Sgh Limited · ASX:SGH
Sgh — Investor Presentation (April 2021)
43 slides from Sgh's investor presentation, Apr 19, 2021
Slide 1: Seven Group Holdings $500m Equity Raising Presentation
Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 19 April 2021 SEVEN GROUP HOLDINGS LIMITED $500M EQUITY RAISING PRESENTATION Please see attached $500m underwritten equity raising presentation. This release has been authorised to be given to ASX by
Slide 2: Institutional Equity Placement and Retail Share Purchase Plan
STRENGTH, COMMUNITY, RESILIENCE INSTITUTIONAL EQUITY PLACEMENT AND RETAIL SHARE PURCHASE PLAN 19 APRIL 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 3: Important Notice & Disclaimers
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 2 19 April 2021 IMPORTANT NOTICE & DISCLAIMERS This investor presentation (“Presentation”) has been prepared by Seven Group Holdings Ltd (ABN 46 142 003 469) (“SGH”) in relation to an institutional placement (“Placeme
Slide 4: Important Notice & Disclaimers
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 3 19 April 2021 INVESTOR PRESENTATION IMPORTANT NOTICE & DISCLAIMERS The pro-forma financial information has been prepared by SGH in accordance with the measurement and recognition requirements, but not the disclosure
Slide 5: Important Notice & Disclaimers
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 4 19 April 2021 IMPORTANT NOTICE & DISCLAIMERS Disclaimer: Neither the Joint Lead Managers, nor any of their or SGH’s respective advisers or any of their respective affiliates, related bodies corporate, directors, off
Slide 6: Equity Raising Overview
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 5 19 April 2021 EQUITY RAISING OVERVIEW Equity raising to create balance sheet flexibility to support future growth Underwritten equity Seven Group Holdings Limited (ASX: SVW) (“SGH”) is seeking to raise up to $550
Slide 7: Institutional Placement Terms
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 6 19 April 2021 INSTITUTIONAL PLACEMENT TERMS The Equity Raising will raise up to $550 million, including: – Fully underwritten $500 million Placement Structure – Up to $50 million non-underwritten share purchase pl
Slide 8: Retail Share Purchase Plan Terms
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 7 19 April 2021 RETAIL SHARE PURCHASE PLAN TERMS Eligible retail shareholders in Australia and New Zealand can apply to purchase a maximum of $30,000 in ordinary shares Structure Enables all eligible shareholders
Slide 9: Equity Raising Timetable
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 8 19 April 2021 EQUITY RAISING TIMETABLE Dates and times are subject to change without notice Record date for SPP 7pm (Sydney time), Friday 16 April 2021 Announcement of Placement and SPP, institutional bookbuild
Slide 10: Group Overview: ESG & Emissions Commitment
Institutional Equity Placement and Retail Share Purchase Plan 19 April 2021 GROUP OVERVIEW ESG & EMISSIONS COMMITMENT Formal commitments on climate change • Commitment that SGH and our current operating businesses, Coates and WesTrac, will achieve net zero greenhouse gas emissions by 2040 • Support
Slide 11: Group Overview: Businesses and Markets
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 10 19 April 2021 GROUP OVERVIEW BUSINESSES AND MARKETS Industrials Industrials Industrials Energy Media WesTrac (100% owned) is Coates Hire (100% owned) is the Boral (23% owned) is an Beach Energy (28.5% Seven West Me
Slide 12: Group Overview: Highlights 1HFY21
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 11 19 April 2021 GROUP OVERVIEW HIGHLIGHTS 1HFY21 Resilient performance by operating businesses • Trading revenue of $2.4bn up 4% with strong performance in WesTrac offsetting some uncertainty in some end-markets in C
Slide 13: Group Overview: Key Financials
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 12 19 April 2021 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) 1H FY21 1H FY20 % Change Trading revenue 2,357.4 2,262.8 4.2% Earnings before interest and tax1 396.1 417.6 -5.1% Underlying net profit after tax
Slide 14: Industrial Services: WesTrac Highlights
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 13 19 April 2021 INDUSTRIAL SERVICES WESTRAC HIGHLIGHTS Capital sales growth driven by major projects • Commissioning of major fleet deliveries for BHP (South Flank) and Rio Tinto (Gudai-Darri - formerly Koodaideri) •
Slide 15: Industrial Services: Mining Machine Opportunity
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 14 19 April 2021 INDUSTRIAL SERVICES MINING MACHINE OPPORTUNITY >180t active Cat mining truck population (# units) High utilisation across an ageing fleet delivering opportunities • Increase in average fleet age creat
Slide 16: Industrial Services: WesTrac Financials 1HFY21
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 15 19 April 2021 INDUSTRIAL SERVICES WESTRAC FINANCIALS 1HFY21 Ongoing momentum delivering revenue and margin growth • Revenue up 8% on pcp driven by project deliveries with product sales up $88m or 17% and product su
Slide 17: Industrial Services: Coates
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 16 19 April 2021 INDUSTRIAL SERVICES COATES Australian Building Construction Work Strong focus on costs and dynamic response to conditions • Experiencing some impact on customer activity in certain geographic markets
Slide 18: Industrial Services: Coates Fleet Overview
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 17 19 April 2021 INDUSTRIAL SERVICES COATES FLEET OVERVIEW Driving fleet utilisation and return on assets • Fleet age, composition and location is actively managed to optimise the rate of return and to capture opportu
Slide 19: Industrial Services: Coates Financials 1HFY21
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 18 19 April 2021 INDUSTRIAL SERVICES COATES FINANCIALS 1HFY21 EBIT growth achieved during the half • 1H FY21 EBIT of $105m was up 6% against the immediately preceding half (2H FY20: $99.5m) showing a positive trend •
Slide 20: Industrial Services: Boral
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 19 19 April 2021 INDUSTRIAL SERVICES BORAL Boral investment and portfolio • Following recent 3% creep, SGH shareholding is now 23% with a low all in weighted average entry cost of $3.81 per share • Focused on supporti
Slide 21: Energy: Beach Energy
