Nrw Holdings Limited · ASX:NWH
Nrw — FY2021 Earnings Presentation
29 slides from Nrw's earnings presentation, Aug 19, 2021
Slide 1: NRW Holdings FY21 Full Year Results
Main Roads WA NRW HOLDINGS FY21 FULL YEAR RESULTS 19 AUGUST 2021
Slide 2: Results Overview
RESULTS OVERVIEW FINANCIAL COVID-19 IMPACT • Revenue up 11.5% to $2.3B in line with guidance. • Major challenge is ongoing management • Earnings (EBITDA) increased to $266.7M up 6.7% compared to FY20; Earnings of our people to ensure their day-to-day (Operating EBIT) of $120.6M were lower than FY20
Slide 3: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE
Slide 4: Workforce
WORKFORCE SAFETY • Continued focus on welfare and safety of workforce including the impact of COVID-19 – the workforce adhered to revised operating procedures as a consequence of COVID-19 and responded well to these challenges. • Total Recordable Injury Frequency Rate (TRIFR) at June 2021 6.25 compa
Slide 5: Sustainability
SUSTAINABILITY REPORTING AND ONGOING INITIATIVES • NRW is preparing its first Sustainability Report that will be published in September 2021. This report will highlight the alignment of NRW’s corporate values and operations with the United Nations Sustainable Development Goals (SDGs) and be guided b
Slide 6: Workforce: COVID Challenges (Pilbara)
WORKFORCE: COVID CHALLENGES (PILBARA) TWO KEY ISSUES OVER THE LAST 12 MONTHS Resource availability • Major impact through calendar 2020 during a record period of activity. • Current resource requirements particularly in the Pilbara significantly lower than peak mid 2020 circa 900 (July 2021) v circa
Slide 7: Workforce Major Project Locations
WORKFORCE MAJOR PROJECT LOCATIONS ROPER BAR Long term contract but relatively new – some challenges but turnover rates improving QLD COAL PROJECTS PILBARA PROJECTS Stable workforce Workforce requirements significantly lower – headcount transitioning to new projects, mining and Strandline NORTHERN DA
Slide 8: Financial Overview
FINANCIAL OVERVIEW Holdings
Slide 9: Earnings
EARNINGS • Revenue growth in Mining and MET segments - BGC (Dec 2019), Primero (Feb 2021). • Earnings (EBITDA) increased 6.7% primarily due to the inclusion of mining activities acquired from BGC in FY20. • Operating EBIT impacted by Pilbara based projects due to high staff turnover, labour rate inc
Slide 10: Balance Sheet
BALANCE SHEET • Boggabri transaction - (shown in pro forma numbers as post year end) comprised sale of $82.6M of mining equipment. • Debt repayments included asset financing repayments of $60.7M, and $21.4M of corporate debt (now fully repaid) mostly relating to business acquisition finance. • New a
Slide 11: Cash Flow
CASH FLOW • Net cash from operating activities includes circa $66.6M working capital movement due to costs incurred on projects the subject of outstanding claims at year end (see Civil slide). • Other operating cash outflows include repayment of BGC Contracting advances and close out of non performi
Slide 12: Business Structure & Performance
BUSINESS STRUCTURE & PERFORMANCE
Slide 13: End-to-End Delivery Capability
END-TO-END DELIVERY CAPABILITY Primero acquisition further enhances delivery 2017 GEOGRAPHIC capabilities across our business. EXPANSION ACQUISITION GOLDING Increased exposure to east coast civil infrastructure, urban and mining markets. INCREASED 2019 CAPABILITIES ACQUISITION RCR MINING TECHNOLOGIE
Slide 14: Business Structure
