Sgh Limited · ASX:SGH
Sgh — Seven Group Holdings — Investor Day (June 2022)
103 slides from Sgh's investor day presentation, Jun 20, 2022
Slide 1: Investor Presentation – ASX cover letter
20 June 2022 For personal use only Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 INVESTOR PRESENTATION Please find attached an investor presentation to be given today at WesTrac Australia in Perth, by Mr Ryan Stokes AO, Managing Director & CEO,
Slide 2: SGH Investor Day Presentation, Perth
20 June 2022 For personal use only SGH Investor Day Presentation Perth
Slide 3: Site Safety and Facilities
Seven Group Holdings Introduction Site Safety and Facilities For personal use only 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 2
Slide 4: Agenda
Seven Group Holdings Introduction Agenda Update For personal use only Item Presenter Time Group Overview Ryan Stokes, Richard Richards, James Goth, Gitanjali Bhalla 8:00 am Break – coffee 9:00 am WesTrac Presentation Jarvas Croome, Adrian Howard 9:15 am Break – morning tea 10:35 am Coates Presentati
Slide 5: Group Overview
Seven Group Holdings For personal use only Group Overview Ryan Stokes MD & CEO Richard Richards CFO James Goth Chief Operating Officer Gitanjali Bhalla Chief People Officer 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 6: Management Team
Seven Group Holdings Group Overview Management Team For personal use only Ryan Stokes Gitanjali Bhalla James Goth Richard Richards Managing Director & CEO Chief People Officer Chief Operating Officer Chief Financial Officer Margaret Hall Jarvas Croome Adrian Howard Murray Vitlich CEO SGH Energy CEO
Slide 7: Board Overview
Seven Group Holdings Group Overview Board Overview For personal use only Board objectives and composition Skills and Experience Percentage • Focused on governance, independence and long-term sustainable Executive leadership 100% value creation for all shareholders • Board comprises 78% independent d
Slide 8: Businesses and Markets
Seven Group Holdings Group Overview Businesses and Markets For personal use only Industrials Industrials Industrials Energy Media 100% 100% 70% Beach 30% SGHE 100% 39% WesTrac is one of the largest Coates is Australia’s largest Boral is Australia’s largest Beach Energy is a leading mid- Seven West M
Slide 9: Key Attributes
Seven Group Holdings Group Overview Key Attributes For personal use only Leading businesses… In attractive sectors… With defendable positions… Run by talented management… Supported by Group capability 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 8
Slide 10: Key Themes
Seven Group Holdings Group Overview Key Themes For personal use only Mining Production Infrastructure East Coast Gas / LNG Leading market positions No fixed price construction Privileged assets Capable management teams or contract risk EBIT % ROCE Cash Flow Dividend TSR 20 June 2022 SGH Investor Day
Slide 11: Group Then and Now
Seven Group Holdings Group Overview Group Then and Now SGH market capitalisation For personal use only $6.2bn $204m market $2.8bn value of SWM $1.4bn market value of media $1.2bn value of energy assets investments ($853m Beach MV, $282m SGHE BV) (SWM, CMH) 10 years ago Current (30 June 2012) (31 Dec
Slide 12: Purpose, Objective and Values
Seven Group Holdings Group Overview Purpose, Objective and Values For personal use only Owners Mindset Courage • Commit to achieving our long-term objectives • Empower and trust our and delivery of outcomes people to recognise and pursue opportunities Recognising • Invest in businesses where the inv
Slide 13: Investment Approach
Seven Group Holdings Group Overview Investment Approach For personal use only Long term Ability for SGH High conviction Transaction horizon to add value approach execution • Identify mega trends • Ideas that matter • Opportunistic timing • In-house execution • Invest through the cycle • Disciplined
Slide 14: Key Priorities & Growth Focus
Seven Group Holdings Group Overview Key Priorities & Growth Focus For personal use only WesTrac Coates Boral • Product support focus • Growth of solutions • Recycling/waste sector • Mining market share - Engineering Solutions • Surplus property development Grow • Adjacencies - Industrial Solutions •
Slide 15: Unique Strengths
Seven Group Holdings Group Overview Unique Strengths For personal use only • Leveraged to the mining production cycle – recurring after market support • Strong mining and construction demand in WA and NSW • CAT product technology advantage 1988 Transaction • National infrastructure exposure without
Slide 16: Why SGH?
