Sgh Limited · ASX:SGH

Sgh — Seven Group Holdings — FY2011 Earnings Presentation

38 slides from Sgh's earnings presentation, Aug 25, 2011

  1. Slide 1: ASX cover letter for results presentation

    25 August 2011 Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000 By Electronic Lodgement Total pages: 38 (including cover letter) Following is a copy of the presentation of Results for the financial year ended 30 June 2011. Yours faithfully

  2. Slide 2: Results for the Year Ended 30 June 2011

    RESULTS FOR THE YEAR ENDED 30 JUNE 2011 Presentation on 25 August 2011

  3. Slide 3: Disclaimer

    Disclaimer  Basis of preparation of slides  Included in this presentation is data prepared for 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 been subject to the same level of revie

  4. Slide 4: Today's Agenda

    Today’s Agenda  Overview Peter Gammell  Industrial Services Jim Walker  Media & Other Investments Peter Lewis  Financials Peter Lewis  Outlook and Subsequent Events Peter Gammell  Closing and Questions Peter Gammell 30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 3.

  5. Slide 5: Overview

    Overview Seven Group Holdings Limited Industrial Services Media Investments 100% 30% Media Investments RCPS 24% Seven West Media $250m Australia 11% 100% 66% 100% 100% Other investments China 100% 46% 100% 100% 50% ~$297m Notes: 1. Group structure as at 5 August 2011 2. Investment values as at 30 Ju

  6. Slide 6: Key Financial Numbers

    Key Financial Numbers Total Group – Statutory Numbers (refer disclaimer) Statutory Statutory Year Ended 2 Months to 30 June 2011 30 June 2010 Profit before tax (excluding significant items) $ 298.0 m $ 39.4 m Profit after tax (excluding significant items) $ 248.3 m $ 28.1 m Significant items (refer

  7. Slide 7: Key Financial Numbers: Summary of Significant Items

    Key Financial Numbers Summary of Significant Items Year Ended 2 Months to 30 June 2011 30 June 2010 Impairment - SWM equity to market value $ (239.1) m $ 0.0 m Impairment - CMJ equity to market value $ (66.6) m $ 0.0 m Impairment - Other $ (18.7) m $ 0.0 m Net gain on sale - SWM transaction $ 54.2 m

  8. Slide 8: Consolidated Profit and Loss

    Consolidated Profit and Loss Total Group – 2011 Actual v 2010 Pro-forma (Refer Disclaimer) Pro-forma Year Ended Year Ended $m 30 June 2011 30 June 2010 % Change Trading revenue 3,162.8 2,417.5 31% Other income 64.8 40.3 61% Share of results from equity accounted investees 143.6 40.5 - % Total revenu

  9. Slide 9: Consolidated Profit and Loss (Excluding National Hire)

    Consolidated Profit and Loss (Excluding National Hire) 2011 Actual v 2011 Scheme Forecast - refer disclaimer Scheme SGH (Excl. NHR) Forecast Year Ended Year Ended $m 30 June 2011 30 June 2011 % Change Trading revenue 3,028.6 2,799.8 8% Other income 63.3 33.3 90% Share of results from equity accounte

  10. Slide 10: Today's Agenda: Industrial Services

    Today’s Agenda  Overview Peter Gammell  Industrial Services Jim Walker  Media & Other Investments Peter Lewis  Financials Peter Lewis  Outlook and Subsequent Events Peter Gammell  Closing and Questions Peter Gammell 30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 9.

  11. Slide 11: WesTrac Group P&L – 2011 v 2010 Pro-forma

    WesTrac Group P&L – 2011 v 2010 Pro-forma (Excluding National Hire) - Refer Disclaimer Actual Pro-forma Change $m 30 June 2011 30 June 2010 % - Australia - revenue & other income 2,256.0 1,635.5 38% - China - revenue & other income 733.5 650.7 13% Total revenue & other income 2,989.5 2,286.2 31% - A

  12. Slide 12: WesTrac Group P&L – 2011 v 2011 Scheme

    WesTrac Group P&L – 2011 v 2011 Scheme (Excluding National Hire) - Refer Disclaimer Actual Scheme Change $m 30 June 2011 30 June 2011 % - Australia - revenue & other income 2,256.0 1,905.0 18% - China - revenue & other income 733.5 832.0 -12% Total revenue & income 2,989.5 2,737.0 9% - Australia exp

  13. Slide 13: WesTrac Group – FY11 Full Year Result

    WesTrac Group – FY11 Full Year Result (Excluding National Hire)  Group performed strongly in key measures  No major safety incidents  Over 5,100 employees in group  Australia and China growing profitably  Momentum to continue into 2012 EBITDA ($m) Pro-forma 2010 300 Scheme 2011 279 244 Actual 2

