Perenti Limited · ASX:PRN
Perenti — Perenti Global — H1 FY2021 Earnings Presentation
32 slides from Perenti's earnings presentation, Feb 23, 2021
Slide 1: Perenti Global Limited
For personal use only Perenti Global Limited ABN 95 009 211 474
Slide 2: A global business of scale
A global business of scale For personal use only OPERATING IN 12 Countries 4 Continents YEARS OF EXPERIENCE 30+ Current operations and offices GLOBAL PROJECTS GLOBAL EMPLOYEES Underground Surface Investments 55+ ~8,000 Mining Mining 2
Slide 3: 1H21 underlying financial highlights
1H21 underlying financial highlights For personal use only 1H21 performance reflects strong Underground earnings, impacted by external factors (COVID-19, strengthening AUD and a challenged east coast equipment rental market) and Surface Africa underperformance REVENUE EBITDA EBIT(A) NPAT(A) $1.01B $
Slide 4: 1H21 operations overview
1H21 operations overview ▪ Strong growth in our Underground business For personal use only ▪ Contraction of Surface Africa and Investments ▪ External market factors have impacted 1H21 results: ▪ COVID-19 new variant impact ▪ Strengthening Australian dollar ▪ Challenging Australian east coast equipme
Slide 5: The safety of our people is our priority
The safety of our people is our priority For personal use only WORKFORCE SNAPSHOT SERIOUS POTENTIAL INJURY FREQUENCY RATE (SPIFR) 3.5 Down from 4.1 at Jun20 INTERNATIONAL WORKFORCE IMPLEMENTED CRITICAL RISK MANAGEMENT PROGRAM In-field program designed to identify and continuously verify the presence
Slide 6: COVID-19 Update
COVID-19 Update For personal use only ▪ Strong response to the initial onset of COVID-19, achieved business continuity amidst significant logistical challenges faced by our international operations ▪ Investment in specialist team to manage movement and wellbeing of expat workforce of circa 500 peopl
Slide 7: At Perenti we are committed to a sustainable future
At Perenti we are committed to a sustainable future For personal use only ▪ Inaugural Sustainability Report issued August 2020, working towards meeting FY21 commitments ▪ Proactive engagement with independent ESG ratings agencies focused on improving recognition of ESG credentials ▪ Opened a state-o
Slide 8: Business performance
For personal use only Business performance
Slide 9: Group performance - underlying
Group performance - underlying $1,013M $201M $94M 14.4% For personal use only REVENUE ($M) EBITDA ($M) EBIT(A) ($M) ROACE x,xxx x,xxx Revenue BY ISG BY COUNTRY BY COMMODITY BY PROJECT Figures are underlying and exclude amortisation and any one-off or non-underlying items as disclosed on slides 17 &
Slide 10: Underground performance
Underground performance For personal use only ▪ Underground represents 73% of group revenue and 90% of group EBIT(A)(1) $731M $110M 15.1% REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN ▪ Exceptional underground performance with continued growth and stable margins despite continuing COVID-19 impact ▪ Earni
Slide 11: Surface performance
Surface performance For personal use only ▪ Surface represents 21% of group revenue and 3% of group EBIT(A)(1) $215M $4M 1.8% REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN ▪ AMS contraction from expiry of Tabakoroni and Tarkwa contracts Yanfolila ▪ Sanbrado project ahead of budget on physicals; contract
Slide 12: AMS Strategic Review findings and actions
AMS Strategic Review findings and actions A clear pathway to underpin the sustainability of our AMS business, aligned with broader business plans and the 2025 Group Strategy For personal use only AMS Strategic Review Findings Actions Status Strong AMS brand • Maintain brand and value proposition gen
Slide 13: AMS – focused on returns and exit of underperforming contracts
AMS – focused on returns and exit of underperforming contracts For personal use only Capital (A$M) Pre-Strategic Review Strategy execution Indicative future state ▪ During 1H21 capital employed within AMS projects (Boungou / Burkina Faso and Yanfolila / Mali) generated low returns Non-cash ▪ Negotia
Slide 14: Investments performance
Investments performance For personal use only ▪ Investments represents 6% of group revenue and 7% of group EBIT(A)(1) $64M $8M 13.1% REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN ▪ Softer Australian east coast equipment rental market due to weaker coal prices led to a decline in BTP revenue and earnings
Slide 15: Financials
For personal use only 15 15 Financials
Slide 16: Underlying profit and loss
Underlying profit and loss For personal use only $M 1H20 1H21 Change ▪ Group revenue consistent with pcp. Growth from core Underground business offset by decline in AMS. Derived 66% from gold and 48% Underlying Revenue 1,006.9 1,013.4 0.6% Australian projects Underlying EBITDA 222.0 200.9 (9.5%) ▪ U
