Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — Shareholder Meeting (November 2024)
47 slides from Environmental's shareholder meeting presentation, Nov 19, 2024
Slide 1: The Environmental Group Limited Annual General Meeting
The Environmental Group Limited Annual General Meeting Tuesday, 19 November 2024 at 10.00am AEDT
Slide 2: Acknowledgment of Country
Acknowledgment of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Custodians of the land on which we are located today, and pay our respects to their Elders past, present and emerging. 2
Slide 3: Chair's Welcome
© The Environmental 3 Group Limited
Slide 4: Agenda
Agenda 01 Chair’s Report 02 CEO’s Presentation 03 Notice of Meeting and Proxies 04 Financial Statements and Reports 05 Resolutions 06 Conducting of the Poll 4
Slide 5: Chair's Report
01 Chair's Report © The Environmental 5 Group Limited
Slide 6: CEO Presentation
02 CEO Presentation 6
Slide 7: Engineering a Sustainable Future
Engineering a Sustainable Future to enhance the circular economy through strong ESG principles. 7
Slide 8: Operating units overview
Baltec IES improves the EGL Energy designs, installs, EGL Clean Air encompasses EGL Water offers advanced EGL Waste specialises in flexibility of gas turbines to and provides preventative the design, manufacturing patented technology innovative recycling solutions support renewable energy maintenanc
Slide 9: Key Highlights FY24
Key Highlights FY24 01 02 03 04 05 Revenue grew Normalised Cash at bank Over 50% of our Strong safety by 18.8% on the EBITDA up by $10.1M. Undrawn revenue is now record 359,000 prior 51.7% to facility of $5M. recurring, largely hours worked comparable $10.1M with service & and zero LTI’s. period up
Slide 10: Financial Results
© The Environmental 10 Group Limited
Slide 11: FY24 Financial Results – underlying
FY24 Financial Results – underlying* $98.3M $10.1M $7.6M 18.8% Increase in EBITDA up 51.7% EBIT up 52.8% Revenue on FY23 before significant before significant items on FY23 items on FY23 $4.4M $4.2M $15.1M Net Profit after tax Operating cash flow Cash $10.1M and up 68% $5M undrawn facilities. *Under
Slide 12: Growth in Earnings
Growth in Earnings Normalised EBITDA $11 Compound Annual Millions Growth 47% for the last 3 years $10.10 $10 $9 $8 $7 $6.66 $6 $5 $4.39 $4 $3.27 $3 FY21 FY22 FY23 FY24 12 *Underlying profits excludes FX Losses $163K, Performance Rights $158K, Redundancy $41K, Integration costs $88K.
Slide 13: Operating Units
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Slide 14: Baltec IES
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Slide 15: Baltec Inlet & Exhaust Systems (Baltec IES)
Baltec Inlet & Exhaust Systems (Baltec IES) provides a range of specialist services to the global gas turbine power industry as it moves to support renewable energy. • The gas turbine market is changing requiring the conversion of base load power plants to run as peaking load turbines to support ren
Slide 16: AGM Commentary: Baltec IES
AGM COMMENTARY • Revenue growth forecast for FY25, supported by high gas turbine industry demand which will result from the continued transition to renewable energy. • Growth of the renewables sector is driving need for gas turbines to have the flexibility to run either in peaking load or base load.
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Slide 18: EGL Energy service network
EGL Energy offers a service network across Australia providing 24/7 sales, service, maintenance and repairs of boilers, gas fired equipment and other original equipment manufacture, optimising energy efficiency. • Our design is the most energy efficient water tube boiler available in Australia. • Se
Slide 19: AGM Commentary: EGL Energy
AGM COMMENTARY • FY24 margin improved significantly with the increased level of service work, while at the same time new boilers sales remained very strong. • Significant investment this half in our service capability to grow recurring revenue. • The national distribution agreement for Fulton produc
Slide 20: EGL Clean Air
oF EGL 9 CLEAN AIR |. The Environmental Group Limited
Slide 21: EGL Clean Air offering
EGL Clean Air provides engineering, supply, installation, commissioning and ongoing service support for a wide range of Industrial Air Pollution Control Systems. Technologies include: For control of all emissions to air, including: • Wet & Dry Scrubbers • Gaseous pollutants • Bag Filters • Mists and
Slide 22: TAPC & Airtight to consolidate under EGL Clean Air
TAPC & Airtight to consolidate under EGL Clean Air • TAPC designs, manufactures and services flue gas treatment systems which prevent harmful contaminants being discharged into the atmosphere. • Airtight’s key offer includes Dust & Fume control by designing, installing, and maintaining air pollution
Slide 23: AGM Commentary: EGL Clean Air
AGM COMMENTARY • The capital spend on new lithium and critical minerals plants globally, has reduced significantly with the fall in the relevant commodity prices leading to plant closures and expansion project cancellations. • The long-term need for refined product remains strong as a key component
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Slide 25: EGL Waste division
EGL Waste division brings together our service lines to provide integrated solutions to the waste industry. The National Waste Policy Action Plan requires an 80% average resource recovery rate from all waste streams following the waste hierarchy by 2030. That is an increase of 17% or 12.9MT more res
