Slide 1: LGI Limited FY24 Results Presentation
LGI Limited FY24 Results Presentation 23 AUGUST 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 information derived therefrom. The Company has not carried out due diligence investigations in connection with the prepara
Slide 3: Contents
Contents 1 Results Highlights 2 Financial Performance 3 Operational Information 4 Project Update 5 Outlook & Summary 6 Appendix
Slide 4: Who is LGI?
Who is LGI? LGI installs, operates and maintains Electricity sales biogas extraction infrastructure on and FCAS landfills at competitive rates services to NEM BIOGAS FLARE One of Australia’s leading POWER GENERATION BIOGAS vertically integrated landfill RECOVERY AND FCAS³ gas companies BIOGAS Founde
Slide 5: Results Highlights
Results Highlights
Slide 6: Key Financial Metrics
Key Financial Metrics Historical earnings and margin growth NET REVENUE ($M) UNDERLYING EBITDA ($M), MARGIN UNDERLYING EBIT ($M), MARGIN 30.9 51% 49% 30.4 47% 44% 9.8 9.9 14.4 15.3 34% 24.1 32% 32% 12.3 8.1 15.0 19% 6.6 2.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 STATUTORY EBITDA
Slide 7: Profitability Drivers
7 Profitability Drivers Electricity and ACCU price movement Of the 3 key commodities which create the bulk compared to EBITDA movement of LGI’s revenue, 2 of them declined in value across FY23 & FY24. Notwithstanding this, LGI was able to grow EBITDA in both FY23 & FY24 KEY COMMODITY PRICE MOVEMENTS
Slide 8: Expanding Portfolio & Operations
Expanding Portfolio & Operations KEY Expanding network of landfill, BIOGAS FLARE generation and carbon sites¹ GENERATORS ON SITE 32 CARBON SITES Total contracted sites² BATTERY +14% vs FY23 CONTRACTED SITE UNDER ASSESSMENT 08 GLADSTONE Power BUNDABERG CENTRAL stations BUNDABERG WEST HERVEY BAY MARYB
Slide 9: Financial Performance
Financial Performance
Slide 10: Profitability and Return
Profitability and Return Enhanced profitability $’000 FY24 FY23 % Change FY24 underlying EBITDA +6% (vs FY23) Statutory Revenue And Other Income (excl. interest income) 33,310 32,303 3% • Elevated gas flows contributed to higher Net Revenue2 30,876 30,419 2% revenue and higher EBITDA throughout FY24
Slide 11: Revenue
Revenue Revenue contribution growing across multiple sources FY24 total revenues +2% versus FY23 NET REVENUE BY SOURCE¹ $’000 FY24 FY23 Change FY23 FY24 Electricity (including hedge position and FCAS) 13,371 13,323 1% 7% 8% Renewable Large Scale Generation Certificates (LGCs) 2,774 3,194 -13% 11% 9%
Slide 12: Generation – Electricity and LGCs
Generation¹ – Electricity and LGCs A$ ‘000 FY24 FY23 % Change Underlying growth in power stations and MWhs Operating Metrics Biogas Flows2 (M cubic meters) 83.4 77.1 8% MWhs Generated 96,326 94,435 2% METHANE COMBUSTION (CARBON ABATEMENT) LGCs Created 95,683 92,540 3% Profitability BIOGAS Electricit
Slide 13: Carbon Abatement - ACCUs
Carbon Abatement¹ - ACCUs A$ ‘000 FY24 FY23 % Change Operating Metrics Ongoing ACCU volume growth Biogas Flows² (M cubic meters) 94.0 89.9 5% ACCUs Acquired Or Created 432,804 420,804 3% METHANE COMBUSTION (CARBON ABATEMENT) Profitability ACCU Revenue ($’000) 14,633 13,505 8% BIOGAS FLARE Total Reve
Slide 14: Infrastructure Construction & Landfill Gas Management
Infrastructure Construction & Landfill Gas Management A$ ‘000 FY24 FY23 % Change LGI as a trusted infrastructure partner Profitability Infrastructure Construction Revenue ($’000) 1,832 1,643 12% METHANE COMBUSTION (CARBON ABATEMENT) Landfill Gas Management Revenue ($’000) 615 635 -3% Total Revenue G
Slide 15: Capital Expenditure
Capital Expenditure LGI’s capital requirements are reflective of its pipeline growth opportunities CAPEX ($M), % OF REVENUE 74% • During FY24, LGI successfully completed an elevated capex program • Capex slated for FY25 includes: o Mugga Lane generation unit completion and battery purchase; o Constr
