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SGH LIMITED Investor Presentation 2012

Aug 27, 2012

65777_rns_2012-08-27_b1f6977e-03e0-466f-baae-4e7e4eade1fd.pdf

Investor Presentation

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28 August 2012

Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

By Electronic Lodgement

Total pages: 34 (including cover letter)

Dear Sir / Madam

PRESENTATION OF RESULTS

Following is a copy of the Presentation of Results for the financial year ended 30 June 2012.

Yours faithfully For and on behalf of Seven Group Holdings Limited

Warren Coatsworth Company Secretary

Seven Group Holdings Limited | ABN 46 142 003 469 38-42 Pirrama Road | Pyrmont NSW 2009 Australia | Postal Address: PO Box 777 | Pyrmont NSW 2009 Australia Telephone +61 2 8777 7777 | Facsimile +61 2 8777 7192

RESULTS FOR THE YEAR ENDED30 JUNE 2012

Presentation on 28 August 2012

Disclaimer

Basis of preparation of slides

  • Included in this presentation is data prepared by the management of Seven Group Holdings Limited (SGH) and other associated entities and investments. This data is included for information purposes only and has not been subject to the same level of review by the company as the statutory accounts and so is merely provided for indicative purposes. The company and its employees do not warrant the data and disclaim any liability flowing from the use of this data by any party.
  • SGH does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.
  • Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this material are references to estimates, targets and forecasts by SGH. Management estimates, targets and forecasts are based on views held only at the date of this material, and actual events and results may be materially different from them. SGH does not undertake to revise the material to reflect any future events or circumstances.

Non-IFRS Financial Information

  • SGH results are reported under International Financial Reporting Standards (IFRS). The underlying segment performance is presented in Note 2 to the financial statements and excludes significant items, comprising impairment of investments, fair value movement of derivatives, share of significant items relating to results from equity accounted investees and net gain on sale of investments and subsidiaries as detailed in slide 25.
  • This presentation also includes certain non-IFRS measures including Underlying Net Profit after Tax (excluding significant items), total revenue and other income, Segment EBIT margin and Segment EBITDA margin. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.

Today's Agenda

  • Industrial Services
  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell
  • Media & Other Investments Peter Gammell
  • Outlook and Subsequent Events Peter Gammell
  • Closing and Questions Peter Gammell

Overview Peter Gammell

  • Financials Andrew Harrison

Overview

2012 Highlights

Record Revenue, EBIT and NPAT driven by strong Industrial Services performance

Significant acquisitions and divesture successfully completed

Successful long term debt refinancing across Group investments

Reported results impacted by significant items

Final dividend increase

Outstanding performance by WesTrac Australia, AllightSykes and Coates Hire, slightly offset by softer trading conditions in China

  • Ongoing softness in key media markets
  • Bucyrus completed Jun 2012 (US\$400m)
  • vividwireless sale completed Jun 2012 (\$170m cash received, \$60m likely in FY14, \$130m gain on sale recognised)
  • NHR minority interest acquired Jan 2012 (\$192m)
  • SWM \$2.1bn facility refinanced in Nov 2011, tenor ranging from 3 to 5 years
  • Coates Hire \$1.85bn facility refinance currently being finalised, facility term to Jul 2015
  • SWM impairment offset by gain on sale of vividwireless
  • Net cost after tax of \$166.5m
  • Final dividend increase by 2 cps to 20 cps
  • Total FY12 dividend of 38 cps

Key Financial Numbers Total Group – Full-Year Result

Y
E
d
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a
r
n
e
3
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2
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1
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4
4
6
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1
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1
%
1,
2
E
B
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T
D
A		 \$
6
2
9
8
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4
2
0
8
m		 5
0
%
2
f
f
(
f
)
U
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3
4
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2
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2
4
8
3
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8
%
2
S
i
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(
i
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i
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)
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e
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s
n
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g
a
m
p
a
c
u
x		 \$
(
)
1
6
6
5
m		 \$
(
)
1
6
8
4
m		 1
%
-
R
d
f
i
f
f
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i
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p
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n
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r
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a
o
r
e
p
e
r
o
x		 \$
1
7
6
7
m		 \$
7
9
9
m		 1
2
1
%
(
f
)
U
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i
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x
c
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s
g
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c
a
n
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m
s		 9
8
t
c
e
n
s		 6
7
t
c
e
n
s		 4
6
%
S
i
h
(
d
i
h
)
t
t
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a
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r
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a
r
n
n
g
s
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r
s
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a
r
e
s
u
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y		 4
3
t
c
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n
s		 1
2
t
c
e
n
s		 2
5
8
%
f
f
(
O
)
F
i
l
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0
1
2
l
l
k
d
d
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i
d
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b
l
b
2
0
1
2
t
n
a
u
y
r
a
n
e
v
e
n
p
a
y
a
e
c
o
e
r		 2
0
t
c
e
n
s		 1
8
t
c
e
n
s		 1
1
%

