Srg Global Limited · ASX:SRG
Srg Global — Shareholder Meeting (October 2022)
26 slides from Srg Global's shareholder meeting presentation, Oct 13, 2022
Slide 1: 13 October 2022
For personal use only 13 October 2022
Slide 2: Diversified industrial services company
US For personal use only We are a diversified We bring an engineering The most sought-after industrial services mindset to deliver diversified industrial company critical services for services business major industry 2
Slide 3: Profile
PROFILE For personal use only OPERATING SEGMENTS 2,600 20+ People Industries Asset Maintenance 80+ 6 Mining Services Engineering & Construction Sites Countries OWNERSHIP STRUCTURE 12% Management / Board 645 320 45% Institutional Revenue ($m) Market Cap ($m) 3
Slide 4: Summary
SUMMARY For personal use only Underlying FY22 EBITDA* of $57.2m up 22% and EBIT(A)* of $34.2m up 36% Strong FY22 operating cashflow with EBITDA to cash conversion of 106% Net cash of $20.5m after funding successful acquisition of WBHO Infrastructure 2H fully franked dividend of 1.5cps up 50%
Slide 5: Key FY22 results
KEY For personal use only FY22 EBITDA exceeds FY21 FY22 CHANGE upgraded market guidance Revenue $570.0m $644.2m ▲ 13% Successful acquisition and EBITDA $47.1m $57.2m ▲ 22% integration of WBHO Infrastructure EBIT(A) $25.1m $34.2m ▲ 36% Record Work in Hand of $1.3b NPAT(A) $14.9m $23.4m ▲ 57% up 30% f
Slide 6: Transformation
For personal use only TRANSFORMATION 6
Slide 7: Were: earnings from one-off projects
WERE For personal use only The majority of the Company’s earnings were derived from one-off projects. Annuity Project EBITDA ~ $40M 30% 70% Asset Maintenance Engineering & Mining Services Construction 7
Slide 8: Are: annuity/recurring earnings
ARE For personal use only Over 2/3rds of the Company’s EBITDA earnings are now derived from ~ $57M annuity / recurring earnings. Annuity Project EBITDA ~ $40M 70% 30% Asset Maintenance Engineering & Mining Services Construction 8
Slide 9: Transitioned to annuity/recurring earnings
TRANSITIONED TO ANNUITY/RECURRING For personal use only EARNINGS LEADERSHIP HORIZON Zero Harm / ESG industry leader and recognised employer / partner of choice Domestic / International growth in Engineered Products across all SRG Global operating segments Selective strategic acquisitions to compleme
Slide 10: Earnings growth
EARNINGS GROWTH For personal use only EBITDA EBIT(A) 31.0 19.0 30.2 18.2 29.0 17.0 27.0 16.0 27.0 15.0 15.6 26.5 25.0 13.0 ($M) ($M) 23.0 11.0 21.0 20.5 9.0 19.0 9.4 7.0 17.0 15.0 5.0 1H 2H 1H 2H 1H 2H 1H 2H FY21 FY21 FY22 FY22 FY21 FY21 FY22 FY22 10
Slide 11: Cash and dividends
CASH AND DIVIDENDS For personal use only NET DEBT TO NET CASH FULL YEAR DIVIDENDS (CPS) 22.0 3.0 3.0 20.5 18.0 2.5 14.0 2.0 12.2 10.0 2.0 (cents) ($M) 6.0 1.5 2.0 1.0 1.0 -2.0 0.5 -6.0 -8.4 -10.0 0.0 FY20 FY21 FY22 FY20 FY21 FY22 Note: FY22 Net Cash position after funding acquisition of WBHO Infrast
Slide 12: Strong foundation
STRONG FOUNDATION For personal use only 42% IMPROVEMENT IN TRIFR 52% 48% 5% 95% Female Male Live for the challenge Smarter together Never give up CORPORATE OPERATIONAL Have each other’s backs INDIGENOUS JV 12
Slide 13: Operating segments
For personal use only SEGMENTS OPERATING 13
Slide 14: Asset Maintenance
ASSET MAINTENANCE For personal use only WHAT WE DO CORE SERVICES Integrated multi-disciplinary maintenance, • Specialist Maintenance access solutions, asset repair and • Access Solutions protection services that sustain and EARNINGS extend critical industries and infrastructure. Annuity / Recurring
Slide 15: Asset Maintenance
ASSET MAINTENANCE For personal use only Excellent mobilisation and operational delivery Significant number of contract wins and extensions secured ‒ 7-year windfarm maintenance contract with Meridian Energy ‒ 5-year multi-disciplinary services contract with FMG Iron Bridge ‒ 5-year civil mainten
Slide 16: Mining Services
MINING SERVICES For personal use only WHAT WE DO CORE SERVICES The critical drill and blast, performance • Production Drill and Blast analytics software and ground • Geotechnical Services stabilisation services that keep mine EARNINGS production moving. Annuity / Recurring 16
Slide 17: Mining Services
MINING SERVICES For personal use only Continued strong operational / financial performance Excellent asset utilisation of >90% A number of contract wins and extensions secured ‒ 5-year contract with SIMEC Mining ‒ 2-year contract with Evolution Mining ‒ 2-year contract with Navarre Minerals ‒
Slide 18: Engineering & Construction
ENGINEERING & CONSTRUCTION For personal use only WHAT WE DO CORE SERVICES Specialist engineering and construction • Civil & Engineering of critical infrastructure focused on • Specialist Building dams, bridges, tanks, wind farms and • Engineered Products engineered facades across a diverse EARNINGS
Slide 19: Engineering & Construction
ENGINEERING & CONSTRUCTION For personal use only Civil & Engineering Strong operational performance Robust pipeline of infrastructure opportunities ‒ dams, bridges, tanks, windfarms, site infrastructure Highest national bridge / road accreditation (R5 / B4) Successful acquisition and integra
Slide 20: Strategic direction
For personal use only DIRECTION STRATEGIC 20
Slide 21: Most sought-after diversified industrial services business
MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL For personal use only SERVICES BUSINESS LEADERSHIP HORIZON Zero Harm / ESG industry leader and recognised employer / partner of choice Domestic / International growth in Engineered Products across all SRG operating segments Selective strategic acquisitions to
Slide 22: Continued growth
CONTINUED GROWTH For personal use only WORK IN HAND OPPORTUNITY PIPELINE 37% $1.3b 45% 46% 40% $6b 40% 30 June 2022 30 June 2022 17% 20% Asset Maintenance Mining Services Engineering & Construction 22
Slide 23: Outlook
OUTLOOK For personal use only Operating Segment Outlook Asset Maintenance delivering step change growth in diverse sectors with blue-chip clients Mining Services operating in high demand, high quality growth commodities Engineering & Construction positively linked to significant infrastructure
Slide 24: Proposition
PROPOSITION For personal use only End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Highly scalable Capital light Dividend business investment paying model profile stock 24
Slide 25: SRG Global
For personal use only SRG GLOBAL srgglobal.com.au 25
Slide 26: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by SRG Global Limited (ABN 81 104 662 259) (SRG). By accessing this presentation you acknowledge that you have read and understood the following statement. This presentation contains general summary information about SRG. The infor