Acrow Limited · ASX:ACF
Acrow — Acrow Formwork and Construction Services — Shareholder Meeting (November 2023)
25 slides from Acrow's shareholder meeting presentation, Nov 15, 2023
Slide 1: 2023 Annual General Meeting - CEO Presentation
15 November 2023 2023 ANNUAL Acrow Formwork and Construction Services Ltd (ASX:ACF) GENERAL MEETING For personal use only CEO Presentation Steven Boland – CEO Raising the Standard in Construction.
Slide 2: Disclaimer
DISCLAIMER This presentation is based on unaudited final results and provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information conta
Slide 3: Acrow Overview
ACROW OVERVIEW Acrow is a leading provider of smart integrated construction systems. 1950 Apr 2018 6 states 12 460 FTE ~1300 47 clients engineers For personal use only COMPETITIVE SECTORS ADVANTAGE SERVICED ENGINEERING QUALITY OF EXPERTISE & OUR • CIVIL SOLUTIONS PEOPLE INFRASTRUCTURE • INDUSTRIAL -
Slide 4: Safety Is Our Priority
SAFETY IS OUR PRIORITY ZERO HARM IMPROVEMENT LTIFR 1 25 6 20 38% For personal use only 4 IMPROVEMENT 15 2 10 0 5 FY22 FY23 0 TRIFR TRIFR FY22 FY23 TOTAL RECORDABLE LOST TIME INJURIES INJURIES 15 4 36% 3 10 IMPROVEMENT 2 5 1 0 0 FY22 FY23 FY22 FY23 4 1. Lost Time Injury Frequency Rate
Slide 5: Acrow FY23 Results Summary and Track Record
For personal use only ACROW FY23 RESULTS SUMMARY AND TRACK RECORD 5
Slide 6: Key Financial Metrics - FY23
KEY FINANCIAL METRICS - FY23 1 REVENUE EBITDA 200 60 $168.5 $53.2 $148.3 150 $36.3 40 100 $m $m For personal use only 20 50 14% 47% 0 0 FY22 FY23 FY22 FY23 NPAT (Stat.) NPAT 25 $23.5 40 $30.5 20 $15.7 30 15 20 $17.8 $m $m 10 49% 71% 10 5 0 0 FY22 FY23 FY22 FY23 EPS DPS 15 5 4.4c 11.7c 4 10 2.7c 7.2c
Slide 7: Strong Track Record
STRONG TRACK RECORD 1 Revenue ($m) EBITDA ($m) Return On Equity (%) FY18 65.3 FY18 13.2 FY20 17.0 FY19 71.0 FY19 14.8 21% CAGR 32% CAGR FY21 14.5 18% CAGR For personal use only FY20 87.0 FY20 19.5 FY21 105.7 FY21 24.3 FY22 23.0 FY22 148.3 FY22 36.3 FY23 32.7 FY23 168.5 FY23 53.2 0 50 100 150 200 0 2
Slide 8: Market Outlook & Opportunities
For personal use only MARKET OUTLOOK & OPPORTUNITIES 8 Pre-assembled Franklin Adit for Metro Tunnel, VIC
Slide 9: Total Building Activity - Forecasts
1 TOTAL BUILDING ACTIVITY - FORECASTS FORECAST TOTAL BUILDING & CONSTRUCTION WORK FORECAST OF VALUE PER CATEGORY For personal use only RESIDENTIAL NON- ENGINEERING BUILDING RESIDENTIAL CONSTRUSTION BUILDING • New houses • Accommodation • Roads • New other residential • Educations • Bridges, railways
Slide 10: Secured Hire Contracts and Pipeline
SECURED HIRE CONTRACTS AND PIPELINE SECURED HIRE CONTRACTS PIPELINE1 80.0 For personal use only 74.5 Secured contracts won Hire revenue 70.0 67.5 150 +69.6% 60.0 56.7 $142.3m 50.4 100 50.0 42.5 $m 39.2 40.0 37.2 $83.9m 50 29.9 31.0 29.7 30.0 21.1 20.0 18.5 0 FY22 FY23 10.0 Formwork ~80% of pipeline
Slide 11: Upcoming Major Transport Infrastructure Projects - Australia
UPCOMING MAJOR TRANSPORT INFRASTRUCTURE PROJECTS - AUSTRALIA Suburban Rail Loop, Victoria 30.0Bn+ Will deliver a 90km rail line linking every major train service from the Frankston Line to the Werribee Line via Melbourne Airport. Three transport super hubs at Clayton, Broadmeadows and Sunshine will
Slide 12: Jumpform
JUMPFORM Contracts secured o 5 projects secured to-date o 4 wins include an Acrow screens package For personal use only Exclusive 10-year agreement o Jacking Systems (NZ) o Commenced Q4 FY22 Competitive advantage o Proprietary electric ball screw jacks - all computer controlled o All components re-u