  14. Slide 14: WesTrac Australia – FY11 Overview

    WesTrac Australia – FY11 Overview (Excluding National Hire) Refer Disclaimer  3,129 employees Actual Pro-forma Change $m 30 June 2011 30 June 2010 %  48% product sales growth WesTrac Australia  Driven by coal - Product sales 1,232.3 831.0 48% and iron ore mining - Product support 1,012.9 804.5 26

  15. Slide 15: WesTrac China – FY11 Overview

    WesTrac China – FY11 Overview Refer Disclaimer  1,976 employees Actual Proforma Change $m 30 June 2011 30 June 2010 %  Strong AUD impacted AUD translated sales WesTrac China - Product sales 626.1 549.9 14%  Both EBIT and EBITDA - Product support 103.8 100.8 3% - Other income 3.6 0.0 - % scheme ta

  16. Slide 16: WesTrac China – (USD) 2011 Actual v 2011 Scheme

    WesTrac China – (USD) 2011 Actual v 2011 Scheme Refer Disclaimer Actual Scheme Change  USD sales consistent with USD $m 30 June 2011 30 June 2011 % Scheme forecast, with improved margins being WesTrac China - Product sales 635.6 642.2 -1% achieved. - Product support 102.9 104.7 -2% - Other income 3

  17. Slide 17: WesTrac Group – The Next 12 Months

    WesTrac Group – The Next 12 Months  Major facility expansion plans well underway  Positioning for growth and long term profitability  Newcastle construction underway with end FY12 handover  Tamworth facility completed  Perth parts distribution centre construction contract awarded  Established

  18. Slide 18: WesTrac Group – The Next 12 Months

    WesTrac Group – The Next 12 Months  Strong market fundamentals to drive revenue and profit growth  Customer value focus critical to long term sustainability  Product sales pipeline remains strong and continues to build  High margin product support revenue growth  Role of emerging Asian economie

  19. Slide 19: WesTrac Group – Bucyrus Opportunity

    WesTrac Group – Bucyrus Opportunity INTRODUCING THE BROADEST PRODUCT RANGE IN THE INDUSTRY Caterpillars acquisition of Bucyrus added 148 unique model configurations to its existing offerings. New products from the One Stop Shop for mining customers includes rope shovels, drills, draglines, highwall

  20. Slide 20: National Hire Group Limited

    National Hire Group Limited Results for year ended 30 June 2011  NPAT $26.5m, including $22.8m share of Year ended 30 Year ended 30 Change $m June 2011 June 2010 % profit from equity accounted investments (Coates Group) National Hire Revenue and other income 135.7 86.9 56%  Equipment Sales and Sup

  21. Slide 21: Today's Agenda: Media & Other Investments

    Today’s Agenda  Overview Peter Gammell  Industrial Services Jim Walker  Media & Other Investments Peter Lewis  Financials Peter Lewis  Outlook and Subsequent Events Peter Gammell  Closing and Questions Peter Gammell 30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 20.

  22. Slide 22: Media Investments P&L - Statutory

    Media Investments P&L - Statutory Year Ended 30 2 Months to 30 $m June 2011 June 2010 Share of Associates - Seven West Media 18.9 0.0 - Seven Media Group 63.3 4.4 - West Australian Newspapers 11.9 3.4 - Consolidated Media Holdings 24.3 3.0 Other income - Other 8.4 0.0 EBIT Contribution 126.8 10.8 No

  23. Slide 23: Media Investments P&L – 2011 Actual v 2010 Pro-forma

    Media Investments P&L – 2011 Actual v 2010 Pro-forma Refer disclaimer Year Ended 30 Pro-forma year Change $m June 2011 to 30 June 2010 % Share of Associates - Seven West Media 18.9 0.0 - % - Seven Media Group 63.3 (3.7) - % - West Australian Newspapers 11.9 22.6 -47% - Consolidated Media Holdings 24

  24. Slide 24: Seven West Media - FY11 Overview

    Seven West Media - FY11 Overview  Successful transition to a listed entity, smooth integration and good results from all divisions  Reported Group profit after tax of $115.1m (12 months of WAN and 2 ½ months of SMG from 12 April 2011)  12 months pro forma EBITDA of $617.5m (Market guidance EBITDA

  25. Slide 25: Other Investments P&L - Statutory

    Other Investments P&L - Statutory Year Ended 2 months to $m June 2011 June 2010 Revenue 52.6 7.4 Other Income 34.7 2.4 Share of results from equity accounted investees 1.3 0.0 Total revenue and other income 88.6 9.8 Expenses (excluding interest and corporate) (73.7) (11.4) EBITDA 14.9 (1.6) Deprecia

  26. Slide 26: Other Investments

    Other Investments Agricultural Bank of China vividwireless  ABC is one of the big 4 banks in China. It has  vividwireless’ first phase of development in Perth the largest retail reach and is the third largest was successfully launched as the first 4G commercial bank in China. network in Australia,

  27. Slide 27: Today's Agenda: Financials

    Today’s Agenda  Overview Peter Gammell  Industrial Services Jim Walker  Media & Other Investments Peter Lewis  Financials Peter Lewis  Outlook and Subsequent Events Peter Gammell  Closing and Questions Peter Gammell 30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 26.

