Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — FY2020 Earnings Presentation
39 slides from Sgh's earnings presentation, Aug 26, 2020
Slide 1: ASX announcement: Investor Presentation
26 August 2020 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 INVESTOR PRESENTATION Seven Group Holdings Limited (ASX: SVW) attaches an Investor Presentation for the year ended 30 June 2020. Ends. This release has been authorised to be given to A
Slide 2: Strength, Community, Resilience: Results for the Year Ended 30 June 2020
STRENGTH, COMMUNITY, RESILIENCE RESULTS FOR THE YEAR ENDED 30 JUNE 2020 26 AUGUST 2020
Slide 3: Group Overview
GROUP OVERVIEW Our purpose is to recognise and serve exceptional businesses Our objective is to maximise return to stakeholders through long term sustainable value creation
Slide 4: People, Safety and Culture
Full Year Results Presentation Seven Group Holdings 3 26 August 2020 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Keeping our people safe is our top priority Rolling 12 Month LTIFR TRIFR • Significant improvement in safety statistics over the past two years FY20 FY19 FY20 FY19 – Group 38.5% reduction i
Slide 5: Community Engagement
Full Year Results Presentation Seven Group Holdings 4 26 August 2020 GROUP OVERVIEW COMMUNITY ENGAGEMENT Uniquely positioned to assist our communities • Incredible work undertaken by 35 of our brave and committed employees who served in the RFS and other volunteer services; staff recognised through
Slide 6: Community Engagement
Full Year Results Presentation Seven Group Holdings 5 26 August 2020 GROUP OVERVIEW COMMUNITY ENGAGEMENT WesTrac bushfire appeal community cricket match, Kalgoorlie WA One of 14 water carts deployed to fire fronts in January Equipment for delivery to the ADF in Bega, NSW South Coast Cat D6 dozer dep
Slide 7: COVID-19 Update
Full Year Results Presentation Seven Group Holdings 6 26 August 2020 GROUP OVERVIEW COVID-19 UPDATE Key principles of the SGH COVID-19 response plan • Protecting the health and safety of our people • Supporting our customers • Ensuring our businesses remain strong Coordinated groupwide response • Ag
Slide 8: Businesses and Markets
Full Year Results Presentation Seven Group Holdings 7 26 August 2020 GROUP OVERVIEW BUSINESSES AND MARKETS Mining production Industrial Industrial Energy Media • We provide equipment solutions to the world’s services services investments largest miners, supporting record production volumes and drivi
Slide 9: Highlights
Full Year Results Presentation Seven Group Holdings 8 26 August 2020 GROUP OVERVIEW HIGHLIGHTS Resilient financial result with improved revenue and UEBIT • Delivered on guidance initially provided in August 2019 with UEBIT of $740m, up 6.5% on pre AASB16 FY19 EBIT of $695m • FY20 UEBIT up 2% or $12m
Slide 10: Key Financials
Full Year Results Presentation Seven Group Holdings 9 26 August 2020 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) FY20 FY19 % Change Trading revenue 4,562.6 4,084.0 12% Underlying earnings before interest and tax1 739.9 727.9 2% Underlying net profit after tax attributable to shareholders1
Slide 11: Financials
GROUP FINANCIALS
Slide 12: Profit and Loss
Full Year Results Presentation Seven Group Holdings 11 26 August 2020 FINANCIALS PROFIT AND LOSS $m FY20 FY19 Change % Revenue 4,562.6 4,084.0 12% Other income 62.7 53.5 17% Share of results from equity accounted investees (underlying) 151.7 208.4 -27% Trading revenue and other income 4,777.0 4,345.
