Srg Global Limited · ASX:SRG
Srg Global — H1 FY2024 Earnings Presentation
30 slides from Srg Global's earnings presentation, Feb 20, 2024
Slide 1: Results Presentation
‘lnl LFN/24! RESULTS PRESENTATION
Slide 2: We are a diversified industrial services company
We are a diversified We bring an engineering The most sought-after industrial services mindset to deliver diversified industrial company critical services for services business major industry 2
Slide 3: Profile Services Company
PROFILE SERVICES COMPANY 3,500 20+ OPERATING SEGMENTS Asset Maintenance People Industries Mining Services Engineering & Construction 100+ 5 Sites Countries OWNERSHIP STRUCTURE 11% Management / Board $1b+ 375 53% Institutional Revenue Market Cap ($m) 3
Slide 4: Executive Summary
EXECUTIVE Record Financial Robust Financial Result Platform EBITDA of $45.1m, up 33% on 1H FY23 Cash conversion of 133% (now net cash position) EBIT(A) of $28.4m, up 36% on 1H FY23 Interim fully franked dividend of 2.0 cps Winning and Upgraded Growth Executing Outlook Work in Hand of $1.9b, up 27% o
Slide 5: SRG Global delivers above market financial performance
SRG Global delivers above market financial performance 1H FY23 1H FY24 CHANGE Revenue $380.0m $510.7m ▲ 34% Continuing to convert opportunity EBITDA $34.0m $45.1m ▲ 33% pipeline with blue chip clients EBIT(A) $20.9m $28.4m ▲ 36% Transitioned to net cash of $6.4m from NPAT(A) $13.2m $17.7m ▲ 34% net
Slide 6: Most sought-after diversified industrial services business
LING Ws MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL SERVICES BUSINESS LEADERSHIP HORIZON v Zero Harm / ESG industry leader and recognised employer / partner of choice wv Domestic / International growth in Engineered Products across all SRG operating segments wv Selective strategic acquisitions to compl
Slide 7: Clear evidence of continuing to execute the SRG Global Strategy
Clear evidence of continuing to execute the SRG Global Strategy 1H FY21 1H FY22 1H FY23 1H FY24 Revenue $283.0m $297.0m $380.0m $510.7m Business successfully transitioned to EBITDA $20.5m $27.0m $34.0m $45.1m annuity / recurring earnings EBIT(A) $9.5m $15.9m $20.9m $28.4m Track record of winning and
Slide 8: Strategic Transformation
STRATEGIC TRANSFORMATION FY24 EBITDA Guidance Upgraded To Diversified Industrial Services Business $95m - $100m Annuity / Recurring Earnings Profile Exposure to Diverse Sectors and Geographies Opportunity Pipeline of $6.5b Quality Earnings Profile Robust commercial framework with blue-chip client ba
Slide 9: Underpinned by values
B/O)ala!|e 3 > Live for the challenge » Smarter together > Never give up > Have each other’s backs
Slide 10: Environmental Social Governance
Environmental • Sustain Life Software Platform to track emissions • Sustainability initiatives such as green concrete, local tree planting and solar powered site facilities Social • Bugarrba Aboriginal Joint Venture well established • Social partnerships supporting aligned causes such as Clontarf, M
Slide 11: Financial Review
AINANGCIAE REVIEW
Slide 12: Revenue up 34% EBITDA up 33% EBIT(A) up 36%
ASSET MINING ENGINEERING & TOTAL CORPORATE MAINTENANCE SERVICES CONSTRUCTION Revenue ($m) 510.7 233.3 73.4 203.9 - EBITDA ($m) 45.1 26.2 15.4 14.8 (11.3) EBITDA % 8.8% 11.2% 20.9% 7.2% (2.2%) EBIT(A) ($m) 28.4 18.1 12.1 10.2 (12.0) EBIT(A) % 5.6% 7.7% 16.5% 5.0% (2.4%) Asset Maintenance Mining Servi
Slide 13: EBITDA to Cash Conversion of 133%
Normal sustaining capital spend and growth capital investment for term contracts secured Lease payments which are Continued strong focus on working capital management delivering included within depreciation operating cashflow before interest and tax of $59.7m Increased dividend return to shareholder
Slide 14: Balance Sheet ($m)
BALANCE SHEET ($m) Available liquidity of $184.2m, comprising of cash on hand of $68.2m and 1H FY24 available undrawn working capital and equipment finance facilities of $116.0m Cash and cash equivalents 68.2 Trade, other receivables & contract assets 200.8 Net cash of $6.4m from a net debt position
Slide 15: Operating Segments
OPERATING SEGMENTS 15
Slide 16: Our Geographic Footprint
