Monadelphous Group Limited · ASX:MND
Monadelphous — Macquarie Securities WA Emerging Leaders Conference (October 2007)
21 slides from Monadelphous's conference presentation, Oct 9, 2007
Slide 1: MND - Sustaining Growth
For personal use only MND - Sustaining Growth Robert Velletri, MD - Giles Everist, CFO Macquarie Securities WA Emerging Leaders Conference
Slide 2: Agenda
Agenda For personal use only Company overview 2006/07 performance Operational update Strategy update Summary and outlook
Slide 3: Company overview
Company overview For personal use only Monadelphous is a leading engineering group providing extensive engineering construction, maintenance and industrial services to the resources, energy and infrastructure sectors.
Slide 4: Company structure
Company structure For personal use only Monadelphous Group Limited Engineering Maintenance & Electrical & SkyStar Airport Construction Industrial Services Instrumentation Services Services • Large scale • Mechanical and • MIE - wholly owned • SkyStar – wholly multidisciplinary project electrical mai
Slide 5: Customers and work locations
Customers and work locations For personal use only Key Customers BHP Billiton Rio Tinto Xstrata Alcoa Alcan QNI BMA Coal Chevron BP Woodside Oil Search ConocoPhillips
Slide 6: FY07 result
FY07 result For personal use only Continued exceptional organic growth … NPAT $60.4m 106% on Sales Revenue $963.7m 81% Earnings Per Share 102% to 73.6c, 05/06 73%, 04/05 90% Strong balance sheet – net cash position Market capital over $1b and now in ASX 200 Workforce up 28% to 4034 in tight labour m
Slide 7: Revenue & profit growth
Revenue & profit growth For personal use only sales revenue $m profit after tax $m 60.4 963.7 CAGR 44.2% CAGR 66.2% 532.0 29.4 390.6 16.7 243.7 220.8 154.7 8.5 7.1 4.8 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Dec Half June Half
Slide 8: Earnings & dividend growth
Earnings & dividend growth For personal use only earnings per share dividend per share 73.6 66.0 CAGR 62.4% CAGR 79.9% 36.5 33.0 21.1 19.3 9.6 11.1 6.5 6.3 7.5 3.5 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Interim Dividend Final Dividend Special Dividend
Slide 9: EBITDA and operating cash flow
EBITDA and operating cash flow For personal use only EBITDA $m cashflow from operations $m 94.0 96.3 66.8 49.0 29.0 24.0 15.3 16.1 12.0 12.5 13.1 6.6 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Dec Half June Half Dec Half June Half
Slide 10: EBITDA and PAT margins
EBITDA and PAT margins For personal use only EBITDA margin % profit after tax margin % 9.8% 9.2% 7.7% 7.3% 7.4% 6.3% 6.3% 5.5% 4.3% 3.9% 3.1% 2.9% 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007
Slide 11: Exceptional return on equity
Exceptional return on equity For personal use only return on equity % 66.8% 47.3% 36.1% 20.7% 21.7% 17.2% 2002 2003 2004 2005 2006 2007
Slide 12: Strong shareholder returns
Strong shareholder returns For personal use only 5 year share price history $18.00 $16.00 Sep-07 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Total shareholders returns- at June 2007: 1 year 152% 5 years 2365%
Slide 13: Strong focus on safety
Strong focus on safety For personal use only 27% improvement in health and safety performance Major differentiator/competitive advantage Core company value total case injury frequency rate (TCIFR) 32.1 29.0 28.6 22.6 17.3 12.6 2002 2003 2004 2005 2006 2007
Slide 14: Increasing workforce
Increasing workforce For personal use only Industry-wide constraints expected to continue Major focus on recruitment and retention Focus on maintaining strong history of retention of core staff Expanding global recruitment program 4034 employee numbers 3142 1740 1376 1539 1198 2002 2003 2004 2005 20
Slide 15: Engineering Construction division - contracts
Engineering Construction division - contracts For personal use only BHP Billiton Iron Ore RGP3 - Nelson Point & Finucane Island Port Expansion RGP3 - Mining Area C Expansion RGP3 - Car dumper RGP4 -Yandi sample station Rio Tinto Iron Ore - DPU Phase B BHP Billiton - Ravensthorpe Nickel Project nicke
Slide 16: Maintenance & Industrial Services division
Maintenance & Industrial Services division For personal use only Oil and Gas contracts ConocoPhillips - Darwin LNG facility maintenance support services Oil Search – PNG Facility Construction Services Chevron - Barrow & Thevenard Island maintenance services extended to 2010 New contract win – BP Kwi
Slide 17: Electrical & Instrumentation division
Electrical & Instrumentation division For personal use only Key rapid growth area Leveraging off established customer networks Geographic expansion into WA MIE sales revenue $m 71.8 26.0 2006 2007 Dec Half June Half
Slide 18: Strategy delivery on track
Strategy delivery on track For personal use only Growth strategies Maximise returns from core markets (mining and minerals) Geographic expansion (QLD, SA & NSW) Service expansion (electrical services) Expand into new markets Further development into oil & gas and infrastructure markets Pursue acquis
Slide 19: Strategy delivery on track
Strategy delivery on track For personal use only Support strategies Right people, right culture strategy Build workforce capacity Attract and retain right people to protect culture and enhance reputation Right structure to deliver business growth Processes and systems to match growth Global sourcing
Slide 20: Summary and outlook
Summary and outlook For personal use only Exponential growth achieved over recent years Project timing will impact construction revenue in the short term Currently in a heavy tendering phase View 2007/08 as a year of consolidation Construction pipeline looks long and strong Skills shortages will con
Slide 21: MND - Sustaining Growth
For personal use only MND - Sustaining Growth Robert Velletri, MD - Giles Everist, CFO Macquarie Securities WA Emerging Leaders Conference
Monadelphous Group — Macquarie Securities WA Emerging Leaders Conference (October 2007) on 6ix