Sgh Limited · ASX:SGH
Sgh — Shareholder Meeting (November 2024)
26 slides from Sgh's shareholder meeting presentation, Nov 14, 2024
Slide 1: 2024 Annual General Meeting Addresses
14 November 2024 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 2024 ANNUAL GENERAL MEETING ADDRESSES Attached is a copy of the Chairman’s Address, Managing Director & Chief Executive Officer’s Address, and Presentation to be made at the Annual G
Slide 2: Chairman's Address: Who We Are
SGH 2024 Annual General Meeting Chairman’s and Managing Director & CEO’s Addresses 14 November 2024 Chairman’s Address Who We Are SGH is one of Australia’s leading diversified operating businesses, with a market capitalisation of over $17 billion. We are an ASX100 company, with free-float capitalisa
Slide 3: Board, Name Change and Decarbonisation
With Richard leaving us, we have appointed Mark Johnson to the Board, and he offers himself for election by vote today. Welcome, Mark. Having previously served on the Board of Boral, Mark is a highly credentialed company director and corporate executive, with deep sector experience across resources,
Slide 4: Sector Outlook: Mining, Infrastructure, Energy
In mining production, commodity export volumes continued to grow in FY24, and are expected to remain strong in our core bulk commodities through this decade and beyond. This positive production outlook is echoed in the committed resource project pipeline of $77 billion, the majority of which sits wi
Slide 5: Approach to Long Term Value Creation
Approach to Long Term Value Creation Disciplined capital allocation is an enabler of how SGH delivers value. This slide outlines our approach to capital allocation in action. For SGH, it is all focused on how we effectively use our capital base to deliver superior returns over the long-term. Our str
Slide 6: WesTrac and Boral Business Update
The activity levels are also reflected in our most recent FY24 results, with revenue growth of 23%, significantly ahead of the 10yr CAGR of 11%. The capital sales pipeline remains robust and is supported by the positive production outlook, committed resource projects, and Cat’s technology leadership
Slide 7: Energy Update
Energy Beach has refreshed its strategy to focus on three central themes to deliver returns – core hubs, high margins, and sustainable growth. This strategy will be supported with disciplined execution. Beach has had a solid start to the year with first quarter production up 10%. In the Perth basin,
Slide 8: Key Messages and Outlook
Key Messages and Outlook SGH continues to execute on our capital allocation and operating models with discipline and accountability. We have consistently delivered earnings growth and TSR outperformance over the past decade, and our investment into our core industrial businesses positions us to cont
Slide 9: Chairman's Address
For personal use only SGH 2024 AGM Chairman’s Address Terry Davis, Chairman 14th November 2024
Slide 10: SGH Overview – Who We Are
SGH Overview – Who We Are Seven Group Holdings Strategic Growth-Sector Exposures • One of Australia’s leading diversified operating groups $17 billion market capitalisation, ASX100 constituent For personal use only • Market leading businesses • Scale and leadership positions in respective markets Mi
Slide 11: SGH Overview – Board of Directors
SGH Overview – Board of Directors For personal use only Terry Davis Ryan Stokes AO Rachel Argaman OAM Annabelle Chaplain AM Kate Farrar Mark Johnson Chris Mackay David McEvoy Warwick Smith AO SGH WesTrac Boral Coates Energy Media & Other Voting 3
Slide 12: SGH Overview – Name Change
SGH Overview – Name Change Merger of Seven Network Limited and 2010 WesTrac Group to form SGH On 22nd February 2010, SNL reaches an agreement with ACE on a proposal to combine assets SGH Limited For personal use only 2014 Formation of SGH Energy SGH enters energy space via acquisition of Nexus www.s
Slide 13: SGH Overview – Decarbonisation of our Businesses
SGH Overview – Decarbonisation of our Businesses Targeting emissions intensity reductions from FY20 base year Boral WesTrac Coates For personal use only 30% 40% 40% Reduction by FY30 Reduction by FY30 Reduction by FY30 Ambition to achieve net-zero by 2050 Note: Stated emissions reduction targets ref
Slide 14: MD&CEO Address
For personal use only SGH 2024 AGM MD&CEO Address Ryan Stokes AO, MD&CEO 14th November 2024
Slide 15: SGH Overview – Strategic Sector Exposures
SGH Overview – Strategic Sector Exposures WesTrac Key Bulk Commodity Outlook 1,000 230 Thermal Coal (mt) 950 210 Iron Ore (mt) 900 190 Mining Infrastructure & Transitional For personal use only Production Construction Energy 850 170 800 150 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 • Commodity ex
Slide 16: SGH Overview – POV and Operating Model
SGH Overview – POV and Operating Model Purpose, Objectives and Values SGH Operating Model For personal use only Purpose Recognising and serving exceptional businesses Strategic Maximise return to Objective stakeholders through long term sustainable value creation Accountable, Scalable Operating Mode
Slide 17: SGH Overview – Approach to Value Creation
SGH Overview – Approach to Value Creation Capital Allocation Model and Value Creation in Action Structureuse only EPS Share Price Growth Appreciation Capital Allocation Industrials & Energy FCF Application <2.5x (ND/EBITDA) personal Deleverage Strong OCF Demand thematics CPI+ growth & op leverage En
Slide 18: SGH Overview – Safety and Sustainability
SGH Overview – Safety and Sustainability Safety results reflect strong operating culture • 26% improvement in FY24 LTIFR (1.4) and TRIFR (4.5) • Achieved through: Visible leadership, WHS compliance For personal use only and risk management Sustainability Highlights • WesTrac commissioning first Cate
Slide 19: WesTrac – Business Update
WesTrac – Business Update Long-term demand, revenue and earnings growth WesTrac Revenue Split ($m) 6,000 • 10 Year CAGRs: 11% Services Revenue, 15% Capital 5,000 Capital sales Services sales Revenue, 16% WesTrac EBIT For personal use only 4,000 • Impact of commodity pricing minimal on Australia’s 3,
Slide 20: Boral – Business Update
Boral – Business Update Good to Great performance journey continues • Supported by investment in: Quarries to extend Boral’s Vertically Integrated Network life and strengthen network, HME fleet to improve R&M efficiency For personal use only • SG&A control and rationalisation generating enduring pro
Slide 21: Coates – Business Update
Coates – Business Update Operating leverage focus driving results Coates R&M vs Sales and Redline History 30% • FY24 EBIT margin of 29%, 8th consecutive year of growth Redline R&M/Sales 25% • Hub-and-spoke roll-out generating R&M efficiency and asset utilisation gains: For personal use only 20% • Re
Slide 22: Energy – Business Update
Energy – Business Update Beach Energy (30%) • Strong start to FY25, production up 10% QoQ 24% increase in Otway basin production For personal use only • • 81% increase in Bass basin production • Waitsia JV to take over management of specific project commissioning scopes of work • 27% headcount reduc
Slide 23: Media and Other – Business Update
Media and Other – Business Update Seven West Media (40%) • Organisational restructure complete, increasing focus on commerciality and performance culture For personal use only • Significant cost efficiency program ongoing • Digital platform growth to be supported by upcoming commencement of streamin
Slide 24: SGH Overview – Delivering TSR Outperformance
SGH Overview – Delivering TSR Outperformance Total Shareholder Returns (TSR) SGH and ASX100 Compound Annual TSR • Strong TSR results driven by share price appreciation 56% and +301 years of stable/growing dividends Median Top Quartile Top Decile SGH For personal use only • Top decile returns across
Slide 25: SGH – Key Messages & Reiterating Guidance
SGH – Key Messages & Reiterating Guidance Disciplined execution and capital management driving: • Long-term outperformance and value creation A decade of high-teen EBIT growth For personal use only • • Core-plus investment characteristics Balanced outlook, reiterate guidance • Strong product support
Slide 26: SGH – Disclaimer
SGH – 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 included for information purposes only and has not been subject to the same level of re