Perenti Limited · ASX:PRN
Perenti — H1 FY2022 Earnings Presentation
24 slides from Perenti's earnings presentation, Feb 22, 2022
Slide 1: Half-Year Results 2022
H A L F -Y E A R R E S U LT S 2022 22 FEBRUARY Perenti Global Limited ABN 95 009 211 474
Slide 2: 1H22 underlying financial results
BUSINESS OVERVIEW 1H22 underlying financial results REVENUE EBITDA EBIT(A) NPAT(A) $1.2B $202M $81M $35M 18% on 1H21 In-line with 1H21 EBITDA 14% on 1H21 22% on 1H21 Primarily due to the commencement Softer EBITDA margins primarily due Depreciation remains ~10% of revenue Primarily on lower EB
Slide 3: 1H22 business overview
BUSINESS OVERVIEW 1H22 business overview CONTINUED TO DELIVER CONTINUED EXECUTION ON POSITION THE BUSINESS FOR OPERATIONALLY AND FINANCIALLY OUR STRATEGY THE FUTURE Delivered operational excellence idoba announced a MOU with Work in hand holds $5.7B and our and continuity of service for Sumitomo and
Slide 4: Safety and sustainability performance
BUSINESS OVERVIEW Safety and sustainability performance SUSTAINABILITY PERFORMANCE IG HT S AN R • Established the Board Sustainability Committee with Tim Longstaff appointed HI C S, H UM ET E NA as the Chair TC UT S BL ET OM O R U O O SH R R • Initiated our “It’s NOT ok” campaign and released our Po
Slide 5: Continuing to deliver on our 2025 Strategy
BUSINESS OVERVIEW Continuing to deliver on our 2025 Strategy OPERATIONAL STRATEGIC ORGANISATIONAL TECHNOLOGY DRIVEN FINANCIAL EXCELLENCE GROWTH HEALTH FUTURE CAPACITY Welcomed ~1,000 Commenced our Established the Through idoba, Liberated $85.4M new employees to strategic refresh, Board Sustainabilit
Slide 6: Capital management enables value creation
BUSINESS OVERVIEW Capital management enables value creation Portfolio selection and performance is a fundamental value driver STRONG CASH FLOWS FROM OPERATIONS • Our pipeline reflects a focus on tendering for the right projects • Investment decisions must be based on strong capital returns INTEREST
Slide 7: Business performance
Business performance 7 HALF-YEAR RESULTS 2022
Slide 8: Group performance – underlying
BUSINESS PERFORMANCE Group performance – underlying REVENUE ($M) EBITDA ($M) EBIT(A) ($M) ROACE (%) $1,192M $202M $81M 13.8% 1,192 94 14.4 14.3 13.8 201 202 1,013 1,008 179 77 81 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 REVENUE (%) BY ISG BY COUNTRY BY COMMODITY BY PROJECT % % % %
Slide 9: Strong revenue growth, despite COVID-19 impacts
UNDERGROUND PERFORMANCE BUSINESS PERFORMANCE Strong revenue growth, despite COVID-19 impacts REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN (%) REVENUE (%) BY COUNTRY $849M $86M 10.1% • Australia48 • Ghana15 % 14.9 • Burkina Faso 13 849 109 • Botswana 8 731 745 89 11.9 • Tanzania 7 86 10.1 • Canada 5 • Eg
Slide 10: Improvement reflects strategic review benefits
SURFACE PERFORMANCE BUSINESS PERFORMANCE Improvement reflects strategic review benefits REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN (%) REVENUE (%) BY COUNTRY $266M $14M 5.2% • Australia38 • Ghana31 % 266 • Senegal14 14 • Burkina Faso 12 215 5.2 • Mali 5 196 1.8 BY COMMODITY 4 % (1) (0.4) 1H21 2H21 1H2
Slide 11: Delivering revenue growth, now including idoba
INVESTMENTS PERFORMANCE BUSINESS PERFORMANCE Delivering revenue growth, now including idoba REVENUE ($M) EBIT(A) ($M) EBIT(A) MARGIN (%) REVENUE (%) BY COUNTRY $77M $5M 6.5% • Australia87 • South Africa 7 % 9.2 • Ghana6 77 6 68 68 5 4 6.5 5.4 BY COMMODITY % • Mixed Coal 30 1H21 2H21 1H22 1H21 2H21 1
