Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — Investor Day (May 2023)
121 slides from Sgh's investor day presentation, May 18, 2023
Slide 1: Investor Presentation ASX announcement
18 May 2023 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 For personal use only INVESTOR PRESENTATION Please find attached an investor presentation to be given by Mr Ryan Stokes AO, CEO and Managing Director of Seven Group Holdings, as well as S
Slide 2: Seven Group Holdings Investor Day Presentation
For personal use only Seven Group Holdings Investor Day Presentation May 18th 2023 FY23 Investor Day Presentation 1
Slide 3: Group Overview: Who We Are
Group Overview Who We Are Seven Group Holdings (ASX:SVW) Industrial Services • Sole CAT dealer in WA & NSW/ACT • Leading diversified operating Group • Leading mining market share • Businesses across Industrial Services, Energy • Providing whole-of-life machine management and Media For personal use o
Slide 4: Management Team
For personal use only Group Overview Management Team Ryan Stokes Gitanjali Bhalla James Goth Richard Richards Managing Director & CEO Chief People Officer Chief Operating Officer Chief Financial Officer Jarvas Croome Adrian Howard Murray Vitlich Vik Bansal CEO WesTrac CEO WesTrac NSW/ACT CEO Coates
Slide 5: Purpose, Objective and Values
Group Overview Purpose, Objective and Values Owner’s Mindset Courage • Commit to achieving our long-term • Empower and trust our objectives and delivery of outcomes people to recognise • Invest in businesses where the and pursue For personal use only investment opportunity exceeds the opportunities
Slide 6: SGH Advantage Overview
SGH Advantage Overview Infrastructure & Domestic Gas / LNG Mining Production Construction Activity facilitating energy transition For personal use only Leading market positions Limited fixed price Privileged assets with Actively manage inflation contract risk defendable moats FY23 Investor Day Prese
Slide 7: What Makes SGH Core Plus?
Who We Are What Makes SGH Core Plus? WesTrac – Core Plus Characteristics • Territories with customer activity linked to mining production • Leading: mining market share, product and technology For personal use only • Growing embedded base requiring incremental support • Product support revenue CAGR
Slide 8: Strategic Sector Exposures
SGH Advantage Strategic Sector Exposures Infrastructure and Transitional Mining Production Construction Energy For personal use only • Exposure through WesTrac • Exposure through Coates and Boral • Gas/LNG critical transitional energy • Customer activity linked to mining • Exposure through Beach and
Slide 9: Market Leaders
For personal use only SGH Advantage Market Leaders WesTrac Coates Boral • +8,000 mining fleet installed base • Largest share of Tier-1 customers • Upstream assets (quarries & • +65% mining market share (infrastructure focused) Cement) close to demand centres • #1 market share in 11/18 equipment • Le
Slide 10: Strategic Traits
SGH Advantage Strategic Traits What are Privileged Assets? SGH Underlying EBIT and Annual Growth Rates • Hard to replicate, differentiating assets that provide a 1,100 strategic or commercial advantage, economic moat or 1,000 ↑25% other barrier to entry For personal use only 987 900 • WesTrac: growi
Slide 11: Owner's Mindset Integration
SGH Advantage Owner’s Mindset Integration Owner’s Mindset in action SGH Milestone Transactions & Total Return vs ASX100 • Simplify – business processes and structure 600 Seven Group Holdings Boral 69.6% FY23 • Empower with autonomy and accountability S&P/ASX 100 stake via Guidance For personal use o
Slide 12: Accountable, Scalable Operating Model
For personal use only SGH Advantage Accountable, Scalable Operating Model Group and BU delineation Front line focused • Workforce and decision making is • Business Units have separate Board front-line focused (doers over structures delegators), avoiding top-heavy • No corporate costs to BUs, promoti
Slide 13: Market Conditions and Guidance
Business Outlook Market Conditions and Guidance Market conditions • WesTrac customer activity elevated on ageing fleet, growing bulk commodity production For personal use only • Coates and Boral customer activity strong on delivery of the infrastructure pipeline, demand for green offerings • Growing
Slide 14: People and Culture
For personal use only Investor Day Presentation People and Culture Gitanjali Bhalla FY23 Investor Day Presentation 13
Slide 15: Safety
