Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — Macquarie Australia Conference 2022
29 slides from Sgh's conference presentation, May 3, 2022
Slide 1: Investor Presentation ASX announcement
3 May 2022 For personal use only Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 INVESTOR PRESENTATION Please find attached an investor presentation to be given today by Mr Ryan Stokes AO, CEO and Managing Director of Seven Group Holdings Limited,
Slide 2: Presentation for the Macquarie Australian Equities Conference
For personal use only Presentation for the Macquarie Australian Equities Conference SGH | Industrial Services, Media, Energy and Investments 3 May 2022
Slide 3: Group Overview Businesses and Markets
Macquarie Presentation Seven Group Holdings 2 3 May 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 largest Coates is Australia’s Boral is Australia’s largest Beach Energy is
Slide 4: SGH Disciplined Business Model
Macquarie Presentation Seven Group Holdings 3 3 May 2022 SGH DISCIPLINED BUSINESS MODEL 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 Maximise retu
Slide 5: SGH Delivered Disciplined Value Creation 2012-2022
Macquarie Presentation Seven Group Holdings 4 3 May 2022 SGH DELIVERED DISCIPLINED VALUE CREATION 2012 - 2022 For personal use only $25 Boral bid M&A activity concluded, SGH 69.6% Capital management 7 Share buyback $20 3,4 Beach holding 5 30% Boral 6 takeover $15 WesTrac 2 China sold bid $535m launc
Slide 6: WesTrac Investment Thesis
WESTRAC For personal use only INVESTMENT THESIS
Slide 7: WesTrac Core Plus
Macquarie Presentation Seven Group Holdings 6 3 May 2022 WESTRAC CORE PLUS For personal use only Privileged mining market exposure • Two of the best performing CAT dealers globally with diversified mining and general construction market exposure • Key role of dealer is service and support • Listed C
Slide 8: WesTrac Fleet and Technology Advantage
Macquarie Presentation Seven Group Holdings 7 3 May 2022 WESTRAC FLEET AND TECHNOLOGY ADVANTAGE For personal use only Installed base and average age Autonomous Haulage Systems (AHS) • Large installed fleet base is supported by a strong • Largest population of 377 AHS trucks in territory, which custo
Slide 9: WesTrac Component Rebuilds and PEX
Macquarie Presentation Seven Group Holdings 8 3 May 2022 WESTRAC COMPONENT REBUILDS AND PEX For personal use only Valuable customer solutions • WesTrac has grown additional revenue through its Component Rebuild Centre (CRC) and Parts Exchange Program (PEX) • Delivers cost effective and time effectiv
Slide 10: Zero Emission Future Opportunities
Macquarie Presentation Seven Group Holdings 9 3 May 2022 ZERO EMISSION FUTURE OPPORTUNITIES For personal use only CAT ecosystem and technology well placed to continue to prosper through the energy transition • Major miners are looking to decarbonise their mining fleets which will likely result in mo
Slide 11: Coates Investment Thesis
COATES For personal use only INVESTMENT THESIS
Slide 12: Coates Core Plus
Macquarie Presentation Seven Group Holdings 11 3 May 2022 COATES CORE PLUS For personal use only Leading market position with opportunity to grow share • Coates has an unmatched range of equipment and solutions • Diverse customer base generating > 35,000 hires per month • Australia’s largest fleet o
Slide 13: Industrial Services Coates Outlook
Macquarie Presentation Seven Group Holdings 12 3 May 2022 INDUSTRIAL SERVICES COATES OUTLOOK For personal use only Strong customer activity and market penetration • Construction activity expected to grow strongly over Infrastructure investment by sector the next five years to FY27 • Rebound in engin
Slide 14: Coates Fleet Advantage & Market Position
Macquarie Presentation Seven Group Holdings 13 3 May 2022 COATES FLEET ADVANTAGE & MARKET POSITION For personal use only Largest Fleet supporting customers delivering infrastructure • $1.8bn original cost of total fleet, difficult to replicate in inflationary environment • TU > 61% for total fleet a
