Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — H1 FY2022 Earnings Presentation
34 slides from Sgh's earnings presentation, Feb 22, 2022
Slide 1: Presentation of Half Year Results
22 February 2022 For personal use only Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 PRESENTATION OF HALF YEAR RESULTS Seven Group Holdings Limited (ASX: SVW) attaches the results presentation slides for the half year ended 31 December 2021. Thi
Slide 2: Investor Presentation for the half-year ended 31 December 2021
For personal use only Investor Presentation for the half-year ended 31 December 2021 SGH | Industrial Services, Media, Energy and Investments 22 February 2022
Slide 3: HY22 Highlights
HY22 Results Presentation 22 February 2022 HY22 HIGHLIGHTS For personal use only Growth driving strong performance • Revenue1 of $3,956m – Up 68% on a reported basis – Up 3% on a pro-forma basis2 • EBIT3 of $511m – Up 29% on a reported basis – Up 6% on a pro-forma basis2 • NPAT3 $302m up 22% • EPS3
Slide 4: People, Safety and Culture
HY22 Results Presentation Seven Group Holdings 3 22 February 2022 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE For personal use only Safety of our people is always our top priority • Mixed safety results during the period impacted by labour constraints, additional use of contractors, and increased acti
Slide 5: Sustainability and Community
HY22 Results Presentation Seven Group Holdings 4 22 February 2022 GROUP OVERVIEW SUSTAINABILITY AND COMMUNITY For personal use only Ongoing focus on Sustainability • Sustainability Report released outlining ten material issues and SGH’s Sustainability Report additional TCFD disclosures released on 3
Slide 6: Group Overview Earnings
HY22 Results Presentation Seven Group Holdings 5 22 February 2022 GROUP OVERVIEW EARNINGS For personal use only Quality businesses with capable management have WesTrac responded to temporary headwinds • New South Wales and Victorian construction shutdowns EBIT $210m • Global supply chain disruption
Slide 7: Group Overview Results
HY22 Results Presentation Seven Group Holdings 6 22 February 2022 GROUP OVERVIEW RESULTS For personal use only Statutory NPAT of $1,221m up 236% includes • $757m from revaluation of equity interest in Boral on 3,956 transition from equity accounting to consolidation 511 2,357 68% 29% 396 • $131m fro
Slide 8: Business Performance
For personal use only BUSINESS PERFORMANCE
Slide 9: Industrial Services: WesTrac Highlights
HY22 Results Presentation Seven Group Holdings 8 22 February 2022 INDUSTRIAL SERVICES WESTRAC HIGHLIGHTS For personal use only Customer demand increasing • Iron Ore, Coal, Copper, Zinc and Lithium commodity prices above long-term average • Customers focused on production to capitalise on this opport
Slide 10: Industrial Services: WesTrac Financials
HY22 Results Presentation Seven Group Holdings 9 22 February 2022 INDUSTRIAL SERVICES WESTRAC FINANCIALS For personal use only Revenue up 4% to $1,921m despite the supply chain disruptions • Capital sales $636m up 3% Product • Product support sales $1,285m up 4.3% sales EBIT margin of 10.9% reduced
Slide 11: Industrial Services: Coates Highlights
HY22 Results Presentation Seven Group Holdings 10 22 February 2022 INDUSTRIAL SERVICES COATES HIGHLIGHTS For personal use only Strong customer activity and market penetration Infrastructure investment by sector • Growth in all four national geographic regions • Growth in all three segments, top-tier
Slide 12: Industrial Services: Coates Financials
HY22 Results Presentation Seven Group Holdings 11 22 February 2022 INDUSTRIAL SERVICES COATES FINANCIALS For personal use only Revenue of $496m up 6% • Driving pricing discipline and delivering improving trends in all segments Margin expansion • EBITDA growth of 6% to $213m • Efficient business mode
Slide 13: Industrial Services: Boral Highlights (69.6%)
HY22 Results Presentation Seven Group Holdings 12 22 February 2022 INDUSTRIAL SERVICES BORAL HIGHLIGHTS (69.6%) For personal use only SGH successfully executing on its Boral value creation strategy • Original $4.7bn investment reducing to $2.6bn post capital return Boral’s construction materials net
Slide 14: Industrial Services: Boral Financials
HY22 Results Presentation Seven Group Holdings 13 22 February 2022 INDUSTRIAL SERVICES BORAL FINANCIALS For personal use only Boral result fully consolidated into SGH financials Revenue of $1,500m from continuing operations • Up 1% despite impact of construction shutdowns and wet weather EBIT of $78
Slide 15: Energy: Beach Energy (30%)
HY22 Results Presentation Seven Group Holdings 14 22 February 2022 ENERGY BEACH ENERGY (30%) For personal use only Earnings growth momentum • Sales revenue of $786m up 11% • NPAT of $213m up 66% • Positive exposure to increasing energy prices and strengthening US$ Benefits of Beach’s diversified por
Slide 16: Energy: SGH Energy
HY22 Results Presentation Seven Group Holdings 15 22 February 2022 ENERGY SGH ENERGY For personal use only Crux (SGHE 15%) Forecast supply-demand gap for global LNG (mmtpa) • World class LNG asset in Browse basin with pathway to market with FID expected in 2H22 • Important long-term backfill opportu
