Nrw Holdings Limited · ASX:NWH
Nrw — FY2013 Earnings Presentation
37 slides from Nrw's earnings presentation, Aug 22, 2013
Slide 1: Full Year Results 2013
FULL YEAR ’ RESULTS ¥2013
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE For personal use only Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities of other instruments in NRW Holdings Limited or any other com
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Slide 4: Year in Review: Financial Overview
For personal use only YEAR IN REVIEW FINANCIAL OVERVIEW • Record revenue of $1.374Bn 1% (FY12: $1,358Bn) • EBIT of $119.4M 22% (FY12: $154.0M) • EBIT Margin of 8.7% 23% (FY12: 11.3%) • NPAT of $74.1M 24% (FY12: $97.1M) • NPAT Margin of 5.4% 24% (FY12: 7.2%) • Cash balance $131.0M 5% (FY12: $138M) •
Slide 5: Key Financials
For personal use only KEY FINANCIALS 5
Slide 6: Year in Review: Operational Highlights
For personal use only YEAR IN REVIEW OPERATIONAL HIGHLIGHTS • Successful completion of first major oil and gas project at Wheatstone • Numerous project awards / extensions for key client Rio Tinto including: • Cape Lambert Port B • Yandi Sustaining Project • West Angelas Road • Nammuldi Below Water
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Slide 8: Safety
For personal use only SAFETY Safety Performance Consistent safety performance in FY13 reflected with an improved Lost Time Injury Frequency Rate (LTIFR) of 0.55 at 30 June 2013, representing an 18% decrease from the previous year (FY12: 0.67). A relatively flat line in Total Recordable Injury Freque
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Slide 10: Our People
For personal use only OUR PEOPLE • As of 30 June 2013, NRW employed a workforce of 2,283* people, down from our peak of 4,821* in August 2012, and a 50% reduction compared to the close of FY12 (4,592* people). • NRW was able to mitigate some of the impact of these contract losses by reducing labour
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Slide 12: Civil Overview
For personal use only CIVIL OVERVIEW • Strong year on year growth with record revenue of $860.6M representing a 18% increase on the FY12 ($731.7M) despite general industry slowdown and significant delays in contract award and commencements impacting the second half. • Significant achievements in FY1
Slide 13: Civil Overview
For personal use only CIVIL OVERVIEW NRW Civil was awarded a number of major new contacts and contract extensions including the following: • Cape Lambert Port B 353Mtpa Project – Rio Tinto • Western Turner Brockman Earthworks (additional scope inclusive of Nanutarra Road Conveyor Tunnel) – Rio Tinto
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Slide 15: Mining Overview
For personal use only MINING OVERVIEW • Mining Divisional revenue was $404.5M in FY13, down 25% from the prior corresponding period (FY12: $542.2M) primarily due to volatile market conditions and uncertainty over future commodity prices from the end of Q1 FY13. • This led to early termination of a n
Slide 16: Mining Overview
For personal use only MINING OVERVIEW Safety performance across the Division was satisfactory during FY13. An increased focus on lead indicators had a positive impact, although the Division performance when measured in relation to TRIFR deteriorated, with FY13 TRIFR at 7.59 compared to the prior cor
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Slide 18: Action Drill & Blast Overview
For personal use only ACTION DRILL & BLAST OVERVIEW • Action Drill & Blast (ADB) experienced continued strong growth during FY13 with revenue of $150.5M, a 33% increase on FY12 revenue of $113.1M. • Particularly pleasing was the award of two significant multi-year contracts • A $140M drilling servic
Slide 19: Action Drill & Blast Overview
For personal use only ACTION DRILL & BLAST OVERVIEW External projects awarded during FY13 included: • Drilling Services at Cloudbreak Mine – Fortescue • Blasting Services at Isaac Plains Coal Mine – Isaac Plains Coal Management Pty Limited (originally contracted to John Holland Queensland Pty Limite
Slide 20: Year in Review: Action Mining Services
YEAR IN REVIEW ACTION MINING SERVICES
Slide 21: Action Mining Services Overview
For personal use only ACTION MINING SERVICES OVERVIEW Action Mining Services (AMS) experienced a 10% decrease in revenue to $41.8M for the FY13 compared to FY12 ($46.6M). This was predominately due to the sector downturn in mining and civil projects at the end of the first quarter of FY13, and lower
