Srg Global Limited · ASX:SRG
Srg Global — Shareholder Meeting (November 2018)
34 slides from Srg Global's shareholder meeting presentation, Nov 27, 2018
Slide 1: 2018 Annual General Meeting
2018 ANNUAL GENERAL MEETING 27 November 2018 1
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE Information, including forecast financial information in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in SRG Global or any other company. Due care and attention has
Slide 3: Our Board
OUR BOARD PETER WADE PETER MCMORROW DAVID MACGEORGE ENZO GULLOTTI Chairman Deputy Chairman Managing Director Executive Director PETER BRECHT MICHAEL ATKINS JOHN DERWIN Non-Exec Director Non-Exec Director Non-Exec Director 3
Slide 4: FY18 AGM MD's Address
FY18 AGM MD’S ADDRESS 5
Slide 5: Our Profile
OUR PROFILE 6
Slide 6: Business Units
BUSINESS UNITS BUILDING CIVIL ASSET MINING PRODUCTS SERVICES SERVICES Vertically Constructing Sustaining Comprehensive Complementary Repeat integrated Targeted complex Recurring complex Recurring ground Recurring products and solutions infrastructure infrastructure solutions technology Client Projec
Slide 7: What We Do: Building
WHAT WE DO: BUILDING Vertically integrated solutions Structure Packages Post-Tensioning Design Engineering Form Reo Pour Facade Construction and Installation Scaffold and Access Solutions Rope Access 8
Slide 8: What We Do: Civil
WHAT WE DO: CIVIL Constructing complex infrastructure Bridge Construction Dam Strengthening Silo and Tank Construction Ground and Slope Stabilisation Slipform Construction Wind Farms Cable Stay Systems Ground Anchoring Complex Structures Heavy Lifting and Shifting 9
Slide 9: What We Do: Asset Services
WHAT WE DO: ASSET SERVICES Sustaining complex infrastructure Bridge Maintenance Structural Strengthening Transmission Tower Surface Protection and Maintenance Remediation Concrete Repair and Refractory Services Protection Wind Farm Maintenance Design Engineering Scaffold and Access Monitoring Soluti
Slide 10: What We Do: Mining Services
WHAT WE DO: MINING SERVICES Comprehensive ground solutions Drill and Blast Ground and Slope Stabilisation Monitoring Mine Infrastructure Industrial Services Design Engineering Scaffold and Access Solutions Rope Access 11
Slide 11: What We Do: Products
WHAT WE DO: PRODUCTS Complementary products and technology Ground Support Products Post-Tensioning Products Reinforcing Products Formwork Products Structural Products Architectural Products Facade Products Monitoring Products 12
Slide 12: Our Global Footprint
OUR GLOBAL FOOTPRINT O nited states Oo a) A Offices O svaney i: Engineer © Construct O Sustain
Slide 13: Our Local Footprint
OUR LOCAL FOOTPRINT Darwin Kununurra Cains@ @tovmsvite © Port Hedland NolansEast @ @ e Mt Carton vale © Mackay eects creat Maeno °. ma mera Rockhampton TomPrice @ Newman 7 Mi. Ravcion @ @ Sikes © Surstine Coast Brisbane @ Gold Coast @rorterfeld — @ Batina @ Wyalkatchem © Leinster Manila @ @Bolvia Gu
Slide 14: SRG Global Financial Overview
SRG GLOBAL FINANCIAL OVERVIEW ADJUSTED REVENUE ($M) REVENUE SPLIT BY BUSINESS (%) 469.9 Building 393.8 46% 338.4 Civil Mining Services 4% 15% Asset Services 24% 11% Products FY16 FY17 FY18 ADJUSTED EBIT ($M) REVENUE SPLIT BY GEOGRAPHY (%) 31.1 26.3 23.4 Australia - East 61% Australia - West 19% 21%
Slide 15: Who We Are
WHO WE ARE 16
Slide 16: We make the complex simple
SRG Global is an engineering-led specialist construction, maintenance and mining services group built to solve complex problems across the entire asset lifecycle. We make the complex simple 17
Slide 17: End-to-end solutions
OUR OPERATING MODEL End-to-end At every stage in the life of our customers’ critical assets, we’re there to solutions support them with specialist technical expertise, services and products. 18
Slide 18: What We Stand For
WHAT WE STAND FOR Live for the challenge We live to solve problems and have the courage to challenge the status quo and what’s considered possible. Smarter together Individually we’re all pretty smart but when we pool our resources and work together as one we’re capable of taking on the world. Never