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 20 19 April 2021 ENERGY BEACH ENERGY Beach have announced these key outcomes supporting their strategy • FY25 growth ambition supported by Waitsia and Otway progress • Waitsia Stage 1A complete and FID taken with Mits
Slide 22: Energy: SGH Energy
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 21 19 April 2021 ENERGY SGH ENERGY Crux development update LNG supply-demand gap (Mtpa) • Crux is an attractive asset, uniquely positioned as a backfill opportunity utilising existing infrastructure • Anticipated glob
Slide 23: Media: Seven West Media
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 22 19 April 2021 MEDIA SEVEN WEST MEDIA Ad spend recovering in 2Q21 • TV ad market improving with Oct-Dec quarter returning to growth $m 1H FY21 1H FY20 – Q1: total ad market -20.2%, Metro FTA -14.3% Share of associat
Slide 24: SGH Pro-Forma Capitalisation
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 23 19 April 2021 SGH PRO-FORMA CAPITALISATION 31 December 20 pro-forma leverage(1) The Equity Raising creates balance sheet flexibility and reduces the net debt position which will enable SGH to support growth $m st
Slide 25: Group Capital Allocation
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 24 19 April 2021 GROUP CAPITAL ALLOCATION Disciplined approach to investment management • Significant year-to-year investing cash flows in both directions over the past 10 years demonstrate ability to recycle capital
Slide 26: Financials: Liquidity Management
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 25 19 April 2021 FINANCIALS LIQUIDITY MANAGEMENT Funding base extended and diversified • US$300m private placement completed in July 2020 across 7, 10, 12 year tranches, raising A$461m equivalent Current <1 • Low-cost
Slide 27: Group Outlook Reconfirmed FY21
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 26 19 April 2021 GROUP OUTLOOK RECONFIRMED FY21 Business Outlook Industrials expecting • WesTrac outperforming in 1H FY21 with strong results in WA, offsetting flat performance in NSW, reconfirm on-track improvement t
Slide 28: Appendix
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 27 19 April 2021 APPENDIX 1. Key Risks 2. International offer restrictions 3. Summary of Joint Underwriting Agreement NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 29: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 28 19 April 2021 KEY RISKS 1. Introduction Investors should be aware that there are risks associated with an investment in SGH. Some of the principal factors which may, either individually or in combination, affect th
Slide 30: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 29 19 April 2021 KEY RISKS 2. Operational Risks (continued) SGH’s operating businesses are exposed both directly and indirectly to the risks associated with pandemics such as COVID-19 which has impacted certain unde
Slide 31: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 30 19 April 2021 KEY RISKS 2. Operational Risks (continued) SGH is subject to risk of misappropriation of assets and information by both individuals and organisations. SGH’s rental activities necessitate the loss of
Slide 32: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 31 19 April 2021 KEY RISKS 2. Operational Risks (continued) SGH is subject to the risk that material contracts, with suppliers, customers and others, are terminated, expire, are not renewed or are renegotiated on le
Slide 33: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 32 19 April 2021 KEY RISKS 3. Risks associated with an investment in SGH (continued) SGH holds investments in a number of ASX-listed, and unlisted, companies that it does not control, including Seven West Media Limi
Slide 34: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 33 19 April 2021 KEY RISKS 4. Financial Risks SGH has substantial cash reserves on deposit with a number of major financial institutions. These reserves are invested in both cash call and term deposit accounts. Cash
Slide 35: Key Risks
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 34 19 April 2021 KEY RISKS 4. Financial Risks (Continued) SGH, its subsidiaries and the companies in which it holds minority investments make judgments and estimates, in accordance with applicable accounting standar
Slide 36: International Offer Restrictions
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 35 19 April 2021 INTERNATIONAL OFFER RESTRICTIONS SGH Investor Presentation – International offer restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of Seven Group Holdings L
Slide 37: International Offer Restrictions
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 36 19 April 2021 INTERNATIONAL OFFER RESTRICTIONS SGH Investor Presentation – International offer restrictions (Continued) The following is a summary of the statutory rights of rescission or to damages, or both, avail
Slide 38: International Offer Restrictions
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 37 19 April 2021 INTERNATIONAL OFFER RESTRICTIONS SGH Investor Presentation – International offer restrictions (Continued) European Union This document has not been, and will not be, registered with or approved by any
Slide 39: International Offer Restrictions
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 38 19 April 2021 INTERNATIONAL OFFER RESTRICTIONS SGH Investor Presentation – International offer restrictions (Continued) This document has not been approved by, or registered with, any Norwegian securities regulator
Slide 40: International Offer Restrictions
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 39 19 April 2021 INTERNATIONAL OFFER RESTRICTIONS SGH Investor Presentation – International offer restrictions (Continued) Neither the information in this document nor any other document relating to the offer has been
Slide 41: Summary of Joint Underwriting Agreement
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 40 19 April 2021 SUMMARY OF JOINT UNDERWRITING AGREEMENT SGH has entered into a joint underwriting agreement with Jarden Australia Pty Limited (ABN 33 608 611 687 / AFSL 485351) and Macquarie Capital (Australia) Limit
Slide 42: Joint Underwriting Agreement Summary
Institutional Equity Placement and Retail Share Purchase Plan Seven Group Holdings 41 19 April 2021 JOINT UNDERWRITING AGREEMENT SUMMARY Termination events continued: • any Government Agency: (i) commences, or announces that it intends to take, any public action against an SGH officer (in that capac
Slide 43: Not for Distribution or Release in the United States
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES