Emeco Holdings Limited · ASX:EHL
Emeco — Conference Presentation (June 2022)
13 slides from Emeco's conference presentation, Jun 15, 2022
Slide 1: Managing inflation and supply chain risk & FY22 guidance update
Emeco Holdings Limited Managing inflation and supply chain risk & FY22 guidance update June 2022
Slide 2: Emeco managing inflation and supply chain risk
EMECO MANAGING INFLATION AND SUPPLY CHAIN RISK The business model Emeco has developed positions us well to absorb cost inflation and manage supply chain risk to outperform our competitors We do this by the following: 1. We have the ability to procure low-cost midlife asset cores. Asset cores are equ
Slide 3: 1. Procure midlife asset cores - minimal capital outlay & creates optionality
1. PROCURE MIDLIFE ASSET CORES - MINIMAL CAPITAL OUTLAY & CREATES OPTIONALITY Strategic procurement of midlife asset cores enables us to have capacity available to both replenish and grow our fleet, and provides us optionality with minimal capital outlay Emeco is constantly scanning the second-han
Slide 4: 2. Force ability to rebuild midlife asset cores
2. FORCE ABILITY TO REBUILD MIDLIFE ASSET CORES Force rebuild capability provides Emeco with a strategic and cost advantage versus our competitors The Force business rebuilds equipment, both for retail customers and Emeco’s Force Rebuilt D11T Dozer open cut and underground rental businesses, at OE
Slide 5: Case studies – procure midlife cores and rebuild them
CASE STUDIES – PROCURE MIDLIFE CORES AND REBUILD THEM Emeco has demonstrated the value of this process through multiple purchases over the last two years The following examples demonstrate Emeco Group creating value BEFORE through our disciplined approach to planning and executing on BEFORE Core Sim
Slide 6: 3. Extend the life of existing rental assets
3. EXTEND THE LIFE OF EXISTING RENTAL ASSETS The most cost effective and capital efficient strategy to sustain earnings Emeco’s midlife asset business model leverages our Force workshops and reduces the capital intensity of our fleet To fully leverage the midlife model, Emeco aims to maximise th
Slide 7: 4. Rebuilding our own components
4. REBUILDING OUR OWN COMPONENTS Providing a cost advantage, protecting from component price increases, and crucially providing reliability of supply of key components that keep our fleet working Emeco have a large fleet of predominately (85%) Caterpillar equipment Emeco's fleet composition make
Slide 8: 5. Asset management planning, capex management & business improvement
5. ASSET MANAGEMENT PLANNING, CAPEX MANAGEMENT & BUSINESS IMPROVEMENT Data driven approach to asset management is the cornerstone to informed decision making, business improvement and executing the strategy Emeco has developed a best-in-class Asset Management Hub that supports commercial decision
Slide 9: 6. Emeco is an employer of choice for the industry's best people
6. EMECO IS AN EMPLOYER OF CHOICE FOR THE INDUSTRY’S BEST PEOPLE Attracting and retaining quality people, by providing training and career paths, translates into our customers consistently receiving a quality result Our EMECO Culture John Worsfold leads our People and Culture function He is our
Slide 10: Emeco creating value and managing inflation and supply chain risk
EMECO CREATING VALUE AND MANAGING INFLATION AND SUPPLY CHAIN RISK So what does that mean – creating value for customers and shareholders Emeco has developed a sustainable position as the lowest cost Emeco has capability to purchase midlife equipment cores with low provider of midlife open cut an
Slide 11: FY22 Guidance Update
FY22 Guidance Update € Emeco
Slide 12: FY22 highlights, guidance update and outlook
FY22 HIGHLIGHTS GUIDANCE ANDUPDATE OUTLOOK FY22 Operating EBITDA is expected to be at the bottom end of our guidance range of $250m to $260m Operating EBITDA We expect to deliver Operating EBITDA growth relative to both 1H22 and FY21 The team has achieved this despite the various challenges faci
Slide 13: Thank you
Thank you emecogroup.com