Notes:

  1. EBITDA = Profit before depreciation and amortisation, net finance costs and tax, and before significant items

  2. Significant items = includes impairment of investments, net gains/losses on the sale of investments and subsidiaries, fair value movement of derivatives, significant items relating to investments in associates, acquisition related costs and unusual tax expense impacts. (Please refer to slide 25 for listing of significant items).

Segment Analysis Total Group – 2012 Segment Results

\$
T
d
i
R
(
)
r
a
n
g
e
e
n
e
m
v
u		 F
Y
1
2		 F
Y
1
1		 C
h
%
a
n
g
e
W
T
A
l
i
t
e
s
r
a
c
u
s
r
a
a		 3,
5
1
9.
1		 2,
2
4
5.
2		 5
7
%
W
T
C
h
i
e
s
r
a
c
n
a		 6
7
0.
3		 7
2
9.
9		 8
%
-
A
l
l
i
h
S
k
t
g
y
e
s		 2
1
0.
3		 1
3
5.
1		 5
6
%
O
h
I
t
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t
e
r
n
v
e
s
m
e
n
s		 5
6.
7		 5
2.
6		 8
%
T
l
t
o
a		 4,
4
5
6.
4		 3,
1
6
2.
8		 4
1
%

\$
S
(
)
E
B
I
T
t
e
g
m
e
n
m		 F
Y
1
2		 F
Y
1
1		 C
h
%
a
n
g
e
W
T
A
l
i
t
e
s
r
a
c
s
r
a
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8
7.
1		 2
0
5.
9		 8
8
%
C
W
T
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s
r
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n
a		 8.
4		 2
7.
5		 6
9
%
-
S
A
l
l
i
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k
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s
y		 1
1.
2		 8.
7		 2
9
%
C
H
i
t
o
a
e
s
r
e		 5
6.
3		 2
2.
8		 1
4
7
%
M
d
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I
t
t
e
a
n
v
e
s
m
e
n
s		 1
1
6.
1		 1
2
6.
9		 9
%
-
O
h
I
t
t
t
e
r
n
v
e
s
m
e
n
s		 5.
1		 5.
6
-		 /
n
a
T
l
t
o
a		 5
8
4.
2		 3
8
6.
2		 5
1
%

Today's Agenda

Industrial Services

  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell
  • Media & Other Investments Peter Gammell
  • Outlook and Subsequent Events Peter Gammell
  • Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

WesTrac Australia – 2012 v 2011Full-Year Result

82% product sales growth

  • Driven by coal and iron ore mining
  • 26% product support sales growth
  • Large and growing installed equipment base
  • High mining equipment utilisation

88% EBIT growth

  • EBIT margin higher on improved capacity utilisation
  • Operating margins improved
\$
m		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
2
n
e
u		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
1
n
e
u		 C
h
a
n
g
e
%
W
T
A
l
i
t
e
s
r
a
c
s
r
a
a
u
P
d
l
t
r
o
u
c
s
a
e
s
-		 2
2
4
0
0
,		 1
2
3
2
3
,		 8
2
%
P
d
t
t
r
o
u
c
s
u
p
p
o
r
-		 1
2
9
1
7
,		 1
0
1
2
9
,		 2
6
%
1
O
h
/
i
t
e
r
r
e
v
e
n
u
e
n
c
o
m
e
-		 1
7
0		 1
0
8		 5
%
7
i
T
l
d
h
t
t
o
a
r
e
v
e
n
u
e
a
n
o
e
r
n
c
o
m
e		 3
3
6
1
5
,		 2
2
6
0
5
,		 5
7
%
S
E
B
I
T
D
A
t
e
g
m
e
n		 4
2
7
2		 2
4
4
1		 5
%
7
S
E
B
I
T
D
A
i
t
e
g
m
e
n
m
a
r
g
n		 1
2
1
%		 1
0
8
%
S
E
B
I
T
t
e
g
m
e
n		 3
8
7
1		 2
0
5
9		 8
8
%
S
E
B
I
T
i
t
e
g
m
e
n
m
a
r
g
n		 1
0
9
%		 9
1
%
E
l
m
p
o
y
e
e
s		 4
2
0
7
,		 3
1
2
9
,		 3
4
%