Slide 13: Significant Items
Full Year Results Presentation Seven Group Holdings 12 26 August 2020 FINANCIALS SIGNIFICANT ITEMS $m FY20 FY19 Share of results from equity accounted investees attributable to significant items – SWM and Beach (71.1) (179.3) Impairment – SWM equity (162.3) (106.8) Impairment of producing and develo
Slide 14: Earnings Summary
Full Year Results Presentation Seven Group Holdings 13 26 August 2020 FINANCIALS EARNINGS SUMMARY Total Coates Allight Invest- $m WesTrac Energy Media Corporate Group Hire Sykes ments Trading revenue 4,562.6 3,491.8 974.7 89.0 3.2 - 3.9 - Statutory EBIT 381.7 371.0 195.8 (3.7) 21.3 (196.7) 18.4 (24.
Slide 15: Cash Flow
Full Year Results Presentation Seven Group Holdings 14 26 August 2020 FINANCIALS CASH FLOW $m FY20 FY19 Underlying EBIT 739.9 727.9 Add: depreciation and amortisation 264.7 271.9 Underlying EBITDA 1,004.6 999.8 Operating cash flow 539.6 468.2 Add: interest and other costs of finance paid (net) 134.4
Slide 16: Balance Sheet
Full Year Results Presentation Seven Group Holdings 15 26 August 2020 FINANCIALS BALANCE SHEET As at As at • Increase in trade receivables of $73m $m Change % 30 Jun 20 30 Jun 19 reflects strong sales result in WesTrac Trade and other receivables 775.4 702.9 10% during May / June Inventories 836.8 8
Slide 17: Capital Management
Full Year Results Presentation Seven Group Holdings 16 26 August 2020 FINANCIALS CAPITAL MANAGEMENT Additional funding capacity unlocked • US$300m placement completed on 7 July 2020 in three tranches: – US$75m, 7-year 3.31% fixed coupon (A$115m at BBSW +3.2%) – A$230m, 10-year, 4.265% fixed coupon –
Slide 18: WesTrac
BUSINESS REVIEW WESTRAC Purpose: to be the customer’s first choice in equipment solutions with zero harm safety culture and a focus on growth and sustained profitability
Slide 19: WesTrac Highlights
Full Year Results Presentation Seven Group Holdings 18 26 August 2020 WESTRAC HIGHLIGHTS Continued activity across all markets • Parts and service demand remains strong with record volume • 6.6m parts lines shipped in WA and NSW • Growth in product sales across mining, construction and government, w
Slide 20: WesTrac Financials
Full Year Results Presentation Seven Group Holdings 19 26 August 2020 WESTRAC FINANCIALS Revenue up 15% with growth seen across all major segments • Product support revenue up $227m or 10% with ongoing customer maintenance activity to meet production targets • Product sales revenue up $224m or 26% d
Slide 21: WesTrac Autonomous Technology
Full Year Results Presentation Seven Group Holdings 20 26 August 2020 WESTRAC AUTONOMOUS TECHNOLOGY WesTrac is the market leader in autonomy • Global leader in installation, commissioning and maintenance of AHS mining trucks – Over 400 CAT AHS trucks to be operational over the next few years – 88% o
Slide 22: Coates Hire
BUSINESS REVIEW COATES HIRE Purpose: to be the market leader in safe, smart and sustainable equipment solutions
Slide 23: Coates Hire Highlights
Full Year Results Presentation Seven Group Holdings 22 26 August 2020 COATES HIRE HIGHLIGHTS Infrastructure activity continuing, growth in WA • East Coast activity levels remain strong but slow or deferred starts to new projects • WA strong growth in infrastructure and resource activity • Government
Slide 24: Coates Hire Financials
Full Year Results Presentation Seven Group Holdings 23 26 August 2020 COATES HIRE FINANCIALS Revenue and EBIT growth achieved in an uncertain market • Varying impact of COVID-19 across market segments • Industrial Services revenue growth of 28% driven by major plant maintenance activities during the
Slide 25: Coates Hire Engineering Solutions
