Perenti Limited · ASX:PRN
Perenti — Perenti Global — FY2020 Earnings Presentation
33 slides from Perenti's earnings presentation, Aug 24, 2020
Slide 1: FY20 Full-year results
For personal use only FY20 Full-year results 24 August 2020 Perenti Global Limited ABN 95 009 211 474
Slide 2: Our global business
Our global business For personal use only OPERATING IN 11 Countries 4 Continents YEARS OF EXPERIENCE 30+ Domestic Current operations and offices 25+ International Surface Underground Investments GLOBAL PROJECTS Mining Mining 55+ 2 FY20 FULL-YEAR RESULTS
Slide 3: What we stand for
What we stand for For personal use only Our Purpose Our Principles Our Aspiration To create enduring value No shortcuts To become the indispensable and certainty Never wasteful mining services company Smarter together Walk in their shoes Enable tomorrow 3 FY20 FULL-YEAR RESULTS
Slide 4: FY20 in review
FY20 in review For personal use only REVENUE EBITDA EBIT(A) NPAT(A) $2.04B $444M $212M $110M up 4% on the back of new projects, up 7% due to exceptional operational reduced by 2.5% due to increased reduced by 14% due to EBIT reduction, partially offset by contract cessations performance in challengi
Slide 5: Our safety performance
Our safety performance For personal use only TRAGIC EVENTS TOTAL RECORDABLE INJURY FREQUENCY SERIOUS POTENTIAL INCIDENT RATE (TRIFR) FREQUENCY RATE (SPIFR) ▪ Terrorist attack near Boungou in Burkina Faso 4.9 Up from 4.5 at end of FY19 4.1 Down from 6.0 at end of FY19 ▪ Fatality at UMA JV ALL INJURY
Slide 6: Our people
Our people For personal use only A resilient and committed workforce ~7,700 INVESTING IN OUR PEOPLE ▪ Barminco, recognised for its focus on upskilling employees, was named Australia’s ‘Large Employer of the Year’ at Employees the 2019 Australian Training Awards WORKFORCE SNAPSHOT ▪ Senior leadership
Slide 7: Navigating COVID-19
Navigating COVID-19 EXECUTIVE RESPONSE For personal use only Executive taskforce established and systems and protocols set up to ensure health and safety of our people PEOPLE Resilience and dedication of our people in working extended in- country rosters. No COVID-19 related redundancies CUSTOMERS P
Slide 8: Creating enduring value through sustainability
Creating enduring value through sustainability For personal use only GOVERNANCE Published inaugural Sustainability Report and defined FY21 commitments DIVERSITY Improved gender diversity with female participation of 29% at Board and 16% at Senior Leadership levels ENVIRONMENT Disclosed our greenhous
Slide 9: Business Performance
For personal use only Business Performance 9 FY20 FULL-YEAR RESULTS
Slide 10: Group performance
Group performance $2,045M $444M $212M 16.6% For personal use only REVENUE ($M) EBITDA ($M) EBIT(A) ($M) ROACE x,xxx x,xxx Revenue BY ISG BY COUNTRY BY COMMODITY BY PROJECT FY18 and FY19 figures are proforma figures which include 100% of Barminco and AUMS for a full 12 months and exclude amortisation
Slide 11: Surface performance
Surface performance For personal use only ▪ Revenue reduction in FY20 driven by cessation of Edikan, Nsuta, Boungou and Bissa in first half, $606M $25M 4.2% offset by new contract revenues from Tarkwa, REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN Damang and Sanbrado ▪ Second half EBIT up on first half d
Slide 12: AMS transformation ongoing
AMS transformation ongoing For personal use only KEY FOCUS Driving enhanced AMS earnings, cash conversion and efficient capital management ACHIEVEMENTS CONTINUED FOCUS New leadership team appointed to focus on New leadership team to build on operational and operational and financial discipline to dr
Slide 13: Underground performance
Underground performance For personal use only ▪ Continued strong performance in Underground with revenue up 20% and EBIT(A) margins slightly $1,300M $196M 15.1% down due to ramp up of new work and COVID 19 REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN impacts in Q4 ▪ Revenue growth delivered by ramp up o
Slide 14: Investments performance
Investments performance For personal use only ▪ Robust revenue and EBIT(A) performance throughout the Investments ISG $138M $25M 18.2% REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN ▪ BTP review concluded. Refocus to the future growth of the BTP business as part of the Investments ISG ▪ Well Control Solut
Slide 15: Financials
For personal use only Financials 15 FY20 FULL-YEAR RESULTS
Slide 16: Underlying profit and loss
Underlying profit and loss For personal use only $M FY19 FY20 Change ▪ Revenue in excess of $2B representing a record result Revenue 1,969.8 2,044.6 3.8% for the business – 68% from gold related mining projects EBITDA 415.7 443.8 6.8% ▪ EBITDA approaching $450M, growth of 6.8% over the EBITDA margin
