Srg Global Limited · ASX:SRG
Srg Global — H1 2021 Earnings Presentation
30 slides from Srg Global's earnings presentation, Feb 23, 2021
Slide 1: 1H FY21 Investor Presentation
For personal use only 1H FY21 INVESTOR PRESENTATION 23 February 2021 1
Slide 2: About Us
ABOUT US For personal use only WHO WE ARE We’re a global engineering-led specialist asset services, mining services and construction group OUR OPERATING MODEL End-to-end solutions across the entire asset lifecycle OUR VISION The most sought-after specialist asset services, mining services and constr
Slide 3: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY SUBSTANTIAL HOLDERS For personal use only Shares on Issue 445.8m Perennial Value Investment 11.6% Share Price(1) $0.46 Mitsubishi UFG Financial Group, Inc 8.5% Market Capitalisation(1) $205m Board and Management 12.1% Net Assets $223m Note: (1) Share price and market capi
Slide 4: Our People Are Our Foundation
OUR PEOPLE ARE OUR FOUNDATION HIGHLY SKILLED ZERO HARM WORKFORCE IMPROVEMENT For personal use only 21% 24% Improvement 2,300 EMPLOYEES 79% Tech. / Eng. / Mgmt. Operational TRIFR Dec 19 TRIFR Dec 20 GENDER BUGARRBA ABORIGINAL MODERN SLAVERY DIVERSITY JOINT VENTURE GOVERNANCE Male Female Scaffolding S
Slide 5: Review 1H FY21
For personal use only REVIEW 1H FY21 5
Slide 6: Executive Summary
EXECUTIVE SUMMARY Revenue Up 6% to $283m (from 1H FY20) For personal use only EBITDA Up 32% to $20.5m (from 1H FY20) Net Cash Improved to $5.3m (from Net Debt of $8.4m as at 30 June 2020) Fully Franked Dividend Doubled to 1 cent per share in 1H FY21 (from 1H FY20) $750m of Contract Wins an
Slide 7: Continuing the Momentum
CONTINUING THE MOMENTUM “$750M OF CONTRACT WINS ANNOUNCED SINCE 1 JULY” For personal use only 7
Slide 8: Winning in Diverse Sectors
WINNING IN DIVERSE SECTORS Contracts won in FY21 For personal use only 8
Slide 9: Winning in Diverse Geographies
WINNING IN DIVERSE GEOGRAPHIES For personal use only Contracts won in FY21 9
Slide 10: Record Work in Hand
RECORD WORK IN HAND For personal use only 15+ $707m 30 June 2020 TERM CONTRACTS 1HFY20 ` $1b 31 December 2020 Note: Work In Hand as at 31 December 2020 does not include $200m of work announced in January and February 2021 10
Slide 11: Strong Platform for Growth
STRONG PLATFORM FOR GROWTH WORK IN HAND OPPORTUNITY PIPELINE For personal use only 40% 40% $1b 45% 45% 45% $6b 31 December 2020 31 December 2020 15% 15% Asset Services Mining Services Construction 11
Slide 12: Executing the Growth Phase of Our Strategy
EXECUTING THE GROWTH PHASE OF OUR STRATEGY “Continuing to transition the business mix towards For personal use only annuity earnings” LEADERSHIP GROWTH Zero Harm / ESG industry leader and Step change growth in recurring recognised employer of choice Asset Services Key partner of choice in our spec
Slide 13: Solid 1H FY21 Financial Performance
SOLID 1H FY21 FINANCIAL PERFORMANCE For personal use only SEGMENT RESULTS ($m) ASSET MINING TOTAL SERVICES SERVICES CONSTRUCTION CORPORATE Revenue 283.3 85.9 42.9 154.4 - EBITDA 20.5 10.2 9.9 7.4 (7.0) Revenue in 1H FY21 of $283m Corporate overheads of (up 6% from 1H FY20). Asset Services experience
Slide 14: Generating Positive Operating Cash
GENERATING POSITIVE OPERATING CASH Strong focus on working capital management, Normal sustaining capital spend and Reflects prudent capital management converting WIP to cash and reducing payment growth capital investment for eight-year, with a continued focus on minimising For personal use only time
Slide 15: Strong Financial Position for Growth
STRONG FINANCIAL POSITION FOR GROWTH BALANCE SHEET ($m) For personal use only Available liquidity of $82m, comprised of cash 1H FY21 on hand of $40m and available undrawn Cash and cash equivalents 40.3 working capital facilities of $42m Trade, other receivables & contract assets 109.2 Inventories 17
