Perenti Limited · ASX:PRN
Perenti — H1 2024 Earnings Presentation
23 slides from Perenti's earnings presentation, Feb 20, 2024
Slide 1: 1H24 Results
1H24 Results 20 February 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Perenti Limited ABN 95 009 211 474 (ASX:PRN) You should consult your own advisors as to legal, tax, financial and related matters and conduct your own investigations, enquiries a
Slide 3: HY24 Record results supported by value accretive DDH1 acquisition
HY24| Record results supported by value accretive DDH1 acquisition REVENUE EBITDA EBIT(A) NPAT(A) 1 $1.6B $312M $149M $78M ▲ 13% on 1H23 ▲ 11% on 1H23 ▲ 10% on 1H23 ▲ 20% on 1H23 Record revenue supported by the DDH1 EBITDA increased in-line with revenue. Strong underlying operational performance Imp
Slide 4: Perenti | Who we are
Perenti | Who we are A global mining service provider of scale with ~11,000 people capability across the value chain operating across 100+ 60+ 12 10+ Clients Projects Countries Commodities with 37 32 4 10 years in years in years in years in Australia Africa North America Europe SN BF UK GH BC QLD ON
Slide 5: Our performance is underpinned by our people
Our performance is underpinned by our people • Safety Transformation Taskforce, involving external experts, continues • 38% female Board and Group Executive Committee representation, to focus on guiding and challenging mindsets and approach to safety up from 21% at end FY23. across the business. • 8
Slide 6: Group performance
Group performance REVENUE EBITDA EBIT(A) LEVERAGE $1,632M ▲13% vs 1H23 $312M ▲11% vs 1H23 $149M ▲10% vs 1H23 0.9x ▼ vs 1H23 157 – excl $8.2m provision 312 1.0 1,632 135 281 129 149 271 0.9 0.9 1,439 1,442 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 1H24 Underlying EBIT(A) call-outs •
Slide 7: 1H24 Financial Performance
(—O Perenti 1H24 Financial Performance
Slide 8: Reconciliation of underlying results to statutory results
Reconciliation of underlying results to statutory results $M REVENUE EBITDA EBIT NPAT Underlying results 1,632.2 312.4 148.5 78.5 Add non-recurring items below Gain on acquisition (DDH1 acquisition) - 29.4 29.4 29.4 Transaction and other one-off costs - (7.6) (7.6) (7.6) Net foreign exchange gain /
Slide 9: Perenti's non-underlying profit on the DDH1 acquisition
Perenti’s non-underlying profit on the DDH1 acquisition • At the time of the DDH1 acquisition, the consideration for the acquisition of DDH1 was $329.7 million. • Following completion of the acquisition a provisional fair value was ascribed to DDH1’s assets. Positively, an independent valuation of t
Slide 10: DDH1 acquisition | Integration and synergies
DDH1 acquisition | Integration and synergies 1H24 drilling services exposure 1 DDH1 integration well progressed Predominantly Australian revenue base • Established the Drilling Services Division including DDH1 brands and 2% Europe Ausdrill. 6% North America • Integration execution is well progressed
Slide 11: Cash flow and cash conversion
Cash flow and cash conversion $M 1H23 1H24 Change • Cash tax in 1H24 was up on 1H23 in part due to the pre-payment of tax Statutory operating cash flows 210.6 246.7 ▲17.2% that had a positive benefit on 1H23. Operating cash conversion1 75% 79% ▲5.1% • 2H24 cash tax expected to be up on 1H24 due to a
Slide 12: 1H24 Business Performance
(—O Perenti 1H24 Business Performance
Slide 13: Contract Mining: Underground mining remains a solid earnings base
