Emeco Holdings Limited · ASX:EHL
Emeco — H1 2025 Earnings Presentation
29 slides from Emeco's earnings presentation, Feb 19, 2025
Slide 1: Emeco Holdings Limited HY25 Results
Emeco Holdings Limited HY25 Results 19 February 2025 1 EMECOGROUP.COM
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified
Slide 3: Agenda and Presenters
AGENDA BUSINESS HIGHLIGHTS 4-6 OPERATIONAL OVERVIEW 7 - 10 FINANCIAL RESULTS 11 - 15 STRATEGY & SUSTAINABILITY 16 - 20 2H25 PRIORITIES & OUTLOOK 21 - 23 PRESENTERS Ian Testrow Managing Director & CEO Theresa Mlikota Chief Financial Officer EMECOGROUP.COM 3
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS EMECOGROUP.COM 4
Slide 5: HY25 Business Highlights
HY25 BUSINESS HIGHLIGHTS Robust earnings growth, strong margin growth and cash generation - resilient business model Operating NPAT1 Revenue2 Financial Emeco delivered another solid half of earnings growth 15% 11% — Strong revenue growth (excl. underground contract mining), up 11% HY25 $38M HY25 $
Slide 6: Performance History – Half on Half
PERFORMANCE HISTORY – HALF ON HALF 1H25 delivered improved returns and cash flow and stronger balance sheet Revenue ($m) 1 Operating EBITDA ($m) 2 Operating EBIT ($m) 2 Operating NPAT ($m) 2 383 387 64 65 68 39 355 348 143 146 61 35 38 309 137 137 33 115 40 20 1H23 2H23 1H24 2H24 1H25 1H23 2H23 1H24
Slide 7: Operational Overview
OPERATIONAL OVERVIEW EMECOGROUP.COM 7
Slide 8: Safety
SAFETY Safety remains our key priority 3.2 CLIENT BENEFITS: 2.8 2.8 2.1 1.9 0.3 0.0 0.0 0.0 0.0 FY21 FY22 FY23 FY24 HY25 TRIFR LTIFR Emeco remains committed to improving safety performance Total Recordable Injury Frequency Rate remains stable at 2.8 FY25 HSET Strategic Plan Priorities include:
Slide 9: Rental Highlights
RENTAL HIGHLIGHTS Rental remains the driving force behind Emeco’s earnings and cash flow growth Revenue1 Operating EBIT2 Operating EBITDA2 REVENUE 13% OBJECTIVE 1 EBIT EBITDA 17% 10% 1H25 $300M 1H25 $86M 1H25 $159M 1H24 $266M 1H24 $73M 1H24 $144M Australia’s largest provider of mining rental equipme
Slide 10: Force Highlights
FORCE HIGHLIGHTS Our Force workshop and field service capabilities are our competitive advantage – delivering cost and capital-efficient maintenance and rebuilt equipment for our customers and our rental business External Revenue Operating EBIT1 Operating EBITDA1 5% $1.4M $0.8M 1H25 $87M 1H25 $4.3M
Slide 11: Financial Results
FINANCIAL RESULTS EMECOGROUP.COM 11
Slide 12: Operating Profit and Loss
OPERATING PROFIT AND LOSS Emeco delivered robust earnings growth. Cost-out and close operational management of R&M drove margin growth and cash generation Revenue OBJECTIVE 1Highlights EBIT EBITDA $m 1H24 2H24 FY24 1H25 Unless otherwise stated Commentary External revenue (excluding Resilient busin
Slide 13: Cash Flow
CASH FLOW 22% increase in operating free cash flow v pcp. Cash conversion of 94% 1H25 Cash Flow ($m) Revenue OBJECTIVE 1 EBIT EBITDA Overview 145.8 Strong cash conversion of 94% ( 9.7 ) Operating Free Cash Flow of $49 million, 22% higher than ( 12.6 ) pcp Net sustaining capex of ~$75 million,
Slide 14: Balance Sheet
BALANCE SHEET Balance sheet strength continues to improve with leverage now at 0.84x 30 June 31 December Overview $m OBJECTIVEEBIT1 EBITDA Revenue 2024 2024 Balance sheet strength continues to improve. Net leverage1 improved to Plant & equipment 783.7 807.2 0.84x, with net debt reduction of $38M R
Slide 15: Debt Maturity Profile and Liquidity
DEBT MATURITY PROFILE AND LIQUIDITY Committed and undrawn facilities provide flexibility Drawn debt maturity at 31 December 2024 $m 30 June 31 December Revenue OBJECTIVE 1 EBIT EBITDA 2024 2024 AMTN AUD Notes1 250.0 250.0 $ million 300 Term facilities – RCF2 (excludes bank guarantee facilities) 95.0
