Ann: 1H FY19 Results Investor Presentation, page-37

First Read: Bingo Industries "UBS SnapShot: 1H19 Results" (Buy) Plumbe

ONE LINERMarginally below UBSe at the operational level, but FY19E guidance already provided last week. Outlook for infrastructure sub-segment more positive vs UBSe.KEY NUMBERSRevenue $179m (+25% yoy / +6% vs UBSe $169m). EBITDA $45.6m (+4% yoy / -3% vs UBSe $47.0m). NPATA (underlying) $23.0m (+4% yoy / +11% vs UBSe $20.7m). EPS (underlying) 4.4cps (-29% yoy / +14% vs UBSe 3.8cps). Interim DPS 1.7cps vs UBSe 1.1cps (1.7cps in pcp).RESULT HIGHLIGHTS1) Collections: EBITDA $19.3m, up +7% on pcp and +2% vs UBSe $19.0m.2) Post Collections: EBITDA $25.3m up +5% on pcp and -4% vs UBSe $26.2m.3) Toro: EBITDA $1.1m down -41% on pcp, and -38% vs UBSe $1.8m.4) Operating CF of $22m was up +19% yoy (UBSe $30m) and cash conversion was 103%.VALUATIONOur $2.55 PT is based on our 50%/50% blended 1yr fwd PE ($2.24) and DCF ($2.86) valuations.GUIDANCEFY19E EBITDA (pre Dadi) $92-96m reaffirmed (refer UBS report). Expecting 1H19/2H19 split of ~50%/50%, which implies $91.2m for underlying EBITDAUBS COMMENTSlight EBITDA miss. Our interest expense forecast was too high, resulting in a NPATA beat. Positive trends in terms of reducing residential exposure (estimated ~25% now) and increasing infrastructure exposure (24% of collections revenue). Strong momentum in additional infrastructure project wins in 1H19 also a positive.