Srg Global Limited · ASX:SRG
Srg Global — Shareholder Meeting (November 2019)
28 slides from Srg Global's shareholder meeting presentation, Nov 26, 2019
Slide 1: 2019 Annual General Meeting
For personal use only 2019 ANNUAL GENERAL MEETING 26 November 2019 David Macgeorge, Managing Director 1
Slide 2: SRG Global Model
SRG GLOBAL MODEL For personal use only WHO WE ARE We’re an engineering-led specialist construction, maintenance and mining services group OUR OPERATING MODEL End-to-end solutions across the entire asset lifecycle OUR VISION The most sought-after specialist construction, maintenance and mining servic
Slide 3: Operating Segments
For personal use only OPERATING SEGMENTS 3
Slide 4: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY SUBSTANTIAL HOLDERS For personal use only Shares on Issue 445.8m Perennial Value Investment 14.4% Share Price(1) $0.36 Mitsubishi UFG Financial Group, Inc 8.7% Market Capitalisation(1) $165m Board and Management 15.0% Note: (1) Share price and market capitalisation as at
Slide 5: FY19 in Review
For personal use only FY19 IN REVIEW 5
Slide 6: Executive Summary
EXECUTIVE SUMMARY Revenue in FY19 of $506.4m For personal use only Adjusted EBITDA of $32.0m and adjusted EBIT of $22.5m Financial result impacted by: – challenging market conditions – delayed awards of targeted large-scale construction projects – carrying costs to maintain engineering and del
Slide 7: Our People
OUR PEOPLE GLOBAL WORKFORCE HIGHLY SKILLED WORKFORCE For personal use only 27% 27% 24% 1,900 1,900 EMPLOYEES EMPLOYEES 73% 76% Australia International Tech. / Eng. / Mgmt. Operational ZERO HARM ZERO HARM RETAINED LEADERSHIP IMPROVEMENT KEY PEOPLE 86% SAFETY LEADERSHIP 1.84 1.47 >95% TRAINING LTIFR J
Slide 8: FY19 Financial Performance
FY19 FINANCIAL PERFORMANCE For personal use only ADJUSTED REVENUE ($M) ADJUSTED EBITDA ($M) ADJUSTED EBIT ($M) 28.2 506.4 39.1 431.6 32.0 22.5 FY18 FY19 FY18 FY19 FY18 FY19 Revenue increase driven through: – TBS acquisition in New Zealand in March 2018, and – Acquisition of remaining 49% of Galler
Slide 9: Financial Strength as at June 2019
FINANCIAL STRENGTH AS AT 30 JUNE 2019 CASH IN HAND NET CASH NET ASSETS For personal use only $58.3m $12.2m $252m WORK IN WORK IN HAND OPPORTUNITY HAND BY YEAR PIPELINE 5% 27% 21% 27% 20% 25% 20% 31% $708m $708m 54% 45% $5.2b 26% 75% 48% Construction Asset Services Mining Services FY20 FY21 FY22+ Con
Slide 10: Recent Major Contract Awards
RECENT MAJOR CONTRACT AWARDS For personal use only Source: Selected recent major contract awards since 1 July 2018 (not a complete list of secured projects) 10
Slide 11: Record Work in Hand… Building Momentum
RECORD WORK IN HAND… BUILDING MOMENTUM For personal use only 21% 30% 31% $520m 31 DEC 2018 45% $708m 45% CURRENT 25% 48% Construction Asset Services Mining Services 11
Slide 12: Operating Segment Update
For personal use only OPERATING SEGMENT UPDATE 12
Slide 13: Construction Update
CONSTRUCTION UPDATE CIVIL / BUILDING For personal use only Key Focus REVENUE CONTRIBUTION Global focus on specialist markets of dams, bridges, tanks and windfarms Secure vertically integrated scale projects with repeat Tier 1 Building clients FY19 57% Overview Challenging markets conditions in
Slide 14: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION PIMLICO TO TEVAN, STAGE 3 AL ZOUR LNG TANKS, KUWAIT For personal use only Specialist Bridge Construction Specialist LNG Tank Construction The project is part of the $4.3 billion Woolgoolga to Ballina The Al-Zour Import Terminal project for Hyundai Pacific Highway u
