LEADING THE WAY FORWARD Results for the year ended 30 June 2019 21 - PowerPoint PPT Presentation

LEADING THE WAY FORWARD Results for the year ended 30 June 2019 21 August 2019

Full Year Results Presentation Seven Group Holdings 2 21 August 2019 GROUP OVERVIEW Our objective is to grow shareholder returns by ensuring our businesses continue to perform and deliver market-leading positions

Full Year Results Presentation Seven Group Holdings 3 21 August 2019 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 WesTrac (100% owned) is Coates Hire (100% owned) Beach Energy (28.6% Seven West Media (41% a strong pipeline of committed government one of the largest CAT owned) is a leading is the largest nationwide owned) is a leading mid-cap projects dealers globally (by sales) industrial and general E&P business and a key diversified media company and supports customers in in Australia with 2,800 equipment hire company supplier to a growing East East coast gas Australia’s rich iron ore and Coast market employees thermal coal regions • Beach and SGH Energy are well positioned to SGH Energy (100% owned) Audience of 18.9 million Australians engaged holds operated and non- Over 160 branches and meet growing East Coast gas demand and 23 branches and 3,300 operated oil and gas monthly 2,300 employees employees domestic LNG export opportunity interests including 15% of the Crux LNG Project Diversified investments Key customers: BMD, Key customers: Alinta, AGL, Other media investments Key customers: BHP, include interests in China CIMIC, Downer, FMG, Adelaide Brighton, Origin • Strong balance sheet to pursues growth CIMIC, FMG, Macmahon, Lend Lease, John Holland Energy P/E funds Min Res, Rio Tinto, Roy Hill opportunities within or adjacent to our existing core businesses Trading revenue Trading revenue Segment Underlying EBIT Segment Underlying EBIT $ 3.0 b $1.0 b $157 m $66 m Asset value Asset value Segment assets Segment assets $ 1.9 b $ 2.2 b $ 1.2 b $ 0.5 b

Full Year Results Presentation Seven Group Holdings 4 21 August 2019 GROUP OVERVIEW PEOPLE, SAFETY AND CULTURE Our people are our greatest asset and keeping them safe is LTIFR TRIFR our top priority • Expanded our safety commitment through leadership programs FY19 FY18 FY19 FY18 – WesTrac’s “Built By Us” program is designed to drive a WesTrac WA 1.2 2.5 8.3 12.8 transformational shift in safety culture and behaviour along with staff engagement WesTrac NSW 1.0 0.4 10.2 4.8 – Objective is to create a safer, enjoyable and more productive workplace Coates Hire 1.6 2.3 12.8 21.5 • Improvements achieved in safety performance within most AllightSykes 0.0 7.7 0.0 4.9 businesses SGH Energy 0.0 0.0 0.0 0.0 Range of people and culture initiatives underway Group Total 1.3 1.4 10.4 14.0 • Apprenticeship program launched by Coates Hire while WesTrac’s program has expanded in recent years with targets set for gender – Lost time injury frequency rate (LTIFR) = number of lost time injuries per million hours worked; diversity and indigenous intake – Total recordable injury frequency rate (TRIFR) = number of recordable injuries per million hours worked; • Executed “train to task” across six key operational teams in WesTrac, aimed at redirecting our trained technicians to higher skilled tasks • “Competent Person Program” being rolled out in Coates Hire, delivering career development for staff and savings to the business • Good leadership supported by people and culture initiatives has led to over 10% improvement in engagement results across all our businesses

Full Year Results Presentation Seven Group Holdings 5 21 August 2019 GROUP OVERVIEW HIGHLIGHTS Strong financial results with EBIT up 40% to $695m • Trading revenue of $4.1bn up 27% with growth across all businesses • EBIT up $198m on pcp delivered through WesTrac ($83m), Coates Hire ($54m) and Beach Energy ($85m) • Continued operating discipline reflected in underlying margin improvement of 1.5% at EBIT level and 1.7% at NPAT level • Improved operating cash flow despite investment in future growth through working capital Unique position in all our key markets to drive growth • Industrial services EBIT growth of 40% reflecting strength of end markets in mining and infrastructure – WesTrac part lines invoiced were up 11% to 6.4m driven by the record level of mining production and export volumes – Coates Hire asset utilisation remains 1.2% higher than average over previous five years despite slower construction market and project delays Energy investments creating value • Beach delivered record production and earnings result, enabling reinvestment from strong cash flow and $172m net cash • Crux FEED more 50% complete, FID targeted for Q2 2020, and interest in project growing from a range of LNG buyers and investors