Slide 26: AGM Commentary: EGL Waste
AGM COMMENTARY • Our offering to the industry is continuing to grow through not only the sales of Turmec recycling plants, but also with our provision of servicing, maintenance and spares which was launched this year. • Our pipeline for recycling plant tenders remains very strong at $146M. • At leas
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Slide 28: EGL Water division PFAS technology
EGL Water division has enhanced patented technology designed to protect our environment by the removal of PFAS from contaminated water. • PFAS was primarily used in aircraft fire fighting as a fire retardant however its use expanded into plastics and clothing prior to its detrimental impact on our e
Slide 29: PFAS separation from water, soils & biosolids
PFAS separation from water, soils & biosolids • Society and industry are aligning in their need to remove PFAS from the environment. • Our technology is effective but importantly can be provided at a low operating and capital cost, with no additional waste streams generated through our process. • EG
Slide 30: AGM Commentary: EGL Water
AGM COMMENTARY • Reclaim Waste’s liquid waste facility has received draft approval from the Environmental Protection Agency (EPA), with the final licence pending issue, to treat PFAS contaminated liquids at its Laverton facility through EGL’s PFAS separation plant. • This signifies a significant mil
Slide 31: Effectively removing PFAS from water, soil and biosolids
Effectively removing PFAS from Adaptable Size, Layout & water, soil and biosolids, reducing Configuration companies’ risks & costs. Isolating PFAS from Foam Fraction original input (PFAS Technology output is 1% of its original input) 31
Slide 32: Outlook
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Slide 33: Outlook
Outlook 01 02 03 04 Normalised EBITDA Growth will be driven by Continue to develop the Over 50% of our revenue is expected to increase strong market demand and “One EGL” culture to sell now recurring building a approximately 10-15% FY25. our increasing product multiple services lines to stronger mor
Slide 34: Outlook
Outlook 05 06 07 08 EGL Energy – Investment Baltec is set to have strong EGL Air continuing to grow EGL Water developing in service capability & the revenue performance service & maintenance products and markets for Fulton distribution supporting the transition to revenue to improve the quality the
Slide 35: EGL outlook continued
EGL outlook continued • Lucia Cade joined the Board as Non-Executive Director, bringing a wealth of experience to the Board. • Draft EPA approval of our PFAS separation technology is a significant milestone for the Company. • Actively looking to drive growth, with further opportunities progressing o
Slide 36: Questions
36 Questions % The Environmental Group Limited
Slide 37: Appendix A: Reconciliation of Statutory (4E) to underlying results
Reconciliation of Statutory (4E) to underlying results Appendix A 4E Less Significant Underlying FY24($M) Items Business Revenue 98.3 98.3 Costs of sales (69.0) (69.0) Gross profit 29.3 29.3 Employee expenses (11.7) 0.0 (11.7) Professional fees (1.6) (1.6) Travel expenses (1.6) (1.6) Marketing expen
Slide 38: Notice of Meeting and Proxies
03 Notice of Meeting and Proxies
Slide 39: Financial Statements and Report
04 Financial Statements and Report
Slide 40: Resolutions
05 Resolutions
Slide 41: Resolution 1: Adoption of Remuneration Report
Resolution 1 | Adoption of Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: “That, for the purposes of section 250R(2) of the Corporations Act 2001 (Cth) and for all other purposes, approval is given for the adoption of the R
Slide 42: Resolution 2: Election of Director Lucia Cade
Resolution 2 | Election of Director | Lucia Cade To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Lucia Cade, a Director who was appointed during the year, retires in accordance with clause 14.4 of the Company’s Constitution and ASX Listing Rule 14.4
Slide 43: Resolution 3: Re-Election of Director Lynn Richardson
Resolution 3 | Re-Election of Director | Lynn Richardson To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Lynn Richardson, a Director who retires by rotation in accordance with clause 14.2 of the Company’s Constitution and ASX Listing Rule 14.4, and
Slide 44: Resolution 4: Approval of Additional 10% Placement Capacity
Resolution 4 | Approval of Additional 10% Placement Capacity To consider and, if thought fit, to pass the following resolution as a special resolution: “That, for the purposes of ASX Listing Rule 7.1A and for all other purposes, approval is given for the issue of equity securities of up to 10% of th
Slide 45: Conducting of the Poll
06 Conducting of the Poll
Slide 46: Thank You
Thank You Pe aa ©, The Environmental PE Group Limited
Slide 47: Head Office and Disclaimer
HEAD OFFICE Suite 2.01 | Level 2 315 Ferntree Gully Road Disclaimer Mount Waverley Victoria 3149 The Environmental Group Limited advises that these presentation slides contain forward looking Phone: 03 9541 8699 statements which may be subject to significant uncertainties outside of EGL’s control. N
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