FY2012 Results Presentation By Chris Sutherland, Managing Director 30 May 2012
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
Safety pause 4 4
Group FY12 highlights 23% reduction in LTIFR (lost time injury frequency rate) Revenue of $1,394 million, up 14% on pcp 1 Profit of $31.2 million, up 41% on pcp 1 Earnings per share of 26.4c, up 40% on pcp 1 Fully franked final dividend of 8 cents per share, up from 6 cents on pcp Net debt lower to $87.8 million (down from $118.3 million at Mar 2011) Debt refinanced to Oct 2014 Significant contracts for Allseas (Gorgon) and WA Water Corporation commenced in Dec 2011 and Feb 2012 respectively Acquisition of Turnpoint – effective 4 Apr 2012 Major brand refresh completed 1 pcp excluding discontinued operations 5
Group results Year Ended 31 Year Ended 31 Group Results March 2012 March 2011 % change $m $m Continuing operations Revenue 1,393.6 1,220.2 14% EBITDA (before restructuring costs) 67.6 60.9 11% Depreciation and Amortisation (10.9) (12.7) 14% EBIT (before restructuring costs) 56.7 48.2 18% Restructuring costs 0.0 (5.9) EBIT 56.7 42.3 34% Interest (12.5) (14.4) 13% Profit Before Tax 44.2 27.9 58% Income Tax Expense 1 (13.0) (5.7) Profit From Continuing Operations 31.2 22.2 41% Discontinued operations 2 0.0 (11.8) Profit After Tax (statutory basis) 31.2 10.4 200% Earnings Per Share 26.4 8.8 200% Earnings Per Share (continuing operations) 26.4 18.8 40% Weighted Average Shares on Issue (million) 118.2 118.2 1 2011 includes $1.9m tax benefit from retrospective change in tax consolidation rules to allow additional deductions for assets acquired after 1 July 2002 2 Discontinued operations comprise the United Kingdom painting business 6
Group revenue Group Revenue ($m) 1,600 FY2011 1,400 FY2012 1,200 1,000 800 600 400 200 0 1H 2H Full Year 7
Group EBIT Group EBIT ($m) 60 FY2011 50 FY2012 40 30 20 10 0 1H 2H Full Year 8
Group revenue by region W estern A ustralia, 41% New Zealand, 4% O ther, 3% Victoria, 15% N ew South Wales, 16% Queensland, S outh 16% A ustralia, 5% 9
Group cash flow Year Ended 31 Year Ended 31 Group Cash Flow % change March 2012 March 2011 $m $m Gross Operating Cash Flow 72.7 29.1 150% Interest paid (14.9) (14.9) 0% Income tax paid (9.5) (8.9) 7% Net Operating Cash Flow 48.3 5.3 810% Net purchases of non current assets (7.2) (4.9) Payment for businesses 2.1 (0.1) Proceeds from sales of businesses 3.2 3.1 Other investing cash flows 0.4 0.1 Net Investing Cash Flow (1.5) (1.8) (17%) Net borrowings / (repayments) (19.4) (19.1) Proceeds from issue of shares 0.0 0.0 Dividends paid (13.0) (10.6) Net Financing Cash Flow (32.4) (29.7) 9% Net Increase / (Decrease) in Cash 14.4 (26.2) 154.8% Cash at beginning of year 20.1 46.5 Disposals & Exchange Rate Variances 0.2 (0.2) Cash at End of Period 34.7 20.1 72.4% 10
Group balance sheet Balance Sheet 31 Mar 2012 31 Mar 2011 % change $m $m Cash 34.7 20.1 73% Trade and other receivables 214.7 180.7 19% Contract Recoverables 129.8 133.8 (3%) Inventories 66.2 73.8 (10%) Property, plant & equipment 24.3 24.4 (0%) Goodwill & other intangible assets 255.6 251.1 2% Other assets 31.6 33.7 (6%) Total Assets 756.9 717.6 5% Trade and other payables 146.8 134.3 9% Borrowings 122.5 138.4 (12%) Provisions and other liabilities 114.1 93.3 22% Total Liabilities 383.4 366.1 5% Total Equity 373.5 351.5 6% Net Debt 87.8 118.3 (26%) Net Debt / Equity 23.5% 33.7% (30%) 11
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 ($20 million) 12
Property & Infrastructure division Market conditions tightened in second half lowering projected sundry work volume and margins A number of projects delivered at tighter margins in response to competition Strong success in securing major long term contracts Property & Infrastructure Revenue ($m) Property & Infrastructure EBIT($m) 35 700 FY2011 600 30 FY2011 FY2012 500 25 FY2012 400 20 15 300 200 10 100 5 0 0 1H 2H Full Year 1H 2H Full Year 13
Resources division Business development efforts of prior year rewarded with significant increase in volume of work Major Gorgon contract mobilised successfully in Dec 2011 Provided services to more than 60 offshore vessels / rigs or platforms during the year Onshore maintenance and construction support work increased on prior year Resources Revenue ($m) Resources EBIT($m) 30 400 FY2011 FY2011 350 25 FY2012 300 FY2012 20 250 200 15 150 10 100 5 50 0 0 1H 2H Full Year 1H 2H Full Year 14
Integrated Workforce division Challenging conditions remain across retail, manufacturing and light industrial sectors (may have become tighter over last quarter) SME’s remain cautious about hiring people Major miners seek permanent employees Despite weak conditions, business has low cost base and will respond strongly to a broader economic recovery Workforce EBIT($m) Workforce Revenue ($m) 12 450 FY2011 400 FY2011 10 350 FY2012 FY2012 8 300 250 6 200 4 150 100 2 50 0 0 1H 2H Full Year 1H 2H Full Year 15
Strategy – 6 key plans of FY12 Improve our HSE performance Improve our general management skills Improve the returns on capital in our painting business Mine our customer base Minimise the impact of weakness in the general (non- resources) economy Expand our exposure to resources opportunities 16
Outlook “While the external business environment remains challenging and demand from some sectors has weakened, we continue to expand our operations with focus in markets where economic activity is growing. Overall, the group projects moderate growth in earnings for FY2013” 17
Appendix 18
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. 19
Programmed today 10,000+ employees 100+ offices around Australia and NZ $1.4 billion+ revenue 20
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