Slide 1: Not for release to United States wire services or distribution in the United States
Not for release to United States wire services or distribution in the United States 1
Slide 2: Executive Summary
FY24 RESULTS PRESENTATION Executive Summary Record Financial Result Returns to Shareholders Excellent Cash Generation FY24 EBITDA1 of EPS(A)1 of Net Cash of $17.8m FY24 Results $ 98.5m Up 23% on FY23 7.7cpsUp 15% on FY23 Up from Net Debt of $17.0m EBIT(A)1 of $65.6m up 31% on FY23 FY24 DPS of 4.5c,
Slide 3: FY24 Results Overview
WEST WIND FARM, MERIDIAN ENERGY, WELLINGTON, NEW ZEALAND FY24 Results Overview FY24 RESULTS PRESENTATION 3
Slide 4: FY24 Financial Performance Key Highlights
FY24 RESULTS FY24 Financial Performance Key Highlights FY23 FY24 Change Revenue $809.0m $1,069.3m ▲ 32% EBITDA $80.1m $98.5m ▲ 23% EBIT(A) $50.0m $65.6m ▲ 31% NPAT(A) $31.8m $40.3m ▲ 26% Record EBITDA % margin 9.9% 9.2% - 0.7% Financial EBIT(A) % margin 6.2% 6.1% - 0.1% Result NPAT(A) % margin 3.9%
Slide 5: FY24 Financial Performance Key Highlights
FY24 RESULTS FY24 Financial Performance Key Highlights 5 00 EPS(A) Revenue 8.0 7.7 7.0 6.7 (AUD) EBITDA cents per share 6.0 23% 32% 5.0 5.0 100 YoY YOY 4.0 1,069m 3.3 3.0 90 $ 40% 2.0 YoY 80 1.0 70 0.0 FY21 FY22 FY23 FY24 21% $ Millions 60 YoY 50 61% EBITDA Dividend YoY 40 Cash Conversion 5.0 4.5 4.
Slide 6: Long Term Track Record of Delivery
FY24 RESULTS Long Term Track Record of Delivery FY21 FY22 FY23 FY24 Revenue $570.0m $644.2m $809.0m $1,069.3m EBITDA $47.1m $57.2m $80.1m $98.5m EBIT(A) $25.1m $34.2m $50.0m $65.6m NPAT(A) $14.9m $22.4m $31.8m $40.3m Continuing to execute SRG EBITDA % margin 8.2% 8.9% 9.9% 9.2% Global Growth EBIT(A)
Slide 7: Positive Cash Generation Funding Growth
FY24 RESULTS Positive Cash Generation Funding Growth Normal sustaining Continued strong focus on capital spend and Increased dividend working capital management growth capital to shareholders in delivering operating cashflow investment for term FY24 before interest and tax of $113.8m contracts secur
Slide 8: Robust Financial Position
FY24 RESULTS Robust Financial Position Balance Sheet ($m) $ 73.4m 192.9m FY24 Cash on hand Available liquidity: $ Cash and cash equivalents 73.4 $ 119.5m Available undrawn working capital and equipment finance facilities Trade, other receivables & contract assets 214.4 17.8m Inventories 26.0 Net cas
Slide 9: Underpinned by a Strong Foundation
FY24 RESULTS Underpinned by a Strong Foundation CHARLEYONG BRIDGE, TRANSPORT FOR NSW 9
Slide 10: Environmental, Social & Governance in Action
FY24 RESULTS Environmental, Social & Governance in Action Environmental • Sustain Life Software Platform to track emissions • Sustainability initiatives such as green concrete, local tree planting and solar powered site facilities Social • Bugarrba Aboriginal Joint Venture progressing well • Social
Slide 11: Transaction Overview ― Diona
WARRAGAMBA DAM, WATERNSW Transaction Overview ― Diona DIONA ACQUISITION 11
Slide 12: Acquisition Overview
DIONA ACQUISITION Acquisition Overview Transaction Details • SRG has entered into a binding agreement to acquire 100% of Diona Pty Ltd and its associated entities (collectively “Diona”) for $111 million on a cash-free, debt-free basis and normal level of working capital (“Acquisition”) • Implied Acq
Slide 13: Diona Overview
DIONA ACQUISITION Diona Overview 40+ years >750 96% • Established in 1980, Diona is a leading end-to-end delivery partner for Full end-to-end Skilled workforce Blue chip utility design, engineering and project execution; through long term program and self-perform capability as of June 2024 and govt.
