Srg Global Limited · ASX:SRG
Srg Global — Shareholder Meeting (November 2016)
30 slides from Srg Global's shareholder meeting presentation, Nov 24, 2016
Slide 1: 2016 Annual General Meeting
2016 ANNUAL GENERAL MEETING 24 NOVEMBER 2016, 9:00 AM (WST), BURSWOOD, PERTH WA 6000 GLOBAL CONSTRUCTION SERVICES LIMITED ABN 81 104 662 259
Slide 2: Board of Directors & Officers
Board of Directors & Officers • Board of Directors Peter Wade (Non-Executive Chairman) Enzo Gullotti (Group Managing Director) George Chiari (Executive Director) Sam Mangione (Non-Executive Director) • Officers Gabriel Chiappini (Company Secretary) Carlo Genovesi (Chief Financial Officer/ Joint Co S
Slide 3: Agenda
Agenda • Ordinary Business (Peter Wade) • Group Managing Director’s Presentation (Enzo Gullotti) • Other Business (Peter Wade)
Slide 4: Ordinary Business
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Slide 5: Financial Statements and Reports
Financial Statements and Reports FINANCIAL STATEMENTS AND REPORTS FOR THE YEAR ENDED 30 JUNE 2016 To consider and, if thought fit, to pass the following as an ordinary resolution: “To receive and consider the Annual Financial Statements of the Company for the year ended 30 June 2016 including the Di
Slide 6: Resolution 1: Adopt Remuneration Report
RESOLUTION 1 NON-BINDING RESOLUTION TO ADOPT REMUNERATION REPORT To consider and, if thought fit, to pass the following as an ordinary resolution: “That the Remuneration Report as set out in the Annual Report for the year ended 30 June 2016 be adopted.”
Slide 7: Resolution 1 continued: proxy results
RESOLUTION 1 continued NON-BINDING RESOLUTION TO ADOPT REMUNERATION REPORT The following proxies have been received: Vote Type Voted % % all Securities For 67,314,651 98.24 33.61 Against 835,494 1.22 0.42 Open-Usable 371,466 0.54 0.19 Board 363,591 0.53 0.18 Non-Board 7,875 0.01 0.00 Open-Cond 0 0.0
Slide 8: Resolution 2: Re-election of Mr George Chiari
RESOLUTION 2 RE-ELECTION OF MR GEORGE CHIARI To consider and, if thought fit, to pass the following as an ordinary resolution: “That Mr George Chiari, being a director of the Company who, accordance with article 6.3 of the Company’s Constitution, retires by rotation and, being eligible, offers himse
Slide 9: Resolution 2 continued: proxy results
RESOLUTION 2 continued RE-ELECTION OF MR GEORGE CHIARI The following proxies have been received: Vote Type Voted % % all Securities For 52,974,529 65.89 26.45 Against 27,020,605 33.61 13.49 Open-Usable 399,241 0.50 0.20 Board 391,366 0.49 0.20 Non-Board 7,875 0.01 0.00 Open-Cond 0 0.00 0.00 Open Unu
Slide 10: Resolution 3: Approval of 10% Placement Facility
RESOLUTION 3 APPROVAL OF 10% PLACEMENT FACILITY To consider and, if thought fit, to pass the following as an special resolution: “That, pursuant to and in accordance with Listing Rule 7.1A and for all other purposes, Shareholders approve the issue of Equity Securities up to 10% of the issued capital
Slide 11: Resolution 3 continued: proxy results
RESOLUTION 3 continued APPROVAL OF 10% PLACEMENT FACILITY The following proxies have been received: Vote Type Voted % % all Securities For 46,662,311 58.06 23.30 Against 33,291,892 41.42 16.62 Open-Usable 419,241 0.52 0.21 Board 411,366 0.51 0.21 Non-Board 7,875 0.01 0.00 Open-Cond 0 0.00 0.00 Open
Slide 12: Resolution 4: Grant of Rights to Managing Director
RESOLUTION 4 GRANT OF RIGHTS TO THE MANAGING DIRECTOR To consider and, if thought fit, to pass the following as an ordinary resolution: “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval be given for the grant of 2,000,000 performance rights to the Managing Direct
Slide 13: Resolution 4 continued: proxy results
RESOLUTION 4 continued GRANT OF RIGHTS TO THE MANAGING DIRECTOR The following proxies have been received: Vote Type Voted % % all Securities For 45,762,282 60.81 22.85 Against 29,096,853 38.67 14.53 Open-Usable 392,016 0.52 0.20 Board 384,141 0.51 0.19 Non-Board 7,875 0.01 0.00 Open-Cond 0 0.00 0.00
Slide 14: Resolution 5: Non-Executive Directors' Remuneration Pool Increase
RESOLUTION 5 APPROVAL OF NON-EXECUTIVE DIRECTORS' REMUNERATION POOL INCREASE To consider and, if thought fit, to pass the following as an ordinary resolution: “That, for the purposes of Article 6.5 of the Company’s Constitution, ASX Listing Rule 10.17 and for all other purposes, the maximum aggregat
Slide 15: Resolution 5 continued: proxy results