Seven Group Holdings Group Overview Why SGH? For personal use only Great businesses Alignment of Shareholding is Superior benefiting from strong purpose and values co-investment – sustainable economic outlook Owner’s Mindset returns 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 15
Slide 17: Years of Active Portfolio Management
Seven Group Holdings Group Overview 10 Years of Active Portfolio Management For personal use only $25 M&A activity Boral 69.6% stake via takeover offer Capital management 4 9 Share buyback 3 7 $20 8 2 6 5 Beach Coates 100% Holding acquisition 30% $488m $15 WesTrac Boral China sold 1 Beach Substantia
Slide 18: Return on Equity
Seven Group Holdings Group Overview Return on Equity For personal use only Notes: Return is based on Underlying EBIT/Segment Net Assets (data per SGH Annual Reports); Coates return is based on equity accounted results up to FY16 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 17
Slide 19: Cash Flow, Dividend and TSR
Seven Group Holdings Group Overview Cash Flow, Dividend and TSR For personal use only Delivery of cash flow … To maintain and grow the dividend… And create long-term shareholder value 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 18
Slide 20: Funding Structure
Seven Group Holdings Group Overview Funding Structure For personal use only Strong credit support for the Group • Viewed as an investment grade credit • Backed by strong historical and projected operating cash flow • Corporate syndicated facility increased by $280m in April • Ability to fund via alt
Slide 21: Capital Management
Seven Group Holdings Group Overview Capital Management For personal use only Refinance Funding Capacity Reinvestment Dividend $280m increase in corporate Framework with key lenders to Coates fleet, WesTrac capacity Maintain dividend facility to restore liquidity buffer support future investments exp
Slide 22: Operating Model Principles
Seven Group Holdings Group Overview Operating Model Principles For personal use only Clarity between role of Focus on Operational Robust approach to Exceptional People Group vs Business Units Excellence Financial Returns • Strong management • Autonomy with Accountability • Leverage of best practice
Slide 23: Operating Model
Seven Group Holdings Group Overview Operating Model • Lean corporate structure operates as a Centre of excellence For personal use only • Autonomous business units with true P&L accountability • Defined accountability and areas of focus for Group and BU Exceptional people Operational excellence Fina
Slide 24: People & Culture
Seven Group Holdings Group Overview People & Culture For personal use only Strategic Objective, Purpose and Values underpin SGH culture Safety Strong Leadership Capabilities Training and Development • Zero Harm Culture, keeping our people • Values aligned, best in class leadership • Critical to acce
Slide 25: Approach to Skilled Labour Shortages
Seven Group Holdings Group Overview People and Culture For personal use only Approach to Skilled Labour Shortages Training & Sourcing Ways of Working Automation Retention Development • International • Trade Upgrade • Workflow redesign to • Robotic process • Differentiated EVP recruitment / referral
Slide 26: Operating Themes
Seven Group Holdings Group Overview Operating Themes For personal use only Pricing agility and Innovation and Customer excellence Data and digital discipline improvement • Working with our • Pricing for value • Digital tools for the • Innovation roadmaps customers to secure workshop floor and across
Slide 27: Emissions Reduction
Seven Group Holdings Group Overview Emissions Reduction For personal use only SGH targets covering Coates and WesTrac announced FY21 • Net zero by 2040, with 30% reduction by 2026 and 50% by 2030 • Roadmaps defined and underway Boral with targets and sustainability reporting since 2017 • FY30 emissi
Slide 28: Ten Material ESG Issues
Seven Group Holdings Group Overview Ten Material ESG Issues For personal use only Safety Diversity Employment Emissions Waste & Water #1 priority Targets in place 44% regional Net zero by 2040 Baselining Lead+lag indicators Gender base pay parity Culture programs Greener Choices Reducing landfill Ma
Slide 29: SGH Industrial Services, Media, Energy and Investments
