Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — H1 FY2021 Earnings Presentation
30 slides from Sgh's earnings presentation, Feb 18, 2021
Slide 1: ASX announcement: 2021 Half Year Results presentation
Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 18 February 2021 2021 HALF YEAR RESULTS – PRESENTATION OF HALF YEAR RESULTS Seven Group Holdings Limited (ASX: SVW) attaches the results presentation slides for the half year ended 31 December 2020.
Slide 2: Strength, Community, Resilience
STRENGTH, COMMUNITY, RESILIENCE INVESTOR PRESENTATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2020 18 FEBRUARY 2021
Slide 3: Group Overview
GROUP OVERVIEW Our purpose is to recognise and serve exceptional businesses Our objective is to maximise return to stakeholders through long term sustainable value creation
Slide 4: People, Safety and Culture
FY21 1H Results Presentation Seven Group Holdings 3 18 February 2021 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Keeping our 5,800+ people safe is our top priority LTIFR TRIFR • Strong safety culture across all operating businesses Dec 2020 Dec 2019 Dec 2020 Dec 2019 – Significant improvement in safet
Slide 5: ESG & Emissions Commitment
FY21 1H Results Presentation 18 February 2021 GROUP OVERVIEW ESG & EMISSIONS COMMITMENT Formal commitments on climate change • Commitment that SGH and our current operating businesses, Coates and WesTrac, will achieve net zero greenhouse gas emissions by 2040 • Support Paris Agreement goal to limit
Slide 6: Businesses and Markets
FY21 1H Results Presentation Seven Group Holdings 5 18 February 2021 GROUP OVERVIEW BUSINESSES AND MARKETS Industrials Industrials Industrials Energy Media WesTrac (100% owned) is Coates Hire (100% owned) is the Boral (20% owned) is an Beach Energy (28.5% Seven West Media (40% one of the largest CAT
Slide 7: Highlights
FY21 1H Results Presentation Seven Group Holdings 6 18 February 2021 GROUP OVERVIEW HIGHLIGHTS Resilient performance by operating businesses • Trading revenue of $2.4bn up 4% with strong performance in WesTrac offsetting some uncertainty in some end-markets in Coates • Industrial segment EBIT of $33
Slide 8: Key Financials
FY21 1H Results Presentation Seven Group Holdings 7 18 February 2021 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) 1H FY21 1H FY20 % Change Trading revenue 2,357.4 2,262.8 4.2% Earnings before interest and tax1 396.1 417.6 -5.1% Underlying net profit after tax attributable to shareholders1 2
Slide 9: Financials
GROUP FINANCIALS
Slide 10: Profit and Loss
FY21 1H Results Presentation Seven Group Holdings 9 18 February 2021 FINANCIALS PROFIT AND LOSS $m 1H FY21 1H FY20 Change % Revenue 2,357.4 2,262.8 4.2% Other income 11.5 35.9 -68.0% Share of results from equity accounted investees 87.2 112.4 -22.4% Trading revenue and other income 2,456.1 2,411.1 1
Slide 11: Significant Items
FY21 1H Results Presentation Seven Group Holdings 10 18 February 2021 FINANCIALS SIGNIFICANT ITEMS $m 1H FY21 1H FY20 Share of results from equity accounted investees attributable to significant items – SWM 11.9 (48.3) Impairment reversal / (impairment) – SWM equity 104.0 (64.4) Impairment of produc
Slide 12: Earnings Summary
FY21 1H Results Presentation Seven Group Holdings 11 18 February 2021 FINANCIALS EARNINGS SUMMARY Total Allight Invest- $m WesTrac Coates Boral Energy Media Corporate Group Sykes ments Trading revenue 2,357.4 1,847.4 468.7 - 37.7 1.2 - 2.4 - Statutory EBIT 511.5 211.4 105.3 14.9 (1.1) 35.5 154.0 2.7
Slide 13: Cash Flow
FY21 1H Results Presentation Seven Group Holdings 12 18 February 2021 FINANCIALS CASH FLOW $m 1H FY21 1H FY20 Underlying EBIT 396.1 417.6 Add: depreciation and amortisation 130.4 130.0 Underlying EBITDA 526.5 547.6 Operating cash flow 228.9 147.8 Add: net interest and other costs of finance paid 64.
