Perenti Limited · ASX:PRN
Perenti — FY2022 Earnings Presentation
31 slides from Perenti's earnings presentation, Aug 23, 2022
Slide 1: FY22 Results
FY22 Results 23 August 2022 Expect More
Slide 2: Important notice and disclaimer
Important notice and disclaimer FY22 Results This presentation and these materials (together the “Presentation”) have been prepared by Perenti Global Limited ABN 95 009 211 You should consult your own advisors as to legal, tax, financial and related matters and conduct your own investigations, 474 (
Slide 3: FY22 Overview
FY22 Results FY22 Overview Expect More
Slide 4: FY22 Underlying financial results
FY22 | Underlying financial results FY22 Results REVENUE EBITDA EBIT(A) NPAT(A) $2.4B $426M $176M $82M ▲ 21% on FY21 ▲ 12% on FY21 ▲ 3% on FY21 ▲ 6% on FY21 In-line with revised FY22 guidance Exceeded revised FY22 guidance range range CASH CONVERSION1 LEVERAGE ROACE 2 108% 1.3x 15.2% Second consecut
Slide 5: FY22 Business overview
FY22 | Business overview FY22 Results Sustainability • Tragically lost three employees to two fatal incidents. Continued implementation of our safety improvement plan, also commenced an independent review of safety performance. • FY22 SPIFR1 of 2.8 and TRIFR2 of 6.9. Completed 27,450 leader led Crit
Slide 6: Our Sustainability Report
FY22 | Our Sustainability Report FY22 Results Environment • Committed to disclosure Scope 3 emissions1 in FY23. • Developing a decarbonisation roadmap. Reduced FY22 Scope 1 & 2 emissions, targeting further emission reductions in FY23. • Committed to the capture and disclosure of our water use and wa
Slide 7: FY22 Business performance
FY22 Results FY22 Business performance Expect More
Slide 8: Navigating through unprecedented challenges
Navigating through unprecedented challenges FY22 Results COVID-19 • Global recovery is progressing and COVID-19 related productivity interruptions continue to reduce. • As COVID-19 eases, rosters have normalised and international productivity rates have improved. Country & border restrictions • Easi
Slide 9: Group performance – underlying
Group performance – underlying FY22 Results REVENUE EBITDA EBIT(A) ROACE $2,438M ▲21% YoY $426M ▲12% YoY $176M ▲3% YoY 15.2% ▲93bps YoY 2,438 444 426 212 16.6% 380 15.2% 2,045 2,022 14.3% 171 176 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 4% 5% 6% 8% 7% 3% 64% 47% 4% 2%3% 8% 2% 2% 4
Slide 10: Group performance – Our recovery and growth
Group performance – Our recovery and growth FY22 Results REVENUE EBITDA EBIT(A) ROACE ▲4% HoH ▲11% HoH ▲18% HoH ▲272bps HoH COVID-19 recovery COVID-19 recovery COVID-19 onset COVID-19 recovery COVID-19 recovery COVID-19 onset COVID-19 onset COVID-19 onset 1,245 222 222 100.7 16.6% 16.5% 1,192 111.0
Slide 11: Underground mining – H2 margin improvement
Underground mining – H2 margin improvement FY22 Results REVENUE EBIT(A) EBIT(A) Margin $1,737M ▲18% YoY $185M ▼8% YoY 10.6% ▼295bps YoY 1,737 15.1% 196 200 13.6% 1,476 185 1,300 11.1% 10.6% 10.1% 849 888 99 86 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 • Progressed ou
Slide 12: Surface mining – AMS turnaround continues
Surface mining – AMS turnaround continues FY22 Results REVENUE EBIT(A) EBIT(A) Margin $554M ▲35% YoY $30M ▲1069% YoY 5.4% ▲482bps YoY 30 5.7% 602 5.4% 5.2% 554 25 4.2% 410 16 287 266 14 0.6% 3 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 • Revenue growth primarily from
Slide 13: Investments – continuing to improve and evolve
Investments – continuing to improve and evolve FY22 Results REVENUE EBIT(A) EBIT(A) Margin $147M ▲8% YoY $13M ▲33% YoY 9.0% ▲166bps YoY 17.6% 147 142 135 25 12.5% 77 13 9.0% 70 9 7.3% 10 5.8% 4 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 FY20 FY21 FY22 1H22 2H22 • Revenue increase driven by st
Slide 14: EBIT(A) margin expansion to FY25
EBIT(A) margin expansion to FY25 FY22 Results 10.4% >10% 10.0% 8.4% ~8.0% 8.0% 7.7% 6.8% 6.0% Indicative EBIT(A) margin expansion by category to FY25 (not to scale) 4.0% 2.0% 0.0% FY20 FY21 1H22 2H22 FY23e COVID-19 Labour Business Overheads FY26e+ FY25e recovery Performance Note: FY23e mid-point of
Slide 15: FY22 Financials
FY22 Results FY22 Financials Expect More
Slide 16: Underlying profit and loss
Underlying profit and loss FY22 Results $M FY21 FY22 Change Revenue 2,021.8 2,437.7 ▲20.6% EBITDA 380.0 426.4 ▲12.2% • Increased revenue as several growth projects ramp up. EBITDA margin 18.8% 17.5% ▼130 bps EBIT (before amortisation) 170.8 176.3 ▲3.2% • FY22 EBITDA up 12% on FY21, in-line with incr
Slide 17: Reconciliation of underlying to statutory