Slide 13: Screens
SCREENS Products o Natform screens - light duty protection screens, 3m maximum width and suitable for applications where slab loading is limited, and the screen is to only provide edge protection o Premium screens - heavy duty screens for more For personal use only complex applications, widths up to
Slide 14: Product Development
PRODUCT DEVELOPMENT Products o Acrowdeck – Modular slab formwork system o Powershore 150 - Heavy duty shoring system with 50% more capacity than similar systems on the market o Universal Soldier System - Multipurpose formwork For personal use only system primarily used on infrastructure project in a
Slide 15: Industrial Services
INDUSTRIAL SERVICES Background o Part of Uni-span acquisition 2020 o Four-fold increase in revenue since 2020 o Initially a Queensland centric business For personal use only Competitive advantage o Highly skilled workforce o Accreditation/safety New products/new markets o Expanded into NSW, SA and T
Slide 16: Rebrand: One Team. One Brand. One Acrow.
REBRAND ONE TEAM. ONE BRAND. ONE ACROW. Signifies: o Unifying Acrow & all acquisitions (Natform, Uni-span, Heinrich & now MI Scaffold) o Fresh, new and reincarnated Acrow For personal use only o Clear and concise message to the market on who Acrow is (Engineering and Construction) o Leading supplier
Slide 17: Acquisition of MI Scaffold
For personal use only ACQUISITION OF MI SCAFFOLD 17
Slide 18: MI Scaffold Acquisition
MI SCAFFOLD ACQUISITION Highly complementary to Acrow’s existing industrial services platform OVERVIEW EXAMPLES OF LAYHER® SOLUTIONS Since establishment in 2012, MI Scaffold has grown into a market leading industrial scaffolding, access and rigging services supplier with ~180 employees and ~250 clie
Slide 19: Snapshot of Key Markets Served
SNAPSHOT OF KEY MARKETS SERVED Entry into new Industrial Services sectors serving large, blue-chip clients Marine & Port Infrastructure Energy & Resources Industrial For personal use only 19
Slide 20: Indicative Pro Forma Business Mix
INDICATIVE PRO FORMA BUSINESS MIX 1 An acquisition of MI Scaffold will significantly enhance Acrow’s industrial services division and exposure to attractive infrastructure, industrial and mining markets Pro Forma For personal use only 13%, 2%, TAS 5%, SA 3%, TAS Gladstone 4%, SA 5%, WA 6%, WA 10% VI
Slide 21: Guidance Update - Post Acquisition
For personal use only GUIDANCE UPDATE - POST ACQUISITION 21 Albert Street Jumpform, Brisbane, QLD
Slide 22: Guidance Update - To Reflect Acquisition
GUIDANCE UPDATE – TO REFLECT ACQUISITION Underlying Acrow business performing within previous guidance range FY24 FY24 For personal use only METRIC %CHG GUIDANCE GUIDANCE (UNDERLYING) ON FY231 (New) (Previous) Revenue $215m - $225m $190m - $200m up 31% EBITDA $72m - $75m $67m - $70m up 38% Forecast
Slide 23: Summary
SUMMARY Record financial results For personal use only New revenue streams from organic and acquisition growth initiatives continue Record hire contract wins/pipeline ROE 32.7% - more than doubles over 4 years FY24 EBITDA guidance up 38% (midpoint) on pcp 23 Acrow Clayton, VIC yard
Slide 24: Thank You
24 For personal use only 24 THANK YOU 24 Pre-assembled Franklin Adit for Metro Tunnel, VIC
Slide 25: Contact
CONTACT ACROW HEAD OFFICE 2A Mavis Street Revesby NSW For personal use only 2212 1300 138 362 info@acrow.com.au Steven Boland www.acrow.com.au MD & CEO Investor enquiries & presentation questions investors@acrow.com.au Raising the Standard in Construction. 25
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