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Slide 30: WesTrac
For personal use only WesTrac Jarvas Croome CEO WesTrac Australia Adrian Howard CE WesTrac NSW/ACT 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 31: WesTrac Who We Are
WesTrac Who We Are For personal use only Our mission is to provide ground breaking equipment solutions that help build the world. As one of the world’s leading Caterpillar dealers, WesTrac specialises in providing equipment solutions to the mining, construction, forestry, agriculture, and transport
Slide 32: WesTrac Values
WesTrac Values For personal use only Safety Pride Accountability Respect Customer Looking out for me and Pride in our work, in Taking ownership and We value and We provide solutions, my mates. ourselves, in our responsibility for our acknowledge others' service and business and in our actions. views
Slide 33: WesTrac Strategy
WesTrac Strategy For personal use only Strategic objective To be the customers’ first choice in equipment solutions with zero harm safety culture and a focus on growth and sustained profitability • A positive attitude to safety that drives zero harm; • Focus on mining, contracting and civil infrastr
Slide 34: Operational Footprint WA
WesTrac Operational Footprint WA For personal use only 1990 2,945 Year of Number of commencement Team Members >21,000 Iron Ore Total Machine Population Key (inc engines) Commodity • In addition to our main facility at South Guildford are 11 branches and three onsite operations. • A number of dedicat
Slide 35: Operational Footprint NSW
WesTrac Operational Footprint NSW For personal use only 2004 1,612 Year of Number of commencement Team Members >25,000 Coal Total Machine Population Key (inc engines) Commodity • Our state-of-the-art NSW operational headquarters are located in Newcastle. • Designed as a long-term commitment of servi
Slide 36: WesTrac Our People
WesTrac Our People For personal use only • Our people are a part of a dedicated and highly professional team of over 4,000 who are the leaders in our industry. • We provide our team members with comprehensive learning and WesTrac personnel WA NSW development programs designed to encourage profession
Slide 37: Attraction & Retention
WesTrac Attraction & Retention For personal use only Made for More • Our team are a critical element in delivering the best outcomes for our customers. • WesTrac has consistently shown strong retention, offering a unique value proposition, underpinned by industry leading training. • We have just lau
Slide 38: WesTrac Training
WesTrac Training For personal use only Training solutions • Apprenticeships, Dual Trade and Trade Upgrade programs. • Post Trade technical training. • Safety training & compliance. • Technology training. • Business & Leadership training. WesTrac technology training centre • Constructed in Collie and
Slide 39: WesTrac End Markets
WesTrac End Markets For personal use only (Coal, Iron Ore, Gold, Lithium, Nickel, Construction) MINING HEAVY GENERAL (OWNER & CONTRACTING) CONSTRUCTION GCI CONSTRUCTION BCP Power Supply Hire Civil Quarry Government Marine Forestry 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 38
Slide 40: WesTrac Mining
WesTrac Mining For personal use only Successful customer relationships WesTrac has been successful in securing strong new and used equipment sales such as: • Bloomfield • Newmont • BHP • Northern Star • Glencore • Rio Tinto • Mineral Resources • Yancoal • Newcrest • Hundreds of additional and replac
Slide 41: Caterpillar Large Mining Truck Autonomy
WesTrac Caterpillar Large Mining Truck Autonomy For personal use only Caterpillar has invested in autonomous >25 24/7 operations on three continents: North and South development Years America, 11 20 0 ~30% Australia Customers Sites Injuries Productivity improvement Commodity applications: 4b+ tonnes
Slide 42: Active Population Market Share
WesTrac Active Population Market Share For personal use only Population and Rank in the Market 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 41
Slide 43: Customer Experience
WesTrac Customer Experience For personal use only Leveraging data and insights to improve customer experience FitFleet customer portal Designed to provide customers with access to key information about their equipment, service schedules, work orders and invoicing, it is easy to use, customer focused
