Slide 1: FY20 Full Year Results
FY20 FULL YEAR RESULTS 25 AUGUST 2020
Slide 2: About Us
ABOUT US WHO WE ARE We’re an engineering-led specialist asset services, mining services and construction group OUR OPERATING MODEL End-to-end solutions across the entire asset lifecycle OUR VISION The most sought-after specialist asset services, mining services and construction business 2
Slide 3: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY SUBSTANTIAL HOLDERS Shares on Issue 445.8m Perennial Value Investment 13.3% Share Price(1) $0.30 Mitsubishi UFG Financial Group, Inc 9.7% Market Capitalisation(1) $134m Wentworth Williamson 5.1% Net Assets $221m Board and Management 12.5% Note: (1) Share price and market
Slide 4: Our Year in Review
OUR YEAR IN REVIEW 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY Revenue in FY20 of $545m and Underlying EBITDA1 of $20.5m Results impacted by key COVID-19 drivers: – Deferral of non-essential maintenance in Australia and NZ – Productivity / commercial challenges in the Building division – Credit Loss (Bad Debts) provision of $7.9m recognise
Slide 6: Our People Are Our Foundation
OUR PEOPLE ARE OUR FOUNDATION GLOBAL WORKFORCE HIGHLY SKILLED WORKFORCE 22% 24% 27% 1,800 1,800 EMPLOYEES EMPLOYEES 78% 76% Australia International Tech. / Eng. / Mgmt. Operational ZERO HARM ZERO HARM ZERO HARM LEADERSHIP INTERACTIONS IMPROVEMENT 22% Improvement 90% 50% SAFETY LEADERSHIP Increase in
Slide 7: Executing Our Strategy
EXECUTING OUR STRATEGY “Continuing to transition the business mix towards annuity earnings” LEADERSHIP (3 YEARS +) GROWTH (1 - 2 YEARS) Zero Harm industry leader and recognised Step change growth in recurring employer of choice Asset Services Key partner of choice in our specialised core Innovatio
Slide 8: Strong Platform for Growth
STRONG PLATFORM FOR GROWTH WORK IN HAND OPPORTUNITY PIPELINE 33% 40% $707m 44% 45% 30 JUNE 2020 45% $6.2b 30 JUNE 2020 23% 15% Asset Services Mining Services Construction 8
Slide 9: Continuing the Momentum
CONTINUING THE MOMENTUM “$200M OF CONTRACT WINS ANNOUNCED SINCE 1 JULY” 9
Slide 10: Outlook
OUTLOOK Work in Hand of $707m at 30 June and an Opportunity Pipeline of $6.2b $200m of contract wins announced since 1 July 2020 Further imminent / near-term contract wins expected Asset Services to continue step change growth in FY21 Mining Services operating in high demand, high quality
Slide 11: FY20 Financial Overview
FY20 FINANCIAL OVERVIEW 11
Slide 12: FY20 Financial Performance
FY20 FINANCIAL PERFORMANCE REVENUE ($m) FY20 Reported Revenue 520.0 Joint Venture revenue related to the Ocean Reef / Wanneroo Rd Interchange and Bolivia Hill projects. ADD ADJUSTMENT ITEMS 50% of JV revenue 25.2 Total Adjustment Items 25.2 One-off, non-cash impairment of goodwill related to Adjuste
Slide 13: Generating Strong Operating Cash in 2H
GENERATING STRONG OPERATING CASH IN 2H Significant investment in working capital in 1H FY20 (South32, OneSteel Normal sustaining capital spend and Whyalla, Facades contracts, Specialist growth capital investment for five-year, Civil contracts) delivered strong $70m contract secured with Saracen and
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION BALANCE SHEET ($m) Strong available liquidity of $72.6m, comprised FY20 of cash on hand of $28.1m and available Cash and cash equivalents A 28.1 undrawn finance facilities of $44.5m Trade, other receivables & contract assets 124.2 Inventories 15.6 New asset class in FY20 re
