19 February 2020 Company Announcements Office Australian Securities - PDF document

19 February 2020 Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street Sydney NSW 2000 By electronic lodgment Total Pages: 33 (including covering letter) Dear Sir / Madam PRESENTATION OF HALF YEAR RESULTS Following is the Presentation of Results for the half year ended 31 December 2019. Yours faithfully For and on behalf of Seven Group Holdings Warren Coatsworth Company Secretary Seven Group Holdings Limit ed | A BN 46 142 003 469 Lev el 30, 175 Liv erpool Street | Sydney NSW 2000 Aust ralia | Post al Address: PO Box 745 | D arlinghurst N SW 1300 Aust ralia T elephone + 6 1 2 8777 7447 | Facsimile + 6 1 2 8 777 7192

LEADING THE WAY FORWARD Investor presentation for the half-year ended 31 December 2019 19 February 2020

FY20 1H Results Presentation Seven Group Holdings 2 19 February 2020 GROUP OVERVIEW Our objective is to grow shareholder returns by ensuring our businesses continue to perform and deliver market-leading positions

FY20 1H Results Presentation Seven Group Holdings 3 19 February 2020 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Keeping our people safe continues to be our top priority LTIFR TRIFR • Total hours worked increased by 12% over pcp, however overall safety performance has improved over that period Dec 2019 Dec 2018 Dec 2019 Dec 2018 • Supported by significant improvement in business unit performance: WesTrac WA 0.9 1.6 8.2 8.6 – WesTrac WA LTIFR – Coates Hire LTIFR and TRIFR WesTrac NSW 0.6 0.3 8.8 7.8 • Continued focus on lead indicators and initiatives to further drive Coates Hire 1.0 1.9 9.5 17.5 improvements in safety culture • Increase in AllightSykes LTIFR and TRIFR is an area of specific AllightSykes 0.0 7.3 7.3 14.5 focus for the new leadership team SGH Energy 0.0 0.0 0.0 0.0 Initiatives underway to develop our greatest asset, the people Group Total 1.1 1.4 9.0 11.8 who work across our businesses • Programs (training, apprenticeships, trade upgrades) to uplift the – Lost time injury frequency rate (LTIFR) = number of lost time injuries per million hours worked – Total recordable injury frequency rate (TRIFR) = number of recordable injuries per million hours skills and capability of our people to better address potential skilled worked labour gaps – Statistics are calculated on a rolling 12 months basis • Continued focus on cultural transformation programs to build – Results for previous periods may be adjusted following post incident investigation and review leadership capability and nurture an open and inclusive culture that values diversity

FY20 1H Results Presentation Seven Group Holdings 4 19 February 2020 GROUP OVERVIEW BUSINESSES AND MARKETS Mining production • We provide equipment solutions to the world’s Industrial Industrial Energy Media largest miners, supporting record production services services investments volumes and driving efficiency Infrastructure investment • We are the largest national equipment hire business, providing solutions to major infrastructure and construction customers with a strong pipeline of committed government projects WesTrac (100% owned) Coates Hire (100% Beach Energy (28.6% Seven West Media (40% East coast gas is one of the largest CAT owned) is the largest owned) is a leading owned) is a leading • Beach and SGH Energy are well positioned to dealers globally (by nationwide industrial mid-cap E&P business diversified media sales) and supports and general equipment and a key supplier to a company in Australia meet growing East Coast gas demand and customers in Australia’s hire company growing East Coast with 2,700 employees domestic LNG export opportunity rich iron ore and thermal market coal regions Diversified investments • Strong balance sheet to pursue growth SGH Energy (100% opportunities within or adjacent to our existing 28 branches and 3,350 owned) holds operated Monthly Australia-wide Over 160 branches and core businesses employees and non-operated oil audience reach of: 2,150 employees and gas interests - 17.7m in Seven Network including 15% of the - 8m in 7Digital Crux LNG Project - 3m in WAN + digital Key customers: BHP, Key customers: Alinta, Other media investments Key customers: BMD, CIMIC, FMG, Glencore, AGL, Adelaide Brighton, include interests in China CIMIC, Downer, FMG, Macmahon, Mineral Origin Energy P/E funds John Holland, Lend Resources, Rio Tinto, Lease Roy Hill Note: based on segment asset values as at 31 December 2019

