Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — UBS Conference 2018
30 slides from Sgh's conference presentation, Nov 12, 2018
Slide 1: Investor Presentation cover letter
12 November 2018 For personal use only Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 By electronic lodgment Total Pages: 30 (including covering letter) Dear Sir / Madam Investor Presentation Attached is a copy of the Presentation made by Mr Ryan
Slide 2: Focus on execution
Investor Presentation 12 November 2018 For personal use only Focus on execution UBS Investor Presentation 12 November 2018
Slide 3: Disclaimer
Investor Presentation 12 November 2018 Disclaimer For personal use only Basis of Preparation of Slides Included in this presentation is data prepared by the management of Seven Group Holdings Limited (“SGH”) and other associated entities and investments. This data is included for information purpo
Slide 4: Recent Trading
Investor Presentation 12 November 2018 Recent Trading For personal use only Share price performance Share price up 31% over the past 12 months (ranked 7th versus S&P/ASX 100) Recent sell-off with several factors observed which are unrelated to the performance of the Group’s businesses CAT quarte
Slide 5: Outlook
Investor Presentation 12 November 2018 Outlook For personal use only Business Outlook WesTrac continuing Parts volume level to remain strong while service sales will benefit from an expected increase in to benefit from maintenance activities, new machine assembly, and a rise in service rates due t
Slide 6: Group Overview
Investor Presentation 12 November 2018 For personal use only Group Overview Ryan Stokes Chief Executive Officer & Managing Director 5
Slide 7: Group Timeline
Investor Presentation 12 November 2018 Group Timeline For personal use only Sale of WesTrac China $385m equity raising $350m convertible notes TELYS4 conversion $535m proceeds (net of cash) Increased free float Lower cash interest cost EPS and CFPS accretive Attractive point in the cycle
Slide 8: Group Businesses
Investor Presentation 12 November 2018 Group Businesses For personal use only Industrial Services: Equipment solutions Industrial Services Energy leveraged to growth in mining production and infrastructure investment Energy: Diversified energy assets leveraged Australia’s leading mid-cap oil and to
Slide 9: Group Strategic Framework
Investor Presentation 12 November 2018 Group Strategic Framework For personal use only Maximise return to shareholders through Strategic objective long term sustainable value creation Performance Values Disciplined (Results) Accountable Agility Respect Outstanding Commercial Strategically People Acu
Slide 10: Group Highlights
Investor Presentation 12 November 2018 Group Highlights For personal use only Momentum continues in key sectors Significant year of growth and transformation for the Group Strong operational and financial results delivered by WesTrac, Coates Hire, Beach Energy and Seven West Media Group underl
Slide 11: Financials
Investor Presentation 12 November 2018 For personal use only Financials Year ended 30 June 2018 10
Slide 12: Financials Key Results
Investor Presentation 12 November 2018 Financials Key Results For personal use only Underlying results ($m) – continuing operations FY18 FY17 % Change Trading revenue 3,207.9 2,283.3 41% EBITDA1 642.7 327.7 96% EBIT1 496.9 297.2 67% Underlying NPAT1 321.9 187.1 72% Underlying earnings per share1 97
Slide 13: Financials Earnings Summary
Investor Presentation 12 November 2018 Financials Earnings Summary For personal use only Trading Revenue Underlying EBIT $m FY18 FY17 $ Change % Change FY18 FY17 $ Change % Change WesTrac 2,452.2 2,203.7 248.5 11% 202.7 164.3 38.4 23% Coates Hire 649.8 - 649.8 - 129.4 24.7 104.7 424% AllightSykes 91
Slide 14: Capital Management
Investor Presentation 12 November 2018 For personal use only Capital Management 13
Slide 15: Capital Management Overview
Investor Presentation 12 November 2018 Capital Management Overview For personal use only Capital structure strengthened and diversified $385m institutional placement completed in September 2017 – Increased free float from 26% to 34% leading to improved quality and diversity of the institutional sh
Slide 16: Capital Management Debt Maturity Profile
Investor Presentation 12 November 2018 Capital Management Debt Maturity Profile For personal use only Balance sheet strength has enabled strategic initiatives Refinancing has further improved tenor and borrowing cost As at 30 June 2018, the Group had $411m of available Corporate facility upsized
Slide 17: Capital Management TELYS4 Conversion
Investor Presentation 12 November 2018 Capital Management TELYS4 Conversion For personal use only Well supported by market TELYS4 volume from announcement date to conversion date totalled 78% of the register VWAP of $95.05 (high of $103.50) for on-market trades representing a 17% premium to the
Slide 18: Business Review
Investor Presentation 12 November 2018 For personal use only Business Review 17
Slide 19: Group People, Safety and Culture
Investor Presentation 12 November 2018 Group People, Safety and Culture For personal use only Committed to health, safety and welfare of staff Workplace health and safety is the collective responsibility of all the Group’s ~5,400 direct employees Safety reporting and performance are a key focus
Slide 20: Business Review Key Markets
Investor Presentation 12 November 2018 Business Review Key Markets For personal use only Australian commodity export volumes per year Future value of major road and rail infrastructure projects Source: Bloomberg Source: Deloitte Access Economics Reserves / resources to meet domestic east coast gas d
Slide 21: WesTrac Highlights
Investor Presentation 12 November 2018 For personal use only WesTrac Highlights 20
Slide 22: Industrial Services WesTrac Highlights
Investor Presentation 12 November 2018 Industrial Services WesTrac Highlights For personal use only FY18 review Sales up 11% to $2.5bn; growth achieved in all major segments, particularly NSW mining; EBIT up 23% to $203m; margin up 0.8% Record 5.7m parts lines moved in WA and NSW in FY18, up 25%
Slide 23: Coates Hire Highlights
Investor Presentation 12 November 2018 For personal use only Coates Hire Highlights 22
Slide 24: Industrial Services Coates Hire Highlights
Investor Presentation 12 November 2018 Industrial Services Coates Hire Highlights For personal use only FY18 review Group revenue up 7% YoY, underlining continued infrastructure activity levels in eastern states; EBIT up 21% and margin improved by 2.1% to 17.6% All regions outperforming on reven
Slide 25: Energy Highlights
Investor Presentation 12 November 2018 For personal use only Energy Highlights 24
Slide 26: Energy Crux Project
Investor Presentation 12 November 2018 Energy Crux Project For personal use only Commercially compelling field Crux identified by Shell as the primary source of backfill supply to the Prelude FLNG facility which is being commissioned this year Improving commercial viability through use of existi
Slide 27: Energy Beach Investment
Investor Presentation 12 November 2018 Energy Beach Investment For personal use only Strong quarterly operational and financial results Sept 2018 qtrly results Q1 FY19 Q4 FY18 QoQ Δ September quarterly production increased by 7% and revenue increased Production (Mmboe) 7.76 7.23 7% by 9% against J
Slide 28: Media Highlights
Investor Presentation 12 November 2018 For personal use only Media Highlights 27
Slide 29: Media SWM Highlights
Investor Presentation 12 November 2018 Media SWM Highlights For personal use only $m FY18 FY17 FY18 guidance delivered and costs / leverage ahead of target Share of associate NPAT - SWM 58.4 68.3 Underlying EBIT of $236m, at upper end of $220-240m guidance Other media investments 14.2 1.4 Cost r
Slide 30: Q&A
Investor Presentation 12 November 2018 For personal use only Q&A 29