Slide 1: FY22 Interim Results (unaudited)
FY22 Interim Results (unaudited) 9 February 2022
Slide 2: Disclaimer
Disclaimer This presentation is based on unaudited interim results and provided for information purposes only. The Appendix 4D (audited) will be lodged with the ASX by 28 February 2022. The information in this presentation is in a summary form, does not purport to be complete and is not intended to
Slide 3: Key Highlights
Rozelle Vent Shafts, Sydney, NSW Key Highlights
Slide 4: Key Financials Metrics (underlying)
Key Financials Metrics (underlying) Revenue - up 38% EBITDA - up 51% $m $m 80 69 20 16.7 60 50 15 11.1 38 7.9 40 10 20 5 0 0 1H20 1H21 1H22 1H20 1H21 1H22 NPAT - up 118% EPS - up 94% $m 10.0 8.0 ₵ 8.0 4.0 3.28 6.0 3.0 3.7 4.0 2.1 1.69 2.0 1.19 2.0 1.0 0.0 1H20 1H21 1H22 0.0 1H20 1H21 1H22 ROE - up 2
Slide 5: Key Achievements - 1H22
Key Achievements -1H22 Record Secured Strong Organic Industrial National footprint Hire Contracts Growth Services - 6 states - 9 depots Revenue up 158% YoY to Secured hire contracts up Record results achieved $21.3m. Sales contribution 33% YoY to $23.4m from organic growth. No up 76% impact from acq
Slide 6: Market & Business Overview
Parkview, Granville Place, Granville NSW Market & Business Overview
Slide 7: Major Transport Infrastructure Projects - Aust
Major Transport Infrastructure Projects - Aust Projected Major Transport Infra Spend ($bn) Major Contributing Projects for Acrow Project Description FY22 25.0 Projected 23.3 22.6 Revenue The $1 billion Section D: Woondum to Curra (C2CD) 19.7 Bruce Highway - 20.0 project is a new 26km, 4-lane divided
Slide 8: Formwork Revenue by State & National
Formwork Revenue by State & National Queensland formwork revenue – ($m) Victoria formwork revenue – ($m) 14.0 12.8 8.0 7.2 6.7 12.0 9.9 10.0 6.0 8.0 6.4 4.0 5.8 2.9 6.0 1.6 4.0 2.0 2.0 - - H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY19 H1 FY20 H1 FY21 H1 FY22 National formwork revenue – ($m) 40.0 35.1 30.1
Slide 9: Acrow Equipment Hire Wins and Pipeline
Acrow Equipment Hire Wins and Pipeline Hire Contracts Won ($m) ➢ Record hire contracts won 1H22 up 33% YoY +33% 23.4 ➢ Formwork & commercial scaffold strong 21.6 ➢ Natform flat 16.3 17.6 ➢ Pipeline 1H22 up 13.5% 13.4 ➢ Formwork ~90% of pipeline 10.0 ➢ Does not incorporate Industrial Services 2H19 1H
Slide 10: Pivoted to Engineered Systems and Services
Pivoted to Engineered Systems and Services Client Priorities 15% ➢ Time Saving Engineered Solutions ➢ Product Quality 43% ➢ Reputation Engineered 57% ➢ Safety Systems & Services FY17 Benefits Commercial 1H22 85% ➢ Exposure to Gov’t funded civil Scaffold projects ➢ Strong civil construction tailwinds
Slide 11: Marquee Civil Projects
Marquee Civil Projects Melbourne Metro Rail Melbourne Western Distributor Brisbane Cross River Rail Bruce Highway Upgrade - Qld Snowy Hydro 2.0 - NSW FY22 Interim Results (unaudited) 11
Slide 12: Engineering Expertise: Case Study – Western Distributor
Engineering Expertise Case Study – Western Distributor Scope of Work Design and supply a bespoke formwork table system to complete the column and headstock pours on the 30m+ span bridge. Product The engineering team designed a custom steel system to suit the unique headstock which only had a singula
Slide 13: Engineering Expertise: Case Study – Rozelle Vent Shafts
