Srg Global Limited · ASX:SRG
Srg Global — Investor Presentation (February 2019)
19 slides from Srg Global's investor presentation, Feb 26, 2019
Slide 1: First Half Financial Results, FY19 Guidance, Interim Dividend & Investor Presentation
26 February 2019 First Half Financial Results, FY19 Guidance, Interim Dividend & Investor Presentation SRG Global Limited (ASX:SRG) (‘SRG Global’ or ‘the Company’), an engineering-led specialist construction, maintenance and mining services group, has delivered its Half Year Financial Results for th
Slide 2: Interim Dividend
A key focus of the business is to leverage the greater combined capability and geographic footprint to maximise opportunities and reduce future earnings volatility, which was a key element of the merger rationale. The business is performing well and we will remain disciplined and focused in pursuing
Slide 3: 2019 Half Year Results Presentation
2019 HALF YEAR RESULTS PRESENTATION 26 FEBRUARY 2019 1
Slide 4: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY REVENUE BY SEGMENT (%) ASX Code SRG Shares on Issue 440.4m 46% Construction Share Price(1) $0.435 26% 55% Asset Services Market Capitalisation(1) $191.6m Cash in Hand(2) $53.4m 19% 35% Net Cash(2) $16.8m 19% Mining Services Enterprise Value $174.8m Notes: (1) Share price
Slide 5: 1H Overview
1H OVERVIEW (6 MONTHS SRG + 4 MONTHS GCS) FINANCIAL INTEGRATION GROWTH 1H Revenue $238.5m* Consistent safety Work in Hand of $520m 1H EBIT of $12.0m* approach adopted Pipeline of $4.5B One business one 1H EBITDA of $16.4m* Secured a number of team culture embraced Cash in hand $53.
Slide 6: 1H Financial Performance
1H FINANCIAL PERFORMANCE (6 MONTHS SRG LIMITED + 4 MONTHS GCS LIMITED) ADJUSTED REVENUE ($M) ADJUSTED EBITDA ($M) ADJUSTED EBIT ($M) 16.4 12.0 238.5 13.6 9.3 159.5 1H FY18 1H FY19 1H FY18 1H FY19 1H FY18 1H FY19 Note 1: See Appendix for Revenue and EBIT adjustments Note 2: 1H FY18 and 1H FY19 includ
Slide 7: Financial Strength as at 31 December 2018
FINANCIAL STRENGTH AS AT 31 DECEMBER 2018 CASH IN HAND NET CASH NET ASSETS $53.4m $16.8m $261m WORK IN HAND OPPORTUNITY PIPELINE 81% 45% $520m $4.5B 25% 5% 30% 14% Construction Asset Services Mining Services Construction Asset Services Mining Services 5
Slide 8: Business Units
BUSINESS UNITS CIVIL BUILDING PRODUCTS ASSET MINING SERVICES SERVICES Targeted Vertically Repeat Constructing Recurring Sustaining Recurring Comprehensive Recurring Complementary integrated complex ground products Project solutions Client infrastructure complex Sales Term Term and infrastructure sol
Slide 9: Business Unit Update: Civil and Products
BUSINESS UNIT UPDATE CIVIL Dams – Early Contractor Involvement (ECI) for first dam project in the US Dams – Secured ECI with SunWater for Fairbairn Dam in Queensland Windfarms – Secured $8.5m Stockyard Hill anchoring project Bridges – Secured $7.9m Charleyong Bridge project with RMS in NSW
Slide 10: Business Unit Update: Building
BUSINESS UNIT UPDATE BUILDING Facades – Secured $30m design, supply and install contract with Multiplex at 300 George St, Brisbane Facades – Secured $14m design, supply and install contract at University of Melbourne’s Connect Initiative Building – Secured $11.5m structures contract with Lendl
Slide 11: Business Unit Update: Asset Services and Mining Services
BUSINESS UNIT UPDATE ASSET SERVICES Oil & Gas – Extended Woodside access contract by four years Refractory Services – First works secured in Australia Bridge Maintenance – Secured first integrated offering for bridge maintenance (rope access, coatings) Continue to leverage market leadership
Slide 12: Outlook
OUTLOOK Work in Hand (WIH) of $520m Strong pipeline of $4.5B in positive growth sectors Continue to maintain conservative net cash balance sheet Underlying FY19 Guidance range (12 months SRG + 10 months GCS): – EBIT of $22m to $27m – EBITDA of $32m to $37m Continue disciplined and targeted
Slide 13: Balanced Business Portfolio
Balanced Business Portfolio Diversity Diversity Diversity in in revenue in market geographic base sectors footprint Differentiated Recurring / Robust service repeat business model offerings revenues (end-to-end) 11
Slide 14: Attractive Investment Proposition
Attractive Investment Proposition High Dividend Robust growth paying balance stock stock sheet Clear Balanced Track long-term business record of strategy portfolio delivery 12
Slide 15: Appendix
APPENDIX 13
Slide 16: SRG Global Financial Adjustments
SRG GLOBAL FINANCIAL ADJUSTMENTS ADJUSTED REVENUE ($M) REVENUE ADJUSTMENTS ($M) 1H FY18 1H FY19 238.5 Reported Revenue 217.5 232.6 ADD ADJUSTMENT ITEMS 159.5 GCS – 49% of Gallery Facades not owned and GCS July / (68.0) - Aug 17 contribution SRG – 50% of JV revenue 10.0 6.0 Total Adjustment Items (58
Slide 17: SRG Global Model
SRG GLOBAL MODEL WHO WE ARE We’re an engineering-led specialist construction, maintenance and mining = services group OUR OPERATING MODEL End-to-end solutions across the entire asset lifecycle 15
Slide 18: Our Strategic Horizons
OUR STRATEGIC HORIZONS Building the most sought-after specialist construction, maintenance and mining services business in the world LEADERSHIP GROWTH Zero Harm industry leader Vertically integrated solutions Recognised employer of choice OPTIMISATION Key partner of choice in our specialised Step ch
Slide 19: Solving challenges wherever they are
Solving challenges wherever they are srgglobal.com.au 17