Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — H1 FY2022 Earnings Presentation
33 slides from Sgh's earnings presentation, Feb 22, 2022
Slide 1: Investor Presentation for the half-year ended 31 December 2021
Investor Presentation for the half-year ended 31 December 2021 SGH | Industrial Services, Media, Energy and Investments 22 February 2022
Slide 2: HY22 Highlights
HY22 Results Presentation 22 February 2022 HY22 HIGHLIGHTS Growth driving strong performance • Revenue1 of $3,956m – Up 68% on a reported basis – Up 3% on a pro-forma basis2 • EBIT3 of $511m – Up 29% on a reported basis – Up 6% on a pro-forma basis2 • NPAT3 $302m up 22% • EPS3 80 cents up 10% • Stat
Slide 3: Group Overview: People, Safety and Culture
HY22 Results Presentation Seven Group Holdings 3 22 February 2022 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Safety of our people is always our top priority • Mixed safety results during the period impacted by labour constraints, additional use of contractors, and increased activity LTIFR TRIFR • Coa
Slide 4: Group Overview: Sustainability and Community
HY22 Results Presentation Seven Group Holdings 4 22 February 2022 GROUP OVERVIEW SUSTAINABILITY AND COMMUNITY Ongoing focus on Sustainability • Sustainability Report released outlining ten material issues and SGH’s Sustainability Report additional TCFD disclosures released on 30 September 2021, • De
Slide 5: Group Overview: Earnings
HY22 Results Presentation Seven Group Holdings 5 22 February 2022 GROUP OVERVIEW EARNINGS Quality businesses with capable management have WesTrac responded to temporary headwinds • New South Wales and Victorian construction shutdowns EBIT $210m • Global supply chain disruption down 0.7% • Major weat
Slide 6: Group Overview: Results
HY22 Results Presentation Seven Group Holdings 6 22 February 2022 GROUP OVERVIEW RESULTS Statutory NPAT of $1,221m up 236% includes • $757m from revaluation of equity interest in Boral on 3,956 transition from equity accounting to consolidation 511 2,357 68% 29% 396 • $131m from discontinued operati
Slide 7: Business Performance
BUSINESS PERFORMANCE
Slide 8: Industrial Services: WesTrac Highlights
HY22 Results Presentation Seven Group Holdings 8 22 February 2022 INDUSTRIAL SERVICES WESTRAC HIGHLIGHTS Customer demand increasing • Iron Ore, Coal, Copper, Zinc and Lithium commodity prices above long-term average • Customers focused on production to capitalise on this opportunity • Miners highlig
Slide 9: Industrial Services: WesTrac Financials
HY22 Results Presentation Seven Group Holdings 9 22 February 2022 INDUSTRIAL SERVICES WESTRAC FINANCIALS Revenue up 4% to $1,921m despite the supply chain disruptions • Capital sales $636m up 3% Product • Product support sales $1,285m up 4.3% sales EBIT margin of 10.9% reduced slightly on pcp driven
Slide 10: Industrial Services: Coates Highlights
HY22 Results Presentation Seven Group Holdings 10 22 February 2022 INDUSTRIAL SERVICES COATES HIGHLIGHTS Strong customer activity and market penetration Infrastructure investment by sector • Growth in all four national geographic regions • Growth in all three segments, top-tier, mid-tier and trades
Slide 11: Industrial Services: Coates Financials
HY22 Results Presentation Seven Group Holdings 11 22 February 2022 INDUSTRIAL SERVICES COATES FINANCIALS Revenue of $496m up 6% • Driving pricing discipline and delivering improving trends in all segments Margin expansion • EBITDA growth of 6% to $213m • Efficient business model delivering EBITDA 11
Slide 12: Industrial Services: Boral Highlights (69.6%)
HY22 Results Presentation Seven Group Holdings 12 22 February 2022 INDUSTRIAL SERVICES BORAL HIGHLIGHTS (69.6%) SGH successfully executing on its Boral value creation strategy • Original $4.7bn investment reducing to $2.6bn post capital return Boral’s construction materials network Completion of por
Slide 13: Industrial Services: Boral Financials
HY22 Results Presentation Seven Group Holdings 13 22 February 2022 INDUSTRIAL SERVICES BORAL FINANCIALS Boral result fully consolidated into SGH financials Revenue of $1,500m from continuing operations • Up 1% despite impact of construction shutdowns and wet weather EBIT of $78m excluding property •
Slide 14: Energy: Beach Energy (30%)
HY22 Results Presentation Seven Group Holdings 14 22 February 2022 ENERGY BEACH ENERGY (30%) Earnings growth momentum • Sales revenue of $786m up 11% • NPAT of $213m up 66% • Positive exposure to increasing energy prices and strengthening US$ Benefits of Beach’s diversified portfolio • Six productio
Slide 15: Energy: SGH Energy
HY22 Results Presentation Seven Group Holdings 15 22 February 2022 ENERGY SGH ENERGY Crux (SGHE 15%) Forecast supply-demand gap for global LNG (mmtpa) • World class LNG asset in Browse basin with pathway to market with FID expected in 2H22 • Important long-term backfill opportunity for the Shell-ope
Slide 16: Media: Seven West Media (38.9%)
HY22 Results Presentation Seven Group Holdings 16 22 February 2022 MEDIA SEVEN WEST MEDIA (38.9%) Seven Network returned to #1 with content led growth • #1 in metro broadcast with 40.3% revenue share (+3.7 points) • 7plus the #1 BVOD channel • 11m registered and verified users Combined with Transfor
