Environmental Group Limited · ASX:EGL
Environmental — Shareholder Meeting (November 2019)
36 slides from Environmental's shareholder meeting presentation, Nov 13, 2019
Slide 1: The Environmental Group Limited
EGL The Environmental Group Limited ES ESk ome QUECL ACTAPC Battec = @BALTEC GPT BALTEC Werfuson WATER brasdecad 7
Slide 2: Disclaimer
Disclaimer The Environmental Group Limited (EGL) advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of EGL’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assu
Slide 3: Agenda
Agenda • Chairman's welcome, introduction of board members • Notice of meeting – taken as read • Chairman’s report • FY20 Outlook • Managing Directors report • Business – notice of meeting items • Financial statements and reports • Resolutions • Other business
Slide 4: Board Members
Board Members Lynn Richardson Non Executive Chairman Dean Dowie Managing Director David Cartney Non Executive Director Ellis Richardson Non Executive Director
Slide 5: Chairman’s Report
Chairman’s Report |S ESL em QVESL ZATAPC Bauree BBALTEC GPTBALTEC Werfuson WATER
Slide 6: The Environmental Group Limited
The Environmental Group Limited EGL employs advanced engineering technology in creating bespoke solutions that assist its customers in reducing toxic emissions, and in improving efficiency in their air, water and energy processes.
Slide 7: Financial Results
Financial Results Revenue CAGR 6% EBIT CAGR 17% Gross Margin % CACG 12.6% EBIT % CAGR 10.7%
Slide 8: Financial Commentary
Financial Commentary Revenue increased across the group by 2.5% at $33M for the year with an EBIT of $1.5M before significant items. This was in line with the full year forecast, with the contribution from Tomlinson Energy Service partially offsetting the downturn in the project work in Baltec IES a
Slide 9: EGL FY19 Highlights
EGL FY19 Highlights • Tomlinson Energy Service acquisition – this provides an annuity revenue stream to support the core project work in Baltec IES and TAPC • EGL Water. Positive test results for water treatment technology, most importantly demonstrating a capacity for the destruction of PFAS under
Slide 10: Looking Forward
Looking Forward Half year performance is forecast at slightly above breakeven as a result of sharper than anticipated declines in our traditional Gas Turbine market flow through the project pipeline. Full year results will strengthen due to market repositioning and deliver revenue close to the 3 yea
Slide 11: Enhancing shareholder value in 2020
Enhancing shareholder value in 2020 • Improving Shareholder Value will be a focus of the board in 2020 • Appointment of Sequoia Financial Group‘s corporate finance team to facilitate deeper investor engagement and to assist with strategic acquisition opportunities • Fully franked dividend history si
Slide 12: In Summary
In Summary FY19 results reflect both the challenges of a changing market for our core businesses and also the strong returns from the TES acquisition. FY20 will be a period of stabilisation and consolidation and is anticipated to produce continued revenue growth, predominantly in the second half, ho
Slide 13: Managing Directors report
Managing Directors report © ES QUEGL, ATAPC Exel HBATEC SeTAATEC Myfimson WATER Australiw
Slide 14: Baltec IES
= Baltec IES @ DALTEC EG AAAS BALTEC ¥PTBALTEC Werfuson 3 L Els INDONI ENERGY: € Fret Gn WATER ZS TAPC BALTEC IES
Slide 15: Baltec IES Business Overview
Baltec IES Business Overview Baltec supports the gas turbine industry transition from coal to renewable energy. Our designs maximise turbine energy efficiency, enabling it to generate increased power while consuming less fuel, minimising carbon footprint. Gas turbines support renewable energy with s
Slide 16: The market
The market • Traditional Gas Turbine market continues to be challenging with projects on hold due to finance and popularity of renewable energies. • 2 competitors have withdraw from the market • Baltec entered the profitable spare parts market • Whilst project size is reducing, enquiry numbers are g
Slide 17: Baltec Business Highlights
Baltec Business Highlights • Commenced cooperation with an agent in Beijing • According to the International Energy Agency & BP Energy outlook, China projections to 2040 indicate Gas Turbine Plants to increase 3-fold • 2 major projects awarded to Baltec by Chinese & Taiwan companies during last 15 m
Slide 18: Baltec IES Looking Forward 2020
Baltec IES Looking Forward 2020 • Expand the China focused activities, realise potential market circa $25m • Reserves over USD 3 trillion being used for new infrastructure & power plants in China & surrounding region • Continue to develop new clients & geographies • Drive the BD team to develop uniq
Slide 19: Tomlinson Energy Service (TES)
Tomlinson Energy Service (TES)
Slide 20: Tomlinson 2019 Business Overview
