Sgh Limited · ASX:SGH
Sgh — Investor Presentation (May 2025)
119 slides from Sgh's investor presentation, May 21, 2025
Slide 1: SGH Investor Presentation
21 May 2025 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 SGH INVESTOR PRESENTATION SGH Ltd (“SGH”) (ASX: SGH) attaches an investor presentation to be delivered today by Mr Ryan Stokes AO, MD&CEO of SGH, together with Senior Executives from acro
Slide 2: SGH Overview & Update
SGH Overview & Update Ryan Stokes AO, SGH MD & CEO 21st May 2025
Slide 3: Leadership Team
Leadership Team Z Z Z Z Ryan Stokes AO Gitanjali Bhalla Rob Cotterill Richard Richards SGH MD&CEO – 15yrs SGH CPO – 8yrs SGH COO – 1yr SGH CFO – 11yrs Z Z Z Z Z Jarvas Croome Adrian Howard Vik Bansal Murray Vitlich Margaret Hall WesTrac CEO – 11yrs WesTrac NSW CE – 10yrs Boral CEO – 3yrs Coates CEO
Slide 4: Who We Are
Who We Are SGH Ltd (ASX:SGH) Strategic Sector Exposures: Industrials & Energy • One of Australia’s leading diversified operating groups Infrastructure & Construction: Boral and Coates • ASX100 & MSCI Global constituent, ~$20b market cap Australian Mining Production: WesTrac Market leading businesses
Slide 5: POV & “SGH Way” Operating Model
POV & “SGH Way” Operating Model Purpose, Objectives and Values “SGH Way” Operating Model SGH Overview Industrial Services Energy Media & Other Financials Closing and Outlook 4
Slide 6: Operating Model in Action – Owner’s Mindset
Operating Model in Action – Owner’s Mindset Owner's Mindset Performance Characteristics Empower Doing Simplify Leadership Efficiency w. accountability over delegating Pace Detail Clarity Risk taking It’s Personal and Action orientated on Drivers Supporting SGH Operating Pillars People Operations Ass
Slide 7: Operating Model in Action – Operating Cadence
Operating Model in Action – Operating Cadence Acronyms SGH operating cadence framework SGH Operating Cadence ADS - Average Daily Sales AGM - Annual General Meeting AR - Annual Report DAG - Dealer Advisory Group DSD - Distribution Services & Division AGM / Disciplined reporting FCGSA - Financial & Co
Slide 8: Long Duration Demand Outlook
Long Duration Demand Outlook Industrials Energy Mining Production: Infra & Construction: Transitional Energy: • Incremental capital deployed towards Industrials and Energy • Gas pivotal to energy transition, strong domestic gas demand and • Strategic existing exposure to sectors with long-term posit
Slide 9: Capital Allocation Model
Capital Allocation Model EPS Share Price Growth Appreciation Capital Allocation Industrials & Energy FCF Application Capital Structure <2.5x (ND/EBITDA) Deleverage Strong OCF Demand thematics CPI+ growth & op leverage Enhance ROE TSR > Return hurdles Outperformance Stable & growing ~100% EBITDA divi
Slide 10: Capital Allocation Model: Growth Optionality
Capital Allocation Model: Growth Optionality Growth Capex SGH Growth Optionality Organic growth opportunities Invest into Core BUs across SGH business units SGH growth optionality Yes ROC Exceeds 15% No • Diversified structure allows preferential investment where returns are highest Adjacent/inorgan
Slide 11: ‘Core’ Characteristics of Targets
‘Core’ Characteristics of Targets Criteria SGH Focus Area Sector Tailwinds Long duration demand trends to support performance & growth [Industrials & Energy] Geography Australian focus, play to core capability and local presence Company Barriers to entry via defendable asset position Privileged A
Slide 12: Capital Allocation Track Record
Capital Allocation Track Record SGH Transaction and Share Price History 60 50 WesTrac China Boral 100% Acquisition Divestment Completes acquisition of Boral Formation of SGH Energy Boral Control Acquisition Sells NE China dealership Invests in energy thesis via Acquires 72.6% of Boral acquisition of
Slide 13: Committed to Performance
Committed to Performance SGH 10-Year Financial Outperformance Operational outperformance Revenue EBIT NPAT EBIT Margin • Disciplined application of operating model driving +16% (10-yr CAGR) +19% (10-yr CAGR) +18% (10-yr CAGR) +271bps 10-yrs long-term outperformance $10,732m $1,488m $884m 13.9% • Mid
Slide 14: People & Culture
People & Culture Gitanjali Bhalla, SGH CPO 21st May 2025
Slide 15: People & Culture – Safety
People & Culture – Safety SGH safety improvement continues Safety Rolling 12mnth LTIFR 1 Rolling 12mnth TRIFR 2 • LTIFR down 35.7% TRIFR down 28.3% year on year Mar 2025 Mar 2024 Mar 2023 Mar 2025 Mar 2024 Mar 2023 • >50% improvement in key safety metrics over 3 years WesTrac 0.1 0.4 0.4 3.2
Slide 16: People & Culture – Workforce Snapshot