Note:

  1. Other Income includes Share of results from equity accounted investees

WesTrac AustraliaBucyrus Acquisition

  • Acquisition completed on 1 June 2012
  • Integrated into WesTrac management structure
  • Trading as WesTrac Expanded Mining Products (EMP)
  • Limited cutover issues from CAT ownership
  • Early financial results broadly in line with expectations

WesTrac AustraliaExpanded Operations

Tomago operations have now commenced Parts Distribution Centre and Customer

  • Construction by lessor completed Jul 2012
  • 23 hectare site including 12,000m2 semiautomated parts distribution centre
  • WesTrac Institute, Sales and Administration Centre, Highway Truck Centre, Component Rebuild Centre
  • More than 400 staff on site initially

Service Centre nearing completion

  • Under construction by lessor with operations due to commence Sep 2012
  • 40,000m2 footprint, 16,000m2 warehouse, 4x larger than current warehouse space
  • 65,000 CAT and 10,000 non-CAT part numbers carried, fully automated 'Goods to Person' technology

WesTrac China – (USD) 2012 v 2011

Full-Year Result

  • Product sales lower vs. prior year due to softening in construction market
  • Excavator industry sales fell by 39% in WesTrac China's territory in FY121
  • Increased revenue in mining equipment and engines
  • 17% product support sales growth
  • Driven by increased population of large excavators and overhauls of large gas engine fleet
  • Margins lower due to softer small excavator pricing and additional stock provisions
  • Focus on reducing hydraulic excavator inventory and managing costs
  • Industry over-stock issues expected to resolve through 2012/13 year
\$
S
U
D
m		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
2
n
e
u		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
1
n
e
u		 C
h
a
n
g
e
%
C
W
T
h
i
e
s
r
a
c
n
a
P
d
l
t
r
o
c
s
a
e
s
u
-		 5
5
5
1		 6
3
5
6		 1
3
%
-
P
d
t
t
r
o
u
c
s
u
p
p
o
r
-		 1
2
0
1		 1
0
2
9		 1
7
%
O
h
i
t
e
r
n
c
o
m
e
-		 3
8		 3
8		 0
%
T
l
&
h
t
t
o
a
r
e
v
e
n
u
e
o
e
r
i
(
U
S
D
)
n
c
o
m
e		 6
9
0
7		 4
2
3
7		 9
%
-
S
S
E
B
I
T
D
A
(
U
D
)
t
e
g
m
e
n		 1
7
4		 3
4
8		 5
0
%
-
S
E
B
I
T
D
A
i
t
e
g
m
e
n
m
a
r
g
n		 2
6
%		 4
%
7
S
(
S
)
E
B
I
T
U
D
t
e
g
m
e
n
S
E
B
I
T
i
t
e
g
m
e
n
m
a
r
g
n		 8
7
1
3
%		 2
9
0
3
9
%		 7
0
%
-
E
l
m
p
o
e
e
s
y		 1
9
2
7
,		 1
9
7
6
,		 2
%
-

Notes:

