Maas Group Holdings Ltd. · ASX:MGH
Maas — FY2024 Earnings Presentation
40 slides from Maas's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION COMPOUNDING CAPITAL WHILE DELIVERING ATTRACTIVE RETURNS THROUGH THE CYCLE
Slide 2: Agenda
AGENDA PRESENTERS BUSINESS STRATEGY & PERFORMANCE 3 – 12 BUSINESS UNIT REVIEWS 13 - 21 Wes Maas GROUP FINANCIAL RESULTS & REVIEW 22 – 32 CEO & Managing Director KEY MESSAGES 33 QUESTIONS 35 APPENDICES 36 – 40 Craig Bellamy Chief Financial Officer 2
Slide 3: Disciplined Focus on Return on Capital Employed (ROCE)
INVESTMENT FRAMEWORK DISCIPLINED FOCUS ON RETURN ON CAPITAL EMPLOYED (ROCE) Compounding capital Enabled by STRATEGIC FUNDAMENTALS while delivering attractive returns through the cycle Maas Group Holdings Underlying EBITDA ($M) 207.3 Proven track record of 163.1 Established and organic growth and 125
Slide 4: Values Driven
VALUES DRIVEN TRUST TEAMWORK only earned through action focused on safety and solutions COMMITMENT LEADERSHIP deliver on commitments to customers the courage to strive for excellence CANDOUR OWNERSHIP transparent conversations to get it right empowered to get it right and be accountable for the resu
Slide 5: Strategically Located
STRATEGICALLY LOCATED FITZROY Maas continues to grow its operations and asset portfolio focused on the east coast of Australia Key NEW ENGLAND Maas Office / Hub Renewable Energy Zone (REZ) Quarry Solar projects Concrete Plant Battery storage projects Newell Highway Wind projects Inland Rail Pumped h
Slide 6: Victoria Expansion
VICTORIA Key Quarry EXPANSION Concrete Plant Acquisitions of quarry (Melbourne East quarries) and concrete (Economix) businesses in FY24 have substantially expanded the Greater Melbourne network • Greater Melbourne footprint includes 5 quarries (4 hard rock and 1 sand), 9 concrete plants as well as
Slide 7: Financial Highlights
$207.3M $154.1M 25.7 CPS FINANCIAL Underlying EBITDA2 Increase of 27%, Underlying EBIT Increase of 28% on pcp Underlying EPS Increase of 18% on pcp HIGHLIGHTS 88% of growth from existing businesses3 with stronger EBIT conversion Record FY result – Strong growth, high cash conversion 88% $1.4bn $73.0
Slide 8: 5 Year Record of Growth
5 YEAR RECORD OF GROWTH Maas Group Holdings Construction Materials Civil Construction & Hire Maas Group Holdings Underlying EBITDA ($M) Underlying EBITDA ($M) Underlying EBITDA ($M) Underlying NPAT ($M) 75.0 84.3 80.2 68.7 207.3 68.9 163.1 61.2 49.7 52.0 125.1 39.2 33.6 39.7 28.6 32.4 75.9 64.7 17.8
Slide 9: Health & Safety
HEALTH & SAFETY Total Recordable Injury Frequency Rate (TRIFR) 18 15.8 15.9 Our focus is on decreasing injuries across all our Business 15.4 16 15.3 Units. We have implemented a Safety Activity Calendar across the Company to focus our businesses on proactive safety management. 14 3.7 4.3 12 6.8 We r
Slide 10: Sustainability
Maas is committed to, and maturing on, its journey to SUSTAINABILITY reduce environmental and climate related impacts INITIATIVES Low Carbon Offerings OUTLOOK • Dandy aims to reduce supplementary cementitious materials by 60-75% (without using offsets) Maas embraces sustainability and through its Ca
Slide 11: People, Culture & Community
PEOPLE, CULTURE & COMMUNITY ~2,000 31% 82 FEMALE APPRENTICESHIP TEAMMATES REPRESENTATION / TRAINEESHIP IN SENIOR EXECUTIVE HIGHLIGHTS Ongoing commitment to ‘growing our own’ through supported external training and development opportunities as well as the MGH leadership development program In FY24 we
Slide 12: Market Overview
MARKET OVERVIEW TRADING CONDITIONS • Infrastructure and renewable energy related projects continue to drive solid demand for Construction Materials. • Renewable energy projects including commencement of transmission projects underpinning demand for Civil Construction and Hire business. • Demand and
Slide 13: Business Unit Overview
