Emeco Holdings Limited · ASX:EHL
Emeco — Euroz Hartleys Rottnest Island Institutional Conference 2024
13 slides from Emeco's conference presentation, Mar 14, 2024
Slide 1: Euroz Hartleys Rottnest Island Institutional Conference 2024
For personal use only Emeco Holdings Limited Euroz Hartleys Rottnest Island Institutional Conference 2024 14 March 2024
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS Reliance on third party information For personal use only The information and views expressed in this Presentation were prepared by Emeco Holdings Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been
Slide 3: Emeco's Scale and Competitive Advantage
EMECO’S SCALE AND COMPETITIVE ADVANTAGE By focusing on our core competency of equipment rental and maintenance, we will continue to provide a clear cost and quality advantage to customers For personal use only Rental Workshops Brands Open cut Underground Australia’s largest provider of open cut rent
Slide 4: Our Strategy
OUR STRATEGY Building a sustainable and resilient business generating long term value for shareholders For personal use only Lowest cost, highest quality provider Balanced and diversified portfolio Best-in-class operational capabilities Target balanced customer / project portfolio Lowest cost,
Slide 5: 1H24 Group Financial Highlights
1H24 GROUP FINANCIAL HIGHLIGHTS Business simplification and margin stabilisation set the platform for future improvement in returns and free cash flow generation For personal use only Revenue Operating EBITDA1 Operating EBIT1 Operating NPAT1 $435m $137m $61m $33m +1% vs PCP, -2% vs 2H23 +21% vs PCP,
Slide 6: Return on Capital
RETURN ON CAPITAL Returns consistently above cost of capital. Initiatives targeting return to 20% ROC are underway For personal use only Improved returns ROC COVID-19 & Ukraine Key event conflict driving cost from PNP and growth capex Improvement Credit event Initiatives timeline 3-way $70m acquisit
Slide 7: Targeting 20% ROC and Improved Cash Generation
TARGETING 20% ROC AND IMPROVED CASH GENERATION Return drivers targeting 20% ROC are underway. Free cash flow generation continues to improve, with target aligned to ROC. Growth capex to be restricted in favour of debt reduction in FY25 For personal use only Return on Capital1 drivers % Free Cash Flo
Slide 8: Highlights and Outlook
HIGHLIGHTS AND OUTLOOK BUSINESS Priority is maximising free cash flow by driving returns to reach our target of 20% ROC For personal use only Outlook for 2H24 remains positive with strong earnings momentum from the surface Rental business in particular Operational Business continues to focus on
Slide 9: Emeco Investment Highlights
EMECO INVESTMENT HIGHLIGHTS Emeco offers an attractive diversified investment exposure to the Australian mining industry For personal use only 1 2 3 Australia’s largest Scale and asset mining equipment rental Focused on delivering management expertise provider with national strong returns and free p
Slide 10: Appendix: Additional information
For personal use only Appendix: Additional information
Slide 11: Reconciliations – Statutory to Non-IFRS Disclosure
RECONCILIATIONS – STATUTORY TO NON-IFRS DISCLOSURE For personal use only 1H23 1H24 Statutory to operating reconciliation Statutory to operating reconciliation $m NPAT EBIT EBITDA $m NPAT EBIT EBITDA Statutory 2.7 16.8 89.7 Statutory 19.4 41.0 133.3 Tangible asset Tangible asset 0.2 0.2 - 15.9 15.9 -
Slide 12: Reconciliations – Statutory to Non-IFRS Disclosure
RECONCILIATIONS – STATUTORY TO NON-IFRS DISCLOSURE For personal use only Cash flow reconciliation Net debt and leverage reconciliation $m 1H23 1H24 30 June 31 December $m 2023 2023 Operating EBITDA 113.5 137.1 AUD secured notes 250.0 250.0 Working capital (29.2) (6.7) Revolving credit facility - 20.
Slide 13: Thank you
Thank you For personal use only Investor enquiries: Theresa Mlikota Chief Financial Officer Investor.relations@emecogroup.com emecogroup.com
Emeco Holdings — Euroz Hartleys Rottnest Island Institutional Conference 2024 on 6ix