Engineering Expertise Case Study – Rozelle Vent Shafts Scope of Work Acrow was engaged by Seadar Constructions to provide a climbing formwork system for the three vent shafts on the Rozelle Interchange Project. As the three stacks were different radiuses, a cost-effective solution was required that
Slide 14: Engineering Expertise: Case Study - The Landmark
Engineering Expertise Case Study - The Landmark Scope of Work Design and provide an effective edge protection solution to the 44- level tower’s curved slab edge that tapered in and out as it ascended. Products/Systems utilised on site − Over 2,400m2 of Natform Screen System − Natform Hydraulic Unit
Slide 15: Supply Chain Management
Supply Chain Management Issues Remediation ➢ Extended delivery times on ➢ Established global procurement of new equipment orders due to high quality used equipment to logistics delays and raw expedite delivery times and material availability minimise cost ➢ Shortage of shipping ➢ Bypassing intermedi
Slide 16: Segmental Breakdown
Segmental Breakdown $ % chg Year end 30 June ($000) 1H 22 1H 21 Mvt PCP ➢ Total revenue up 38% Formwork 35,089 30,097 4,991 17% • Organic growth Industrial Services 21,328 8,271 13,057 158% Commercial Scaffold 12,899 12,040 858 7% • Growth across all divisions Total Revenue 69,315 50,408 18,907 38%
Slide 17: Sales Contribution Bridge - 1H21 to 1H22
Sales Contribution Bridge - 1H21 to 1H22 17 FY22 Interim Results (unaudited)
Slide 18: Formwork Division
Formwork Division Year end 30 June ($000) 1H22 1H21 $ Mvt % chg PCP ➢ Consistent growth trend over four years Formwork Hire Product Sales 19,161 15,087 13,450 15,299 5,712 42% ➢ Formwork revenue up 17% -213 -1% Cartage 841 1,349 -507 -38% • Hire revenue up 42%, Total Revenue 35,089 30,097 4,991 17%
Slide 19: Industrial Services
Industrial Services Year end 30 June ($000) 1H22 1H21 $ Mvt % chg PCP ➢ Revenue up 158% Scaffold Hire 3,303 2,367 936 40% • Organic growth from expansion into new Labour Hire 9,634 3,606 6,028 167% states and markets Product Sales 8,391 2,298 6,093 265% • Labour hire benefiting from revenue Total Re
Slide 20: Commercial Scaffold
Commercial Scaffold $ % chg Year end 30 June ($000) 1H22 1H21 Mvt PCP ➢ Revenue up 7% Scaffold Hire 4,462 4,398 64 1% Labour & Cartage 8,437 7,642 795 10% ➢ Sales contribution down 3% and margin Total Revenue 12,899 12,040 858 7% down Scaffold Hire 4,425 4,398 27 1% ➢ Increased focus on dry hire Lab
Slide 21: Key Contract Wins
Key Contract Wins* Project Division Description Est. Value SNOWY HYDRO 2.0 - NSW Industrial Services Acrow contract direct with Future Generation for the provision of services in relation to labour, hire and sale of Quickstage scaffolding on the early stage works on the accommodation and training ce
Slide 22: Key Contract Wins (cont’)
Key Contract Wins (cont’) Project Division Description Est. Value OLYMPIC DAM - ACID TANKS - Industrial Services Acrow contract direct with Monadelphous to supply and install 120t Ringlock SA scaffold for perimeter access to two tanks to complete paint and blast scope of $600K works. Commencing Feb
Slide 23: Financials
Caboolture Hospital Redevelopment, QLD Financials
Slide 24: Profit & Loss
Profit & Loss $ % chg ➢ Sales revenue up 38% Year end 30 June ($000) 1H22 1H21 Mvt PCP Sales 69,315 50,408 18,907 38% ➢ Sales contribution up 30%. Margin down Total Contribution 37,623 28,905 8,719 30% 3%pts due to change in mix and lower Contribution Margin* 54.3% 57.3% -3% Products sales margins E
