Environmental Group Limited · ASX:EGL
Environmental — FY2022 Earnings Presentation
36 slides from Environmental's earnings presentation, Aug 25, 2022
Slide 1: EGL Investor Presentation FY22 Financial Results
EGL Investor Presentation FY22 Financial Results August 2022 Presentation should be read in conjunction with Annual Report 30 June 2022
Slide 2: Disclaimer
Disclaimer EGL advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of EGL’s control. No representation is made as to the accuracy or reliability of forward- looking statements or the assumptions on which they are based.
Slide 3: EGL service offering by division
Total Air Pollution Control (TAPC) provides highly efficient 1 state-of-the-art industrial air pollution control technologies EGL Waste encapsulates our service offering to the that prevent harmful gases, particulate matter, and odours waste industry; world class recycling plants, dust from being re
Slide 4: 4
4
Slide 5: FY22 Financial Results – underlying
FY22 Financial Results – underlying* $57.1M $4.4M $3.0M 22.6% Increase in EBITDA up 34.3% EBIT up 52.1% before Revenue on FY21 before significant significant items items $7.2M $4.5M $1.8M Increase in net Capital raise Cash on hand assets *Underlying profits excludes, FX Losses $270k, Performance Rig
Slide 6: FY22 Financial Results commentary
FY 22 Financial Revenue Results Revenue up by 22.6% for the full year, with all business units posting improved results. TAPC was an outstanding commentary $57.1M performer with revenue up 73% on FY21. Ignite Services provided strong contribution to the group since acquisition. EBITDA EBITDA before
Slide 7: FY22 Financial Results commentary
FY 22 Financial NPAT Results Net Profit after tax attributable to shareholders down 1.4%. A tax expense of $592K was incurred compared to a prior $1.6M period tax credit of $160K. A tax rate of 27.6% is in line with a commentary profitable company. Operating Cash Flow Operating cash flow was $185K f
Slide 8: Executive Management
Executive Management CEO – Jason Dixon. 10 CFO – Andrew Bush. National Sales & National Quality & years executive 25 years experience in Marketing Manager - Paul Operations Manager – experience at Tox Free Industrial services and Gaskett. 14 years Brenda Borghouts. 20 Solutions Limited Contracting i
Slide 9: Senior Management
Senior Management Peter Rankin – 30 Aldo Giachero – 15 Charles Borg – 30 Stirling Schunemann Kiril Nikitin –17 years years experience in years experience in years experience in – 14 years experience engineering experience the boiler and emissions control the Gas Turbine with EGL sales, in heavy indu
Slide 10: Operating Units
02 Operating Units 10
Slide 11: Baltec Inlet and Exhaust Systems
01 Baltec Inlet and Exhaust Systems 11
Slide 12: Baltec IES revenue and EBIT
Revenue Baltec IES supports the gas turbine industry in its role in assisting the transition from coal- FY22 $19.3M powered to renewable energy production. Engineering products and custom designs FY21 $19.2M specifically to meet clients’ requirements: Up 1% Key offering EBIT • Turbine performance en
Slide 13: FY2022 Results Commentary
FY2022 RESULTS COMMENTARY • Strong sales continued with tier 1 OEM added to client base. • Management focus on processes achieved 33% Margin improvement on FY21. • Focus has moved from margin improvement to process, logistics and procurement. • Good project management delivering projects at largely
Slide 14: Key Products
Key Products Diverter Inlet Filter Dampers Houses Silencers Bypass and HRSG Guillotine Heating and Exhaust Stacks Dampers Cooling Systems 14
Slide 15: EGL Energy
TOMLINSON IGNITE EGL Energy
Slide 16: Tomlinson Energy Service revenue and EBIT
Revenue Tomlinson Energy Service (TES) offers a network of service offices across Australia FY22 $27.9M providing 24/7 service, maintenance and FY21 $22.4M repairs of both proprietary equipment and other OEM equipment. Up 24.6% Key Offering EBITDA • Sale and Installation of cost-effective boilers FY
Slide 17: FY2022 Results Commentary
FY2022 RESULTS COMMENTARY • Revenue increased 24.6% for the year, with EBIT up 16.3%, the highest contribution since TES was acquired in 2019. • EBIT margins contracted in the second half due to inflationary cost pressures and a change in the business mix. • After a period of slower capital spend th
Slide 18: FY2022 Results Commentary
