Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — Shareholder Meeting (November 2024)
45 slides from Environmental's shareholder meeting presentation, Nov 19, 2024
Slide 1: 2024 Annual General Meeting Chair's Address, CEO's Address and Presentation
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au 19 November 2024 Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 2024 Annual General Meeting Chair’s Address, CEO’s Address and Presentation The Environmental Group
Slide 2: About EGL
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au About EGL EGL has five business units, all committed to the protection of the environment by improving air quality, reducing carbon emissions, enhancing waste treatment, and lifting water quality. •
Slide 3: Chair's Address
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au Chair’s Address On behalf of the Board, I am pleased to present The Environmental Group Limited’s Chair’s Report for the 2024 financial year. I would like to first address the guidance update release
Slide 4: Chair's Address (continued)
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au substantial progress in our water treatment technologies, particularly in the removal of Per- and polyfluoroalkyl substances (PFAS) from contaminated water with the first commercial PFAS plant achiev
Slide 5: CEO's Address
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au CEO’s Address Thank you Lynn for the introduction and the Board for being here today. I would also like to welcome Lucia Cade to the Board, and I thank Graeme Nayler for his past contribution. WELCOM
Slide 6: Singapore project cost overrun
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au The project is for the engineering, design, and supply of two gas turbine silencer and exhaust gas systems in Singapore. The systems required several design variations including to meet the road tran
Slide 7: EGL Energy
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au EGL Energy EGL Energy had an outstanding year executing our key strategies on margin expansion and product offering expansion with Revenue up 2.7% on pcp to $37.9M with EBITDA up 41% to $5.3M. Revenu
Slide 8: Biosolids market and outlook
Suite 2.01 | Level 2, 315 Ferntree Gully Road, Mount Waverley VIC 3149 03 9763 6711 admin@egl.com.au The growing market for the treatment of biosolids has become an area of focus for us. As PFAS is accumulating in the environment and in the biosolid sludges of our sewer networks, the end of our sewe
Slide 9: The Environmental Group Limited Annual General Meeting
The Environmental Group Limited Annual General Meeting Tuesday, 19 November 2024 at 10.00am AEDT
Slide 10: Acknowledgment of Country
Acknowledgment of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Custodians of the land on which we are located today, and pay our respects to their Elders past, present and emerging. 2
Slide 11: Chair's Welcome
© The Environmental 3 Group Limited
Slide 12: Agenda
Agenda 01 Chair’s Report 02 CEO’s Presentation 03 Notice of Meeting and Proxies 04 Financial Statements and Reports 05 Resolutions 06 Conducting of the Poll 4
Slide 13: Chair's Report
01 Chair’s Report 5
Slide 14: CEO Presentation
02 CEO Presentation 6
Slide 15: Engineering a Sustainable Future
Engineering a Sustainable Future to enhance the circular economy through strong ESG principles. 7
Slide 16: Business units overview
Baltec IES improves the EGL Energy designs, installs, EGL Clean Air encompasses EGL Water offers advanced EGL Waste specialises in flexibility of gas turbines to and provides preventative the design, manufacturing patented technology innovative recycling solutions support renewable energy maintenanc
Slide 17: Key Highlights FY24
Key Highlights FY24 01 02 03 04 05 Revenue grew Normalised Cash at bank Over 50% of our Strong safety by 18.8% on the EBITDA up by $10.1M. Undrawn revenue is now record 359,000 prior 51.7% to facility of $5M. recurring, largely hours worked and comparable $10.1M with service & zero LTI’s. period up
Slide 18: Financial Results
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Slide 19: FY24 Financial Results – underlying
FY24 Financial Results – underlying* $98.3M $10.1M $7.6M 18.8% Increase in EBITDA up 51.7% EBIT up 52.8% Revenue on FY23 before significant before significant items on FY23 items on FY23 $4.4M $4.2M $15.1M Net Profit after tax Operating cash flow Cash $10.1M and up 68% $5M undrawn facilities. *Under
Slide 20: Growth in Earnings
Growth in Earnings Normalised EBITDA $11 Compound Annual Millions Growth 47% for the last 3 years $10.10 $10 $9 $8 $7 $6.66 $6 $5 $4.39 $4 $3.27 $3 FY21 FY22 FY23 FY24 12 *Underlying profits excludes FX Losses $163K, Performance Rights $158K, Redundancy $41K, Integration costs $88K.
Slide 21: Operating Units
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Slide 22: Baltec IES
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Slide 23: Baltec Inlet & Exhaust Systems (Baltec IES)
Baltec Inlet & Exhaust Systems (Baltec IES) provides a range of specialist services to the global gas turbine power industry as it moves to support renewable energy. • The gas turbine market is changing requiring the conversion of base load power plants to run as peaking load turbines to support ren
Slide 24: AGM Commentary: Baltec IES
AGM COMMENTARY • Revenue growth forecast for FY25, supported by high gas turbine industry demand which will result from the continued transition to renewable energy. • Growth of the renewables sector is driving need for gas turbines to have the flexibility to run either in peaking load or base load.
