Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — H1 FY2023 Earnings Presentation
31 slides from Sgh's earnings presentation, Feb 15, 2023
Slide 1: Presentation of Half Year Results
15 February 2023 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 PRESENTATION OF HALF YEAR RESULTS Seven Group Holdings Limited (ASX: SVW) attaches the results presentation slides for the half year ended 31 December 2022. This release has been aut
Slide 2: 1H FY23 Financial Results Presentation
1H FY23 Financial Results Presentation 15 February 2023
Slide 3: Group Overview 1H FY23 Key Results
Group Overview 1H FY23 Key Results $4,607m 16% $842m 12% Revenue EBITDA $595m 16% $341m 17% EBIT NPAT1 $574m 23% 94c 18% Op Cashflow EPS • This presentation refers to underlying results unless otherwise specified 1 Attributable to members of the Group 1H FY23 Financial Results Presentation 2
Slide 4: Group Overview Purpose, Objective and Values
Group Overview Purpose, Objective and Values Owner’s Mindset Courage • Commit to achieving our long-term • Empower and trust our objectives and delivery of outcomes people to recognise • Invest in businesses where the and pursue investment opportunity exceeds the opportunities Recognising return req
Slide 5: Group Overview SGH Advantage
Group Overview SGH Advantage Infrastructure & Domestic Gas / LNG Mining Production Construction Activity facilitating energy transition Leading market positions Limited fixed price Privileged assets with Actively manage inflation contract risk defendable moats 1H FY23 Financial Results Presentation
Slide 6: Group Overview Safety
Group Overview Safety LTIFR1 TRIFR2 Safety focus delivering results December December December December • Group TRIFR improved by 16% 2022 2021 2022 2021 WesTrac WA 0.3 0.2 7.6 6.7 • Improvements in safety performance at Coates WesTrac NSW 0.3 0.3 4.4 5.93 and Boral Coates 2.1 3.33 6.1 10.9 Lead ind
Slide 7: Group Overview ESG
Group Overview ESG Environmental • Boral Berrima chlorine bypass on track • Concrete recarbonisation offsetting up to 55% of process emissions, Boral quantifying impact • Coates and WesTrac rolling out solar at 18 sites • Coates Greener Choices fleet grew 18% in 1H • CAT investing in sustainable tes
Slide 8: Group Overview Earnings Growth
Group Overview Earnings Growth Strong 1H FY23 Group earnings 300 HY22-23 EBIT ($m) • EBIT of $595m, up 16% 21% Enabled by our operated businesses 250 • Supported by strength in mining production, infrastructure and construction activity 200 • $1.1tn five-year infrastructure & construction pipeline1
Slide 9: Group Overview Key Financials
Group Overview Key Financials Underlying Results ($m)1 HY23 HY22 % Change Revenue 4,607 3,956 16% Earnings before interest, tax, depreciation and 842 749 12% amortisation Earnings before interest and tax 595 511 16% 4,607 Net profit after tax2 341 291 17% 3,956 595 511 Earnings per share (cps) 94 80
Slide 10: WesTrac – Business Unit Overview
WesTrac – Business Unit Overview 1H FY23 Financial Results Presentation 9
Slide 11: Industrial Services WesTrac Highlights
Industrial Services WesTrac Highlights Growth across new machines and support sales WesTrac Revenue Split ($m) 2,500 Capital sales • Machine sales up 33%, product support up 13% Product support 2,000 • 1H Sales growth of 20% outperforming 5-year CAGR of 9% 1,500 Supported by demand and customer acti
Slide 12: Industrial Services WesTrac Financials
Industrial Services WesTrac Financials Revenue up 20% to $2,296m • Combination of volume growth and pricing EBIT up 21% to $254m EBIT Margin of 11.1% up 14bp 2,296 • 254 1,921 210 • Increasing operational leverage HY22 HY23 HY22 HY23 • Operating cashflow up $202m to $103m Revenue $m EBIT $m • Capita
Slide 13: Coates – Business Unit Overview
Coates – Business Unit Overview 1H FY23 Financial Results Presentation 12
Slide 14: Industrial Services Coates Highlights
Industrial Services Coates Highlights Hire Revenue Split by Sector Elevated customer activity Other Residential • Strong East Coast demand through Infrastructure projects 10% 17% • Average asset utilisation (TU) above 60%, with some markets above 65% Non-Residential 11% 31% Engineering & Hub and spo
Slide 15: Industrial Services Coates Financials
Industrial Services Coates Financials Revenue of $575m up 16% driven by: • Construction activity driving increased duration supporting equipment hire growth across key geographies • Pricing actions and operational discipline Scale and operating leverage driving higher yield 149 575 119 496 • 25.9%
Slide 16: Boral – Business Unit Overview
Boral – Business Unit Overview 1H FY23 Financial Results Presentation 15
Slide 17: Industrial Services Boral Highlights (72.6%)
