FY12 First Half Results Presentation By Chris Sutherland, Managing Director 23 November 2011
Important notice and disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Programmed Maintenance Services Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections, prospects or returns contained in this presentation. Such forecasts, projections, prospects or returns are by their nature subject to significant uncertainties and contingencies. This presentation should be read in conjunction with the Announcements issued to the ASX since the 2011 Annual Report and can be found on the Programmed website at www.programmed.com.au. 2
Welcome to the world of Programmed 3
Our Vision: To be the leading provider of staffing, maintenance and project services, without injury RECOGNITION SAFETY TEAMWORK ACCOUNTABILITY HONESTY & INTEGRITY & ENJOYMENT Safety is paramount. We respect everyone’s We encourage Our business We are a people We will act to ensure relationships are business. We contribution by working individuals and teams the safety and based on fair, open, recognise and reward together to achieve to take responsibility environmental well- common goals and and ownership of the and ethical principles. outstanding being of our project outcomes. Our process, and the We take pride in the achievement, and customers, the public sense of team extends outcome, through way we work with our provide opportunity for and ourselves. customers and our employees to to building long-term decisive leadership communities, the develop and customer and and initiative. community integrity of our succeed. We create relationships for the services, and doing an environment for benefit of all. what we say we are every team member going to do. to have a positive, enjoyable and rewarding work experience. 4
Programmed Today 10,000+ employees 100 offices around Australia and NZ $1200 million+ revenue 5
Our Competitive Advantages Our visible commitment, leadership, systems and processes to prevent injury with a goal of Zero Harm Our ability to recruit, deploy and manage a large skilled workforce to support our customers’ operations…5,000+ permanent and 5,000+ casuals…30,000+ people each year Our many long- term contracts…more than 5,000 Our diversity across all industry sectors including the offshore oil and gas sector Our wide network that serves and supports large and small customers alike across Australia and NZ…100+ branches 6
Our Structure PROPERTY & RESOURCES Customers contract a INFRASTRUCTURE complete MANAGEMENT Maintenance, and / or maintenance SOLUTION Construction and Maintenance, Building and Operational Services Operational Services PROPERTY SERVICES TOTAL MARINE SERVICES FACILITY MANAGEMENT Customers contract the TASK capability CONSTRUCTION & KLM ELECTRICAL & MAINTENANCE COMMUNICATIONS INTEGRATED WORKFORCE Customers contract the STAFFING service Staffing Services 7
Group Performance Highlights Revenue of $652.3 million, up 8% on pcp 1 EBITA of $23.7 million, up 129% on pcp 1 Profit of $11.6 million, up 153% on pcp 1 Fully franked interim dividend of 5.0 cents per share, up 2c on pcp Net debt lower to $110 million (down from $118 million at 31 March 2011) Debt refinanced to October 2014 WA Water Corporation $785 million contract 8 1 pcp excluding discontinued operations
Group Results 1H 2012 1H 2011 Group Results 30 Sep 2011 30 Sep 2010 % change $m $m Continuing operations Revenue 652.3 604.7 8% EBITDA (before restructuring costs) 29.2 22.7 29% Depreciation (5.5) (6.5) 15% EBITA (before restructuring costs) 23.7 16.2 46% Restructuring costs 0.0 (5.9) EBITA 23.7 10.3 129% Amortisation (0.1) (0.2) 38% EBIT 23.6 10.2 132% Net Interest (7.0) (6.8) (3%) Profit Before Tax 16.6 3.4 391% Income Tax Expense 1 (5.0) 1.2 Profit From Continuing Operations 11.6 4.6 153% Discontinued operations 2 0.0 (7.6) Profit After Tax (statutory basis) 11.6 (3.1) Earnings Per Share 9.8 (2.6) Earnings Per Share (continuing operations) 9.8 3.9 153% Weighted Average Shares on Issue (million) 118.2 118.2 1 1H 2011 includes $1.9m tax benefit from retrospective change in tax consolidation rules to allow additional deductions for assets acquired after 1 July 2002 2 Discontinued operations comprise the United Kingdom painting business 9