BUSINESS UNIT OVERVIEW INDUSTRIAL OPERATING SEGMENTS REAL ESTATE OPERATING SEGMENTS CONSTRUCTION CIVIL CONSTRUCTION MANUFACTURING RESIDENTIAL COMMERCIAL MATERIALS & HIRE & EQUIPMENT SALES REAL ESTATE REAL ESTATE • Quarries • Equipment hire • Equipment sales & • Residential developments • Commercial
Slide 14: Construction Materials
CONSTRUCTION MATERIALS Quarries · Concrete · Asphalt · Geotechnical Engineering · Logistics 14
Slide 15: Business Unit Performance: Construction Materials
FY24 HIGHLIGHTS BUSINESS UNIT PERFORMANCE • Revenue increased significantly on FY23 driven by organic growth1 and strong performance of businesses acquired in CONSTRUCTION MATERIALS FY23 • EBITDA growth in FY24 of 54% driven by 44% growth from existing businesses2 (82% of total growth). $ Million (U
Slide 16: Civil Construction & Hire
CIVIL CONSTRUCTION & HIRE Equipment Hire · Civil Construction · Electrical Transmission & Distribution 16
Slide 17: Business Unit Performance: Civil Construction and Hire
BUSINESS UNIT PERFORMANCE FY24 HIGHLIGHTS CIVIL CONSTRUCTION AND HIRE • Revenue decreased on FY23 driven by a reduction in Electrical revenue impacted by timing on key projects • EBITDA increased by 9% with growth in higher margin $ Million (Underlying) FY23 FY24 Movement renewable energy projects t
Slide 18: Residential Real Estate
RESIDENTIAL REAL ESTATE Residential Developments · Home Building · Build-to-Rent · Land Lease Developments 18
Slide 19: Business Unit Performance: Residential Real Estate
FY24 HIGHLIGHTS • Revenue reduced on FY23 driven by a reduction in external BUSINESS UNIT PERFORMANCE • home builds (FY23: 170 vs FY24: 124) EBITDA excluding fair value gain increased by 123% driven by RESIDENTIAL REAL ESTATE an englobo sale representing the effective sale of 60 future lots, higher
Slide 20: Commercial Real Estate
COMMERCIAL REAL ESTATE Commercial Real Estate · Commercial Construction · Insurance · Building Materials 20
Slide 21: Business Unit Performance: Commercial Real Estate
BUSINESS UNIT PERFORMANCE FY24 HIGHLIGHTS COMMERCIAL REAL ESTATE • Revenue decreased marginally on FY23 driven by Commercial Construction and Building Supplies • EBITDA decreased by 10% driven by a reduction in fair value gain on investment properties (FY24: $22.4m, FY23: $26.2m) $ Million (Underlyi
Slide 22: Group Financial Results and Review
GROUP FINANCIAL RESULTS AND REVIEW Craig Bellamy Chief Financial Officer 22
Slide 23: Group Underlying Profit & Loss
GROUP UNDERLYING PROFIT & LOSS $ Million (Underlying) FY23 FY24 • Revenue growth of 11%, driven by existing businesses and businesses acquired in FY24. Key drivers of the increase: Revenue 790.8 875.8 • Increased quarry and concrete volumes driving quarry, concrete and transport sales Other Revenue
Slide 24: Expenses
EXPENSES Expenses driven by acquired and organic revenue growth at improved margins over pcp $ Million FY23 FY24 Increase % • Operating expenses increased by 7%, driven by: Revenue 795.3 881.9 11% • $21.2m increase in expenses from businesses acquired in FY24 Materials & consumables1 387.8 410.2 6%
Slide 25: Underlying Cash Flow
UNDERLYING CASH FLOW $ million (Underlying) FY23 FY24 • Operating Cash Flow (pre-land inventory, FV gains, interest & tax) for FY24 EBITDA 163.1 207.3 is $154.3m, representing a cash conversion of EBITDA ratio of 88% driven by Fair value gains (FV gains) (30.5) (31.8) strong working capital manageme
Slide 26: Capital Recycling
CAPITAL RECYCLING FY24 Capital Recycling $ Million Proceeds FY24 FV Gains & gain on sale1 Commercial & BTR 2 63.5 7.5 Non-Core PP&E 3 8.1 2.7 Total 71.6 10.2 1H25 Capital Recycling Update $ Million Proceeds FY24 FV Gains & gain on sale1 Properties sold, to be settled in 1H254 65.4 4.3 Total 65.4 4.3
Slide 27: Underlying Cashflow by Segment
