Srg Global Limited · ASX:SRG
Srg Global — H1 2023 Earnings Presentation
28 slides from Srg Global's earnings presentation, Feb 16, 2023
Slide 1: Results Presentation 16 February 2023
MAKING THE COMPLEX GLOBAL Ii 2g RESULTS PRESENTATION |
Slide 2: We are a diversified industrial services company
US 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 OPERATING SEGMENTS 2,600 20+ People Industries Asset Maintenance 80+ 5 Mining Services Engineering & Construction Sites Countries OWNERSHIP STRUCTURE 12% Management / Board 750+ 340 45% Institutional Revenue ($m) Market Cap ($m) 3
Slide 4: Summary
SUMMARY RECORD RESULT RETURNS FOR SHAREHOLDERS 1H FY23 EBITDA of $34m, up 26% on 1H FY22 EPS(A) of 3.0cps, up 31% on 1H FY22 EBIT(A) of $20.9m, up 31% on 1H FY22 Fully franked dividend of 2.0cps, up 33% from 1.5cps in 1H FY22 ROBUST CASH GENERATION STRONG OUTLOOK 1H FY23 EBITDA to cash con
Slide 5: Key financials
KEY SRG Global delivers above market 1H FY22 1H FY23 CHANGE financial performance Revenue $297.0m $380.0m ▲ 28% Continuing to convert opportunity EBITDA $27.0m $34.0m ▲ 26% pipeline with blue chip clients EBIT(A) $15.9m $20.9m ▲ 31% Strong business fundamentals provide platform for ongoing NPAT(A) $
Slide 6: Our Strategy
GLOBAL SNECUMING OUR STRATEGY
Slide 7: Most sought-after diversified industrial services business
MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL 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 complement capability
Slide 8: Earnings growth
EARNINGS GROWTH EBITDA EBIT(A) 35.0 21.0 20.9 33.0 34.0 19.0 31.0 18.2 17.0 29.0 30.2 15.0 16.0 27.0 15.6 27.0 26.5 ($M) ($M) 25.0 13.0 23.0 11.0 21.0 9.0 20.5 9.4 19.0 7.0 17.0 15.0 5.0 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H FY21 FY21 FY22 FY22 FY23 FY21 FY21 FY22 FY22 FY23 8
Slide 9: Cash and dividends
CASH AND DIVIDENDS NET DEBT TO NET CASH DIVIDENDS (CPS) 2.0 38.0 2.0 38.1 34.0 30.0 1.5 26.0 1.5 22.0 18.0 20.5 (cents) ($M) 1.0 14.0 1.0 10.0 12.2 6.0 2.0 0.5 0.5 -2.0 -6.0 -8.4 -10.0 0.0 FY20 FY21 FY22 1H FY23 1H FY20 1H FY21 1H FY22 1H FY23 9
Slide 10: Strong foundation
STRONG FOUNDATION 50% 52% 48% 5% 95% Female Male Live for the challenge Smarter together TRIFR REDUCTION Never give up (24 MONTHS) CORPORATE OPERATIONAL Have each other’s backs INDIGENOUS JV 10
Slide 11: Financial Overview
GLOBAL AINANCIAE OVERVIEW
Slide 12: Segment results ($m)
SEGMENT RESULTS ($m) ASSET MINING ENGINEERING & TOTAL CORPORATE MAINTENANCE SERVICES CONSTRUCTION Revenue 380.0 123.1 70.5 186.4 - EBITDA 34.0 14.3 14.2 13.8 (8.3) EBIT(A) 20.9 9.5 10.5 9.8 (8.9) Revenue 28% Corporate overheads of $8.3m equates to EBITDA 26% Asset Maintenance continued its strong 2.
Slide 13: Excellent cash flow
EXCELLENT Continued strong focus on working capital management delivering Normal sustaining capital spend and growth Acquisition of Specialist Engineering operating cashflow before interest and tax of $47.4m capital investment for term contracts secured Products business Lease payments which are inc
Slide 14: Robust balance sheet ($m)
ROBUST BALANCE SHEET ($m) Available liquidity of $173.7m, comprising of cash on 1H FY23 hand of $75.8m and available undrawn working capital and equipment finance facilities of $97.9m Cash and cash equivalents 75.8 Trade, other receivables & contract assets 147.2 Inventories 20.9 Net cash of $38.1m
Slide 15: Our Operating Segments
GLOBAL OUR OPERATING SEGMENTS
Slide 16: Asset Maintenance
ASSET MAINTENANCE 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 16
Slide 17: Asset Maintenance
ASSET MAINTENANCE Excellent mobilisation and operational delivery Significant number of contract wins and extensions secured ‒ 3-year marine maintenance contract with Fremantle Ports ‒ 4-year industrial services contract with Alcoa ‒ 2.5-year specialist access contract with Albermarle ‒ 4-year w
Slide 18: Mining Services
MINING SERVICES 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 18
Slide 19: Mining Services
MINING SERVICES Continued strong operational / financial performance Excellent asset utilisation of >90% A number of contract wins with Northern Star secured ‒ 5-year contract at KCGM ‒ 5-year contract at Bronzewing ‒ 2-year contract extension to existing 5-year contracts at Thunderbox and Car
Slide 20: Engineering & Construction
ENGINEERING & CONSTRUCTION WHAT WE DO CORE SERVICES Specialist engineering and construction • Civil & Engineering of critical infrastructure focused on • Specialist Building dams, bridges, tanks, wind farms, • Engineered Products engineered facades and mine site EARNINGS infrastructure across a dive
Slide 21: Engineering & Construction
ENGINEERING & CONSTRUCTION Civil & Engineering Strong operational performance Robust pipeline of infrastructure opportunities ‒ dams, bridges, tanks, windfarms, mine site infrastructure Increased demand for remedial engineering services in transport and water sectors with key repeat clients
Slide 22: Our Strategic Direction
GLOBAL OUR STRATEGIC DIRECTION
Slide 23: Most sought-after diversified industrial services business
MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL 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 complement capability
Slide 24: Continued growth
CONTINUED GROWTH WORK IN HAND OPPORTUNITY PIPELINE 37% $1.5b 45% 43% 40% $6b 40% 31 December 2022 31 December 2022 21% 20% Asset Maintenance Mining Services Engineering & Construction 24
Slide 25: Outlook
OUTLOOK Operating segment performance… …driving positive momentum Asset Maintenance – delivering step FY23 EBITDA guidance increased to a range change growth in diverse sectors with of $72m - $75m blue-chip clients Strength / diversity of business provides Mining Services – operating in high ong
Slide 26: Proposition
PROPOSITION End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Highly scalable Capital light High yield business investment dividend model profile stock 26
Slide 27: SRG Global
SRG GLOBAL srgglobal.com.au 27
Slide 28: Disclaimer
DISCLAIMER 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 information, opinions or co