People and Culture Safety LTIFR1 TRIFR2 Safety focus delivering results March 2022 March 2023 March 2022 March 2023 • Group TRIFR improved by 30% WesTrac WA 0.2 0.3 7.3 6.4 For personal use only • Significant improvements in safety performance at WesTrac NSW 0.3 0.6 5.4 4.1 Coates and Boral Coates 3
Slide 16: People and Culture Strategic Imperatives
People and Culture Strategic Imperatives People and Culture focus areas Performance Optimised Operating Organisational Diversity, Equity & For personal use only Strong Leadership Orientated & Values Model Development Inclusion Aligned Culture • Robust leadership & • Autonomy with • Capability uplift
Slide 17: Labour Management
People and Culture Labour Management Solving for skilled labour shortages & skills of the future Training & For personal use only Sourcing Ways of Working Automation Retention Development • International • Targeted Training for • Workflow redesign to • Leverage automation • Enhance EVP to recruitmen
Slide 18: ESG
For personal use only Investor Day Presentation ESG James Goth FY23 Investor Day Presentation 17
Slide 19: Top Material Issues
ESG Top 10 Issues Top 10 Material Issues for the Group For personal use only FY23 Investor Day Presentation 18
Slide 20: Sustainability Opportunity
ESG Sustainability Opportunity Energy Transition • Over $2 trillion1 investment required in Australian clean energy and infrastructure over the next 10 years to For personal use only achieve net-zero 2050 goals • As the energy transition progresses, gas will become increasingly important to firm up
Slide 21: Supporting Customer Sustainability Goals
ESG Supporting Customer Sustainability Goals WesTrac • Autonomous Hauling Systems increase productivity by up to 30%, enhancing fuel efficiency and lowering emissions For personal use only • Engine/component rebuilds have up to 60% less embedded emissions vs a new build • CAT partnered with global m
Slide 22: Finance
For personal use only Investor Day Presentation Finance Richard Richards FY23 Investor Day Presentation 21
Slide 23: Group Capital Allocation & Portfolio Management
Group Capital Allocation & Portfolio Management SGH’s unique characteristics support delivery of superior returns Long term Ability for SGH to High conviction Transaction For personal use only horizon add value approach execution • Identify mega trends • Opportunistic timing • In-house execution • I
Slide 24: SGH Financing Model
For personal use only Group Finance SGH Financing Model Deleverage Funding Capacity Reinvestment Dividend SGH Board deleverage Framework with key YTD capex $488m Cash flow and franking target and 2.5x market lenders to support future Growth: $137m provides dividend expectation investments Maintenanc
Slide 25: Funding Structure
Group Finance Funding Structure Optimised borrowing structure Seven Group Holdings Limited Convertible Note (2023/25) Exchangeable (2025/27) $46m $250m $46m $250m • Group has 5 points of attachments Group SFA (2024-27) $1,788m $1,610m For personal use only Bridge Facility (Jul 2022) Repaid Apr 2022
Slide 26: Capital Management
Group Finance Capital Management Leverage Facility Maturity (as at 31 Dec 2022) • Leverage reduced to 2.7x in 1H, targeting 2.5x 1,800 within 6 months For personal use only 1,575 1,600 • Deleveraging supported by working capital unwind at WesTrac, and earnings growth 1,400 Funding 1,200 • Investment
Slide 27: Working Capital and Cashflow
Group Finance Working Capital and Cashflow Working capital WesTrac Working Capital ($m) 1400 Machines in Transit • WesTrac working capital elevated through 1HFY23, 1200 Working Capital ex MIT historically correlated with high customer demand 1000 For personal use only 800 • Inventory and machines in
Slide 28: Group Cash Flow, Dividend and TSR
Group Cash Flow, Dividend and TSR Operating Cash Flow Ordinary Dividend Per Share ($/share) TSR vs ASX100 (ex. financials) 700 0.25 For personal use only 28% 600 0.24 24% 0.23 23% 24% 500 0.22 0.21 17% 400 0.20 14% 13% 14% 300 0.19 10% 0.18 8% 8% 7% 200 0.17 100 0.16 0.15 Final Final Final Final Fin
Slide 29: Finance Key Messages
Group Finance Key Messages Track record of execution and delivery • Three-fold increase in market cap increase over 10-years Market Cap $1.4bn market value of media 10 years ago $2.8bn investments • Flexible capital structure enabled the Group to capture (SWM, CMH) For personal use only (30 June 201
Slide 30: Business Unit Presentations - WesTrac
For personal use only Investor Day Presentation Business Unit Presentations - WesTrac Adrian Howard, Jarvas Croome FY23 Investor Day Presentation 29
