Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — FY2013 Earnings Presentation
35 slides from Sgh's earnings presentation, Aug 27, 2013
Slide 1: ASX cover letter: Presentation of Results
27 August 2013 Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street Sydney NSW 2000 By electronic lodgment Total Pages: 35 (including cover letter) Dear Sir / Madam PRESENTATION OF RESULTS Following is a copy of the Presentation of Results for the financial y
Slide 2: Results for the Year Ended 30 June 2013
RESULTS FOR THE YEAR ENDED 30 JUNE 2013 Presentation on 27 August 2013
Slide 3: Disclaimer
Disclaimer Basis of preparation of slides Included in this presentation is data prepared by the management of Seven Group Holdings Limited (SGH) and other associated entities and investments. This data is included for information purposes only and has not been subject to the same level of review b
Slide 4: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 5: What the Group Looks Like Now
What the Group Looks Like Now Industrial Services Media Investments WA ~35% + $276m RCPS 100% Listed ~$759m NSW/ACT Portfolio Australia EMP 100% 100% Property China Portfolio 45% 100% Notes: 1. Group structure as at 30 June 2013 100% 2. Investment values as at 30 June 2013 3. Seven West Media invest
Slide 6: Group Highlights
Group Highlights Strong first half performance by WesTrac Australia Record underlying results delivered record results Second half was challenging Results positively impacted Net gain after tax of $89.7m from significant items, predominantly relating to the reversal of prior SWM by significant
Slide 7: Key Financial Numbers
Key Financial Numbers Total Group – Annual Result Financial Results ($m) for year ended 30-Jun-13 30-Jun-12 % Change Trading revenue 4,752 4,467 6% Underlying EBITDA 1, 2 686 630 9% Underlying net profit after tax (excluding significant items) 2 399 343 16% Significant items (including tax impact) 2
Slide 8: Segment Analysis
Segment Analysis 30 June 2013 – Segment Result Trading Revenue Segment EBIT 3.3% 0.1% 5.9% 10.2% WesTrac Australia 16.7% WesTrac Australia WesTrac China WesTrac China AllightSykes 7.5% AllightSykes Coates Hire (0.1%) Other Investments 70.4% Media Investments 86.4% (0.4)% Other Investments FY13 $4,75
Slide 9: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 10: Outlook
Outlook – refer disclaimer The downturn in the mining sector has impacted all of our Industrial Services businesses and we continue to face challenges in particular in the NSW business of WesTrac. We continue to remain cautious regarding trading conditions. As can be seen from the historical rev
Slide 11: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 12: Consolidated Profit and Loss
Consolidated Profit and Loss Underlying Performance Year ended Year ended Change Please refer to the $m 30 June 2013 30 June 2012 % Appendix 4E for the Revenue 4,751.6 4,467.4 6% detailed statutory Other income 78.8 75.6 4% presentation Share of results from equity accounted investees 125.1 154.8
Slide 13: Summary of Significant Items
Summary of Significant Items Year ended 30 Year ended 30 $m June 2013 June 2012 Gain on sale - Consolidated Media 50.1 - Gain on sale / FV of deferred consideration - Vividwireless 11.5 129.8 Gain on sale - Property (KS1, KS2, KS3) 29.4 - Gain on sale of other investments & fair value of derivatives
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Total Group As at As at Change $m 30 June 2013 30 June 2012 % Trade and other receivables 721.6 920.5 (22)% Inventories 1,050.5 1,384.6 (24)% Intangible assets 765.2 749.1 2% Investments 2,209.1 2,203.7 0% Fixed assets 267.0 293.3 (9)% Other assets 16.7 35.2 (53)% Trade an
Slide 15: Consolidated Investment Listing
Consolidated Investment Listing Total Group 23 August 2013 $m 30 June 2013 30 June 2012 Market Value 4 Seven West Media (Ordinary shares + RCPS) 3,4,5 1,141.3 947.1 638.4 Listed Portfolio 1,2,4,6 809.7 758.8 670.8 Consolidated Media Holdings 3,4 - - 439.9 Coates Hire 3 Unlisted 430.2 386.4 Other Unl
Slide 16: Consolidated Net Debt Movement
Consolidated Net Debt Movement Total Group Year ended Significant operating $m cash flow improvement 30 June 2013 on prior corresponding Net debt (excl. derivatives) 30 June 2012 (1,718.7) period Significant investment items: - Consolidated Media proceeds 491.3 Primary drivers of net - Seven Wes
Slide 17: Consolidated Debt Maturity Profile
Consolidated Debt Maturity Profile Total Group as at 30 June 2013 (refer disclaimer) Debt maturity profile - excluding derivatives China Australia Cash At 30 June 2013 the Group 600 had $1.25bn of available 542 512 undrawn borrowing facilities 500 and $542m in cash. AUD m 400 Current “<1 year” d
Slide 18: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 19: SGH Investment Portfolio
SGH Investment Portfolio Investment portfolio delivered growth in value while also releasing capital. Objective to realise value creation through selective investment opportunities where strategic rationale exists to enhance shareholder return. Focus on investments that are complementary to th
Slide 20: SGH Property Holdings
SGH Property Holdings Our aim is to maximise the value and return Kings Square project: for our existing property assets: In conjunction with Leighton for first 4 sites Perth Entertainment Centre / Kings Square Successful sale of first 3 sites to Dexus Seven’s Tuart Hill studio in Perth Sa
Slide 21: Investments and Property P&L
Investments and Property P&L Excluding Significant Items Year ended Year ended Change The 30 June 2013 result $m 30 June 2013 30 June 2012 % excludes results from Revenue 5.8 56.7 (90)% vividwireless (sold June Other income 39.3 43.6 (10)% 2012) and includes 3 Share of results from equity accounte
Slide 22: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 23: Media Investments P&L
Media Investments P&L Excluding Significant Items Year ended Year ended Change SGH sold its interest in $m 30 June 2013 30 June 2012 % Consolidated Media for Share of associates NPAT $491m in Nov 2012. - Seven West Media 72.8 71.1 2% SGH recorded a $50m gain on - Consolidated Media Holdings 1 6.
