Maas Group Holdings Ltd. · ASX:MGH
Maas — FY2022 Earnings Presentation
37 slides from Maas's earnings presentation, Aug 18, 2022
Slide 1: FY22 Results Presentation
FY22 RESULTS PRESENTATION 18 August 2022
Slide 2: Our Vision
OUR VISION Delivering market leading property, construction and infrastructure solutions. 2
Slide 3: Our Values
OUR VALUES Commitment to customers Trust Deliver on commitments Only earnt through action Leadership Candour Transparent conversations to get it right The courage to strive for excellence Teamwork Ownership Empowered to get it done and be Focused on safety and solutions accountable for the results 3
Slide 4: Our People, Culture and Communities
OUR PEOPLE, CULTURE AND COMMUNITIES A culture of commitment and care for our teammates, our customers and communities. ▪ Our teams continue to grow as a result of organic growth, geographical expansion and acquisition. Our employees now number approximately 1,500 up from 600+ last year ▪ Our values
Slide 5: Safety and Environment
SAFETY AND ENVIRONMENT MGH FY22 LTIFR relative to Industry1 ▪ Our HSE strategy is focused on our people and risks, supported by our systems. Our targeted, 14 risk-based approach, together with our behaviours, aims to deliver engaged leaders, empowered workers and a culture of safety. 12 ▪ We launche
Slide 6: Financial Highlights (FY22 vs FY21)
FINANCIAL HIGHLIGHTS (FY22 VS FY21) Top end of guidance achieved through organic growth and complimentary acquisitions Proforma Revenue Proforma EBITDA Proforma EBIT $539.1m $125.1m $94.2m Increase of 90% over FY21, Strong performance at top Increase of 58% over FY21, strong pipeline for FY23 and en
Slide 7: FY23 Earnings Outlook: Significant Growth Expected
FY23 EARNINGS OUTLOOK: SIGNIFICANT GROWTH EXPECTED MGH expects pro forma1 FY23 EBITDA in the range of $180m to $200m, representing year-on-year growth of 44% to 60% ▪ Key budget assumptions underpinning the FY23 guidance include: Pro Forma Group EBITDA ($ Million) ▪ Full year contribution from recen
Slide 8: Proforma Segment Performance
PROFORMA SEGMENT PERFORMANCE Revenue ($m)1 EBITDA ($m)1 EBIT ($m)1 700.0 120.0 160.0 103.0 583.0 600.0 134.2 0.4 19.8 140.0 100.0 1.8 500.0 120.0 189.0 80.0 54.2 66.0 53.5 100.0 400.0 82.8 3.7 310.2 60.0 80.0 4.8 300.0 23.3 22.7 22.7 55.3 252.3 60.0 49.7 40.0 200.0 31.7 40.0 182.8 39.2 28.3 20.0 100
Slide 9: Group Proforma Profit & Loss
GROUP PROFORMA PROFIT & LOSS $ Million FY21 FY22 ▪ Revenue growth of 90%, 28% from organic and 72% from acquisitions. Key drivers of the Revenue 279.4 531.9 increase: ▪ New revenue streams for commercial construction, concrete and building supplies Other Revenue 4.0 7.2 (increase of $101.4m) Revenue
Slide 10: Group Statutory Profit & Loss
GROUP STATUTORY PROFIT & LOSS Statutory Net Profit after Tax (NPAT) Reconciliation of Statutory to Pro forma NPAT $ Million FY21 FY22 $ Million FY21 FY22 Revenue 273.6 509.9 Statutory NPAT attributable to owners of MGH 34.7 61.6 Other Revenue 4.0 7.2 Pre-acquisition NPAT 0.2 1.2 Revenue 277.6 517.1
Slide 11: Expenses
EXPENSES Expenses increased in line with revenue growth and acquisitions $ Million FY21 FY22 Increase % ▪ EBITDA related expenses increased by 99%, driven by: Revenue 283.4 539.1 90% ▪ $157.1m increase in expenses from businesses acquired Materials & consumables1 134.3 254.3 89% ▪ $60.5m increase in
Slide 12: Proforma Cashflow
PROFORMA CASHFLOW $ million FY21 FY22 ▪ Operating Cash Flow (pre land inventory & tax) for FY22 is $59.6m, EBITDA 75.9 125.1 representing a cash conversion of EBITDA ratio of 48% driven by working capital investment into the Civil Construction and Hire ($24.2m) and Non-cash items (10.8) (22.3) Const
