Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — Shareholder Meeting (November 2023)
47 slides from Environmental's shareholder meeting presentation, Nov 21, 2023
Slide 1: 2023 AGM Chair's Address, CEO's Address and Presentation
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 21 November 2023 Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 2023 Annual General Meeting Chair’s Address, CEO’s Address and Presentation The Environmental Group Lim
Slide 2: About EGL
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 About EGL EGL has five business units, all committed to the protection of the environment by improving air quality, reducing carbon emissions, enhancing waste treatment, and lifting water quality. EGL
Slide 3: Chair's Address
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 Chair’s Address On behalf of the Board, it is my pleasure to present a summary of the highlights for EGL over the past year. FY23 has been a testament to our commitment to "Engineering a Sustainable Futu
Slide 4: Chair's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 EGL's unique blend of engineering, service, and project management expertise continues to drive solutions that reduce noise, air, and water pollution. Looking ahead, our focus is on developing new market
Slide 5: CEO's Address
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 CEO’s Address Thank you Lynn for the introduction and the Board for being here today, and welcome Michael Constable to the Board. WELCOME I would like to welcome you to The Environmental Group’s AGM, wit
Slide 6: CEO's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 environment, and is the result of the risk-based approach we implemented for the major equipment procurement for the projects. Lithium and rare earths demand continues to grow as we move further into ren
Slide 7: CEO's Address (continued)
Suite 1.01,10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427 As announced to the ASX on 21 August 2023, the value of contracts won by Baltec IES year to date was $17.6M. The high level of demand continued in Q1 FY24, setting Baltec IES up for record performance in
Slide 8: Annual General Meeting
Annual General Meeting Tuesday 21 November 2023 at 10.00am AEDT
Slide 9: Acknowledgment of Country
Acknowledgment of We respectfully acknowledge the Country Wurundjeri People of the Kulin Nation, who are the Traditional Custodians of the land on which we are located today, and pay our respects to their Elders past, present and emerging. 2
Slide 10: Chair's Welcome
Chair’s Welcome 3
Slide 11: Agenda
Agenda 01 Chair’s Address 02 CEO’s Address 03 Notice of Meeting and Proxies 04 Financial Statements and Reports 05 Resolutions 06 Conducting of the Poll 4
Slide 12: Chair's Report
01 Chair’s Report 5
Slide 13: FY23 Chair's Summary
FY23 CHAIR’S SUMMARY Continued growth in financial results, strengthening cashflow and balance sheet Airtight acquisition following successful capital raise Strong pipeline with 30% growth in EBITDA forecast for FY24 Appointment of Mr Michael Constable as Chair of Audit 6 and Risk Committee
Slide 14: CEO Presentation
02 CEO Presentation 7 ENGINEERING A SUSTAINABLE FUTURE Presentation should be read in conjunction with the Annual Report 30 June 2023.
Slide 15: Disclaimer
Disclaimer EGL advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of EGL’s control. No representation is made as to the accuracy or reliability of forward- looking statements or the assumptions on which they are based.
Slide 16: EGL business units and addressable markets
Total Air Pollution Control (TAPC) & Airtight Solutions EGL Waste encapsulates our service offering provides highly efficient state-of-the-art industrial air 1 to the waste industry; world class recycling pollution control technologies that prevent harmful gases, plants, dust extraction systems, odo
Slide 17: Financial Results
Financial Results 10
Slide 18: FY23 Financial Results – underlying
FY23 Financial Results – underlying* $82.7M $6.7M $4.9M 44.9% Increase in EBITDA up 51.8% EBIT up 64.6% before Revenue on FY22 before significant significant items on items on FY22 FY22 $5.2M $5.0M $9.4M Net cash from Undrawn working Cash on hand operating activities capital facility *Underlying pro
Slide 19: Executive Management
Executive Management CFO National Sales & COO CEO Marketing Manager Jason Dixon Andrew Bush Paul Gaskett Brenda Borghouts 10 years executive 25 years experience in 14 years Business 20 years Defence and experience for a listed Industrial services and Development and sales in heavy engineering, ASX 3
Slide 20: Senior Management
Senior Management Stirling Peter Rankin Aldo Giachero Charles Borg Schunemann Kiril Nikitin Stig Brixen 30 years 15 years 30 years 14 years 17 years 17 years experience in the experience in experience in the experience with engineering experience in boiler and emissions Gas Turbine EGL sales, experi
Slide 21: Operating Units
Operating Units 14
Slide 22: Baltec Inlet and Exhaust Systems
01 Baltec Inlet and Exhaust Systems 15
Slide 23: Baltec IES supports the gas turbine industry
Baltec IES supports the gas turbine industry in its role in assisting the transition from coal-powered energy generation by providing engineered products and custom designs specifically to meet clients' renewables applications. Key offering • Turbine performance enhancement for lower emissions and
Slide 24: AGM Commentary – Baltec IES
AGM COMMENTARY • Strong growth forecast for FY24, with high levels of industry demand. • With the global energy crisis, the generation industry is trying to find the right balance between renewable energy and traditional energy sources requiring engineering solutions. • We have developed the gold st