Slide 14: Balance Sheet
FY20 1H Results Presentation Seven Group Holdings 13 19 February 2020 FINANCIALS BALANCE SHEET As at As at • Receivables reduction of $74m driven by $m Change % customer collections for machines 31 Dec 20 30 Jun 20 Trade and other receivables 701.2 775.4 -10% delivered in late FY20 • Deferred income
Slide 15: Liquidity Management
FY21 1H Results Presentation Seven Group Holdings 14 18 February 2021 FINANCIALS LIQUIDITY MANAGEMENT Funding base extended and diversified • US$300m private placement completed in July across 7, 10, 12 year tranches, raising A$461m equivalent • Low-cost stand-by facilities in place to give addition
Slide 16: Capital Management
FY21 1H Results Presentation Seven Group Holdings 15 18 February 2021 FINANCIALS CAPITAL MANAGEMENT Disciplined approach to investment management • Deployment of capital through market dislocation to generate enhanced return for SGH shareholders – $390m invested in Boral during the half and $854m to
Slide 17: Business Review
BUSINESS REVIEW
Slide 18: WesTrac Highlights
FY21 1H Results Presentation Seven Group Holdings 17 18 February 2021 INDUSTRIAL SERVICES WESTRAC HIGHLIGHTS Capital sales growth driven by major projects • Commissioning of major fleet deliveries for BHP (South Flank) and Rio Tinto (Koodaideri) • Project pipeline includes FMG (Eliwana and Iron Brid
Slide 19: Mining Machine Opportunity
FY21 1H Results Presentation Seven Group Holdings 18 18 February 2021 INDUSTRIAL SERVICES MINING MACHINE OPPORTUNITY >180t active Cat mining truck population (# units) High utilisation across an ageing fleet delivering opportunities • Increase in average fleet age creating opportunities: – End of li
Slide 20: WesTrac Financials
FY21 1H Results Presentation Seven Group Holdings 19 18 February 2021 INDUSTRIAL SERVICES WESTRAC FINANCIALS Ongoing momentum delivering revenue and margin growth • Revenue up 8% on pcp driven by project deliveries with product sales up $88m or 17% and product support up $48m or 4% • New and used co
Slide 21: Coates
FY21 1H Results Presentation Seven Group Holdings 20 18 February 2021 INDUSTRIAL SERVICES COATES Australian Building Construction Work Strong focus on costs and dynamic response to conditions • Experiencing some impact on customer activity in certain geographic markets and segments • Social distanci
Slide 22: Coates Fleet Overview
FY21 1H Results Presentation Seven Group Holdings 21 18 February 2021 INDUSTRIAL SERVICES COATES FLEET OVERVIEW Driving fleet utilisation and return on assets • Fleet age, composition and location is actively managed to optimise the rate of return and to capture opportunities in targeted growth segm
Slide 23: Coates Financials
FY21 1H Results Presentation Seven Group Holdings 22 18 February 2021 INDUSTRIAL SERVICES COATES FINANCIALS EBIT growth achieved during the half • 1H FY21 EBIT of $105m was up 6% against the immediately preceding half (2H FY20: $99.5m) showing a positive trend • 1H FY21 EBIT up 1.1% against pcp (1H
Slide 24: Boral
FY21 1H Results Presentation Seven Group Holdings 23 18 February 2021 INDUSTRIAL SERVICES BORAL Boral investment and portfolio • Focused on supporting Boral to rationalise its portfolio and improve operating performance to restore earnings and value • Strong five-year infrastructure investment growt
Slide 25: Beach Energy
FY21 1H Results Presentation Seven Group Holdings 24 18 February 2021 ENERGY BEACH ENERGY Key milestones towards delivering 37MMboe production in FY25 • FY25 growth ambition supported by Waitsia and Otway progress • Waitsia Stage 1A complete and FID taken with Mitsui on 250 TJ/day Stage 2 developmen
Slide 26: SGH Energy
FY21 1H Results Presentation Seven Group Holdings 25 18 February 2021 ENERGY SGH ENERGY Crux development update $m 1H FY21 1H FY20 • Crux is an attractive asset, uniquely positioned as a backfill opportunity utilising existing infrastructure Sale of oil, gas and condensate 1.2 2.1 • Anticipated glob
Slide 27: Seven West Media
FY21 1H Results Presentation Seven Group Holdings 26 18 February 2021 MEDIA SEVEN WEST MEDIA Ad spend recovering in 2Q21 $m 1H FY21 1H FY20 • TV ad market improving with Oct-Dec quarter returning to growth Share of associate NPAT – SWM 34.9 29.0 – Q1: total ad market -20.2%, Metro FTA -14.3% – Q2: t
Slide 28: Group Outlook FY21
FY21 1H Results Presentation Seven Group Holdings 27 18 February 2021 GROUP OUTLOOK FY21 Business Outlook Industrials expecting • WesTrac outperforming in 1H FY21 with strong results in WA, offsetting flat performance in NSW, on-track to deliver improvement in FY21 high single digit EBIT growth on F
Slide 29: Disclaimer
FY21 1H Results Presentation Seven Group Holdings 28 18 February 2021 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 informat
Slide 30: SGH | Industrial Services, Media, Energy and Investments
SGH | Industrial Services, Media, Energy and Investments
Seven Group Holdings — H1 FY2021 Earnings Presentation on 6ix