Emeco Holdings Limited · ASX:EHL
Emeco — FY2019 Earnings Presentation
20 slides from Emeco's earnings presentation, Aug 21, 2019
Slide 1: Emeco Holdings Limited 2019 Full Year Results
Emeco Holdings Limited 2019 Full Year Results 21 August 2019
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS Reliance on third party information No offer of securities The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to
Slide 3: Highlights
HIGHLIGHTS In FY19, Emeco deleveraged to 2.0x, driven by earnings growth and strong cash generation FY19 achievements Outlook and strategy for FY20 and beyond Strong demand in Western Australia will allow us to enhance our Operating earnings1 significantly increased on FY18 commodity diversifica
Slide 4: People and safety
People and safety @ Emeco
Slide 5: People and Safety
PEOPLE AND SAFETY Emeco had zero lost time injuries in FY19 and continues to invest in its workforce Safety Injury frequency rates Zero lost time injuries 10 8 Total recordable injury frequency rate increased from 1.2 to 6 4.6. In response to this, the following structural changes 4 have been im
Slide 6: Operating segments
Operating segments @ Emeco
Slide 7: Rental
RENTAL Strong rates, utilisation and cost management drives growth in earnings and margins Operating EBITDA1 up 39% Operating EBIT1 up 45% FY19 overview 250.0 58.3% 60.0% Rental growth predominantly due to strong 250.0 60.0% demand from customers in metallurgical coal 234.0 200.0 47.3% 50.0% Ope
Slide 8: Rental – Eastern Region
RENTAL – EASTERN REGION Strong metallurgical coal demand continues with opportunities in hard rock Operating EBITDA up 51% FY19 overview FY20 outlook Growth underpinned by: Strong continued demand, particularly in $184.1m metallurgical coal − Increase in operating utilisation, particularly in me
Slide 9: Rental – Western Region
RENTAL – WESTERN REGION Following projects completing in FY19, the Western Region is rebuilding in 1H20 as it redeploys fleet into iron ore and gold projects for a strong CY20 Operating EBITDA up 7% FY19 overview FY20 outlook Although FY19 was a challenging year for 1H20 earnings will remain fla
Slide 10: Workshops
WORKSHOPS Workshops throughput has increased significantly in FY19 and will continue to grow in FY20 Activity1 up 56% on FY18 annualised FY19 overview $114.8m First full year of contribution from Force Workshops (acquired 30 November 2017) $62.9m Workshops activity has increased significantly as
Slide 11: Workshops – Asset Management
WORKSHOPS – ASSET MANAGEMENT Emeco’s Workshops and asset management capabilities enable Emeco to be the highest quality and lowest cost provider of assets to maximise returns Strong performance compared to Overview industry benchmarks Emeco 83 rd percentile Emeco’s Workshops and asset management c
Slide 12: Financial results
‘i Financial results \e
Slide 13: Profit and Loss
PROFIT AND LOSS Significant earnings and margin increases drive strong ROC1 of 21.0% Group revenue by commodity Operating financial performance2 exposure A$m unless otherwise stated FY183 FY194 Change Civil Bauxite Nickel 4% 2% 1% Copper Operating revenue 381.0 464.5 22%▲ 4% Iron Ore Operating EBITD
Slide 14: Cash Flow
CASH FLOW Strong underlying cash generation during FY19 enabled debt repayment and investment in strategic growth assets Overview FY19 operating cash flow1 Continued strong operating free cash flow (pre-growth assets) of A$m FY18 FY19 $90.1m Operating EBITDA 153.0 214.0 Working capital cash flow
Slide 15: Balance Sheet
BALANCE SHEET Leverage down to 2.0x, notwithstanding cash/debt funded growth capex Overview Leverage (net debt / operating EBITDA2) Leverage1 reduced to 2.0x from 2.6x in FY18, notwithstanding $85.1m investment in growth assets funded with cash/debt Completed a refinance of RCF 2.6x − More favou
Slide 16: Appendix A: Emeco's long term value creation model
Appendix A: Emeco’s long term value creation model
Slide 17: 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 cycle Generate returns Reinvest in the business — Attractive shareholder returns — In-dema
Slide 18: Appendix B: Operating to statutory reconciliation
Appendix B: Operating to statutory reconciliation
Slide 19: Reconciliations
RECONCILIATIONS FY19 operating earnings reconciliation FY19 operating cash flow reconciliation $Am NPAT EBIT EBITDA $Am Statutory result 33.7 99.1 195.1 Operating EBITDA 214.0 Refinancing costs 3.2 - - Working capital 21.4 Contract amortisation 0.7 0.7 - Net sustaining capex (88.5) Tangible asset im
Slide 20: Thank you
Thank you emecogroup.com