Slide 1: FY19 1H Results Presentation: Focus on execution
FY19 1H Results Presentation 20 February 2019 Focus on Investor presentation for the half-year ended execution 31 December 2018 20 February 2019
Slide 2: Group Overview
FY19 1H Results Presentation 20 February 2019 Group Overview Ryan Stokes Chief Executive Officer & Managing Director 2
Slide 3: Group Businesses
FY19 1H Results Presentation 20 February 2019 Group Businesses Industrial Services: Equipment solutions Industrial Services Energy leveraged to growth in mining production and infrastructure investment • Growing long-term demand for WesTrac parts and service to maintain an ageing installed fleet, Au
Slide 4: Group People, Safety and Culture
FY19 1H Results Presentation 20 February 2019 Group People, Safety and Culture Safety and welfare of our people continues to be a priority More than 5,600 FTE staff employed across the Group Pleasing to report improved safety performance across the Group’s businesses Safety Cultural Transforma
Slide 5: Group Highlights
FY19 1H Results Presentation 20 February 2019 Group Highlights Delivery of strategic initiatives Pivots within our industrial services and energy businesses have all delivered for the Group Strong financial results with EBIT up 68% on pcp to $375m Trading revenue of $2bn, up 45% on pcp with grow
Slide 6: Group Key Financials
FY19 1H Results Presentation 20 February 2019 Group Key Financials Underlying results ($m) – continuing operations 1H FY19 1H FY18 % Change Trading revenue 2,026.5 1,397.2 45% Earnings before interest and tax1,2 374.8 223.5 68% Underlying net profit after tax1 256.8 159.1 61% Underlying earnings per
Slide 7: Financials
FY19 1H Results Presentation 20 February 2019 Financials Six months ended 31 December 2018 7
Slide 8: Financials Profit and Loss
FY19 1H Results Presentation 20 February 2019 Financials Profit and Loss $m 1H FY19 1H FY18 Change % Trading revenue of $2bn for the half, up 45% on pcp, with growth in all businesses Revenue 2,026.5 1,397.2 45% Share of associate NPAT up 56% on pcp, Other income 30.4 35.6 (15)% driven by growth
Slide 9: Financials Significant Items
FY19 1H Results Presentation 20 February 2019 Financials Significant Items $m 1H FY19 1H FY18 Impairment – SWM equity (225.4) (91.3) Other items 28.9 89.1 Significant items – EBIT (196.5) (2.2) Tax benefit relating to Significant Items - 0.6 Significant items – NPAT (196.5) (1.6) Statutory NPAT 61.0
Slide 10: Financials Earnings Summary
FY19 1H Results Presentation 20 February 2019 Financials Earnings Summary Total Coates Allight Invest- $m WesTrac Energy Media Other Group Hire Sykes ments Trading revenue 2,026.5 1,487.8 492.6 40.8 4.0 - 1.3 - Statutory EBIT 178.3 150.1 101.9 1.0 76.6 (183.9) 15.0 17.6 Add unfavourable significant
Slide 11: Financials Cash Flow
FY19 1H Results Presentation 20 February 2019 Financials Cash Flow $m 1H FY19 1H FY18 Underlying EBIT 374.8 223.5 Add: depreciation and amortisation 89.6 44.3 Underlying EBITDA 464.4 267.8 Operating cash flow 231.9 112.8 Add: interest and other costs of finance paid 42.6 38.8 Net income taxes paid 1
Slide 12: Financials Cash Flow by Segment
FY19 1H Results Presentation 20 February 2019 Financials Cash Flow by Segment Total Coates Allight Invest- $m WesTrac Energy Media Other Group Hire Sykes ments EBITDA 464.4 164.0 175.6 1.5 78.0 41.5 15.0 (11.2) Operating cash flow pre-tax and interest 276.3 106.5 153.8 8.1 6.4 5.9 12.3 (16.7) Tax re
Slide 13: Financials Balance Sheet
FY19 1H Results Presentation 20 February 2019 Financials Balance Sheet As at As at Additional inventory investment of $81m $m Change % 31 Dec 18 30 Jun 18 mainly consisting of WesTrac parts, rebuild Trade and other receivables 497.1 585.8 (15)% components and used equipment fleet Inventories 909.8
Slide 14: Financials Capital Management
