Emeco Holdings Limited · ASX:EHL
Emeco — Investor Presentation (December 2023)
8 slides from Emeco's investor presentation, Dec 20, 2023
Slide 1: Sale of underground contracting to Macmahon and focus on underground rental
Emeco Holdings Limited Sale of underground contracting to Macmahon and focus on underground rental as the platform for growth in hard-rock commodities 19 December 2023
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified
Slide 3: Transaction Summary
TRANSACTION SUMMARY Sale of underground contracting to Macmahon and focus on underground rental as the platform for growth in hard-rock commodities • Emeco to exit underground contracting via the transfer of certain Pit N Portal customer contracts, operational employees and non-mining fleet assets t
Slide 4: Key Transaction Terms
KEY TRANSACTION TERMS Macmahon will assume PNP mining contracts and Emeco will focus on underground rental. Emeco will become Macmahon’s preferred surface and underground equipment rental provider Exit from underground contracting Preferred rental agreement • Emeco will transfer to Macmahon the cust
Slide 5: Rationale for Exiting Contracting and Focusing on Underground Rental
RATIONALE FOR EXITING CONTRACTING AND FOCUSING ON UNDERGROUND RENTAL Exit from contracting • Exit of Pit N Portal contracting and will operate as “Emeco Underground”, focused on our core capabilities of asset and creation of management, equipment rebuilds and rental solutions to drive growth in the
Slide 6: Emeco's Competitive Advantage
EMECO’S COMPETITIVE ADVANTAGE By focusing on our core competency of equipment rental and maintenance, we will continue to provide a clear cost and quality advantage to customers Rental Workshops Brands Open cut Underground Australia’s largest provider of open cut rental Australia’s largest undergrou
Slide 7: Improved Returns and Margins
IMPROVED RETURNS AND MARGINS The exit from contracting will reduce revenue, however Emeco will substantially retain earnings via a focus on underground rental, providing a platform for sustainable growth in hard-rock commodities Indicative Emeco Underground P&L impact • Transaction involves the exit
Slide 8: Emeco Investment Highlights
EMECO INVESTMENT HIGHLIGHTS 1 2 3 Australia’s largest Scale and asset mining equipment rental Focused on delivering management expertise provider with national strong returns and free provide cost and quality footprint cash flow generation advantage 4 5 6 Positive equipment Diversified by customer,
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