Emeco Holdings Limited · ASX:EHL
Emeco — Investor Conference Presentation April 2019
14 slides from Emeco's conference presentation, Apr 3, 2019
Slide 1: Investor Conference Presentation April 2019
For personal use only Emeco Holdings Limited Investor Conference Presentation April 2019
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Reliance on third party information For personal use only 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 i
Slide 3: Emeco's Long-Term Value Creation Model
EMECO’S LONG-TERM VALUE CREATION MODEL Differentiating Emeco to create a competitive advantage by being the highest quality and lowest cost provider of earthmoving equipment services to drive value through the cycles For personal use only Generate returns Reinvest in the business — Attractive shareh
Slide 4: Sustaining EBITDA, Margins and Returns
SUSTAINING EBITDA, MARGINS AND RETURNS Emeco has significantly improved EBITDA, margins and return on assets and is committed to ensuring its sustainability through the capex and commodity cycles For personal use only Emeco historical performance (Australian rental pre-corporate costs) • Earnings mo
Slide 5: Strong Equipment Rental Demand
STRONG EQUIPMENT RENTAL DEMAND Mining companies remain reluctant to overinvest in fleet following the excesses of 2010 to 2013 – equipment rental becomes a desirable value proposition For personal use only Annual production vs fleet in Australia 2016-present: Investment in fleet stagnant. Mining com
Slide 6: Commitment to a Strong Balance Sheet
COMMITMENT TO A STRONG BALANCE SHEET Emeco is continues on its aggressive deleveraging path For personal use only On track to achieve deleveraging target • Emeco is focused on ensuring a healthy balance sheet through the cycle 8.0x • Emeco is committed to its aggressive deleveraging path (1.0x FY21
Slide 7: Extensive Remaining Life in Emeco Fleet
EXTENSIVE REMAINING LIFE IN EMECO FLEET While Emeco’s fleet is young, Emeco has enhanced its capability to push out equipment lives to take advantage of the market’s acceptance for older fleet For personal use only • Emeco’s fleet has a blended age profile Emeco Fleet Age Profile • Emeco’s fleet is
Slide 8: Recent Asset Purchase
RECENT ASSET PURCHASE Investing in mid-life equipment as part of Emeco’s long term fleet configuration strategy For personal use only Purchase possible Strong procurement capability in buying mid life assets through Emeco's current core capabilities Workshop’s ability to rebuild and prepare for
Slide 9: Value Is in the Components
VALUE IS IN THE COMPONENTS Under Emeco’s mid-life assets model, the key driver is in component value and managing component life to reduce its life cycle cost and maximise returns For personal use only Asset value throughout its life • Emeco invests in mid-life equipment to optimise the use of capit
Slide 10: Workshop Capability
WORKSHOP CAPABILITY Emeco’s workshops and craftsmanship capability enables us to rebuild components For personal use only Emeco’s workshops capability provides the following benefits: • Significant capex savings • More reliable product offering given guaranteed availability of critical spares in a t
Slide 11: Engineering and Planning Capability
ENGINEERING AND PLANNING CAPABILITY Advanced analytics delivers optimised asset decisions to ensure industry leading asset performance For personal use only Component analysis Asset performance management Industry benchmarking • Reliability engineers monitors the • Reduction in downtime • Use of Qua
Slide 12: Reducing Component Costs
REDUCING COMPONENT COSTS Reducing component costs and extending component life provides Emeco with a competitive advantage in maximising return on assets For personal use only Major Component Cost per Hour Benchmarking • Emeco’s centralised planning team monitors and manages over 12,000 components •
Slide 13: Industry Leader in Reducing Life Cycle Costs
INDUSTRY LEADER IN REDUCING LIFE CYCLE COSTS Focus on being the highest quality and lowest cost provider of assets ensures Emeco is a leader on the cost curve throughout an asset’s life For personal use only Australia benchmark performance range 2019 Emeco Performance Quartile One: Australia Dozer B
Slide 14: Thank you
For personal use only Thank you emecogroup.com
Emeco Holdings — Investor Conference Presentation April 2019 on 6ix