Slide 25: Balance Sheet
Balance Sheet $ Year end 30 June ($000) 1H22 FY21 Mvt ➢ Net debt up by $6.4m due to payment of Cash 1,731 1,755 -24 deferred consideration for Uni-span Receivables 25,764 24,612 1,153 acquisition, capital expenditure and dividend Inventory 12,507 8,959 3,549 payments Prepayments and Others 7,222 4,3
Slide 26: Cash Flow
Cash Flow Operating Cash Profit Year end 30 June ($000) 1H19 1H20 1H21 1H22 ➢ Operating Cash Profit of $10.2m, +84% on PCP Underlying EBITDA 1 6,736 7,861 11,095 16,715 ➢ Cashflow from operations $7.4m2 Leases Underlying EBITDA - Pre AASB -2,312 -2,457 -3,379 ➢ Tax paid nil 16 6,736 5,549 8,638 13,3
Slide 27: Capital Expenditure
Capital Expenditure Growth, IT and Maintenance Capex ($’000) ➢ Total 1H22 capex spend $13.1m Maintenance IT,PP&E Growth & Non-hire ➢ Growth capital expenditure has been 13,115 elevated due to the strategic growth initiatives in Industrial Services and further growth in Formwork ➢ Maintenance capex i
Slide 28: Strategy, Opportunities and Outlook
Bruce Highway, Cooroy to Curra, Qld Strategy, Opportunities and Outlook
Slide 29: Acrow Strategy - unchanged
Acrow Strategy - unchanged 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 Scaffold Growth solutions but may management and Sales & Hire Solutions engineering oppo
Slide 30: People & Culture
People & Culture ➢ Focus on succession planning ➢ Developing depth of talent across all divisions –especially in engineering ➢ Focus on attracting best talent in the industry. Recent appointments: • Brad Craven – General Manager Victoria • Peter Bellden - National Operations Manager Industrial Servi
Slide 31: Short-Medium Term Opportunities
Short-Medium Term Opportunities ➢ Industrial Services - Continue to expand revenue base on the East Coast. Push hard into SA and WA markets via targeted new contract wins and potential M&A activity ➢ NSW Formwork - Continue to grow market share and overall revenues with specific focus on major proje
Slide 32: Outlook
Outlook ➢ New FY22 guidance and change on FY21 as follows: Metric FY22 Guidance FY22 Guidance %chg on Current Previous FY21* Revenue $140 - $145m $130 - $135m up 34% EBITDA $33.5 - $34.5m $31.5 - $32.5m up 42% NPAT(underlying) $15.5 - $16.5m $13.8 – $14.5m up 84% EPS 6.2 - 6.5₵ 5.8 – 6.2₵ up 59% ➢ S
Slide 33: Appendices
Cross River Rail, Cross Passage Brisbane , Qld Appendices
Slide 34: Cashflow Statement
Cashflow Statement Year end 30 June ($000) 1H22 1H21 Cash flows from operating activities Receipts from customers 71,348 50,097 Payments to suppliers and employees (66,389) (43,402) Cash generated from operations 4,960 6,695 Significant costs (429) (567) Finance income - - Income tax paid - (556) Ne
Slide 35: Acrow Snapshot
Acrow Snapshot ACF share price vs Small Ords (adj.) National Customers Employees Footprint 0.60 0.50 Acrow - 6 states 1,300 280FTE 0.40 - 10 depots 0.30 0.20 Enterprise Revenue2. Replacement 0.10 Value1. Value 0.00 $143m >$140m Jul/18 Jul/19 Jul/20 Jul/21 Apr/18 Apr/19 Apr/20 Apr/21 Jan/19 Jan/20 Ja
Slide 36: Acrow National Footprint
Acrow National Footprint Total Revenue by Geography (1H22) 6% 5% 5% 14% QLD 55% NSW 15% VIC Tas SA Brisbane WA Size:40,063m2 Asset Focus: F,CS, IS, Scr Sydney Perth Size:35,563m2 Size:17,600m2 Asset Focus: F,CS, IS, Scr Asset Focus: F & Scr Adelaide Size:14,820m2 Melbourne Asset Focus: F,CS,IS, Scr