  28. Slide 28: Consolidated Profit and Loss

    Consolidated Profit and Loss Total Group – Statutory Accounts Year Ended 2 Months to $m June 2011 June 2010 Trading revenue 3,162.8 537.6 Other income 64.8 2.8 Share of results from equity accounted investees 143.6 14.3 Total revenue and other income 3,371.2 554.6 Expenses (excluding interest) (2,95

  29. Slide 29: Consolidated Profit and Loss

    Consolidated Profit and Loss Total Group – 2011 Statutory Accounts v 2010 Pro-forma (Refer Disclaimer) Pro-forma Year Ended Year Ended $m 30 June 2011 30 June 2010 % Change Trading revenue 3,162.8 2,417.5 31% Other income 64.8 40.3 61% Share of results from equity accounted investees 143.6 40.5 - %

  30. Slide 30: Consolidated Profit and Loss (Excluding National Hire)

    Consolidated Profit and Loss (Excluding National Hire) 2011 Actual v 2011 Scheme Forecast - Refer Disclaimer Scheme SGH (Excl. NHR) Forecast Year Ended Year Ended $m 30 June 2011 30 June 2011 % Change Trading revenue 3,028.6 2,799.8 8% Other income 63.3 33.3 90% Share of results from equity accounte

  31. Slide 31: Consolidated Cash Flow

    Consolidated Cash Flow Total Group – Statutory Accounts Year Ended 30 2 Months to 30 $m June 2011 June 2010 EBITDA 420.8 58.9 Working capital movements (263.2) (83.4) Share of associates (profit)/loss (143.6) (14.3) Other non-cash items 13.2 (2.0) Dividends received from equity accounted investees 3

  32. Slide 32: Consolidated Balance Sheet

    Consolidated Balance Sheet Total Group – Statutory Accounts As at As at Change $m 30 June 2011 30 June 2010 % Trade and other receivables + other current assets 578.7 452.8 28% Inventories 989.6 682.7 45% Intangible assets 526.2 577.4 -9% Investments 2,366.4 2,120.6 12% Fixed assets 264.9 241.1 10%

  33. Slide 33: Consolidated Debt Profile

    Consolidated Debt Profile Total Group – Statutory Accounts As at As at $m 30 June 2011 30 June 2010 Change % Interest bearing loans and borrowings 908.3 686.2 32% Cash and cash equivalents (71.2) (455.2) -84% Net debt (excluding derivatives) 837.1 231.0 - % Derivative financial instruments - Debt re

  34. Slide 34: Consolidated Debt Maturity Profile

    Consolidated Debt Maturity Profile Total Group – refer disclaimer Net debt (including derivatives) Cash Net debt (including derivatives) Cash Actual as at 30-Jun-11 Overseas Pro-forma as at 30-Jun-11 Overseas After USPP funding Australia Australia 600 600 500 500 411 400 352 400 300 272 250 300 250

  35. Slide 35: Consolidated Investment Listing

    Consolidated Investment Listing Total Group – Statutory Accounts 24 August 2011 30 June 30 June $m Market Value 2011 2010 Seven West Media (Ordinary shares + RCPS) 3, 4 798.1 962.3 - Listed Portfolio 1, 4 366.4 354.5 393.3 Agricultural Bank of China 2, 4 285.3 297.8 - Consolidated Media Holdings 3,

  36. Slide 36: Today's Agenda: Outlook and Subsequent Events

    Today’s Agenda  Overview Peter Gammell  Media David Leckie  Industrial Services Jim Walker  Financials Peter Lewis  Outlook and Subsequent Events Peter Gammell  Closing and Questions Peter Gammell 30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 35.

  37. Slide 37: Outlook & Subsequent Events

    Outlook & Subsequent Events  Subsequent events  Additional long term USPP funding of $200m provided in July 2011  As shown on slide 34 (Consolidated listed investment slide) and in the subsequent event note in the Appendix 4E, there has been share price decline in the SWM & CMH post year end. The

  38. Slide 38: Slide 37.

    30 JUNE 2011 FULL YEAR RESULTS Presentation 25 August 2011 Slide 37.

Seven Group Holdings — FY2011 Earnings Presentation on 6ix