Enero Group Limited · ASX:EGG
Enero — H1 FY2021 Earnings Presentation
20 slides from Enero's earnings presentation, Feb 11, 2021
Slide 1: Results for the half-year ended 31 December 2020
Enero Group Limited ABN 97 091 524 515 Level 2, 100 Harris Street Pyrmont NSW 2009 Australia t. +61 2 8213 3031 ASX ANNOUNCEMENT For personal use only Results for the half-year ended 31 December 2020 11 February 2021 Enero Group Limited (ASX: EGG) today announced its results for the half-year ended
Slide 2: CEO and Chair commentary on half-year performance
Enero Group CEO, Brent Scrimshaw said: “The Group delivered an excellent performance in the first half of the year, with all agency brands exceeding expectations despite the obvious challenging health and economic environments faced in all of For personal use only our key geographies. Our strong cli
Slide 3: CFO statement and About Enero
Brendan York said, “I am privileged to be leaving the Group in a very strong position and to have been a part of a unique story in the marketing services industry. I have thoroughly enjoyed being a trusted partner and custodian of some For personal use only outstanding agencies across Australia, UK,
Slide 4: Enero Group FY21 Half Year Results February 2021
For personal use only ENERO GROUP FY21 HALF YEAR RESULTS 11 FEBRUARY 2021
Slide 5: Half Year Highlights
FY21 HALF YEAR HIGHLIGHTS Strategic focus on Integration, Transformation & Acceleration continues to build momentum across the group. For personal use only • Net Revenue up 19.0% to $81.0m. • Higher sector exposure to technology, healthcare and • Operating EBITDA up 119.9% to $24.3m. consumer staple
Slide 6: Group Strategy
GROUP STRATEGY For personal use only OUR CREATIVELY LED. DATA SMART. TECHNOLOGY ENABLED. AMBITION An Integrated portfolio of complimentary marketing services brands around the world OUR 1. INTEGRATION 2. TRANSFORMATION 3. ACCELERATION STRATEGY DRIVE ORGANIC & ALIGN AND ESTABLISH OUR FOCUS ON DOUBLE
Slide 7: Key Financial Metrics
FY21 KEY FINANCIAL METRICS For personal use only Half year ended 31 December ($M) Key Financial Metrics 1HFY2021 1HFY2020 Variance Net Revenue 81.0 68.0 19.0% Operating EBITDA¹ 24.3 11.0 119.9% Operating EBITDA margin² 30.0% 16.2% 1380bp Net Profit after tax before significant items to equity holder
Slide 8: Key Financial Metrics: Accelerated growth in Net Revenue, Operating EBITDA and margin
FY21 KEY FINANCIAL METRICS Accelerated growth in Net Revenue, Operating EBITDA and margin For personal use only Net Revenue Operating EBITDA and margin 100,000 25,000 35.0% 30.0% 80,000 20,000 25.0% 15,000 20.0% 60,000 AUD AUD 10,000 15.0% $’000s $’000s 40,000 10.0% 5,000 5.0% 20,000 - 0.0% 31-Dec-1
Slide 9: Group Financial Performance
FY21 GROUP FINANCIAL PERFORMANCE For personal use only Half year ended 31 December ($M) • 19.0% Organic revenue growth year on year (20.4% on a Revenue and Operating EBITDA 1HFY2021 1HFY2020 Variance constant currency basis). 19.5% Organic revenue growth against 2HFY2020 showing comparable growth ac
Slide 10: Group Financial Performance: Profit and Loss Summary
FY21 GROUP FINANCIAL PERFORMANCE For personal use only Half year ended 31 December ($M) Profit and Loss Summary 1HFY2021 1HFY2020 Net Revenue 81.0 68.0 Other Revenue 1.4 0.3 Staff costs (48.7) (46.7) Operating expenses (7.1) (8.2) Right-of-use assets depreciation charge (2.3) (2.4) Operating EBITDA¹
Slide 11: Client Analysis
FY21 CLIENT ANALYSIS For personal use only Revenue diversification Revenue by industry Telecommunications Utilities & Energy Banking, Finance & 4% • Strong client diversification with mix of clients across Insurance 1% market industries and sectors and largest client Transportation, Airlines 5% repr
Slide 12: Geographical Results
FY21 GEOGRAPHICAL RESULTS For personal use only The USA region continues to deliver both geographic scale and profitable growth Half year ended 31 December ($M) – Operating Companies only Constant 1HFY2021 1HFY2020 Variance Currency Variance • International operations accounted for: - 60% of total N
Slide 13: Geographical Results: contribution from operating companies
FY21 GEOGRAPHICAL RESULTS For personal use only Geographical contribution from operating companies Net Revenue 1HFY2021 Net Revenue 1HFY2020 Australia 27% 36% 40% 45% UK and Europe USA 28% 24% Operating EBITDA 1HFY2021 Operating EBITDA 1HFY2020 27% 40% 41% 57% 16% 19% 10
Slide 14: Australia Results
FY21 AUSTRALIA RESULTS For personal use only Australia Half year ended 31 December ($M) Constant Highlights 1HFY2021 1HFY2020 Variance Currency • Strong organic growth of 6.6% year on year (17.2% up on Variance 2HFY20) as stability continues in Australian client base. Net Revenue 32.7 30.7 6.6% 6.6%
Slide 15: UK and Europe Results
FY21 UK AND EUROPE RESULTS For personal use only UK and Europe Half year ended 31 December ($M) Constant Highlights 1HFY2021 1HFY2020 Variance Currency • Investment in senior hires in FY2020, ahead of the revenue Variance curve have delivered organic revenue growth of 3.5% on a Net Revenue 19.4 19.0
Slide 16: USA Results
FY21 USA RESULTS For personal use only USA Half year ended 31 December ($M) Constant Highlights 1HFY2021 1HFY2020 Variance Currency • Material revenue improvement in USA market as well as Variance significant margin acceleration from nature of services. Net Revenue 28.9 18.3 57.2% 66.0% • Hotwire US
Slide 17: Balance Sheet & Capital Management
BALANCE SHEET & CAPITAL MANAGEMENT For personal use only Summary Balance Sheet As at ($M) 31 Dec 2020 30 Jun 2020 • Balance sheet retains flexibility to pursue further Cash 55.3 47.6 acquisitions enhancing geographical presence in hubs or expansion of services. Net Working Capital (13.0) (4.2) Other
Slide 18: Balance Sheet & Capital Management: Net Cash and Contingent Consideration
BALANCE SHEET & CAPITAL MANAGEMENT For personal use only Net Cash/Debt Contingent Consideration – movement during period As at ($M) ($M) 31 Dec 2020 30 Jun 2020 Contingent Cash 55.3 47.6 Consideration Contingent Consideration (10.7) (25.5) Opening 1 July 2020 (at present value) 25.5 Net Cash 44.6 22
Slide 19: Cash Flow & Working Capital
CASH FLOW & WORKING CAPITAL For personal use only Half year ended 31 December ($M) 1HFY2021 1HFY2020 Operating EBITDA 24.3 11.0 • Material working capital reduction in 1HFY2021 linked with strong cash conversion and a number of large trade Right-of-use asset depreciation charge 2.3 2.4 debtor receip
Slide 20: Disclaimer
DISCLAIMER For personal use only This document has been prepared by Enero Group Limited (Enero) and comprises written materials/slides for a presentation concerning Enero. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not