Slide 24: Seven West Media
Seven West Media 30 June 2013 Highlights Outstanding television ratings achieved – 40.4% share Revenue Jun 13 Jun 12 Change Television 1,267.8 1,262.4 0.4% Ongoing management focus on cost, quality and Newspapers 303.1 348.4 (13.0)% revenue initiatives Magazines 256.2 287.2 (10.8)% Cost & reve
Slide 25: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 26: AllightSykes
AllightSykes Revenue down (26%) on last year Year ended Year ended Change AllightSykes $m 30 June 2013 30 June 2012 % on the back of softer demand Revenue 155.8 210.3 (26)% Cost reduction initiatives have Other income 0.3 0.8 (63)% been implemented, focusing on Operating costs (152.7) (198.8) (2
Slide 27: Coates Hire Group
Coates Hire Group Revenue of $1,241m down (4%) Year ended Year ended Change Coates Hire $m 30 June 2013 30 June 2012 % against prior year, driven by soft H2 Revenue and other income 1,241.0 1,293.0 (4)% EBITDA decreased (5%) on prior Gross profit 824.2 868.3 (5)% corresponding period Underlying
Slide 28: WesTrac Australia
WesTrac Australia Overview High demand for Australian resources drove WesTrac’s H1 revenue growth Calendar 2012 saw unprecedented levels of new equipment sales H2 revenue was impacted by the softening in the coal sector in NSW and the deferral of a number of large mining projects in WA Our b
Slide 29: WesTrac Australia
WesTrac Australia 20% product market growth Year ended Year ended Change $m 30 June 2013 30 June 2012 % Driven by acquisition of EMP (Bucyrus) and record H1 deliveries WesTrac Australia H2 sales softened - Product sales 2,678.7 2,240.0 20% - Product support 1,405.6 1,279.1 10% 10% product su
Slide 30: WesTrac Australia: Expanded Mining Products (EMP) Update
WesTrac Australia Expanded Mining Products (EMP) Update EMP business purchased from Cat on 1 June 2012 successfully integrated EMP has improved our ability to service our customers full mining equipment needs Drilling, very large excavating equipment and electric trucks Stronger access to th
Slide 31: WesTrac China (USD)
WesTrac China – (USD) Product sales lower vs prior year Downturn in mining market and soft construction market Achieved market share growth in the hydraulic excavator business in a competitive second half WesTrac China business has been through significant restructuring, repositioning the bu
Slide 32: WesTrac China (USD)
WesTrac China – (USD) $122.2m in operating cash flow Year ended Year ended Change USD $m 30 June 2013 30 June 2012 % delivered during the year Inventory levels were managed down WesTrac China for current market conditions - Product sales 394.2 555.1 (29)% - Product support 109.0 120.1 (9)% Cos
Slide 33: Today's Agenda
Today’s Agenda Overview Don Voelte Outlook Don Voelte Financials David Cooper Investments Ryan Stokes Property Ryan Stokes Media Investments Don Voelte Industrial Services AllightSykes Don Voelte Coates Hire Group Don Voelte WesTrac Group Don Voelte Key Takeaways and Questions
Slide 34: Key Takeaways and Questions
Key Takeaways and Questions Record underlying results driven by exceptional first half Second half was challenging along with the outlook across all our Industrial Services businesses Significant restructuring undertaken to address the downturn but we expect underlying EBIT to decline between
Slide 35: Slide 34
ANNUAL RESULTS - 30 JUNE 2013 Presentation - 27 August 2013 Slide 34