Slide 15: Coates Solutions
Macquarie Presentation Seven Group Holdings 14 3 May 2022 COATES SOLUTIONS For personal use only Engineering Solutions Industrial Solutions Power and HVAC Solutions Coates Technology Coates Training Growth strategy is to accelerate Coates’ solutions offerings to deliver turnkey bespoke equipment sol
Slide 16: Boral Investment Thesis
BORAL For personal use only INVESTMENT THESIS
Slide 17: Boral Why We Were Attracted
Macquarie Presentation Seven Group Holdings 16 3 May 2022 BORAL WHY WE WERE ATTRACTED For personal use only Boral’s brand, integrated position, infrastructure and construction exposure will deliver returns comparative to global peers and makes it core plus, to achieve this positioning it requires tu
Slide 18: Boral Priorities and Opportunities
Macquarie Presentation Seven Group Holdings 17 3 May 2022 BORAL PRIORITIES AND OPPORTUNITIES For personal use only SGH focused on executing its Boral value creation strategy • $4.7bn investment reduced to $2.6bn post capital return • Expectation that double-digit EBIT margins should be restored but
Slide 19: Energy Investment Thesis
ENERGY For personal use only INVESTMENT THESIS
Slide 20: Energy Beach Energy (30%)
Macquarie Presentation Seven Group Holdings 19 3 May 2022 ENERGY BEACH ENERGY (30%) For personal use only Benefits of Beach’s diversified portfolio • Six production hubs supplying three distinct gas markets • Otway offshore development (G4 and G5) now delivering gas to market supporting higher winte
Slide 21: Energy SGH Energy
Macquarie Presentation Seven Group Holdings 20 3 May 2022 ENERGY SGH ENERGY For personal use only Crux (SGHE 15%) Longtom (SGHE 100%) • World class LNG asset with pathway to market • East Coast gas project with ~80PJ of resource • Important long-term backfill opportunity for the Shell- • Progressing
Slide 22: Energy Attractive Market Exposures
Macquarie Presentation Seven Group Holdings 21 3 May 2022 ENERGY ATTRACTIVE MARKET EXPOSURES For personal use only Underinvestment in new supply, strengthening demand and renewed energy security concerns • Positive macroeconomic trend for energy, particularly gas as transitional energy source • Glob
Slide 23: SWM Investment Thesis
For personal use only SWM THESIS INVESTMENT
Slide 24: Media Seven West Media (38.9%)
Macquarie Presentation Seven Group Holdings 23 3 May 2022 MEDIA SEVEN WEST MEDIA (38.9%) For personal use only Seven Network returned to #1 with content led growth Total ad supported in-home viewing : on any device • #1 in metro broadcast with 40.3% revenue share (+3.7 points) • 7plus the #1 BVOD ch
Slide 25: Group Outlook
For personal use only GROUP OUTLOOK
Slide 26: Group Leverage
Macquarie Presentation Seven Group Holdings 25 3 May 2022 GROUP LEVERAGE For personal use only Strong credit support for the Group both domestically and from US Private Placement market • Strong free cash flow generation and asset backing • Ability to fund via alternative markets, structured swaps a
Slide 27: Group Supporting Customer's Sustainability
Macquarie Presentation Seven Group Holdings 26 3 May 2022 GROUP SUPPORTING CUSTOMER’S SUSTAINABILITY For personal use only WesTrac • Parts exchange ensures reuse and mitigates waste • Component model enables fleet lives to be extended whilst maintaining fleet uptime requiring smaller fleet to delive
Slide 28: Group Outlook
Macquarie Presentation Seven Group Holdings 27 3 May 2022 GROUP OUTLOOK For personal use only No change to Group guidance up 8 to 10 per cent on FY21 pro-forma EBIT from continuing operations, excluding property • Strong underlying demand and activity across all sectors of the portfolio • WesTrac is
Slide 29: Disclaimer
Macquarie Presentation Seven Group Holdings 28 3 May 2022 DISCLAIMER For personal use only Basis of preparation of slides • Abovementioned Guidance is subject to no material change to market conditions or disruptive weather events • Included in this presentation is data prepared by the management of
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