2006 annual results - monadelphous
TRANSCRIPT
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2006 annual results
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highlights
� Record Results
� Sales over $500m
� Net Profit After Tax (NPAT) �76%
� Earnings Per Share (EPS) �72%
� Dividends �71%
� Over $500m new contracts won since December 2005
� Capacity increased; workforce over 3,000 � >50%
� Health and Safety performance improved; TCIFR � 23%
� Strong competitive position in booming market
� Further growth expected in 2006/07
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financial highlights
+31%36.1%47.3%Return on Equity
+29%$18.7m$24.2mCapex
+177%$22.2m$61.6mNet Cash
+179%$24.0m$66.8mOperating Cash Flow
+71%19.25 cps ff33.00 cps ffTotal Dividends
+72%21.1 c36.5 cEarnings Per Share
+76%$16.7m$29.4mNet Profit After Tax
+68%$29.0m$49.0mEBITDA
+36%$390.6m$532.0mSales Revenue
% ChangeJun 05Jun 06
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strong revenue & profit growth
390.6
220.8243.7
154.7129.6
532.0
200620052004200320022001
CAGR 32.6%
16.7
8.57.1
4.83.4
29.4
200620052004200320022001
CAGR 54.0%
profit after tax $msales revenue $m
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19.25
7.506.253.502.38
21.15
11.119.55
6.514.89
33.00
36.50
200620052004200320022001
14.25
24.00
200620052004200320022001
high earnings & dividend growth
EPS CAGR 50%
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record operating cash flow
29.0
16.115.312.09.9
49.0
200620052004200320022001
24.0
6.613.112.4
3.4
66.8
200620052004200320022001
cashflow from operations $mEBITDA $m
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buoyant market, strong margins
7.4%7.3%
6.3%
7.7%7.7%
9.2%
200620052004200320022001
4.3%3.9%
2.9%3.1%2.6%
5.5%
200620052004200320022001
� EBITDA margin � 1.8pp to 9.2% � PAT margin � 1.2pp to 5.5%
EBITDA margin % profit after tax margin %
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exceptional return on equity
36.1%
21.7%20.7%17.2%
13.2%
47.3%
200620052004200320022001
� ROE at 47.3% historically highest level
� Five year average return 35.2%pa
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strong shareholder returns
� Total shareholders returns:
� 1 year 88%
� 5 years 1226% (68.0%p.a)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
Jun-06Dec-05Jun-05Dec-04Jun-04Dec-03Jun-03Dec-02Jun-02Dec-01Jun-01
5 year share price history
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safety performance
0
20
40
60
2001 2002 2003 2004 2005 2006
� TCIFR � 23% from previous year
� Successful implementation of injury reduction initiatives
total case injury frequency rate (TCIFR)
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increased workforce
� Right people recruitment and retention strategy a key focus
� Overseas recruitment for professional staff ongoing
� Expanded graduate program
� Professional development and skill training programs
11981376 1539
1740
3142
Jun - 02 Jun - 03 Jun - 04 Jun - 05 Jun - 06
employee numbers
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maintenance & industrial services division
150.8111.1
242.7
200620052004
� Revenue � 61% from previous year
� Full year revenues from previous financial year contract wins
� Rapidly growing Queensland market
� New major contract wins
� Strong performances across all operations of the division
sales revenue $m
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M&IS division highlights
� 100% of major service contracts retained
� Award & establishment of new service contracts :
� Comalco’s Boyne Smelter, Gladstone, QLD
� Incitec Pivot shutdown, Gibson Island, QLD
� Rio Tinto Iron Ore's Tom Price mine, WA
� Rio Tinto’s Cape Lambert operations, WA
� Important oil and gas services contract secured with ConocoPhillips for
Darwin LNG facility
� Instrumentation and electrical subsidiary (MIE) revenue contribution of $26m
� Skystar ground handling doubled revenue to $15m
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engineering construction division
239.8
109.6
289.3
200620052004
� Revenue � 21% from previous year
� $500m new contracts secured since December 2005
� Recorded over two million manhours lost time injury free during the
year
sales revenue $m
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EC division highlights
� Successful progress of major contracts:
� Iron ore stockyards expansion; Rio Tinto Iron Ore Dampier Port
Upgrade project, WA
� Sulphuric acid plant construction; BHP Billiton's Ravensthorpe Nickel
Project, WA
� Stockpile capacity extension; BHP Billiton Mitsubishi Alliance (BMA)
Hay Point Coal Terminal, QLD
� Iron ore facility expansion; BHP Billiton's Rapid Growth Project
(RGP2) at Nelson Point and Finucane Island, WA
� Iron ore facility expansion; Rio Tinto Iron Ore Yandicoogina mine, WA
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EC division highlights
� $500m of new major contracts secured:
� Largest ever contract won ($180m) with BHP Billiton Iron Ore for Rapid Growth
Project 3 (RGP3),port expansion at Nelson Point and Finucane Island, WA
� BHP Billiton's Yabulu Nickel Refinery Extension Project, QLD
� Rio Tinto Iron Ore Dampier Port Upgrade Phase B project, WA
� Central Queensland Port Authority (CQPA), Rail Receival Station construction at
Gladstone Port, QLD
� Rio Tinto Iron Ore Yandi Junction South East project, WA
� August 2006, secured another RGP3 contract ($120m) with BHP Billiton Iron Ore
for Mining Area C expansion
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our strategy
� Maximise core business – concentrate on earnings quality
� Blue chip customers & long term relationships
� Larger and longer contracts
� Growing recurring revenues
� Leverage capability further into oil and gas, power and water sectors
� Grow electrical and instrumentation services business
� Continue to pursue strategic acquisitions
� Processes and systems to match growth
� Protect and enhance reputation right people-right culture
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outlook
� Strong and high quality workload expected to deliver further revenue
and earnings growth in 2006/07
� Core market conditions expected to be strong for two to three years
� Growth dependent on project timing and industry capacity constraints
� Focus on earnings quality given continuing skills shortages and
overheated supply chain
� Current extraordinary organic growth rates are not sustainable in the
long term