Slide 1: 1H FY22 Results Presentation
1H FY22 RESULTS PRESENTATION 22 FEBRUARY 2022
Slide 2: About Us: Who We Are, What We Do, Our Vision
ABOUT US WHO WE ARE We’re a global engineering-led specialist asset maintenance, mining services and construction group WHAT WE DO We solve complex problems across the entire asset lifecycle OUR VISION The most sought-after specialist asset maintenance, mining services and construction business 2
Slide 3: 1H FY22 In Review
1H FY22 IN REVIEW 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY 1H FY21 1H FY22 % change Revenue $283.0m $297.0m 5% EBITDA $20.5m $27.0m 32% EBIT(A) $9.4m $15.9m 69% NPAT(A) $5.0m $10.1m 102% EBITDA % margin 7.2% 9.1% 26% EBIT(A) % margin 3.3% 5.4% 64% NPAT(A) % margin 1.7% 3.4% 100% Interim Fully Franked Dividend 1.0 cents 1.5 cents 50% Net Ca
Slide 5: Executing the Growth Phase of Our Strategy
EXECUTING THE GROWTH PHASE OF OUR STRATEGY “Successfully transitioned the business mix towards annuity / recurring earnings” LEADERSHIP GROWTH Zero Harm / ESG industry leader and Step change growth in recurring recognised employer / partner of choice Asset Services Domestic / International growth
Slide 6: Our Strategic Transformation
OUR STRATEGIC TRANSFORMATION “Strategic Transition towards Annuity Earnings” 30% 33% Annuity Project Earnings Earnings 67% Annuity 70% Earnings Project Earnings 2018 TODAY 6
Slide 7: Delivering Continued Earnings Growth
DELIVERING CONTINUED EARNINGS GROWTH EBITDA EBIT(A) 30.0 20.0 30.0 19.0 25.0 15.0 ($M) ($M) 26.5 27.0 27.0 15.6 15.9 16.0 20.0 10.0 20.5 9.4 15.0 5.0 1H FY21 2H FY21 1H FY22 2H FY22 1H FY21 2H FY21 1H FY22 2H FY22 7
Slide 8: Delivering Increased Cash and Dividends
DELIVERING INCREASED CASH AND DIVIDENDS Net Debt to Net Cash Fully Franked Dividends (cps) 35.0 1.5 25.0 1.0 15.0 28.2 (cents) ($M) 1.5 12.2 5.0 5.3 0.5 1.0 1.0 -8.4 -5.0 -11.4 0.5 0.5 -15.0 0.0 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 8
Slide 9: Underpinned by a Strong Foundation
UNDERPINNED BY A STRONG FOUNDATION ZERO HARM GROWING GENDER IMPROVEMENT WORKFORCE DIVERSITY Male Female 47% 21% 5% Improvement 52% 2,300 95% 1,800 48% TRIFR Dec 20 TRIFR Dec 21 Dec 20 Dec 21 Corporate Operational COMMUNITY GEOGRAPHIC CORPORATE ENGAGEMENT DIVERSITY GOVERNANCE Indigenous Joint Venture
Slide 10: Financial Overview
FINANCIAL OVERVIEW 10
Slide 11: Strong 1H FY22 Financial Performance
STRONG 1H FY22 FINANCIAL PERFORMANCE SEGMENT RESULTS ($m) ASSET MINING TOTAL SERVICES SERVICES CONSTRUCTION CORPORATE Revenue 297.0 101.0 53.0 143.0 - EBITDA 27.0 11.6 11.4 11.1 (7.1) EBIT(A) 15.9 7.6 7.8 8.3 (7.8) Corporate overheads of $7.1m equates to 2.4% Asset Services experienced good of reven
Slide 12: Excellent Cash Generation
EXCELLENT CASH GENERATION Strong focus on working capital management Normal sustaining capital spend and growth Reflects prudent capital management delivering operating cashflow before interest capital investment for term contracts secured with a continued focus on minimising and tax of $35.5m Group
Slide 13: Robust Financial Position
ROBUST FINANCIAL POSITION BALANCE SHEET ($m) Available liquidity of $101.8m, comprised of 1H FY22 cash on hand of $59.9m and available undrawn Cash and cash equivalents 59.9 working capital facilities of $41.9m Trade, other receivables & contract assets 116.8 Inventories 17.6 Net cash of $28.2m, fro
Slide 14: Our Operating Segments
OUR OPERATING SEGMENTS 14
Slide 15: Asset Services Overview
ASSET SERVICES OVERVIEW KEY CLIENTS 15
Slide 16: Asset Services In Review
ASSET SERVICES IN REVIEW Excellent mobilisation and operational delivery A number of contract wins and extensions achieved ‒ 3 + 1 year contract with Roy Hill ‒ 3-year contract with Minara Resources ‒ 3-year contract with Fonterra NZ ‒ 1-year contract extension with Transpower NZ ‒ 1-year contra
Slide 17: Mining Services Overview
MINING SERVICES OVERVIEW KEY CLIENTS 17
Slide 18: Mining Services In Review
MINING SERVICES IN REVIEW Continued strong operational / financial performance Excellent asset utilisation of >90% A number of contract wins and contract extensions achieved ‒ 5-year contract with SIMEC Mining ‒ 2-year contract with Evolution Mining ‒ 2-year contract with Navarre Minerals ‒ 6-
Slide 19: Construction Overview
CONSTRUCTION OVERVIEW KEY CLIENTS 19
Slide 20: Construction In Review
CONSTRUCTION IN REVIEW Civil and Engineering Strong 1H performance Robust pipeline of Government opportunities ‒ Dams, Bridges, Tanks Achieved higher bridge / road accreditation (R2 / B4) opening up larger infrastructure opportunities High demand for SRG engineered products with excellent gr
Slide 21: Our Strategic Direction
OUR STRATEGIC DIRECTION 21
Slide 22: Strategic Horizons
STRATEGIC HORIZONS Building the most sought-after specialist asset maintenance, mining services and construction business LEADERSHIP GROWTH Zero Harm / ESG industry leader and Step change growth in recurring recognised employer / partner of choice Asset Services Domestic / International growth in En
Slide 23: Strong Platform for Continued Growth
STRONG PLATFORM FOR CONTINUED GROWTH WORK IN HAND OPPORTUNITY PIPELINE 29% 40% 40% $1b 45% 62% $6b 31 Dec 2021 31 Dec 2021 9% 20% Asset Services Mining Services Construction 23
Slide 24: Outlook
OUTLOOK Operating Segment Outlook Asset Services delivering step change growth in diverse sectors with blue-chip clients Mining Services operating in high demand, high quality growth commodities Construction positively linked to Government Infrastructure stimulus programs SRG Engineered Prod
Slide 25: Investment Proposition
INVESTMENT PROPOSITION End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Highly scalable Capital light Dividend business investment paying model profile stock 25
Slide 26: Solving challenges wherever they are
Solving challenges wherever they are srgglobal.com.au