Slide 16: Balance Sheet
Balance Sheet Considerable growth in asset base $’000 30-Jun-24 30-Jun-23 Assets • Growth in Plant and Equipment funded partially Cash 2,438 52 from operating cashflow and debt Trade Receivables 876 1,157 • ACCU balance growth driven by volume and ACCU Environmental Certificates 14,035 11,401 partia
Slide 17: Cash Flow
Cash Flow Operating cash flow positive while growth investment continues $’000 FY24 FY23 Underlying EBITDA 15,281 14,416 • Underlying operating cashflow increased 24% versus FY23 Statutory Operating Cash Flow 9,913 6,958 Underlying adjustment in relation to the IPO - 1,000 • Underlying EBITDA cash c
Slide 18: Operational Update
Operational Update
Slide 19: Growing Biogas Flows
Growing Biogas Flows LGI continues to "chase the BIOGAS FLOW AND ACCU GROWTH gas", ensuring maximum 500,000 140 practical gas flow is achieved at each site 450,000 >35% increase in biogas flows and >20% increase in ACCU volume 120 400,000 • Integral to LGI's strategy is the underlying 113 115 Millio
Slide 20: Energy Generation
Energy Generation Growth in generation reflects high levels of AVAILABILITY (% OF PERIOD) availability across portfolio 97% Generator availability remained above the 97% internal target of 95% 96% 96% 95% 95% • Two years of investment in spare parts to increase stock of critical spares • Initial pow
Slide 21: Key Project Updates
Key Project Updates Additional Generation in Canberra Phase 1 Canberra expansion on track for H1 FY25, followed by Phase 2 installation of batteries AVERAGE AEMO ELELCTRICITY PRICING TIME OF DAY (JAN 23 TO JUN 24) Average AEMO electricity pricing continues to 600 demonstrate the importance and need
Slide 22: Newly Contracted Sites
Newly Contracted Sites LGI achieved a net increase of four newly contracted sites during FY24, an increase of 14% pcp BINGO (Eastern Creek, Sydney, NSW) Gatton, QLD • Landfill Gas Rights agreement entered with BINGO Industries Limited • Pipework scheduled to start September with drilling wells and l
Slide 23: Outlook & Summary
Outlook & Summary
Slide 24: Outlook
Outlook Targeting growth in key metrics alongside continued operational excellence LGI’s FY25 priorities are similar to those within FY24: Continued focus Deliver key near- Explore the Work on contracted Actively pursue new on Health, Safety, term projects, expansion of power landfill sites to expan
Slide 25: Appendix
Appendie”
Slide 26: Financial reconciliation to statutory results
Financial reconciliation to statutory results FY24 FY23 Statutory Before After Statutory After Underlying Underlying Underlying Before Underlying Underlying A$ ‘000 Items Items Items Underlying Items Items Revenue 33,310 - 33,310 32,303 - 32,303 EBITDA 15,281 - 15,281 13,315 1,101 14,416 Depreciatio
Slide 27: LGI Value Proposition
LGI Value Proposition LGI strives to deliver value with its vertically integrated business model in a number of key areas at the intersection of the waste, electricity and carbon sectors END-TO-END DIVERSIFIED VERTICALLY INNOVATION AND SOLUTION REVENUE STREAMS INTEGRATED TECHNICAL INGENUITY Highly c
Slide 28: Board
Board VIK BANSAL ADAM BLOOMER ABIGAIL CHEADLE ANDREW PETERS DR. JESSICA NORTH TIMOTHY MCGAVIN Non-Executive Managing Director Non-Executive Director Non-Executive Director Executive Director Non-Executive Director Chair and Founder and Audit & Risk and Chief and Chair of Committee Chair Sustainabili
Slide 29: LGI LIMITED
LGI LIMITED AUSTRALIA ABN. 49 138 085 551 57 Harvey Street North Eagle Farm 4009 QLD 07 3711 2225 enquiries@lgi.com.au www.lgi.com.au Renewable energy, and carbon abatement