NRW : Rottnest Conference Presentation

NRW HOLDINGS

Rottnest conference 2022

onlyuse MainersonalRoads WA.

FY22 HALF YEAR RESULTS - OVERVIEW AND NEW CONTRACTS UPDATE

FINANCIAL

• Revenue $1,160.0M and EBITDA of $133.6M in line with guidance.

• Earnings (Operating EBIT) up 26% to $74.6M high end of guidance.

• Significant improvement in Capital management.

only	o Cash balance at 31 December $195.9M.
o Statutory cashflow from operations of $145.1M.
o Cash conversion circa 113%.
o Net debt reduced to $40.0M compared to $171.3M at 30 June (or $88.7M proforma post Boggabri sale).
o	Gearing at 7%.
use
o	Dividend payments in the half of $22.5M.

• Interim dividend declared at 5.5 cents per share fully franked, up 37% on pcp.

CONTRACTS UPDATE

• Baralaba - Binding letter of intent received for 5.5 year contract - $800M

ersonal
•	Coronado Curragh Pty Ltd - Contract being finalized will add circa $1B to current order book
•	Current order book circa $4.3B (excluding Curragh)

2

WORKFORCE AND SAFETY

SAFETY

• Safety - improvement in TRIFR (Total Recordable Injury Frequency Rate) from 6.11 (Jun 21) to 4.70 (Dec 21).

PEOPLE

• Continued focus on the retention, training and development of our workforce of 6,200 (Dec 21).

• Borders now open but Omicron variant likely to have impact on absenteeism rates in the short term.
o Current experience on Queensland projects (Dec/Jan).
only	o Staff numbers impacted circa 5% - 15% (5% level not unusual during flu seasons) - current trends
support improvement.
o Operations mitigated through actions including site optimisation, overtime and bringing staff in from
alternate shift rosters.
	o Our experience is that project performance has not been materially impacted.

• NRW Operator Training Centre providing training to new recruits and upskilling current employees.

o Fully operational training facility - fleet of equipment up to 90 tonne dump truck.
o 60% of training centre graduates to date are female.
Recent graduates already mobilised to projects including Mt Webber, Dalgaranga and Iron Bridge.
use
Recent g aduates with trainer Dianne Pearce.	Equipment training underway at NRW Operations Training Centre.	Training room at NRW Operations Training Centre.
ersonal

3

CIVIL

• Project margins recovering although residual impact of lower volumes on business cost base will continue to impact overall margin until volumes increase as anticipated in FY23.
• Urban business in South East Queensland - remains very busy.

	FH FY22	FH FY21
Revenue ($M)	226.9	474.7
EBIT ($M)	9.9	16.3
Margin (%)	4.4%	3.4%

• Next phase of iron ore projects expected second half calendar 2022 - Replacement tonnes onlyand growth projects planned. Also, Increasing focus on developing Magnetite mines.
• Currently bidding several major infrastructure projects in WA and QLD with calendar 2023 commencement.
• Risk mitigation approach to new contracts in managing challenging labour and supply chain environment
• Active tenders $880M

use
PROJECT TIMELINE
Koodaideri Southern Rail
Iron Bridge Bulk Earthworks
Iron Bridge TSF
Gudai-Darri Solar Farm Project
ersonal
Nammuldi WFSF Stage 3
West Angeles G2
FAL
BORR
Mitchell Freeway H2H
I telligent Freeways Alliance
South Walker Creek
Peak Downs
Ironbark
Boomerang Creek
Lendlease - Yarrabilba P4
	20	21	22	23	24

4

MINING

• Most of FY22 expected revenue now secured following extensions at Curragh,

FH FY22

FH FY21

Phosphate Hill, Baralaba, Kogan Creek and South Middleback Ranges.

$M

%

$M

%

• Binding letter of intent received for 5.5 year contract extension at Baralaba - $800M

Revenue

611.3

585.4

• Coal market very strong - additional seventh fleet deployed at Curragh and new

EBITDA

98.6

16.1%

104.5

17.9%

Depreciation

(49.1)

(64.6)

Broadlea contract will increment second half revenues.

• Karara Iron Ore - $702M contract commenced as planned in March 2022 utilising

EBIT

49.5

8.1%

39.9

6.8%

new Mining fleet. Recruited 250 strong workforce.

• Growth sector Green Tech (copper, lithium, nickel).

• Currently bidding several large iron ore and Lithium prospects.

• Active tenders $4.0B

only

PROJECT TIMELINE

use

Mt Webber

Dalgaranga

Roper Bar

Karara

Isaac Plains East

Kogan Creek

Curragh

Baralaba

Phosphate Hill

ersonal

Boggabri

SA operations

Broadlea

20

21

22

23

24

25

Order Book

LOI

Expected Client extension

5