Emeco Holdings Limited · ASX:EHL
Emeco — FY2021 Earnings Presentation
25 slides from Emeco's earnings presentation, Aug 18, 2021
Slide 1: FY21 Results
Emeco Holdings Limited For personal use only FY21 Results 18 August 2021
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only Revenue Operating EBITDA1 Free cash flow ROC2 $620m $238m $87m 17% Continued growth in revenue, up 15% on FY20 Strong earnings at the high end of guidance Continued strong cash generation, up 12% on Resilient business model demonstrating with increased serv
Slide 3: Highlights and Outlook
HIGHLIGHTS AND OUTLOOK Execution of our strategy of building a sustainable and resilient business, supported by a strong and disciplined capital structure framework, ensured the safe navigation of the challenges of FY21, as we build into FY22 For personal use only — TRIFR of 2.1 at 30 June 2021, dow
Slide 4: Safety and sustainability
For personal use only Safety and sustainability
Slide 5: Safety
SAFETY Emeco reduced its TRIFR by 25% since December to 2.1 and remains LTI free for 5 years running For personal use only Total recordable injury frequency rate (TRIFR) Key developments 4 ▪ Emeco continues to be lost-time injury (LTI) free for another year, extending the LTI free period to over 5 y
Slide 6: Sustainability
SUSTAINABILITY Emeco is continuously investing in its workforce of over 1,100 people to drive long-term sustained success People For personal use only ▪ Project Align is ongoing, enhancing strategic and cultural alignment throughout the workforce ▪ Directly engaged with over 860 employees to align o
Slide 7: Financial results
For personal use only Financial results
Slide 8: Profit and Loss
PROFIT AND LOSS Strong profitability and returns maintained, demonstrating the resilience of the business with 4Q21 momentum providing a platform for recovery in FY22 For personal use only FY21 Operating financial performance1,2,3 $m unless otherwise stated FY20 1H21 2H21 FY21 Commentary 15% revenue
Slide 9: Cash Flow
CASH FLOW Strong cash generation continues, supported by lower interest costs, providing ability to target strategic opportunities and return capital to shareholders For personal use only Overview FY21 cash flow1 ▪ Continued strong cash conversion in the period of 102% (FY20: 92%) ▪ $10m benefit fro
Slide 10: Balance Sheet
BALANCE SHEET $A notes issue and refinancing reduces annual interest costs by $28m, or 64%, compared to FY20, maintaining net leverage below 1.0x post capital management For personal use only Balance sheet Overview $m 30-Jun-20 30-Jun-21 Plant & equipment 632 672 ▪ Full refinancing of US notes annou
Slide 11: Operating segments
For personal use only Operating segments
Slide 12: Rental
RENTAL Rental earnings improved 2% half-on-half, with 4Q21 momentum supporting further earnings recovery in FY22 For personal use only $500m 70.0% Overview 62.6% ▪ Resilient earnings and margins despite weak coal conditions for much of FY21 $450m 56.8% 60.0% ▪ Very strong growth in the Western Regio
Slide 13: Rental – Eastern Region
RENTAL – EASTERN REGION Eastern Region performance has stabilised with opportunities to deploy idle capacity and diversify commodity exposure to drive growth in FY22 For personal use only $350m 80.0% Overview 70.3% ▪ Utilisation and earnings were impacted by soft coal prices in FY21 due to COVID-19
Slide 14: Rental – Western Region
RENTAL – WESTERN REGION Very strong growth supported by project wins in gold and iron ore and increased fleet size from asset transfers For personal use only Overview $180m 50.0% 45.8% ▪ Project wins in gold and iron ore accelerated growth with operating EBITDA up 34% 43.8% $160m 45.0% ▪ Strong dema
Slide 15: Pit N Portal
PIT N PORTAL Continued strong growth in earnings ahead as projects ramp up to production and new projects commence For personal use only Overview ▪ Business has increased 50% over pre-acquisition EBITDA run rate of $20m $150m 30.0% ▪ Commenced significant underground nickel mining services project $
Slide 16: Force Workshops
FORCE WORKSHOPS Workshops continue strong earnings and retail revenue growth, while delivering its strategic advantage of internal asset rebuild capability For personal use only Operating EBITDA1 Overview $10.0m 10.3% 15.0% ▪ External work continued to be solid, combined with margin improvement to d
Slide 17: Strategy and outlook
For personal use only outlook Strategy and
Slide 18: Our Strategy
OUR STRATEGY Building a sustainable and resilient business generating long term value for shareholders For personal use only Strong balance sheet The lowest cost, highest quality provider ⚫ Maintain a healthy balance sheet with leverage ⚫ Best-in-class operational capabilities to be the below 1.0x l
Slide 19: Executed Our Strategy in FY21
EXECUTED OUR STRATEGY IN FY21 In FY21, we made significant progress in our strategic objective of creating a more resilient business, with a strong balance sheet, widened value proposition, diversified mix of customers and commodity exposure For personal use only Strong The lowest cost, Widening the
Slide 20: Initiatives in FY22
INITIATIVES IN FY22 With a refreshed capital structure, strong balance sheet, strong free cash generation and a widened value proposition, we will deliver on the following initiatives For personal use only — Place idle equipment into new projects in the Eastern Region, focused on diversifying commod
Slide 21: Appendix: Additional information
For personal use only Appendix: Additional information
Slide 22: Fleet Utilisation
FLEET UTILISATION For personal use only Operating utilisation1 FY20 FY21 Eastern Region 70% 59% Western Region 50% 58% Rental 64% 59% Gross utilisation2 FY20 FY21 Eastern Region 94% 86% Western Region 86% 89% Rental 91% 87% Notes: 1. Operating utilisation defined as average operating hours per asset
Slide 23: Statutory to Operating Reconciliations
STATUTORY TO OPERATING RECONCILIATIONS FY21 operating1 earnings reconciliation FY21 cash flow reconciliation For personal use only A$ millions EBITDA EBIT NPAT A$ millions Statutory 226.9 107.2 20.7 Operating EBITDA 237.7 Long-term incentive expense 6.0 6.0 6.0 Working capital 6.4 Refinancing advise
Slide 24: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS For personal use only Reliance on third party information No offer of securities The information and views expressed in this Presentation were prepared by Emeco Nothing in this Presentation should be construed as either an offer to sell or a Holdings Ltd (the Compan
Slide 25: Thank you
Thank you For personal use only Investor enquiries: Sam Byford corporate@emecogroup.com M: +61 (0) 413 195 958 emecogroup.com