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Slide 26: EGL Energy service network
EGL Energy offers a service network across Australia providing 24/7 sales, service, maintenance and repairs of boilers, gas fired equipment and other original equipment manufacture, optimising energy efficiency. • Our design is the most energy efficient water tube boiler available in Australia. • Se
Slide 27: AGM Commentary: EGL Energy
AGM COMMENTARY • FY24 margin improved significantly with the increased level of service work, while at the same time new boilers sales remained very strong. • Significant investment this half in our service capability to grow recurring revenue. • The national distribution agreement for Fulton produc
Slide 28: EGL Clean Air
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Slide 29: EGL Clean Air technologies
EGL Clean Air provides engineering, supply, installation, commissioning and ongoing service support for a wide range of Industrial Air Pollution Control Systems. Technologies include: For control of all emissions to air, including: • Wet & Dry Scrubbers • Gaseous pollutants • Bag Filters • Mists and
Slide 30: TAPC & Airtight to consolidate under EGL Clean Air
TAPC & Airtight to consolidate under EGL Clean Air • TAPC designs, manufactures and services flue gas treatment systems which prevent harmful contaminants being discharged into the atmosphere. • Airtight’s key offer includes Dust & Fume control by designing, installing, and maintaining air pollution
Slide 31: AGM Commentary: EGL Clean Air
AGM COMMENTARY • The capital spend on new lithium and critical minerals plants globally, has reduced significantly with the fall in the relevant commodity prices leading to plant closures and expansion project cancellations. • The long-term need for refined product remains strong as a key component
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Slide 33: EGL Waste division
EGL Waste division brings together our service lines to provide integrated solutions to the waste industry. The National Waste Policy Action Plan requires an 80% average resource recovery rate from all waste streams following the waste hierarchy by 2030. That is an increase of 17% or 12.9MT more res
Slide 34: AGM Commentary: EGL Waste
AGM COMMENTARY • Our offering to the industry is continuing to grow through not only the sales of Turmec recycling plants, but also with our provision of servicing, maintenance and spares which was launched this year. • Our pipeline for recycling plant tenders remains very strong at $146M. • At leas
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Slide 36: EGL Water division PFAS removal
EGL Water division has enhanced patented technology designed to protect our environment by the removal of PFAS from contaminated water. • PFAS was primarily used in aircraft fire fighting as a fire retardant however its use expanded into plastics and clothing prior to its detrimental impact on our e
Slide 37: PFAS separation from water, soils & biosolids
PFAS separation from water, soils & biosolids • Society and industry are aligning in their need to remove PFAS from the environment. • Our technology is effective but importantly can be provided at a low operating and capital cost, with no additional waste streams generated through our process. • EG
Slide 38: AGM Commentary: EGL Water
AGM COMMENTARY • Reclaim Waste’s liquid waste facility has received draft approval from the Environmental Protection Agency (EPA), with the final licence pending issue, to treat PFAS contaminated liquids at its Laverton facility through EGL’s PFAS separation plant. • This signifies a significant mil
Slide 39: Foam fractionation technology
Effectively removing PFAS from Adaptable Size, Layout water, soil and biosolids, reducing & Configuration companies’ risks & costs. Isolating PFAS from Foam Fraction original input (PFAS Technology output is 1% of its original input) 31
Slide 40: Outlook
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Slide 41: Outlook
Outlook 01 02 03 04 Normalised EBITDA Growth will be driven by Continue to develop the Over 50% of our revenue is expected to increase strong market demand and “One EGL” culture to sell now recurring building a approximately 10-15% FY25. our increasing product multiple services lines to the stronger
Slide 42: Outlook
Outlook 05 06 07 08 EGL Energy – Investment Baltec is set to have strong EGL Air continuing to grow EGL Water developing in service capability & the revenue performance service & maintenance products and markets for Fulton distribution supporting the transition to revenue to improve the quality the
Slide 43: EGL outlook continued
EGL outlook continued • Lucia Cade joined the Board as Non-Executive Director, bringing a wealth of experience to the Board. • Draft EPA approval of our PFAS separation technology is a significant milestone for the Company. • Actively looking to drive growth, with further opportunities progressing o
Slide 44: Appendix A: Reconciliation of Statutory (4E) to underlying results
Reconciliation of Statutory (4E) to underlying results Appendix A 4E Less Significant Underlying FY24($M) Items Business Revenue 98.3 98.3 Costs of sales (69.0) (69.0) Gross profit 29.3 29.3 Employee expenses (11.7) 0.0 (11.7) Professional fees (1.6) (1.6) Travel expenses (1.6) (1.6) Marketing expen
Slide 45: Head Office and Disclaimer
HEAD OFFICE Suite 2.01 | Level 2 315 Ferntree Gully Road Disclaimer Mount Waverley Victoria 3149 The Environmental Group Limited advises that these presentation slides contain forward looking Phone: 03 9541 8699 statements which may be subject to significant uncertainties outside of EGL’s control. N
The Environmental Group — Shareholder Meeting (November 2024) on 6ix