Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — H1 FY2020 Earnings Presentation
33 slides from Sgh's earnings presentation, Feb 19, 2020
Slide 1: ASX covering letter: Presentation of Half Year Results
19 February 2020 Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street Sydney NSW 2000 By electronic lodgment Total Pages: 33 (including covering letter) Dear Sir / Madam PRESENTATION OF HALF YEAR RESULTS Following is the Presentation of Results for the half y
Slide 2: Leading the Way Forward
LEADING THE WAY FORWARD Investor presentation for the half-year ended 31 December 2019 19 February 2020
Slide 3: Group Overview
FY20 1H Results Presentation Seven Group Holdings 2 19 February 2020 GROUP OVERVIEW Our objective is to grow shareholder returns by ensuring our businesses continue to perform and deliver market-leading positions
Slide 4: People, Safety and Culture
FY20 1H Results Presentation Seven Group Holdings 3 19 February 2020 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Keeping our people safe continues to be our top priority LTIFR TRIFR • Total hours worked increased by 12% over pcp, however overall safety performance has improved over that period Dec 201
Slide 5: Businesses and Markets
FY20 1H Results Presentation Seven Group Holdings 4 19 February 2020 GROUP OVERVIEW BUSINESSES AND MARKETS Mining production Industrial Industrial Energy Media • We provide equipment solutions to the world’s services services investments largest miners, supporting record production volumes and drivi
Slide 6: Bushfire Relief in Pictures
FY20 1H Results Presentation Seven Group Holdings 5 19 February 2020 BUSHFIRE RELIEF IN PICTURES
Slide 7: Bushfire Relief in Pictures
FY20 1H Results Presentation Seven Group Holdings 6 19 February 2020 BUSHFIRE RELIEF IN PICTURES
Slide 8: Bushfire Relief Supporting Our Communities
FY20 1H Results Presentation Seven Group Holdings 7 19 February 2020 BUSHFIRE RELIEF SUPPORTING OUR COMMUNITIES Uniquely positioned to assist our communities • Over 5,750 staff across the Group with incredible work undertaken by 35 of our brave and committed people who serve in the RFS and other vol
Slide 9: Group Overview Highlights
FY20 1H Results Presentation Seven Group Holdings 8 19 February 2020 GROUP OVERVIEW HIGHLIGHTS Continued solid growth in revenue and earnings • Trading revenue of $2.3bn up 12% with growth achieved in all Industrial Services business • EBIT of $418m up $27m or 7%, driven by WesTrac performance • Ope
Slide 10: Group Overview Key Financials
FY20 1H Results Presentation Seven Group Holdings 9 19 February 2020 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) 1H FY20 1H FY19 % Change Trading revenue 2,262.8 2,026.5 11.7% Earnings before interest and tax1 417.6 390.4 7.0% Underlying net profit after tax attributable to shareholders1 2
Slide 11: Group Financials
FY20 1H Results Presentation Seven Group Holdings 10 19 February 2020 GROUP FINANCIALS Our financial results reflect the level of operating performance achieved and our continued focus on driving efficiencies and cash flow
Slide 12: Profit and Loss
FY20 1H Results Presentation Seven Group Holdings 11 19 February 2020 FINANCIALS PROFIT AND LOSS $m 1H FY20 1H FY19 Change % Revenue 2,262.8 2,026.5 12% Other income 35.9 30.4 18% Share of results from equity accounted investees 112.4 112.7 (0)% Trading revenue and other income 2,411.1 2,169.6 11% E
Slide 13: Significant Items
FY20 1H Results Presentation Seven Group Holdings 12 19 February 2020 FINANCIALS SIGNIFICANT ITEMS $m 1H FY20 1H FY19 Share of results from equity accounted investees attributable to significant items – SWM (55.9) - Impairment – SWM equity (56.8) (224.0) Impairment of producing and development asset
Slide 14: Earnings Summary
FY20 1H Results Presentation Seven Group Holdings 13 19 February 2020 FINANCIALS EARNINGS SUMMARY Total Coates Allight Invest- $m WesTrac Energy Media Corporate Group Hire Sykes ments Trading revenue 2,262.8 1,712.8 504.3 41.2 2.1 - 2.4 - Statutory EBIT 200.8 186.0 104.2 (0.1) (26.7) (66.5) 14.6 (10
Slide 15: Cash Flow
FY20 1H Results Presentation Seven Group Holdings 14 19 February 2020 FINANCIALS CASH FLOW $m 1H FY20 1H FY19 Underlying EBIT 417.6 390.4 Add: depreciation and amortisation 130.0 125.6 Underlying EBITDA 547.6 516.0 Operating cash flow 147.8 256.3 Add: interest and other costs of finance paid 68.8 73
Slide 16: Balance Sheet
FY20 1H Results Presentation Seven Group Holdings 15 19 February 2020 FINANCIALS BALANCE SHEET As at As at • Increase in trade and other receivables $m Change % includes the impact of WIP totalling $73m 31 Dec 19 30 Jun 19 Trade and other receivables 756.1 702.9 8% being reclassified from inventory
Slide 17: Capital Management
FY20 1H Results Presentation Seven Group Holdings 16 19 February 2020 FINANCIALS CAPITAL MANAGEMENT Capacity to further optimise borrowing costs • Opportunity presented by refinancing over next 18 months – Expiring debt is diversified across banking syndicate, OEM financing and USPP, providing flexi