Slide 13: Proforma Cashflow by Segment
PROFORMA CASHFLOW BY SEGMENT Civil Construction Construction Corporate & $ million Real Estate Manufacturing FY22 & Hire Materials Eliminations EBITDA 49.7 28.6 54.2 1.8 (9.1) 125.1 Non-cash items (1.6) (1.0) (19.6) - - (22.3) Changes in working capital1 (24.2) (13.2) (1.7) (4.4) 0.3 (43.3) Operatin
Slide 14: Capital Investments
CAPITAL INVESTMENTS FY22 Capital Investments ▪ Significant Growth CAPEX through acquisitions, investment and growth-related PPE Construction materials acquisitions1 (47.8) additions Real Estate construction acquisitions1 ▪ Commercial land acquisitions of $48.8m include the Yatala quarry site, the Li
Slide 15: Group Capital Structure
GROUP CAPITAL STRUCTURE Net Debt as at 30 June 2022 Pro Forma Banking Facilities as at 30 June 2022 $ Million 30 June 2022 $ Million Limit Drawn Undrawn Borrowings Cash Advance Facility 280.0 174.6 105.4 Current 57.9 Asset Finance Facility 150.0 89.6 60.4 Non-current 271.6 Multi-option Facility 70.0
Slide 16: Debt Maturity & Interest Rate Management
DEBT MATURITY & INTEREST RATE MANAGEMENT Debt contractual maturity at 30 June 2022 (excl. AASB 16 property leases) 1 ▪ Australian bank loan drawn amount has a 3-year term due in FY25 $ Million FY23 FY24 FY25 FY26 FY27 ▪ Vendor loan repayments relating to purchases of Bank loans 21.3 7.8 189.1 land i
Slide 17: Group Balance Sheet (Assets)
GROUP BALANCE SHEET (ASSETS) $ million Jun-21 Jun-22 Strong Balance Sheet with capacity to support further growth Current assets Cash and cash equivalents 18.0 52.5 Change in total assets Trade and other receivables 37.7 86.5 Contract assets 8.6 26.8 Inventories 57.0 87.9 Non-current assets classifi
Slide 18: Group Balance Sheet (Liabilities & Equity)
GROUP BALANCE SHEET (LIABILITIES & EQUITY) $ million Jun-21 Jun-22 Strong Balance Sheet with capacity to support further growth Current liabilities Change in net assets Trade and other payables 38.3 67.4 Contract liabilities 7.0 17.3 Borrowings & lease liabilities 35.6 57.9 Other 5.6 13.1 Total curr
Slide 19: Capital Employed
CAPITAL EMPLOYED Capital Employed by Segment Capital Balance Average Balance 30 Business Working Land Proforma FY22 Other1 Employed 30 June Capital June 2021 Acquisitions capital Inventory EBITDA ROCE During FY22 2022 Employed2 Civil Construction & Hire 176.9 50.1 24.2 - (5.0) 69.3 246.1 211.5 49.7
Slide 20: Construction Materials
CONSTRUCTION MATERIALS REGIONAL QUARRIES REDIMIX CONCRETE GEO-TECH LOGISTICS
Slide 21: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22 ▪ Construction Materials FY22 EBITDA delivered strong growth on prior year despite record rain events ▪ 31 strategically located quarries with 25 in operation and planning and development of new quarries in progress ▪ Plant upgrades completed and achieving
Slide 22: Financial Performance – Construction Materials
FINANCIAL PERFORMANCE – CONSTRUCTION MATERIALS $ Million FY21 FY22 Movement ▪ Revenue increased significantly on FY21 driven by both acquisition 1 (54%) and organic (46%) growth Revenue 48.8 122.0 150% ▪ Organic growth increase driven by quarry volumes and concrete sales (greenfield concrete sites)
Slide 23: Civil Construction & Hire
CIVIL CONSTRUCTION & HIRE CIVIL EQUIPMENT HIRE ELECTRICAL
Slide 24: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22 ▪ Civil Construction and Hire delivered strong proforma EBITDA growth on prior year driven by organic and acquisition growth ▪ Integration synergies being realised through dedicated experienced leadership, assets, equipment pools, centralised systems and s
Slide 25: Financial Performance - Civil Construction and Hire
