Perenti Limited · ASX:PRN
Perenti — FY2024 Earnings Presentation
23 slides from Perenti's earnings presentation, Aug 20, 2024
Slide 1: FY24 Results
FY24 Results 20 August 2024 1 Perenti Limited ABN 95 009 211 474
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Perenti Limited ABN 95 You should consult your own advisors as to legal, tax, financial and related matters and conduct your own 009 211 474 (ASX:PRN) (“Perenti”) as a summary of
Slide 3: Diversified mining services portfolio, underground experts
Diversified mining services portfolio, underground experts 10,500+ 100+ 60+ 12 10+ PEO PLE CLI E NT S PROJECT S CO UN T RI ES CO MMO D I T I ES 68% 67% 62% UNDERGROUND INVESTMENT GRADE GOLD COUNTRIES Note: Percentages by operation, country and commodity are calculated by revenue 3
Slide 4: FY24: Exceptional free cash flow built on sustainable growth
FY24: Exceptional free cash flow built on sustainable growth REVENUE EBITDA EBIT(A) EBIT(A) MARGIN $3.34B $645M $314M 9.4% 16% on FY23 17% on FY23 19% on FY23 23 bps on FY23 Addition of the DDH1 group and EBITDA was in line with revenue Record group EBIT(A) was Margins have lifted due to bet
Slide 5: Sustainability: Supporting future earnings
Sustainability: Supporting future earnings OUR SUSTAINABILITY IMPERATIVES Caring for our people Valuing the environment Acting ethically & & communities & enabling the energy responsibly transition ACTIONING OUR SUSTAINABILITY PRIORITIES Preventing adverse life Creating safe and respectful Achieving
Slide 6: People: The foundation of our business
People: The foundation of our business • Our people are the foundation of our business, underpinning our performance and positive reputation. • Investment in employee development continued, including 923 apprenticeship and traineeship programs and 201 staff completing leadership programs. • Developi
Slide 7: Group Result: Consistent growth on improved margins
Group Result: Consistent growth on improved margins REVENUE EBITDA EBIT(A) EBIT(A) MARGIN $3,342M 16% vs FY23 $645M 17% vs FY23 $314M 19% vs FY23 9.4% 23 bps vs FY23 FY24 HIGHLIGHTS • Overall group performance has delivered a third consecutive year of growth, illustrating the strength of our
Slide 8: Contract Mining: Consistency from core business
Contract Mining: Consistency from core business REVENUE EBITDA EBIT(A) EBIT(A) Margin $2,542M 3% vs FY23 $525M 2% vs FY23 $287M 6% vs FY23 11.3% 97 bps vs FY23 298 (Savannah) 11.8% (Savannah) 292 287 (Iduapriem) 11.8% 11.3 (Iduapriem) % FY24 HIGHLIGHTS • Contract Mining represents 76% of Gro
Slide 9: Drilling Services: Integration successful, upside ahead
Drilling Services: Integration successful, upside ahead REVENUE EBITDA EBIT(A) EBIT(A) Margin $598M 195% vs FY23 $110M 220% vs FY23 $51M 243% vs FY23 8.5% 119 bps vs FY23 FY24 HIGHLIGHTS • On 6 October 2023, Perenti acquired 100% of DDH1 Limited. • The four DDH1 Ltd brands, DDH1 Drilling, Ra
Slide 10: Mining Services and idoba: Improved performance
Mining Services and idoba: Improved performance REVENUE EBITDA EBIT(A) EBIT(A) Margin $202M vs FY23 $53M vs FY23 $25M vs FY23 12.6% vs FY23 FY24 HIGHLIGHTS • The FY24 result was largely driven by improved performance in BTP and Supply Direct. • BTP remained the largest contributor of revenue
Slide 11: Financial Results: Underlying profit and loss
Financial Results: Underlying profit and loss $M1 FY23 FY24 Change Revenue 2,880.1 3,342.0 16.0% • Another year of record revenue, record EBITDA, record EBIT(A), and record NPAT(A). EBITDA 552.6 644.6 16.7% • Margin improved due to Mining Services and Drilling Services and a cost reduction at EB
Slide 12: Financial Results: Reconciliation to statutory
