Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — FY2023 Earnings Presentation
36 slides from Environmental's earnings presentation, Aug 24, 2023
Slide 1: FY23 Financial Results
The Environmental For personal use only Group Limited ENGINEERING A SUSTAINABLE FUTURE Investor Presentation FY23 Financial Results August 2023 Presentation should be read in conjunction with the Annual Report 30 June 2023.
Slide 2: Disclaimer
Disclaimer EGL advises that these presentation slides contain forward looking statements which may be subject to significant For personal use only uncertainties outside of EGL’s control. No representation is made as to the accuracy or reliability of forward- looking statements or the assumptions on
Slide 3: Total Air Pollution Control (TAPC) & Airtight Solutions
For personal use only Total Air Pollution Control (TAPC) & Airtight Solutions EGL Waste encapsulates our service offering provides highly efficient state-of-the-art industrial air 1 to the waste industry; world class recycling pollution control technologies that prevent harmful gases, plants, dust e
Slide 4: For personal use only
For personal use only 4
Slide 5: FY23 Financial Results – underlying
FY23 Financial Results – underlying* For personal use only $82.7M $6.7M $4.9M 44.9% Increase in EBITDA up 51.8% EBIT up 64.6% before Revenue on FY22 before significant significant items on items on FY22 FY22 $5.2M $5.0M $9.4M Net cash from Undrawn working Cash on hand operating activities capital fa
Slide 6: FY23 Financial Results commentary
FY23 Financial Revenue Revenue up by 44.9% on the prior year. Most pleasing was Results every business unit recorded growth. TAPC was an For personal use only outstanding performer with revenue up 115% on pcp. EGL commentary $82.7M Energy provided strong revenue growth with a solid contribution from
Slide 7: FY23 Financial Results commentary
FY23 Financial NPAT Results Profit from ordinary activities $2.6M up 68.2% on the pcp at a For personal use only tax rate of 32.6% commentary $2.6M Earnings per share up 51% on pcp. Operating Cash Flow Operating cash flow was $5.2M for the period reflecting the $5.2M improved business processes. Cas
Slide 8: Executive Management
Executive Management For personal use only CEO – Jason Dixon. 10 CFO – Andrew Bush. National Sales & COO – Brenda Borghouts. years executive 25 years experience in Marketing Manager - Paul 20 years Defence and experience for a listed Industrial services and Gaskett. 14 years heavy engineering, ASX 3
Slide 9: Senior Management
Senior Management For personal use only Peter Rankin – 30 Aldo Giachero – Charles Borg – 30 Stirling Kiril Nikitin –17 Stig Brixen – 17 years experience 15 years years experience Schunemann – years engineering years experience in the boiler and experience in in the Gas Turbine 14 years experience in
Slide 10: Operating Units
For personal use only 10 02 Units Operating
Slide 11: Baltec Inlet and Exhaust Systems
For personal use only 01 Baltec Inlet and Exhaust Systems 11
Slide 12: Baltec IES Revenue and EBIT
Revenue For personal use only Baltec IES supports the gas turbine industry in its role in assisting the transition from coal- FY23 $20.1M powered energy generation by providing engineered products and custom designs FY22 $19.3M specifically to meet clients' renewables Up 4.4% applications. Key offer
Slide 13: FY23 Results Commentary
FY23 RESULTS COMMENTARY For personal use only • Strong second half to the year with margin expansion of 3.3% as our focus on process improvement and procurement has lifted returns. • Without the impact of warranty costs of $453K impacting the result from an issue in 2020, EBIT margins would have lif
Slide 14: Key Products
For personal use only Key Products Diverter Inlet Filter Dampers Houses Silencers Bypass and HRSG Guillotine Heating and Exhaust Stacks Dampers Cooling Systems 14
Slide 15: EGL Energy
For personal use only 15 02 EGL Energy
Slide 16: EGL Energy Revenue and EBITDA
Revenue For personal use only EGL Energy offers a network of service offices across Australia providing 24/7 FY23 $36.9M sales, service, maintenance and repairs of FY22 $29.2M boilers, gas fired equipment and other OEM Up 26.3% equipment optimising energy efficiency. Key Offering EBITDA • Sale and I
Slide 17: FY23 Results Commentary