Slide 31: WesTrac – Business Update & Strategy
For personal use only WesTrac – Business Update & Strategy Jarvas Croome CEO WesTrac Australia Adrian Howard CE WesTrac NSW/ACT 1H FY23 Financial Results Presentation 30
Slide 32: WesTrac Overview
WesTrac Overview Top 3 Global Mining dealer • Caterpillar dealer in WA since 1925 And NSW since 1926. • WesTrac WA 1990 and NSW in 2004. For personal use only • One of the largest geographical areas covered by any dealer. • Over 23,000 active units in WA and 24,500 in NSW. Leading the Industry in Su
Slide 33: WesTrac Operating Strength and Performance
WesTrac Operating Strength and Performance WesTrac continues to outperform through the cycles WesTrac Revenue Split ($m) 2,500 Capital sales Revenue up 20% to $2,296m (vs pcp) 2,000 Product support For personal use only • Growth across new machines and product support sales. 1,500 • Combination of v
Slide 34: WesTrac Parts Volume Growth
WesTrac Parts Volume Growth Parts volumes continue to climb WesTrac Parts Volumes Sold (#m) 25 • Miners continue to experience strong production volumes For personal use only H2 H1 and material movements in support of their activities. 20 • As a result, parts volumes continue to grow. 10.9 11.0 10.9
Slide 35: WesTrac Operating Leverage
WesTrac Operating Leverage WesTrac EBIT History and Growth Rate Delivering improved operating leverage through the cycle 450 400 350 • EBIT Margin of 11.1% up 14bp. 300 For personal use only 250 • Increasing operational leverage. 200 150 • Consistent growth in EBIT with strong CAGR. 100 50 • Opportu
Slide 36: Caterpillar Partnership
WesTrac Caterpillar Partnership Caterpillar investments in technology and sustainability lead the way • Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas For personal use only engines, industrial gas turbines and diesel electric
Slide 37: Dealer Model
WesTrac Dealer Model Caterpillar and WesTrac are long term partners For personal use only 50 Double Parts and STRONG Improve Parts & Services market share Years ALIGNMENT Services to $28B Capture increased by 2026 Average tenure of Cat mining demand dealers worldwide Caterpillar Competitive Advantag
Slide 38: Key Commodities
WesTrac Key Commodities WesTrac enjoys ongoing strong material movements to support production Iron Ore Production (Mt) WA 1,200.0 • Iron ore production remains robust with long life mines that enjoy low C1 production costs with both greenfield and brownfield expansion 1,000.0 For personal use only
Slide 39: Emerging Commodities
WesTrac Emerging Commodities WesTrac to benefit from growth in future facing metals Lithium Production (kt) Australia 700.0 • Australia is the world's largest lithium exporter with over 46% of global 600.0 production in 2021 with majority located in WA using open cut mines. 500.0 For personal use on
Slide 40: Strong Product Support – Increasing Opportunities
WesTrac Strong Product Support – Increasing Opportunities Significant equipment population across mining segment underpins product support opportunities Large ageing fleet with high utilisation Mining Equipment Lifecycle • Significant base of equipment across multiple asset types – Average Age Ultra
Slide 41: New Machines Outlook
WesTrac New Machines Outlook Opportunities remain strong • Solid pipeline of machine opportunity together with existing strong order book. • Iron ore and coal production volumes remain solid. For personal use only • Emerging commodities will require additional fleet. • Opportunities to upgrade to la
Slide 42: Aftermarket Outlook
WesTrac Aftermarket Outlook Continued parts and service growth • Labour constraints and drive for production has deferred some customer’s For personal use only maintenance activities. • Strong production volumes and ageing fleet continues to drive parts and service requirements. • Expanded parts off
Slide 43: Parts and Logistics
WesTrac Parts and Logistics Outstanding support ensures customers achieved lowest cost of ownership • WesTrac holds over 125,000 unique parts with high initial facing fill to our customers. For personal use only • Extensive stock positioned close to customers key activities. • Unparalleled global su
Slide 44: Parts Automation
WesTrac Parts Automation • Our branch network holds over 6 million individual parts. • WA has a fully automatic good to person system which is complemented by a range of high density Kardex storage units and computerised forklifts and material movement machines. For personal use only • In WA nearly