Slide 12: Financial performance
Financial performance 12 HALF-YEAR RESULTS 2022
Slide 13: Underlying profit and loss
FINANCIAL PERFORMANCE Underlying profit and loss $M 1H21 1H22 Change • Increased revenue as growth projects ramp up Revenue 1,013.4 1,192.4 17.7% • 1H22 EBITDA broadly in-line with 1H21. EBITDA margin decreased due to EBITDA 200.9 201.8 0.4% Australian underground labour and supply constraints and t
Slide 14: 1H22 reconciliation of underlying to statutory
FINANCIAL PERFORMANCE 1H22 reconciliation of underlying to statutory $M Revenue EBITDA EBIT NPAT Underlying results 1,192.4 201.8 80.8 34.9 Margin (%) - 16.9% 6.8% 2.9% Add non-recurring items below Transaction, restructuring cost and other - (4.1) (4.1) (4.1) Non-cash impairment of customer related
Slide 15: Cash flow and cash conversion
FINANCIAL PERFORMANCE Cash flow and cash conversion $M 1H21 1H22 Change (%) • Excellent cash conversion of 94% and a continued focus on working capital management Operating cash flows (before interest and tax) 184.2 190.4 3 Operating cash conversion 92% 94% 3 • Stay in business (SIB) capital of $9
Slide 16: Focused on liquidity and capital management
FINANCIAL PERFORMANCE Focused on liquidity and capital management LEVERAGE RATIO • Net leverage was 1.3x, gearing was 28% and EBITDA interest cover 8.1x 1.5 Leverage target 1.0 <1.0) • Leverage was forecast to be between 1.5x and 1.6x however due to higher than forecast cash conversion, effective ma
Slide 17: Priorities and outlook
Priorities and outlook 17 HALF-YEAR RESULTS 2022
Slide 18: Perenti's Strategic Roadmap
PRIORITIES & OUTLOOK Perenti’s Strategic Roadmap 2019 2020 - 2021 1H22 2022 - 2025 • Awarded our first project in • Delivery against our 2025 • Divestments of assets, liberating Refreshed 2025 Strategy (yet to be Botswana Strategy: $85.4 million of cash finalised) will focus on: • Established a new
Slide 19: Priorities and outlook
PRIORITIES & OUTLOOK Priorities and outlook NEAR TERM PRIORITIES OUTLOOK OPERATIONAL Deliver operational excellence across all projects, 2H22 Continued ramp-up of growth EXCELLENCE working to successfully ramp up growth projects projects will underpin a stronger revenue and earnings in 2H22 Deliver
Slide 20: 20 HALF-YEAR RESULTS 2022
q (— Perenti MMH 20 HALF-YEAR RESULTS 2022 _
Slide 21: Important notice and disclaimer
Important notice and disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Perenti Global Limited You should consult your own advisors as to legal, tax, financial and related matters and conduct your own investigations, ABN 95 009 211 474 (ASX:PRN) (“Pe
Slide 22: Work in hand of $5.7B
Work in hand of $5.7B1 Australian work in hand African work in hand • Work in hand represents +2 years of contracted work at current run rates with extensions accounting for an additional +1 year WIH WIH 48% Egypt 48% • Strategically exited from the Sukari underground project in Egypt, Burkina Faso
Slide 23: Organic growth pipeline of $9.5B
Organic growth pipeline of $9.5B • Continued focus on top-tier mining jurisdictions and top-tier, multi-asset quality mining clients seeking strong financial, ESG and safety performance • Aligned with the strategic transition into lower risk jurisdictions, 89% of the pipeline is focused within Austr
Slide 24: Thank you
Thank you perentigroup.com H A L F -Y E A R R E S U LT S 2022 22 FEBRUARY 24 HALF-YEAR RESULTS 2022