Acrow Limited · ASX:ACF
Acrow — Acrow Formwork & Construction Services — FY2021 Earnings Presentation
36 slides from Acrow's earnings presentation, Aug 25, 2021
Slide 1: FY21 Full Year Results Presentation
For personal use only Acrow Formwork & Construction Services Limited FY21 Full Year Results Presentation 25 August 2021 Hassall Street, Parramatta
Slide 2: Important Notice
IMPORTANT NOTICE This presentation is 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 contained in this presentation was p
Slide 3: Key Highlights
For personal use only KEY HIGHLIGHTS Arden Street Railway Station, Victoria
Slide 4: Key Financials – FY21
For personal use only KEY FINANCIALS – FY211 EBITDA Pre-tax Profit NPAT REVENUE $24.3m $10.2m $8.7m +25% +35% +10% $105.7m EBITDA UNDERLYING FULL YEAR MARGIN EPS DIVIDEND + 22% 4.00cps 1.90cps 23.0% flat +81% +60bps Western Distributor, Sydney Gateway, Perth Metsquare - Dennison Street, Sydney SunMe
Slide 5: Key Achievements – FY21
For personal use only KEY ACHIEVEMENTS – FY21 Record Secured Melbourne Industrial National footprint Hire Contracts Formwork Scaffold - 6 states Momentum - 9 depots Revenue up 114%, secured Formwork revenue up 84% hire contracts up 51% - Secured hire contracts up - growing recognition in expansion i
Slide 6: Market & Business Overview
For personal use only MARKET & BUSINESS OVERVIEW University of Tasmania
Slide 7: State of the Markets
STATE OF THE MARKETS State Civil Commercial Industrial Residential For personal use only Queensland New South Wales Victoria South Australia Western Australia Tasmania Good Stable Soft FY21 Full Year Results | 7
Slide 8: Major Transport Infrastructure Projects - Aust
MAJOR TRANSPORT INFRASTRUCTURE PROJECTS - AUST Value of Work Done $Bn For personal use only Financial Year Source: Macromonitor February 2021 FY21 Full Year Results | 8
Slide 9: Formwork Revenue – By State + National
FORMWORK REVENUE – BY STATE + NATIONAL1. Queensland formwork revenue – ($m) Victoria formwork revenue – ($m) For personal use only 25.0 15.0 13.8 19.6 20.0 15.1 14.8 15.0 10.0 11.7 7.5 10.0 4.3 5.0 5.0 2.0 - - FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Major Transport Infrastructure Project Spend ($bn)
Slide 10: Acrow Equipment Hire Wins and Pipeline
ACROW EQUIPMENT HIRE WINS AND PIPELINE Hire Contracts Won ($m) ❑ Secured hire contracts up 33% in 2H21 and For personal use only 34% in FY21 on PCP ❑ Natform up 61% on PCP, Qld up 150% +33% 21.6 +34% ❑ Industrial Services up 54% on PCP - 39.3 successful push into NSW, SA, & Tas and new 17.6 16.3 29.