Slide 45: Fleet Profile
WesTrac Fleet Profile Global mining fleet age 11.7 years with Caterpillar at 12.6 years • WA average mining age was ~8.6 years in mid 2016 and now sitting ~11 years. • NSW average mining age was just over 9 years in mid 2016 and now sitting ~12 years. For personal use only • Average age supports the
Slide 46: Our People
WesTrac Our People Known in the industry as best in the business • Strong team of over 4,000, recognised as industry leaders with deep operational, maintenance, rebuild and technology expertise. NSW WA For personal use only ACT • Skills shortages driving additional demand for WesTrac. • Industry def
Slide 47: Training
WesTrac Training Industry recognition that we provide top quality training • Our training ranges from our well-regarded Apprentice Program through to Business. and Leadership Training and affiliated MBA programs. For personal use only • Leaders in technology and automation. • FY23 investment exceeds
Slide 48: Working Capital and Inventory
WesTrac Working Capital and Inventory We are investing in working capital to enable and support our customers New Machines • Ex factory lead times remain extended with some models still in short supply. For personal use only • Additional equipment demand is being driven by commodity prices and drive
Slide 49: Electrification
WesTrac Electrification Electrification a new opportunity for growth • Major miners committed to a decarbonisation path. • New or long mine life assets will be early adopters. Electrified Mine of the Future For personal use only • Diesel consumption typically1/3 split between power, rail and mobile
Slide 50: The Road to Autonomy
For personal use only WesTrac The Road to Autonomy • Line of sight: User remains onsite and • Non-Line of sight: User can be onsite with an in direct visual contact of the jobsite obscured view of the jobsite or many miles away Automation at the Semi-Autonomous Operations at Totally Autonomous Machi
Slide 51: Automation Enables Electrification
For personal use only WesTrac Automation Enables Electrification >25 Caterpillar 24/7 operations has invested on three continents: in autonomous North and South development YEARS 14 25 0 ~30% America, CUSTOMERS SITES INJURIES PRODUCTIVITY Australia IMPROVEMENT 5B+ Commodity applications: TONNES MOVE
Slide 52: Battery Trial
WesTrac Battery Trial WA Battery trucks arrive for trials in 2024 • 2028 Limited Battery Electric Haul Trucks commercially available. • Dynamic charging key to 24 / 7 productivity and battery • Construction and Ancillary timelines still to be determined. thermal management. For personal use only • B
Slide 53: Machine Service and Rebuild
WesTrac Machine Service and Rebuild Rebuild provides like new option • Customers want to extend machine life. • WesTrac provides the parts and services For personal use only to maintain equipment at high levels of availability and reliability. • As machines age we are uniquely positioned to provide
Slide 54: PEX Concept
WesTrac PEX Concept Unique customer solution that drives productivity Benefits for customers • Minimises equipment downtime, reduces on-site labour and For personal use only allows access to differential labour pools. • Removes need to hold large on-site inventory - capital efficiency. OLD ENGINE NE
Slide 55: PEX Parts
WesTrac PEX Parts Supporting our customers: • 279 engines For personal use only • 387 transmissions • 973 final drives • 2383 hydraulics • 557 other powertrain In addition to WesTrac PEX components, Caterpillar provides an extensive range of Reman components allowing support for all major mining and
Slide 56: WesTrac Key Messages
WesTrac Key Messages Well placed for industry growth • Ageing equipment population will support continued fleet replacement. For personal use only • Commodity volumes remain strong. • Coal remains incredibly resilient. • Increasing interest and growth in gold, lithium, nickel and other minerals. • S
Slide 57: Business Unit Presentations - Coates
For personal use only Investor Day Presentation Business Unit Presentations - Coates Murray Vitlich FY23 Investor Day Presentation 56
Slide 58: Coates – Business Update
Coates – Business Update Murray Vitlich, CEO, Coates For personal use only FY23 Investor Day Presentation 57
Slide 59: Coates Strategy Highlights
Coates Strategy Highlights Our vision is to be Strong FY23 performance and refreshed FY24 strategy focused on growth and ongoing margin improvement the market leader in safe, • Leverage strong FY23 performance and margin improvement in FY24. smart and sustainable For personal use only equipment solu