Financial Results: Reconciliation to statutory $M REVENUE EBITDA EBIT NPAT • The statutory profit for FY24 included several abnormal items presented as “non- Underlying results 3,342.0 644.6 314.2 165.8 underlying" items in the reconciliation table. Add non-recurring items below • The final purchase
Slide 13: Financial Results: Cash flow and cash conversion
Financial Results: Cash flow and cash conversion $M FY23 FY24 Change Operating cash flows (before interest and tax) 522.7 633.4 21% • Cash flow conversion improved to 98%. • Free cash flow after all capex was $184.5m in FY24. Operating cash conversion1 95% 98% 366 bps • Net capital expenditure o
Slide 14: Financial Results: Liquidity and capital management
Financial Results: Liquidity and capital management GROUP DEBT ($M) FY23 FY24 US guaranteed senior notes (A$) – 2025 expiry 649.7 303.6 • Further improvement to the Balance Sheet, with net debt reducing to $469.5m. US guaranteed senior notes (A$) – 2029 expiry - 523.8 • Leverage is now at the lower
Slide 15: DDH1 Acquisition: Successful integration
DDH1 Acquisition: Successful integration Strong cash flow and additional upside ahead • The Drilling Services Division now includes the previous four DDH1 brands plus Ausdrill. • Significant cash, corporate and tax synergies have been realised, while others will continue to deliver benefits. • Marke
Slide 16: FY25: Group Executive Committee
FY25: Group Executive Committee Departures of two executives will create a leaner executive level Mark Norwell Michael Ellis Gabrielle Iwanow Ben Davis Peter Bryant MANAGING DIRECTOR AND CEO CHIEF FINANCIAL OFFICER PRESIDENT CONTRACT MINING PRESIDENT DRILLING SERVICES OUTGOING CHIEF FINANCIAL OFFICE
Slide 17: Looking Ahead: Work in Hand and Pipeline
Looking Ahead: Work in Hand and Pipeline Region ($B) Work in Hand Pipeline Australia 2.4 5.3 West Africa 1.2 2.7 Operation ($B) Work in Hand Pipeline Botswana 1.0 1.0 Underground 3.3 14.2 North America 0.3 4.1 Surface 1.2 0.9 Southern Africa 0.2 2.7 Drilling 0.6 0.8 TOTAL 5.1 15.9 TOTAL 5.1 15.9 Com
Slide 18: FY25: Guidance
FY25: Guidance REVENUE $3.4B to $3.6B HOW WE WILL DELIVER • Safe delivery of our services, targeting no life changing events. EBIT(A) $325M to $345M • Continue to win and extend projects that deliver sustainable growth. • Generation of free cash flow as a priority. LEVERAGE 0.6x to 0.7x • Maintain d
Slide 19: Consistently meeting or exceeding guidance
Consistently meeting or exceeding guidance REVENUE Underlying EBIT(A) 3,600 400 3,200 350 REVENUE ($MILLIONS) Initial Guidance Initial Guidance 2,800 300 EBIT(A) ($MILLIONS) 2,400 250 2,000 1,600 200 1,200 150 800 100 400 2,438 2,880 3,342 3,500 50 176 264 314 335 - - FY22 FY23 FY24 FY25e FY22 FY23
Slide 20: Thank you
Thank you 20
Slide 21: APPENDIX: Cash flow waterfall
APPENDIX: Cash flow waterfall Financing cash flow ($M) Operational cash flows and capex ($M) Note: NCI relates to non-controlling interests and primarily relates to the Sumitomo equity contribution for idoba. 21
Slide 22: APPENDIX: Underlying financials
APPENDIX: Underlying financials Group ($M) FY23 FY24 Contract Mining ($M) FY23 FY24 Revenue 2,880.1 3,342.0 Revenue 2,479.3 2,542.2 EBITDA 552.6 644.6 EBITDA 538.0 524.8 EBIT(A) 264.1 314.2 EBIT(A) 304.1 287.3 NPAT(A) 131.8 165.8 EBIT(A) Margin 12.3% 11.3% Cash Conversion 95% 98% Net Debt 499.0 469.
Slide 23: APPENDIX: FY24 revenue breakdown
APPENDIX: FY24 revenue breakdown Revenue by Project (%) Group Underground Surface Mining Services1 Drilling Services Top Project 6% 10% 33% 79% 8% Top 2 – 10 projects 40% 58% 67% 11% 35% Top 11-20 projects 23% 27% – 7% 19% All others 31% 5% – 3% 39% Revenue by Country (%) Australia 51% 46% – 85% 93%