Slide 18: WesTrac
FY20 1H Results Presentation Seven Group Holdings 17 19 February 2020 BUSINESS REVIEW WESTRAC Leader in helping customers to drive efficiency by partnering on product support and technology solutions
Slide 19: WesTrac Highlights
FY20 1H Results Presentation Seven Group Holdings 18 19 February 2020 INDUSTRIAL SERVICES WESTRAC HIGHLIGHTS Growing demand for support through parts and rebuilds • Demand driven by high mining equipment utilisation, equipment life extension and growing average fleet age – Strong demand for componen
Slide 20: WesTrac Financials
FY20 1H Results Presentation Seven Group Holdings 19 19 February 2020 INDUSTRIAL SERVICES WESTRAC FINANCIALS Growth achieved across most segments / geographies • Revenue up 15% driven by demand and new machine sales – Product support revenue up $130m or 12%, reflecting maintenance activity previousl
Slide 21: Coates Hire
FY20 1H Results Presentation Seven Group Holdings 20 19 February 2020 BUSINESS REVIEW COATES HIRE A key supplier of equipment to infrastructure and non-residential construction markets with a strong pipeline of projects ahead
Slide 22: Coates Hire
FY20 1H Results Presentation Seven Group Holdings 21 19 February 2020 INDUSTRIAL SERVICES COATES HIRE Activity levels set to improve in key markets • Project and infrastructure activity outlook is positive from FY21 onwards, particularly in engineering construction and non-residential • Confidence i
Slide 23: Coates Hire
FY20 1H Results Presentation Seven Group Holdings 22 19 February 2020 INDUSTRIAL SERVICES COATES HIRE Revenue growth achieved • Strong growth in WA and Industrial Services segment • Total revenue up 2% driven by 26% growth in WA while east coast has declined by 2% against pcp • Improved performance
Slide 24: Energy
FY20 1H Results Presentation Seven Group Holdings 23 19 February 2020 BUSINESS REVIEW ENERGY Portfolio of opportunities within Beach Energy and SGH Energy aimed at meeting the East Coast gas demand and new domestic LNG export opportunities
Slide 25: Beach Energy
FY20 1H Results Presentation Seven Group Holdings 24 19 February 2020 ENERGY BEACH ENERGY Accelerated growth program being executed • Victorian Otway and New Zealand drilling underway, 9-well offshore Otway drilling program to commence in March • Participation in 105 wells during the half at 83% suc
Slide 26: SGH Energy
FY20 1H Results Presentation Seven Group Holdings 25 19 February 2020 ENERGY SGH ENERGY Crux development update $m 1H FY20 1H FY19 • Crux is an attractive asset, uniquely positioned as a backfill opportunity utilising existing infrastructure Sale of oil, gas and condensate 2.1 4.0 • Anticipated glob
Slide 27: Media
FY20 1H Results Presentation Seven Group Holdings 26 19 February 2020 BUSINESS REVIEW MEDIA Seven Network provides leadership through its mass audience reach across multiple platforms
Slide 28: Seven West Media
FY20 1H Results Presentation Seven Group Holdings 27 19 February 2020 MEDIA SEVEN WEST MEDIA SWM growth in revenue share in a challenging market $m 1H FY20 1H FY19 • #1 FTA metro revenue share in 1H20, up 0.4% to 38.8% share, with increased leadership in News & Current Affairs and Sports Share of as
Slide 29: Listed Portfolio and Property
FY20 1H Results Presentation Seven Group Holdings 28 19 February 2020 INVESTMENTS LISTED PORTFOLIO AND PROPERTY Unlocking value of listed portfolio $m 1H FY20 1H FY19 • Mark-to-market loss of $15m during the period Revenue 2.4 1.3 • Intention to further sell down over time to fund other opportunitie
Slide 30: Group Outlook
FY20 1H Results Presentation Seven Group Holdings 29 19 February 2020 GROUP OUTLOOK Focused on how we can position the businesses to best drive value and realise their potential
Slide 31: Outlook FY20
FY20 1H Results Presentation Seven Group Holdings 30 19 February 2020 OUTLOOK FY20 Business Outlook Strong medium to long term outlook for mining production and infrastructure investment WesTrac and Coates Opportunities being created through new mining projects planned by major miners and growin
Slide 32: Disclaimer
FY20 1H Results Presentation Seven Group Holdings 31 19 February 2020 GROUP OVERVIEW DISCLAIMER Basis of preparation of slides • Included in this presentation is data prepared by the management of Seven Group Holdings Limited (“SGH”) and other associated entities and investments. This data is includ
Slide 33: Appendix: Prior Year Restatement
FY20 1H Results Presentation Seven Group Holdings 32 19 February 2020 APPENDIX PRIOR YEAR RESTATEMENT 1H FY19 1H FY19 30 Jun 19 30 Jun 19 P&L $m Balance Sheet (selected items) $m Restated Reported Restated Reported Trading revenue and other income 2,169.6 2,171.0 Trade and other receivables (current
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