Slide 1: People engineering a clean energy, zero carbon future
1 LGI LIMITED ABN 49 138 085 551 People engineering a clean energy, zero carbon future 1H FY24 Results Presentation 22 February 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by LGI Limited ACN 138 085 551 (LGI or the Company) to provide summary information about the Company and its associated entities. This document is issued on a confidential basis and for information purposes only. The information in this document remains sub
Slide 3: Presenting Today
Presenting Today ADAM BLOOMER DR. JESSICA NORTH JARRYD DORAN DEAN WILKINSON Managing Director Executive Director and Chief Operating Officer and Chief Financial Officer Chief Executive Officer Chief Executive Officer elect Founded LGI in 2009, with CFO with over 20 years’ of decades of experience de
Slide 4: Contents
Contents 1 Business highlights 2 Financial performance 3 Operational performance 4 Bunya Battery Project 5 Strategy, Growth and outlook Appendix Reconciliation to statutory results 4
Slide 5: Business Highlights
Business Highlights 5
Slide 6: LGI's Geographic Footprint
LGI’s Geographic Footprint One of Australia’s leading vertically integrated landfill gas companies Number of sites under contract1 30 up 7.1% in the last 6 months New contracted sites: Sydney (BINGO) Gatton (QLD) 1 as at 22 February 24 Geographical footprint as at 22 February 2024 6
Slide 7: 1H FY24 Results Highlights
1H FY24 Results Highlights Six months ended 31 December 2023 Financial results compared to previous corresponding period (“pcp”) People Safety LGI Team Revenue1 Gross Margin1 1 10% $15.9m $11.5m Reported lost time injuries Increase in total staff 3 Down 3% Up 2% 41,069 hours worked by the team with
Slide 8: Financial Performance
Financial Performance 8
Slide 9: Financial Snapshot
Financial Snapshot Six months ended 31 December 2023 1 Underlying numbers excluding IPO costs and any significant items 9
Slide 10: Key Financial Metrics
Key Financial Metrics Historical earnings growth 1 1 Underlying numbers excluding IPO costs and any significant items 10
Slide 11: Balance Sheet
Balance Sheet • Cash balance increased for anticipated capex in late December early January. • The bulk of the ACCUs created in the six month to 31 December sold to partially fund capex • Capex on projects resulting in increased property plan and equipment • Increase in debt to partially fund capex
Slide 12: Capital Expenditure
Capital Expenditure Capital requirements reflective of pipeline growth opportunities During first half LGI successfully completed an elevated capex program, including • Final stage capex for Bunya battery projects • Canberra network connection costs and power generation equipment costs • Constructio
Slide 13: Cash flow
Cash flow • Underlying removes the cost associated with the IPO, the IPO funds and the repayment of the debt with the IPO funds. • Cash conversion impacted by the sale of stock ACCUs in the six months to 31 December 2023 • Cash drawn from the debt facility to fund capex. • Cash drawn down in Decembe
Slide 14: Debt and facilities
Debt and facilities • During 1H FY24, LGI’s focus on expanding its capabilities in Brisbane (Bunya) and Canberra (Mugga Lane) resulting in a significant step up in capex • Each of these projects will be EBITDA accretive immediately upon commissioning • For the first time, LGI has spent more than $10
Slide 15: Operational Performance and Key Project Update
Operational Performance and Key Project Update 15
Slide 16: Recovered Biogas
Recovered Biogas Sustained gas flow Recovered biogas (Mm3) • Gas flow growth 3% versus 1H FY23 • Increased focus on proactive planning with clients, allowing LGI to maximise biogas recovery 16
Slide 17: Energy Generation
Energy Generation Generation growth reflecting high levels of availability Availability (% of period) LGI’s Target 95% Generator availability remained above internal target of 95% • Continued industry-leading focus on gas conditioning, removing harmful contaminants prior to entering LGI engines (eg
Slide 18: Key Project Updates
Key Project Updates Battery in Brisbane (Bunya), Construction in Bathurst, Generation in Canberra Operationally, LGI has maintained its focus on chasing the gas. LGI continued to drill wells, extend pipework and deliver flares. In addition, focusing on clean gas and generator maintenance has again e
Slide 19: Bunya Battery Project
Bunya Battery Project 19
Slide 20: Bunya Battery Project
Bunya Battery Project Through the deployment of battery technology at LGI existing sites - in conjunction with proprietary software used to dispatch energy - LGI enables enhanced operational performance alongside increased flexibility for key stakeholders in the management of electricity demands. Af
Slide 21: Bunya Battery Project: Revenue outcomes
Bunya Battery Project The Battery was installed and commenced operation on the 19th of January. During the period 19 January to 14 February, engine and battery weighted average price received $355.75MWh vs AEMO average of $181.22MWh – 96% above flat average. LGI is highly encouraged by early observa
Slide 22: Strategy Growth Outlook
Strategy Growth Outlook 22
Slide 23: Contracted Projects Pipeline
Contracted Projects Pipeline Sydney (BINGO) Project (phase 1 - 4MW generators) • Design of gas field and power station commenced • Finalising connection agreement • See ASX announcement https://lgi.com.au/for-investors/#announcements Canberra (Mugga Lane) 20MW generator and battery project MW LFGE •
Slide 24: Projects: Major projects near-term horizon
Projects Major projects near-term horizon As LGI continues to expand projects, the Company is also focused on driving improved performance from existing assets and infrastructure, notably via the installation and deployment of batteries and its proprietary software system, Dynamic Asset Control Syst
Slide 25: FY24 Priorities and outlook
FY24 Priorities and outlook Growth and continued operational excellence FY24 Priorities • Continued focus on Health, Safety, Environment and Quality • Deliver key near term projects, expansion of Canberra, BINGO and Nowra • Explore the expansion of power stations on contracted sites • Work on contra
Slide 26: Questions
Questions 26
Slide 27: Financial reconciliation to statutory results
Financial reconciliation to statutory results 27