Slide 14: Strategic Rationale
DIONA ACQUISITION Strategic Rationale Strengthens market position in water Complementary capabilities enhance High-quality management team security and energy transition breadth and strength of service offering with a proven track record • Leading professional program and asset management • Adds com
Slide 15: Highly Complementary Core Capabilities
DIONA ACQUISITION Highly Complementary Core Capabilities Diona’s core capabilities are highly complementary with SRG Global’s service offering in delivering critical infrastructure services to connect, empower and sustain major industry across Australia and New Zealand. Early Engagement Advisory ENE
Slide 16: Robust Unparalleled End-to-End Self-Perform Capability
DIONA ACQUISITION Robust Unparalleled End-to-End “Self-Perform” Capability Commercial Model Early • Technical and economic input during project planning phase including design 96% 1 Engagement constructability, project derisking, route selection, engineering solutions Advisory • Expert advice includ
Slide 17: Client Focused Approach
DIONA ACQUISITION Client Focused Approach Diona’s model integrates a low-risk collaborative approach with long-term agreements, ensuring sustainable and consistent earnings, and embedded partnerships with leading utility and government agencies. Water North Program Water North Zones Program • Govern
Slide 18: Key End Markets
DIONA ACQUISITION Key End Markets Diona delivers specialised services within two pivotal End Markets: Water Security & Rehabilitation, encompassing Water & Wastewater, and Energy Transition, including Gas, and Power & Energy. END MARKETS WATER SECURITY & REHABILITATION ENERGY TRANSITION Safeguarding
Slide 19: Market Overview
DIONA ACQUISITION Market Overview Diona is strategically positioned to benefit from long-term industry tailwinds across water security & rehabilitation as well as other sectors facing the broader energy transition. WATER INFRASTRUCTURE GAS PIPELINE INFRASTRUCTURE ELECTRICITY INFRASTRUCTURE ~$12bn An
Slide 20: Water Infrastructure Spend Highlights
DIONA ACQUISITION Water Infrastructure Spend Highlights Investment in the water infrastructure sector is expected to increase over the medium term due to population growth, climate change and water security, and increasing maintenance requirements for water infrastructure Macro Drivers of Growth Wat
Slide 21: Weather Patterns Driving Investment in Infrastructure
DIONA ACQUISITION Weather Patterns Driving Investment in Infrastructure Both government and private sector stakeholders are increasingly focused on the impact of climate change and its growing influence on how urban water is supplied, used and managed. Climate Change Trends Impacts on Water Infrastr
Slide 22: Energy and Gas Infrastructure Spend Highlights
DIONA ACQUISITION Energy and Gas Infrastructure Spend Highlights Spend in the energy and gas infrastructure sector is expected to remain strong, driven by Australia's push towards renewable energy, energy security, and the modernisation of existing networks to meet the demands of the energy transiti
Slide 23: Long-Term Investment in Energy Capacity
DIONA ACQUISITION Long-Term Investment in Energy Diona is uniquely positioned to capitalise on underlying secular tailwinds, including the ongoing reliance on renewable power, battery energy storage and transmission infrastructure. Forecast National Electricity Market (NEM) Capacity Demand for Diona
Slide 24: Pro Forma Financials
Pro Forma Financials DIONA ACQUISITION 24
Slide 25: Pro Forma FY24 Revenue & EBITDA
DIONA ACQUISITION Pro Forma FY24 Revenue & EBITDA Pro forma FY24 Revenue1 Pro forma FY24 EBITDA1 $1.28b $118m 25 Note: 1. Based on Diona’s FY24 management accounts pre synergies and cross-selling opportunities.
