Emeco Holdings Limited · ASX:EHL
Emeco — H1 FY2015 Earnings Presentation
29 slides from Emeco's earnings presentation, Feb 26, 2015
Slide 1: 2015 Interim Results
For personal use only 2015 INTERIM RESULTS 26 FEBRUARY 2015 KEN LEWSEY, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER GREG HAWKINS, CHIEF FINANCIAL OFFICER
Slide 2: Highlights
For personal use only HIGHLIGHTS
Slide 3: Getting Emeco Back to Work
GETTING EMECO BACK TO WORK For personal use only Group fleet utilisation 75%, up from 50% at June – existing contracts retained, new contracts won Global mining industry experiencing prolonged difficult trading conditions New corporate strategy unveiled to create a more resilient business and
Slide 4: 1H FY15 Overview
1H FY15 OVERVIEW For personal use only STRONG SECOND QUARTER SHOWS POSITIVE RESULTS OF BACK-TO-WORK PLAN Utilisation1 vs EBITDA and margins Financial performance2,3,4 A$M 50 100% A$million 1H FY15 1H FY14 PCP Var $M 45 40 Revenue 110.7 123.8 (13.1) 75% 35 30 EBITDA 16.2 36.9 (20.7) 25 50% 20 Operati
Slide 5: Current Operations: Mobile Fleet and Geographical Diversity
CURRENT OPERATIONS For personal use only MOBILE FLEET AND GEOGRAPHICAL DIVERSITY Canada $36.0M 1H FY15 revenue Number of fleet: 112 Indonesia Fleet WDV: $146M Queensland 1H15 Revenue Composition $8.6M 1H FY15 revenue Thermal Number of fleet: 62 Other Coal $9.5m Fleet WDV: $72M 8% 8% (26 units) 1H15
Slide 6: Earnings Composition
EARNINGS COMPOSITION For personal use only STRONG COMMODITY AND GEOGRAPHICAL DIVERSITY Revenue by Geography 1H FY14 2H FY14 1H FY15 WA WA 21% WA 24% Canada Canada 26% 30% Canada 33% 38% $123.8m QLD $117.3m $110.7m 7% QLD QLD Chile 8% 19% 10% Chile NSW Chile NSW 11% NSW 23% 11% 22% 17% Revenue by Com
Slide 7: Operational Review
For personal use only OPERATIONAL REVIEW
Slide 8: HSE & Sustainability
HSE & SUSTAINABILITY For personal use only A HIGH STANDARD OF HSE IS KEY IN A COMPETITIVE MARKET HEALTH, SAFETY & ENVIRONMENT Safety Performance 12.0 TRIFR o Reduced TRIFR by 57% in 2014 10.0 LTIFR o Reduced LTIFR by 100% in 2014 8.0 6.0 4.7 o Life Saving Rules rolled out in all regions 4.0 2.0 o
Slide 9: Regional Performance – New South Wales
REGIONAL PERFORMANCE – NEW SOUTH WALES For personal use only EMECO’S MOST RESILIENT AUSTRALIAN MARKET Revenue EBITDA Utilisation1 31 Dec 14 100% 13.4 6.1 Feb 15 13.3 12.9 81% 80% 11.4 5.2 60% 3.1 40% 2.3 20% 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 Existing large thermal
Slide 10: Regional Performance – Queensland
REGIONAL PERFORMANCE - QUEENSLAND For personal use only EARTHMOVING VOLUMES RETURNING Revenue EBITDA Utilisation1 31 Dec 14 100% 5.7 1.7 5.5 80% 60% Feb 15 51% 0.1 40% 3.1 2.7 20% -1.6 -1.7 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 Noticeable return of earthmoving contract
Slide 11: Regional Performance – Western Australia
REGIONAL PERFORMANCE – WESTERN AUSTRALIA For personal use only LONG-TERM, FULLY-MAINTAINED FLEET CONTRACTS IN GOLD Revenue EBITDA Utilisation1 31 Dec 14 100% 80% 15.5 4.8 Feb 15 13.5 13.7 60% 51% 11.4 3.3 3.3 40% 2.9 20% 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 Underpinne
Slide 12: Regional Performance – Canada
REGIONAL PERFORMANCE - CANADA For personal use only OIL PRICE DECLINE BEING MANAGED Revenue1 EBITDA1 Utilisation2 31 Dec 14 100% Feb 15 13.1 83% 27.2 80% 21.8 60% 17.1 40% 14.2 6.8 20% 3.9 2.4 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 High utilisation and near-full order b
Slide 13: Regional Performance – Chile
REGIONAL PERFORMANCE - CHILE For personal use only KEY CONTRACT NOW HITTING TARGET Revenue1 EBITDA1 Utilisation2 31 Dec 14 100% Feb 15 92% 7.2 3.8 80% 6.4 3.3 60% 5.4 5.5 40% 1.5 20% 0.7 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 Production Encuentro project contract now pe