  1. Excavator industry sales sourced from Chinese Equipment Manufacturing Association (CEMA)

  2. Other income includes share of results from equity accounted investees

  3. Presented in USD as functional currency of WesTrac China

AllightSykes Full-Year Result

  • SGH moved to 100% ownership of AllightSykes (via National Hire) on 25 January 2012
  • Product sales and support revenue \$210.3m – up 56% against prior year
  • 2012 included full year trading for Sykes Pumps (7.5 months in prior year)
  • All product ranges during the year benefitted from global resources sector growth
  • Pump production capacity expanded during the year with a new facility in Dubai
\$
A
l
l
i
h
S
k
t
g
y
e
s
m		 Y
E
d
d
e
a
r
n
e
J
3
0
2
0
1
2
u
n
e		 Y
E
d
d
e
a
r
n
e
J
3
0
2
0
1
1
u
n
e		 C
h
a
n
g
e
%
R
e
e
n
e
v
u		 2
1
0
3		 1
3
5
1		 5
6
%
O
h
i
t
e
r
n
c
o
m
e		 2
8		 2
2		 2
7
%
O
i
t
t
p
e
r
a
n
g
c
o
s
s		 (
)
1
9
8
8		 (
)
1
2
6
6		 %
5
7
S
E
B
I
T
D
A
t
e
g
m
e
n		 1
4
3		 1
0
7		 3
4
%
D
i
i
&
i
i
t
t
t
e
p
r
e
c
a
o
n
a
m
o
r
s
a
o
n		 (
)
3
0		 (
)
2
0		 5
0
%
S
E
B
I
T
t
e
g
m
e
n		 1
1
3		 8
7		 3
0
%

Notes:

    1. Interest in AllightSykes, held via National Hire
    1. Above numbers exclude interest in Coates Hire

Coates Hire Group Full-Year Result

  • SGH share of profit from Coates Hire (equity accounted investee) is 147% above prior year
  • Coates Hire revenue \$1,293m – up 22% against prior year
  • Significant capital expenditure and improved asset utilisation during the year
  • Focus on operating efficiency further improved EBIT margin

Notes:

    1. SGH owns 45% of Coates Hire. Coates Hire is an equity accounted investment and therefore not consolidated into SGH's results.
    1. SGH interest in Coates Hire based on diluted interest after considering vesting conditions for options issued under the Coates Hire Management Equity Plan
    1. SGH share of FY12 Coates Hire NPAT includes \$8.2m deferred tax benefit, treated by SGH as an unusual item
\$
C
H
i
t
o
a
e
s
r
e
m		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
2
u
n
e		 Y
E
d
d
e
a
r
n
e
3
0
J
2
0
1
1
u
n
e		 C
h
a
n
g
e
%
R
&
h
i
t
e
e
n
e
o
e
r
n
c
o
m
e
v
u		 1
2
9
3
0
,		 1
0
5
7
4
,		 2
2
%
E
B
I
T		 3
1
9
7		 2
2
6
6		 4
0
%
S
f
C
G
H
h
N
P
A
T
t
s
a
r
e
o
o
a
e
s		 6
3
5		 2
2
8		 1
4
7
%
(
)
l
i
d
n
o
r
m
a
s
e

Industrial Services

The Next 12 Months

  • Continuing activity in mining markets expected to drive further revenue growth in Australia for WesTrac, AllightSykes and Coates Hire, subject to the continuation of key mining projects
  • Bucyrus integration underway with full year contribution from EMP in 2012/13
  • Major facility expansions in WA and NSW to add efficiency in WesTrac
  • China outlook remains cautious particularly in the construction sector
  • Coates Hire expected to benefit from significant capital expenditure on fleet in 2012. Capex levels will be lower in 2012/13

Today's Agenda

  • Industrial Services
  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell

Media & Other Investments Peter Gammell

  • Outlook and Subsequent Events Peter Gammell
  • Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Media Investments P&L

Excluding Significant Items

\$
m		 Y
E
d
d
e
a
r
n
e
J
3
0
2
0
1
2
u
n
e		 Y
E
d
d
e
a
r
n
e
J
3
0
2
0
1
1
u
n
e		 C
h
a
n
g
e
%
S
h
f
i
t
a
r
e
o
a
s
s
o
c
a
e
s
1
S
W
M
d
i
t
e
v
e
n
e
s
e
a
-		 7
1
1		 9
4
1		 2
4
%
-
2
C
l
i
d
d
M
d
i
H
l
d
i
t
o
n
s
o
a
e
e
a
o
n
g
s
-		 2
1
1		 2
4
3		 1
3
%
-
O
h
i
t
e
r
n
c
o
m
e
3
O
h
i
i
t
t
t
e
r
n
v
e
s
m
e
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-		 2
3
9		 8
4		 5
1
8
%
S
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m
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n		 1
1
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6
8		 8
%
-
B
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(
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%
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0
%
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m
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n
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n		 1
1
6
1		 1
2
6
8		 8
%
-

In April 2011 SGH's media investments in Seven Media Group and West Australian Newspaper Holdings were combined to form Seven West Media.

This has resulted in SGH now having a lower ownership % in a materially larger group and recognising a post tax return as income.