People & Culture – Workforce Snapshot ~4,700 ~4,700 ~1,800 ~2,200 ~500 SGH Industrials Headcount* ~13,900 Total employees ~11,200 Industrial sector employees ~19% Female representation ~90% Engagement survey participation ~350 Apprentices, 22% female Leadership Depth & Capability • 90% succession co
Slide 17: People & Culture – Powering Sustainable Growth and Value Creation
People & Culture – Powering Sustainable Growth and Value Creation SGH Operating Model - A Competitive Advantage • Strong operating cadence underpinned by measurable KPIs • Relentless focus on performance, productivity and cost discipline • Lean, agile structures enabling responsive execution High Pe
Slide 18: Operations & Sustainability
Operations & Sustainability Robert Cotterill, SGH COO 21st May 2025
Slide 19: Operating Model in Action – Operational Excellence
Operating Model in Action – Operational Excellence Operational Excellence Operational Excellence Focus Areas • Through our SGH Way, we support our operating 1 excellence in our Operations & Assets Operating Cadence • We are performance focused with disciplined and accountable execution 2 • With SGH
Slide 20: SGH Closing – FY25 Operational Priorities
SGH Closing – FY25 Operational Priorities Operating Cadence Balanced Scorecard across SGH Pillars • Key element to support the SGH operating model People • Embeds structure, consistency, and results focus • Defines expectations, tools and analysis to deliver Operations performance at all levels – wh
Slide 21: SGH Closing – FY25 Operational Priorities
SGH Closing – FY25 Operational Priorities Sales Effectiveness • Sales Effectiveness is critical to drive revenue • Focused on leveraging and enhancing: • Market and customer understanding • Participation & execution • Accountability and ownership in results • Customer experience and delivery • Sales
Slide 22: SGH Closing – FY25 Operational Priorities
SGH Closing – FY25 Operational Priorities FY25/26 Operating Focus Areas: Operational Excellence Leverage • Operating leverage is owner’s mindset in action 16% Revenue CAGR Operating Leverage • Delivered through operational efficiencies, in action continuous improvements and cost variabilisation 19%
Slide 23: SGH Closing – FY25 Operational Priorities
SGH Closing – FY25 Operational Priorities Innovation • Innovation can deliver a step change in our customer offering or business model • Our innovation culture, validation & development and execution focused on delivering optimised operations and sustaining our competitive advantages Focus Areas Opp
Slide 24: SGH Overview – Sustainability
SGH Overview – Sustainability Top 10 Material Issues for SGH Greenhouse Gas Emission Reductions Safety Diversity Employment Energy & Emissions Targeting emissions intensity reductions from FY20 base year Local Environment Materials Technology Indigenous Inclusion Local Communities Training Ambition
Slide 25: Finance
Finance Richard Richards, SGH CFO 21st May 2025
Slide 26: Finance – Capital Management Priorities
Finance – Capital Management Priorities Reinvestment Extend Funding Deleverage Boral resource Capacity life/HME fleet, Target 2.0x Flexibility to support WesTrac capacity Adjusted Net Debt future investments expansion, Coates to EBITDA ratio and build bank fleet/HVAC, Crux, support for M&A Longtom C
Slide 27: Finance – Capital Management Perspectives
Finance – Capital Management Perspectives Objective: Structure SGH’s capital base to maximise long-term stakeholder value creation Capacity & Liquidity Credit Rating Facility Size & Cost Uncommitted facilities offer $2.5bn WTH facility Facility limits of ~$6.1bn, with strong availability with
Slide 28: SGH Finance – Debt Structure
SGH Finance – Debt Structure Optimised borrowing structure SGH Funding Structure • 5x points of attachment across SGH provide diversified funding sources • No deed of cross-guarantee, no class orders • Discrete funding allows businesses to be added or divested with debt in place • Long-term debt pri
Slide 29: Finance – Diversified Funding
Finance – Diversified Funding SGH debt profile SGH Debt Profile • $6.1bn in total facilities; $4.7bn drawn; adjusted net Asian Term Loan $600m debt of $4.3bn Revolving • Debt stack comprised of 144a, USPP, ATL, bank debt $1,021m Revolving Bank debt, OEM, swaps, and script loans Diversified funding m
Slide 30: Finance - Maturity Profile and Leverage
Finance - Maturity Profile and Leverage Beneficial use of leverage SGH EBITDA and Leverage History EBITDA Adjusted Net Debt/EBITDA 4 2,500 • Deleveraged from Boral post-acquisition peak of 3.57x 3.1x 3.8x, to 2.1x at Apr-25 2,000 Adjusted ND / EBITDA (x) 3 2.3x EBITDA, ND ($m) 2.2x 2.21x 2.18x 1,500
Slide 31: Finance – OCF Generation