Slide 60: Coates At a Glance
Coates At a Glance $1.83bn $200m+ 3x 1m+ 23 For personal use only in assets annual capital larger than pieces of equipment (1H FY23) investment in FY22 nearest competitor equipment categories 131 7.5k 150 24/7 137 years equipment equipment branches field nationwide support of operation types models
Slide 61: National Footprint
Coates National Footprint Coates is embedded For personal use only across Australia Coates national branch footprint FY23 Investor Day Presentation 60
Slide 62: Equipped for anything
Coates Equipped for anything In 2021 Coates rebranded from Coates Hire to Coates. This aligns to our growth strategy and positioning Coates as 'Equipped for anything' delivering end-to-end turnkey equipment solutions For personal use only n FY23 Investor Day Presentation 61
Slide 63: Video: Coates Equipped for Anything
For personal use only Coates Equipped for anything Video: Coates Equipped for Anything FY23 Investor Day Presentation 62
Slide 64: Coates Market Trends
Coates Market Trends Construction: Value of Work Done R12M ($M) 300,000 10.0% Total construction activity expected to expand over the next five years 8.0% For personal use only 250,000 6.0% • The overall short to medium term supply 200,000 4.0% side constraints in the economy are expected to extend
Slide 65: Coates Market Trends: Public Infrastructure Pipeline
Coates Market Trends Strong public infrastructure pipeline, with expected project slippage For personal use only • Five year demand for major public infrastructure has grown more than $15 billion in the last year. • The transport sector continues to represent the bulk (63%) of major public infrastru
Slide 66: Renewables Pipeline
Coates Renewables Pipeline • The Australian energy system is rapidly transitioning to renewable energy sources, creating a $100Bn solar and For personal use only wind investment associated distribution and transmission opportunity over the next decade. • Coates is well positioned to benefit from thi
Slide 67: Coates Market Share
Coates Market Share Coates leading market share at 24.4% that rivals global best in class For personal use only Australia North America 20.1% 24.4% Coates United Rentals Kennards Ashtread Group (Sunbelt Rentals) Onsite Herc Rentals 53.0% Ausco WillScot Corp 55.7% 15.5% 11.4% All Other All Other 4.5%
Slide 68: Rental Penetration – shift to 'asset light'
Coates Rental Penetration – shift to ‘asset light’ Shift to asset-light construction business models driven by: • Increased complexity of construction projects has driven demand for For personal use only specialized assets that are expensive to purchase and maintain • Over the past 5 years Coates’ a
Slide 69: Coates FY23 Highlights
Coates FY23 Highlights Growth Competitive Operating Model • YOY revenue growth (>16%) across all geographies. • Project Equipped with Hub and Spoke structures. • Pricing conformance (97%) • Equipment Maintenance Controller to improve R&M workflow. Growth ES (>15%), IS (>10%). For personal use only •
Slide 70: Coates Financial Performance FY19-FY23
Coates Financial Performance FY19-FY23 Business Performance - Revenue, EBITDA, EBIT, ROCE • Coates is forecast to exceed its target 1,200.0 30.0% financial KPIs in FY23. For personal use only 1,015.7 • Increasing market demand and strong 1,000.0 974.7 25.0% 956.6 945.5 25.9% pricing performance is d
Slide 71: Coates Margin Improvement
Coates Margin Improvement Historical Price Trends FY16-FY23 125% Over 20% Margin improvement in 3 years through 120% • Price discipline. For personal use only 115% • Revenue leakage reduction. • Operating leverage, including Project Equipped. 110% • Increased hire duration. 105% 100% Jul-16 Jul-17 J
Slide 72: Coates Team24 Strategy
Coates Team24 Strategy Our vision is to be Growth the market leader in safe, • Growing Coates revenues by 2025 smart and sustainable • Market penetration: Top-tier, Mid-tier, trades, Bunnings Partnership • Acceleration of Solutions: ES, IS, Power and HVAC, Training and Adjacencies For personal use o
Slide 73: Project Equipped
Coates Project Equipped Project Equipped leveraging benefits of network scale • Standardisation of systems, processes, customer experience (e.g. hires, stand- downs and delinquent hires; and Repairs and Maintenance). For personal use only • Deliver the most competitive range of products at the lowes
Slide 74: Property Strategy