RESOLUTION 5 continued APPROVAL OF NON-EXECUTIVE DIRECTORS' REMUNERATION POOL INCREASE The following proxies have been received: Vote Type Voted % % all Securities For 22,992,514 33.14 11.48 Against 46,000,580 66.30 22.97 Open-Usable 386,466 0.56 0.19 Board 378,591 0.55 0.19 Non-Board 7,875 0.01 0.0
Slide 16: Group MD's Presentation
Group MD’s Presentation
Slide 17: FY16 Group Highlights
FY16 Group Highlights Financial • Delivered strong underlying financial performance in FY16 • Revenue $184.5m, up 22.6% on FY15 • Underlying NPAT of $12.0m, up 37.5% on FY15 • Net loss of $76.9m includes one off non cash impairment charges of $88.9m • Strong cash flow from operations (before tax) of
Slide 18: FY16 Group Highlights continued
FY16 Group Highlights continued Capital Management • Strong balance sheet with net debt/equity of 10% • Maintained disciplined execution of capital management strategy • Refinanced debt facilities • Final dividend declared of 1.0 cent per share fully franked Strategic Priorities • Actively exploring
Slide 19: Financial Results
Financial Results Full Year Financial Results 2016 Revenue ($m) EBITDA ($m) EBIT ($m) Underlying NPAT ($m) 184.5 23% 8% 18% 38% 160.1 150.5 Up 29.1 30.3 Up 19.8 Up 12.0 Up 27.9 17.1 16.2 9.5 8.7 FY16 FY16 FY16 FY16 $ 184.5m $ 30.3m $ 19.8m $ 12.0m FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY
Slide 20: Customer Sectors
Customer Sectors Our strong market presence and customised solutions makes us a leading supplier to the Commercial, Residential, Resource, Industrial, Oil & Gas sectors. COMMERCIAL RESOURCE, INDUSTRIAL, OIL & GAS RESIDENTIAL KEY CLIENTS
Slide 21: Commercial Sector
Commercial Sector Segment Size (by Revenue Share) • General improvement in equipment utilisation being experienced • Current major contracts are progressing well. Work continues as scheduled on Perth Children’s Hospital, Crown Hotel, New Perth Stadium, and Capital Square. FY16 • Project pipeline rem
Slide 22: Resource, Industrial, Oil & Gas
Resource, Industrial, Oil & Gas Segment Size (by Revenue Share) • A solid performance with increased revenue and profitability despite challenging and competitive market conditions • Current major scaffolding contracts are advancing well - includes Woodside’s north-west shelf project (onshore and of
Slide 23: Residential Sector
Residential Sector Segment Size (by Revenue Share) • Revenue/EBITDA off peak levels and reverted back to more normal levels • Cautiously positive, with residential building activity anticipated to remain broadly steady for the remainder of this calendar year FY16 • Ongoing strong population growth a
Slide 24: Matters Subsequent
Matters Subsequent • Successful refinance of debt facilities • Enhances the Group’s capital structure • $40m working capital and equipment finance facility with CBA, and $22m equipment finance facility with Toyota • Lower cost of debt - circa 30% • Sale of 50% interest in Smartscaff • Acquisition of
Slide 25: SmartScaff Sale
SmartScaff Sale • Sale of 50% interest in Smartscaff for $10.5m cash • Repayment of $7.0m loan outstanding with GCS • Sale completed 28 October 2016 • GCS in ~$10m net cash (cash and cash equivalents less debt) position
Slide 26: Podium Glazing
Podium Glazing • Completed acquisition of 51% stake in Podium Glazing curtain wall and façade business in October 2016 • Premium commercial and residential projects in all capital cities in Australia • Executive management team has in excess of 35 years experience in the sector • Secured work in han
Slide 27: National Consolidation Strategy
National Consolidation Strategy Geographical Diversification • Diversify end user exposure • National business that is not reliant on any single state exposure issues • Ability to respond to changing market conditions by re-locating equipment and resources where required Enhanced Product Offering •
Slide 28: Outlook
Outlook • Strong results, balance sheet and cashflow generation to continue in FY17 • Poised to grow footprint across Australia replicating successful WA model • Fragmented industry offers consolidation opportunities on the east coast • Strategic acquisition opportunities already identified and are
Slide 29: Disclaimer
Disclaimer The information in this presentation is not an offer, nor constitutes investment advice or any recommendation to subscribe or acquire securities in Global Construction Services Limited, nor retain or sell any securities currently held. The presentation has been prepared without taking int
Slide 30: Ph: 139 GCS (139 427)
Ph: 139 GCS (139 427) www.gcs-group.com.au