FINANCIAL PERFORMANCE - CIVIL CONSTRUCTION AND HIRE $ Million FY21 FY22 Movement ▪ Revenue increased on FY21 driven by both acquisition1 (62%) and organic (38%) growth Revenue 182.8 252.3 38% ▪ EBITDA increased by 27%, EBITDA margins have maintained at similar levels EBITDA 39.2 49.7 27% to FY21 wit
Slide 26: Real Estate
REAL ESTATE RESIDENTIAL HOME BUILDING BUILD-TO-RENT LEASING DEVELOPMENT COMMERCIAL COMMERCIAL BUILDING MATERIALS DEVELOPMENTS CONSTRUCTION
Slide 27: Business Unit Performance
BUSINESS UNIT PERFORMANCE Residential Highlights – FY22 ▪ FY22 residential settlements of 270 (FY21:230), including 30 build to rent ▪ Average regional land sale price up 25% from CY20 ▪ Vertically integrated construction capability has proven to deliver volume of residential lots at market velocity
Slide 28: Business Unit Performance
BUSINESS UNIT PERFORMANCE FY23 Outlook – Residential Forecast Residential Lots Settled ▪ FY23 forecast includes 360-400 lot settlements1 (versus 270 settlements1 in 500 FY22) and ~250 house starts 450 ▪ Diversity in lot sizes and use to be released to meet the market for affordability and lifestyle
Slide 29: Business Unit Performance
BUSINESS UNIT PERFORMANCE Commercial Highlights – FY22 ▪ Acquisition of Spacey Self Storage added storage assets and development pipeline. 528 units under operation. Price increases have been implemented across the board and targeted expansion and new development planned for Canberra, Goulburn, Port
Slide 30: Financial Performance – Real Estate
FINANCIAL PERFORMANCE – REAL ESTATE $ Million FY21 FY22 Movement ▪ Revenue increased significantly on FY21 driven by both acquisition1 (77%) and Revenue 55.3 189.0 242% organic (23%) growth EBITDA 22.7 54.2 139% ▪ EBITDA increased by 139%, EBITDA margins have reduced on FY21 driven by the EBITDA Mar
Slide 31: Manufacturing
MANUFACTURING JACON TOLL MANUFACTURING VMS
Slide 32: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22 ▪ Despite global impact of COVID the segment delivered positive EBITDA contribution ▪ Increased costs incurred for housing Vietnamese employees in a government enforced workplace COVID bubble ▪ Downstream supply chain was not insulated from global delays e
Slide 33: Financial Performance - Manufacturing
FINANCIAL PERFORMANCE - MANUFACTURING $ Million FY21 FY22 Movement ▪ Revenue decreased by 15% for the year, Revenue 23.3 19.8 -15% EBITDA 4.8 1.8 -63% ▪ EBITDA decreased by 63%, impacted by challenging supply chain EBITDA Margin 21% 9% -56% conditions and sales mix EBIT 3.7 0.4 -90% ▪ EBITDA margins
Slide 34: Growth Initiatives & Outlook
GROWTH INITIATIVES & OUTLOOK Construction Materials Civil Construction and Hire ▪ Continuous cost reduction through lean ▪ Growth expected to be supported by quarry programme contract wins and increased demand from the Real Estate business unit ▪ Leverage transport fleet to services hubs most effect
Slide 35: FY23 Earnings Outlook: Significant Growth Expected
FY23 EARNINGS OUTLOOK: SIGNIFICANT GROWTH EXPECTED MGH expects pro forma1 FY23 EBITDA in the range of $180m to $200m, representing year-on-year growth of 44% to 60% ▪ Key budget assumptions underpinning the FY23 guidance include: Pro Forma Group EBITDA ($ Million) ▪ Full year contribution from recen
Slide 36: Disclaimer
DISCLAIMER Important information The purpose of this presentation is to provide general information about MAAS Group Holdings Ltd (Maas or the Company) and its subsidiaries and business. No offer of securities This presentation is for informational purposes only and does not constitute or form any p
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