Coates Property Strategy We are focused on embedding a fit-for-purpose network • Standard property classification across network with common structures. For personal use only • Property templates based on standard fleet requirements. • Investment based on economic value criteria. • Delivery targeted
Slide 75: Coates Fleet
Coates Fleet Growing fleet and reducing age Australian Fleet Trends - Age and Scale Age in months $m Our fleet strategy focuses on continual improvement For personal use only • 105 in the quality, availability, and utilisation of the fleet 1,800 across an optimised footprint of branch assets. 95 1,6
Slide 76: Fleet Performance
Coates Fleet Performance Maximising Coates operating leverage For personal use only • We have challenged and moved beyond historical perceived TU operating limit of 60% with the strategy targeting and achieving >61.7%. • Our strategic initiatives (e.g. Project Equipped, property, R&M, Category manag
Slide 77: Greener Choices
Coates Greener Choices Coates Greener Choices offers customers tangible opportunities to reduce emissions, improve efficiencies and commit to best practice environmental sustainability For personal use only standards. • Customers increasingly look to us for solutions that support their sustainabilit
Slide 78: Our Solutions
Coates Our Solutions FY21 Coates launched Team25 strategy - acceleration of solutions: Accelerate and scale Engineering Solutions. For personal use only Scale and deeper penetration of Industrial Solutions. Develop and grow Power & HVAC specialist services. RTO (Training) is also seen as a
Slide 79: Engineering Solutions
Coates Engineering Solutions Specialists in above and below ground temporary works • Highly experienced national team – 40+ Engineers (Civil, Structural, Chemical, Geotechnical, including Chartered), Product Specialists, For personal use only Project Managers and Installation Managers. • Industry-le
Slide 80: Industrial Solutions
Coates Industrial Solutions Experts in optimising shutdowns, maintenance and asset management Highly experienced national team – Shutdown For personal use only • Managers, Product Specialists, Project Managers, Tool Store Controllers and Mechanics. • Deep industry expertise – Mining, Metals, Oil & G
Slide 81: Video: Coates Industrial Solutions
For personal use only Coates Industrial Solutions Video: Coates Industrial Solutions FY23 Investor Day Presentation 80
Slide 82: Automated and unmanned toolstores
Coates Industrial Solutions Automated and unmanned toolstores For personal use only FY23 Investor Day Presentation 81
Slide 83: Digital Enhancements and Roadmap
Coates Digital Enhancements and Roadmap Digital enablement is key to providing a competitive edge. Further focus, resourcing, and investment in the digital For personal use only program will support the business to deliver its strategic program. • CRM Cloud Migration • IoT / Telematics SiteIQ • Towa
Slide 84: Coates Summary
Coates Summary • FY23 strong performance and growth. • FY24 Team25 Strategy focused on growth and ongoing For personal use only margin improvement. • Strong market outlook across our markets. • Coates continues to focus on Growth - market penetration; the acceleration of our solutions offerings; for
Slide 85: Business Unit Presentations - Boral
For personal use only Investor Day Presentation Business Unit Presentations - Boral Vik Bansal FY23 Investor Day Presentation 84
Slide 86: Boral – Business Update
For personal use only Boral – Business Update SGH FY23 Investor Day Presentation 85
Slide 87: Our Business – scale, scope, footprint
Our Business – scale, scope, footprint Australia’s largest integrated construction materials company Property: 4,723 Maximising value creation from our surplus property assets For personal use only 361 employees2 operating sites1 NT QLD ~30 WA 1 1 59 19 15 1 1 ~4,300 surplus property assets 11 8 1 c
Slide 88: Our Business – integrated network
Our Business – integrated network Valuable upstream and downstream operations with market leadership positions For personal use only Cement Quarries Bitumen Manufacture and import clinker, Supply about 30 million tonnes of materials JV supplies about 40% of Asphalt’s grind clinker into cement, and s
Slide 89: Performance Overview – safety
Performance Overview - safety Safety performance shows improvement, significant work remains to deliver best in class performance Safety performance Safety focus Total recordable injury frequency rate (TRIFR)* For personal use only 11.76 Zero Harm is our goal. TRIFR moving annual total (MAT) of 7.