Slide 44: FitFleet Customer Value Agreement
WesTrac FitFleet Customer Value Agreement (CVA) For personal use only Customer story • A FitFleet CVA is an ongoing support and maintenance solution provided by WesTrac. • There are four types of FitFleet CVAs available, each offering different levels of support – Essentials, Plus, Premium and Ultim
Slide 45: WesTrac Rebuild
WesTrac Rebuild For personal use only 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 44
Slide 46: SGH Investor Day Presentation June 2022
SGH Investor Day Presentation 20 June 2022 For personal use only
Slide 47: Thiess Drill Automation
WesTrac Thiess Drill Automation For personal use only • Thiess have been on a four year journey to strengthen their autonomous drilling capability. • Thiess introduced a new Cat MD6250 drill rig with autonomous drilling capability at Mount Pleasant NSW. • The autonomous drilling product uses state-o
Slide 48: Rio Tinto Tele-remote Dozing
WesTrac Rio Tinto Tele-remote For personal use only Dozing story and media • A new tele-remote dozing system (TDS) at Rio Tinto’s iron ore operations in Western Australia is wholly focused on operator safety. • Utilising Cat MineStar Command for Dozing and a dedicated operator control centre, Rio Ti
Slide 49: CAT Providing Integrated Solutions
CAT Providing Integrated Solutions For personal use only Recip or Gas Renewable Utility Storage Turbine Energy Energy Solutions Generation Generation Cable Static Crusher Reel Opportunity Charging Rail Trolley Substation Cable Substation Reel Port 20 June 2022 SGH Investor Day Presentation Processin
Slide 50: WesTrac Financial
WesTrac Financial For personal use only Privileged mining market exposure • Two of the best performing Cat dealers globally with diversified mining and general construction market exposure. • Key role of dealer is service and support. • Listed Cat dealer multiples have expanded 3.1 turns over a deca
Slide 51: WesTrac Key Messages
WesTrac Key Messages For personal use only • Both states will benefit from an aging equipment population supporting continued fleet replacement and solid parts and services in light of current average fleet lives. • Commodity volumes remain strong with further predicted growth for iron ore over the
Slide 52: SGH Industrial Services, Media, Energy and Investments
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Slide 53: Coates
For personal use only Coates Murray Vitlich CEO 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 54: Coates History
Coates History For personal use only 1885: John Coates & Co Ltd is founded in Melbourne Australia’s leading equipment hire provider, operating across a range of markets including: 1955: Coates Hire is established • engineering, • construction, • mining and resources, • Agriculture, and • infrastruct
Slide 55: Coates Branch Network
Coates Branch Network For personal use only • Largest national footprint • 150 specialist and general hire branches Winnellie Winnellie Winnellie Winnellie Winnellie Weipa Weipa Weipa Weipa Weipa • National coverage key competitive strength to serve customers Cairns Cairns Cairns Cairns Port
Slide 56: Financial Performance: FY12–FY22(H1)
Coates Financial Performance: FY12–FY22(H1) For personal use only 350 25.3% 30.0% 326 300 22.4% 24.1% 25.0% 22.4% 277 21.0% 20.9% 250 20.0% 17.3% 17.7% 200 15.6% 212 201 204 188 15.0% 13.0% 172 150 11.4% 11.2% 13.0% 142 12.0% 11.8% 11.6% 10.0% 100 10.3% 10.2% 119 104 97 8.1% 7.3% 5.0% 50 5.3% 4.5% 0
Slide 57: Team25 Strategy
Coates Team25 Strategy For personal use only Safety, people and culture Differentiated customer experience • Embed and mature a Safety First culture • Enhance and focus Voice of Customer • Bring Coates values to life • Improve customer experience • Transformation to improve safety, • Develop and tra
Slide 58: Coates FY22 Highlights
Coates FY22 Highlights For personal use only Growth • Delivered growth in Engineering Solutions and Industrial Solutions • National partnership with Bunnings, extended to Toolkit Depot People and Culture • Commenced the rollout of the Hire Road program to embed Coates values • Launched sustainabilit