Slide 16: Strategy and Sustainability
STRATEGY AND SUSTAINABILITY EMECOGROUP.COM 16
Slide 17: Our Scale and Competitive Advantage
OUR SCALE AND COMPETITIVE ADVANTAGE Our mid-life rebuild model and onsite service capability, combined with our asset management and condition monitoring technologies are our competitive advantage. Delivered through our national footprint of workshops and field service units, Emeco provides industry
Slide 18: Emeco's Strategy
EMECO’S STRATEGY Emeco’s strategic pillars ensure a sustainable and resilient business and the creation of long-term value for shareholders OBJECTIVE 1 EBIT EBITDA Be Australia’s lowest 01 02 03 cost, highest quality, Maintain a balanced Exercise disciplined technology- driven and diversified capita
Slide 19: Targeting 20% ROC and Improved Cash Generation
TARGETING 20% ROC AND IMPROVED CASH GENERATION Good progress on our journey to deliver 20% ROC target Return on Capital1 drivers % 20% Free Cash Flow $million (before growth capex)2 16% FY25 140 FY25/FY26 ~100 HY25 FY24 Growth Procurement Overhead R&M Labour Cost Equipment Fleet Target ROC HY25 FCF
Slide 20: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE Our focus continues to ensure that our business model drives creative solutions for our customers, in a safe and thriving environment for our employees, whilst supporting the communities in which we operate and delivering sustainable returns for our shareholders.
Slide 21: 2H25 Priorities and Outlook
2H25 PRIORITIES AND OUTLOOK EMECOGROUP.COM 21
Slide 22: 2H25 Priorities & Outlook
2H25 PRIORITIES & OUTLOOK Business Priorities 2H25 Outlook Core Business Guidance Continued focus on disciplined capital expenditure and cost Reiterate previous Operating EBITDA target of $300M for FY25. However, QLD floods and WA cyclone efficiencies to drive returns and cash flow activity may
Slide 23: Emeco Investment Highlights
EMECO INVESTEMENT HIGHLIGHTS 1 2 3 Australia’s largest mining Focused on delivering strong Scale and asset management equipment rental provider with returns and free cash flow expertise provide cost and national footprint generation quality advantage 4 5 6 Diversified by customer, project Strong bal
Slide 24: Appendix: Additional Information
APPENDIX: ADDITIONAL INFORMATION EMECOGROUP.COM 24
Slide 25: Revenue Analysis
REVENUE ANALYSIS Revenue by commodity Revenue by geography Revenue by type Revenue by customer – Top 10 1H25 1H25 1H25 1H25 Customer 1 WA Customer 2 Gold Rental Surface 15% Customer 3 5% 5% 22% 4% Customer 4 12% 22% 25% Met Coal QLD Customer 5 18% Iron Ore 15% Customer 6 3% Rental Underground 3% 4%
Slide 26: Reconciliations Statutory to Non-IFRS Disclosure
RECONCILIATIONS STATUTORY TO NON-IFRS DISCLOSURE EMECOGROUP.COM 26
Slide 27: Reconciliations – Statutory to Non-IFRS Disclosure
RECONCILIATIONS – STATUTORY TO NON-IFRS DISCLOSURE 1H24 1H25 Statutory to operating reconciliation Statutory to operating reconciliation $m NPAT Revenue EBIT EBITDA OBJECTIVE $m 1 EBIT EBITDA Revenue NPAT EBIT EBITDA Statutory 19.4 41.0 133.3 Statutory 33.6 61.5 139.3 Tangible asset impairment (exit
Slide 28: Reconciliations – Statutory to Non-IFRS Disclosure
RECONCILIATIONS – STATUTORY TO NON-IFRS DISCLOSURE Cash flow reconciliation Net debt and leverage reconciliations $m HY24 HY25 30 June 31 December $m OBJECTIVE 1 2024 2024 Operating EBITDA Revenue 137.1 145.8 EBIT EBITDA Revenue AMTN AUD secured notes 250.0 250.0 Working capital (6.7) (9.7) Revolvin
Slide 29: Thank You
Thank You Investor enquiries: Theresa Mlikota Chief Financial Officer Investor.relations@emecogroup.com emecogroup.com EMECOGROUP.COM