Slide 19: SRG Global: Who We Are, What We Do
SRG GLOBAL WHO WE ARE WHAT WE DO OPERATING MODEL We’re an engineering-led We bring an engineering End-to-end solutions specialist construction, mindset to solving maintenance and mining complex problems services group across the entire asset lifecycle WHY IT WHAT WE WHERE WE WANT MATTERS STAND FOR T
Slide 20: Where We Are Going
WHERE WE ARE GOING 21
Slide 21: Our Strategic Horizons
OUR STRATEGIC HORIZONS Building the most sought-after specialist construction, maintenance and mining services business in the world LEADERSHIP GROWTH Zero Harm industry leader Vertically integrated solutions Recognised employer of choice OPTIMISATION Key partner of choice in our specialised Step ch
Slide 22: Optimisation – Integration Progress
OPTIMISATION – INTEGRATION PROGRESS Completely complementary service offering is unique for a merger Making the integration process much simpler Very positive feedback from customer base Synergies on track Systems consolidation commenced Brand rollout progressing Top 40 SRG Global lead
Slide 23: Post Merger Achievements
POST MERGER ACHIEVEMENTS BUILDING Facades – Secured $30m design, supply and install contract with Multiplex at 300 George St, Brisbane Facades – Secured $14m design, supply and install contract at University of Melbourne’s Connect Initiative Building – Secured $11.5m structures contract with L
Slide 24: Post Merger Achievements
POST MERGER ACHIEVEMENTS ASSET SERVICES Oil & Gas – Extended Woodside access contract by four years Refractory Services – First works secured in Australia Bridge Maintenance – Secured first integrated offering for bridge maintenance (rope access, coatings) CIVIL Dams – First Early Contractor
Slide 25: Facade Cladding Replacement Capability Model
FACADE CLADDING REPLACEMENT CAPABILITY MODEL Investigation / Diagnosis Compliance Design / and Value Certification Engineering Execution Product of Works END-TO-END SOLUTION Selection Access Solutions Manufacture Logistics 26
Slide 26: Dam Anchoring Capability Model
DAM ANCHORING CAPABILITY MODEL Value Engineering Monitoring Access systems Corrosion protection Drilling Grouting Manufacture Transportation Stressing Installation 27
Slide 27: Work Opportunity Pipeline $4.4B
WORK OPPORTUNITY PIPELINE 47% Building Civil 1% $4.4B Asset Services 5% Mining Services 33% 14% Products 28
Slide 28: Outlook
OUTLOOK Underlying EBIT range for FY19 of $30M to $35M Weighted to 2H due to delayed timing of project awards Work in Hand (WIH) of $560M Preferred status on circa $200M of contracts Step change profit growth anticipated in FY20 Continuing to position the business towards recurring / cap
Slide 29: Balanced Business Portfolio
Balanced Business Portfolio Diversity Diversity Diversity in in revenue in market geographic base sectors footprint Differentiated Recurring / Robust service repeat business model offerings revenues (end-to-end) 30
Slide 30: Attractive Investment Proposition
Attractive Investment Proposition High Dividend Robust growth paying balance stock stock sheet Clear Balanced Track long-term business record of strategy portfolio delivery 31
Slide 31: Appendix
APPENDIX 63
Slide 32: Corporate Structure
CORPORATE STRUCTURE SUMMARY SHARE REGISTER COMPOSITION (%) Proposed New Name(1) SRG Global Institutional Current ASX Code(1) GCS 46% New ASX Code(1) SRG Retail Shares on Issue 440.4m Share Price(2) $0.54 19% 35% Board and Market Capitalisation(2) $238m Management Notes: (1) SRG Global will apply to
Slide 33: SRG Global Financial Adjustments
SRG GLOBAL FINANCIAL ADJUSTMENTS ADJUSTED REVENUE ($M) REVENUE ADJUSTMENTS ($M) 469.9 NON-RECURRING ITEMS FY16 FY17 FY18 393.8 GCS Hire divested in FY18(1) (24.0) - - 338.4 GCS – 49% of Gallery Facades not owned - (22.8) (37.3) SRG – 50% of JV revenue - - 20.5 Total (24.0) (22.8) (16.8) Note: (1) FY
Slide 34: Solving challenges wherever they are
Solving challenges wherever they are srgglobal.com.au 66