Nrw Holdings Limited · ASX:NWH
Nrw — CommSec Mining Services Industry Tour and Conference (October 2007)
26 slides from Nrw's conference presentation, Oct 9, 2007
Slide 1: CommSec Mining Services Industry Tour and Conference
For personal use only CommSec Mining Services Industry Tour and Conference 9 October 2007
Slide 2: Presentation team
Presentation team For personal use only Jeffery McGlinn—Chief Executive Officer Years experience: 27 Years at NRW: 13 Founding shareholder and CEO of NRW Began career as a mechanical tradesman working at various mining sites Previously the Managing Director of Trustek Australia, before its sal
Slide 3: Business overview
For personal use only 3 Business overview
Slide 4: History
History For personal use only Key milestones 1994—NRW established by Jeff McGlinn and John Silverthorne 1997—Established presence in the Pilbara 2002—Completed first of 19 rail sidings for BHP at Newman and pre-strip operations at Mt Whaleback 2002—Achieved Rio Tinto pre qualification status
Slide 5: Business overview
Business overview For personal use only Complementary and diversified service offering to the resources sector Civil Contracting Mining Services FY2006 revenue $115.0m FY2006 revenue $30.1m FY2006 revenue $33.1m FY2006 revenue $11.9m FY2007 revenue $162.0m FY2007 revenue $77.8m FY2007 revenue $28.6m
Slide 6: Key clients
Key clients For personal use only NRW is firmly integrated into major resource companies’ supply chains 6
Slide 7: Civil Contracting
Civil Contracting For personal use only NRW Civil Contracting projects have included Bulk earthworks Argyle Project rehabilitation Conveyor line preparation Pilbara region Access road construction See inset Port Hedland (Redbank Bridge) Rail sidings Tailings dams Cloud Break ROM pads
Slide 8: Civil Contracting: Example of current projects
Civil Contracting For personal use only Example of current projects Project name Description Cloud Break Construction of approximately 105 km of rail formations between Cloud Break Rail and Camp Project Mine and Port Hedland including drill and blast and culvert installation Fortescue Metals Group
Slide 9: Mining Services
Mining Services For personal use only Tiwi Islands NRW Mining Services provides contract mining services to mining companies and has extensive experience developing Ellendale mines in remote locations Pilbara region NRW Mining Services has See inset undertaken significant work in the iron ore, c
Slide 10: Mining Services: Example of current projects
Mining Services For personal use only Example of current projects Project name Description Tom Price Mining Excavation, haulage and waste dump management Rio Tinto services In-pit works including pre development pit establishment, waste prestripping, waste cutback and remnant ore mining Tiwi Isl
Slide 11: Promac
Promac For personal use only Promac Tyre Sales Promac has exclusive distribution rights for Patron Saint (bias ply) and Amberstone (radial) OTR tyres in Australia Tyres are very competitively priced Strong factory-backed warranty (3,000 hours) Promac Equipment Rental and Sales Promac has the
Slide 12: Action Mining
Action Mining For personal use only Established in 1986 Provides equipment repairs, painting services, service truck and tanker fabrication and quarantine services One of the largest repair and maintenance providers in Australia that is not affiliated with an original manufacturer Operations
Slide 13: Detailed reporting systems
Detailed reporting systems For personal use only Operator docket Systems track on a daily basis for each project: Income All classes of expenses—labour, fuel, parts Tyre wear by machine and operator Machine hours and maintenance Operators dockets processed at end of shift Centralised p
Slide 14: Detailed reporting systems: Daily Profit & Loss Summary
Detailed reporting systems For personal use only Daily Profit & Loss Summary – reports accurate actual cash costs and revenue streams from all projects 14
Slide 15: Detailed reporting systems: Tyre Maintenance system
Detailed reporting systems For personal use only Tyre Maintenance system – Accurately monitors tyre wear, site ground conditions and repair / warranty recommendations 15
Slide 16: Management and employees
For personal use only Management and employees 16
Slide 17: Senior management
Senior management For personal use only Chief Executive Officer Jeffery McGlinn Year experience: 27 Managing Director, NRW Civil and Mining John Silverthorne Years experience: 28 Chief Operating Officer Julian Pemberton Years experience: 18 Managing Director, Chief Financial Managing Director, Compa
Slide 18: People and safety
People and safety For personal use only 1,500 1,441 5.0 NRW employs 661 staff together with 3.9 1,200 4.0 a significant number of contractors 3.6 High employee retention rates Man Hours ('000) 900 3.0 Active indigenous employment 822 LTIFR 2.1 programme 2.1 Approximately 10% of total employe
Slide 19: Growth opportunities
For personal use only Growth opportunities 19
Slide 20: Strong industry growth
Strong industry growth For personal use only Iron ore sector Strong demand for civil and mining contractors, mining equipment and maintenance services Analysts have increased their expectations for iron ore prices Now forecasting an increase of between 25-50% next year Key clients have announc
Slide 21: Growth opportunities
Growth opportunities For personal use only Civil and Mining Participate in continued rapid growth in production of WA iron ore Service expansion Whole of mine operation Geographic expansion Recently won contracts in Tiwi Islands and ERA’s Ranger Uranium mine in NT Low risk offshore expan
Slide 22: Financial summary
For personal use only 22 Financial summary
Slide 23: Track record of growth
Track record of growth For personal use only Revenue EBITDA EBIT 500.0 100.0 440.4 75.0 85.4 64.2 CAGR: 93% 400.0 CAGR: 79% CAGR: 115% 75.0 277.6 50.0 300.0 A$m A$m A$m 50.0 45.2 33.6 186.2 200.0 31.8 25.0 25.0 25.0 100.0 76.7 11.9 6.5 0.0 0.0 0.0 FY2005A FY2006A FY2007A FY2008F FY2005A FY2006A FY20
Slide 24: Strong margins
Strong margins For personal use only Pro forma revenue and EBIT margin (%) Strong margins due to: 500 16% 14.6% Reputation for quality of work 450 13.4% 14% Efficient execution of projects 400 12.1% 12% Capital discipline 350 Detailed and timely reporting systems Revenue (A$m) 10% EBIT mar
Slide 25: Conclusion
For personal use only 25 Conclusion
Slide 26: Conclusion
Conclusion For personal use only Leading provider of services to the resources sector Complementary and diversified service offering Long term relationships with blue chip clients Detailed reporting systems Significant growth opportunities Exposure to growth in WA iron ore production Geogr
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