Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — Shareholder Meeting (November 2022)
47 slides from Environmental's shareholder meeting presentation, Nov 24, 2022
Slide 1: 2022 AGM Chairman and CEO Address and Presentation
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 24 November 2022 Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 2022 Annual General Meeting – Chairman and CEO Address and Presentation The Environmental Group Limited
Slide 2: About EGL
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 About EGL EGL has five business units, all committed to the protection of the environment by improving air quality, reducing carbon emissions, enhancing waste treatment, and lifting water quality. • Tota
Slide 3: Chairman's Address
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 Chairman’s Address I would like to commence by expressing the Board’s appreciation to The Environmental Group Limited Executive, Management and Operational teams for their continued dedication, commitmen
Slide 4: Chairman's Address (continued): commercial achievements
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 The Environmental Group Limited has enjoyed significant commercial achievements across the year commencing with facilitating the first contract win under the Turmec Agency Agreement, securing an Australi
Slide 5: Chairman's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 pipelines remain strong across each business unit supporting increased optimism in FY23 results. The Environmental Group Limited is expertly placed to assist clients across each of the areas of waste, wa
Slide 6: CEO's Address
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 CEO’s Address I would like to welcome you to The Environmental Group’s AGM, pleasingly face-to- face for the first time in several years - it is nice to see some familiar people in the audience. I would
Slide 7: CEO's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 affected by freight costs however this appears to be normalising again. TES maintains a record order book of approximately $12M, auguring well for a strong year ahead. We also welcomed Ignite Services (I
Slide 8: CEO's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 Management focus on process improvement achieved 33% margin uplift in FY22 as compared with FY21. Margin focus is now on logistics and procurement, with business processes in place. All tenders have a ca
Slide 9: First commercial PFAS plant
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 The first PFAS Plant for commercial sale has been fabricated on time and on budget by Ignite. Design and engineering was completed by EGL engineering to protect our intellectual property. As we speak tod
Slide 10: Annual General Meeting November 2022
Annual General Meeting 24 November 2022
Slide 11: Chairman's Welcome
Chairman’s Welcome 01 The Envronmentl Group Unite
Slide 12: Acknowledgment of Country
Acknowledgment of We respectfully acknowledge the Country Wurundjeri People of the Kulin Nation, who are the Traditional Custodians of the land on which we are located today, and pay our respects to their Elders past, present and emerging. 3
Slide 13: Agenda
Agenda 01 Chairman’s Welcome 02 Acknowledgement of Country 03 Chairman’s Report 04 CEO’s Report 05 Notice of Meeting and Proxies 06 Financial Statements and Reports 07 Resolutions 4
Slide 14: Chairman's Report
Vee a ——— ———— — a 93. Chairman's Report
Slide 15: FY22 Financial Results
FY22 Financial Results $57.1M $4.4M $7.2M $4.5M 22.6% EBITDA up Increase in Capital raise Increase in 34.3% before net assets Revenue on significant FY21 items *Significant items, FX Losses $270k, Performance Rights $245K, Acquisition Expenses $92k, Other $58. 6 Presentation should be read in conjun
Slide 16: FY22 Key Achievements
FY22 KEY ACHIEVEMENTS $49Milion contract under the Turmec Agency Agreement Acquisition of Ignite Services TAPC secures supply contract for Yangibana Rare Earths Project $17.8M Delivery of the first commercial plant for EGL Water PFAS Technology 7
Slide 17: Our Mission
Our Mission To enable our clients to contribute to a cleaner environment by safely delivering pivotal solutions while generating value for our shareholders, staff, and partner industries. EGL | The EGL strategic statement encompasses six key focus areas which together quide the Group's work These as
Slide 18: Forward Outlook
Forward Outlook Global focus on Structure and processes in Upgrade to earnings environmental impacts, place to support sustainable forecast for FY23 climate change and the need growth to move to a circular EBITDA anticipated to grow economy provides growing 35% year on year, after opportunities for
Slide 19: Thank you
Thank you I would like to thank The Board for their council and flexibility, supporting the executive and I over the last 12 months and to you, our shareholders, for your interest in and support of The Environmental Group Limited. 10
Slide 20: EGL – CEO AGM Presentation
EGL – CEO AGM Presentation Jason Dixon – November 22 Presentation should be read in conjunction with Annual Report 30 June 2022
Slide 21: 12
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Slide 22: FY22 Financial Results – underlying
FY22 Financial Results – underlying* $57.1M $4.4M $3.0M 22.6% Increase in EBITDA up 34.3% EBIT up 52.1% before Revenue on FY21 before significant significant items on items on FY21 FY21 $7.2M $4.5M $1.8M Increase in net Capital raise Cash on hand assets *Underlying profits excludes FX Losses $270K,
Slide 23: Management Team
ip Fy Foon Management Team 14
Slide 24: Executive Management
