Emeco Holdings Limited · ASX:EHL
Emeco — Investor Presentation (June 2019)
15 slides from Emeco's investor presentation, Jun 12, 2019
Slide 1: FY19 Guidance, Operating Update and Investor Presentation
Emeco Holdings Limited FY19 Guidance, Operating Update and Investor Presentation June 2019
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Reliance on third party information such investigations and taking such advice as may be such statements. The information and views expressed in this Presentation deemed necessary. To the maximum extent permitted by law, the Company were prepared by Emeco Holdings Lt
Slide 3: Operational update
Operational update Emeco
Slide 4: FY19 Operational Update
FY19 OPERATIONAL UPDATE Emeco forecasts FY19 Operating EBITDA to be up almost 40% YoY at between $211 million and $213 million Group update Eastern Rental Region • Emeco expects to FY19 Operating EBITDA in the range of $211 million to • Growth assets are being placed in the Eastern Region to meet st
Slide 5: Emeco's value creation model
Emeco’s value creation model 4
Slide 6: Emeco's Long-Term Value Creation Model
EMECO’S LONG-TERM VALUE CREATION MODEL Differentiating Emeco to create a competitive advantage by being the highest quality and lowest cost provider of earthmoving equipment services to drive value through the cycle Generate returns Reinvest in the business — Attractive shareholder returns — In-dema
Slide 7: Extensive Remaining Life in Emeco Fleet
EXTENSIVE REMAINING LIFE IN EMECO FLEET While Emeco’s fleet is young, Emeco has enhanced its capability to push out equipment lives to take advantage of the market’s acceptance for older fleet • Overall, Emeco’s fleet is young Emeco Fleet Age Profile compared to the average across the industry Emeco
Slide 8: Value is in the Components
VALUE IS IN THE COMPONENTS Emeco’s best-in-class asset management capabilities enable us to maximise returns by investing in mid-life equipment and extend component lives to reduce costs, whilst sustaining equipment reliability Asset value throughout its life • Emeco invests in mid-life equipment to
Slide 9: Workshop Capabilities
WORKSHOP CAPABILITIES Emeco’s workshops and craftsmanship capabilities enables us to rebuild drive- train components Emeco’s workshops capability provides the following benefits: • Significant capex savings • More reliable product offering given guaranteed availability of critical spares in a tighte
Slide 10: Engineering and Planning Capability
ENGINEERING AND PLANNING CAPABILITY Strategic partnership with Quartile One provides advanced analytics delivering optimised asset decisions to ensure industry leading asset performance Component analysis Asset performance management Industry benchmarking • Reliability engineers monitor the • Reduct
Slide 11: Reducing Component Costs
REDUCING COMPONENT COSTS Reducing component costs and extending component life provides Emeco with a competitive advantage and maximising return on assets Major Component Cost per Hour Benchmarking • Emeco’s centralised planning team monitors and manages over 12,000 components • Optimising component
Slide 12: Industry Leader in Reducing Life Cycle Costs
INDUSTRY LEADER IN REDUCING LIFE CYCLE COSTS Focus on being the highest quality and lowest cost provider of assets ensures Emeco is a leader on the cost curve throughout an asset’s life Australia benchmark performance range 2019 Emeco Performance Quartile One: Australia Dozer Benchmark 11
Slide 13: Strong Equipment Rental Demand
STRONG EQUIPMENT RENTAL DEMAND Mining companies remain reluctant to overinvest in fleet following the excesses of 2010 to 2013 – equipment rental becomes a desirable value proposition Annual production vs fleet in Australia 2013-2016: Investment in mining equipment 4 1,600 ceased. Production continu
Slide 14: Commitment to a Strong Balance Sheet
COMMITMENT TO A STRONG BALANCE SHEET Emeco is continues on its aggressive deleveraging path On track to achieve deleveraging target • Emeco is focused on ensuring a healthy balance sheet 6.0x through the cycle 5.5x • Emeco is committed to its aggressive deleveraging path (1.0x FY21 target) • Objecti
Slide 15: Thank you
Thank you emecogroup.com