Emeco Holdings Limited · ASX:EHL
Emeco — 1H18 Earnings Presentation
20 slides from Emeco's earnings presentation, Feb 28, 2018
Slide 1: Emeco Holdings Limited 2018 Interim Results
For personal use only Emeco Holdings Limited 2018 Interim Results 28 February 2018
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Reliance on third party information For personal use only The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been i
Slide 3: 1H18 Highlights
1H18 HIGHLIGHTS Emeco continues to execute on its strategy to become a high quality and low cost provider of mining rental equipment solutions, with increased earnings and scale, enhanced component rebuild capabilities and a stronger balance sheet For personal use only People and Financial Operation
Slide 4: People and Safety
PEOPLE AND SAFETY For personal use only Emeco is a leading employer with safety remaining our priority and underpinning long term success • Emeco continues to build its workforce with ~500 employees across Injury frequency rates Australia as at 31 December 2017, including ~320 skilled tradespeople a
Slide 5: Financial Performance
For personal use only Financial Performance
Slide 6: Financial Performance: Profit and Loss
FINANCIAL PERFORMANCE PROFIT AND LOSS For personal use only During 1H18, Emeco generated positive operating net profit after tax, the first time since 2H13 • Group operating revenue up 132% on 1H17, due to improving market conditions, increased operating utilisation and contributions from the Operat
Slide 7: Financial Performance: Cash Flow
FINANCIAL PERFORMANCE CASH FLOW For personal use only Emeco’s focus on converting its strong operating performance into cash has driven improved cash generation • Significantly improved operating free cash flow performance as a result of: Cash flow summary from continuing operations ─ Increase in op
Slide 8: Financial Performance: Balance Sheet
FINANCIAL PERFORMANCE BALANCE SHEET For personal use only Management continue to focus on improving the strength of Emeco’s balance sheet to support the business through the cycle • Total debt decreased from $474.1 million to $463.1 million during 1H18, driven Leverage metrics continue to improve by
Slide 9: Operational Performance
For personal use only Operational Performance
Slide 10: Force Equipment Acquisition
FORCE EQUIPMENT ACQUISITION Force Equipment provides capability to perform component works for additional earnings and capital expenditure savings For personal use only • Integration of Force has proceeded well following Workshop Perth Kalgoorlie Port Hedland Mackay completion on 30 November 2017 •
Slide 11: Operational Performance: Queensland
OPERATIONAL PERFORMANCE QUEENSLAND For personal use only Queensland continues to grow from strengthening market conditions and increased scale Overview Operating revenue • Significant increase in the scale of Emeco’s Queensland business following 75 acquisitions 57.1 Revenue (A$m) • Continued reduct
Slide 12: Operational Performance: New South Wales
OPERATIONAL PERFORMANCE NEW SOUTH WALES For personal use only New South Wales continues to be a stable contributor Overview Operating revenue • During 1H18, New South Wales continued to make a solid contribution to 75 the group result Revenue (A$m) 47.5 49.7 • The New South Wales business has not be
Slide 13: Operational Performance: Western Australia & South Australia
OPERATIONAL PERFORMANCE WESTERN AUSTRALIA & SOUTH AUSTRALIA For personal use only Significant increase in the scale of Western Australia and South Australia following acquisitions Overview Operating revenue • Business continues to recover as a result of improved utilisation and 75 growth following a
Slide 14: Operational Performance: Victoria, Contract Mining and Canada
OPERATIONAL PERFORMANCE VICTORIA, CONTRACT MINING AND CANADA For personal use only Emeco continues to focus the business on Australian rental services Victoria Operating revenue • The Victorian fleet (acquired from the Andy’s acquisition during 2H17) is 75 predominantly civil earthmoving equipment w
Slide 15: Strategy and Outlook
For personal use only Outlook Strategy and
Slide 16: Focus: FY18 and Beyond
FOCUS: FY18 AND BEYOND Emeco is strategically well positioned to take advantage of improved market conditions, providing significant For personal use only opportunities for future earnings growth What we're — High demand for equipment with limited supply and increasing lead times seeing in the — Cus
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK Emeco continues to pursue its Australia-focused strategy to drive investor returns • Return on assets achieved has increased markedly since FY15 For personal use only • Revenue growth potential given tightening equipment market and increased demand driving rates and excess capacit
Slide 18: Appendix
For personal use only Appendix
Slide 19: Operating to Statutory Reconciliation
APPENDIX OPERATING TO STATUTORY RECONCILIATION For personal use only 1H18 1H18 1H17 1H17 A$m unless otherwise stated Statutory Operating Statutory Operating Revenue 171.1 171.1 73.6 73.6 EBITDA1 57.5 67.0 25.7 27.9 EBITDA1 margin 33.6% 39.2% 34.5% 37.9% EBIT2 22.8 37.5 1.1 3.5 NPAT3 (0.3) 14.4 (31.7
Slide 20: Thank you
For personal use only Thank you emecogroup.com