Slide 59: Coates Macro Trends
Coates Macro Trends For personal use only COVID-19 uncertainty Labour market shortages Expected and recovery and talent Migration infrastructure boom Sustainability and Inflationary expectations Supply chain climate Focus challenges 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 58
Slide 60: Current Market Share
Coates Current Market Share For personal use only Estimated Coates vs Addressable AU Significant and growing marketshare Rental Market $4.0 B 40.0% • Total Australian rental Market $5.2B $3.5 B 35.0% • Overall – 19.3% Market share (up from 18.7% in 2021 $3.0 B 30.0% – 21.0% market share – Top Tier c
Slide 61: Australian Fleet Profile
Coates Australian Fleet Profile For personal use only Australian Fleet Trends – Age and Scale 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 60
Slide 62: Maximising Coates Operating Leverage
Coates Maximising Coates Operating Leverage For personal use only • FY12 TU peak driven by unique mining boom conditions. • Opportunity to challenge historical operating limit of 60%. • Coates strategy targets +63% in line with global best practice. • Project Equipped will refine the Coates operatin
Slide 63: Disciplined Capital Allocation & Life Cycle
Coates Disciplined Capital Allocation & Life Cycle For personal use only Capital management process to meet the market • Formal investment approval process – Investment Committee prioritises investment. • Disciplined capital benchmarking (hurdles) across network. Post Market based • Continual analy
Slide 64: Improving Our Commercial Performance
Coates Improving Our Commercial Performance For personal use only Market penetration Price optimisation centrally lead Network discipline • Market segmentation approach • Digital application (MySales) – price channel • Standard operating models – inc. hub and • Refine focus on Mid-tier & Trades guid
Slide 65: Sustainability Strategy
Coates Sustainability Strategy For personal use only Coates’ Sustainability Plan recognises that sustainability is a key aspect of our current and future success • Leverage what we already do well and stretch into new areas • Sustainability Playbook “Towards sustainability, the smart way” • Framewor
Slide 66: Solutions Offering
Coates Solutions Offering For personal use only General Hire Engineering Solutions Industrial Solutions Power and HVAC Solutions Technology Training 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 65
Slide 67: Our Digital Capability
Coates Our Digital Capability For personal use only Top and Mid-tier customers have easy access to their hire information through the Coates Connect portal, including telemetry data, such as utilisation and equipment location. Our eco-system includes telemetry sensors in-built by OEMs and a custom d
Slide 68: Key Messages and Outlook
Coates Key Messages and Outlook For personal use only Building on our strengths, Coates is focused on being the market leader in safe, smart and sustainable equipment solutions. Key to bringing our strategy to life is: Growth & market penetration Expanding our end-to-end Focus our product performan
Slide 69: SGH Industrial Services, Media, Energy and Investments
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Slide 70: Boral
For personal use only Boral Ryan Stokes Chair 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 71: Boral Iconic Brand With Year History
Boral Iconic Brand With 76 Year History For personal use only Strong brand and national identify, supplying numerous iconic construction projects 1946 Late Early 1979 1987 2000 2017 2022 Bitumen and Oil 1940s 1970s Acquires US Acquires Blue Circle Energy division Acquires Largest Australian Refineri
Slide 72: Portfolio Realignment Completed
Boral Portfolio Realignment Completed For personal use only FY20 FY21 to Feb-22 FY22 Diverse portfolio of businesses Divested non-core assets with Focused Australian construction across multiple geographies value returned to shareholders materials business • USG Boral 50% JV • Delivered combined pro
Slide 73: Attractive Integrated Network
Boral Attractive Integrated Network For personal use only Vertically integrated positions across value chain in key regions, especially east coast CEMENT1 QUARRIES Revenue by end-market 367 operating sites • 1.5mt clinker kiln • ~30mt3 segments FY21 capacity • plus Recycling FY21 • ∼4.6mt cement cap