Finance – OCF Generation Capital Allocation in Focus Highly cash generative Industrial businesses • 10-year SGH OCF CAGR of 15% • Strong and low risk cash generation supports SGH’s ability to take on, and rapidly deleverage as needed • Diversified structure allows for preferential allocation of fund
Slide 32: Finance - Funds Utilisation
Finance - Funds Utilisation Capital Allocation in Focus SGH funds utilisation • Funds utilisation guided by SGH strategic objective of Maximising returns to stakeholders through long term sustainable value creation • ~2/3 of available funds utilised in growth applications over the past five years, d
Slide 33: SGH – Outperformance & Investability
SGH – Outperformance & Investability SGH 10-year EBIT Growth Composition Disciplined capital allocation and operations 1600 EBIT CAGR SGH ASX Industrials1 driving earnings outperformance 1400 10-year 19% 4% 1200 • SGH 10-year EBIT CAGR of 19% vs ASX200 1000 Industrials growth of 4% 800 Returns suppo
Slide 34: SGH Summary
SGH Summary Ryan Stokes AO, SGH MD & CEO 21st May 2025
Slide 35: Priorities and Focus
Priorities and Focus Execution of the “SGH Way” Operating Model • Integrated, performance-led approach delivering sustainable value creation and TSR outperformance • Disciplined capital allocation and operational focus drive execution, efficiency, and continuous improvement Operating excellence – fo
Slide 36: WesTrac
WesTrac Jarvas Croome, WesTrac CEO Adrian Howard, WesTrac NSW CE 21st May 2025
Slide 37: WesTrac – Overview
WesTrac – Overview WesTrac is a world leading Caterpillar dealer, uniquely placed to support our customers Objective: Be customer’s first choice in equipment solutions with a focus on safety, growth, and profitability Revenue and Market Safety First 29 branches across WA and Earnings Growth Dynamics
Slide 38: WesTrac – Dealer Model
WesTrac – Dealer Model Deep customer insights • Exclusive Cat dealer in WA, NSW/ACT “100 Years of innovation and leadership” • 35 years working with local customers • Caterpillar celebrating 100 years of operations in 1925 1990 2004 2025 2025 Caterpillar WesTrac WesTrac 35 years of commenced commenc
Slide 39: WesTrac – Recent Performance
WesTrac – Recent Performance Revenue and earnings growth continues • Revenue and EBIT growth delivered against low-single digit parts price reduction effective, 1 July 2024 • Revenue of $3.2b up 8% Capital sales of $1.2b up 13%, Services of $2.0b up 5% 3,155 • 2,928 352 8% 5% 334 • EBIT margin of 11
Slide 40: WesTrac – EBIT and Margin History
WesTrac – EBIT and Margin History WesTrac EBIT and Margin History by Half 400 Earnings EBIT Margin 14.0% 350 12.0% 300 10.0% 250 EBIT Margin (%) 8.0% EBIT ($m) 200 6.0% 150 4.0% 100 2.0% 50 0 0.0% H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21
Slide 41: WesTrac – Key Markets Mining Production
WesTrac – Key Markets Mining Production Resilient iron ore outlook IRON ORE PRODUCTION (Mt) AUSTRALIA • WA iron ore production poised for further growth 1,200 Last Updated: Nov 2024 1,000 • WesTrac customers typically low on the cost curve 800 (cost per ton advantage) 600 Mt 400 • Committed greenfie
Slide 42: WesTrac – Key Markets Mining Production
WesTrac – Key Markets Mining Production Robust thermal coal production BLACK COAL PRODUCTION (Mt) NEW SOUTH WALES • Production outlook resilient, with strong demand for 300 Last Updated: Nov 2024 high quality NSW thermal coal 250 200 • NSW thermal coal miners typically low on the cost 150 Mt curve 1
Slide 43: WesTrac – Key Markets Infrastructure and Construction
WesTrac – Key Markets Infrastructure and Construction Infrastructure momentum and growth drivers • Next 7 years ~$1.8t infrastructure activity pipeline • 240kpa new homes needed to meet government targets • Electrical infrastructure ramp-up expected FY26 Market dynamics • Expecting stronger mix of s
Slide 44: WesTrac – Industry Leading Team
WesTrac – Industry Leading Team Attraction and Retention strategy • Sustained improvements in health and safety • Focus on skilled labour recruitment to support growth in trade and chargeable roles • Recognised leader in technical skills development including battery / electrification • Diversity an
Slide 45: WesTrac – New Machine Demand
WesTrac – New Machine Demand Mining capital sales • Key commodity production set to grow beyond 2030, driving long-term demand • Mining strip ratios drives increased haulage activity • Strong fleet investment, supported by aging fleet and committed resource projects • Growing installed base supports
Slide 46: WesTrac – Services Demand