Slide 16: Our Operating Segments
For personal use only OUR SEGMENTS OPERATING
Slide 17: Asset Services Overview
ASSET SERVICES OVERVIEW For personal use only KEY CLIENTS 17
Slide 18: Asset Services Update
ASSET SERVICES UPDATE For personal use only Strong operational / financial performance in 1H Alcoa Kwinana A number of contract wins YTD in FY21 ‒ 5-yr multi-disciplinary contract with FMG ‒ 5-yr access contract with Liberty OneSteel ‒ 8-yr maintenance contract with NZTA for Auckland Harbour Bri
Slide 19: Asset Services in Action
ASSET SERVICES… IN ACTION For personal use only Alcoa South32 Fortescue Metals (FMG) 5 Year Term Contract 8 Year Term Contract 5 YearAuckland Term Contract Harbour Bridge Multi-Disciplinary Services Refractory Services Multi-Disciplinary Services “End to End Solution” “Leveraging Site Presence / Cap
Slide 20: Mining Services Overview
MINING SERVICES OVERVIEW For personal use only KEY CLIENTS 20
Slide 21: Mining Services Update
MINING SERVICES UPDATE For personal use only A very strong performance in 1H FY21 Excellent asset utilisation of >90% Continued capital investment in fleet for growth and sustaining capital Continued focus on innovation including: ‒ high precision GPS ‒ bespoke real-time data analytics ‒ sem
Slide 22: Mining Services in Action
MINING SERVICES… IN ACTION For personal use only Saracen Kalgoorlie Super Pit Innovation 5 Year Term Contract 5 Year Term Contract Remote ControlHarbour Auckland DrillingBridge Production Drill & Blast Services Specialist Geotech Services Data Analytics “New Blue-Chip Client” “25-year history on sit
Slide 23: Construction Overview
CONSTRUCTION OVERVIEW For personal use only KEY CLIENTS 18% 23
Slide 24: Construction Update
CONSTRUCTION UPDATE For personal use only Civil and Engineering Fairbairn Dam Strong performance in Australia Strong pipeline of Government opportunities ‒ Dams, Bridges, Tanks Scaled back operations Internationally Target specialist projects globally from Australia ‒ Dams, Bridges, Tanks Sp
Slide 25: Civil Engineering in Action
CIVIL ENGINEERING… IN ACTION For personal use only Fairbairn Dam Bolivia Hill Kuwait LNG Tanks Sunwater, Queensland Transport for NSW Hyundai Engineering Auckland & Construction Harbour Bridge Specialist Dam Anchoring Specialist Bridge Construction Specialist Post-Tensioning Engineering “Water Infra
Slide 26: Specialist Building in Action
SPECIALIST BUILDING… IN ACTION For personal use only Elizabeth Quay Melbourne Heart Queens Wharf Capital Square Hospital Brisbane Casino Auckland Harbour Bridge Specialist Facades and Structures Specialist Facades Specialist Facades “Commercial / Mixed Use” “Health” “Tourism & Hospitality” MARKET DY
Slide 27: Our Strategic Direction
For personal use only OUR STRATEGIC DIRECTION 27
Slide 28: Strategic Horizons
STRATEGIC HORIZONS Building the most sought-after specialist For personal use only asset services, mining services and construction business LEADERSHIP GROWTH Zero Harm / ESG industry leader and Step change growth in recurring recognised employer of choice Asset Services Key partner of choice in our
Slide 29: Outlook
OUTLOOK Operating Segment Outlook For personal use only Asset Services delivering step change growth in diverse sectors with blue-chip clients Mining Services operating in high demand, high quality growth commodities Construction positively linked to Government Infrastructure stimulus programs
Slide 30: Investment Proposition
For personal use only INVESTMENT PROPOSITION End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Strong Attractive Dividend growth valuation paying outlook multiples stock 30