GR Engineering Services : FY21 Annual General Meeting Presentation

Providing global mineral	ASX:GNG
processing solutions

onlyGR Engineering Services Limited

useAnnual General Meeting Presentation

24 November 2021 ersonal

ersonal use only

FY21 Results

• GR Engineering reported record FY21 revenue of $392.4 million and EBITDA of $37.2 million.
• GR Engineering achieved revenue growth of 76% during FY21 as a result of strong contracting activity and solid operational performance in a challenging market environment.
• Cash generation was excellent and represented a high EBITDA conversion. During FY21, cash at bank increased by 84% to $69.0 million.
• GR Engineering's strong order book and anticipated continued strong cashflow generation leaves it well placed to continue to deliver returns to its shareholders.
• The strategic acquisition of Mipac during FY21, provides GR Engineering with an

opportunity to offer advanced standalone controls systems engineering, automation and technology solutions to its clients.

• The Total Reportable Injury Frequency Rate for FY21 was 9.51.
• A final dividend of 7.0 cents per share (fully franked) was declared, resulting in total FY21 dividends of 12.0 cents per share (fully franked).

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FY21 Results Summary

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Earnings

Balance Sheet & Cash Flow

Revenue			Cash
$400m			$80m
$300m			$60m
$200m	FY21		$40m	FY21
392.4	FY20
$100m	$20m	69.0	FY20
	222.4		37.5
$0m		$0m

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EBITDA			Net Operating Cash Flow
$40m		Underlying	$50m
		$40m
$30m		EBITDA*
	$30m	FY21
$20m	FY21
	$20m	49.5
	37.2	FY20
$10m	$10m
	11.3
$0m			$0m

PBT			Total Dividend
$40m			12cps
$30m	FY21			FY21
$20m		6cps
	12.0
$10m	33.7
FY20
$0m		0cps
	-9.7	Fully
-$10m

franked

*Underlying FY20 EBITDA excludes one-off bad debt expenses, miscellaneous inventory and debtor write-offs and Hanlon acquisition costs

GR Engineering Services (ASX:GNG)

FY20

11.2

FY20

6.0

Unfranked

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Balance Sheet & Cashflows

• Strong balance sheet maintained at 30 June 2021 and this has continued into the first quarter of FY22.
• Cash: $69.0 million (30 June 2020: $37.5 million).
• High EBITDA to cash conversion - net operating cashflows: $49.5 million
  (30 June 2020: $11.2 million).
• The combined bank guarantee and bonding facilities total $155 million. There is significant headroom on these facilities.

GR Engineering Services (ASX:GNG)

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Mineral Processing

• GR Engineering's design and construction order book of current work includes:

Company	Project	Type	($'m)
Northern Star Resources Limited	Thunderbox 6 Mtpa	EPC	101.0
	Expansion Project
Abra Mining Pty Ltd	Abra Base Metals Project	EPC	89.5
	and Paste Plant
Calidus Resources Limited	Warrawoona Gold Project	EPC	75.0
Aurenne Alt Resources Pty Ltd	Mt Ida Gold Project	EPC	73.0
RUC Cementation Mining	Newmont Tanami Gold	Rates	68.0
Contractors Pty Ltd	Mine
Pantoro Limited	Norseman Gold Project	EPC	59.5
Western Areas Limited	Cosmos Nickel Operations	EPC	48.0
Bluestone Mines Tasmania JV	Renison Tin Operations	EPC	31.7
Wiluna Mining Corporation	Wiluna Gold Operation	EPC	25.7
	Project
	GR Engineering Services (ASX:GNG)	5