Slide 26: Pro Forma FY24 — Financial Metrics
DIONA ACQUISITION Pro Forma FY24 ― Financial Metrics1 EBIT(A) ($m) EBIT(A) margin (%) 28% increase 0.4% margin in earnings 84.1 expansion 6.5% 65.6 6.1% Statutory Pro forma Statutory Pro forma EPS(A) (cents) Gearing2 (Net Debt to EBITDA) ~10% accretion 8.6 7.7 0.3x Net Cash Statutory Pro forma Statu
Slide 27: Pro Forma FY24 — Business Mix
DIONA ACQUISITION Pro Forma FY24 ― Business Mix1 = Pro forma Revenue by Business Mix 38% 100% 32% 62% 68% Maintenance & Industrial Services Engineering & Construction Earnings2 by Business Mix 100% 76% 24% 80% 20% Recurring Project Based Revenue 53% by Geographic Mix 100% 50% 45% 41% 6% East 5% West
Slide 28: Way Forward
WEST WIND FARM, MERIDIAN ENERGY, WELLINGTON, NEW ZEALAND Way Forward FY24 RESULTS PRESENTATION 28
Slide 29: We are a diversified infrastructure services company
WHO WE ARE WHAT WE DO OUR VISION We are a diversified We bring an The most sought-after infrastructure engineering mindset diversified infrastructure services company to deliver critical services business services for major industry 29
Slide 30: Diversified Infrastructure Services Business
Perth North Queensland Gladstone North-West Brisbane Diversified People Infrastructure Services Business 4,300 North Island 80% Annuity / Recurring Earnings Profile Industries 20+ Geographic split Newcastle Proforma Revenue 50% $1.3b East Roxby Downs Sydney Southern NSW Whyalla Market Cap ($m) 45% W
Slide 31: GLOBAL
GLOBAL DIVERSIFIED — INFRASTRUCT SERVICES coy & "CONSTRUCTION
Slide 32: Maintenance & Industrial Services (Annuity / Recurring)
Integrated asset program management, • Asset Program Management asset monitoring, inspection & testing, • Asset Monitoring & Testing asset maintenance & remediation, • Asset Maintenance & Remediation specialist drill & blast and geotech, • Specialist Drill & Blast; and Geotech engineered products an
Slide 33: Engineering & Construction (Project Based)
Specialist engineering and • Advisory Services construction of critical infrastructure • Specialist Design Services across a diverse range of growth • Early Contractor Engagement sectors including water, transport, • Civil Infrastructure defence, resources, energy, health • Specialist Engineered Fac
Slide 34: Building the Most Sought-after Diversified Infrastructure Services Business
FY24 RESULTS PRESENTATION Building the Most Sought-after Diversified Infrastructure Services Business Zero Harm / ESG industry leader and recognised employer / partner of choice Continuing to enhance our Innovation and Technology to drive sustainable growth and competitive advantage Selective st
Slide 35: Strategic Transformation Delivering Sustainable Growth
FY24 RESULTS PRESENTATION Strategic Transformation Delivering Sustainable Growth Strong Platform Exposure to FY25 EBITDA for Sustainable Diverse Sectors guidance Earnings Growth and Geographies 130 120 Work in Hand (WIH): Opportunity Pipeline: 3.0b 8.5b 110 98.5 100 $ $ 90 80 $ Millions 80 70 August
Slide 36: Positive Outlook
FY24 RESULTS PRESENTATION Positive Outlook Operating segment performance… …driving positive momentum FY25 guidance increased to ~$125m EBITDA $3.0b Work In Hand and $8.5b Opportunity Pipeline provides platform for long-term sustainable growth Positive exposure to growth sectors including water,
Slide 37: Investment Proposition
FY24 RESULTS PRESENTATION Investment Proposition End-to-end Diverse Highly asset lifecycle market sectors scalable capability / geographies business model $ Annuity Capital High yield earnings light dividend profile investment profile stock
Slide 38: Equity Raising Overview
HAISTACK IN-HOUSE SOFTWARE, SRG GLOBAL Equity Raising Overview DIONA ACQUISITION 38 Not for release to United States wire services or distribution in the United States
Slide 39: Offer Summary
DIONA ACQUISITION Offer Summary Offer size, structure • Fully underwritten institutional placement to eligible institutional investors to raise approximately $60 million (“Placement”) and underwriting • Non-underwritten share purchase plan to eligible shareholders to raise up to $6.0 million (“SPP”)
Slide 40: Acquisition Funding
DIONA ACQUISITION Acquisition Funding Sources and uses of funds • SRG Global has entered into a binding agreement to Purchase acquire 100% of Diona Pty Ltd and its associated Uses of Funds $m % consideration entities for $111 million on a cash-free, debt-free Purchase consideration 111 95.7 basis a
Slide 41: Pro Forma Capital Structure
DIONA ACQUISITION Pro Forma Capital SRG status quo1 Pro forma2 Structure Share price $ / share 0.865 0.830 Shares outstanding M 521.3 593.6 Market capitalisation $m 451.0 492.7 Cash $m 73.4 67.4 Debt (excluding lease liabilities) $m 55.6 105.6 Net debt / (cash) $m (17.8) 38.2 Enterprise value $m 433
Slide 42: Placement and SPP Timetable