FY2022 RESULTS COMMENTARY • Sales for the last quarter since acquisition of $1.28M & EBITDA of $295K was a very strong contribution from Ignite (seasonally strong period). • The team has integrated very well culturally and provided technical advice and services to several areas of the group. • Ignit
Slide 19: Key Products
Key Products Industrial Industrial Large Commercial Steam Boilers Package Burners Hot Water Boilers Thermal Oil Biomass Steam and Heaters Hot Water Generation 19
Slide 20: Total Air Pollution Control
03 Total Air Pollution Control 20
Slide 21: TAPC revenue and EBIT
Revenue FY22 $7.9M TAPC designs, manufactures FY21 $4.6M and services flue gas treatment systems which prevent harmful contaminants being Up 73% discharged into the atmosphere. EBIT Key offering FY22 $1.25M • Scrubbers including dry and wet for the removal FY21 $0.9M of particulates and gaseous cont
Slide 22: FY2022 Results Commentary
FY2022 RESULTS COMMENTARY • Strong revenue growth up 73% with new contract wins in the lithium and rare earth sector. • Two major contract wins for FLSmidth Lithium refinery and Hastings Rare Earth Refinery emissions control systems. • Orders are placed for large componentry of the major projects at
Slide 23: Key Products
Key Products Dry Wet Electrostatic Scrubber Scrubber Precipitators Fabric Filters Aeromixes Flue-Gas (Baghouse) & Cyclones Desulphurisation 23
Slide 24: EGL Water
S EGL @? EGL Water
Slide 25: EGL Water PFAS removal technology
EGL Water division has enhanced patented technology designed to protect our environment by the removal of Per- and polyfluoroalkyl chemical substances (PFAS) from contaminated water. • PFAS was primarily used in aircraft fire fighting as a fire retardant however its use expanded into plastics and cl
Slide 26: FY2022 Commentary
FY2022 COMMENTARY • Commercial Trials removed the regulated PFAS below detectable levels in all high-volume low concentrate liquid waste streams up to 41.5ppb. • At the highest concentrate trial, regulated PFAS was removed to over 99.4%. • For the commercial plant, all process design has been comple
Slide 27: EGL Waste
05 EGL Waste 27
Slide 28: EGL Waste division service offering
EGL Waste division encapsulates offering many of EGL’s service lines to the waste industry • Turmec’s world class recycling plants under the exclusive Australian agency. • Dust extraction and asbestos detection systems in waste processing facilities. • Boilers & autoclaves in the medical waste treat
Slide 29: FY2022 Commentary
FY2022 COMMENTARY • In its first full year of service offering EGL Waste delivered EBIT of $444K. • Included a plant sale for the Rino Resources construction and demolition waste recycling facility for Turmec which processes 475 tones per day. Total order value $AUD 49 million plus TAPC dust extract
Slide 30: Outlook
03 Outlook 30
Slide 31: Outlook
Outlook 01 02 03 04 All business units are Margin and process Continue to develop the “One Executive team forecast to have improved improvement will remain a EGL” culture to sell multiple strengthened with the earnings on FY22 focus of the business services lines to the one appointment of Brenda cus
Slide 32: Forward Outlook
Forward Outlook 05 06 07 08 Tomlinson & Baltec should TAPC with the major EGL Waste – with the EGL Water – commercial have stronger years contract wins is expected to expanded offering and tender sale of PFAS separation delivering on their order deliver very good earnings pipeline in place, increase
Slide 33: EGL outlook continued
EGL outlook continued • EGL has budgeted for improved earnings in all operating divisions. • At this stage we expect EBITDA to increase by over 25% year on year after significant items*. • The business is currently operating in an inflationary environment, the period of our valid pricing has been re
Slide 34: Questions?
Questions? 34
Slide 35: Head Office
HEAD OFFICE Level 1, Suite 1 10 Ferntree Place Disclaimer Notting Hill EGL advises that these presentation slides contain forward looking statements which may be Victoria 3168 subject to significant uncertainties outside of EGL’s control. No representation is made as to the Phone: 03 9763 6711 accur
Slide 36: Appendix A: Reconciliation of Statutory (4E) to underlying results
Appendix A Reconciliation of Statutory (4E) to underlying results Less 4E Significant Underlying FY22(SM) Items Business Revenue 57.1 57.1 Costs of sales (42.7) (42.7) Gross profit 14.3 14.3 Employee expenses (6.4) 0.3 (6.1) Professional fees (1.4) (1.4) Travel expenses (0.8) (0.8) Marketing expense