Slide 1: SRG Global - Making the Complex Simple
SRG GLOBAL MAKING THE COMPLEX
Slide 2: We are a diversified industrial services company
US We are a diversified We bring an engineering The most sought-after industrial services mindset to deliver diversified industrial company critical services for services business major industry 2
Slide 3: Profile
PROFILE OPERATING SEGMENTS 2,600 20+ People Industries Asset Maintenance 80+ 6 Mining Services Engineering & Construction Sites Countries OWNERSHIP STRUCTURE 12% Management / Board 645 320 45% Institutional Revenue ($m) Market Cap ($m) 3
Slide 4: Summary
SUMMARY Underlying FY22 EBITDA* of $57.2m up 22% and EBIT(A)* of $34.2m up 36% Strong FY22 operating cashflow with EBITDA to cash conversion of 106% Net cash of $20.5m after funding successful acquisition of WBHO Infrastructure 2H fully franked dividend of 1.5cps up 50%, FY22 dividend of 3.0
Slide 5: Key Highlights
KEY FY22 EBITDA exceeds FY21 FY22 CHANGE upgraded market guidance Revenue $570.0m $644.2m ▲ 13% Successful acquisition and EBITDA $47.1m $57.2m ▲ 22% integration of WBHO Infrastructure EBIT(A) $25.1m $34.2m ▲ 36% Record Work in Hand of $1.3b NPAT(A) $14.9m $23.4m ▲ 57% up 30% from FY21 EBITDA % marg
Slide 6: Strategic Transformation
GLOBAL QURESHRATEGIC TRANSFORMATION
Slide 7: Were: majority of earnings from one-off projects
WERE The majority of the Company’s earnings were derived from one-off projects. Annuity Project EBITDA ~ $40M 30% 70% Asset Maintenance Engineering & Mining Services Construction 7
Slide 8: Are: over two thirds annuity/recurring earnings
ARE Over 2/3rds of the Company’s EBITDA earnings are now derived from ~ $57M annuity / recurring earnings. Annuity Project EBITDA ~ $40M 70% 30% Asset Maintenance Engineering & Mining Services Construction 8
Slide 9: Transitioned to annuity/recurring earnings
TRANSITIONED TO ANNUITY/RECURRING EARNINGS LEADERSHIP HORIZON Zero Harm / ESG industry leader and recognised employer / partner of choice Domestic / International growth in Engineered Products across all SRG Global operating segments Selective strategic acquisitions to complement capability / footpr
Slide 10: Earnings Growth
EARNINGS GROWTH EBITDA EBIT(A) 31.0 19.0 30.2 18.2 29.0 17.0 27.0 16.0 27.0 15.0 15.6 26.5 25.0 13.0 ($M) ($M) 23.0 11.0 21.0 20.5 9.0 19.0 9.4 7.0 17.0 15.0 5.0 1H 2H 1H 2H 1H 2H 1H 2H FY21 FY21 FY22 FY22 FY21 FY21 FY22 FY22 10
Slide 11: Cash and Dividends
CASH AND DIVIDENDS NET DEBT TO NET CASH FULL YEAR DIVIDENDS (CPS) 22.0 3.0 3.0 20.5 18.0 2.5 14.0 2.0 12.2 10.0 2.0 (cents) ($M) 6.0 1.5 2.0 1.0 1.0 -2.0 0.5 -6.0 -8.4 -10.0 0.0 FY20 FY21 FY22 FY20 FY21 FY22 Note: FY22 Net Cash position after funding acquisition of WBHO Infrastructure 11
Slide 12: Strong Foundation
STRONG FOUNDATION 42% IMPROVEMENT IN TRIFR 52% 48% 5% 95% Female Male Live for the challenge Smarter together Never give up CORPORATE OPERATIONAL Have each other’s backs INDIGENOUS JV 12
Slide 13: Financial Overview
GLOBAL AINANCIAE OVERVIEW
Slide 14: Segment Results ($m)
SEGMENT RESULTS ($m) ASSET MINING ENGINEERING & TOTAL CORPORATE MAINTENANCE SERVICES CONSTRUCTION Revenue 644.2 214.8 114.0 315.4 - EBITDA 57.2 25.2 23.9 22.8 (14.7) EBIT(A) 34.2 16.8 17.1 16.5 (16.2) Corporate overheads Revenue 13% of $14.7m equates to Asset Maintenance continued its Engineering &
Slide 15: Excellent cash flow
EXCELLENT Strong focus on working capital management delivering Normal sustaining capital spend and growth operating cashflow before interest and tax of $59.7m capital investment for term contracts secured Acquisition of WBHO Infrastructure Lease payments which are included within depreciation Incre
Slide 16: Robust Balance Sheet