Slide 11: Strategic Pivot Continues
STRATEGIC PIVOT CONTINUES Group Sales Contribution ❑ Strategic pivot continues towards highly For personal use only engineered formwork/industrial services 100% 90% markets 80% 70% ❑ Significant exposure to publicly funded civil 60% infrastructure projects continues 50% 40% ❑ Formwork/Industrial Ser
Slide 12: Key Drivers for Formwork Success – Melbourne Metro Rail
KEY DRIVERS FOR FORMWORK SUCCESS Case Study – Melbourne Metro Rail (State Library Station) For personal use only Scope of Work Engaged to provide a self-propelled multipurpose gantry for forming of tie beams and roof beams Product ULMA MK Carriage System typically used to support tunnel formwork but
Slide 13: Key Drivers for Formwork Success – Duncan Street
KEY DRIVERS FOR FORMWORK SUCCESS Case Study – 31 Duncan Street For personal use only Scope of Work Design, supply and install of a variety of propping to allow Hutchinson builders to remove and strengthen columns of the existing carpark to support a new tower above it and maintain the existing carpa
Slide 14: Marquee Civil Projects Involvement
For personal use only MARQUEE CIVIL PROJECTS INVOLVEMENT Melbourne Metro Rail Sydney Metro Rail Melbourne Western Distributor Brisbane Cross River Rail Bruce Highway Upgrade - Qld Snowy Hydro 2.0 - NSW FY21 Full Year Results 14
Slide 15: Segmental Breakdown
SEGMENTAL BREAKDOWN $ % chg ❑ Group revenue up 22%, includes additional 4- Year end 30 June ($000) FY20 FY21 Mvt PCP months of Uni-span contribution to Formwork For personal use only Formwork 50,676 60,463 9,787 19% Industrial Services 10,159 21,719 11,560 114% and Industrial Services divisions Comm
Slide 16: Formwork Division
FORMWORK DIVISION $ % chg ❑ Strong Formwork division revenue growth, assisted Year end 30 June ($000) FY20 FY21 Mvt PCP by additional 4-months of Uni-span, increased For personal use only Formwork Hire 23,619 29,039 5,420 23% focus on product sales, Melbourne civil and Product Sales 24,227 29,898 5,
Slide 17: Industrial Services Division
INDUSTRIAL SERVICES DIVISION $ % chg ❑ Result reflects additional 4-months contribution Year end 30 June ($000) FY20 FY21 Mvt PCP of sales and earnings from Uni-span on PCP For personal use only Scaffold Hire 2,569 5,934 3,365 131% Labour Hire 4,300 9,115 4,815 112% ❑ Revenue and sales contribution
Slide 18: Industrial Services – Case Study
INDUSTRIAL SERVICES – CASE STUDY Mt Piper Power Station, NSW For personal use only Scope of Work Engaged to complete the scaffolding work for the shutdown of Mt Piper Power. Offering the full scaffold package including design, supply and install. At the peak, there will be up to 50 workers on site o
Slide 19: Commercial Scaffold Division
COMMERCIAL SCAFFOLD DIVISION $ % chg ❑ Revenue down 10%, sales contribution down Year end 30 June ($000) FY20 FY21 Mvt PCP 22% on PCP For personal use only Scaffold Hire 11,012 7,557 (3,454) -31% Labour & Cartage 14,567 16,004 1,436 10% ❑ Impacted by continued softness in NSW market, Residential 570
Slide 20: Major Contract Wins – Six Month to June
MAJOR CONTRACT WINS – SIX MONTH TO 30 JUNE Project Name Description Est. Value For personal use only MELBOURNE METRO RAIL Additional orders and revenue generated direct with CYP Design & Construction JV and associated subcontractors including Adcon Contracting and Caelli Constructions. New orders $2
Slide 21: Major Contract Wins – Six Month to June
MAJOR CONTRACT WINS – SIX MONTH TO 30 JUNE Project Name Description Est. Value For personal use only CROWS NEST UNDERGROUND RAIL Acrow contract direct with Wideform Constructions, working for principal contractor AW STATION DEVELOPMENT - SYDNEY Edwards for the supply of multiple formwork solutions i
Slide 22: Major Contract Wins – Six Month to June
MAJOR CONTRACT WINS – SIX MONTH TO 30 JUNE Project Name Description Est. Value For personal use only SNOWY HYDRO 2.0 Acrow contract direct with Future Generation, as the preferred contractor on site. Our scope of works includes the supply of labour and access scaffolding project wide to all areas on