Reconciliation of underlying to statutory FY22 Results $M REVENUE EBITDA EBIT NPAT Underlying results 2,437.7 426.4 176.3 81.7 Margin (%) - 17.5% 7.2% 3.4% Add non-recurring items below Transaction, restructuring and other one-off costs - (9.9) (9.9) (9.9) Non-cash impairment of Customer Related Int
Slide 18: Cash flow and cash conversion
Cash flow and cash conversion FY22 Results $M FY21 FY22 Change • Record cash conversion of 108%. Operating cash flows (before interest and tax) 398.9 458.9 ▲15.0% Operating cash conversion1 105% 108% ▲30 bps • Cash tax paid increased due to cash repatriation from foreign jurisdictions. Net interest
Slide 19: Cash flow waterfall
Cash flow waterfall FY22 Results • We continued to generate solid cash flows from business operations. 26.7 341.3 • After investing in the future of our business, and following our strategic portfolio rationalisation and simplification, we generated total cash of $28.9 million. • Our revolving credi
Slide 20: Liquidity and capital management
Liquidity and capital management FY22 Results GROUP DEBT ($M) FY21 FY22 FY23 guidance 600.0 651.7 1.3x 1.3x 1.3x US$450 million guaranteed senior notes ~1.2x Leverage target Revolving credit facilities 92.5 198.8 <1.0x Asset finance and other funding 75.5 51.3 Total borrowings and lease liabilities
Slide 21: FY23 Outlook to FY25
FY22 Results FY23 Outlook to FY25 Expect More
Slide 22: Repositioning our business model
Repositioning our business model FY22 Results idoba • Digital platform product solution. Mining Services • Internal and external industry opportunities. Contract Mining • Emerging new growth areas. • Modest investment for large • Iconic brands, long-term quality projects. • Broad portfolio of busine
Slide 23: Sumitomo's strategic investment in idoba
Sumitomo’s strategic investment in idoba FY22 Results Strategic rationale Transaction terms • Recognises the embedded value of idoba within Perenti. • A$80 million enterprise value. Valuation1 • A$54 million equity value. • An attractive valuation reflecting idoba’s growth prospects. • 10% of issued
Slide 24: Delivering through our strategic focus areas
Delivering through our strategic focus areas FY22 Results Strategic Business Capital Organisational People and Data and Focus Areas: performance management health culture analytics • Improve safety • Complete portfolio • Embed new operating • Leading@Perenti • Establish data and Optimise current rev
Slide 25: A focused strategy to deliver competitive TSR
A focused strategy to deliver competitive TSR FY22 Results Deliver competitive Total Shareholder Returns by building a portfolio of complementary businesses that deliver consistent and quality cash profits to create enduring value for our clients, our people and our investors. OUR FOCUS AREAS OUR FU
Slide 26: FY23 Guidance
FY23 | Guidance FY22 Results TARGETING No life changing events HOW WE WILL DELIVER 2 • Implement the findings from our internal and external safety reviews. REVENUE $2.4B to $2.5B • FY23 secured revenue ~$2.3 billion from $6.5 billion Work in Hand. $8.5 billion pipeline. • Continued ramp-up of sever
Slide 27: Thank you
Thank you perentigroup.com Expect More
Slide 28: APPENDIX: Underlying financials
APPENDIX: Underlying financials FY22 Results Group ($M) FY20 FY21 FY22 Trend (YoY) Revenue 2,044.6 2,021.9 2,437.7 ▲20.6% EBITDA 443.8 380.0 426.4 ▲12.2% EBIT(A) 211.7 170.8 176.3 ▲3.2% NPAT(A) 110.3 77.0 81.7 ▲6.3% Cash Conversion 96% 105% 108% ▲266bps Net Debt 556.4 503.3 553.3 ▲10.0% Leverage 1.3
Slide 29: APPENDIX: FY22 revenue breakdown
APPENDIX: FY22 revenue breakdown FY22 Results Revenue by Project (%) Group Underground Surface Investments* Top Project 6.0% 7.6% 6.7% 62.5% Top 2 – 10 projects 40.4% 38.1% 19.0% 11.0% Top 11-20 projects 22.5% 47.3% 7.0% 15.4% All others 31.1% 7.0% 67.3% 11.1% Revenue by Country (%) Australia 47.3%
Slide 30: APPENDIX: Graphics of revenue breakdown
APPENDIX: Graphics of revenue breakdown FY22 19% 7% 6% Results 31% Revenue by Project 42% FY20 FY22 40% Not reliant on any one project for revenue 22% 23% Top project Top 2 to 10 projects Top 11 to 20 projects All others 8% 4% 7% 8% Revenue by Country FY20 FY22 44% Revenue from Tier 1 mining jurisdi
Slide 31: APPENDIX: WIH and Pipeline breakdown
APPENDIX: WIH and Pipeline breakdown Current operations and offices Value ($B) Work in Hand Pipeline Australia 3.0 2.5 West Africa 1.9 0.8 Botswana 1.2 0.4 Southern Africa 0.3 0.7 North America 0.1 4.0 TOTAL 6.5 8.5 Value ($B) Work in Hand Pipeline Gold 4.0 4.2 Copper 1.3 2.1 Nickel 0.9 0.5 Zinc 0.1