SRG GLOBAL LIMITED — Investor Presentation 2021

Sep 8, 2021

EUROZ HARTLEYS POST REPORTING CONFERENCE

9 September 2021

ABOUT US

WHO WE ARE

We're a global engineering-led specialist asset services, mining services and construction group

OUR OPERATING MODEL

End-to-end solutions across the entire asset lifecycle

OUR VISION

The most sought-after specialist asset services, mining services and construction business

SRG GLOBAL SNAPSHOT

SUMMARY

Shares on Issue	445.8m
Share Price(1)	$0.555
Market Capitalisation(1)	$247m
Net Assets	$227m
Note: (1) Share price and market capitalisation as at 23 August 2021

SUBSTANTIAL HOLDERS

Perennial Value Investment	15.0%
Mitsubishi UFJ Financial Group, Inc	7.2%
Board and Management	12.0%

Source: Latest ASX announcements & Company share registry

FY21 IN REVIEW

EXECUTIVE SUMMARY

• Revenue Up 4% to $570m (from FY20)
• EBITDA Up 61% to $47.1m (from FY20)
• EBIT(A) Up 151% to $25.1m (from FY20)
• Strong operating cashflow (FY21 Net Cash of $12.2M from FY20 Net Debt of $8.4m)
• Well-funded for Growth available funds of $88.2m + undrawn $27.7m equipment finance facility
• Final Fully Franked Dividend Doubled to 1 cent per share (total FY21 dividend of 2 cps)
• Record $1b Work in Hand, Up 41% (from 30 June 2020)
• Strong opportunity pipeline of $6b in diverse sectors and geographies
• Two Thirds Annuity Earnings Profile in FY21 and beyond
• Long term Strategy on track and well positioned for long term sustainable growth
• FY22 EBITDA expected to be ~15% higher than FY21 EBITDA result

"Continuing to transition the business mix towards annuity earnings"

GROWTH

Step change growth in recurring Asset Services

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Innovation and selective growth in Mining Services

Targeted growth in specialist Civil Infrastructure Construction

Specialist services and products in Building Construction with key repeat clients

Two thirds annuity / recurring and one third project-based earnings

LEADERSHIP

Zero Harm / ESG industry leader and recognised employer of choice

Key partner of choice in our specialised core markets with core clients

Consistent, above market shareholder returns (EPS and TSR)

Selective strategic acquisitions to complement capability / footprint

Two thirds annuity / recurring and one third project-based earnings

OUR PEOPLE ARE OUR FOUNDATION

HIGHLY SKILLED WORKFORCE

ZERO HARM IMPROVEMENT

TRIFR Jun 20 TRIFR Jun 21

COMMUNITY ENGAGEMENT

BUGARRBA ABORIGINAL JOINT VENTURE

Scaffolding Services

GENDER DIVERSITY

MODERN SLAVERY GOVERNANCE

Corporate overheads of $13.9m equates to 2.4% of revenue, with scope for further leverage as business grows.

SEGMENT RESULTS ($m)

	TOTAL	ASSETSERVICES	MININGSERVICES	CONSTRUCTION	CORPORATE
Revenue	570.0	187.0	91.0	292.0	-
EBITDA	47.1	22.0	20.0	19.0	(13.9)
EBIT(A)	25.1	15.0	13.4	12.6	(15.9)

Asset Services experienced strong growth with the excellent start up and mobilisation of 8 new long-term contracts secured. Solid financial and margin performance with EBITDA margin of 11.8% in line with historical levels.

Mining Services disciplined growth and improved financial performance in FY21 with EBITDA margin of 22.0%. Excellent operational delivery across all sites and high levels of asset utilisation. A very successful start up of the Northern Star and Red5 drill and blast contracts.

Construction delivered an improved financial performance in FY21 with increased EBITDA margins of 6.5% which are expected to further improve

Civil & Engineering strong performance across all Australian projects and scaled back operations Internationally.

Specialist Building solid performance across Facades and Structures West and successfully completed the exit of Structures Victoria in FY21.

GENERATING POSITIVE OPERATING CASH

Cash and cash equivalents	FY2146.2
Trade, other receivables & contract assets	144.1
Inventories	14.9
Property, plant and equipment	81.5
Right of use assets	20.3
Intangibles	104.6
Tax assets	28.0
Other	3.1
Total Assets	442.9
Trade, other payables & contract liabilities	127.1
Borrowings	34.0
Right of use liabilities	21.3
Current tax liabilities	0.5
Provisions and other	33.2
Total Liabilities	216.1
Net Assets	226.8

BALANCE SHEET ($m) Available liquidity of $88.2m, comprised of cash on hand of $46.2m and available undrawn working capital facilities of $42.0m