Slide 17: Group Financials
GROUP FINANCIALS
Slide 18: Financials: Boral PPA – Balance Sheet
HY22 Results Presentation Seven Group Holdings 18 22 February 2022 FINANCIALS BORAL PPA – BALANCE SHEET Key adjustments: • Inventories includes valuation of land Purchase Price Provisional Fair Boral Acquisition Accounting 7 July 2021 ($m) Boral Book Value1 Adjustment Value inventory ($332.3 million
Slide 19: Financials: Profit and Loss
HY22 Results Presentation Seven Group Holdings 19 22 February 2022 FINANCIALS PROFIT AND LOSS $m HY22 HY21 Change % Revenue1 3,956.0 2,357.4 67.8% Other income 24.5 11.5 113.0% Share of results from equity accounted investees 127.4 87.8 45.1% Trading revenue and other income 4,107.9 2,456.7 67.2% Ex
Slide 20: Financials: Significant Items
HY22 Results Presentation Seven Group Holdings 20 22 February 2022 FINANCIALS SIGNIFICANT ITEMS $m HY22 HY21 Revaluation of equity accounted interest on acquisition of Boral 756.8 - Fair value adjustments on acquisition of Boral (13.3) - Boral transaction costs (7.3) - Boral property segment 5.4 - P
Slide 21: Financials: Earnings from Continuing Operations
HY22 Results Presentation Seven Group Holdings 21 22 February 2022 FINANCIALS EARNINGS FROM CONTINUING OPERATIONS Total Invest- $m WesTrac Coates Boral Energy Media Corporate Group ments Revenue from continuing operations 3,956.0 1,920.8 495.6 1,500.4 2.0 - 37.2 - Statutory EBIT 1,294.5 209.9 119.4
Slide 22: Financials: Earnings on a Pro-forma Basis
HY22 Results Presentation Seven Group Holdings 22 22 February 2022 FINANCIALS EARNINGS ON A PRO-FORMA BASIS HY21 2H21 FY21 Change $m HY22 Less Less Pro- % Boral Boral forma included Add Boral included Add Boral Reported Pro-forma Reported Pro-forma in results in results reported reported results res
Slide 23: Financials: Cash Flow
HY22 Results Presentation Seven Group Holdings 23 22 February 2022 FINANCIALS CASH FLOW $m HY22 HY21 • Reduction in operating cash flow by $6.9m driven by increased WesTrac Underlying EBIT 510.9 396.4 inventory with underlying EBITDA cash conversion reduced to 62% Add: depreciation and amortisation
Slide 24: Group Overview: Capital and Liquidity Management
HY22 Results Presentation Seven Group Holdings 24 22 February 2022 GROUP OVERVIEW CAPITAL AND LIQUIDITY MANAGEMENT Strong credit support for the Group Facility Maturity at 31 Dec 2021 including pro-forma adjustment for Boral capital return • Attractive sector exposure and thematics • Operating perfo
Slide 25: Financials: Balance Sheet
HY22 Results Presentation Seven Group Holdings 25 22 February 2022 FINANCIALS BALANCE SHEET As at As at Change • Trade and other receivables increase of $m 31 Dec 21 30 Jun 21 % 61% reflects the consolidation of $423.8m Trade and other receivables 1,339.1 832.3 61% in Boral current trade receivables
Slide 26: Financials: Balance Sheet on a Pro-forma Basis
HY22 Results Presentation Seven Group Holdings 26 22 February 2022 FINANCIALS BALANCE SHEET ON A PRO-FORMA BASIS As at As at Change on 31 Dec 2021 30 Jun 2021 pro-forma SGH SGH Boral Purchase Price Other SGH Pro- $m $m % Reported ex-Boral Reported1 Adjustments Adjustments2 forma Trade and other rece
Slide 27: Outlook
Slide 28: Group Overview: Outlook and Priorities
HY22 Results Presentation Seven Group Holdings 28 22 February 2022 GROUP OVERVIEW OUTLOOK AND PRIORITIES SGH expects positive momentum to continue across all its businesses for the remainder of FY22 and beyond: • WesTrac is expected to deliver FY22 guidance of ‘low single digit’ EBIT growth on FY21,
Slide 29: Appendix
APPENDIX
Slide 30: Group Overview: Purpose and Values
HY22 Results Presentation Seven Group Holdings 30 22 February 2022 GROUP OVERVIEW PURPOSE AND VALUES Our Business Model SGH is a leading Australian diversified operating and investment group with market leading businesses. Recognising and serving exceptional businesses Purpose Maximise return to sta
Slide 31: Group Overview: Businesses and Markets
HY22 Results Presentation Seven Group Holdings 31 22 February 2022 GROUP OVERVIEW BUSINESSES AND MARKETS Industrials Industrials Industrials Energy Media 100% 100% 70% Beach 30% SGHE 100% 39% WesTrac is one of the Coates is Australia’s Boral is Australia’s largest Beach Energy is a leading Seven Wes
Slide 32: Group Overview: Key Financials
HY22 Results Presentation Seven Group Holdings 32 22 February 2022 GROUP OVERVIEW KEY FINANCIALS Underlying trading performance1 Significant Items Reported statutory results Half-Year Ended 31 Dec 2021 ($m) Continued Discontinued Total Continued Discontinued Total Continued Discontinued Total Revenu
Slide 33: Disclaimer
HY22 Results Presentation Seven Group Holdings 33 22 February 2022 DISCLAIMER Basis of preparation of slides • Included in this presentation is data prepared by the management of Seven Group Holdings Limited (“SGH”) and other associated entities and investments. This data is included for information
Seven Group Holdings — H1 FY2022 Earnings Presentation on 6ix