Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — Macquarie Australia Conference 2023
27 slides from Sgh's conference presentation, May 4, 2023
Slide 1: ASX cover announcement: investor presentation
4 May 2023 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 For personal use only INVESTOR PRESENTATION Please find attached an investor presentation given today by Mr Ryan Stokes AO, CEO and Managing Director of Seven Group Holdings Limited, at th
Slide 2: Seven Group Holdings Macquarie Presentation
For personal use only Seven Group Holdings Macquarie Presentation May 4th 2023
Slide 3: Who We Are: Group Overview
Who We Are Group Overview Seven Group Holdings (ASX:SVW) Industrial Services • Sole CAT dealer in WA & NSW/ACT • Leading diversified operating Group • Leading mining market share • Businesses across Industrial Services, Energy • Providing whole-of-life machine management and Media For personal use o
Slide 4: Who We Are: Purpose, Objective and Values
Who We Are Purpose, Objective and Values Owner’s Mindset Courage • Commit to achieving our long-term • Empower and trust our objectives and delivery of outcomes people to recognise • Invest in businesses where the and pursue For personal use only investment opportunity exceeds the opportunities retu
Slide 5: Who We Are: SGH Advantage
Who We Are SGH Advantage Infrastructure & Domestic Gas / LNG Mining Production Construction Activity facilitating energy transition For personal use only Leading market positions Limited fixed price Privileged assets with Actively manage inflation contract risk defendable moats 4
Slide 6: What Makes SGH Core Plus?
Who We Are What Makes SGH Core Plus? WesTrac – Core Plus Characteristics • Territories with customer activity linked to mining production • Leading: mining market share, product and technology For personal use only • Growing embedded base requiring incremental support • Product support revenue CAGR
Slide 7: Who We Are: Strategic Sector Exposures
Who We Are Strategic Sector Exposures Infrastructure and Mining Production Energy Construction For personal use only • Link to activity – Production volume • Extensive project pipeline, refreshed YoY • Gas/LNG critical transitional energy • Exposure through WesTrac • Exposure through Coates and Bora
Slide 8: Disciplined Execution and Growth
Who We Are Disciplined Execution and Growth Committed to delivery SGH Milestone Transactions & Total Return vs ASX100 600 • Consistently delivering on guidance Seven Group Holdings Boral 69.6% FY23 S&P/ASX 100 stake via Guidance For personal use only • Earnings growth, operating leverage and 500 tak
Slide 9: Group Results: 1H FY23 Key Results
Group Results 1H FY23 Key Results $4,607m 16% $842m 12% For personal use only Revenue EBITDA $595m 16% $341m 17% EBIT NPAT1 $574m 23% 94c 18% Op Cashflow EPS *Subtotals may not add due to rounding • This presentation refers to underlying results unless otherwise specified 1. Attributable to members
Slide 10: Group Results: Earnings Growth
Group Results Earnings Growth Strong 1H FY23 result 300 HY22-23 EBIT ($m) • Industrial businesses earnings up +20% 21% • Group operating cashflow up 23% 250 For personal use only • Increasing operating leverage at WesTrac, Coates and Boral, despite inflationary environment 200 Supported by sector m
Slide 11: WesTrac – Business Update
For personal use only WesTrac – Business Update FY23 Macquarie Conference Presentation 10
Slide 12: WesTrac Demand Driven Growth
WesTrac Demand Driven Growth 15-year Product Support CAGR of 9% WesTrac Revenue Split (A$m) • 1H FY23 Product Support up 13% 4,000 Growth in installed base, volumes and pricing For personal use only • 3,500 Average mining fleet age increasing 3,000 • Average age of 11.2 years, up 36% since FY15 2,50
Slide 13: WesTrac Business Update
WesTrac Business Update CAT Electrified 793 Mining Demonstration Strong first-half result • EBIT of $254m, up 21% • EBIT Margin of 11.1%, up 14bp For personal use only • Increasing operational leverage Electrification opportunity • CAT successfully demonstrated their battery electric large mining tr
Slide 14: Coates – Business Update
For personal use only Coates – Business Update FY23 Macquarie Conference Presentation 13
Slide 15: Coates Business Update
Coates Business Update Hire Revenue Split by Sector Strong operating performance Other Residential Events (1%) • Average TU of 61.7%, with some markets above 65% 9% 11% Non-Residential • Redline sub-20%, supported by R&M efficiency gains 11% For personal use only • Improving DIFOT, approaching 90% t
Slide 16: Coates Business Update & Solutions
Coates Business Update & Solutions Record first-half result Coates Solutions Offerings • Revenue and EBIT up 16% and 25%, respectively Engineering Solutions Industrial Solutions • Design and installation • Site Management • 25.9% EBIT margin, up 183bp • Structural support • Equipment and Services Fo
Slide 17: Boral – Business Update
For personal use only Boral – Business Update FY23 Macquarie Conference Presentation 16
Slide 18: Boral Performance Journey
Boral Performance Journey Unlocking Boral’s potential Boral’s Market-Leading, Integrated Network • Leverage and improve upon market-leading position For personal use only • Simplification & standardisation of pricing, systems Cement Quarries Bitumen and value chain Manufacture and import clinker, Su
Slide 19: Boral Business Update
Boral Business Update 1H FY23 result shows progress on journey Construction materials: • Revenue of $1,681m, up 12% Leading integrated network EBIT of $95m, up 23% 4,723 For personal use only • 361 1 • EBIT margin of 5.7%, up 50bp – remains too low employees2 operating sites Privileged asset positio
Slide 20: Energy – Business Update
For personal use only Energy – Business Update FY23 Macquarie Conference Presentation 19
Slide 21: Energy Business Update
Energy Business Update Beach Energy (30%) growing production Forecast Gas Supply from 2P Reserves vs Demand East Coast Australia • LNG export to commence at Waitsia from CY24 2200 • Perth basin exploration underway, drilling Trigg-1 For personal use only 2000 • Supplying 12% of East Coast gas, Otway
Slide 22: Media – Business Update
For personal use only Media – Business Update FY23 Macquarie Conference Presentation 21
Slide 23: Seven West Media Business Update
Seven West Media Business Update Successfully repositioned • Consolidated regional affiliate, establishing leading national network with 91% audience reach 91% For personal use only MONTHLY REACH ALL AUSTRALIANS • Secured key sports rights until 2031 with new digital rights from 2024/25 • Digital no
Slide 24: Group Financials: Capital Management
Group Financials Capital Management Leverage Facility Maturity (as at 31 Dec 2022) • 1H adjusted net debt to EBITDA from 2.8 to 2.7x 1,800 Targeting 2.5x in the next 12 months For personal use only • 1,575 1,600 Cash flow and working capital 1,400 • Strong cash flow from operated businesses 1,200 •
Slide 25: Closing Key Messages and Outlook
Closing Key Messages and Outlook Key Messages • SGH has delivered outperformance through For personal use only disciplined execution, active capital allocation and market leading positions in strategic growth sectors • Owner’s mindset value driving accountability, commitment and results • Industrial
Slide 26: Disclaimer
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 has not been subject to the same level of review b
Slide 27: Who We Are: Businesses and Markets
Who We Are Businesses and Markets Industrials Industrials Industrials Energy Media For personal use only 100% 100% 73% Beach 30% SGHE 100% 40% WesTrac is one of the largest Coates is Australia’s largest Boral is Australia’s largest Beach Energy is a leading mid- Seven West Media is a leading CAT® de
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