Slide 22: Action Mining Services Overview
For personal use only ACTION MINING SERVICES OVERVIEW Key achievements in the 2013 financial year included: • The successful expansion of the AMS range of Support Vehicles with the release of the new, high tech, AMS 15,000lt ‘Viper Series’ Service Module and the AMS 12,000lt Service Module (the AMS
Slide 23: FY13 Project Locations
YEAR IN REVIEW FY153 PROJECT LOCAT PILBARA BHP Billiton Iron Ore Port Hedland Inner Harbour Project Rio Tinto Cape Lambert Cardumper & Stockyards Earthworks Rio Tinto Yandi Sustaining Project Rio Tinto Nammuldi BWT Project Rio Tinto Western Turner Brockman Rio Tinto Boolgeeda Aerodrome Rio Tinto Wes
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Slide 25: Operating Performance
OPERATING PERFORMANCE For personal use only *Other includes unallocated income and consolidations eliminations for Action Drill & Blast ($72m) and Action Mining Services ($11m). • Contract terminations and delays in project commencements and awards resulted in significant one off and other costs bei
Slide 26: Divisional Performance
DIVISIONAL PERFORMANCE For personal use only • Mining revenue decreased 25% and margins decreased as a result of underutilised/idle plant, personnel holding costs and redundancies incurred by contract terminations. A $10M loss was also incurred at Middlemount in 1H13 due to severe weather and operat
Slide 27: Balance Sheet
BALANCE SHEET For personal use only • Equity attributable to shareholders increased by 7.2% to $352.9M for FY13 compared to FY12: $329.2 million. • Net working capital increased due to tax instalments and differences between accounting and tax policies, and slowing of debtor payments. • NRW has main
Slide 28: Cash & ROCE
CASH & ROCE For personal use only • Operating cash flow in FY13 was $118M. The decrease in operating cash was a result of reduced operating margins, slightly slower collection cycle and tax payments. • Maintained strong cash reserves at $131M although decreased compared to FY12 ($138M) due to reduce
Slide 29: Capital Expense
CAPITAL EXPENSE For personal use only • Capex predominantly allocated to the Mining Division relates to the Middlemount project. • Action Drill & Blast added 7 rigs comprising of $11.1M of their $15.9M capex for FY13. Future commitments to Action Drill & Blast capex will see a further five rigs adde
Slide 30: Funding
FUNDING For personal use only The Structured Debt Facility (ANZ lead arranger), was successfully reviewed and maintained during the FY13 year. Other funders included insurance providers as required, operating lease providers and asset financiers outside the club banking arrangement. Currently the Gr
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Slide 32: FY14 Outlook
For personal use only FY14 OUTLOOK Civil • The Civil Division currently has an order book of $388M, with a further $2.41Bn in active tenders. • Opportunities exist within NRW’s traditional and new iron ore client base in WA, and with new clients in the Qld coal infrastructure and LNG sectors. • NRW
Slide 33: FY14 Outlook
For personal use only FY14 OUTLOOK Action Drill & Blast • Action Drill & Blast currently has an order book of $157M, with a further $143M in active tenders. • Financial performance is expected to return to more consistent levels during FY14 through: • Displaced site personnel returning to operationa
Slide 34: Active Tenders
For personal use only ACTIVE TENDERS Active Tenders Tender activity remains strong with over $3.96 billion in active tenders across Australia and internationally across iron ore, coal, LNG and government as well as new markets. Active tenders is comprised of: Civil WA: $1.341 billion Civil QLD: $1.0
Slide 35: Order Book
For personal use only ORDER BOOK The order book (as at 20 August Order Book 2013) is valued at $1 billion comprising: • $388 million in the Civil Division • $460 million in the Mining Division • $157 million in Action Drill and Blast. Order book excludes revenue from Action Mining Services. Civil Mi
Slide 36: Company Outlook
For personal use only COMPANY OUTLOOK Despite the significant downturn across the resources industry, NRW retains a positive outlook over the short to medium term with a steady pipeline of tenders and a clear strategy to further diversify our client base and client offering. The Company will continu
Slide 37: Thank You
For personal use only THANK YOU 37