Notes:

  1. For the year ended 30 June 2011, Seven West Media results above include the interest in Seven West Media post WAN acquisition of SMG and the pre transaction interests of Seven Media Group and West Australian Newspapers results.

  2. Consolidated Media result impacted by transaction costs related to Foxtel's acquisition of Austar.

  3. Other Income includes accretion on the Seven West Media RCPS and dividend income from Prime Media.

Seven West Media

Overview

Note: 33% stake in Seven West Media excludes \$250m RCPS

Seven West Media2012 Highlights

  • EBIT above April 2012 market guidance
  • Margin reflects strong performance of underlying businesses in a difficult advertising market
  • \$2.1bn of debt successfully refinanced in November 2011 with 3 to 5 year tranches
  • \$440m capital raising completed in August 2012
  • Strong support from key institutional investors with \$320m invested, including \$146m SGH contribution
  • Ongoing management focus on
  • Pursuing cost efficiencies across all businesses in order to preserve strong margins without compromising quality
  • Maintaining and growing market position by leveraging the Group's scale, content and multi-platform offerings
  • Creating revenue opportunities through new and existing platforms by leveraging the Group's digital capabilities

EBIT Breakdown By Division

Seven West MediaFinancials

  • Television EBIT of \$291m down 15% due to subdued advertising market, achieved 40% revenue share in H2
  • Number 1 in 2012 YTD television season in news, public affairs, primetime, breakfast TV and morning TV (number 1 in revenue share since Dec 2006)
  • Newspaper earnings reflect challenging economic conditions but management initiatives limited cost growth to 1.8%
  • EBIT margin of 30% is a leading number on a global basis for print media
  • Magazines earnings impacted by difficult conditions but with steady circulation and leadership in key magazine categories
  • Yahoo!7 unique users up 27% to 8.8 million with significant growth in mobile traffic, online streaming content and apps
  • 20% EBITDA growth to \$45m, EBIT of \$37m and strong 43% EBIT margin

T
l
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R
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e
v
u
\$
(
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1
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1
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e %
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2		 2.
%
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\$
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9
%

Note: Total revenue includes other income and share of results from equity accounted investees

Consolidated Media Holdings

Overview

  • Foxtel completed the \$2bn acquisition of Austar in May 2012 to create a national subscription TV service, CMH contributed \$222m in funding
  • Foxtel FY12 EBITDA up 8.5% on prior year
  • ARPU up 3.1% YoY to \$99 per user as at 30 June 2012, quality subscriber base with improved take up of add-ons
  • Subscriber base up 1.8% YoY to 1.68m (2.3m total subscribers including Austar)
  • Fox Sports FY12 EBITDA down 1.7% on prior year
  • Cost growth reflects investment in new technology and increased cost of acquiring and broadcasting sports content
  • News Corporation has announced an intention to bid for CMH at \$3.50 per share

\$
C
(
)
M
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1
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)
1
3.
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%

CMH statutory NPAT includes \$4.8m in facility costs related to the Austar acquisition, \$5.1m share of Austar transaction costs, and \$2.3m in historical PBL demerger contractual costs

FY12 Results Presentation28 August 2012 Slide 21

1

Other Investments P&L

\$
m		 Y
E
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6
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O
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S
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-
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D
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)
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)
2
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S
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I
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n		 5
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)
5
7		 1
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9
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-

Note: FY12 includes vividwireless results up to 19 June 2012 only

FY12 revenue growth based on stronger trading in both vividwireless and Engin

On 19 June 2012, SGH completed the sale of vividwireless to Optus for a sale price of \$230m

SGH recognised a gain on sale in relation to this transaction of \$130m, which is included within significant items, refer slide 25

Today's Agenda

  • Industrial Services
  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell

  • Media & Other Investments Peter Gammell

  • Outlook and Subsequent Events Peter Gammell

  • Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Consolidated Profit and Loss

Underlying Performance

\$
m		 Y
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%
R
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4
6
4
5
,		 3
1
6
2
8
,		 4
1
%
O
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c
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6
6		 6
4
8		 3
4
%
S
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5
4
8		 1
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6		 8
%
i
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2
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7
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8
%
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9
6
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U
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1
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1
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9
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%
  • Please refer to the Appendix 4E for the detailed statutory presentation
  • Significant items are further summarised on slide 25
  • Statutory tax expense impacted by franking credits and one off deferred tax benefits (which have been treated as significant items)

