Srg Global Limited · ASX:SRG
Srg Global — Shareholder Meeting (October 2020)
29 slides from Srg Global's shareholder meeting presentation, Oct 8, 2020
Slide 1: 2020 Annual General Meeting
For personal use only 2020 ANNUAL GENERAL MEETING 8 October 2020 David Macgeorge, Managing Director 1
Slide 2: About Us
ABOUT US For personal use only WHO WE ARE We’re an engineering-led specialist asset services, mining services and construction group OUR OPERATING MODEL End-to-end solutions across the entire asset lifecycle OUR VISION The most sought-after specialist asset services, mining services and construction
Slide 3: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY SUBSTANTIAL HOLDERS For personal use only Shares on Issue 445.8m Perennial Value Investment 12.1% Share Price(1) $0.315 Mitsubishi UFG Financial Group, Inc 9.7% Market Capitalisation(1) $140m Wentworth Williamson 5.1% Net Assets $221m Board and Management 12.5% Note: (1)
Slide 4: Our Year in Review
For personal use only OUR YEAR IN REVIEW 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY Revenue in FY20 of $545m and Underlying EBITDA1 of $20.5m For personal use only Results impacted by key COVID-19 drivers: – Deferral of non-essential maintenance in Australia and NZ – Productivity / commercial challenges in the Building division – Credit Loss (Bad Debts) provis
Slide 6: Our People Are Our Foundation
OUR PEOPLE ARE OUR FOUNDATION GLOBAL WORKFORCE HIGHLY SKILLED WORKFORCE For personal use only 22% 24% 27% 1,800 1,800 EMPLOYEES EMPLOYEES 78% 76% Australia International Tech. / Eng. / Mgmt. Operational ZERO HARM ZERO HARM ZERO HARM LEADERSHIP INTERACTIONS IMPROVEMENT 22% Improvement 90% 50% SAFETY
Slide 7: Executing Our Strategy
EXECUTING OUR STRATEGY “Continuing to transition the business mix towards For personal use only annuity earnings” LEADERSHIP (3 YEARS +) GROWTH (1 - 2 YEARS) Zero Harm industry leader and recognised Step change growth in recurring employer of choice Asset Services Key partner of choice in our spec
Slide 8: Strong Platform for Growth
STRONG PLATFORM FOR GROWTH WORK IN HAND OPPORTUNITY PIPELINE For personal use only 33% 40% $707m 44% 45% 30 JUNE 2020 45% $6.2b 30 JUNE 2020 23% 15% Asset Services Mining Services Construction 8
Slide 9: Continuing the Momentum
CONTINUING THE MOMENTUM “$385M OF CONTRACT WINS ANNOUNCED SINCE 1 JULY” For personal use only 9
Slide 10: Outlook
OUTLOOK Work in Hand of $707m at 30 June and an Opportunity Pipeline of $6.2b For personal use only $385m of contract wins announced since 1 July 2020 Further imminent / near-term contract wins expected Asset Services to continue step change growth in FY21 Mining Services operating in high
Slide 11: FY20 Financial Overview
For personal use only FY20 FINANCIAL OVERVIEW 11
Slide 12: FY20 Financial Performance
FY20 FINANCIAL PERFORMANCE REVENUE ($m) FY20 For personal use only Reported Revenue 520.0 Joint Venture revenue related to the Ocean Reef / Wanneroo Rd Interchange and Bolivia Hill projects. ADD ADJUSTMENT ITEMS 50% of JV revenue 25.2 Total Adjustment Items 25.2 One-off, non-cash impairment of goodw
Slide 13: Generating Strong Operating Cash in 2H
GENERATING STRONG OPERATING CASH IN 2H For personal use only Significant investment in working capital in 1H FY20 (South32, OneSteel Normal sustaining capital spend and Whyalla, Facades contracts, Specialist growth capital investment for five-year, Civil contracts) delivered strong $70m contract sec
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION BALANCE SHEET ($m) For personal use only Strong available liquidity of $72.6m, comprised FY20 of cash on hand of $28.1m and available Cash and cash equivalents A 28.1 undrawn finance facilities of $44.5m Trade, other receivables & contract assets 124.2 Inventories 15.6 New
Slide 15: Operating Segments
For personal use only SEGMENTS OPERATING 15
Slide 16: Operating Segments
For personal use only OPERATING SEGMENTS 16
Slide 17: Asset Services Overview
ASSET SERVICES OVERVIEW For personal use only KEY CLIENTS 17
Slide 18: Asset Services Update
ASSET SERVICES UPDATE For personal use only Highest growth and earnings segment in the Alcoa Kwinana Group A number of contract wins ‒ 5-year multi-disciplinary contract with Alcoa ‒ 8-year maintenance contract with NZTA for Auckland Harbour Bridge ‒ 5-year maintenance contract with Methanex ‒ 2
Slide 19: Mining Services Overview
MINING SERVICES OVERVIEW For personal use only KEY CLIENTS 19
Slide 20: Mining Services Update
MINING SERVICES UPDATE For personal use only A very strong FY20 financial performance Excellent asset utilisation of the fleet (>90%) Continued capital investment in fleet for growth and sustaining capital Early and proactive measures implemented to ensure continuity of operational delivery
Slide 21: Construction Overview
CONSTRUCTION OVERVIEW For personal use only KEY CLIENTS 18% 21
Slide 22: Construction Update
CONSTRUCTION UPDATE For personal use only Civil and Engineering Fairbairn Dam Strong performance in Australia despite COVID-19 Strong pipeline of Government opportunities Imminent / near term contract wins expected International operations impacted by COVID-19 Scaled back operations in the
Slide 23: Our Strategic Direction
For personal use only OUR STRATEGIC DIRECTION 23
Slide 24: Strategic Horizons
STRATEGIC HORIZONS Building the most sought-after specialist asset services, For personal use only mining services and construction business LEADERSHIP (3 YEARS +) GROWTH (1 - 2 YEARS) Zero Harm industry leader and recognised Step change growth in recurring employer of choice Asset Services Key pa
Slide 25: Continued Transition to Annuity Earnings
CONTINUED TRANSITION TO ANNUITY EARNINGS For personal use only 15+ 15+ TERM CONTRACTS TERM CONTRACTS (DEC 19) 1HFY20 ` 20+ TERM CONTRACTS (CURRENT) 25
Slide 26: Winning Contracts in Diverse Sectors
WINNING CONTRACTS IN DIVERSE SECTORS For personal use only TERM CONTRACTS 26
Slide 27: Opportunity to Leverage Our Site Presence
OPPORTUNITY TO LEVERAGE OUR SITE PRESENCE For personal use only 20+ TERM CONTRACTS 27
Slide 28: Investment Proposition
For personal use only INVESTMENT PROPOSITION Complete Diverse Annuity business model market sector earnings (end-to-end) exposure profile Strong Attractive Dividend growth valuation paying outlook multiples stock 28
Slide 29: Solving challenges wherever they are
For personal use only Solving challenges wherever they are srgglobal.com.au 29