Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — FY2016 Earnings Presentation
30 slides from Sgh's earnings presentation, Aug 3, 2016
Slide 1: Results for the Year Ended 30 June 2016
For personal use only RESULTS FOR THE YEAR ENDED 30 JUNE 2016 Presentation on 3 August 2016 Agility Meeting Change
Slide 2: Group Overview | Disclaimer
Group Overview | Disclaimer Basis of preparation of slides For personal use only 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 purposes only and has not b
Slide 3: Group Overview | Our Businesses
Group Overview | Our Businesses For personal use only Industrial Services SGH Ownership Business Description Strategic Position WesTrac Australia 100% CAT dealer in WA and NSW/ACT #1 equipment solution company in WA and NSW/ACT WesTrac China 100% CAT dealer in five provinces in China One of the lead
Slide 4: Group Overview | Highlights
Group Overview | Highlights Result ahead of guidance For personal use only Underlying EBIT of $302.8m down 4% YoY compared to guidance of 10% down Statutory NPAT of $197.8m representing a $556.9m turnaround from FY15 Result reflects the core demand of the mining production cycle Operating bu
Slide 5: People | Safety Focus
People | Safety Focus Safety LTIFR FY16 FY15 For personal use only Our drive to improve operational performance has not just focused on systems and WesTrac WA 1.4 1.6 technology – safety is paramount and we have made significant improvements WesTrac NSW 0.0 0.0 LTIFR and TRIFR are down across We
Slide 6: Group Overview | Key Financials
Group Overview | Key Financials Underlying Results FY16 FY15 % Change For personal use only Trading revenue $ 2,837.7 m $ 2,779.6 m 2% 1 Earnings before interest and tax (excluding Significant Items) $ 302.8 m $ 314.5 m -4% 1 Underlying net profit after tax (excluding Significant Items) $ 184.2 m $
Slide 7: Financials | Profit and Loss
Financials | Profit and Loss $m FY16 FY15 Change % For personal use only Revenue 2,837.7 2,779.6 2% Other income 76.2 126.6 -40% Share of results from equity accounted investees 90.0 80.1 12% Total revenue and other income 3,003.9 2,986.3 1% Expenses (excl. depreciation, amortisation and interest) (
Slide 8: Financials | Significant Items
Financials | Significant Items $m FY16 FY15 For personal use only Impairment – SWM equity (0.4) 14.7 Impairment – WesTrac China distribution network - (237.6) Impairment – Coates Hire - (114.0) Impairment – Other - (99.8) Gain /( Loss) on sale of investments and MtM on derivatives 4.0 (5.5) Restruct
Slide 9: Financials | Earnings Summary
Financials | Earnings Summary Total WesTrac WesTrac Allight Coates Media Energy Other Other $m For personal use only Group Aus China Sykes Hire Invest. Invest. Revenue 2,837.7 2,150.0 600.5 69.7 - - 5.7 11.8 - Statutory EBIT 306.2 159.9 29.8 (3.8) (4.5) 78.4 (6.6) 75.7 (22.7) Add unfavourable Signif
Slide 10: Financials | Cash Flow
Financials | Cash Flow $m FY16 FY15 Investment cash flow includes: For personal use only – $37.6m in listed investment portfolio Underlying EBIT 302.8 314.5 – $36.6m relating to Beach Energy Add: depreciation and amortisation 38.0 62.1 – $21.1m relating to S3 project Underlying EBITDA 340.8 376.6
Slide 11: Financials | Balance Sheet
Financials | Balance Sheet As at As at Change Increase in trade receivables and $m For personal use only 30 Jun 16 30 Jun 15 % decrease in inventories mainly due to Trade and other receivables 542.7 489.2 11% completion of a large standby Inventories 824.8 929.2 -11% generator contract for a Chine
Slide 12: Financials | Debt Maturity Profile
Financials | Debt Maturity Profile For personal use only At 30 June 2016, the Group had $955m of available undrawn borrowing facilities Current “<1 year” debt includes a $109m equivalent USPP tranche that matures in August 2016 and a number of offshore and short-term OEM facilities that are regu
Slide 13: Financials | Capital Management
Financials | Capital Management Dividend unchanged For personal use only Policy of maintaining the dividend has provided reliable cash returns for shareholders over an extended period of time TELYS dividends have been paid consistently since first issued by Seven Network Limited in 2002 prior to
Slide 14: WesTrac Australia
