Emeco Holdings Limited · ASX:EHL
Emeco — 1HFY17 Earnings Presentation
20 slides from Emeco's earnings presentation, Feb 28, 2017
Slide 1: 2017 Interim Results
For personal use only 2017 INTERIM RESULTS 28 February 2017
Slide 2: 1HFY17 Highlights
1HFY17 HIGHLIGHTS Safety Financial Operational Innovation Balance sheet Outlook and For personal use only performance improvement focus 33% reduction in total Significantly improved Operational excellence Worked with Evolution Reduction in net debt Signs of market recordable injuries financial perfo
Slide 3: Health & Safety
HEALTH & SAFETY Best practice safety standards remain a priority and key to Emeco’s business For personal use only 33% reduction in total recordable injuries compared to previous 6 months Pragmatic approach to health and safety with a continued zero-harm goal Standardising best practices and s
Slide 4: 1HFY17 Overview
1HFY17 OVERVIEW Relentless focus on cost discipline and operational excellence underpinning 45% increase in operating EBITDA For personal use only Group utilisation1 Operating Financial Performance 100% A$ million 1H16 1H17 Change on pcp 80% Operating Revenue 109.1 87.8 19.5% 60% Operating EBITDA 2
Slide 5: Business Improvement
BUSINESS IMPROVEMENT Cost discipline and focus on operational excellence driving improved operating EBITDA margins For personal use only Strong cultural focus throughout the organisation on operational excellence and efficiencies Disciplined approach to cost management has driven sustainable cos
Slide 6: Regional Performance
For personal use only Regional Performance
Slide 7: Operational Performance: New South Wales
OPERATIONAL PERFORMANCE New South Wales For personal use only Average gross utilisation of 92% during 1HFY17, up from 85% in 1HFY16 Overview Operating revenue The New South Wales business averaged Increase in operating EBITDA as a result of R&M cost 40 Revenue (A$m) gross utilisation of 92% and
Slide 8: Operational Performance: Queensland
OPERATIONAL PERFORMANCE Queensland For personal use only 40% EBITDA margins, strong earnings momentum and positive growth outlook Overview Operating revenue Queensland averaged gross utilisation of In line with increased demand, focus will be on increasing 87% and operating utilisation of 54% op
Slide 9: Operational Performance: Western Australia
OPERATIONAL PERFORMANCE Western Australia For personal use only Average gross utilisation of 59% during 1HFY17, up from 36% in 1HFY16 Overview Operating revenue Western Australia averaged gross R&M and cartage costs incurred in 1HFY17 associated 20 Revenue (A$m) utilisation of 59% up from 36% in
Slide 10: Operational Performance: Chile
OPERATIONAL PERFORMANCE Chile For personal use only Strategic partnership formed with local partner to improve performance Overview Operating revenue Strategic partnership entered into with Decline in revenue due to the completion of a wet hire 25 Revenue (A$m) RML, a local maintenance services
Slide 11: Operational Performance: Canada
OPERATIONAL PERFORMANCE Canada For personal use only Return to positive cash flow and improved EBITDA in subdued market conditions Overview Operating revenue These innovative transactions took Emeco’s Canadian Emeco’s Canadian business was significantly impacted by the fall in business to a posi
Slide 12: Financial Performance
For personal use only Financial Performance
Slide 13: Financial Summary
FINANCIAL SUMMARY 45% increase in operating EBITDA, 38% operating EBITDA margins achieved For personal use only Operating Financial Performance Increased utilisation in Emeco’s Australian operations combined with ongoing cost savings have driven improved financial performance 1HFY17 operating re
Slide 14: Balance Sheet
BALANCE SHEET Net debt reduced For personal use only Net debt Net debt decreased over this period from $365.4 million to $362.9 million Total debt increased to $396.7 million at 31 December 2016 driven by a $500m depreciation of the Australian dollar against the US dollar denominated 144A notes
Slide 15: Cash Flow
CASH FLOW Positive net cash flow achieved during the period For personal use only Overview A$ million 1H16 1H17 Positive net cash flow of $9.0 million achieved Cash from underlying operations 25.2 19.5 Cash flow from underlying operations of $19.5 million, down from $25.2 million in pcp driven b
Slide 16: Strategy and Outlook
For personal use only Outlook Strategy and
Slide 17: Recapitalisation and Merger Update
RECAPITALISATION AND MERGER UPDATE Transaction on track and integration planning well progressed For personal use only Indicative key dates 13 March 2017 Creditors Scheme Meeting and Extraordinary General Meeting of Shareholders in Sydney 15 March 2017 Scheme second court date 21 March 2017 La
Slide 18: Innovation and Technology
INNOVATION AND TECHNOLOGY Widening our value proposition and deliver on innovative equipment solutions utilising our EOS technology For personal use only Emeco works with existing and potential customers to identify cost reduction and productivity improvement opportunities as part of a series of deb
Slide 19: Strategy and Outlook
STRATEGY AND OUTLOOK Clear strategic focus For personal use only 2HFY17 objectives Increase operating utilisation Execute and integrate merger with Orionstone and Andy’s Ongoing strategic goals Financial discipline Innovation Industry leadership Sustainable growth Continued focus on
Slide 20: Thank you
For personal use only Thank you emecogroup.com