WesTrac – Services Demand Leveraging our market-leading position • HY25 Services revenue growth of 5% • 10-year Services revenue CAGR of 11% • Opportunity remains strong • Growing installed base Pictured above: 793F Mining Truck WesTrac Services Revenue by Half ($m) 2,000 • Ageing fleet 1,500 • Expa
Slide 47: WesTrac – Active Fleet Population
WesTrac – Active Fleet Population Resources Industries (RI) Construction Industries (CI) Total active machine population ~ 9000 Total active machine population ~ 41000 LARGE TRACK LARGE MINING MEDIUM TRACK MOTOR ENGINES TYPE TRACTOR TRUCK TYPE TRACTOR GRADER ~2900 ~2800 ~10000 ~4600 ~5800 LARGE LARG
Slide 48: WesTrac – Capturing Rebuild Opportunity
WesTrac – Capturing Rebuild Opportunity Machine population trends Average Age of Installed Base - Mining (Years) • Strong population growth and average fleet age 14 12 Fleet aging drivers 10 • 2009-2014 fleet approaching rebuild / replace window 8 Years 6 • Fleet decisions linked to mine life approv
Slide 49: WesTrac – Major Rebuild
WesTrac – Major Rebuild Supports ongoing demand for parts and services NEW TRUCK • New Truck: The 793 Mining Truck is built to last, and Zero Hours be rebuilt for multiple lifecycles, whilst operating in harsh mine conditions for over 6,000 hours per year 13 TO 15 YEARS 2 TO 4 YEARS • 2 to 4 Years:
Slide 50: WesTrac – Unlocking Operating Leverage
WesTrac – Unlocking Operating Leverage Disciplined focus on Operational Excellence • Unlocking productivity through train to task, automation and supporting technologies • Ensuring right part, right place, right time Digital transformation and data intelligence • Increase workflow velocity • Optimis
Slide 51: WesTrac – Automation and Robotics
WesTrac – Automation and Robotics Redefining operational excellence to strengthen revenue • Key foundational gaps closed • Integrated Dealer Solution (IDS) with modern user interface provides • Faster workflows, enhanced customer insights • Better transparency • Palantir Foundry optimising service o
Slide 52: WesTrac – Sustainability
WesTrac – Sustainability Supporting our customers’ sustainability goals • Next Generation products provide a pathway to carbon reductions • First trial battery mining trucks now in territory • WesTrac Sustainability Badge identifies more sustainable equipment and technology options • Key role in sup
Slide 53: WesTrac – Electrification and Battery Trials
WesTrac – Electrification and Battery Trials Battery Electric Truck (BET) 793 large mining truck early learner Battery Electric Mining Truck Accelerated Development Strategy • First BET arrived September 2024 Close collaboration with customers Current Stage • Assembled, commissioned and in Collie fo
Slide 54: WesTrac – Key Focus Areas and Outlook
WesTrac – Key Focus Areas and Outlook Delivering efficient, sustainable value for all stakeholders Unlocking aftermarket opportunities Digital and automation excellence Expanding market share with disciplined financial management Scalable and efficient systems and processes Customer-centric solution
Slide 55: Boral
Boral Vik Bansal, Boral CEO 21st May 2025
Slide 56: Agenda
Agenda Our business • Scale & Scope, Integrated Network, Industry Value Drivers • Strategic Alignment – Boral Way PEMAF framework • People • Environment • Markets • Assets • Financials Property • Key Surplus Property Assets Next 12 months focus SGH Overview Industrial Services Energy Media & Other F
Slide 57: Scale & Scope
Scale & Scope Australia’s largest integrated construction materials company with a rich legacy and significant social contribution ~360 operating sites1 • A rich legacy founded in 1946 • Integrated network provides competitive advantage ~7,500 employees and contractors2 • Strategy to strengthen and
Slide 58: Integrated Network
Integrated Network Valuable upstream and downstream operations with integration being the key for value creation • ~50% of Upstream volumes supplied to downstream operations • >90% of Downstream businesses source their raw material inputs internally • Vertical integration (VI) delivers: o Secure sou
Slide 59: Industry Value Drivers
Industry Value Drivers Industry value drivers are captured and aligned with our “Good to Great” strategic plan Strategy Alignment Opportunity P E M A F • Degree of vertical integration between upstream and downstream assets within a region Integrated network • Securing positions to leverage strategi
Slide 60: Our Business – Leadership in Place
Our Business – Leadership in Place A diverse CEO-1 team with deep sectorial and industrial experience CEO & Managing Director Vik Bansal EGM North EGM NSW EGM South EGM Cement EGM Asphalt Head of Property & EGM MARKETS & Chief FINANCIAL EGM ASSETS & EGM General Counsel & Concrete & Concrete & Concre