Summary of Significant Items

\$
m		 Y
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)
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2		 -
U
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)
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4
3
2		 2
4
8
3

Notes:

  1. Transaction costs and stamp duties relate to the Bucyrus and vividwireless transactions.

Consolidated Investment Listing Total Group

\$
m		 A
2
4
2
0
1
2
u
g
M
k
V
l
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4
a
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u		 J
3
0
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1
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3
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+		 5
8
0
9		 6
3
8
4		 9
6
2
3
1,
4
L
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4
6
6		 4
3
2
9		 3
5
4
5
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4
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A
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B
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3
7
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9
7
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9
1
3		 4
3
9
9		 3
5
8
4
3
C
H
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t
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a
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s
r
e		 U
l
i
d
t
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e		 3
8
6
4		 3
3
1
3
O
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r		 U
l
i
d
t
n
s
e		 6
8
2		 6
2
2
T
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a
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s
m
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n
s
v		 2
2
0
3
7
,		 2
3
6
6
4
,

Notes:

    1. Available for sale security fair value movements are carried in reserves until the asset is disposed of or impaired.
    1. Available for sale security fair value movements are carried in reserves (share price movement in fair value reserves, foreign currency movement in foreign currency translation reserve).
    1. Associates carried at historical cost, plus share of associate income, less dividends received, less impairment.
    1. Estimated market values of listed investments using number of shares held at 30 June 2012 and share prices at 5pm on 24 August 2012.
    1. Movement in SWM between 2012 and 2011 includes additional investment in SWM DRP, on market acquisitions and impact of impairment.
    1. 24 August 2012 SWM share price, impacted by rights issue.

Consolidated Balance Sheet

Total Group

\$
m		 A
t
s
a
3
0
J
2
0
1
2
n
e
u		 A
t
s
a
3
0
J
2
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1
1
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a
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%
T
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b
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e
a
n
o
e
r
r
e
c
e
a
e
s
v		 9
2
0
5		 4
3
5
5		 6
6
%
I
i
t
n
v
e
n
o
r
e
s		 1
3
8
4
6
,		 9
8
9
6		 4
0
%
I
i
b
l
t
t
n
a
n
g
e
a
s
s
e
s		 7
4
9
1		 5
2
6
2		 4
2
%
I
t
t
n
v
e
s
m
e
n
s		 2
2
0
3
7
,		 2
3
6
6
4
,		 %
7
-
F
i
d
t
e
a
s
s
e
s
x		 2
9
3
3		 2
6
4
9		 1
1
%
O
h
t
t
e
r
a
s
s
e
s		 3
2
5		 2
4
5		 4
4
%
T
d
d
h
b
l
t
r
a
e
a
n
o
e
r
p
a
y
a
e
s		 (
)
6
1
5
7		 (
)
0
4
5
5		 2
2
%
P
i
i
r
o
s
o
n
s
v		 (
)
1
0
7
2		 (
)
9
6
3		 1
1
%
/
(
)
N
l
i
b
i
l
i
i
t
t
t
t
e
a
x
a
s
s
e
s
a
e
s		 (
)
3
6
2
3		 (
)
3
0
5
5		 2
%
D
f
d
e
e
r
r
e
r
e
e
n
e
v
u		 (
)
1
2
5
7		 (
)
1
3
1
6		 4
%
-
D
i
i
f
i
i
l
i
t
t
t
e
r
a
e
n
a
n
c
a
n
s
r
m
e
n
s
v
v
u		 (
)
0
7
7		 (
)
1
1
9
5		 3
6
%
-
(
)
N
d
b
t
t
e
e		 (
)
1
1
8
7
7
,		 (
)
8
3
1
7		 1
0
%
5
T
l
S
h
h
l
d
E
i
t
t
o
a
a
r
e
o
e
r
s
q
u
y		 2
5
9
8
7
,		 2
6
8
1
9
,		 4
%
-

Notes:

1.The trade and other receivables balance includes the deferred consideration on the vividwireless sale