Contract Mining: Underground mining remains a solid earnings base REVENUE EBIT(A) EBIT(A) Margin $1,076M ▲7% vs 1H23 $120M ▼ 3% vs 1H23 11.1% ▼ vs 1H23 13.1% 1,076 133 128 (excl Savannah provision) 12.3% 1,002 1,019 11.9% (excl Savannah provision) 123 120 11.1% 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H2
Slide 14: Contract Mining: Surface mining demonstrates opportunities
Contract Mining: Surface mining demonstrates opportunities REVENUE EBIT(A) EBIT(A) Margin $220M ▼ 9% vs 1H23 $16M ▼ 49% vs 1H23 7.2% ▼ vs 1H23 12.8% 31 241 217 220 7.7% 7.2% 17 16 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 • With the establishment of the Drilling Services Division, • 1H23, Iduapri
Slide 15: Drilling Services: Delivers to expectations
Drilling Services: Delivers to expectations REVENUE EBIT(A) EBIT(A) Margin $235M ▲137% vs 1H23 $24M ▲ 255% vs 1H23 10.4% ▲ vs 1H23 235 10.4% 24 7.6% 6.9% 99 103 8 7 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 • Drilling Services includes the inclusion of the four DDH1 • Ausdrill earnings slightly h
Slide 16: Mining Services: strong performance
Mining Services: strong performance REVENUE EBIT(A) EBIT(A) Margin $101M ▲6% vs 1H23 $14M ▲ 134% vs 1H23 13.6% ▲ vs 1H23 103 101 14 13.6% 96 6 6.1% 1 1.4% 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 • Mining Services Division primarily reflects performance • BTP delivered strong earnings on improve
Slide 17: FY24 Outlook
(—O Perenti FY24 Outlook
Slide 18: FY24 | Guidance
FY24 | Guidance TARGETING No life changing events HOW WE WILL DELIVER • Safe delivery of our suite of mining services to provide certainty and value. REVENUE $3.3B to $3.4B • On going delivery of our sustainability imperatives and priorities. • Continue to deliver on our value accretive 2025 strateg
Slide 19: Perenti has a track record of delivery
Perenti has a track record of delivery Barminco acquisition Leverage significantly • Since the Barminco acquisition, quality of earnings have increased and Perenti has DECREASED Net debt to EBITDA (x) consistently delivered on strategic objectives delivering: • 229% Revenue growth; Leverage target <
Slide 20: Thank you
Thank you perentigroup.com Perenti is an ASX listed, diversified mining services group with interest in contract mining, drilling services, mining services and technology solutions. Headquartered in Perth and with offices and operations across four continents, we employ more SUSTAINABILITY EMBEDDED
Slide 21: APPENDIX: Underlying financials
APPENDIX: Underlying financials Group ($M) 1H23 1H24 Change (YoY) Revenue 1,438.5 1,632.2 ▲ 13.5% EBITDA 281.2 312.4 ▲ 11.1% EBIT(A) 134.6 148.5 ▲ 10.4% Contract Mining ($M) 1H23 1H24 Change (YoY) NPAT(A) 65.3 78.5 ▲ 28.8% Cash Conversion 75% 79% ▲ 5.4% Revenue 1,243.7 1,295.5 ▲ 4.2% Net Debt 566.5
Slide 22: APPENDIX: 1H24 revenue breakdown
APPENDIX: 1H24 revenue breakdown Mining Drilling Revenue by Project (%) Group Underground Surface Services* Services Top Project 6% 9% 31% 85% 10% Top 2 – 10 projects 40% 57% 69% 12% 54% Top 11-20 projects 25% 28% - 3% 28% All others 30% 6% - - 9% Revenue by Country (%) Australia 51% 48% - 85% 94% W
Slide 23: APPENDIX: WIH and Pipeline breakdown
APPENDIX: WIH and Pipeline breakdown Current operations and offices Value ($B) Work in Hand Pipeline Australia 1.4 5.5 West Africa 1.5 1.3 Botswana 1.3 1.7 Southern Africa 0.1 2.5 North America 0.1 3.1 UK / Eu 0.1 - TOTAL 4.6 14.0 Value ($B) Work in Hand Pipeline Gold 2.8 6.9 Copper 1.5 2.8 Nickel 0