Slide 15: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION KEEPIT DAM STOCKYARD HILL WIND FARM For personal use only Dam Anchoring / Strengthening Specialist Wind Farm Anchoring SRG Global are undertaking strengthening works for SRG Global’s scope on this project includes the installation WaterNSW on the Keepit Dam in New
Slide 16: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION GOULBURN VALLEY HEALTH 300 GEORGE STREET For personal use only Integrated Building Structures Specialist Facade Construction SRG Global secured an integrated building structure The 300 George Street project is a mixed-use contract with Lendlease for the Goulburn Va
Slide 17: Asset Services Update
ASSET SERVICES UPDATE SPECIALIST MAINTENANCE / ACCESS SOLUTIONS For personal use only REVENUE CONTRIBUTION Key Focus Sustaining key infrastructure assets across a broad range of industries Step change growth in Recurring / Term Specialist Asset FY19 27% Maintenance Services Leverage site prese
Slide 18: Active Case Studies – Asset Services
ACTIVE CASE STUDIES – ASSET SERVICES SOUTH32 WORSLEY ONESTEEL WHYALLA For personal use only Specialist Access Solutions Specialist Refractory Services SRG Global secured a long-term access solutions contract SRG Global secured a long-term refractory services with South32 Worsley Alumina. contract wi
Slide 19: Active Case Studies – Asset Services
ACTIVE CASE STUDIES – ASSET SERVICES TRANSPOWER NZ GREAT BARRIER REEF For personal use only Specialist Infrastructure Maintenance Specialist Marine Infrastructure Maintenance SRG Global are providing specialist industrial services SRG Global are undertaking extensive remediation works including remo
Slide 20: Mining Services Update
MINING SERVICES UPDATE PRODUCTION DRILL & BLAST / SPECIALIST GEOTECH For personal use only REVENUE CONTRIBUTION Key Focus Selective growth with targeted clients / commodities 16% Drive operational efficiency and high asset utilisation FY19 Leverage site presence for other SRG Global offerings
Slide 21: Active Case Studies – Mining Services
ACTIVE CASE STUDIES – MINING SERVICES EVOLUTION MINING KALGOORLIE SUPERPIT For personal use only Production Drill and Blast Specialist Geotech SRG Global secured a $115m Umbrella Agreement with SRG Global secured a new ground support terms contract Evolution Mining to extend the terms of its drill a
Slide 22: Outlook
For personal use only OUTLOOK 22
Slide 23: Our Strategic Horizons
OUR STRATEGIC HORIZONS Building the most sought-after specialist construction, For personal use only maintenance and mining services business LEADERSHIP GROWTH Zero Harm industry leader Vertically integrated solutions in Building Recognised employer of choice OPTIMISATION Construction Key partner of
Slide 24: Outlook
OUTLOOK For personal use only Record Work in Hand of $708m with 70% recurring revenue mix Strong pipeline of $5.2B in positive growth sectors Maintain conservative net cash balance sheet Leverage site presence to deliver expanded offering to client base Maintain disciplined and targeted ap
Slide 25: Attractive Investment Proposition
For personal use only Attractive Investment Proposition Complete Diverse Specialist business model market sector global (end-to-end) exposure footprint Recurring / Robust Growth / repeat balance dividend revenues sheet stock 25
Slide 26: Appendix
For personal use only APPENDIX 26
Slide 27: Reconciliation of Financial Information
RECONCILIATION OF FINANCIAL INFORMATION For personal use only ADJUSTED REVENUE ($m) REVENUE ADJUSTMENTS ($m) 506.4 FY18 FY19 431.6 Reported Revenue 486.7 486.4 ADD ADJUSTMENT ITEMS 49% of Gallery Facades not owned & GCS July - Aug 17 contribution (75.1) - 50% of JV revenue 20.0 20.0 Total Adjustment
Slide 28: Solving challenges wherever they are
For personal use only Solving challenges wherever they are srgglobal.com.au 28