DIONA ACQUISITION Placement and SPP Timetable Event Date1 Record date for participation in the SPP 7PM AEST Monday, 19 August 2024 Trading halt and announcement of Acquisition, Placement and SPP Tuesday, 20 August 2024 Placement bookbuild Tuesday, 20 August 2024 Trading halt lifted and announcement
Slide 43: Appendix A: Disclaimer
CANNING DAM, WATERCORP, WESTERN AUSTRALIA Appendix A: Disclaimer FY24 RESULTS PRESENTATION 43
Slide 44: Disclaimer
FY24 RESULTS PRESENTATION Disclaimer Important Notices and Disclaimer Appendix B of this Presentation, while steps have been taken to review that information, no representation or warranty, express or implied, is made as to its fairness, accuracy, correctness, completeness or adequacy. Not for relea
Slide 45: Disclaimer (Continued)
FY24 RESULTS PRESENTATION Disclaimer (CONTINUED) Financial information engaged solely as an independent contractor and is acting solely in contractual relationships on arm's length basis with SRG Global. The engagement of the Underwriter by SRG Global is not intended to create any agency, fiduciary
Slide 46: Appendix B: Key risks
AUCKLAND HARBOUR BRIDGE MAINTENANCE, NEW ZEALAND TRANSPORT AGENCY Appendix B: Key risks FY24 RESULTS PRESENTATION 46
Slide 47: Key risks (Continued)
DIONA ACQUISITION Key risks (CONTINUED) Overview This section discusses some of the key risks associated with any investment in SRG, which may affect the value of SRG shares. The risks set out below are not necessarily listed in order of importance and do not constitute an exhaustive list of all ris
Slide 48: Key risks (Continued)
DIONA ACQUISITION Key risks (CONTINUED) The financial capacity of, and recourse to, the seller and the warranty and indemnity insurer Warranty and indemnity insurance has been purchased by SRG for the Acquisition. If the Acquisition completes and if a warranty or other claim is made under the acquis
Slide 49: Key risks (Continued)
DIONA ACQUISITION Key risks (CONTINUED) Cost overrun Commencement of contracts by SRG and provision of services under those contracts may be delayed past the expected commencement date. In addition, SRG’s provision of services under existing contracts may also be impacted by the customer requesting
Slide 50: Key risks (Continued)
DIONA ACQUISITION Key risks (CONTINUED) Early contract termination and contract variations As is common practice in industries and sectors within which it operates, some contracts to which SRG and its subsidiaries are party may be terminable for convenience or otherwise on short notice. The contract
Slide 51: General investment risks
DIONA ACQUISITION Key risks (CONTINUED) General investment risks Investment in shares There are general risks associated with investments in equity capital such as SRG shares. The trading price of SRG shares may fluctuate with movements in equity capital markets in Australia and internationally. Thi
Slide 52: Appendix C: Summary of Placement Agreement
TRANSPOWER TOWER MAINTENANCE, NORTH ISLAND, NEW ZEALAND Appendix C: Summary of Placement Agreement FY24 RESULTS PRESENTATION 52
Slide 53: Summary of Placement Agreement
DIONA ACQUISITION Summary of Placement Agreement SRG Global has entered into an underwriting agreement with the Underwriter in respect of the Placement (Placement • ASX does not, or states that it will not, grant official quotation of all the Placement shares; Agreement). The Placement Agreement con
Slide 54: Summary of Placement Agreement (Continued)
DIONA ACQUISITION Summary of Placement Agreement (CONTINUED) • there is introduced or there is a public announcement of a proposal to introduce, into the Parliament of Australia or any State of In some cases, the ability of the Underwriter to terminate the Placement Agreement is limited to circumsta
Slide 55: Appendix D: Foreign Selling Restrictions
CANNING DAM, WATERCORP, WESTERN AUSTRALIA Appendix D: Foreign Selling Restrictions FY24 RESULTS PRESENTATION 55
Slide 56: Foreign selling restrictions
DIONA ACQUISITION Foreign selling restrictions International Offer Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a This document does not constitute an offer of new ordinary shares (“New Shares”) of the
Slide 57: Appendix E: Segment Reporting
WEST WIND FARM, MERIDIAN ENERGY, WELLINGTON, NEW ZEALAND Appendix E: Segment Reporting FY24 RESULTS PRESENTATION 57
Slide 58: Strong FY24 Segment Financial Performance
FY24 RESULTS PRESENTATION Strong FY24 Total Corporate Segment Financial Revenue Revenue Revenue Revenue Performance $1,069.3m $661.5m $407.8m (nil) EBITDA EBITDA EBITDA EBITDA Revenue 98.5m 94.2m 29.3m ($25.0m) 32 % $ $ $ EBITDA Margin of 9.2% EBITDA Margin of 14.2% EBITDA Margin of 7.2% EBITDA Marg
Slide 59: Reconciliation of Financial Information
FY24 RESULTS PRESENTATION Reconciliation FY23 FY24 of Financial Profit before Tax 35.9 50.1 Information Finance costs 4.3 7.2 Amortisation 3.3 6.8 Costs associated with one-off redundancies 0.0 1.5 Costs associated with exiting the PT businesses in Australia and the Middle East 2.0 0.0 Acquisition a
Slide 60: srgglobal.com.au
WIiRENIn HAS TO BE DONE RIGHT srgglobal.com.au GLOBAL