Emeco Holdings Limited · ASX:EHL
Emeco — Macquarie Australia Conference 2018
22 slides from Emeco's conference presentation, May 2, 2018
Slide 1: Macquarie Australia Conference 2018
For personal use only Emeco Holdings Limited Macquarie Australia Conference 2018 2 May 2018
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER This investor presentation (“Presentation”) has been prepared by Emeco Holdings Limited (ACN 112 188 815) (“Emeco” or “Company”). This Presentation has been prepared in connection with the fully underwritten accelerated non-renounceable pro-rata entitlement offer (“O
Slide 3: Important Notices and Disclaimer (Continued)
IMPORTANT NOTICES AND DISCLAIMER (CONTINUED) Future performance This Presentation contains certain “forward looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “
Slide 4: 1. Introduction to Emeco
For personal use only 1. Introduction to Emeco
Slide 5: Introduction to Emeco
INTRODUCTION TO EMECO We aspire to be best in the world at maximising the performance of heavy earthmoving equipment For personal use only Who we are Our beliefs Our strategy Recent achievements Emeco is a leading provider We refuse to be average – we Mobilise the right people, Pursued operational o
Slide 6: Our Journey
OUR JOURNEY Emeco has significantly reduced leverage, simplified the business and enhanced market position and scale through transformational acquisitions and a focus on operational excellence For personal use only Improved operating utilisation Increased EBITDA 70% 75 67.0 60% 50 44.9 50% 26.1 27.9
Slide 7: 1H18 Financial Performance
1H18 FINANCIAL PERFORMANCE During 1H18, Emeco generated positive operating net profit after tax, the first time since 2H13 For personal use only • Group operating revenue up 132% on 1H17, due to improving market conditions, increased operating utilisation and contributions from the Operating financi
Slide 8: 2. Acquisitions of Force Equipment and Matilda Equipment
For personal use only 2. Acquisitions of Force Equipment and Matilda Equipment
Slide 9: Emeco's Acquisition of Force Equipment
EMECO’S ACQUISITION OF FORCE EQUIPMENT Force Equipment provides Emeco with the 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 complet
Slide 10: Emeco's Acquisition of Matilda Equipment
EMECO’S ACQUISITION OF MATILDA EQUIPMENT As announced on 30 April 2018, Emeco will acquire Matilda Equipment – a strategic acquisition within Emeco’s core capability of equipment rental For personal use only — Emeco to acquire Matilda Equipment, a national equipment rental business based in Toowoomb
Slide 11: Compelling Acquisition Rationale
COMPELLING ACQUISITION RATIONALE Increases earnings whilst further strengthening Emeco’s balance sheet by generating cash and growing the rental fleet with late model, low-hour in-demand equipment For personal use only High quality, young fleet of equipment at work and rent-ready Late model, low-h
Slide 12: Complementary Business Model for Ancillary Equipment
COMPLEMENTARY BUSINESS MODEL FOR ANCILLARY EQUIPMENT Matilda Equipment’s strong EBITDA and high cash flow contribute to Emeco’s deleveraging strategy while supplying Emeco with end of first-life equipment For personal use only Niche business model: Financially achieves: • Strength is in large fleet
Slide 13: Complementary Business Model for Ancillary Equipment
COMPLEMENTARY BUSINESS MODEL FOR ANCILLARY EQUIPMENT Matilda Equipment provides Emeco a channel to replenish / sustain Emeco’s fleet of ancillary equipment For personal use only High EBITDA margin Sustainable returns High free cash flow Strength in large fleet projects, with maintenance supp
Slide 14: Profile of Combined Group Including Matilda
PROFILE OF COMBINED GROUP INCLUDING MATILDA Pre-acquisition Australian revenue by region1 Pro forma post-acquisition estimated Australian revenue by region1,2 For personal use only QLD 29% QLD 32% WA & SA WA & SA 44% 41% NSW & VIC 27% NSW & VIC 26% Pre-acquisition estimated revenue by commodity expo
Slide 15: 3. Strategy & Outlook
For personal use only Outlook 3. Strategy &
Slide 16: Strategy & Outlook
STRATEGY & OUTLOOK Matilda Equipment acquisition is aligned with Emeco's continued pursuit to drive investor returns • Return on assets achieved has increased markedly since FY15 For personal use only • Revenue growth potential given (1) tightening equipment market and increased demand driving rates
Slide 17: FY18 Outlook and Beyond
FY18 OUTLOOK AND BEYOND Expected growth in FY19 accelerated with Matilda Equipment acquisition and positions Emeco well to take advantage of improved market conditions For personal use only — Strong underlying momentum heading into FY19 with new project wins and existing project scope expansions Wha
Slide 18: A. Basis of preparation and operating to statutory financials reconciliation
For personal use only A. Basis of preparation and operating to statutory financials reconciliation
Slide 19: Pro Forma Financials – Basis of Preparation
PRO FORMA FINANCIALS – BASIS OF PREPARATION For personal use only Basis of Preparation The basis of preparation in compiling the Pro forma Statement of financial position and Pro forma earnings and leverage information post Entitlement Offer and Acquisition as disclosed in this presentation and Emec
Slide 20: Operating to Statutory Financials Reconciliation
OPERATING TO STATUTORY FINANCIALS RECONCILIATION For personal use only $m FY17 3Q18 3Q18 run rate Statutory NPAT from continuing operations (156.1) 5.8 Adjusted for: Business acquisition and restructuring costs 88.0 0.0 Impairment expense 10.2 (1.9) Depreciation and Amortisation 61.5 18.2 Net Financ
Slide 21: Operating to Statutory Financials Reconciliation (1H18 Results)
OPERATING TO STATUTORY FINANCIALS RECONCILIATION (1H18 RESULTS) For personal use only 1H18 1H18 1H17 1H17 $m 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) (28.8)
Slide 22: Thank you
For personal use only Thank you emecogroup.com