Slide 61: Strategic Alignment - Boral Way
Strategic Alignment - Boral Way Our Boral Way strategy is based on the PEMAF (People, Environment, Markets, Assets, Financials) pillars with a strong alignment and execution focus • We are progressively implementing our “Good to Great” Boral Way – “our strategy on a page” (G2G) strategic plan. • “Ou
Slide 62: PEMAF Framework
PEMAF Framework PEMAF framework supports standardisation and simplification, and shapes our strategic priorities People Environment • Our Purpose & Values • Decarbonisation • Workforce health, safety • Environmental & wellbeing stewardship • Leadership & development • Circular economy • Operating Mo
Slide 63: People
People A relentless focus on safety, leadership and culture • Safety performance is improving, however Zero Harm Boral Safety performance remains our key goal. Total recordable injury frequency rate (TRIFR) • Our organisational culture improvements will be contributing to our safety performance. • H
Slide 64: Environment – Roadmap Execution
Environment – Roadmap Execution We have a clear roadmap to drive the key carbon emission programs and meet customer demands ‘Environment’ overall progress • Renewable energy: solar Power Purchase Agreement • Alternative fuel program: solid waste derived fuel replacement Progress 0% 25% 50% 75% 100%
Slide 65: Markets – Volume and Price
Markets – Volume and Price Volumes reflect changes in market segmentation whilst price realisation remains strong Boral revenue by segment Boral external volume trends % % change 1H25 vs 1H24 FY22 – 1H25 (% of total) -3% +3% 0% -8% -4% Other Alterations & Additions cubic metres Multi-residential ton
Slide 66: Markets – Long-run Concrete Demand
Markets – Long-run Concrete Demand Long Run Concrete volumes in Australia have grown at a rate of 2.4% p.a. from 1977 to 2024 Long run premixed concrete demand 000s cubic metres AUSTRALIA QLD 1977 to 2024, growth 2.4% p.a. 1987 to 2024, growth 2.4% p.a. Australia population growth ~1.4% p.a. NSW VIC
Slide 67: Markets – Customer ‘Call-to-Cash’
Markets – Customer ‘Call-to-Cash’ Implementing significant improvements to our customer journey Concrete Grade of Service (GOS) Jan 2022 to Dec 2024 Customer (% of total calls) Single view of customer, consolidated view of interactions, all touchpoints Relationship • Improved customer onboarding and
Slide 68: Markets – Go-to-Market
Markets – Go-to-Market Building commercial rigour with a focus on capabilities and key metrics • A more sophisticated approach in our go-to-market is optimising Constant focus on the key go-to-market metrics segmentation and margin capture. Concrete Price, Shape & Service Fee Recovery Sales Activity
Slide 69: Assets – Vertically Integrated Network
Assets – Vertically Integrated Network Upgrading and extending upstream and downstream positions to maintain leadership positions Cement Quarries Geelong VIC cement facility operational Dunmore NSW hard rock reserves acquisition Tarong QLD fly ash facility operational Hillview VIC sand acquisition B
Slide 70: Assets – Strategic Acquisitions
Assets – Strategic Acquisitions Completing strategic acquisitions to improve and build long term network positions Sand Supplies VIC Culcairn NSW Purga QLD Booyal QLD • Sand quarry business acquired for • Hard rock quarry land acquisition • Hard rock quarry adjacent land • Hard rock quarry business
Slide 71: Assets – Strategic Solutions Gold Coast QLD
Assets – Strategic Solutions Gold Coast QLD We have a solution to the growth challenge facing the Gold Coast with two critical infrastructure projects at Boral’s Reedy Creek and West Burleigh sites • West Burleigh supplying up to 1.2mt of quarry materials to the Gold Coast with medium-term rock rese
Slide 72: Assets – ‘SCROA’
Assets – ‘SCROA’ Launching an overarching approach to Asset Management as part of our Boral Way “SCROA” – improving safety, compliance and performance, reducing costs per unit Safe – ensure critical asset risks are managed and aligned with our Lifesaving Rules. Compliant – ensure our assets are oper
Slide 73: Assets – Network Logistics
Assets – Network Logistics Integrating our business through optimal network logistics that link upstream and downstream assets • We are improving the effectiveness and efficiency in the Cement storage closer to customer Logistics Availability Opportunities linkage between our upstream and downstream
Slide 74: Financials – Summary
Financials – Summary Strong FY22 to FY24 performance across key financial measures continued in 1H25 Revenue ($m) EBITDA1 ($m) EBIT1 ($m) ▲10%* ▲34%* ▲82%* ROIC2 (%) EBITDA Margin1 (%) EBIT Margin1 (%) ▲1,120bps* ▲550bps* ▲660bps* * = xx% and xxx bps for the full year CAGR for the period FY22 to FY2
