Slide 1: Full Year Results, Final Dividend & Investor Presentation
27 August 2019 Full Year Results, Final Dividend & Investor Presentation Full Year Results SRG Global Limited (‘SRG Global’ or ‘the Company’, ASX: SRG), an engineering-led specialist construction, maintenance and mining services group has delivered its Full Year Financial Results for the twelve mont
Slide 2: Managing Director commentary on financial results
David Macgeorge, Managing Director, commenting on the financial results said “We are pleased to deliver an underlying EBITDA of $32.0m despite a challenging business environment and market conditions. We have record work in hand of $708m which has increased by 36% in the last six months with a numbe
Slide 3: Selected major contract awards since 1 July 2018
Image 2: Selected major contract awards since 1 July 2018 Peter Wade, Chairman, commented “The Board is pleased with our progress against strategy with clear demonstrable success. We will continue to focus on delivering shareholder value into the future through both dividend yield and earnings growt
Slide 4: About SRG Global
About SRG Global SRG Global is an engineering-led specialist construction, maintenance and mining services group operating across the entire asset lifecycle. The Company operates three segments of Construction, Asset Services and Mining Services. For more information about the variety of services of
Slide 5: 2019 Full Year Results Presentation
2019 FULL YEAR RESULTS PRESENTATION 27 August 2019 1
Slide 6: SRG Global Model
SRG GLOBAL MODEL 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 services business 2
Slide 7: Operating Segments
OPERATING SEGMENTS CONSTRUCTION Constructing complex infrastructure Targeted Revenue ASSET SERVICES Sustaining complex infrastructure Recurring Revenue MINING SERVICES Comprehensive ground solutions Recurring Revenue CIVIL Specialist engineering and construction services for complex structures in ke
Slide 8: SRG Global Snapshot
SRG GLOBAL SNAPSHOT SUMMARY SUBSTANTIAL HOLDERS Shares on Issue 440.4m Perennial Value Investment 13.8% Share Price(1) $0.47 Mitsubishi UFG Financial Group, Inc 8.7% Market Capitalisation(1) $207m Board and Management 15.0% Note: (1) Share price and market capitalisation as at 26 August 2019 Source:
Slide 9: FY19 in Review
FY19 IN REVIEW David Macgeorge, Managing Director 5
Slide 10: Executive Summary
EXECUTIVE SUMMARY Revenue in FY19 of $506.4m 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 delivery capability due t
Slide 11: Our People
OUR PEOPLE GLOBAL WORKFORCE HIGHLY SKILLED WORKFORCE 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 Jun 18 LTIFR Jun 19 7
Slide 12: Financial Strength as at 30 June 2019
FINANCIAL STRENGTH AS AT 30 JUNE 2019 CASH IN HAND NET CASH NET ASSETS $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+ Construction Asset Servic
Slide 13: Recent Major Contract Awards
RECENT MAJOR CONTRACT AWARDS Source: Selected recent major contract awards since 1 July 2018 (not a complete list of secured projects) 9
Slide 14: Record Work in Hand… Building Momentum
RECORD WORK IN HAND… BUILDING MOMENTUM 21% 30% 31% $520m 31 DEC 2018 45% $708m 45% CURRENT 25% 48% Construction Asset Services Mining Services 10
Slide 15: Financial Review
FINANCIAL REVIEW Roger Lee, Chief Financial Officer 11
Slide 16: FY19 Financial Performance
FY19 FINANCIAL PERFORMANCE ADJUSTED REVENUE ($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 Gallery Facades in June 2018
Slide 17: Revenue Profile
REVENUE PROFILE REVENUE BY GEOGRAPHY REVENUE BY SEGMENT 17% 16% 27% FY19 57% FY19 57% 26% 27% Australia - East Australia - West International Construction Asset Services Mining Services Our revenue base is becoming more diverse both in geography and segment 60% Continued focus on revenue diversi
Slide 18: Financial Position
FINANCIAL POSITION Balance Sheet - $m FY19 Strong cash position from which the Cash and cash equivalents 58.3 business is able to target future project and growth opportunities. Trade, other receivables & contract assets 118.0 Inventories 13.0 Significant tax assets (related to divested business) wi
Slide 19: Operating Segment Update
OPERATING SEGMENT UPDATE David Macgeorge, Managing Director 15
Slide 20: Construction Update
CONSTRUCTION UPDATE CIVIL / BUILDING 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 FY19 (carrying costs
Slide 21: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION PIMLICO TO TEVAN, STAGE 3 AL ZOUR LNG TANKS, KUWAIT 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 upgrade between Pimlico
Slide 22: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION KEEPIT DAM STOCKYARD HILL WIND FARM 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 South Wales. of 576 gr
Slide 23: Active Case Studies - Construction
ACTIVE CASE STUDIES - CONSTRUCTION GOULBURN VALLEY HEALTH 300 GEORGE STREET 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 Valley Health developmen
Slide 24: Asset Services Update
ASSET SERVICES UPDATE SPECIALIST MAINTENANCE / ACCESS SOLUTIONS 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 presence for “One Stop Shop
Slide 25: Active Case Studies – Asset Services
ACTIVE CASE STUDIES – ASSET SERVICES SOUTH32 WORSLEY ONESTEEL WHYALLA 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 with Onesteel in Whyalla
Slide 26: Active Case Studies – Asset Services
ACTIVE CASE STUDIES – ASSET SERVICES TRANSPOWER NZ GREAT BARRIER REEF Specialist Infrastructure Maintenance Specialist Marine Infrastructure Maintenance SRG Global are providing specialist industrial services SRG Global are undertaking extensive remediation works including removal of existing coatin
Slide 27: Mining Services Update
MINING SERVICES UPDATE PRODUCTION DRILL & BLAST / SPECIALIST GEOTECH 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 Overview Strong asse
Slide 28: Active Case Studies – Mining Services
ACTIVE CASE STUDIES – MINING SERVICES EVOLUTION MINING KALGOORLIE SUPERPIT 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 and blast with Kalgoorl
Slide 29: Outlook
OUTLOOK David Macgeorge 25
Slide 30: Our Strategic Horizons
OUR STRATEGIC HORIZONS Building the most sought-after specialist construction, 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 choice in our special
Slide 31: Outlook
OUTLOOK Record Work in Hand of $708m with 70% recurring revenue mix Strong pipeline of $5.2B in positive growth sectors Maintain conservative net cash balance sheet Leverage site presence to deliver expanded offering to client base Maintain disciplined and targeted approach to project sele
Slide 32: Attractive Investment Proposition
Attractive Investment Proposition Complete Diverse Specialist business model market sector global (end-to-end) exposure footprint Recurring / Robust Growth / repeat balance dividend revenues sheet stock 28
Slide 33: Appendix
APPENDIX 29
Slide 34: Reconciliation of Financial Information
RECONCILIATION OF FINANCIAL INFORMATION ADJUSTED REVENUE ($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 Items (55.1) 20.0 Adj
Slide 35: Solving challenges wherever they are
Solving challenges wherever they are srgglobal.com.au 31