Perenti Limited · ASX:PRN
Perenti — FY2023 Earnings Presentation
31 slides from Perenti's earnings presentation, Aug 22, 2023
Slide 1: FY23 Results
(—O Perenti FY23 Results 22 August 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation and these materials (together the “Presentation”) have been prepared by Perenti Limited ABN 95 009 211 474 (ASX:PRN) You should consult your own advisors as to legal, tax, financial and related matters and conduct your own investigations, enquiries a
Slide 3: FY23 Overview
(—O Perenti FY23 Overview
Slide 4: FY23 | Strong performance delivers record financial results
FY23 | Strong performance delivers record financial results REVENUE EBITDA EBIT(A) EBIT(A) Margin $2.9B $553M $264M 9.2% ▲ 18% on FY22 ▲ 30% on FY22 ▲ 50% on FY22 ▲ 27% on FY22 Record revenue supported by Record EBITDA Record EBIT(A) on strong operational Margin growth as operating and progressive r
Slide 5: FY23 | Business overview
FY23 | Business overview Our People • We acknowledge the tragic loss of Trevor Davis and Dylan Langridge at Dugald River. We continue to strive to improve safety performance across the business and combined with the work of the Safety Transformation Taskforce, we seek to eliminate fatalities. • A FY
Slide 6: FY23 | Sustainability embedded into everything we do
FY23 | Sustainability embedded into everything we do 6
Slide 7: FY23 Business Performance
(—O Perenti FY23 Business Performance
Slide 8: Group performance – record revenue and underlying earnings
Group performance – record revenue and underlying earnings REVENUE 1 EBITDA 1 EBIT(A) 1 ROACE 1 $2,880M ▲18% YoY $553M ▲30% YoY $264M ▲50% YoY 21.1% ▲39% YoY 2,880 553 264 2,438 21.1% 426 2,022 380 15.2% 171 176 14.3% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY23 EBIT(A) call-outs
Slide 9: Contract Mining: Underground mining – record performance
Contract Mining: Underground mining – record performance REVENUE EBIT(A) EBIT(A) Margin $2,021M ▲16% YoY $257M ▲39% YoY 12.7% ▲20% YoY 257 13.6% 2,021 12.7% 1,737 200 10.6% 1,476 185 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 • Revenue 16% stronger than FY22 with improved • FY23 EBIT(A) up 39% on
Slide 10: Contract Mining: Surface mining – Another year of growth
Contract Mining: Surface mining – Another year of growth REVENUE 1 EBIT(A) 1 EBIT(A) Margin1 $661M ▲19% YoY $62M ▲106% YoY 9.4% ▲73% YoY 661 62 9.4% 554 410 5.4% 30 3 0.6% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 • Significant improvement across all AMS projects • FY23 earnings more than doubled
Slide 11: Mining Services and idoba – Investing for our future
Mining Services and idoba – Investing for our future REVENUE EBIT(A) EBIT(A) Margin $198M ▲35% YoY $7M ▼45% YoY 3.7% ▼59% YoY 198 9.0% 13 7.3% 147 10 135 7 3.7% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 • BTP revenue increased YoY on continued strong • Supply Direct improved operational performan
Slide 12: Perenti EBIT(A) margin expansion to FY25
Perenti EBIT(A) margin expansion to FY25 Perenti continuing to deliver improved performance with the acquisition of DDH1 offering further upside 10.4% >10% 10.0% 9.2% ~9.3% 8.4% Adjusted margin 8.0% 8.8% 7.2% 6.0% Indicative EBIT(A) margin expansion by category to FY25 (approximate) 4.0% 2.0% 0.0% F
Slide 13: FY23 Financials
(—O Perenti FY23 Financials
Slide 14: Underlying profit and loss
Underlying profit and loss $M1 FY22 FY23 Change • Delivered record revenue, record EBITDA, record EBIT(A), and record NPAT(A). Revenue 2,437.7 2,880.1 ▲18.2% • In-line with revised FY23 guidance, revenue was $2.9 billion, up 18% as growth EBITDA 426.4 552.6 ▲29.6% projects progressed through their r
Slide 15: Reconciliation of underlying to statutory
Reconciliation of underlying to statutory $M REVENUE EBITDA EBIT NPAT Underlying results 2,880.1 552.6 264.1 131.8 Margin (%) - 19.2% 9.2% 4.6% Add non-recurring items below Transaction, restructuring and other one-off costs - (2.3) (2.3) (2.3) Non-cash impairment related to the sale of non-core - (
Slide 16: Cash flow and cash conversion
Cash flow and cash conversion $M FY22 FY23 Change Operating cash flows (before interest and tax) 458.9 522.7 ▲13.9% • Net interest paid was up 20% due to: Operating cash conversion1 108% 95% ▼12.1% • USD/AUD exchange rate fluctuations which impact on both RCF and US144a notes; Net interest paid (49.