Slide 75: Financials – Performance History
Financials – Performance History EBIT performance at long term highs xx% = p.a. CAGR EBIT continuing operations including Property, FY06 to FY24* for period $ Millions (1.5%) 10.4% (30.9%) 82.2% Property Continuing Operations (ex-property) * Underlying numbers for continuing operations excluding sig
Slide 76: Financials – Capital Expenditure
Financials – Capital Expenditure Disciplined capex spend being managed, 5.8% of revenue and 94% of depreciation & amortisation Capital allocation being tightly managed Capital Expenditure excluding acquisitions Capex D&A Capex/Rev % • 1H25 capex below depreciation & amortisation (D&A), supporting im
Slide 77: Property – Key Surplus Property Assets
Property – Key Surplus Property Assets Several property sites either contracted or well progressed through stages of development Deer Park logistics precinct Total Property area Description / status (hectares) Development agreement in place with Mirvac – residential Donnybrook, VIC 338 rezoning comp
Slide 78: Next 12 Months Focus
Next 12 Months Focus Our focus for the next 12 months to deliver our “Good to Great” strategy • Maintain our relentless focus on safety, leadership and culture. • Continue margin growth through price realisation and cost initiatives to combat inflationary impacts. • Increase the variablisation of ou
Slide 79: Coates
Coates Murray Vitlich, Coates CEO 21st May 2025
Slide 80: Coates - Refreshed Vision Underpinned by Team25 Results
Coates - Refreshed Vision Underpinned by Team25 Results Strong financial and operational performance Revenue growth of 9.8% over the past 5 years through Team25 EBIT growth of 44.0% since 2020 ROCE of 17.2% as at December 2024 up from 11.6% in 2020 Launching Coates’s new five-year strategy Gro
Slide 81: Coates - Business At a Glance
Coates - Business At a Glance Years of experience with past 140 70 years focused on rental Our vision is to be the first-choice 145 145 Branches nationwide with 24/7 industry leading field enhancing CX equipment solutions partner Equipment models across 135 7,500 equipment types Available assets acr
Slide 82: Coates - Embedded Network Across Australia
Coates - Embedded Network Across Australia Market Position Coates Branch Network #1 in infrastructure hire market - Australia’s Largest product range and offering - 2x our nearest competitor National Coverage and Capacity 145 + branches across metro and regional areas 1 31 Hub & spoke enabling more
Slide 83: Coates - Our Performance
Coates - Our Performance Resilient customer activity FY19 - H1 FY25 Financial Performance • FY25 H1 Revenue of $546m, down 4.9%, in varying $1,400 20% regional market conditions, and adjusted for the sale 17.8% 17.2% 18% 16.8% of Coates Indonesia. $1,200 16% 14.3% • Customer activity remains resilie
Slide 84: Coates - Achievements in FY25
Coates - Achievements in FY25 Growth Safety, People and Differentiated Competitive Leading Equipment Culture Customer Operating Model Solutions Experience Increased year on year Improved safety Transport Agile management in Fleet distribution EBITDA(%) of 46.8%; performance of TRIFR improv
Slide 85: Coates – Key Themes and Trends Shaping the Market
Coates – Key Themes and Trends Shaping the Market • Coates has demonstrated growth through the Team25 strategy, successfully Robust Changing Growth in adapting to market engineering renewables Ongoing iron Australian ore and conditions. economic construction and energy investment profile transmissio
Slide 86: Coates - Market Trends and Total Construction Activity
Coates - Market Trends and Total Construction Activity Economic backdrop Australian Infrastructure and Construction Investment Outlook • The Australian economy has softened, though demand drivers remain strong 350,000 Key growth drivers 300,000 • 7-year project pipeline of +$1.7tn • Utilities constr
Slide 87: Coates - Market Share
Coates - Market Share Coates Estimated Market Share and Addressable Market 3.50 29.20% 30.0% • Coates market share has grown to 25.7% in FY24 in line with our target; 3.00 25.0% compared with 25.5% in FY23. Addressable Rental Market ($b) 2.50 20.10% Coates Market Share (%) 20.0% 16.50% • Growth has
Slide 88: Coates - International and Local Benchmarks
Coates - International and Local Benchmarks Coates continues to be the market leader in Australia • Leading market position with market share of 25.7% • Margins being delivered by major international players highlight further upside potential for Coates • Continued focus on driving operating leverag
