Slide 1: 2008 interim results presentation
For personal use only 2008 interim results presentation 19 February 2008
Slide 2: your speakers
your speakers For personal use only Rob Velletri Giles Everist Managing Director Chief Financial Officer 2
Slide 3: agenda
agenda For personal use only HY08 highlights financials TSR performance people performance Operational reports: engineering construction (EC) maintenance & industrial services (MIS) electrical & instrumentation services (MIE) skystar airport services (SAS) Strategy & outlook Rapid Growth Project 4,
Slide 4: HY08 highlights
HY08 highlights For personal use only NPAT up 2% to $32.1m, EPS 38.6c & DPS 29c Financial Revenue down 8% to $460.2m EBITDA up 5% to $51.4m, margins expanded to 11.2% EC paused for breath while MIS grew strongly Operating Pleasing safety performance trend Over $500m announced new project wins Long-t
Slide 5: financial highlights
financial highlights For personal use only Dec-07 Dec-06 % Change Sales Revenue $m 460.2 499.4 -8% EBITDA $m 51.4 48.7 5% Net Profit After Tax $m 32.1 31.4 2% EPS cps 38.6 38.5 0% DPS cpsff 29.0 22.0 32% Return on Equity (annualised) % 72.6 92.0 -21% 5
Slide 6: strong balance sheet
strong balance sheet For personal use only Dec-07 Dec-06 % Change Cash $m 70.6 73.3 -4% Debt $m 25.5 27.8 -8% Net Cash $m 45.1 45.3 0% Performance Bonds (Facility) $m 89 (145) 87 (95) 2% Capital expenditure $m 8.0 9.8 -18% Strong cash position $24.5m interim dividend payout High working capital move
Slide 7: revenue & key drivers
revenue & key drivers For personal use only sales revenue $m sales contributions % 2% 2% 2% 963.7 8% 7% 8% 25% 27% 34% 532.0 460.2 390.6 66% 64% 220.8 56% FY04 FY05 FY06 FY07 HY08 HY07 H207 HY08 H1 H2 EC MIS MIE Skystar 7
Slide 8: NPAT & margins
NPAT & margins For personal use only NPAT $m NPAT margin % 60.4 7.0% 6.3% 6.2% 5.9% 5.1% 4.5% 4.2% 4.0% 32.1 29.4 3.5% 16.7 8.5 FY04 FY05 FY06 FY07 HY08 FY04 FY05 FY06 FY07 HY08 H1 H2 H2 H1 H1 H2 8
Slide 9: NPAT contribution analysis
NPAT contribution analysis For personal use only NPAT $m 0.8 (0.9) 4.2 0.0 (0.3) 32.1 31.4 (3.2) HY07 NPAT Sales Growth Margin Acquisitions D&A Interest (Net) Tax HY08 NPAT Growth 9
Slide 10: EBITDA & margins
EBITDA & margins For personal use only EBITDA $m EBITDA margin % 94.0 11.2% 9.8% 9.8% 9.8% 8.5% 8.0% 7.7% 6.9% 6.8% 49.0 51.4 29.0 16.1 FY04 FY05 FY06 FY07 HY08 FY04 FY05 FY06 FY07 HY08 H1 H2 H1 H2 H2 H1 10
Slide 11: operating cash flow
operating cash flow For personal use only operating cash flow (OCF) $m 57.1 39.2 37.1 29.7 15.7 14.9 8.3 3.9 2.7 FY04 FY05 FY06 FY07 HY08 H1 H2 11
Slide 12: operating cash flow reconciliation
operating cash flow reconciliation For personal use only OCF reconciliation $m $8.2m reversal in provisions due mainly to employee 6.2 (8.2) entitlement payments from a number of completed projects 32.1 (0.6) (14.6) $14.6m increase in working capital due to: (a) debtors/creditors (net) increase of $
Slide 13: operating cash flow conversion
operating cash flow conversion For personal use only OCF / EBITDA % 178% 126% 115% 106% 5-yr Avg OCF/EBITDA: 88% 80% 54% 49% 33% 29% HY04 H204 HY05 H205 HY06 H206 HY07 H207 HY08 13
Slide 14: earnings & dividends
earnings & dividends For personal use only earnings per share dividends per share 73.6 66.0 36.5 38.6 33.0 29.0 21.1 19.3 11.1 7.5 FY04 FY05 FY06 FY07 HY08 FY04 FY05 FY06 FY07 HY08 H1 H2 H1 H2 14
Slide 15: exceptional return on equity
exceptional return on equity For personal use only RoE % (average) 79.2% 72.6% 54.3% 39.0% 29.3% 25.8% 23.2% FY04 FY05 FY06 FY07 HY08 ASX Peer Best Group 100 Source: Peer Group: Various (incl. DOW, LEI, MAH, NWH [yr end], TSE & UGL) FY07 RoE averages (Range: 16.3% - 44.2%) ASX Best 100: BRW, represe
Slide 16: superior total shareholder returns (TSR)
superior total shareholder returns (TSR) For personal use only $1,000 investment 5 years ago $100,000 $21,753 $10,000 $2,598 $2,410 $1,000 Aug-04 Apr-06 May-03 Nov-05 Dec-02 Oct-03 Jan-05 Jun-05 Sep-06 Feb-07 Jul-07 Dec-07 Mar-04 MND S&P/ASX200 Accumulation Index S&P/ASX200 Industrials Accumulation
Slide 17: top quartile stock performance
top quartile stock performance For personal use only TSR & relative performance MND Quartile Performance & TSR CY03 CY04 CY05 CY06 CY07 Quartile 2nd 1st 1st 1st 2nd TSR (pa) 71% 79% 151% 106% 55% MAH MND MND MND LEI 1st DOW UGL UGL MAH MAH TSE TSE DOW UGL MND 2nd MND MAH LEI XJO TSE UGL XNJ MAH XNJ
Slide 18: people performance
people performance For personal use only total case injury frequency rate employee numbers (TCIFR) 28.6 4,034 3,808 22.6 3,142 17.3 12.6 1,740 1,539 8.4 FY04 FY05 FY06 FY07 HY08 FY04 FY05 FY06 FY07 HY08 TCIFR 48% from HY07 Workforce consolidation across HY08 Continued investment in HSE Continued inv
Slide 19: Dampier Port Upgrade Phase B, Dampier, WA
For personal use only Dampier Port Upgrade Phase B, Dampier, WA
Slide 20: operational reports
operational reports For personal use only Dec-07 Dec-06 % Change Engineering Construction $m 265.3 354.3 -25% Maintenance and Industrial Services $m 160.3 132.2 21% Electrical and Instrumentation Services $m 40.3 40.4 0% Skystar $m 10.2 9.5 7% Internal sales eliminations $m -15.9 -37.0 TOTAL $m 460.