Full Year Results Presentation Seven Group Holdings 24 26 August 2020 COATES HIRE ENGINEERING SOLUTIONS Key growth area • Coates Engineering Solutions can design, install and certify temporary works solutions for projects of all shapes and sizes • Design and Installation – Structural Propping – Hydr
Slide 26: Energy
BUSINESS REVIEW ENERGY Portfolio of opportunities within Beach Energy and SGH Energy aimed at meeting the East Coast gas demand and new LNG export opportunities
Slide 27: Beach Energy
Full Year Results Presentation Seven Group Holdings 26 26 August 2020 ENERGY BEACH ENERGY Robust operating result despite low oil price • Production of 26.7 Mmboe, within 1% of guidance, driven by 27% increase in oil production and Black Watch 1 now adding 45 TJ/day • Gas represents 55% of overall m
Slide 28: Beach Growth Opportunity
Full Year Results Presentation Seven Group Holdings 27 26 August 2020 ENERGY BEACH GROWTH OPPORTUNITY Positioned to invest through the cycle • Net cash position and contracted gas revenue positions Beach to withstand low oil prices and invest in its assets through the cycle • Low proportion of commi
Slide 29: SGH Energy
Full Year Results Presentation Seven Group Holdings 28 26 August 2020 ENERGY SGH ENERGY Crux development update $m FY20 FY19 • Crux remains an attractive world class LNG asset Sale of oil, gas and condensate 3.2 6.5 • Pathway to infrastructure supplying backfill gas to Shell’s existing Prelude FLNG
Slide 30: Media
BUSINESS REVIEW MEDIA Seven Network provides leadership through its mass audience reach across free-to-air TV and digital
Slide 31: Media Highlights
Full Year Results Presentation Seven Group Holdings 30 26 August 2020 MEDIA HIGHLIGHTS SWM navigating unpredictable advertising market conditions $m FY20 FY19 • Metro FTA ad market declined 14.1% in FY20, -33.7% in 4Q Share of associate NPAT – SWM 17.6 48.8 • 37.4% metro FTA share in FY20, impacted
Slide 32: Case Study: SWM Strategy
Full Year Results Presentation Seven Group Holdings 31 26 August 2020 MEDIA CASE STUDY: SWM STRATEGY Achievements in FY20 In progress • New content strategy led by Big Brother has • Four new tent poles commissioned (external) for 2021; significantly improved ratings and audience Big Brother and Farm
Slide 33: Investments
BUSINESS REVIEW INVESTMENTS The listed portfolio provides a store of value and yield while also providing a platform for strategic investments The property portfolio comprises legacy assets that will be realised over time
Slide 34: Listed Portfolio and Property
Full Year Results Presentation Seven Group Holdings 33 26 August 2020 INVESTMENTS LISTED PORTFOLIO AND PROPERTY Strategically investing in sectors we like $m FY20 FY19 • Boral identified as a value opportunity within the industrials / infrastructure space aligning with SGH’s focus areas Revenue 3.9
Slide 35: Outlook
GROUP OUTLOOK Focused on how we can position the businesses to best drive value and realise their potential
Slide 36: Outlook FY21
Full Year Results Presentation Seven Group Holdings 35 26 August 2020 OUTLOOK FY21 Business Outlook Industrial Services • Majority of WesTrac and Coates Hire customers operate in essential industries and activity levels remain strong businesses are • Infrastructure activity accelerating as a form of
Slide 37: Disclaimer
Full Year Results Presentation Seven Group Holdings 36 26 August 2020 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 informat
Slide 38: Appendix: Prior Year Restatement
Full Year Results Presentation Seven Group Holdings 37 26 August 2020 APPENDIX PRIOR YEAR RESTATEMENT FY19 FY19 30 Jun 19 30 Jun 19 P&L $m Balance Sheet (selected items) $m Restated Reported Restated Reported Trading revenue and other income 4,345.9 4,347.7 Trade and other receivables (current) 700.
Slide 39: SGH | Industrial Services, Media, Energy and Investments
SGH | Industrial Services, Media, Energy and Investments