Slide 89: Coates - Margin Improvement
Coates - Margin Improvement Track record of earnings growth through margin Coates EBIT & EBITDA margin History expansion and operating cost disciplines 350 50% • EBIT CAGR of 15.9% from FY16 through to FY24 300 45% 40% • Utilising scale capacity in network to support longer 250 term growth while red
Slide 90: Coates - Operational Disciplines
Coates - Operational Disciplines Historical Price Trends June 2016 - March 2025 Continued margin improvement through … 130% • Consistent, disciplined price management 120% 110% • Relentless focus on reducing revenue leakage 100% • Enhanced network productivity from Project Equipped 90% (hub and spok
Slide 91: Coates - Targeted Fleet Investment
Coates - Targeted Fleet Investment Fleet investment strategy focuses on continual Total Average Age improvement 2,500 140 • Fleet investment will align mechanical assets with regional demand and support growth initiatives under 120 Grow30. 2,000 100 • In H1 FY25, the mechanical fleet maintained an a
Slide 92: Coates - Maximising our Fleet Utilisation
Coates - Maximising our Fleet Utilisation Coates Fleet Balance and TU Trend Time Utilisation (TU) is marginally below 2,500.0 70% our target range while fleet is rebalanced Fleet Balance TU 60% • Continued focus to lift and maintain TU >60%. 2,000.0 • Standardisation of processes enables optimum 50%
Slide 93: Coates - Fleet and ROCE Performance
Coates - Fleet and ROCE Performance Consistent performance has enabled smoothing Gross capital expenditure and ROCE % of capital investment and reliability of returns $300 25.0% • Long term fleet planning focuses on market demand $250 and utilisation, creating value across the network 20.0% • Sustai
Slide 94: Coates - R&M Productivity Performance
Coates - R&M Productivity Performance Continuous improvement in R&M productivity R&M cost % revenue performance 25% 2,500 • R&M spend has reduced over past 5 years, with further opportunities to improve the following areas 20% 2,000 • Fleet quality and reliability • Pre-emptive servicing to enhance
Slide 95: Coates - Operational Excellence
Coates - Operational Excellence Driving operational efficiency and sustainable growth was a core focus under Team25 and will be a strategic priority under Grow30. • Streamlining network operations and standardising processes to enable digital transformation. Enables Achieve scale by benchmarking of
Slide 96: Coates - Network Model
Coates - Network Model Coates’ strategy is focused on leveraging economies Coates Operational Network of scale and creating efficiencies to build a future- ready operating model that better serves customers. BU Area Before # Sites Hubs Spokes Closed Metro 12 9 4 4 1 • Adoption of the globally recogn
Slide 97: Coates - Launching New 5-year Strategy: ‘Grow30’
Coates - Launching New 5-year Strategy: ‘Grow30’ Vision Be the first-choice industry leading equipment solutions partner The Growth strategy sets a new vision and purpose centred around being the first choice equipment solutions Purpose Supporting Australian Industry with leading equipment solutions
Slide 98: Coates - Industry and Region Focused Growth
Coates - Industry and Region Focused Growth Coates’ Grow30 growth strategy focuses on leveraging key industry opportunities to drive revenue expansion across targeted markets and customers. Engineering Civil engineering Government Defence • Strong demand in transport • Increased Australian governmen
Slide 99: Coates - Expansion of Solution Offering
Coates - Expansion of Solution Offering Solutions have delivered growth of 18.9% revenue growth through Team25 … elevating our focus into key growth markets and customers to unlock further revenue opportunities Engineering solutions PHVAC solutions Industrial solutions Portable building solutions Tr
Slide 100: Coates - Market Leading Customer Experience
Coates - Market Leading Customer Experience As part of the Grow30 strategy, key initiatives have been outlined to enhance customer experience and drive operational excellence across all customer segments. Enhanced digital customer experience across all customer tiers Organisation wide sales and cust
Slide 101: Coates - Enhanced Focused on Sales Effectiveness
Coates - Enhanced Focused on Sales Effectiveness The Grow30 go-to-market strategy targets new markets and customer segments, focusing on sales process optimisation, specialist capabilities, accountability, and alignment to drive regional growth Sales Alignment and Focus Sales Accountability Speciali
Slide 102: Coates - Closing Messages
