focus on safety for mine workers • The Queensland Parliament passed the Mineral and Energy Resources and Other Legislation Amendment Bill 2020 • Continued focus on risk management and reducing exposure to critical risks •
Slide 7: New projects were won and mobilised and successfully completed NSW projects
New projects were won and mobilised and successfully completed NSW projects • Metallurgical Coal Projects now account for ~95% of total order book • Additional Development Units were brought on at Aquila & Moranbah North Mine (MNM) • Key contracts extended on MNM Umbrella, Integra, Broadmeadow and s
Slide 8: Wilson Mining successfully integrated and poised to deliver further growth
Wilson Mining successfully integrated and poised to deliver further growth • Strategic acquisition complimenting the suite of services already offered • Delivering revenue and margins in line with expectations • Integration successfully completed to schedule and on budget • Building customer base an
Slide 9: Business remains strongly cash positive with significant growth options
Business remains strongly cash positive with significant growth options FY2021 order book • COVID restrictions and impacts globally likely to weigh on coal prices $208 million* • Metallurgical coal prices expected to bounce back sooner than Thermal coal prices FY2022 order book • Starting the year w
Slide 10: We are well positioned to continue our investment in growth and diversification
We are well positioned to continue our investment in growth and diversification 01 02 03 Maximise returns from Expand underground Build a whole of mine core coal business service offering business • Convert current tender pipeline • Leverage Wilson Mining • Assessing multiple WOM opportunities oppor
Slide 11: Market fundamentals remain strong despite some recent weakness in pricing
Market fundamentals remain strong despite some recent weakness in pricing • Coal market remains very strong based on solid fundamentals • The Aust. seaborne trade for Met Coal will remain robust as very few countries have suitable reserves of high quality domestic met coal. • Long term fundamentals
Slide 12: Mastermyne in excellent shape after another strong year
Mastermyne in excellent shape after another strong year • Safe Operations remains our primary focus with lengthy injury free periods at multiple sites • Record Revenue and NPAT well ahead of the PCP (Revenue increased by 23% to $292.7 million and Net Profit up 37%1 to $11.7 million) • Reported EBITD
Slide 13: Appendices
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Slide 14: Corporate Overview
Corporate Overview Shareholder composition Capital structure Retail Investors 53% Share price as at 13 August 2020 $0.78 Shares on issue* 102.3m Institutional Investors 30% Market capitalisation $79.8m Board & Management 17% Net Cash/(Debt) as at 30 June 2020 $21.4m Enterprise value $58.4m Two-year
Slide 15: Board
Board Colin Bloomfield Anthony Caruso Andrew Watts Gabriel Meena Julie Whitcombe Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Colin’s former roles during his 27 years Tony has held a number of senior Andrew co-founded Mastermyne in 199
Slide 16: FY20 Financial Performance
FY20 Financial Performance Period ended 30 June 2020 FY20 FY19* Change Total Revenue $292.7m $238.0m +23.0% Reported EBITDA $28.6m $21.0m +36.2% EBITDA % 9.8% 8.8% +1.0% EBITDA (pre AASB16 impact) $25.6m $21.0m +22.0% EBITDA % (pre AASB16 impact) 8.8% 8.8% 0.0% Statutory profit/(loss) before tax $16
Slide 17: FY20 Cash Flow
FY20 Cash Flow Period ended 30 June 2020 FY20 FY19 $AUD millions EBITDA (Statutory) 28.62 21.01 Movements in working capital 8.15 3.37 Non-cash items 0.29 0.18 Net interest costs (0.75) (0.54) Income tax receipts / (payments) (5.47) (1.76) Net Operating Cash Flow 30.83 22.26 Net capex (including int
Slide 18: FY20 Balance Sheet
FY20 Balance Sheet Assets Liabilities Period ended 30 June 2020 Period ended 31 December 2019 FY20 FY19 FY20 FY19 $AUD millions $AUD millions Assets Liabilities Cash and cash equivalents 25.36 16.42 Trade and other payables 34.14 16.82 Trade and other receivables 49.09 39.17 Lease liabilities 4.92 -
Slide 19: AASB 16 Lease Accounting Standard Impact
AASB 16 Lease Accounting Standard Impact The group has elected not to restate any prior Operating Expenses $3.0m year comparative information in relation to Depreciation $3.1m AASB 16 Leases Profit &Loss Interest Expense $0.3m EBIT Impact $0.1m The Right of Use Asset (“ROU”)has been initially recogn
Slide 20: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided regarding the success of the strategies is subject to uncertainties and contingencies beyond Mastermyne’s information contained in this presentation (the Information). You are advised to read this disclaime
Slide 21: Tony Caruso, Brett Maff
Tony Caruso Managing Director (07) 4963 0400 Brett Maff CFO/Company Secretary (07) 4963 0400