Slide 90: Performance Overview – financial trends
Performance Overview – financial trends All key financial metric trends have improved half-on-half for FY23 Net revenue ($m) EBITDA1 ($m) EBIT and EBIT margin ($m and %) 8.5% CAGR 7% For personal use only 1H FY21 – 1H FY23 7.5% 7.9% 5.7% EBIT 6.5%margin 5.5% 5.5% 4.5% 1,681 4.4% 3.5% 1,479 1,445 1,5
Slide 91: Performance Overview – volume, price & costs
Performance Overview – volume, price & costs Pricing has gained some traction, volumes are growing but inflation remains a challenge Key direct costs increases Volume, price & costs (1H FY23 vs. 1H FY22) For personal use only Growth in volume2, up by more than 4% compared to 1H FY22 Energy3 up 54%
Slide 92: Demand Outlook – concrete by segment
Demand Outlook – concrete by segment Demand forecast to remain steady levels in line with long-run concrete volumes For personal use only 1 Macromonitor, Construction Materials forecast, March 2023 SGH FY23 Investor Day Presentation 91 2. CAGR = Compound annual growth rate
Slide 93: Demand Outlook - long-run concrete volumes
Demand Outlook - long-run concrete volumes The long-run concrete demand annual growth rate is over 2% for key east coast metropolitan regions Long Run East Coast Metro Region Concrete Volume Growth, 1960 to 2023e (million cubic metres*) For personal use only SEQ SYDNEY MELBOURNE SGH FY23 Investor Da
Slide 94: PEMAF Pillars
PEMAF Pillars We are establishing business cadence with focus and discipline on People, Environment, Markets, Assets and Financials to deliver the outcomes For personal use only People Environment Simplification and Standardisation Markets Assets Financial, commercial and operational rigour SGH FY23
Slide 95: People - new operating model
People - new operating model We are implementing a new decentralised but standardised, aligned and accountable operating model, where we create, add and enable value For personal use only SGH FY23 Investor Day Presentation 94
Slide 96: Environment - decarbonisation
Environment - decarbonisation We have identified the key initiatives to deliver our 2025 emissions target Our emissions… Our 2025 target… Our key initiatives… FY2019 baseline CO2-e emissions Scope 1 and 2 targets for 2025 Key initiatives to deliver our 2025 target: For personal use only (emissions m
Slide 97: Markets – improve the customer experience
Markets – improve the customer experience We are working to create a simple, streamlined and standard process for the customer SEARCH & EVALUATE ORDER RECEIVE PAY For personal use only • Easier contact options • Simplify online ordering • Ability to track my truck • Easy access to account status • F
Slide 98: Markets – building commercial rigour
Markets – building commercial rigour Standardise and simplify pricing with improved pricing disciplines will optimise outcomes Commercial focus Pricing discipline For personal use only • Building the commercial discipline and rigor across the business: o volume and price focus across all regions and
Slide 99: Markets – optimise our segmentation by region
Markets – optimise our segmentation by region Tracking our customer segmentation ‘shape’ by region and aligning our sales effort We have confidence in the long-run demand We are choosing the ‘Shape’ by region to We are aligning the ‘Shape’ targets with to align business model and capabilities optimi
Slide 100: Assets – building upstream prized infrastructure
Assets – building upstream prized infrastructure Our strategic priority is to invest in our prized upstream assets Delivered WIP For personal use only Cement Quarries Geelong cement facility Vic supplying cement and slag products to Vic, SA & Tas Acquired Dunmore hard rock reserves NSW Tarong fly as
Slide 101: Assets – building 'close to customer' downstream footprint
Assets – building ‘close to customer’ downstream footprint Targeted investments in our downstream networks as important channels to market are underway For personal use only Cement Quarries Bitumen Recycling Downstream Property Concrete and Placing Asphalt Delivered WIP Acquired Badgerys Creek land
Slide 102: Assets – leveraging technology solutions in mobile assets
Assets – leveraging technology solutions in mobile assets Our technology investment and process improvements are delivering the benefits we anticipated Objectives Opportunity For personal use only • Modernisation of customer order fulfillment • 10,000 deliveries per day = 1 every 8 seconds • Impleme
Slide 103: Assets – benefits from Auto Allocations
For personal use only Assets – benefits from Auto Allocations SGH FY23 Investor Day Presentation 102 Video: Boral Auto Allocations
Slide 104: Assets – building our Recycling position