ROBUST BALANCE SHEET ($m) Available liquidity of $127.7m, comprising of cash on FY22 hand of $59.3m and available undrawn working capital and equipment finance facilities of $68.4m Cash and cash equivalents 59.3 Trade, other receivables & contract assets 160.2 Inventories 18.7 Net cash of $20.5m aft
Slide 17: Our Operating Segments
GLOBAL OUR OPERATING SEGMENTS
Slide 18: Asset Maintenance
ASSET MAINTENANCE WHAT WE DO CORE SERVICES Integrated multi-disciplinary maintenance, • Specialist Maintenance access solutions, asset repair and • Access Solutions protection services that sustain and EARNINGS extend critical industries and infrastructure. Annuity / Recurring 18
Slide 19: Asset Maintenance
ASSET MAINTENANCE Excellent mobilisation and operational delivery Significant number of contract wins and extensions secured ‒ 7-year windfarm maintenance contract with Meridian Energy ‒ 5-year multi-disciplinary services contract with FMG Iron Bridge ‒ 5-year civil maintenance contract with Alc
Slide 20: Mining Services
MINING SERVICES WHAT WE DO CORE SERVICES The critical drill and blast, performance • Production Drill and Blast analytics software and ground • Geotechnical Services stabilisation services that keep mine EARNINGS production moving. Annuity / Recurring 20
Slide 21: Mining Services
MINING SERVICES Continued strong operational / financial performance Excellent asset utilisation of >90% A number of contract wins and extensions secured ‒ 5-year contract with SIMEC Mining ‒ 2-year contract with Evolution Mining ‒ 2-year contract with Navarre Minerals ‒ 6-month contract with
Slide 22: Engineering & Construction
ENGINEERING & CONSTRUCTION WHAT WE DO CORE SERVICES Specialist engineering and construction • Civil & Engineering of critical infrastructure focused on • Specialist Building dams, bridges, tanks, wind farms and • Engineered Products engineered facades across a diverse EARNINGS range of sectors. Proj
Slide 23: Engineering & Construction
ENGINEERING & CONSTRUCTION Civil & Engineering Strong operational performance Robust pipeline of infrastructure opportunities ‒ dams, bridges, tanks, windfarms, site infrastructure Highest national bridge / road accreditation (R5 / B4) Successful acquisition and integration of WBHO Infrastru
Slide 24: Our Strategic Direction
GLOBAL OUR STRATEGIC DIRECTION
Slide 25: Most sought-after diversified industrial services business
MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL SERVICES BUSINESS LEADERSHIP HORIZON Zero Harm / ESG industry leader and recognised employer / partner of choice Domestic / International growth in Engineered Products across all SRG operating segments Selective strategic acquisitions to complement capability
Slide 26: Continued Growth: Work in Hand and Opportunity Pipeline
CONTINUED GROWTH WORK IN HAND OPPORTUNITY PIPELINE 37% $1.3b 45% 46% 40% $6b 40% 30 June 2022 30 June 2022 17% 20% Asset Maintenance Mining Services Engineering & Construction 26
Slide 27: Outlook
OUTLOOK Operating Segment Outlook Asset Maintenance delivering step change growth in diverse sectors with blue-chip clients Mining Services operating in high demand, high quality growth commodities Engineering & Construction positively linked to significant infrastructure investment SRG Engi
Slide 28: Proposition
PROPOSITION End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Highly scalable Capital light Dividend business investment paying model profile stock 28
Slide 29: SRG Global
SRG GLOBAL srgglobal.com.au 29
Slide 30: Disclaimer
DISCLAIMER This presentation has been prepared by SRG Global Limited (ABN 81 104 662 259) (SRG). By accessing this presentation you acknowledge that you have read and understood the following statement. This presentation contains general summary information about SRG. The information, opinions or co