Group Revenue by Halves Group Revenue ($m) 1,400 FY2011 1,200 FY2012 1,000 800 600 400 200 0 1H 2H Full Year 10
Group EBITA by Halves Group EBITA ($m) 60 FY2011 50 FY2012 40 30 20 10 0 1H 2H Full Year 11
Group Cash Flow 1H 2012 1H 2011 Group Cash Flow 30 Sep 2011 30 Sep 2010 $m $m Gross Operating Cash Flow 33.1 15.9 Interest paid (7.7) (7.0) Income tax paid (8.5) (6.8) Net Operating Cash Flow 16.9 2.1 Net purchases of non current assets (2.1) (2.7) Payment for businesses (0.4) (0.1) Proceeds from sales of businesses 3.2 3.0 Other investing cash flows 0.3 0.5 Net Investing Cash Flow 1.0 0.7 Net borrowings / (repayments) (17.2) (25.1) Proceeds from issue of shares 0.0 0.0 Dividends paid (7.1) (7.1) Net Financing Cash Flow (24.3) (32.2) Net Increase / (Decrease) in Cash (6.4) (29.4) Cash at beginning of year 20.1 46.5 Disposals & Exchange Rate Variances 0.3 (0.1) Cash at End of Period 14.0 17.0 12
Group Balance Sheet Balance Sheet 30 Sep 2011 31 Mar 2011 % change $m $m Cash 14.0 20.1 (30%) Trade and other receivables 199.4 189.5 5% Contract Recoverables 132.1 133.8 (1%) Inventories 70.7 73.8 (4%) Property, plant & equipment 23.1 24.4 (5%) Goodwill & other intangible assets 252.1 251.0 0% Other assets 23.7 25.0 (5%) Total Assets 715.1 717.6 (0%) Trade and other payables 132.2 134.3 (2%) Borrowings 124.0 138.5 (10%) Provisions and other liabilities 98.8 93.4 6% Total Liabilities 355.0 366.2 (3%) Total Equity 360.1 351.5 2% Net Debt 110.0 118.4 (7%) Net Debt / Equity 30.5% 33.7% (9%) 13
Debt Refinancing New bank syndicated lending facility until October 2014 The facility includes three financing tranches aggregating $250 million comprising • Working capital and overdraft facility of $70 million (rolling 1 year term) • A revolving debt facility of $120 million (3 year term) • A bank guarantee facility of $60 million (rolling 1 year term) Other arrangements remain for ongoing support of asset finance requirements ($17 million) 14
Property & Infrastructure Property Services margin improved on pcp Facility Management revenue and earnings higher on pcp KLM Electrical and Communication earnings lower than pcp but expect similar result to last year for full year Property & Infrastructure Revenue ($m) Property & Infrastructure EBITA($m) 700 35 FY2011 600 30 FY2011 FY2012 500 25 FY2012 400 20 300 15 200 10 100 5 0 0 1H 2H Full Year 1H 2H Full Year 15
New Maintenance Programmes Property Services improvement projects being delivered well Three new maintenance programmmes offered this year • giving customers greater choice • lower capital requirements • approx. 25% of new programmes sold YTD are non classic Classic Programme ™ Multiform Programme ™ An upfront work schedule with periodic A uniform solution for multiple facilities payment or multiple locations Choices Programme ™ Safeguard Programme ™ You decide when, where and how often, Ongoing preservation programme to and pay as you go keep your coating as new 16
WA Water Corporation Perth Region Alliance Programmed Facility Management successful tenderer Estimated revenue over 10 years $785m Work commences 1 Feb 2012 In partnership with the Water Corporation; scope is for supply of operation and maintenance services covering water, sewerage, and storm water network across north & south metropolitan Perth and Mandurah / Peel region 17
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