Slide 21: our work locations
our work locations For personal use only Note: Blue text represents the locations of projects won in HY08 21
Slide 22: Sulphuric Acid Plant, Ravensthorpe, WA
For personal use only Sulphuric Acid Plant, Ravensthorpe, WA
Slide 23: EC
EC For personal use only sales revenue $m 657.5 289.3 265.3 239.8 109.6 FY04 FY05 FY06 FY07 HY08 H1 H2 Hay Point Coal Terminal, Mackay, QLD HY08 Sales Contribution Revenue 25% on HY07 ($400m announced contacts across HY08) Major O&G win at ENI’s Blacktip project (NT) EC 56% H2 FY08 revenue is foreca
Slide 24: EC division highlights
EC division highlights For personal use only Contracts done: Iron ore facility expansion; RIO, Dampier Port Upgrade Phase B, WA Iron ore facility expansion; BHP, RGP3 at Port Hedland, WA Iron ore car dumper refurbishment; BHP, RGP3 at Port Hedland, WA Iron ore facility expansion; BHP, RGP3 at Mining
Slide 25: EC division highlights
EC division highlights For personal use only Strategic sourcing & capacity initiatives: Established Beijing supply office to source fabricated steel products & associated services; Seeking to establish ties with Chinese engineering companies for the provision of specialist engineering services on Au
Slide 26: Darwin LNG Facility Maintenance Contract, Darwin, NT
For personal use only Darwin LNG Facility Maintenance Contract, Darwin, NT
Slide 27: MIS
MIS For personal use only sales revenue $m 262.5 207.5 160.3 136.9 108.0 FY04 FY05 FY06 FY07 HY08 Rio Tinto Aluminium Yarwun, Gladstone, QLD H1 H2 HY08 Sales Contribution Revenue 21% from HY07 Growth driven by increased service volumes & new contracts MIS 34% Significant further expansion into the c
Slide 28: MIS division highlights
MIS division highlights For personal use only Significant expansion in oil & gas capabilities through: 3 year O&G capital improvement & shutdown projects: BP, Kwinana Refinery (WA) 5 year O&G capital improvement projects: BP, Bulwer Island (QLD) Successful completion of major shutdowns for ConocoPhi
Slide 29: Curragh North Expansion Project, Blackwater, QLD
For personal use only Curragh North Expansion Project, Blackwater, QLD
Slide 30: MIE
MIE For personal use only sales revenue $m 71.8 40.3 26.0 6.6 Gladstone Port Rail Receival #3 Project, Gladstone, QLD FY05 FY06 FY07 HY08 HY08 Sales Contribution H1 H2 MIE 8% Revenue flat from HY07 Established operations to service WA market Major works carried out through other divisions including
Slide 31: Perth Airport, Perth, WA
For personal use only Perth Airport, Perth, WA
Slide 32: SAS
SAS For personal use only sales revenue $m 19.2 14.8 10.2 7.3 3.1 Perth International Airport, Perth, WA FY04 FY05 FY06 FY07 HY08 HY08 Sales Contribution H1 H2 Skystar 2% Revenue 7% from HY07 Announced partial divestment to Toll Dnata (Toll/Emirates JV) 32
Slide 33: SAS divestment guidance
SAS divestment guidance For personal use only Background MND announced on 27-Dec-07 it had entered into an agreement to divest part of its Skystar operations to Toll Dnata Airport Services. Subsequent to this announcement, the deal closed in Jan-08. Consideration: A$8.75m cash FY08 Impacts Group rev
Slide 34: Dampier Port Upgrade Phase B, Dampier, WA
For personal use only Dampier Port Upgrade Phase B, Dampier, WA
Slide 35: our strategy
our strategy For personal use only earnings quality blue chip customers long term relationships larger & longer contracts Core growing recurring revenue base (MIS) Business commodity diversification (O&G, coal, power & water) service expansion (MIE) geographic expansion (SA & N.Qld) strategic acquis
Slide 36: outlook
outlook For personal use only Revenue expected to be flat for the full year with margins strengthening Project pipeline continues to be long and strong, in particular iron ore & O&G Project timing and capacity utilisation will continue to impact EC revenue flows Further contract wins to strengthen t
Slide 37: 2008 interim results presentation
For personal use only 2008 interim results presentation 19 February 2008