UNDERLYING CASHFLOW BY SEGMENT Construction Civil Construction Residential Commercial Corporate & $ million (Underlying) Manufacturing Group Materials & Hire Real Estate Real Estate Eliminations EBITDA 80.2 75.0 28.8 37.7 3.5 (18.0) 207.3 Fair value gains - - (9.4) (22.4) - - (31.8) EBITDA excl. fai
Slide 28: Capital Investments
CAPITAL INVESTMENTS FY24 Capital Investments $ million FY23 FY24 • Acquisitions for FY24 include Economix Concrete (Construction Materials), Melbourne East Quarries (Construction Materials), Wade Quarry Services (Construction Materials) and Construction materials acquisitions1 113.9 76.6 Geotech Lab
Slide 29: Capital Management
CAPITAL MANAGEMENT Net Debt as at 30 June 20241 Banking Facilities as at 30 June 20241 $ Million 30 June 2024 $ Million Limit Drawn Undrawn Borrowings Cash Advance Facility 365.0 365.0 - Current 74.9 Asset Finance Facility 165.0 154.4 10.6 Multi-option Facility - Overdraft 28.5 28.5 - Non-current 54
Slide 30: Syndication Refinance
SYNDICATION REFINANCE Australian Borrowing Group – Limits Australian Borrowing Group - Covenants $ Million Previous Limit New Limit1 Additional Liquidity Previous Covenant New Covenant Cash Advance Facility 365.0 425.0 60.0 Net leverage ratio <3.5x <4.0x Asset Finance Facility – Legacy1 165.0 - - De
Slide 31: Group Balance Sheet
GROUP BALANCE SHEET Balance Sheet1 • Property, plant and equipment increased by $96.5m from 30 June 2023 driven by the $ million acquisition of Economix Concrete, Melbourne East Quarries and Wade Quarry Services 30 June 2023 30 June 2024 Assets • Investments increased by $42.3m from 30 June 2023 dri
Slide 32: Capital Employed
CAPITAL EMPLOYED Capital Employed by Segment Capital Balance 30 Business Working Land Balance 30 Underlying FY24 FY23 $ million Other1 Employed June 2023 Acquisitions capital Inventory June 2024 EBIT ROCE2 ROCE2 During FY24 Civil Construction & Hire 273.5 - 1.8 - (22.1) (20.3) 253.2 54.6 21% 18% Con
Slide 33: Key Messages
KEY MESSAGES • Record full year result underpinned by strong organic growth, achieved in spite of some headwinds • Cashflow conversion of 88% driven by working capital discipline • Capital recycling achieved target proceeds above book value with further $65m commercial properties sold with cash proc
Slide 34: 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. The information in this presentation is current as at 21 August 2024. It is in summary form and is not necessaril
Slide 35: Questions
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Slide 36: Appendix
APPENDIX MAAS
Slide 37: Group Statutory Profit & Loss
GROUP STATUTORY PROFIT & LOSS Statutory Net Profit after Tax (NPAT) Reconciliation of Statutory to Underlying NPAT $ Million FY23 FY24 $ Million FY23 FY24 Revenue 795.0 902.4 Statutory NPAT attributable to owners of MGH 65.4 73.0 Other Revenue 4.6 6.1 Share based payments 1.0 1.8 Revenue 799.6 908.5
Slide 38: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE Revenue ($m)1 EBITDA ($m)1 EBIT ($m)1 1000.0 250.0 180.0 900.0 160.0 800.0 200.0 140.0 700.0 120.0 600.0 150.0 100.0 500.0 881.9 80.0 154.1 400.0 795.3 100.0 207.3 163.1 60.0 120.0 300.0 539.1 125.1 94.2 50.0 40.0 200.0 59.8 283.4 64.7 75.9 20.0 49.9 100.0 225.2 0.0
Slide 39: Underlying Segment Performance
UNDERLYING SEGMENT PERFORMANCE Strong growth from Construction Materials, Civil Construction and Hire and Residential Real Estate Revenue ($m) EBITDA ($m) EBIT ($m) 1000 941.7 250.0 200.0 225.2 173.2 900 853.0 25.3 180.0 3.5 1.2 30.6 131.6 800 200.0 37.7 160.0 138.2 179.4 137.1 36.7 84.7 140.0 700 4
Slide 40: Land Inventory
LAND INVENTORY Land Inventory movement • Residential land multi-year lag between englobo acquisition to land settlements as estates are developed. Land settlements to date made $ million Residential Commercial Elimination Group from land acquired pre-April 2021. Opening Land Inventory 128.9 41.9 (3.