Full Year Results Presentation Seven Group Holdings 6 21 August 2019 GROUP OVERVIEW KEY FINANCIALS Underlying Results ($m) – continuing operations FY19 FY18 % Change Trading revenue 4,084.0 3,207.9 27% Earnings before interest and tax 1 695.1 496.9 40% Underlying net profit after tax 1 478.9 321.9 49% Underlying earnings per share 1 143 cents 97 cents 47% Underlying EBITDA cash conversion 1,2 59% 54% 5% Statutory results ($m) – continuing operations FY19 FY18 % Change Trading revenue 4,084.0 3,207.9 27% Earnings before interest and tax 436.1 570.4 (24)% Net profit after tax attributable to shareholders 219.2 405.2 (46)% Earnings per share 65 cents 124 cents (48)% Final fully franked ordinary dividend 21 cents 21 cents Notes: 1. Excluding significant items. Refer to slide 9 for listing of significant items 2. Refer to slide 11 for EBITDA cash flow conversion

Full Year Results Presentation Seven Group Holdings 7 21 August 2019 GROUP FINANCIALS Our financial results reflect the level of operating performance achieved and our continued focus on driving efficiencies and cash flow

Full Year Results Presentation Seven Group Holdings 8 21 August 2019 FINANCIALS PROFIT AND LOSS $m FY19 FY18 Change % Revenue 4,084.0 3,207.9 27% Other income 53.5 65.1 (18)% Share of results from equity accounted investees 210.2 144.1 46% Trading revenue and other income 4,347.7 3,417.1 27% Expenses (excluding. depreciation, amortisation and interest) (3,452.5) (2,774.4) 24% Underlying EBITDA 895.2 642.7 39% Depreciation and amortisation (200.1) (145.8) 37% Underlying EBIT 695.1 496.9 40% Net finance costs (102.8) (101.7) 1% Underlying net profit before tax 592.3 395.2 50% Underlying tax expense (113.4) (73.3) 55% Underlying NPAT from continuing operations 478.9 321.9 49% NPAT from discontinued operations - 10.4 - Significant items (including tax impact) (259.7) 83.3 - Underlying NPAT from continuing operations 219.2 415.6 (47)%

Full Year Results Presentation Seven Group Holdings 9 21 August 2019 FINANCIALS SIGNIFICANT ITEMS $m FY19 FY18 Share of equity accounted investees' significant items (230.4) (17.4) (Impairment) / impairment reversal – SWM equity (57.5) 28.6 Other items 28.9 62.3 Significant Items – EBIT (259.0) 73.5 Net finance income (1.0) - Tax benefit relating to significant items 0.3 9.8 Significant Items – NPAT (259.7) 83.3 Statutory NPAT 219.2 405.2 NPAT excluding significant items 478.9 321.9

Full Year Results Presentation Seven Group Holdings 10 21 August 2019 FINANCIALS EARNINGS SUMMARY Total Coates Allight Invest- $m WesTrac Energy Media Other Group Hire Sykes ments Trading revenue 4,084.0 3,041.3 956.5 77.6 6.5 - 2.1 - Statutory EBIT 436.1 285.6 183.6 1.3 159.2 (224.6) 21.4 9.6 Add unfavourable significant items Impairment – SWM equity 57.5 - - - - 57.5 - - Share of equity accounted investees significant items 233.0 - - - - 233.0 - - Subtract favourable significant items Gain on conversion of convertible notes (28.9) - - - - - - (28.9) Share of equity accounted investees significant items (2.6) - - - (2.6) - - - Total significant items – EBIT 259.0 - - (2.6) 290.5 - (28.9) Underlying EBIT – FY19 695.1 285.6 183.6 1.3 156.6 65.9 21.4 (19.3) Underlying EBIT – FY18 496.9 202.7 129.4 3.0 71.8 72.6 33.1 (15.7) Year-on-year change 40% 41% 42% (57)% 118% (9)% (35)% 23%