Lgi Ltd · ASX:LGI
Lgi — H1 FY2023 Earnings Presentation
29 slides from Lgi's earnings presentation, Feb 27, 2023
Slide 1: Half year results
December 2022 Half year results February/March 2023 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by LGI Limited ACN 138 085 551 (LGI or the Company) to provide summary No reliance Forward looking statements information about the Company and its associated entities. This document is issued on a confidential basis and for The information contained in thi
Slide 3: Presenting Today
Presenting Today ADAM BLOOMER DR. JESSICA NORTH JARRYD DORAN DEAN WILKINSON Managing Director and Executive Director and Chief Operating Officer Chief Executive Officer Chief Financial Officer Co-Chief Executive Officer CFO with over 20 years’ of Over 15 years of engineering and Founded LGI in 2009,
Slide 4: Contents
Contents 1 Business Highlights 2 Detailed Operational Information 3 Financial Information 4 Strategy, Growth and Outlook Appendix Financial Reconciliation to Statutory Results Toowoomba Power Station 4
Slide 5: Business Highlights
FOGUS YOUR ENERGY | Business Highlights
Slide 6: Our Business
Our Business Australia’s most vertically integrated landfill gas company Geographical footprint as at 31 December 2022 46 Employees 8 Power stations 15 Carbon Credit sites 26 Landfills supported by LGI ~38 Million dollars of property plant and equipment 6
Slide 7: Performance Overview
Performance Overview 1H FY23 Highlights Six months ended 31 December 2022 Financial results compared to corresponding period last year People Safety LGI Team Revenue1 EBITDA1 0 18% $16.3m $7.1m Reported lost time injuries Increase in total staff3 up 61% up 47% • 35,782 hours worked by the team with
Slide 8: Performance Overview - Financials
Performance Overview - Financials Six months ended 31 December 2022 1 Pro forma numbers excluding IPO costs and any significant items 8
Slide 9: Performance Overview - Trends
Performance Overview - Trends Pro forma earnings growth 1 1 Pro forma numbers excluding IPO costs and any significant items 9
Slide 10: Generation – electricity and LGCs
Generation – electricity and LGCs Growth in power stations and MWhs Generation performance 1 A$ '000 1H FY23 1H FY22 Change Operating metrics Biogas flows 2 (M cubic meters) 36.1 31.1 16% MWhs Generated 45,847 40,755 12% LGCs created 45,187 40,755 11% Profitability Electricity revenue ($'000) 6,752
Slide 11: Carbon Abatement - ACCUs
Carbon Abatement - ACCUs Growth in volume of ACCUs FY23 ACCU month end prices ($/ACCU) • Increase in gas flows from additional wells and pipework installed on carbon abatement sites • ACCU price affected by the Chubb Review and the safeguard mechanism review post 31 December 2022 • Gross margin incl
Slide 12: Infrastructure Construction and Landfill Gas Management
Infrastructure Construction and Landfill Gas Management Growth Infrastructure Construction • Several large Infrastructure Construction jobs occurred in 1H FY23 • Gross margins impacted by higher cost of materials, including higher pipe costs 12
Slide 13: Detailed Operational Information
2 Detailed Operational Information 13
Slide 14: Operation Performance – Recovered Biogas
Operation Performance – Recovered Biogas Growth in gas flow Recovered biogas (M m3) • Continued increases to biogas recovery from concerted effort of our team • New team members have joined our biogas team with new ideas, and industry experience • Increased focus on proactive planning with our clien
Slide 15: Operation Performance – Energy Generation
Operation Performance – Energy Generation Generation growth off the back of high levels of availability Availability (% of period) • Generator availability remained above our internal target of 95% Generation (GWhs) • Increased production of electricity driven by increased available biogas, and high
Slide 16: Operation Performance – Projects
Operation Performance – Projects Generation from Toowoomba in December on forecast • Incident free delivery of our newest biogas to energy plant • Innovative project; behind the meter, • Capturing biogas from TRC’s landfill, converting this into renewable energy supplying Council’s waste water • New
Slide 17: Operation Performance – Projects
Operation Performance – Projects Major Projects Near Term Horizon Expanding our carbon abatement portfolio with new sites, and continuing to maximise biogas recovered from the existing sites POWER NEM POWER & FCAS Material increase in MW biogas to energy DEMAND & PRICE DATA capacity across portfolio
Slide 18: Operation Performance – Contracted Projects Pipeline
Operation Performance – Contracted Projects Pipeline Dynamic Asset Control System (DACS) • Operating in emulation mode, performing both calculations and dispatch signals to our database MW LFGE • Next phase will focus on issuing, confirming, back testing generator setpoints Bunya Hybrid Project MW b
Slide 19: Financial Information
FOGUS YOUR ENERGY 3 Financial Information 19
Slide 20: Balance Sheet
Balance Sheet • IPO funds to be deployed as projects are built out. The immediate use for the funds was to pay down debt. The facilities continue to remain in place and will be drawn down as projects require funding • ACCU and LGC certificates are valued at either contracted value or the market pric
Slide 21: Capital Expenditure
Capital Expenditure Capital expenditure • Capex of $4.9m in 1H FY23, up 37% on pervious corresponding period • LGI continues to invest ~ 30% of revenue in capex • Capex spend in 1H FY23 included 1.5m on completing the Toowoomba power station build 21
Slide 22: Cash flow
Cash flow • Pro forma removes the cost associated with the IPO, the IPO funds and the repayment of the debt with the IPO funds. • EBITDA includes an amount of ACCUs and LGCs which are not contracted, valued at the market price as at period end. A portion of ACCUs and LGCs remain on the Balance Sheet
Slide 23: Debt and facilities
Debt and facilities • As at 31 December 2022, the gross debt was entirely comprised of term leases. These leases are over specific items of equipment, typically mobile plant. • Debt facility of $30M available for redraw. • Net debt in a cash position at 31 December 2022. 1 Calculated using pro forma
Slide 24: Strategy and Growth
FOGUS YOUR ENERGY 4 Strategy and Growth 24
Slide 25: Staged Growth with a managed approach
Staged Growth with a managed approach GAS FLOWS HISTORIC AND PROJECTED RECENT GOVERNMENT REVIEWS Chubb Review 1H FY23 55.1 M m3 is Following criticism of the integrity of the Australian Carbon Credit Unit (ACCU) scheme, the Labor Federal 51.2% of the full year Government commissioned a review by the
Slide 26: FY23 Priorities and Outlook
FY23 Priorities and Outlook Growth and continued operational excellence FY23 Priorities • Continued focus on Workplace Health and Safety • Develop the expansion of power stations on contracted sites • Work on contracted landfill sites to expand the gas collection facilities • Actively pursue new opp
Slide 27: Questions
FOCUS YOUR ENERGY Questions
Slide 28: Financial reconciliation to Statutory Results
Financial reconciliation to Statutory Results 28
Slide 29: Financial Reconciliation to Statutory Results
Financial Reconciliation to Statutory Results 29