Slide 74: Privileged Quarries Position
Boral Privileged Quarries Position For personal use only ∼1.0bn tonnes quarries reserves, with 20–50 years reserves in key metro regions • 67 quarries supplying ∼30m tonnes p.a. • Well-located key metro quarries • Recent $30m Hillview Sands acquisition enhanced Western Peppertree quarry photo Melbou
Slide 75: Changing Cement Industry Dynamics
Boral Changing Cement Industry Dynamics For personal use only • Increased shipping costs and supply chain constraints has Cement capacity in Australia1 Cement usage is ∼11.5mt p.a.2 increased attractiveness of domestic clinker manufacturing 90% of demand served by locally milled clinker. Of this pos
Slide 76: Leading Sydney Integrated Network
Boral Leading Sydney Integrated Network Seven Group Holdings For personal use only 151 151 151 151 151 151 151 151 Peats Ridge • Large scale, low cost, upstream quarry positions -34 Windsor Mt Kuring-Gai − Peppertree supplies baseload – ∼2.8m tonnes capacity Glenorie -34 − Dunmore and Peats Ridge qu
Slide 77: Optimising Supply Chain Logistics
Boral Optimising Supply Chain Logistics For personal use only Materials movements • Utilising fleet to improve connectivity between concrete plants, quarries, asphalt and cement sites, Upstream Wholesale Downstream Retail Customer and delivery to customers Operations Logistics Operations Logistics −
Slide 78: Major Projects
Boral Major Projects For personal use only • ∼10% of FY21 revenue from major projects1 Sydney Metro West – CTP • Major infrastructure pipeline remains strong Sydney Metro West – • Providing a high early strength CTP photo solution • Recent decisions to delay/cancel major government • ∼ 150,000 m3 co
Slide 79: Attractive Surplus Property Portfolio
Boral Attractive Surplus Property Portfolio For personal use only • Portfolio of >30 surplus property assets • Market value of at least $850m NT New South Wales − Book value of property segment assets was $77m • Bombo (44.5 ha) at 31 Dec-21 QLD • Berrima (50 ha – surplus) • Emu Plains (6ha – surplus
Slide 80: Responding to Operating Challenges
Boral Responding to Operating Challenges For personal use only • Additional measures to mitigate impact of transport and fuel inflation in addition to out-of-cycle national FY22 operating challenges Jan/Feb-22 price increases • COVID-related construction shutdowns, excluding − More consistent and di
Slide 81: Strategic Priorities
Boral Strategic Priorities For personal use only With FOCUS pillar of strategic framework complete, efforts are on Completed POSITION and REDEFINE A FOCUS Boral’s portfolio and unlock value: B POSITION Divest businesses to strengthen the portfolio from both a strategic and financial perspective •
Slide 82: Redefining The Business
Boral Redefining The Business For personal use only C REDEFINE to become a leader in decarbonisation ENVISIA® has up to 43–49% lower Reshaping to offer customer-focused differentiated solutions embodied carbon1 Lower carbon concrete Offering Climate Active-certified • Full product suite offering lau
Slide 83: Priorities and Opportunities
Boral Priorities and Opportunities For personal use only SGH focused on executing its Boral value creation strategy • $4.7bn investment reduced to $2.6bn post capital return • Expectation that double-digit EBIT margins should be restored but will Ultimate Objective take longer than originally antici
Slide 84: SGH Industrial Services, Media, Energy and Investments
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Slide 85: SGHE Energy
SGHE For personal use only Energy Margaret Hall CEO SGHE 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 86: Strong Market Fundamentals
SGHE Energy Strong Market Fundamentals For personal use only Strong, sustained gas and LNG demand • Global and domestic energy market disruption will persist in the medium term • Australia is ideally positioned as a secure investment location and source of energy • Gas provides firming capacity to s
Slide 87: Beach Energy (30%)