Slide 15: Operating Segments
GLOBAL Sn OPERATING SEGMENTS
Slide 16: Operating Segments
OPERATING SEGMENTS ASSET SERVICES Sustaining complex infrastructure Annuity Earnings MINING SERVICES Comprehensive ground solutions Annuity Earnings CONSTRUCTION Constructing complex infrastructure Project Based Earnings SPECIALIST MAINTENANCE Highly skilled specialist maintenance services focusing
Slide 17: Asset Services Overview
ASSET SERVICES OVERVIEW KEY CLIENTS 17
Slide 18: Asset Services Update
ASSET SERVICES UPDATE Highest growth and earnings segment in the Alcoa Kwinana Group A number of contract wins ‒ 5-year multi-disciplinary contract with Alcoa ‒ 8-year maintenance contract with NZTA for Auckland Harbour Bridge ‒ 5-year maintenance contract with Methanex ‒ 2-year maintenance cont
Slide 19: Mining Services Overview
MINING SERVICES OVERVIEW KEY CLIENTS 19
Slide 20: Mining Services Update
MINING SERVICES UPDATE A very strong FY20 financial performance Excellent asset utilisation of the fleet (>90%) Continued capital investment in fleet for growth and sustaining capital Early and proactive measures implemented to ensure continuity of operational delivery Excellent start up w
Slide 21: Construction Overview
CONSTRUCTION OVERVIEW KEY CLIENTS 18% 21
Slide 22: Construction Update
CONSTRUCTION UPDATE Civil and Engineering Fairbairn Dam Strong performance in Australia despite COVID-19 Strong pipeline of Government opportunities Imminent / near term contract wins expected International operations impacted by COVID-19 Scaled back operations in the Middle East and US
Slide 23: Our Strategic Direction
OUR STRATEGIC DIRECTION 23
Slide 24: Strategic Horizons
STRATEGIC HORIZONS Building the most sought-after specialist asset services, mining services and construction business LEADERSHIP (3 YEARS +) GROWTH (1 - 2 YEARS) Zero Harm industry leader and recognised Step change growth in recurring employer of choice Asset Services Key partner of choice in our
Slide 25: Continued Transition to Annuity Earnings
CONTINUED TRANSITION TO ANNUITY EARNINGS 15+ 15+ TERM CONTRACTS TERM CONTRACTS (DEC 19) 1HFY20 ` 20+ TERM CONTRACTS (CURRENT) 25
Slide 26: Winning Contracts in Diverse Sectors
WINNING CONTRACTS IN DIVERSE SECTORS TERM CONTRACTS 26
Slide 27: Opportunity to Leverage Our Site Presence
OPPORTUNITY TO LEVERAGE OUR SITE PRESENCE 20+ TERM CONTRACTS 27
Slide 28: Investment Proposition
INVESTMENT PROPOSITION Complete Diverse Annuity business model market sector earnings (end-to-end) exposure profile Strong Attractive Dividend growth valuation paying outlook multiples stock 28
Slide 29: Appendix
GLOBAL Sn APPENDIX
Slide 30: FY20 Segment Performance
FY20 SEGMENT PERFORMANCE SEGMENT RESULTS ($m) ASSET SERVICES MINING SERVICES CONSTRUCTION CORPORATE TOTAL FY20 Reported Revenue 151.9 71.7 296.4 - 520.0 ADJUSTMENTS: 50% of JV revenue - - 25.2 - 25.2 Adjusted Revenue 151.9 71.7 321.6 - 545.2 Reported EBITDA (including JV) 18.6 13.9 (27.1) (13.1) (7.
Slide 31: Cashflow Analysis – 1H
CASHFLOW ANALYSIS – 1H Significant investment in working capital was required to support growth in new term / recurring Australian tax group is in a tax Capital relates to investment in recurring revenue contracts and record work in hand (e.g. loss position and therefore not revenue generation asset
Slide 32: Solving Challenges Wherever They Are
Solving challenges wherever they are srgglobal.com.au 32