  1. Intangible movement driven by acquisition of Bucyrus Australia and disposal of vividwireless

  2. Refer to slide 28 for summary of key items impacting the net debt movement

Consolidated Net Debt Movement Total Group

N
d
b
(
l.
d
i
i
)
J
3
0
2
0
1
1
t
t
t
e
e
e
c
e
r
a
e
s
n
e
x
v
v
u		 (
)
8
3
7
1
S
i
i
f
i
i
i
t
t
t
t
g
n
c
a
n
n
e
s
m
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s
v
:
(
)
B
E
M
P
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l
d
i
i
t
t
t
u
c
y
r
u
s
n
c
u
n
g
r
a
n
s
a
c
o
n
c
o
s
s
-		 (
)
4
2
6
1
V
i
i
d
i
l
d
v
w
r
e
e
s
s
p
r
o
c
e
e
s
-		 1
0
0
7
N
i
l
H
i
t
a
o
n
a
r
e
-		 (
)
1
9
2
0
S
W
M
d
i
t
e
e
n
e
s
e
a
v
-		 (
)
6
2
2
O
h
i
t
t
t
e
r
n
e
s
m
e
n
s
v
-		 (
)
3
2
4		 (
)
5
4
2
7
(
)
1
3
9
8
7
,
O
f
f
i
h
l
i
&
i
t
t
t
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p
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r
a
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c
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w
p
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e
-n
e
n
a
n
c
e
c
o
s
s
n
c
o
m
e
a
x		 (
)
1
3
1
C
i
l
d
i
(
)
t
t
t
a
p
a
e
p
e
n
r
e
n
e
x
u		 (
)
7
5
4
O
h
(
)
t
t
e
r
n
e		 2
9
2		 (
)
5
9
3
(
)
1
4
3
9
1
,
N
f
i
t
t
e
n
a
n
c
e
c
o
s
s		 (
)
1
0
3
5
D
i
i
d
d
i
d
e
n
s
p
a
v		 (
)
1
4
3
8		 (
)
2
4
9
1
(
)
1
6
8
8
2
,
F
X
i
f
i
d
i
d
d
b
t
t
t
m
o
e
m
e
n
n
o
r
e
g
n
c
r
r
e
n
c
e
n
o
m
n
a
e
e
v
u
y		 (
)
3
0
5
(
i
i
)
N
d
b
l.
d
3
0
J
2
0
1
2
t
t
t
e
e
e
c
e
r
a
e
s
n
e
x
v
v
u		 (
)
1
7
1
8
7
,
  • Primary driver of net debt increase in FY12 was major investment activity
  • Significant operating cash flow improvement in H2
    • H1 \$(165.2)m
    • H2 \$152.1m
  • Working capital grew by \$514.2m (excl. Bucyrus) during the period to support higher levels of activity and future sales
  • Bucyrus investment of \$426.1m includes transaction costs and stamp duty that are classified as operating cash flows for statutory purposes

Consolidated Debt Maturity Profile Total Group as at 30 June 2012 (refer disclaimer)

  • At 30 June 2012 there was \$819.3m of available undrawn group borrowing facilities.
  • Current "<1 year" debt includes a number of offshore facilities that are regularly rolled over for further terms but which are categorised as current due to their short dated nature.

Today's Agenda

  • Industrial Services
  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell
  • Media & Other Investments Peter Gammell

Outlook and Subsequent Events Peter Gammell

Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

Outlook & Subsequent Events

Subsequent events

On 27 July SGH participated in the SWM rights issue to its full entitlement at a cost of \$146m. These shares were acquired at \$1.32 per share.

Outlook – refer disclaimer

  • The current level of activity in the mining and resources sector position WesTrac Australia, AllightSykes and Coates Hire for a strong first half.
  • WesTrac Australia will also benefit in the coming year from a full 12 months trading from the recent Bucyrus acquisition.
  • We remain very cautious regarding trading conditions in China, and the outlook for media markets over the next six months is soft.
  • Looking forward, the 2013 statutory results will continue to be impacted by any mark to market movement on our investment in Seven West Media.
  • Given the uncertainty in the markets at this time, we are not providing guidance for 2013 but we would expect to provide a trading update at the AGM

Today's Agenda

  • Industrial Services
  • WesTrac Group Jim Walker
  • AllightSykes Peter Gammell
  • Coates Hire Group Peter Gammell
  • Media & Other Investments Peter Gammell
  • Outlook and Subsequent Events Peter Gammell
  • Closing and Questions Peter Gammell

Overview Peter Gammell

Financials Andrew Harrison

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