Emeco Holdings Limited · ASX:EHL
Emeco — Shareholder Meeting (November 2023)
15 slides from Emeco's shareholder meeting presentation, Nov 29, 2023
Slide 1: Annual General Meeting: Managing Director & CEO Presentation
Emeco Holdings Limited Annual General Meeting Managing Director & CEO Presentation 29 November 2023
Slide 2: Emeco at a Glance
EMECO AT A GLANCE Australia’s largest mining equipment rental provider, complemented by value-added services including high quality maintenance, equipment rebuild, fleet optimisation technology, technical and engineering services Fleet size of ~900 250+ projects 9 Workshops across ~3x larger than ne
Slide 3: Flexible Equipment Fleet
FLEXIBLE EQUIPMENT FLEET Emeco’s fleet is configured to service a broad range of commodities across Australia’s mining regions. We acquire second-hand equipment which we rebuild to perform like new, creating a competitive cost and quality advantage Open-cut fleet composition Underground fleet compos
Slide 4: Emeco is a Diversified Mining Services Provider
EMECO IS A DIVERSIFIED MINING SERVICES PROVIDER Emeco offers a comprehensive suite of services through three closely integrated operating segments, providing customers with a one-stop-shop Rental Pit N Portal Workshops Brands Australia’s largest provider of open cut rental Australia’s largest underg
Slide 5: FY23 Group Financial Highlights
FY23 GROUP FINANCIAL HIGHLIGHTS Strong turnaround performance in 2H23 to deliver solid returns for the year. Full year results impacted by a disappointing 1H23 performance from PNP Revenue Operating EBITDA1 Operating EBIT1 Operating NPAT1 $875m $250m $105m $59m +16% vs. FY22 $754m Stable vs. FY22 $2
Slide 6: History of Growth and Solid Returns
HISTORY OF GROWTH AND SOLID RETURNS Emeco has a successful track record of delivering solid earnings growth and returns greater than our cost of capital. Over time, we have returned to our ~1.0x leverage target through disciplined capital allocation COVID-19 & Ukraine Key event conflict driving cost
Slide 7: Emeco Delivers Strong Returns
EMECO DELIVERS STRONG RETURNS Successful track record of delivering strong returns COVID-19 & Ukraine Key event conflict driving cost Credit event timeline 3-way $70m acquisition $80m acquisition $72m acquisition inflation, impacting margins and returns impacting margins merger and returns BAU Retur
Slide 8: Emeco Delivers Strong Cash Flow
EMECO DELIVERS STRONG CASH FLOW Emeco has a successful track record of delivering strong free cash flow Credit event impacting 1H23 Cash Flow by $23.0 million Free Cash Flow1 120 100 97 96 80 79 60 73 71 40 53 20 0 (13) -20 FY17A FY18A FY19A FY20A FY21A FY22A FY23A Free Cash Flow Notes: 1. FCF befor
Slide 9: Emeco's Competitive Advantage
EMECO’S COMPETITIVE ADVANTAGE Emeco’s scale and engineering capability creates a competitive advantage which is protected by high barriers to entry National footprint with strategically located workshops and skilled employees in all of Australia’s key mining regions – our competitors are Geography m
Slide 10: Competitive Advantage: Low Cost, Mid-Life Asset Model
COMPETITIVE ADVANTAGE: LOW COST, MID-LIFE ASSET MODEL Emeco’s differentiated asset strategy of rebuilding equipment internally through our Force workshops generates cost advantages that none of our competitors can achieve FY22 and FY23 growth capex investments Emeco purchases mid-life used equipment
Slide 11: Well Diversified Customer Base and Commodity Mix
WELL DIVERSIFIED CUSTOMER BASE AND COMMODITY MIX Emeco has a well diversified exposure by commodity and by customer with long standing relationships. This supports strong performance through the cycle Diversified customer base 200+ customers, 250+ projects No single customer represents more than
Slide 12: Future Growth Outlook
FUTURE GROWTH OUTLOOK Production across key commodities (met coal, thermal coal and iron ore) is forecast to remain strong over the next two years. Australian production outlook 1600 1400 1200 Australia Production (Mt) 1000 800 600 400 200 0 2021-22 2022-23 2023-24 2024-25 Met Coal Iron Ore Thermal
Slide 13: FY24 Trading Update and Outlook
HIGHLIGHTS FY24 TRADINGAND OUTLOOK UPDATE Outlook remains positive with demand across all businesses expected to remain robust Trading Update October YTD performance is in line with expectations and we are on-track to deliver 1H24 performance in line with a strong 2H23 We expect earnings growt
Slide 14: Emeco Investment Highlights
EMECO INVESTMENT HIGHLIGHTS 1 2 3 Scale and engineering Australia’s largest capability creates a mining equipment rental History of strong competitive advantage provider with national returns and free cash which is protected by footprint flow generation high barriers to entry 4 5 6 Diversified by cu
Slide 15: Thank You
Thank You