Perenti Limited · ASX:PRN
Perenti — Perenti Global — FY2021 Earnings Presentation
33 slides from Perenti's earnings presentation, Aug 24, 2021
Slide 1: Full Year Results 2021
FULL YEAR RESULTS For personal use only 2021 24 August 2021 Perenti Global Limited ABN 95 009 211 474 Perenti Global Limited ABN 95 009 211 474
Slide 2: Solid underlying fundamentals despite headwinds
Solid underlying fundamentals despite headwinds For personal use only REVENUE EBITDA EBIT(A) NPAT(A) $2.02B $380M $171M $77M In-line with FY20 record revenue ▼ 14% on FY20 ▼ 19% on FY20 ▼ 30% on FY20 $(15.2)M FX impact 1 OPERATING CASH CONVERSION2 NET DEBT ROACE FINAL DIVIDEND PER SHARE 105% $503M 1
Slide 3: And we continue to deliver our 2025 Strategy
And we continue to deliver our 2025 Strategy For personal use only Strategic Technology Financial Operational Excellence Organisational Health Capacity Growth Driven Future ✓ Delivery of value to ✓ Expansion into ✓ ESG priorities identified ✓ Investment in scalable ✓ Transitioned out of clients Bots
Slide 4: People & Sustainability
For personal use only People & Sustainability
Slide 5: The safety of our people is our highest priority
The safety of our people is our highest priority For personal use only TWO TRAGIC INCIDENTS FATALLY INJURED TWO TEAM MEMBERS On 18 May 2021, Daniel Nuertey-Kwao Quaynortey died following a fall of ground incident at the Obuasi Mine in Ghana On 12 July 2021, Troy Cameron was fatally injured in an und
Slide 6: Our safety journey
Our safety journey June 2020 For personal use only - Released - Health Safety and Environment (HSE) Management System and CRM - Reviewed the HSE strategy with a strengthened focus on leadership and culture December 2020 - Implemented the leader led Critical Control Field Verification program Goal: N
Slide 7: Proactively managing headwinds
Proactively managing headwinds For personal use only COVID-19 ▪ COVID-19 continues to persist globally however we continue to be proactive in our response. We are seeing improvements in productivity rates ▪ ~$16M of direct COVID-19 costs claimed in FY21 with ~$15M recovered ▪ Productivity rates at Z
Slide 8: Strengthening our commitment to ESG
Strengthening our commitment to ESG For personal use only ▪ Released our second Sustainability Report, reaffirming our commitment to a sustainable future and more stringent commitments for FY22 ▪ During FY21 we finalised a sustainability materiality assessment to better inform our ESG risk managemen
Slide 9: Business Performance
For personal use only Business Performance
Slide 10: Group performance – underlying
Group performance – underlying $2,022M $380M $171M 14.3% For personal use only REVENUE ($M) 2,137 EBITDA ($M) EBIT(A) ($M) ROACE 407 FX impact FX impact 186 15.5% FX impact FX impact 2,022 380 171 14.3% Revenue BY ISG BY COUNTRY BY COMMODITY BY PROJECT Figures are on 100% basis. All figures are unde
Slide 11: Underground performance
Underground performance For personal use only REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN Revenue BY COUNTRY BY COMMODITY $1,476M $200M $200M 13.6% 13.6% ▲ 14% on FY20 ▲ 2% on FY20 ▼ 1.5% points on FY20 Underground continues to perform well ▲ Australian underground work in hand with Productivity and ma
Slide 12: Surface performance
Surface performance For personal use only REVENUE ($M) EBIT(A) MARGIN Revenue BY COUNTRY 2H21 2H21 BY COMMODITY $410M $200M $12M 13.6% 3.0% ▼ 32% on FY20 ▼ 52% on FY20 ▼ 1.2% points on FY20 Australian surface continued to perform well 2H21 AMS earnings more than doubled vs Margins strengthened from
Slide 13: Investments performance
Investments performance For personal use only REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN Revenue BY COUNTRY 2H21: 7 1H21: 8 BY COMMODITY $126M $200M $15M 13.6% 12.1% ▼ 11% on FY20 ▼ 39% on FY20 ▼ 5.5% points on FY20 Primarily related to ▼ BTP revenue due to ▼ Primarily related to ▼ BTP revenues due to
Slide 14: Financials
For personal use only Financials
Slide 15: Underlying profit and loss
Underlying profit and loss For personal use only $M FY20 FY21 Change ▪ Achieved Group revenue of over $2.0B in line with FY20 representing a Revenue 2,044.6 2,021.8 (1.1)% solid result given external headwinds EBITDA 443.8 380.0 (14.4)% ▪ Revenue growth driven by growth across the Underground busine
Slide 16: FY21 reconciliation of underlying to statutory
FY21 reconciliation of underlying to statutory For personal use only $M Revenue EBITDA EBIT NPAT Underlying results 2,021.8 380.0 170.8 77.0 Margin (%) - 18.8% 8.4% 3.8% Add non-recurring items below Transaction and other one-off costs - (3.5) (3.5) (4.2) Net foreign exchange loss1 - (7.1) (7.1) (7.