Industrial Services Boral Highlights (72.6%) Progress on performance journey Construction materials: Leading integrated network • Leadership changes – Essentially in place 361 1 4,723 • Cost focus on SG&A – Initial work complete, employees2 operating sites progress continues NT QLD • Pricing discipl
Slide 18: Industrial Services Boral Financials
Industrial Services Boral Financials Boral revenue from continuing ops of $1,681m, up 12% • Driven by volumes and pricing traction • Strong customer activity EBIT of $95m up 23% 1,681 EBIT margin up 50bp 1,500 • 23% 95 12% 78 • Pricing discipline mitigating cost pressures HY22 HY23 Revenue $m HY
Slide 19: Energy – Business Unit Overview
Energy – Business Unit Overview 1H FY23 Financial Results Presentation 18
Slide 20: Energy Beach and SGH Energy Highlights
Energy Beach and SGH Energy Highlights Beach Energy Key Financials Beach Energy (30%) • NPAT of $191m, down 10% on lower production coupled with margin compression • Otway production up 36% PcP, well connection program on track • Webuild contracted to complete Waitsia Stage 2, targeting start-up by
Slide 21: Media – Business Unit Overview Update
Media – Business Unit Overview Update 1H FY23 Financial Results Presentation 20
Slide 22: Media Seven West Media (39%) & Other Media
Media Seven West Media (39%) & Other Media Revenue of $815m, flat against short ad market Seven West Media Key Financials • EBITDA of $205m, down 5% • EBIT of $185m, down 9% • NPAT of $123m, down 4% • Operating cash flow1 of $204m, up 55% 205 815 215 5% 820 Balance Sheet HY22 HY23 1% HY22 HY23 Re
Slide 23: Financials Profit and Loss
Financials Profit and Loss $m HY23 HY22 Change % Revenue (continuing operations) 4,607.0 3,956.0 16.5% Other income 20.2 24.5 (17.6)% Share of results from equity accounted investees 114.0 127.4 (10.5)% Trading revenue and other income 4,741.2 4,107.9 15.4% Expenses (excluding depreciation, amortisa
Slide 24: Financials Significant Items
Financials Significant Items $m HY23 HY22 Revaluation of equity accounted interest on acquisition of Boral - 756.8 Fair value adjustments on acquisition of Boral 6.9 (13.3) Boral transaction costs - (7.3) Boral property segment - 5.4 Project implementation benefit/(costs) and Boral transaction costs
Slide 25: Financials Business Unit Earnings
Financials Business Unit Earnings Total $m WesTrac Coates Boral Energy Media Investments Corporate Group Revenue from continuing operations 4,607.0 2,296.3 574.9 1,681.1 2.4 - 52.3 - Statutory EBIT 558.9 254.1 149.0 109.0 61.7 (3.9) 3.5 (14.5) Add: unfavourable significant items 54.2 - - - - 54.2 -
Slide 26: Financials Cashflow
Financials Cashflow $m HY23 HY22 Key Commentary Underlying EBIT 594.6 510.9 • OCF $105.9m higher led by favourable working capital movements in WesTrac Add: depreciation and amortisation 247.2 238.4 • Coates continued to achieve a strong cash Underlying EBITDA 841.8 749.3 conversion of 97% Operating
Slide 27: Financials Balance Sheet
Financials Balance Sheet $m 1H FY23 FY22 Change % Trade and other receivables 1,554.5 1,534.7 1.3% Inventories 1,768.9 1,692.8 4.5% Assets held for sale 2.9 3.7 (21.6)% Investments 1,811.7 1,791.3 1.1% Property, plant and equipment 3,452.7 3,424.7 0.8% Oil and gas assets 422.9 365.7 15.6% Intangible
Slide 28: Financials Capital and Liquidity Management
Financials Capital and Liquidity Management Leverage Facility Maturity (as at 31 Dec 2022) • Improving to 2.7x supported by increased EBITDA • Targeting 2.5x in the next 12 - 18 months • Reduce working capital without compromising opportunity 1,575 Working capital • WesTrac targeting material workin
Slide 29: Group Outlook Guidance and Priorities
Group Outlook Guidance and Priorities Upgrading guidance on 1H results and positive 2H outlook WesTrac - Strong customer activity and delivery pipeline support guidance of “mid-teen per cent FY23 EBIT growth” Coates - Infrastructure activity and continued high TU supports guidance of “high-teen per
Slide 30: Disclaimer
Disclaimer Basis of preparation of slides Included in this presentation is data prepared by the management of Seven Group Holdings Limited (“SGH”) and other associated entities and investments. This data is included for information purposes only and has not been subject to the same level of review b
Slide 31: Appendix Businesses and Markets
Appendix Businesses and Markets Industrials Industrials Industrials Energy Media 100% 100% 73% Beach 30% SGHE 100% 39% WesTrac is one of the largest Coates is Australia’s largest Boral is Australia’s largest Beach Energy is a leading mid- Seven West Media is a leading CAT® dealers globally (by sales
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