FY20 1H Results Presentation Seven Group Holdings 5 19 February 2020 BUSHFIRE RELIEF IN PICTURES

FY20 1H Results Presentation Seven Group Holdings 6 19 February 2020 BUSHFIRE RELIEF IN PICTURES

FY20 1H Results Presentation Seven Group Holdings 7 19 February 2020 BUSHFIRE RELIEF SUPPORTING OUR COMMUNITIES Uniquely positioned to assist our communities • Over 5,750 staff across the Group with incredible work undertaken by 35 of our brave and committed people who serve in the RFS and other volunteer services – Providing paid leave for all leave taken by employees to fight recent bush fires and support affected communities • The diversity of our Group uniquely positions us to respond to the crisis through industry- leading equipment and our team’s motivation and skills $10m pledged by SGH and its majority shareholder • SGH pledge of $5m to directly support firefighting efforts, disaster recovery and the long-term task of rebuilding communities and ensuring support for mental health Equipment deployed to date • Matched by $5m pledge by Australian Capital Equity (ACE) • Cobargo: shower and toilet blocks, • Using the resources of the Group to support the rebuilding and recovery of affected portable facilities, 50x 2-3kva generators, communities 2x 4WD dual cabs, 1x 301.8 hydraulic Contribution to date of $2.8m combined excavator, fencing material • Balmoral: 2x bushfire recovery containers • Equipment and services deployed to the RFS, BlazeAid and ADF in NSW and working with CFS Victoria and CFA South Australia to assess needs • Bega: 1x 962M wheel loader • Direct funding provided to BCA’s Australian Volunteer Support Trust and Community • Canberra (ADF): D6T dozer Rebuilding Trust • Kangaroo Island: temporary shelters • Additional support provided by SWM through live broadcasts of the Fire Fight • Additional dozers, graders, site sheds in Australia Concert, raising $9.5m, and the Bushfire Bash charity cricket match, delivery raising $7.8m

FY20 1H Results Presentation Seven Group Holdings 8 19 February 2020 GROUP OVERVIEW HIGHLIGHTS Continued solid growth in revenue and earnings • Trading revenue of $2.3bn up 12% with growth achieved in all Industrial Services business • EBIT of $418m up $27m or 7%, driven by WesTrac performance • Operating cash flow of $148m down on pcp, reflecting working capital increase to support continued sales growth and level of customer activity across parts and components in WesTrac Unique position in all our key markets to drive growth • Industrial Services EBIT growth of 7% reflecting strength of end markets in mining and infrastructure – WesTrac part lines invoiced up 4% to 3.6m for the half – Component revenue increased by 49% driven by installed base consuming more key components YoY – Coates Hire EBIT of $104m significantly recovered from 2H FY19 reflecting management response Energy investments creating value • Beach delivered strong production, earnings and cash flow, enabling reinvestment in development and frontier exploration to support growth • Market value of Beach investment of $1.63bn against equity accounted book value of $808m

FY20 1H Results Presentation Seven Group Holdings 9 19 February 2020 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) 1H FY20 1H FY19 % Change Trading revenue 2,262.8 2,026.5 11.7% Earnings before interest and tax 1 417.6 390.4 7.0% Underlying net profit after tax attributable to shareholders 1 254.7 246.9 3.2% Underlying earnings per share 1 75 cents 75 cents (0.2)% Underlying EBITDA cash conversion 1,2 59.0% 64.2% (5.2)% Statutory results ($m) 1H FY20 1H FY19 % Change Trading revenue 2,262.8 2,026.5 11.7% Earnings before interest and tax 200.8 195.3 2.8% Net profit after tax attributable to shareholders 37.9 51.8 (26.8)% Earnings per share 11 cents 16 cents (29.2)% Interim fully franked ordinary dividend 21 cents 21 cents Notes: 1. Excluding significant items. Refer to slide 12 for listing of significant items 2. Refer to slide 14 for EBITDA cash flow conversion

FY20 1H Results Presentation Seven Group Holdings 10 19 February 2020 GROUP FINANCIALS Our financial results reflect the level of operating performance achieved and our continued focus on driving efficiencies and cash flow