Tomlinson 2019 Business Overview • Since 1892 Tomlinson later known as RCR Energy Service has been associated with engineering & service excellence as a supplier of packaged boilers & energy systems. • Today Tomlinson Energy Service reflects the heritage and focus on sales & service of boilers and e
Slide 21: The Market
The Market • Traditionally a fractured market dominated by small players is changing • Rising costs, changes in public acceptance and scarcity of resources retained within Australia is leading to material shifts in the energy sector in Australia • Australia lags behind other developed countries in t
Slide 22: Tomlinson Business Highlights
Tomlinson Business Highlights • In the 8 months since acquisition TES has focused on consolidation of the business and development sales and management teams leading to stronger growth in the second six months of FY20 and beyond • TES have secured several major boiler Installations including the fol
Slide 23: TES Looking Forward 2020
TES Looking Forward 2020 • Focus of product sales; Bosch & JTPB WT boilers Weishaupt burner systems ARI valves Initec thermal Oil New water tube design Biomass boilers • Retain existing & expand customer base extending service into PNG • Consider the acquisition of boiler company • Increase boiler s
Slide 24: Total Air Pollution Control (TAPC)
Total Air Pollution Control (TAPC)
Slide 25: TAPC 2019 Business Overview
TAPC 2019 Business Overview • Based out of Wollongong TAPC is split into 2 areas each of which have a strong growth outlook • Project design & delivery • Contracting services • TAPC designed & manufactured systems enable clients to meet increasing environmental standards by reducing harmful particle
Slide 26: The Market
The Market • Technavio a global market research firm reports estimate that the global air pollution control market size will grow by USD 19 billion 2019-2023 • Allied Market Research published a report, titled, "Air Quality Control Systems Market that the global air quality control systems industry
Slide 27: TAPC 2019 Business Highlights
TAPC 2019 Business Highlights • TAPC business results were impacted by a slower first ½ year but marked some major wins. • Secured a 2 year $12.9 million project to reduce pollutants which includes design & supply of a gas scrubbing system for a processing rare earth plant based in remote WA. • Our
Slide 28: TAPC Looking Forward 2020
TAPC Looking Forward 2020 • Business Development in 2019 has continued to deliver strong sales pipeline growth. • Australia market: • Electric car & mobile device market growth is fuelling demand for rare earth mineral & driving growth of the rare earth market in WA, with 2 projects underway & more
Slide 29: EGL Water
EGL Water " EGL EGL ja € est... rant @ESL. ZS TAPC BALTEC
Slide 30: EGL Water Business Overview
EGL Water Business Overview • EGL holds a patented technology suitable for various uses, focusing on destruction of PFAS in water under testing with Victoria University Institute for Sustainability and Innovation • PFAS does not easily break down and is embedded into the natural environment, incl wa
Slide 31: The Market
The Market • Millennium drought is causing stress on all water processes • Key market players concentrating on municipal water sector • Australia’s aim to become the food bowl for asia is driving investment in food processing and manufacturing • Increased food production leads to increased water usa
Slide 32: EGL Water What is PFAS
EGL Water What is PFAS • PFAS : Per-and polyfluorinated alkyl substances (PFAS) are a group of manufactured chemicals which have been used in firefighting foams and other industrial and consumer products. • Whilst toxicity studies have raised important concerns, there is still much unknown about the
Slide 33: The Market (cont)
The Market (cont) • PFAS chemicals described as the new DDT pollute water, do not break down, remain in the environment and people for decades. • Studies have linked PFAS chemicals to: • Testicular, kidney, liver pancreatic and breast cancer. • Weakened childhood immunity • Low birth weight • Tumour
Slide 34: EGL Water Highlights
EGL Water Highlights • In conjunction with Victoria University’s Institute for Sustainability and Innovation, we have concluded that an 87% reliable PFAS reduction in contaminated water was achieved. This result signals potential for cost- effectively removing PFAS from the environment. • Initial tr
Slide 35: EGL Water Looking Forward 2020
EGL Water Looking Forward 2020 • Conclude university trials with PFAS treatment • Complete testing and process mapping at scale • Commercialisation of pilot plant for identified trials at scale • Full commercialisation of PFAS treatment plants delivering to the market a technology that cost effectiv
Slide 36: Other Business
Other Business Mr David Cartney is retiring from the board at the conclusion of the AGM. The board and staff of EGL would like to thank David for his contribution to the Group over the past five years and wish him all the best for the future.
Environmental Group — Shareholder Meeting (November 2019) on 6ix