WesTrac Australia For personal use only WesTrac is a major supplier to the Roy Hill iron ore project in WA
Slide 15: Industrial Services | WesTrac Australia
Industrial Services | WesTrac Australia Value proposition For personal use only WesTrac enables customers to reduce lifecycle equipment ownership costs, thereby minimising new capital investment while maximising production Advancements we have made in parts logistics and product technology such
Slide 16: Industrial Services | WesTrac Australia
Industrial Services | WesTrac Australia Trading revenue up 2% YoY For personal use only Product sales up 22% on the prior comparative period – New equipment sales up 21% YoY driven by Roy Hill project Product – Used equipment sales up 51% YoY sales Change in product mix with an increase in lower
Slide 17: WesTrac China
WesTrac China For personal use only China Construction Bank’s data centre relies on CAT standby generators supplied by WesTrac China
Slide 18: Industrial Services | WesTrac China
Industrial Services | WesTrac China Gains delivered in market share and return on sales For personal use only Focus on organisational efficiency has seen improved ROS% and team performance; FTE headcount reduced by 20% YoY coupled with branch closures in remote provinces CAT lifecycle value prop
Slide 19: Coates Hire
Coates Hire For personal use only Coates Hire is a leading supplier of equipment to the infrastructure sector
Slide 20: Industrial Services | Coates Hire
Industrial Services | Coates Hire Mixed trading conditions in East vs West coast For personal use only NSW and VIC businesses are performing well through infrastructure and construction activity; challenge is the speed of the downturn in WA Revenue down 5% YoY but competing aggressively to win m
Slide 21: Media
Media For personal use only Seven West Media creates and owns the best content and delivers it to the widest multi-platform audience in Australia
Slide 22: Media | Seven West Media
Media | Seven West Media $m FY16 FY15 Change Ongoing TV leadership and focus on new revenue For personal use only 1 Ten years of dominance in TV revenue and ratings share with 2016 being SWM share of associate NPAT 85.0 66.0 29% one of the most successful years to date Other investment income 2 3.
Slide 23: Media | Seven West Media
Media | Seven West Media Delivering world class media content For personal use only Increasing presence in content production and program sales in Asia, Europe and US Program sales and third party productions up 92% Largest Australian producer of premium video content 7Productions, 7Wonder a
Slide 24: Energy
Energy For personal use only SGH Energy is positioned in an East Coast gas market that has attractive demand / supply dynamics
Slide 25: Energy | Asset Overview
Energy | Asset Overview Assets are well-positioned in respective markets $m FY16 FY15 For personal use only Disciplined capital allocation has limited cash outflow in a low price market Revenue 5.7 21.4 Other income 3.2 1.9 No impairment required as a result of judicious acquisitions Expenses (e
Slide 26: Energy | Beach Energy Investment
Energy | Beach Energy Investment Merger benefits Infrastructure ideally located to service For personal use only Synergy of $40m pre-tax per annum, driven by: southern, eastern and LNG markets – Elimination of duplicated costs – Reduction in headcount by 29% – Optimisation of drilling program and
Slide 27: Investments
Investments For personal use only The development of the Seven Hills/ Dianella township in WA
Slide 28: Investments | Property and Listed Portfolios
Investments | Property and Listed Portfolios $m FY16 FY15 Property Portfolio continues to perform Revenue 11.8 - For personal use only KS4 settled on 22 September 2015; assessing options with regard to Other income 36.5 41.5 the KS5, KS6 and KS7 towers Associate NPAT share 1.5 5.0 Total revenue an
Slide 29: Outlook | Key Takeaways and Questions
Outlook | Key Takeaways and Questions We are a diversified conglomerate with market leading businesses and a strong Agility For personal use only balance sheet to take advantage of opportunities through the cycle Meeting Continued Group-wide cost management programs are strengthening the Change resi
Slide 30: For personal use only
For personal use only FY16 Results Presentation | 3 August 2016 | 30