Emeco Holdings Limited · ASX:EHL
Emeco — H1 2022 Earnings Presentation
25 slides from Emeco's earnings presentation, Feb 16, 2022
Slide 1: Emeco Holdings Limited 1H22 Results
For personal use only Emeco Holdings Limited 1H22 Results 16 February 2022
Slide 2: 1H22 Financial Highlights
1H22 FINANCIAL HIGHLIGHTS For personal use only Revenue Operating EBITDA1 Operating EBIT1 Operating NPAT1 $373m $122m $59m $32m +16% vs 2H21 $322m +2% vs 2H21 $120m +3% vs 2H21 $31m Flat vs 2H21 and pcp +25% vs pcp $298m +3% vs pcp $118m +23% vs pcp $26m Growth in all operating segments, particularl
Slide 3: 1H22 Highlights, Achievements and Outlook
1H22 HIGHLIGHTS ACHIEVEMENTS AND OUTLOOK AND OUTLOOK Solid performance with good momentum across all operating segments and exceptional revenue growth in Pit N Portal. Operating EBITDA of $122m in line with guidance, FY22 outlook of $250-260m For personal use only — TRIFR of 1.8 at 31 December 2021,
Slide 4: Safety and sustainability
For personal use only Safety and sustainability
Slide 5: Safety
SAFETY Emeco reduced its TRIFR by a further 14% since June to 1.8 and remains LTI free for 5 years running For personal use only Total recordable injury frequency rate (TRIFR) Overview 4 ▪ Emeco continues to be lost-time injury (LTI) free, extending the LTI free period to almost 6 years ▪ TRIFR of 1
Slide 6: Sustainability
SUSTAINABILITY Development of Emeco’s sustainability strategy is on track for completion in FY22 For personal use only Overview ▪ Currently developing Emeco’s long-term sustainability strategy which addresses material ESG risks and opportunities is due for completion in FY22 ▪ Sustainability strateg
Slide 7: Financial results
For personal use only Financial results
Slide 8: Operating Profit and Loss
OPERATING PROFIT AND LOSS Steady profitability as underlying activity strengthens, particularly as investment in Pit N Portal delivers strong revenue and positions for sustained earnings growth and returns For personal use only 1H22 Operating Financial Performance 1,2 $m unless otherwise stated 1H21
Slide 9: Statutory Profit and Loss
STATUTORY PROFIT AND LOSS High quality result with statutory results closely aligned to operating results. Significant increase in reported NPAT with lower one-off adjustments post-capital restructure and refinancing in 2021 For personal use only 1H22 Statutory financial performance1,2 $m unless $m
Slide 10: Cash Flow
CASH FLOW Strong cash generation supported by new capital structure, providing ability to deliver capital management and invest in growth in line with strategic objectives For personal use only Overview ▪ Continued strong cash conversion in the period 1H22 cash flow1 of 93% (1H21: 107%) ▪ Good cash
Slide 11: Balance Sheet
BALANCE SHEET Strong balance sheet which supports capital management and growth in line with strategy For personal use only Balance sheet Overview $m 30-Jun-21 31-Dec-21 ▪ 1.0x net leverage 1,2 in line with target of 1.0x whilst funding capital management, growth and one-off cash costs of debt refin
Slide 12: Operating segments
For personal use only Operating segments
Slide 13: Rental
RENTAL Solid performance with growth in the Western Region, momentum building in the Eastern Region Overview For personal use only $m unless otherwise stated 1H21 2H21 1H22 ▪ Business performed well with growth in EBITDA and EBIT ▪ Very tight labour markets impacted our customer’s ability to drive h
Slide 14: Rental – Eastern Region
RENTAL – EASTERN REGION Good momentum building throughout the half, however adverse weather in late 2Q impacted customer operations. Post-weather events, activity has accelerated with COVID absenteeism For personal use only stabilised. Positive outlook for 2H22. $m unless Overview otherwise stated 1
Slide 15: Rental – Western Region
RENTAL – WESTERN REGION Good growth impacted by labour shortages impacting utilisation. Positive outlook, close monitoring of the WA border reopening For personal use only $m unless Overview otherwise stated 1H21 2H21 1H22 ▪ Revenue growth driven by equipment relocated from the Eastern Region in FY2
Slide 16: Pit N Portal
PIT N PORTAL Strong revenue growth created by new projects. Earnings poised for significant growth in FY23 Overview For personal use only $m unless otherwise stated 1H21 2H21 1H22 ▪ Very strong revenue growth as existing and new contracts ramp up, demonstrating Pit N Portal’s ability to win and succ
Slide 17: Force Workshops
FORCE WORKSHOPS Borex integrated. Strong internal and retail activity Overview For personal use only $m unless otherwise stated 1H21 2H21 1H22 ▪ Strong growth in revenue as both external customer work and internal rebuild activity increased Revenue 80.5 75.2 85.5 ▪ Retail demand continues to be stro
Slide 18: Strategy and outlook
For personal use only outlook Strategy and
Slide 19: Our Strategy
OUR STRATEGY Building a sustainable and resilient business generating long term value for shareholders For personal use only Strong balance sheet The lowest cost, highest quality provider ⚫ Maintain a healthy balance sheet with target ⚫ Best-in-class operational capabilities to be the net leverage o
Slide 20: Executing on Our Strategy and Building Shareholder Value
EXECUTING ON OUR STRATEGY AND BUILDING SHAREHOLDER VALUE Proactive management of our assets (equipment and people) to deliver for our customers and build a sustainable growth profile to increase shareholder value For personal use only —Capitalise on Eastern Region opportunities whilst maintaining a
Slide 21: Appendix: Additional information
For personal use only Appendix: Additional information
Slide 22: Fleet Utilisation
FLEET UTILISATION For personal use only Operating utilisation1 1H21 2H21 1H22 Eastern Region 60% 59% 59% Western Region 55% 60% 60% Rental 59% 59% 60% Gross utilisation2 1H21 2H21 1H22 Eastern Region 80% 91% 91% Western Region 92% 88% 90% Rental 85% 89% 90% Notes: 1. Operating utilisation defined as
Slide 23: Reconciliations
RECONCILIATIONS Statutory to operating reconciliation 1H22 cash flow reconciliation For personal use only A$ millions Operating EBITDA 121.7 $m unless Tangible Long-term Working capital (8.6) otherwise asset incentive Tax effect of Net sustaining capex (71.8) stated Statutory impairments program adj
Slide 24: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS Reliance on third party information The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain in formation that has been derived from publicly available For personal use only sources that have not been
Slide 25: Thank you
Thank you For personal use only Investor enquiries: Craig Haskins corporate@emecogroup.com +61 421 029 843 emecogroup.com