Executive Management CEO – Jason Dixon. 10 CFO – Andrew Bush. National Sales & National Quality & years executive 25 years experience in Marketing Manager - Paul Operations Manager – experience at Tox Free Industrial services and Gaskett. 14 years Brenda Borghouts. 20 Solutions Limited Contracting i
Slide 25: Senior Management
Senior Management Peter Rankin – 30 Aldo Giachero – 15 Charles Borg – 30 Stirling Schunemann Kiril Nikitin –17 years years experience in years experience in years experience in – 14 years experience engineering experience the boiler and emissions control the Gas Turbine with EGL sales, in heavy indu
Slide 26: Operating Units
Operating Units 7 The Enwrenmentl Group Umit
Slide 27: EGL operating units
Total Air Pollution Control (TAPC) provides highly efficient 1 state-of-the-art industrial air pollution control technologies EGL Waste encapsulates our service offering to the that prevent harmful gases, particulate matter, and odours waste industry; world class recycling plants, dust from being re
Slide 28: EGL Energy
TOMLINSON IGNITE EGL Energy
Slide 29: EGL Energy (Tomlinson & Ignite) service offering
EGL Energy (Tomlinson & Ignite) offers a network of service offices across Australia providing 24/7 service, maintenance and repairs of both proprietary equipment and other OEM equipment. Key offering • Sale and Installation of cost-effective boilers with a design focusing on maximum reliability, lo
Slide 30: AGM update: EGL Energy
AGM update • Ignite continues to perform ahead of expectation’s and has integrated into the business seamlessly. • After a period of slower capital spend through Covid, record boiler sales were achieved changing the business mix of sales to service ratio. New boiler sales are at a lower gross margin
Slide 31: Total Air Pollution Control
02 Total Air Pollution Control 22
Slide 32: TAPC flue gas treatment systems
TAPC designs, manufactures and services flue gas treatment systems which prevent harmful contaminants being discharged into the atmosphere. Key offering • Scrubbers including dry and wet for the removal of particulates and gaseous contaminants. • Electrostatic Precipitators & Bag filters for particu
Slide 33: AGM update: TAPC
AGM update • Revenue growth has continued with contract wins in the lithium and rare earth sector. • FLSmidth Lithium refinery gas off take system due for delivery in the next quarter. • Orders have been placed for the large componentry of the Hastings gas off take system in line with budget expecta
Slide 34: Baltec Inlet and Exhaust Systems
03 Baltec Inlet and Exhaust Systems 25
Slide 35: Baltec IES gas turbine support
Baltec IES supports the gas turbine industry in its role in assisting the transition from coal-powered to renewable energy production. Engineering products and custom designs specifically to meet clients’ requirements. Key offering • Turbine performance enhancement for lower emissions and higher out
Slide 36: AGM update: Baltec IES
AGM update • Management focus on processes achieved 33% margin improvement on FY21. • Margin focus is now on logistics and procurement, with business processes in place. • Project teams are now able to attend most client's sites improving project delivery. • All tenders have a cashflow an risk revie
Slide 37: EGL Waste
04 EGL Waste 28
Slide 38: EGL Waste division
EGL Waste division includes many of EGL’s waste industry service lines. • Turmec’s world class recycling plants under the exclusive Australian agency. • Dust extraction and asbestos detection systems in waste processing facilities. • Boilers & autoclaves in the medical waste treatment sector. • Comb
Slide 39: AGM update: EGL Waste
AGM update • Opportunity to provide an extensive range of services and products to the waste sector as it moves to engineered treatment- based solutions. • Rino Resources construction and demolition waste recycling facility installation is due to commence in January 23. • Leveraging Rino Resources p
Slide 40: EGL Water
west, EGL Water
Slide 41: EGL Water PFAS removal technology
EGL Water division has enhanced patented technology designed to protect our environment by the removal of Per- and polyfluoroalkyl chemical substances (PFAS) from contaminated water. • PFAS was primarily used in aircraft fire fighting as a fire retardant however its use expanded into plastics and cl
Slide 42: First commercial PFAS plant update
AGM update • Design and engineering was completed by EGL engineering to protect our intellectual property. • The first commercial plant fabrication was completed on time and on budget by Ignite Services in September. • The plant has been installed at a liquid waste facility in Melbourne with EPA app
Slide 43: Outlook
04 Outlook 34
Slide 44: Outlook
Outlook 01 02 03 04 Performance across the Guidance upgraded to EGL Water – PFAS plant Continue to develop the “One business has been strong and greater than 35% EBITDA installed with EGL” culture to sell multiple has exceeded initial growth year on year, after commissioning underway. services lines
Slide 45: EGL outlook continued
EGL outlook continued • Performance across the business has been strong and has exceeded initial expectations. • At this stage we now expect EBITDA to increase by over 35% year on year after significant items*. • Order books remain supportive of strong results. • Management's focus will remain on ma
Slide 46: Questions?
Questions? 37
Slide 47: Head Office and Disclaimer
HEAD OFFICE Level 1, Suite 1 10 Ferntree Place Disclaimer Notting Hill Victoria 3168 EGL advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside Phone: 03 9763 6711 of EGL’s control. No representation is made as to the accur
The Environmental Group — Shareholder Meeting (November 2022) on 6ix