Emeco Holdings Limited · ASX:EHL
Emeco — Macquarie Australia Conference 2021
14 slides from Emeco's conference presentation, May 6, 2021
Slide 1: Macquarie Australia Conference Presentation
Emeco Holdings Limited For personal use only Macquarie Australia Conference Presentation 6 May 2021
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS For personal use only 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 solici
Slide 3: Emeco Operations
EMECO OPERATIONS Emeco is the largest heavy earthmoving mining equipment solutions provider in Australia, with leading positions in mining equipment rental, hard rock mining services and equipment maintenance For personal use only Australia’s largest Australia’s largest Specialist mining provider of
Slide 4: 1H21 Financial Summary
1H21 FINANCIAL SUMMARY Emeco’s ongoing strategy to build a more resilient business has been executed with success, maintaining strong cash flows and a high return on capital For personal use only 1H21 financial summary1 $m unless otherwise stated 1H20 1H21 Commentary Operating revenue 246.5 298.6 St
Slide 5: People and Safety
PEOPLE AND SAFETY Emeco is continuously investing in its workforce of 1,000 people to drive long-term sustained success and has improved its TRIFR to 2.8 as we target a zero harm workplace For personal use only People ▪ We have a workforce of over 1,000 dedicated, driven and highly skilled mechanics
Slide 6: Our Strategy
OUR STRATEGY Emeco is a sustainable and resilient business, with a widened value proposition, diversified mix of customers and commodity exposure. Strong cash flows and low leverage create opportunities to continue along the strategic path For personal use only Strong balance sheet The lowest cost,
Slide 7: Lowest Cost, Highest Quality Provider
LOWEST COST, HIGHEST QUALITY PROVIDER Unique to Emeco, rebuilding equipment internally through our Force workshops generates unmatched quality and cost advantages to be consistently lower than competitors For personal use only Emeco life-cycle cost performance Industry ranked position Mid-life asset
Slide 8: Portfolio Diversification
PORTFOLIO DIVERSIFICATION Emeco has continued to diversify its revenue by commodity in 1H21, with strong growth in metals further reducing the reliance on coal while also expanding the diversity of our customers and projects For personal use only Commodity mix Customers and projects Civil and other
Slide 9: Widening Value Proposition
WIDENING VALUE PROPOSITION Our ongoing strategy to diversify our revenue through increasing our service offering continues to widen the value proposition for our customers and positions Emeco to become further embedded on customer sites For personal use only Expanding our services Services revenue ▪
Slide 10: Strongest Balance Sheet in Emeco's History
STRONGEST BALANCE SHEET IN EMECO’S HISTORY Comprehensive package of capital structure initiatives completed in 1H21, fortifying Emeco’s balance sheet target of 1x leverage achieved For personal use only 3.0x Leverage1 (net debt / operating EBITDA) Stronger balance sheet Pre-AASB 16 leases Post-AASB
Slide 11: Operating Update
OPERATING UPDATE FY21 operating EBITDA expected be $235m to $238m For personal use only Rental ▪ Reconfirm that 2H21 Rental Division operating EBITDA will be broadly in line with 1H21 of $113m ▪ Positive 4Q21 Rental earnings momentum supportive of FY22 growth ▪ Approximately half of equipment off-hi
Slide 12: Pit N Portal
PIT N PORTAL Growth in rental fleet and ramp-up of projects supports strong performance ahead For personal use only ▪ Continued momentum in rental and mining services activity ▪ Rental fleet at full utilisation ▪ 2H21 earnings expected to be broadly in line with 1H21 as a result of commissioning iss
Slide 13: Strong Cash Flow and Capital Management Policy
STRONG CASH FLOW AND CAPITAL MANAGEMENT POLICY Strong free cash flow provides capital allocation optionality supporting prudent capital investment and shareholder distributions For personal use only Cash flow and balance sheet Capital management policy ▪ Momentum is building into FY22 as we deploy t
Slide 14: Thank you
Thank you For personal use only Investor enquiries: Sam Byford corporate@emecogroup.com M: +61 (0) 413 195 958 emecogroup.com