Slide 14: Financials
For personal use only FINANCIALS
Slide 15: Financial Summary
FINANCIAL SUMMARY For personal use only At a glance… A$million 1H FY14 2H FY14 1H FY15 Revenue 123.8 117.3 110.7 EBITDA 36.9 30.2 16.2 EBIT (0.9) (11.0) (32.6) NPAT (10.7) (10.8) (49.6) Free cash flow 75.1 10.8 (9.0) R12 ROC5 2.9% (1.4)% (6.6)% Operating EPS (cps) (1.9) (1.9) (8.8) Note 1. Table rep
Slide 16: Financial Performance
FINANCIAL PERFORMANCE For personal use only BUSINESS TURNING IN 2Q FY15 AS ONE-OFF COSTS ELIMINATED Revenue EBITDA 25 40% 70 35% 60 63.3 20 21.9 62.2 30% 50 54.0 25% 48.5 15 40 20% 30 10 11.7 15% 20 8.3 10% 5 10 5% 4.5 0 0 0% 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY14 4Q FY14 1Q FY15 2Q FY15 Utilisat
Slide 17: Rental Fleet & Capital Strategy
RENTAL FLEET & CAPITAL STRATEGY For personal use only FOCUS ON RIGHT FLEET MIX TO MATCH DEMAND IN OUR MARKETS Capital expenditure closely monitored in current Sustaining Capex1 climate 25.2 26.0 Capex of $11.6 million mostly dedicated to re- 17.3 builds 11.6 Some new equipment funded through o
Slide 18: Balance Sheet
BALANCE SHEET For personal use only SUCCESSFUL REFINANCING PROVIDES FLEXIBLE AND SUSTAINABLE DEBT STRUCTURE CAPITAL STRUCTURE Liquidity strengthened with new $75 million asset backed loan, Bonds - US$335m, Maturity 2019 Currently undrawn ABL - A$75m, Maturity 2017 Covenant light Swaps - Volume
Slide 19: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK
Slide 20: Strategy and Outlook: The Story So Far
STRATEGY AND OUTLOOK For personal use only THE STORY SO FAR… Return to profitability Reduce net debt Generate free cash Execute corporate strategy – diversify earnings, become more resilient Improve margins through value add, new technology Getting equipment back to work – utilisation ~50% to ~75% R
Slide 21: Emeco – A New Way of Competing
EMECO – A NEW WAY OF COMPETING For personal use only Winning work Winning work with fully-maintained, whole-fleet solutions for mid-tier miners Actively partnering with mid-tier contractors, combining Emeco fleet and contractor capability to open up new opportunities New Services Expanding low
Slide 22: Emeco's Strategy
EMECO’S STRATEGY For personal use only Emeco will be a market-driven business with a range of specialist propositions that are tailored to meet customer needs and delivering excellent returns for shareholders 1 2 3 Extend customer relationships with Reshape the core rental business and Innovate, div
Slide 23: Questions
For personal use only QUESTIONS
Slide 24: Further Information
For personal use only FURTHER INFORMATION Thank you for your interest in Emeco For further investor enquiries please contact: Michael Weir Vice President Investor Relations +61 8 9420 0211 michael.weir@emecogroup.com 24
Slide 25: Appendices
For personal use only APPENDICES
Slide 26: Detailed Financials
DETAILED FINANCIALS For personal use only Profit & Loss3 Cashflow2 A$million 1H FY14 2HFY 14 1H FY15 A$million 1H FY14 2H FY14 1H FY15 Revenue 123.8 117.3 110.7 EBITDA 36.9 30.2 16.2 Operating Cashflow 33.1 24.3 13.3 Margin(%) 29.8% 25.7% 14.6% General working capital 29.1 7.5 (3.8) (0.9) (11.0) (32
Slide 27: Geographic Segments
GEOGRAPHIC SEGMENTS For personal use only New South Wales Queensland Western Australia A$million 1H FY14 2H FY14 1H FY15 A$million 1H FY14 2H FY14 1H FY15 A$million 1H FY14 2H FY14 1H FY15 Revenue 18.8 26.7 24.3 Revenue 22.7 8.4 8.6 Revenue 28.9 24.9 29.2 EBITDA 7.6 11.3 5.4 EBITDA 8.3 (0.1) (1.4) E
Slide 28: Disclaimer
DISCLAIMER For personal use only Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.
Slide 29: Thank you
For personal use only Thank you Learn more about us emecogroup.com