Emeco Holdings Limited · ASX:EHL
Emeco — FY2022 Earnings Presentation
25 slides from Emeco's earnings presentation, Aug 17, 2022
Slide 1: Emeco Holdings Limited FY22 Results
For personal use only Emeco Holdings Limited FY22 Results 17 August 2022
Slide 2: FY22 Group Financial Highlights
FY22 GROUP FINANCIAL HIGHLIGHTS For personal use only Revenue Operating EBITDA1 Operating EBIT1 Operating NPAT1 $754m $250m $121m $69m +22% vs. FY21 $620m +5% vs. FY21 $238m +1% vs. FY21 $119m +22% vs. FY21 $57m Growth in all operating segments – Rental 7%, Growth in all operating segments, achieved
Slide 3: Highlights: FY22 and Outlook
HIGHLIGHTS FY22 AND OUTLOOK ACHIEVEMENTS Solid Operating EBITDA of $250m, up 5% from FY21 For personal use only Overview Revenue by Commodity ▪ Safety improved, with TRIFR of 1.9 as at 30 June 2022, down from 2.1 a year Lithium Other earlier, and LTI free for 6.5 years Copper 1% 2% 3% ▪ Group EBITDA
Slide 4: Highlights and Outlook
HIGHLIGHTS AND OUTLOOK OUTLOOK Expect growth in earnings in all operating segments in FY23 from the existing asset base For personal use only Overview ▪ Expect growth in earnings in all operating segments in FY23 ▪ Rental – Operating utilisation and earnings expected to increase as operating conditi
Slide 5: Safety and Sustainability
For personal use only Safety and Sustainability
Slide 6: Safety
SAFETY TRIFR of 1.9 as at 30 June 2022, down 10% from year earlier, and LTI free for 6.5 years For personal use only Injury frequency rates Overview ▪ Total recordable injury frequency rate (TRIFR) as at 30 June 2022 was 1.9, down from 2.1 a year ago ▪ Safety of people around our equipment is paramo
Slide 7: People & Culture
PEOPLE & CULTURE People continue to be the key to our success. We focus on delivering value to our employees, customers and communities we operate in For personal use only People Community ▪ Almost 1,400 skilled workers as at 30 June 2022, up ▪ Established a Community 27% from 1,100 a year prior Eng
Slide 8: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE Emeco has developed its inaugural ESG Strategy For personal use only Overview ▪ In FY22, Emeco developed its inaugural ESG Strategy ▪ As part of this, benchmarking and stakeholder engagement was undertaken to determine current state of ESG performance at Emeco and
Slide 9: Financial Results
For personal use only Financial Results
Slide 10: Operating Profit and Loss
OPERATING PROFIT AND LOSS Solid financial performance within guidance in a challenging operating and inflationary environment For personal use only FY22 Operating Financial Performance1,2 $m unless otherwise stated FY21 1H22 2H22 FY22 Commentary 22% growth supported by all divisions, particularly Pi
Slide 11: Cash Flow
CASH FLOW Continued strong cash flow generation, supported by cash conversion at 96% For personal use only Overview FY22 Cash Flow ($m) ▪ Continued strong cash conversion at 96% ▪ Working capital investment in Pit N Portal growth and increase in parts and consumables inventory to mitigate supply cha
Slide 12: Balance Sheet
BALANCE SHEET Balance sheet is strong with conservative leverage 0.98x and good liquidity supporting growth and capital management Summary balance sheet For personal use only $m 30 June 2021 30 June 2022 Overview Plant & equipment 672 718 ▪ Maintained net leverage (0.98x) below long term-target of 1
Slide 13: Divisional Performance
For personal use only Divisional Performance
Slide 14: Rental
RENTAL Return to growth as assets deployed throughout FY22, despite inflationary pressures and operating utilisation being impacted by labour shortages, COVID absenteeism and extreme weather – upside as conditions normalise For personal use only $m unless Overview FY21 1H22 2H22 FY22 otherwise state
Slide 15: Rental – Eastern Region
RENTAL – EASTERN REGION Delivered anticipated return to growth as assets deployed in 2H, despite operating utilisation below expectation largely due to extreme weather events in 1H and 2H For personal use only Operating and financial performance highlights $m unless FY21 1H22 2H22 FY22 otherwise sta
Slide 16: Rental – Western Region
RENTAL – WESTERN REGION Growth delivered through deployment of assets transferred from Eastern Region to meet strong demand. Operating utilisation remains constrained by customer operator shortages For personal use only Operating and financial performance highlights $m unless FY21 1H22 2H22 FY22 oth
Slide 17: Pit N Portal
PIT N PORTAL Pit N Portal base rental and services business delivering to plan, however, one major project continues to underperform diluting earnings, margins and returns. This project is currently being renegotiated For personal use only Operating and financial performance highlights $m unless FY2
Slide 18: Force
FORCE Workshops continue to deliver good growth and underpin our midlife asset model to provide Emeco with a cost and quality strategic advantage, whilst providing retail customers excellent value For personal use only Operating and financial performance highlights $m unless FY21 1H22 2H22 FY22 othe
Slide 19: Executing on our Strategy
For personal use only Executing on our Strategy
Slide 20: Our Strategy
OUR STRATEGY Building a sustainable and resilient business generating long term value for shareholders For personal use only Strong balance sheet The lowest cost, highest quality provider ⚫ Maintain a healthy balance sheet with target ⚫ Best-in-class operational capabilities to be the net leverage o
Slide 21: Appendix: Additional information
For personal use only Appendix: Additional information
Slide 22: Fleet Utilisation
FLEET UTILISATION For personal use only Operating utilisation1 FY21 1H22 2H22 FY22 Eastern Region 59% 59% 62% 61% Western Region 58% 60% 59% 59% Rental 59% 60% 61% 60% Gross utilisation2 FY21 1H22 2H22 FY22 Eastern Region 86% 91% 93% 92% Western Region 89% 90% 92% 91% Rental 87% 90% 93% 92% Notes: 1
Slide 23: Reconciliations
RECONCILIATIONS Statutory to operating reconciliation Cash flow reconciliation $m NPAT EBIT EBITDA $m FY22 For personal use only Statutory 65.0 115.1 245.7 Operating EBITDA 250.2 Tangible asset impairment 1.1 1.1 - Working capital (11.3) Long term incentive expense 2.0 2.0 2.0 Net capex (165.1) COVI
Slide 24: 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 For personal use only available sources that have not been
Slide 25: Thank you
Thank you For personal use only Investor enquiries: Thao Pham Chief Financial Officer Investor.relations@emecogroup.com emecogroup.com