BUSINESS STRUCTURE REVENUE FY21 REVENUE FY21 REVENUE FY21 $726.5M $1,177.2M $426.9M 11% 11% 128% CIVIL MINING MINERALS, ENERGY & NRW Civil NRW Mining TECHNOLOGIES Golding Civil Golding Mining Primero Golding Urban Action Drill & Blast RCR Mining Technologies AES Equipment Solutions DIAB Engineering
Slide 15: Civil
CIVIL
Slide 16: Civil
CIVIL RESULTS CIVIL PROJECTS • Revenue peaked in calendar year 2020 due to Iron Ore projects including • Resources work won by BGC Contracting acquired in December 2019. o Eliwana stage 1 rail - complete o Most major projects completed early in the second half of FY21 resulting in o Eliwana stage 2
Slide 17: Mining
MINING
Slide 18: Mining
MINING RESULTS • Growth in revenue - addition of BGC Contracting’s mining activities which contributed full 12 months compared to seven months in FY20. • Earnings impacted by: o COVID-19 measures on Pilbara iron ore project (now complete); o Staff retention; and o Unseasonal weather events (WA and Q
Slide 19: Karara
KARARA The Karara mine is the largest mining operation and the first major magnetite mine in the Mid West. • NRW and Karara Mining have commenced work on the PROJECT mobilisation plan to ensure a seamless transition of operations in Client Karara Mining. Magnetite mine site, March 2022. 200kms south
Slide 20: Mining Contracts
MINING CONTRACTS • Chart below shows Contract status for all current mining activities – with most projects showing full order cover for FY22, (Karara covered by notice of award). • Key contract extensions include Curragh where we have LOI for five year contract extension. • Other projects subject t
Slide 21: Minerals, Energy & Technologies
MINERALS, ENERGY & TECHNOLOGIES
Slide 22: Minerals, Energy & Technologies (MET)
MINERALS, ENERGY & TECHNOLOGIES (MET) RESULTS MET PROJECTS • Revenue increased due to addition of Primero from February 2021 and • Cloudbreak Hopper 9 - complete growth in RCR Mining Technologies (RCRMT) and DIAB Engineering. • Queens Primary crusher - ongoing - awarded in FY21 • RCRMT and DIAB Engi
Slide 23: Summary
SUMMARY Holdings
Slide 24: Outlook
OUTLOOK • Group Order book at 30 June 2021 was $3.4B, (or at least $4.4B including Curragh LOI) compared to $3.0B at the same time last year. • The near term tender pipeline capable of being awarded in the next 12 months has strengthened to $14.5B compared to $14.1B at the half year and $12B at 30 J
Slide 25: Appendices
pone am APPENDICES Holdings
Slide 26: Appendix 1: Non-Recurring Transactions
APPENDIX 1 NON-RECURRING TRANSACTIONS ($M) 20 JUNE 21 30 JUNE 20 Gascoyne recapitalisation 12.4 - Altura Mining (19.1) - Costs related to business acquisitions (4.5) (14.9) EBIT (11.2) (14.9) Gascoyne Recapitalisation • Funds received post Gascoyne recapitalisation included cash and shares (valued a
Slide 27: Appendix 2: Segment Results Under New Structure
APPENDIX 2 SEGMENT RESULTS UNDER NEW STRUCTURE FY21 FY20 CIVIL ($M) H1 H2 Total H1 H2 Total Revenue 474.7 251.8 726.5 305.0 515.1 820.1 EBITDA 20.2 8.4 28.6 13.3 21.1 34.4 % 4.3% 3.3% 3.9% 4.4% 4.1% 4.2% Operating EBIT 16.3 6.6 22.9 9.8 16.7 26.5 % 3.4% 2.6% 3.1% 3.2% 3.2% 3.2% FY21 FY20 MINING ($M)
Slide 28: Disclaimer
DISCLAIMER SUMMARY INFORMATION • This Presentation contains summary information about NRW and its associated entities and their activities current only at the date of this Presentation. • This Presentation is for general information purposes only and does not purport to be complete. The content shou
Slide 29: Contact details
181 Great Eastern Highway BELMONT WA 6102 (08) 9232 4200 www.nrw.com.au