Slide 23: Acrow Team and Culture
ACROW TEAM AND CULTURE ❑ Focus on succession planning For personal use only ❑ Developing depth of talent across all divisions – especially in engineering ❑ Focus on attracting best talent in the industry. Recent appointments: TEAM ▪ Brad Craven – General Manager Victoria ▪ Peter Bellden - National O
Slide 24: Financials
For personal use only FINANCIALS Melbourne Metro, State Library Station
Slide 25: Profit & Loss Statement
PROFIT & LOSS STATEMENT $ % chg Mvt PCP ❑ Sales revenue up 22% on PCP Year end 30 June ($000) FY20 FY21 For personal use only Sales 86,984 105,744 18,760 22% ❑ Sales contribution up 18% on PCP. Margin Total Contribution 51,976 61,424 9,448 18% improvement 2H21 due to larger Formwork Contribution Mar
Slide 26: Balance Sheet
BALANCE SHEET $ ❑ Net debt up by $7.9m due to payment of Year end 30 June ($000) FY20 FY21 Mvt deferred consideration for Natform/Uni-span For personal use only Cash 7,239 1,755 (5,484) Receivables 17,015 24,612 7,597 acquisitions, capital expenditure and dividend Inventory 5,578 8,959 3,381 payment
Slide 27: Cash Flow
CASH FLOW Operating Cash Profit ❑ Operating Cash Profit of $13.2m, +18% on PCP, impacted by tax payment commencement and For personal use only Year end 30 June ($000) FY18 FY19 FY20 FY21 excluding one-off IT refresh of circa. $1.3m Underlying EBITDA1 10,604 11,550 19,461 24,349 ❑ Cashflow from opera
Slide 28: Capital Expenditure
CAPITAL EXPENDITURE Growth, IT and Maintenance Capex ($’000) ❑ Total capex spend $16.2m For personal use only ❑ Growth capital expenditure has been elevated Maintenance IT/PP&E Growth & Non-hire due to the strategic pivot of the business. This is 16,200 offset by strategic sales of ex-hire gear tota
Slide 29: Strategy, Outlook and Priorities
For personal use only STRATEGY, OUTLOOK AND PRIORITIES Kogan Creek Shutdown, Chinchilla
Slide 30: Acrow Strategy
Continue to Execute on Strategy of Creating For personal use only ACROW STRATEGY Long-term Shareholder Value Earnings accretive Become the Become the leading leading Acquisitions Target High ROI primarily across Engineered Engineered Recruit train and retain the best Organic formwork Formwork Scaffo
Slide 31: Short-Medium Term Growth Opportunities
For personal use only SHORT-MEDIUM TERM GROWTH OPPORTUNITIES Industrial Formwork - Formwork - Services Sydney Queensland Expand into new markets Grow market share - Substantial infrastructure and territories across the new General Manager development programs East Coast of Australia appointed across
Slide 32: Outlook
OUTLOOK ❑ Targeting FY22 Revenue & EBITDA growth of 20%+, and Underlying NPAT and EPS growth of 40%+, based on capex For personal use only spend similar to FY21. ❑ Secured hire contracts - strong leading indicator for 1H22 trading activity +33%, 2H21 on PCP ❑ Capital raise of $10.5m in July 2021 str
Slide 33: Appendices
For personal use only APPENDICES Transcity – Legacy Way, Brisbane
Slide 34: Appendix – Cashflow
APPENDIX 1 – CASHFLOW $ Year end 30 June ($000) FY20 FY21 Mvt For personal use only Cash flows from operating activities Receipts from customers 87,707 92,546 4,839 Payments to suppliers and employees (71,418) (78,686) (7,268) Cash generated from operations 16,289 13,859 (2,429) Significant costs (3
Slide 35: Acrow Snapshot
ACROW SNAPSHOT A Leading Provider of Engineered Formwork Solutions and Scaffold Hire in Australia For personal use only ACF share price vs Small Ords (adj.) National Customers Employees Footprint 0.60 0.50 Acrow Small Ord. (adj) - 6 states 1,300 245 FTE 0.40 - 10 depots 0.30 0.20 0.10 Enterprise Rev
Slide 36: Uniquely positioned nationally: revenue by geography and depots
Uniquely positioned nationally to offer a full suite of formwork, scaffold, screening products and services across all segments of the construction and industrial maintenance markets Total Revenue by Geography (FY21) For personal use only 5%4% 5% 17% 44% QLD NSW VIC 25% SA WA Brisbane TAS Size:40,06
Acrow Formwork & Construction Services — FY2021 Earnings Presentation on 6ix