Assets – building our Recycling position Boral’s participation in recycling is currently focussed in C&D processing with the aim to replace quarry material, we will assess options to move into other parts of the value chain to increase our value capture Current Recycling positions Recycling opportun
Slide 105: Assets – optimising our property portfolio
Assets – optimising our property portfolio Applying a fixed asset lifecycle approach to property and the large portfolio of surplus property Construction Materials segment Property segment For personal use only Includes earnings from optimisation initiatives on land that is Earnings from repurposing
Slide 106: Closing summary and progress
Closing summary and progress Our priorities remain unchanged, some positive progress evident Progress People 0% 100% • Relentless focus on safety with increased employee engagement and strong leadership • Embedding the new operating model to leverage scale, increase agility and efficiency • Improvin
Slide 107: Energy & Media
For personal use only Investor Day Presentation Energy & Media Ryan Stokes FY23 Investor Day Presentation 106
Slide 108: Energy – Business Update
For personal use only Energy – Business Update FY23 Investor Day Presentation 107
Slide 109: SGH Energy Crux Overview & Update
SGH Energy Crux Overview & Update Crux LNG backfill project LNG Demand Forecast by Region vs Existing Supply 800 • Significant proven reserves Leverages existing LNG infrastructure For personal use only • 700 Crux start-up • Prelude FLNG is proving nameplate capacity and 600 reliable performance 500
Slide 110: Beach Energy (30%) Investment Overview
Beach Energy (30%) Investment Overview Strategic focus on domestic gas and LNG exports Forecast Gas Supply from 2P Reserves vs Demand East Coast Australia • Demand supported by tailwinds from energy transition 2200 Strong balance sheet and cash flow For personal use only 2000 Sub-15% gearing and sig
Slide 111: Beach Energy Key Projects
Beach Energy Key Projects Otway Basin update Forecast Gas Demand by Sector vs Supply Western Australia • FY23 completion of Beach’s first major offshore drilling 1400 campaign (seven wells) on time and on budget Targeting connection of Thylacine wells mid-CY23, Enterprise For personal use only • 120
Slide 112: Media – Business Update
For personal use only Media – Business Update FY23 Investor Day Presentation 111
Slide 113: Seven West Media Successfully Repositioned
Seven West Media Successfully Repositioned Market leading reach • Consolidated regional affiliate to create leading national network, SWM now reaches ~20m (91%) of For personal use only Australians over 14yo every month • Australia’s leading BVOD platform, with 41% average minutes share since CY20,
Slide 114: Seven West Media Operating Strength and Outlook
Seven West Media Operating Strength and Outlook Operating Strength • Leading Total TV revenue share of 39% in 1H FY23, targeting 40%+ in FY24 39%, Target +40% $101m 29%2 For personal use only • 7+ (digital and streaming) minutes CAGR of +36% Total TV Share Digital Revenue since 2019 • 7+ revenue CAG
Slide 115: Closing Messages
For personal use only Investor Day Presentation Closing Messages Ryan Stokes FY23 Investor Day Presentation 114
Slide 116: Autonomous, Accountable Operating Model
Closing Key Messages Autonomous, Accountable Operating Model Autonomous, accountable operating model Group and BU delineation Front line focused • Group and BU delineation with separate board • Business Units have separate Board structures • Workforce and decision making is front-line focused (doers
Slide 117: Closing Key Messages: WesTrac, Coates, Boral
Closing Key Messages WesTrac • Ageing equipment population and bulk commodity export growth to support service demand over the medium-term For personal use only • Electrification represents significant long-term opportunity for fleet replacement and sophisticated aftermarket support Coates • Coates
Slide 118: Closing Key Messages and Outlook
Closing Key Messages and Outlook Seven Group Holdings • Delivering Core Plus returns, 13% long-run EBIT CAGR and threefold market cap expansion over the For personal use only past decade • Entered the ASX100 in April • Financial strength, with investment grade funding costs, 2.7x leverage - targetin
Slide 119: Q&A
For personal use only Investor Day Presentation Q&A Ryan Stokes FY23 Investor Day Presentation 118
Slide 120: Appendix: Businesses and Markets
Appendix Businesses and Markets Industrials Industrials Industrials Energy Media For personal use only 100% 100% 73% Beach 30% SGHE 100% 40% WesTrac is one of the largest Coates is Australia’s largest Boral is Australia’s largest Beach Energy is a leading mid- Seven West Media is a leading CAT® deal
Slide 121: Disclaimer
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 review b