OUR GEOGRAPHIC FOOTPRINT North West Civil Infrastructure Mining Services Monitoring & Testing Specialist Maintenance North Queensland Mining Services Monitoring & Testing Specialist Maintenance Gladstone Civil Infrastructure Monitoring & Testing Specialist Maintenance North Island Brisbane Engineere
Slide 17: Asset Maintenance
ASSET MAINTENANCE WHAT WE DO CORE SERVICES Integrated multi-disciplinary maintenance, • Specialist Maintenance access solutions, asset repair and protection • Access Solutions services that sustain and extend critical • Asset Monitoring and Testing industries and infrastructure EARNINGS Annuity / Re
Slide 18: Asset Maintenance
ASSET MAINTENANCE Long-term contracts secured Term contracts with Transpower NZ, AGL, Sydney Water, Iluka Resources, QAL, FMG, Babcock and Transport VIC Geographic expansion Embedded across Western Australia, South Australia, Victoria, Queensland, New South Wales and New Zealand Integration of Asset
Slide 19: Mining Services
MINING SERVICES WHAT WE DO CORE SERVICES The critical drill and blast, performance • Production Drill and Blast analytics software and ground stabilisation • Geotechnical Services services that keep mine production moving EARNINGS Annuity / Recurring 19
Slide 20: Mining Services
MINING SERVICES Multiple Contract wins Secured new term contracts with Genesis Mining in the Goldfields and Evolution Gold across Australia to continue growth trajectory in quality commodities Orbix data intelligence software Our in-house developed analytics software ‘Orbix’ continues to be enhanced
Slide 21: Engineering & Construction
ENGINEERING & CONSTRUCTION WHAT WE DO CORE SERVICES Specialist engineering and construction of • Civil Infrastructure critical infrastructure focused on dams, • Specialist Building bridges, tanks, wind farms, engineered • Engineered Products facades and mine infrastructure across a diverse range of
Slide 22: Engineering & Construction
ENGINEERING & CONSTRUCTION First major R5/B4 project secured Secured $90m Jervis Bay integrated road and bridge project for Transport NSW with recently attained highest national road and bridge accreditation (R5/B4) Market leader in Specialist Facades Strategy of winning work with repeat clients dem
Slide 23: Our Outlook
SRG OUR OUTLOOK
Slide 24: Most sought-after diversified industrial services business
LING Ws MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL SERVICES BUSINESS LEADERSHIP HORIZON v Zero Harm / ESG industry leader and recognised employer / partner of choice wv Domestic / International growth in Engineered Products across all SRG operating segments wv Selective strategic acquisitions to compl
Slide 25: Continued Growth
CONTINUED GROWTH WORK IN HAND OPPORTUNITY PIPELINE 32% 40% $1.9b 52% $6.5b 45% 31 Dec 2023 31 Dec 2023 16% 15% Engineering & Construction Asset Maintenance Mining Services 25
Slide 26: Outlook
OUTLOOK Operating segment performance… …driving positive momentum Asset Maintenance Delivering step change growth in diverse sectors with blue-chip clients FY24 EBITDA guidance upgraded to $95m - $100m Mining Services Strength / diversity of business provides ongoing Operating in high demand, high q
Slide 27: Investment
INVESTMENT End-to-end Diverse Highly scalable asset lifecycle market sectors / business capability geographies model Annuity Capital light High yield earnings investment dividend profile profile stock 27
Slide 28: SRG Global
SRG GLOBAL srgglobal.com.au 28
Slide 29: EBITDA, EBIT(A) and NPAT(A) reconciliation
1HFY21 1HFY22 1HFY23 1HFY24 Profit before tax 6.1 12.9 18.0 21.0 Finance costs 1.4 1.2 1.8 4.0 Amortisation 2.0 1.8 1.1 3.4 EBIT (A)1 9.5 15.9 20.9 28.4 Depreciation 11.0 11.1 13.1 16.7 EBITDA 20.5 27.0 34.0 45.1 NPAT Reported 3.6 8.8 12.4 15.3 Amortisation 1.4 1.3 0.8 2.4 NPAT (A)1 5.0 10.1 13.2 17
Slide 30: Disclaimer
DISCLAIMER This presentation has been prepared by SRG Global Limited (ABN 81 104 662 259) (SRG). By accessing this presentation you acknowledge that you have read and understood the following statement This presentation contains general summary information about SRG. The information, opinions or con