FY19 1H Results Presentation 20 February 2019 Financials Capital Management Capital structure strengthened and diversified $350m convertible notes issue has reduced the Group’s cash interest cost by capturing the margin differential of ~400 bps, diversified funding away from bank facilities and in
Slide 15: WesTrac Highlights
FY19 1H Results Presentation 20 February 2019 WesTrac Highlights Ryan Stokes Chief Executive Officer & Managing Director 15
Slide 16: Industrial Services WesTrac Highlights
FY19 1H Results Presentation 20 February 2019 Industrial Services WesTrac Highlights Mining demand supplemented by new opportunities Mining production levels continuing at or near record levels and CAT Equipment Utilisation WA NSW Total providing a solid base of support opportunity Machine populat
Slide 17: Industrial Services WesTrac Financials
FY19 1H Results Presentation 20 February 2019 Industrial Services WesTrac Financials Financial result driven by customer demand across markets Revenue up 25% on pcp driven by $183m increase in parts sales Market share increases achieved across mining, infrastructure and construction segments ̶ P
Slide 18: Coates Hire Highlights
FY19 1H Results Presentation 20 February 2019 Coates Hire Highlights 18
Slide 19: Industrial Services Coates Hire Highlights
FY19 1H Results Presentation 20 February 2019 Industrial Services Coates Hire Highlights Delivery partner for our customers Comprehensive service offering through unparalleled branch network and comprehensive fleet maintenance program Recent investments in technology, fleet management systems an
Slide 20: Industrial Services Coates Hire Financials
FY19 1H Results Presentation 20 February 2019 Industrial Services Coates Hire Financials Revenue growth delivered in a market impacted by external factors Revenue growth in all regions except QLD ̶ Average hire duration up 1.1% ̶ Improved ROA achieved through product mix ̶ Add on revenue through r
Slide 21: Energy Highlights
FY19 1H Results Presentation 20 February 2019 Energy Highlights 21
Slide 22: Energy Beach Investment
FY19 1H Results Presentation 20 February 2019 Energy Beach Investment Production and gas demand driving strong financial result 1H production of 15.2 Mmboe above expectations with high facility reliability 2H outlook revised upwards based on strong customer demand, higher Bauer oil production an
Slide 23: Energy Other Assets
FY19 1H Results Presentation 20 February 2019 Energy Other Assets Crux (SGHE 15%) has a clear pathway to market $m 1H FY19 1H FY18 Crux forms an important part of Shell Australia’s gas portfolio, Sale of gas and condensate 4.0 2.4 identified as the primary source of backfill gas supply to the Othe
Slide 24: Media and Other Investments Highlights
FY19 1H Results Presentation 20 February 2019 Media and Other Investments Highlights 24
Slide 25: Media SWM Highlights
FY19 1H Results Presentation 20 February 2019 Media SWM Highlights $m 1H FY19 1H FY18 Ratings leadership continues while AFL & Cricket delivering Share of associate NPAT - SWM 35.2 41.1 #1 network, main channel and multi-channel in 2018 Other media investments 6.3 10.8 ̶ 12th consecutive calendar
Slide 26: Financials Listed Investments
FY19 1H Results Presentation 20 February 2019 Financials Listed Investments $m 1H FY19 1H FY18 Listed portfolio represents a store of value Revenue 1.3 4.0 Listed portfolio value of $325m at 31 December 2018, providing liquidity and attractive gross dividend yield Other income 15.9 17.8 Share of a
Slide 27: Outlook
FY19 1H Results Presentation 20 February 2019 Outlook 27
Slide 28: Outlook
FY19 1H Results Presentation 20 February 2019 Outlook Business Outlook WesTrac continuing Parts volume level to remain strong while service sales will benefit from an expected increase in to benefit from maintenance activities, new machine assembly, and a rise in service rates due to the tight lab
Slide 29: Disclaimer
FY19 1H Results Presentation 20 February 2019 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 ha