Coates - Closing Messages Disciplined execution of our Grow30 strategy Growth Enablers Revenue and Margin Disciplines Revenue expansion supported by: • Focus on revenue growth and continuous improvement in operations. • Increased customer share of wallet; • Driving higher margins through cost discip
Slide 103: Beach Energy
Beach Energy Brett Woods, Beach Energy Managing Director & CEO 21st May 2025
Slide 104: Becoming Australia’s Leading Domestic Energy Company
Becoming Australia’s Leading Domestic Energy Company Three strategic pillars to drive shareholder returns CORE HUBS HIGH MARGINS SUSTAINABLE GROWTH Eastern Australia and Owner’s mindset Pivot to long-life, resilient assets Western Australia Low-cost operations Climate Transition Action Plan Grow sha
Slide 105: Privileged Infrastructure and Acreage
Privileged Infrastructure and Acreage Increasing supply of gas to critical East and West Coast markets SGH Overview Industrial Services Energy Media & Other Financials Closing and Outlook 104
Slide 106: Strategic Review Objectives
Strategic Review Objectives Significant progress made over the past 12 months Strategic Review Objectives Last 12-month Progress • New asset-based organisational structure New organisational structure implemented Organisational Executive leadership team appointed • Fit-for-purpose, high performa
Slide 107: H1 FY25 Headline Results
H1 FY25 Headline Results Transformation to low-cost operator underway $ million (unless otherwise indicated) H1 FY24 H1 FY25 Change H1 FY25 sales revenue: $990 million Production (MMboe) 8.9 10.2 15% Sales volumes (MMboe) 11.0 12.3 12% East Coast gas Sales revenue 941 990 5% (oil-linked prices) West
Slide 108: Successful Completion of Major Projects
Successful Completion of Major Projects Delivering new gas and reducing emissions Otway Basin drilling and development program Moomba Carbon Capture and Storage project Nameplate capacity (~4.6 Kt/d) Otway Gas Plant production 159 148 149 CO2 injection (kt/d, gross) 130 (TJ/d, gross) 99 82 57 Q1 Q2
Slide 109: Waitsia Stage 2 to Unlock Perth Basin Potential
Waitsia Stage 2 to Unlock Perth Basin Potential Fuel gas introduced to the Waitsia Gas Plant; targeting first sales gas by mid-CY2025 Prime acreage with exploration, appraisal and development potential 465 PJ 2P gas reserves (~80 MMboe, net) 69 PJ 2C gas resources (~12 MMboe, net) Fuel gas introduce
Slide 110: Disciplined Focus to Progress Strategic Objectives
Disciplined Focus to Progress Strategic Objectives Active work programs across core East and West Coast acreage Waitsia Stage 2 Equinox rig campaign Oil development and exploration (Perth Basin) (Offshore Victoria) (Western Flank) • 250 TJ/day gas processing plant • Otway Basin exploration and devel
Slide 111: Beach Energy Value Proposition
Beach Energy Value Proposition Clearly articulated strategy to drive shareholder returns Supplying key East and West Coast gas markets Strong financial position and resilient low-cost operations Increasing free cash flows for growth and dividends Multiple growth options within existing por
Slide 112: SGH Energy
SGH Energy Ryan Stokes AO, SGH MD & CEO 21st May 2025
Slide 113: SGH Energy
SGH Energy Crux gas field (15.5%) • Backfill LNG for Prelude, Browse basin, offshore WA • Joint venture with Shell (operator, 84.5%) • Project consists of: • Five production wells • Not normally manned platform in ~165m water • 160km export pipeline to Prelude FLNG facility Prelude FLNG Facility, Br
Slide 114: SGH Energy
SGH Energy Forecast Gas Supply (from 2P) and East Coast Demand (PJ) Longtom gas field (100%) Source: Rystad Energy 2,500 • Offshore developed gas, Gippsland basin Victoria 2,000 1,500 • ~87PJ resources independently verified in 2024 1,000 500 • Connected to existing pipeline and processing 0 2025 20
Slide 115: Media
Media Ryan Stokes AO, SGH MD & CEO 21st May 2025
Slide 116: Media
Media Seven West Media (40%) Seven West Media Strategy Update Solid progress on strategy under new structure • Total TV market leader with 1H FY25 revenue share of 41.5%, a record for a non-Olympic broadcaster Build a Drive our own Redefine better digital What’s Next? • 7plus audiences growing acros
Slide 117: Closing and Q&A
Closing and Q&A Ryan Stokes AO, SGH MD & CEO 21st May 2025
Slide 118: Closing and Outlook
Closing and Outlook FY25/26 Priorities • Operating excellence - focus on cadence, sales execution, operating leverage, and innovation to support performance and deliver customer outcomes • WesTrac - support customers through execution of the strong aftermarket and rebuild pipeline • Boral - continue
Slide 119: Q&A Session
Q&A Session All Executives 21st May 2025