Slide 17: Debt refinance completed during FY21
Debt refinance completed during FY21 Group debt ($M) Jun20 Dec20 Jun21 Net debt profile ($M) 20% For personal use only 700 US$350 million secured notes 506.3 - - 629.5 since Dec 19 US$450 million guaranteed senior notes - 584.9 600.0 600 556.4 540.2 503.3 Revolving credit facilities 252.0 80.0 92.5
Slide 18: Cash flow and cash conversion
Cash flow and cash conversion $M FY20 FY21 Change ▪ Excellent cash conversion of 105% from a continued focus on working For personal use only capital management Operating cash flows (before interest and tax) 426.8 398.9 ▼7% Operating cash conversion 96% 105% ▲9% ▪ Stay in business (SIB) capital incl
Slide 19: Cash flow waterfall
Cash flow waterfall ▪ Our business generated solid cash flows supporting: ▪ Investment in growth projects including our technology driven services offering, For personal use only idoba 296.3 ▪ After investing in strategic growth, held $94.3m cash to fund financing activities 85.4 233.1 ▪ Provided me
Slide 20: Perenti's assets underpins value
Perenti’s assets underpins value For personal use only ▪ PP&E: Plant and equipment roughly equally split between Australia and Africa with a minor contribution from North America Asset Backing Asset value ($m) FY19 FY20 FY21 ▪ LIBERATED CASH: as announced 13 May 2021, $88M of cash liberated followin
Slide 21: Strategy and outlook
For personal use only Strategy and outlook
Slide 22: Our 2025 Strategy
Our 2025 Strategy For personal use only STRATEGIC PILLARS OPERATIONAL STRATEGIC ORGANISATIONAL TECHNOLOGY FINANCIAL EXCELLENCE GROWTH HEALTH DRIVEN FUTURE CAPACITY Horizon 1: • Brand and • Strengthen • Building the • Deliver on safety, • Portfolio review Setting the operational and marketing focus g
Slide 23: Clear progress on our 2025 Strategy
Clear progress on our 2025 Strategy For personal use only Strategic Technology Financial Operational Excellence Organisational Health Capacity Growth Driven Future ✓ Delivery of value to ✓ Expansion into ✓ ESG priorities identified ✓ Investment in scalable ✓ Transitioned out of clients Botswana and
Slide 24: idoba – our technology driven service offering
idoba – our technology driven service offering For personal use only Our Aspiration: To become the indispensable mining services company 2019 Early 2020 Apr 2021 Our Purpose: To create enduring certainty and value Established Due diligence commenced on Second foundational Perenti Group potential M&A
Slide 25: Investing now to support our 2025 Strategy
Investing now to support our 2025 Strategy For personal use only ▪ We are globally diversified, operating in 12 countries and are successfully expanding into top tier mining jurisdictions ▪ Continued our expansion into North America ▪ Investing to creating a foundation to support and deliver sustain
Slide 26: Work in hand of $6.6B with $1.4B of extensions
Work in hand1 of $6.6B with $1.4B of extensions For personal use only Australian work in hand African work in hand North American work in hand Egypt WIH WIH WIH 48% 48% 4% Mali Senegal Burkina Faso Ghana Tanzania 18% - Botswana 14% - Ghana 9% - Burkina Faso Botswana 4% - Other ▪ Work in hand represe
Slide 27: Organic growth pipeline of $11.0B
Organic growth pipeline of $11.0B For personal use only ▪ Continued focus on top-tier mining jurisdictions and top-tier, multi-asset mining clients seeking strong financial, ESG and safety performance ▪ 71% or ~$7.8B (+46% YoY) of identified pipeline is located Australia, North America and Botswana
Slide 28: Our growth projects generating value beyond FY22
Our growth projects generating value beyond FY22 For personal use only ▪ Our business can be capital-intensive especially during phases of growth, however these assets typically generate strong returns over the longer-term ▪ , ’ , te solid returns ▪ We hold a portfolio of nearly 60 projects across v
Slide 29: Priorities and outlook
Priorities and outlook For personal use only Near term priorities Outlook OPERATIONAL EXCELLENCE: Continue to deliver operational excellence ORDERBOOK SUPPORTING FY22 REVENUE: Work in hand supports 3+ years across all projects, working to successfully ramp up growth projects of revenue at current ru
Slide 30: For personal use only
use only | For persona @) Perenti
Slide 31: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation and these materials (together the “P ”) have been prepared by Perenti Global any particular person. You should consult your own advisors as to legal, tax, financial and related matters and Limited ABN 95 009 211 474 (ASX:PRN) (“
Slide 32: Corporate overview
Corporate overview Share Price Performance (rebased) For personal use only Events 1. Perenti announces the completion of US$450M Guaranteed Senior Notes Offering 2. Perenti announced 1H21 Financial Results 3. Perenti provided an Operational Update, outlining headwinds 4. Awarded AMS's largest ever c
Slide 33: Thank you
For personal use only Thankyou Thank you perentigroup.com FY21 Full Year Results 24 August 2021