Slide 17: 1H21 reconciliation of statutory to underlying
1H21 reconciliation of statutory to underlying For personal use only $M Revenue EBITDA EBIT NPAT Statutory Results 1,056.2 118.0 (16.5) (63.8) Non-cash amortisation of customer related and software intangibles - - 19.3 19.3 Statutory Results before amortisation 1,056.2 118.0 2.8 (44.5) Less non-recu
Slide 18: AMS Implementation of Strategic Review
AMS Implementation of Strategic Review For personal use only Project / initiative Description One-off EBIT(A) impact1 ▪ Negotiation of early exit of lossmaking legacy contract progressed YANFOLILA, MALI ▪ Includes 1H21 Yanfolila trading losses of $3.4M $(42.1M) Negotiation of early exit and asset sa
Slide 19: Statutory cash flow and cash conversion
Statutory cash flow and cash conversion For personal use only $M 1H20 1H21 ▪ Excellent cash conversion of 92% from a continued focus on working capital management Operating cash flows before interest and tax 151.3 184.2 ▪ Net interest paid lower due to change in timing of bond interest Net interest
Slide 20: Debt refinance completed during 1H21
Debt refinance completed during 1H21 Group debt ($M) Dec19 Jun20 Dec20 Maturity profile ($M) US$450M Guaranteed senior notes For personal use only Revolving credit facilities - drawn US$350 million secured notes 497.9 506.3 - Revolving credit facilities - undrawn US$450 million guaranteed senior not
Slide 21: Strategy and outlook
For personal use only Strategy and outlook 21
Slide 22: Delivering our 2025 Group Strategy
Delivering our 2025 Group Strategy For personal use only Operational Strategic Organisational Technology Financial Strategic Pillars Capacity Excellence Growth Health Driven Future Horizon 1: • Deliver on safety, • Brand and • Strengthen • Building the • Portfolio review Setting the operational and
Slide 23: 2025 Group Strategy – key achievements to date
2025 Group Strategy – key achievements to date For personal use only Strategic Technology Financial Operational Excellence Organisational Health Capacity Growth Driven Future ✓ Continuously delivering ✓ Launch of Perenti brand ✓ Published inaugural ✓ Increased investment in ✓ Negotiating release of
Slide 24: Investing now to support our 2025 Group Strategy
Investing now to support our 2025 Group Strategy For personal use only ▪ We are in an investment phase, creating a foundation to deliver sustainable growth ▪ We are globally diversified, operating in 12 countries ▪ Invested in additional security and emergency management measures to better protect o
Slide 25: Work in hand of $5.5B including $1.3B of contract extension options
Work in hand of $5.5B including $1.3B of contract extension options For personal use only Work in hand (by ISG) Work in hand (by country) Work in hand (by commodity) $5.5B $5.5B $5.5B Work in hand rundown ($B) ▪ Work in hand higher than 30 June 2020 with $1.1B contract wins and renewals offsetting w
Slide 26: Work in hand – June to December 2020
Work in hand – 30 June to 31 December 2020 For personal use only ▪ New work and extensions awarded after 2H20 are in excess of orderbook run down ▪ Stronger AUD impacted work in hand by $0.2B Work in hand is remaining aggregate contract value between 1 Jan 2021 – 30 June 2026 excluding uncontracted
Slide 27: Grow organically – Pipeline of $9.2B
Grow organically – Pipeline of $9.2B For personal use only ▪ Shift to geographic exposure with 76% of identified pipeline located Australia, North America and Botswana ▪ 82% of pipeline relates to underground mining projects and 83% gold or copper ▪ $2.1B North American pipeline comprises 14 project
Slide 28: Priorities and outlook
Priorities and outlook For personal use only Near term priorities Outlook OPERATIONAL EXCELLENCE: Maintain delivery of operational excellence ORDERBOOK SUPPORTING FY21 REVENUE: $0.9B committed revenue for across existing work and successfully ramp up new focus projects 2H21. FY21 secured revenue is
Slide 29: For personal use only
use only | For persona @) Perenti
Slide 30: Corporate overview
Corporate overview Share Price Performance (rebased) For personal use only Capital Structure Board of Directors Share price $1.43 Ian Cochrane Chairman Fully paid ordinary shares 704 million Mark Norwell Managing Director and Chief Executive Officer Market capitalisation (undiluted) $1,007 million A
Slide 31: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation and these materials (together the “Presentation”) have been prepared by Perenti Global any particular person. You should consult your own advisors as to legal, tax, financial and related matters and Limited ABN 95 009 211 474 (A
Slide 32: Thank you
For personal use only Thankyou Thank you perentigroup.com FY21 Half-year results 23 February 2021