Slide 17: Media: Seven West Media (38.9%)
HY22 Results Presentation Seven Group Holdings 16 22 February 2022 MEDIA SEVEN WEST MEDIA (38.9%) For personal use only Seven Network returned to #1 with content led growth • #1 in metro broadcast with 40.3% revenue share (+3.7 points) • 7plus the #1 BVOD channel • 11m registered and verified users
Slide 18: Group Financials
For personal use only GROUP FINANCIALS
Slide 19: Financials: Boral PPA Balance Sheet
HY22 Results Presentation Seven Group Holdings 18 22 February 2022 FINANCIALS BORAL PPA – BALANCE SHEET Key adjustments: For personal use only • Inventories includes valuation of land Purchase Price Provisional Fair Boral Acquisition Accounting 7 July 2021 ($m) Boral Book Value1 Adjustment Value inv
Slide 20: Financials: Profit and Loss
HY22 Results Presentation Seven Group Holdings 19 22 February 2022 FINANCIALS PROFIT AND LOSS For personal use only $m HY22 HY21 Change % Revenue1 3,956.0 2,357.4 67.8% Other income 24.5 11.5 113.0% Share of results from equity accounted investees 127.4 87.8 45.1% Trading revenue and other income 4,
Slide 21: Financials: Significant Items
HY22 Results Presentation Seven Group Holdings 20 22 February 2022 FINANCIALS SIGNIFICANT ITEMS For personal use only $m HY22 HY21 Revaluation of equity accounted interest on acquisition of Boral 756.8 - Fair value adjustments on acquisition of Boral (13.3) - Boral transaction costs (7.3) - Boral pr
Slide 22: Financials: Earnings from Continuing Operations
HY22 Results Presentation Seven Group Holdings 21 22 February 2022 FINANCIALS EARNINGS FROM CONTINUING OPERATIONS For personal use only Total Invest- $m WesTrac Coates Boral Energy Media Corporate Group ments Revenue from continuing operations 3,956.0 1,920.8 495.6 1,500.4 2.0 - 37.2 - Statutory EBI
Slide 23: Financials: Earnings on a Pro-forma Basis
HY22 Results Presentation Seven Group Holdings 22 22 February 2022 FINANCIALS EARNINGS ON A PRO-FORMA BASIS For personal use only HY21 2H21 FY21 Change $m HY22 Less Less Pro- % Boral Boral forma included Add Boral included Add Boral Reported Pro-forma Reported Pro-forma in results in results reporte
Slide 24: Financials: Cash Flow
HY22 Results Presentation Seven Group Holdings 23 22 February 2022 FINANCIALS CASH FLOW For personal use only $m HY22 HY21 • Reduction in operating cash flow by $6.9m driven by increased WesTrac Underlying EBIT 510.9 396.4 inventory with underlying EBITDA cash conversion reduced to 62% Add: deprecia
Slide 25: Capital and Liquidity Management
HY22 Results Presentation Seven Group Holdings 24 22 February 2022 GROUP OVERVIEW CAPITAL AND LIQUIDITY MANAGEMENT For personal use only Strong credit support for the Group Facility Maturity at 31 Dec 2021 including pro-forma adjustment for Boral capital return • Attractive sector exposure and thema
Slide 26: Financials: Balance Sheet
HY22 Results Presentation Seven Group Holdings 25 22 February 2022 FINANCIALS BALANCE SHEET For personal use only As at As at Change • Trade and other receivables increase of $m 31 Dec 21 30 Jun 21 % 61% reflects the consolidation of $423.8m Trade and other receivables 1,339.1 832.3 61% in Boral cur
Slide 27: Financials: Balance Sheet on a Pro-forma Basis
HY22 Results Presentation Seven Group Holdings 26 22 February 2022 FINANCIALS BALANCE SHEET ON A PRO-FORMA BASIS For personal use only As at As at Change on 31 Dec 2021 30 Jun 2021 pro-forma SGH SGH Boral Purchase Price Other SGH Pro- $m $m % Reported ex-Boral Reported1 Adjustments Adjustments2 form
Slide 28: For personal use only
For personal use only
Slide 29: Outlook and Priorities
HY22 Results Presentation Seven Group Holdings 28 22 February 2022 GROUP OVERVIEW OUTLOOK AND PRIORITIES For personal use only SGH expects positive momentum to continue across all its businesses for the remainder of FY22 and beyond: • WesTrac is expected to deliver FY22 guidance of ‘low single digit
Slide 30: Appendix
For personal use only APPENDIX
Slide 31: Purpose and Values
HY22 Results Presentation Seven Group Holdings 30 22 February 2022 GROUP OVERVIEW PURPOSE AND VALUES For personal use only Our Business Model SGH is a leading Australian diversified operating and investment group with market leading businesses. Recognising and serving exceptional businesses Purpose
Slide 32: Businesses and Markets
HY22 Results Presentation Seven Group Holdings 31 22 February 2022 GROUP OVERVIEW BUSINESSES AND MARKETS For personal use only Industrials Industrials Industrials Energy Media 100% 100% 70% Beach 30% SGHE 100% 39% WesTrac is one of the Coates is Australia’s Boral is Australia’s largest Beach Energy
Slide 33: Key Financials
HY22 Results Presentation Seven Group Holdings 32 22 February 2022 GROUP OVERVIEW KEY FINANCIALS Underlying trading performance1 Significant Items Reported statutory results For personal use only Half-Year Ended 31 Dec 2021 ($m) Continued Discontinued Total Continued Discontinued Total Continued Dis
Slide 34: Disclaimer
HY22 Results Presentation Seven Group Holdings 33 22 February 2022 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 in
Seven Group Holdings — H1 FY2022 Earnings Presentation on 6ix