FY23 RESULTS COMMENTARY For personal use only • Tomlinson margin improved in the second half with costs stabilising after shipping and steel prices returned to pre Covid levels. • The cost of new boilers landed and installed during the period were higher than expected which resulted in EBITDA margin
Slide 18: Key Products
For personal use only Key Products Industrial Industrial Large Commercial Steam Boilers Package Burners Hot Water Boilers Thermal Oil Biomass Steam and Heaters Hot Water Generation 18
Slide 19: Total Air Pollution Control & Airtight Solutions
For personal use only 03 Total Air Pollution Control & Airtight Solutions 19
Slide 20: TAPC Revenue and EBIT
Revenue For personal use only FY23$17.0M TAPC designs, manufactures FY22 $7.9M and services flue gas treatment systems which prevent harmful contaminants being Up 115% discharged into the atmosphere. EBIT Key offering FY23 $2.9M • Scrubbers including dry and wet for the removal of particulates and g
Slide 21: FY23 Results Commentary - TAPC
For personal use only FY23 RESULTS COMMENTARY - TAPC • A standout year from the growth in providing off-gas treatment systems into the refining sector to produce lithium and rare earths. • Projects in the lithium and rare earth sector performing very well tracking at margin expectations.\ • Increase
Slide 22: Airtight Solutions – acquired May
AIRTIGHT SOLUTIONS – acquired May 23 For personal use only Airtight’s key offer includes Dust & Fume control by designing, installing, and maintaining air pollution control equipment, Waste- to-Energy via extensive range of waste reduction technologies and after sales servicing. • The acquisition re
Slide 23: Key Products
For personal use only Key Products Dry Wet Electrostatic Scrubber Scrubber Precipitators Fabric Filters Aeromixes Dust extraction (Baghouse) & Cyclones system 23
Slide 24: EGL Waste
For personal use only 24 04 EGL Waste
Slide 25: EGL Waste Revenue and EBITDA
Revenue FY23 $4.8M For personal use only EGL Waste division encapsulates offering many of EGL’s service lines to the waste industry FY22 $0.5M • Turmec’s world class recycling plants under the exclusive Australian agency. • Dust extraction and asbestos detection systems in EBITDA waste processing fa
Slide 26: FY23 Commentary
FY23 COMMENTARY • For the full year EGL Waste generated revenue of $4.8M and delivered For personal use only EBIT of $0.8M. • The installation of the Rino construction and demolition plant has continued to proceed well underway with EGL providing on site supervision. • The tender book for further pl
Slide 27: EGL Water
For personal use only 27 05 EGL Water
Slide 28: EGL Water PFAS removal technology
For personal use only 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 expande
Slide 29: FY23 Commentary
FY23 COMMENTARY • The first commercial plant was delivered on time and on budget in For personal use only September. • Installation commenced on site late November, with the plant completed by mid-January for EPA approval. • During the commissioning, the plant processed various liquid waste streams
Slide 30: Outlook
For personal use only 30 03 Outlook
Slide 31: Outlook
Outlook For personal use only 01 02 03 04 Normalized EBITDA to Margin and process Continue to develop the “One TAPC, Baltec & Engineering improve greater than 30% for improvement will remain a EGL” culture to sell multiple to report directly to COO the financial year. focus of the business. services
Slide 32: Forward Outlook
Forward Outlook For personal use only 05 06 07 08 EGL Energy -Tomlinson Baltec is set to have strong TAPC will be steady with EGL Water – commercial improve margin to drive performance delivering very growing recurring revenue and sale of PFAS separation EBITDA growth year on good earnings growth fo
Slide 33: EGL outlook continued
EGL outlook continued • At this stage we expect EBITDA to increase by over 30% year on year after significant items. For personal use only • Integrating Airtight Solutions onto our systems and aligning cultures and expectations to drive value from the acquisition. • Management's focus will remain on
Slide 34: Questions?
For personal use only 34 Questions?
Slide 35: Head Office and Disclaimer
For personal use only 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 Pho
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 For personal use only Revenue 82.7 82.7 Costs of sales (63.8) (63.8) Gross profit 18.9 18.9 Employee expenses (7.7) 0.0 (7.7) Professional fees (1.7) (1.7) Travel expenses (1.2) (
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