Slide 25: Key Products
Key Products Diverter Inlet Filter Dampers Houses Silencers Bypass and HRSG Guillotine Heating and Exhaust Stacks Dampers Cooling Systems 18
Slide 26: EGL Energy
4,EGL 7 ENERGY EGL Energy
Slide 27: EGL Energy service network
EGL Energy offers a network of service offices across Australia providing 24/7 sales, service, maintenance and repairs of boilers, gas fired equipment and other OEM equipment optimising energy efficiency. Key Offering • Sale and Installation of cost-effective boilers with a design focusing on maximu
Slide 28: AGM Commentary – EGL Energy
AGM COMMENTARY • Tomlinson margin improving in FY24 with stabilising costs after shipping and steel prices returned to pre Covid levels. • Our services remained very strong with the increased installed capacity increasing recurring revenue. • Ignite continued its strong contribution with significant
Slide 29: Key Products
Key Products Industrial Industrial Large Commercial Steam Boilers Package Burners Hot Water Boilers Thermal Oil Biomass Steam and Heaters Hot Water Generation 22
Slide 30: Total Air Pollution Control & Airtight Solutions
03 Total Air Pollution Control & Airtight Solutions 23
Slide 31: TAPC flue gas treatment systems
TAPC designs, manufactures and services flue gas treatment systems which prevent harmful contaminants being discharged into the atmosphere. Key offering • Scrubbers including dry and wet for the removal of particulates and gaseous contaminants. • Electrostatic Precipitators & Bag filters for particu
Slide 32: AGM Commentary – TAPC
AGM COMMENTARY - TAPC • A standout year from the growth in providing off-gas treatment systems into the refining sector to produce lithium and rare earths. • Projects in the lithium and rare earth sector performing very well tracking at margin expectations. • Increased sales of servicing and spares
Slide 33: AGM Commentary – Airtight Solutions
AGM COMMENTARY - AIRTIGHT SOLUTIONS Airtight’s key offer includes Dust & Fume control by designing, installing, and maintaining air pollution control equipment, Waste- to-Energy via extensive range of waste reduction technologies and after sales servicing. • The acquisition represents a major expans
Slide 34: Key Products
Key Products Dry Wet Electrostatic Scrubber Scrubber Precipitators Fabric Filters Aeromixes Dust extraction (Baghouse) & Cyclones system 27
Slide 35: EGL Waste
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Slide 36: EGL Waste division service lines
EGL Waste division encapsulates offering many of EGL’s service lines to the waste industry • Turmec’s world class recycling plants under the exclusive Australian agency. • Dust extraction and asbestos detection systems in waste processing facilities. • Boilers & autoclaves in the medical waste treat
Slide 37: AGM Commentary – EGL Waste
AGM COMMENTARY • The Rino construction and demolition waste recycling plant has continued to proceed well, with the successful testing and commissioning of Australia’s largest plant of its kind for hand over to the client. • Significant additional works were undertaken by EGL in servicing the local
Slide 38: EGL Water
NY EGL EGL Water
Slide 39: EGL Water PFAS removal technology
EGL Water division has enhanced patented technology designed to protect our environment by the removal of Per- and polyfluoroalkyl chemical substances (PFAS) from contaminated water. • PFAS was primarily used in aircraft fire fighting as a fire retardant however its use expanded into plastics and cl
Slide 40: AGM Commentary – EGL Water
AGM COMMENTARY • All PFAS waste streams treated resulted in regulated PFAS being removed to below detectable levels, proving the effectiveness and versatility of the technology. • In June 2023 we received an order for the plant with the sale of our first plant subject to the sites EPA approval. • Co
Slide 41: Outlook
04 Outlook 34
Slide 42: Outlook
Outlook 01 02 03 04 Normalized EBITDA to Margin and process Continue to develop the “One TAPC, Baltec & Engineering improve greater than 30% for improvement will remain a EGL” culture to sell multiple to report directly to COO the financial year. focus of the business. services lines to the one Bren
Slide 43: Forward Outlook
Forward Outlook 05 06 07 08 EGL Energy -Tomlinson Baltec is set to have strong TAPC will be steady with EGL Waste & Water are improved margin to drive performance delivering very growing recurring revenue. continuing their organic EBITDA growth year on good earnings growth for Timing of several majo
Slide 44: EGL Outlook Commentary
EGL Outlook Commentary • We expect EBITDA to increase by over 30% year on year after significant items. • The Airtight integration is underway with the business now on our systems, following our processes and procedures. • While it has been a significant learning curve for Airtight, the culture is m
Slide 45: Questions?
Questions? 38
Slide 46: Appendix A – Reconciliation of Statutory to underlying results
Appendix A Reconciliation of Statutory (4E) to underlying results Less 4E Significant Underlying FY22(SM) Items Business Revenue 82.7 82.7 Costs of sales (63.8) (63.8) Gross profit 18.9 18.9 Employee expenses (7.7) 0.0 (7.7) Professional fees (1.7) (1.7) Travel expenses (1.2) (1.2) Marketing expense
Slide 47: Head Office
HEAD OFFICE Level 1, Suite 1 10 Ferntree Place Disclaimer Notting Hill Victoria 3168 EGL advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside Phone: 03 9763 6711 of EGL’s control. No representation is made as to the accur
The Environmental Group — Shareholder Meeting (November 2023) on 6ix