Net cash of $12.2m, from a net debt position of $8.4m at 30 June 2020 representing a $20.6m improvement in FY21 through prudent management of working capital

Significant undrawn facilities available for growth

	DRAWN	UNDRAWN	TOTAL
Borrowing Facilities
Equipment Finance	22.3	27.7	50.0
Term Loan	8.25	-	8.25
Working Capital	-	42.0	42.0
Other	3.4	-	3.4
Total	34.0	69.7	103.7
Security Facilities
Bank Guarantees	10.7	9.3	20.0
Performance Bonds	71.1	54.5	125.6
Total	81.8	63.8	145.6

STRONG PLATFORM FOR GROWTH

OUR OPERATING SEGMENTS

ASSET SERVICES OVERVIEW

ASSET SERVICES YEAR IN REVIEW

• Strong operational / financial performance
• A number of contract wins in FY21
  • ‒ 5-yr multi-disciplinary contract with FMG
  • ‒ 5-yr access contract with Liberty Onesteel
  • ‒ 8-yr maintenance contract with NZTA for Auckland Harbour Bridge
  • ‒ 5-yr maintenance contract with Methanex
  • ‒ 2-yr maintenance contract with Meridian Energy
  • ‒ 5-yr access / maintenance contract with Yara
  • ‒ 8-yr refractory services contract with South32
  • ‒ 2-yr extension to existing 6-yr engineered access contract with South32
• Strong relationships and delivery driving expanded scope and tenure with key repeat clients
• Continued focus on innovation, technology and data analytics as market differentiators
• Established JV Company (Bugarrba) with members of the Njamal people to pursue sustainable employment opportunities for Aboriginal people

FMG Multi Disciplinary Services

MINING SERVICES OVERVIEW

MINING SERVICES YEAR IN REVIEW

• A very strong performance
• Excellent asset utilisation of >90%
• Key commodity exposure
  • ‒ Gold
  • ‒ Iron Ore
• Continued capital investment in fleet for growth and sustaining capital
• Continued focus on innovation including:
  • ‒ high precision GPS
  • ‒ bespoke real-time data analytics
  • ‒ semi-autonomous / remote control drilling
• Orbix Bespoke Data Intelligence Software; developed by SRG Global and integrated with internal / clients' systems
• Further growth anticipated with key existing clients and sites
• Strong pipeline of new opportunities

Northern Star Production Drill and Blast

CONSTRUCTION OVERVIEW

CONSTRUCTION YEAR IN REVIEW

Civil and Engineering

• Solid performance in Australia
• Robust pipeline of Government opportunities
  • ‒ Dams, Bridges, Tanks
• Successfully scaled back operations Internationally
• Targeting specialist projects globally from Australia
  • ‒ Dams, Bridges, Tanks
• High demand for SRG Global proprietary and engineered products with positive growth opportunities

Specialist Building

• Solely focused on key repeat clients
• Specialist Facades delivered strongly
  • ‒ significant level of work in hand
  • ‒ good pipeline of major opportunities
• Structures West performing well
  • ‒ solid level of work in hand
  • ‒ good pipeline of growth opportunities
• Successfully exited Structures Victoria business

Bolivia Hill Specialist Bridge Construction

Elizabeth Quay Specialist Facades / Structures

OUR STRATEGIC DIRECTION

Building the most sought-after specialist asset services, mining services and construction business

GROWTH

Step change growth in recurring Asset Services

Innovation and selective growth in Mining Services

Targeted growth in specialist Civil Infrastructure Construction

Specialist services and products in Building Construction with key repeat clients

Two thirds annuity / recurring and one third project-based earnings

LEADERSHIP

Zero Harm / ESG industry leader and recognised employer of choice

Key partner of choice in our specialised core markets with core clients

Consistent, above market shareholder returns (EPS and TSR)

Selective strategic acquisitions to complement capability / footprint

Two thirds annuity / recurring and one third project-based earnings

Operating Segment Outlook

• Asset Services delivering step change growth in diverse sectors with blue-chip clients
• Mining Services operating in high demand, high quality growth commodities
• Construction positively linked to Government Infrastructure stimulus programs
• International focus on Specialist Civil Engineering opportunities Dams / Bridges / Tanks

Business Outlook

• FY22 EBITDA expected to be ~15% higher than FY21 EBITDA result
• Record Work in Hand of $1b with an Opportunity Pipeline of $6b
• Strong liquidity / balance sheet position to support growth working capital requirements
• Earnings profile of two thirds annuity earnings in FY22 and beyond
• Continued execution of a clear strategy and well positioned for long term sustainable growth

INVESTMENT PROPOSITION

End-to-end asset lifecycle capability

Highly scalable business model

Diverse market sectors / geographies

Annuity earnings profile

Capital light investment profile

Dividend paying stock

Solving challenges wherever they are

srgglobal.com.au