SGHE Energy Beach Energy (30%) For personal use only Underinvestment in new supply, strengthening demand and renewed energy security concerns • Positive macroeconomic trend for energy, particularly gas as transitional energy source • Global economy entering a period of higher growth and inflation ma
Slide 88: Beach Energy: Diversified Portfolio
SGHE Energy Beach Energy (30%) For personal use only Diversified Portfolio is leveraged to strong gas and LNG markets • Diversified across six production hubs supplying three distinct gas markets • Supplying ~ 12% of annual east coast domestic gas demand, targeting an increase to ~ 16% in FY24 • Inv
Slide 89: Beach Energy: Demonstrated investment thematic
SGHE Energy Beach Energy (30%) For personal use only Demonstrated investment thematic • Leading Australian mid-cap Operator • Fully funded to deliver major capital programs with balance sheet strength • Net cash and material near-term FFO • Presence in basins with both organic and inorganic growth o
Slide 90: Crux Project (15.5%)
SGHE Energy Crux Project (15.5%) For personal use only Crux LNG-backfill Project Potential to realise near-term value through divestment • Offshore gas development of 550 million scf/d capacity • Offers LNG buyers a low-cost LNG source with security of • Positive FID with Shell (Operator) reached in
Slide 91: SGH Industrial Services, Media, Energy and Investments
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Slide 92: Seven West Media
For personal use only Seven West Media Ryan Stokes 20 June 2022 SGH Investor Day Presentation Seven Group Holdings
Slide 93: SWM Overview (38.9%)
Media SWM Overview (38.9%) For personal use only Undisputed National Undisputed Total Televison National Leader Leader Total Televison 91% Reach 91% Reach Publishing Ventures/Other assets 82% Reach Ventures Other assets 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 92
Slide 94: SWM Strategic Achievements
Media SWM Strategic Achievements For personal use only August 2019 Strategy Today • Challenging market with material Content Led Growth • Returned to leadership, earnings growing, headwinds balance sheet fixed • Losing ratings with stale and stagnant Transformation • Capturing share across broadcast
Slide 95: SWM Undisputed National Total TV Leader
Media SWM Undisputed National Total TV Leader For personal use only National total TV opportunity Seven Network returned to #1 with content led growth • #1 in metro broadcast with 40.3% revenue share (+3.7 points) • 7plus the #1 BVOD channel with over 12.5m verified users Leading national audience s
Slide 96: Content Investment Is Growing Audience
Media Content Investment Is Growing Audience For personal use only Broadcast and BVOD is the dominant form of consumption across all demographics 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 95
Slide 97: The New Way to Look at Audiences
Media The New Way to Look at Audiences For personal use only Total video and ad-supported in-home video viewing 20 June 2022 SGH Investor Day Presentation Seven Group Holdings 96
Slide 98: SWM investment proposition
Media SWM investment proposition For personal use only Total TV is swimming in a new lane… • Leading national total TV business positioned to capture share in broadcast and capitalise on the ongoing growth in BVOD • Strong financial position; target leverage ratio ~ 1–1.5x • Capital mgt strategy to
Slide 99: SGH Industrial Services, Media, Energy and Investments
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Slide 100: Group Closing
For personal use only Group Closing Ryan Stokes MD & CEO
Slide 101: Closing Key Messages
Seven Group Holdings Closing Key Messages For personal use only Leading In attractive With defendable Supported by businesses sectors positions Group capability Great businesses Capable Owner’s Outlook benefitting from management teams Mindset strong outlook • Mining production, • Disciplined • Alig
Slide 102: SGH Industrial Services, Media, Energy and Investments
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Slide 103: Disclaimer
Seven Group Holdings Disclaimer For personal use only Basis of preparation of slides • Abovementioned Guidance is subject to no material change to market conditions or disruptive weather events • Included in this presentation is data prepared by the management of Seven Group Holdings Limited (“SGH”)