Slide 17: Cash conversion
Cash conversion For personal use only $M FY19 FY20 ▪ Continued focus on quality and cash backed earnings Underlying EBITDA 345.5 443.8 has delivered operating cash conversion of 96%. Exceptional second half with a conversion rate of Share of profits from AUMS (10.7) - 124%, up from 68% in 1H20 Adjus
Slide 18: Statutory cash flow
Statutory cash flow For personal use only $M FY19 FY20 ▪ Strong cash flow generation before shareholder Operating cash flows before interest and tax 298.2 426.8 distribution of $134M in FY20 - cash flow yield of 16.6% Net interest expense (57.9) (52.1) ▪ FY19 cash flows only include 8 months of AUMS
Slide 19: Asset backing
Asset backing For personal use only Asset backing ($M) FY19 FY20 ▪ Significant asset backing of $1.6B, up from $1.5B in the Plant and equipment 829.4 761.0 prior period Property 58.3 57.1 ▪ Value of assets at Boungou site in Burkina Faso, Power Right of use assets - 110.7 Solutions Africa and assets
Slide 20: Group debt and funding
Group debt and funding Group debt ($M) Jun19 Dec19 Jun20 Maturity profile ($M) US$350M secured Notes For personal use only Revolving Credit Facilities - drawn US$350 million secured notes 497.4 497.9 506.3 Revolving Credit Facilities - undrawn Revolving Credit Facilities 225.1 296.5 252.0 Asset fina
Slide 21: Strategy and Outlook
For personal use only Strategy and Outlook 21 FY20 FULL-YEAR RESULTS
Slide 22: Delivering our 2025 Group Strategy
Delivering our Delivering our 2025 2025 Group Group Strategy Strategy For personal use only Operational Strategic Organisational Technology Financial Strategic Pillars Capacity Excellence Growth Health Driven Future Horizon 1: • Transform AMS • Brand and • Strengthen • Building the • Portfolio revie
Slide 23: Work in hand - $5.4B + $2B in negotiation
Work in hand - $5.4B + $2B in negotiation For personal use only Work in hand rundown ($B) ▪ $1.7B of revenue for FY21 secured by orderbook ▪ An additional $2B of contract rollovers and variations with existing clients currently under negotiation Work in hand (by ISG) Work in hand (by country) Work i
Slide 24: Grow organically – near term pipeline of $8.8B
Grow organically – near term pipeline of $8.8B For personal use only Pipeline phasing by anticipated project start date ($B) ▪ 57 opportunities in the currently identified pipeline with 26% of the potential contract value from existing clients ▪ Increase in tender activity resulting in $1.8B increas
Slide 25: FY21 priorities and outlook
FY21 priorities and outlook For personal use only FY21 priorities FY21 outlook NAVIGATE COVID-19 ROBUST ORDERBOOK AND GOLD EXPOSURE Continue to operate and fulfill client obligations in a safe manner and $1.7B of revenue secured for FY21 with 69% gold exposure. provide certainty to our people and cl
Slide 26: For personal use only
For personal use only 26 FY20 FULL-YEAR RESULTS
Slide 27: Appendices
For personal use only Appendices 27 FY20 FULL-YEAR RESULTS
Slide 28: Statutory balance sheet
Statutory balance sheet For personal use only $M Jun19 Jun20 ▪ Tangible assets of $1.9B being total assets of $2.7B Cash and cash equivalents 223.5 327.5 less intangibles and DTA of $0.8B Receivables 399.4 369.3 Inventories 251.1 250.4 ▪ Intangibles mainly comprises of goodwill ($450M) Property, pla
Slide 29: FY20 Reconciliation of statutory to underlying results
FY20 Reconciliation of statutory to underlying results For personal use only $M Revenue EBITDA EBIT NPAT Statutory Results 2,046.1 370.4 99.7 27.6 Non-cash amortisation of customer related and software - - 38.6 38.6 A intangibles Statutory Results before amortisation 2,046.1 370.4 138.2 66.1 Less no
Slide 30: FY20 One-off adjustments explained
FY20 One-off adjustments explained For personal use only Includes customer related intangibles and software amortisation expense that is recognised post Barminco acquisition date A of 31 October 2018 Recoverable value of the assets located at Boungou site in Burkina Faso, Power Solutions Africa and
Slide 31: AASB16 Lease impact
AASB16 Lease impact For personal use only Balance Sheet Profit and Loss Cash Flow Financial Metrics ▪ Effective from 1 July 2019 the company adopted Right of Use EBITDA Operating Net Debt AASB16 and recognised a ‘right to use’ asset and Assets Cash inflow liability. The balance of the ‘right of use’
Slide 32: Important notice and disclaimer
Important notice and disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Perenti Global particular person. You should consult your own advisors as to legal, tax, financial and related matters and conduct For personal use only Limited ABN 95 009 211 47
Slide 33: Thank you
For personal use only Thank you perentigroup.com