Slide 17: Cash flow waterfall
Cash flow waterfall • FY23 operating free cash flow increased by $101.8m since FY22. • FY23 Net free cash after capex was up $88.4m since FY22. 93.1 • In-line with our 2025 Strategy and capital prioritisation activities, as forecast growth capital was moderated and strategic portfolio rationalisatio
Slide 18: Liquidity and capital management
Liquidity and capital management GROUP DEBT ($M) FY22 FY23 US guaranteed senior notes (A$) 651.7 649.7 Revolving credit facilities 198.8 113.0 Asset finance and other funding 51.3 43.6 Total borrowings and lease liabilities 901.9 806.4 Cash and cash equivalents (348.5) (307.4) Net Debt 553.3 499.0 G
Slide 19: Perenti to combine with DDH1
(—O Perenti Perenti to combine with DDH1
Slide 20: We are strategically positioning our business for long-term trends
We are strategically positioning our business for long-term trends Decarbonisation, energy transition and autonomy Demand for critical 4x increase minerals by 20401 Global mining contractor Tier 1 global drilling with market leading provider known for its capabilities in specialisation in deep Decli
Slide 21: Compelling strategic rationale
Compelling strategic rationale Enhances Perenti’s position as the leading ASX-listed contract mining services company DDH1 is a leading global ▪ Complete range of underground and surface drilling services, including Tier 1 global drilling drilling provider with specialisation in deep and directional
Slide 22: Compelling pro-forma financial profile | Continued improvement
Compelling pro-forma financial profile | Continued improvement FY23A FY23E FY23PF Perenti DDH1 Perenti + DDH1 3 Revenue1 $2.9b $0.55b $3.45b EBIT(A) margin1 9.2% ~13% ~10% Leverage 0.9x ~0.2x <0.9x Effective tax rate 34.6% 30% 31% Australian earnings2 48% 91% 55% ▪ Realisation of operational and lis
Slide 23: Compelling logic that is highly synergistic and value accretive
Compelling logic that is highly synergistic and value accretive High degree of strategic alignment that bolsters Scenario analysis supports valuation and value Perenti’s underground service offerings accretion under a wide range of outcomes ~150% uplift in free cash flow 1 ✓ Conducted signific
Slide 24: FY24 and Outlook to FY25
(—O Perenti FY24 and Outlook to FY25
Slide 25: FY24 | Guidance
FY24 | Guidance TARGETING No life changing events HOW WE WILL DELIVER • Meaningfully progress our sustainability priorities. REVENUE $2.8B to $3.0B • Extend key contracts and secure new projects in target jurisdictions. • Capitalise on the continuation of positive momentum and strong project perform
Slide 26: Significant work to date with further valuation upside
Significant work to date with further valuation upside Value creation to date Sustainability value creation Delivered record revenue, earnings and profit, with significant YoY margin improvement Upside from Announced the value accretive acquisition of DDH1 idoba valuation Further growth Organic and
Slide 27: Thank you
Thank you perentigroup.com Perenti is a diversified mining services group with interests in contract mining, mining support services and future technology solutions. The Group was founded in Kalgoorlie in 1987 and is today one of the world’s largest mining services SUSTAINABILITY EMBEDDED IN compani
Slide 28: APPENDIX: Underlying financials
APPENDIX: Underlying financials Group ($M) FY22 FY23 Change (YoY) Revenue 2,437.7 2,880.1 ▲ 18.2% EBITDA 426.4 552.6 ▲ 29.6% EBIT(A) 176.3 264.1 ▲ 49.8% NPAT(A) 83.6 131.8 ▲ 57.7% Cash Conversion 108% 95% ▼ 12.4% Net Debt 553.3 499.0 ▼ 9.8% Leverage 1.3 0.9 ▼ 29.7% ROACE 15.2% 21.1% ▲ 38.8% Undergro
Slide 29: APPENDIX: FY23 revenue breakdown
APPENDIX: FY23 revenue breakdown Mining Revenue by Project (%) Group Underground Surface Services* Top Project 6.2% 8.8% 22.0% 72.3% Top 2 – 10 projects 41.4% 54.5% 63.4% 12.7% Top 11-20 projects 26.4% 29.6% 9.4% 10.1% All others 25.9% 7.2% 5.2% 4.7 Revenue by Country (%) Australia 47.7% 49.8% 30.7%
Slide 30: APPENDIX: Our diversification | Revenue breakdown
APPENDIX: Our diversification| Revenue breakdown 6% 7% 31% 19% Revenue by Project 42% FY20 Not reliant on any one project for revenue FY23 40% 22% 26% Top project Top 2 to 10 projects Top 11 to 20 projects All others 8% 4% 6% 10% Revenue by Country FY20 44% Increased revenue from Tier 1 mining juris
Slide 31: APPENDIX: WIH and Pipeline breakdown
APPENDIX: WIH and Pipeline breakdown Current operations and offices Value ($B) Work in Hand Pipeline Australia 2.1 4.6 West Africa 1.8 1.4 Botswana 1.1 2.5 Southern Africa 0.2 2.6 North America 0.1 3.4 TOTAL 5.3 14.4 Value ($B) Work in Hand Pipeline Gold 3.3 8.0 Copper 1.2 2.5 Nickel 0.7 1.5 Zinc 0.