Pwr Holdings Ltd. · ASX:PWH
Pwr — H1 FY22 Earnings Presentation
21 slides from Pwr's earnings presentation, Feb 17, 2022
Slide 1: PWR Holdings Limited 2022 First Half Results Presentation
PWR Holdings Limited (ASX:PWH) 2022 First Half Results Presentation February 2022 Presented by: Kees Weel – Managing Director Martin McIver – Chief Financial Officer Engineering the Unfair Advantage
Slide 2: Important Notice
Important Notice This document has been prepared by PWR Holdings Limited (PWR) and comprises written materials/slides for a presentation concerning PWR. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise di
Slide 3: Performance Highlights
Performance Highlights Strong Business Growth Overall 22% growth – solid growth across all key markets Motorsports 20% growth – motorsport categories return to a more traditional race program Original Equipment Manufacturers 43% growth – strong growth due to the commencement of new programs (OEM) in
Slide 4: Performance Challenges – COVID-19
Performance Challenges – COVID-19 COVID-19 Continuing market uncertainty with frequently changing rules and guidelines International and State border closures restricting movement of employees Employee availability due to Government imposed isolation requirements impacting production capacity COVID-
Slide 5: Performance Challenges – Other
Performance Challenges – Other Supply Chain Supply chain shortages have resulted in increased prices, lead times and minimum order quantities for raw materials We have increased sale prices where possible to pass through the raw material costs We have been increasing forward orders and inventory of
Slide 6: Performance Overview
Performance Overview H1 FY22 H1 FY21 Change Shares on issue 100.3 m 100.2 m 0.1% Market capitalisation1 $862 m $453 m 90.3% Key points • COVID-19 Support – H1 FY22 $nil (H1 FY21: Cash & deposits $16.7 m $16.8 m (0.4%) $2.0 million) Debt2 $7.6 m $12.7 m (39.9%) • Depreciation – Investment in equipmen
Slide 7: Performance Trend – Half Year
Performance Trend – Half Year 16.3% YoY 1 CAGR - Compound Annual Growth Rate over 5 years February 2022 – FY22 Half Year Results 7
Slide 8: Revenue by Market Sector – Half Year
Revenue by Market Sector – Half Year Key points – Market Sectors Revenue by Market Sector HY22 HY21 Growth • Motorsports – growth driven by a broad-based return of A$'000 % A$'000 % A$'000 % motor racing events for 2022 Motorsports 21,871 48% 18,269 49% 3,602 20% • Automotive aftermarket – Growth wa
Slide 9: Revenue by Currency – Half Year
Revenue by Currency – Half Year Sales to third parties by currency 30,000 41.8% 25,000 21.3% 1.0% Revenue in currency '000 20,000 15,000 3.7% 10,000 Currency 31/12/2021 31/12/2020 Change HY22 Avg HY21 Avg Change 23.5% GBP 0.5377 0.5648 (4.8%) 0.5367 0.5537 (3.1%) 5,000 USD 0.7252 0.7680 (5.6%) 0.731
Slide 10: Operating Expenses
Operating Expenses Key points • Raw materials and consumables • Usage increased by $1.4m or 13.5% A$'000 H1 FY22 H1 FY21 • Movement in Finished Goods Inventory and Work in Progress (WIP) adjusted against raw materials Usage of raw materials and consumables (11,148) (9,785) • Employee expenses Adjust
Slide 11: Balance Sheet
Balance Sheet December June A$000 2021 2021 Key points Assets • Strong liquidity and cash position Cash and cash equivalents 16,718 19,857 • $6.0 million cash dividend paid in September 2021 Trade and other receivables 8,890 9,341 • ROE decreased to 26.8% (H1 FY21: 29.1%), noting that Inventories 9,
Slide 12: Working Capital & Cashflow
Working Capital & Cashflow Key points A$'000 H1 FY22 H1 FY21 • Operating cashflow decreased by (45%) compared to Trade and other 8,890 6,646 prior period, noting: Prepayments 3,073 2,713 • prior period included $2.0 million in COVID support Inventories 9,536 6,243 payments Trade & other payables (6,
Slide 13: Business Outlook
Business Outlook • Organic Growth – extensive organic growth opportunities. Disciplined approach to selecting which opportunities to progress • Motorsports – continue to support all major motorsports categories as they strive to develop more efficient cooling technology • OEM programs – continuing t
Slide 14: Business Outlook – Emerging Technology
Business Outlook – Emerging Technology • Electric Vehicle (EV) Market – well placed to deliver high performance battery and electronics cooling products to the ever-expanding prestige EV market • Cold Plates – the cold plate market previously limited to automotive applications is now spreading to ad
Slide 15: Business Outlook – Aerospace & Defence
Business Outlook – Aerospace & Defence • Second Half Demand – deliveries for key US customers looking strong for the 2nd half due to increased demand • Australian Defence – Government decision on large Australian Defence program to be made in the March Quarter 2022. Subsequent selection for PWR as p
Slide 16: Business Outlook – Managing Risks
Business Outlook – Managing Risks • COVID-19 Risk – PWR has been actively planning for and managing the COVID-19 risk, including introducing a vaccine mandate to gain access to the Ormeau facility from 4 January 2022 Increased community transmission in January 2022 impacted our workforce and consequ
Slide 17: Planning for Future Success
Planning for Future Success In addition to achieving current year targets, the management team are laying the foundations for our future growth and success We will continue to partner with our customers to develop the leading edge high performance cooling systems, applying this knowledge to new appl
Slide 18: Investing in People
Investing in People PWR recognises that our People are core to our future success. To deliver on current and future opportunities, PWR is investing in growing headcount to 450+ by December 2022 The People strategy includes: • Investment in Headcount – growth requires an ongoing investment in people
Slide 19: Investing in Capability and Capacity
Investing in Capability and Capacity Capital Investment – An ongoing targeted capital investment program is critical to stay at the forefront of technology developments and to ensure we have sufficient capacity for anticipated and planned growth Future capex will be focused on new facility fit out a
Slide 20: Investing in Staff Retention
Investing in Staff Retention Retaining skilled staff is crucial to achieving our growth plans. We invest in upskilling our staff and strive to provide a rewarding career path Our staff retention strategies include: • Short Term Incentive (STI) – the PWR STI program has been expanded in recent years
Slide 21: PWR is your development and innovation partner
For all thermal system requirements, PWR is your development and innovation partner to help design, develop, manufacture and test all cooling solutions by: “Engineering The Unfair Advantage”