Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 24 August 2023 REDOX LIMITED (RDX.ASX) 1
Slide 2: Presenting and Agenda
Presenting Raimond Coneliano CEO and Managing Director Agenda • Corporate Snapshot • FY23 Financial Results • Outlook • Q&A Roy Brown Finance Director 2
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT Raimond Coneliano CEO and Managing Director 3
Slide 4: Corporate overview
Corporate overview Company Overview Market Position Redox was established by the Coneliano Ranked largest family in 1965 and is now a leading chemical distributor in chemical and ingredients distributor Australia1 active in more than 1,000 specialty and commodity products. 12th in APAC1 34th in the
Slide 5: Sustainable business model
Sustainable business model Geographical expansion Minimal reliance (particularly the US), on any single and strategically and industry, 6,400+ 4,600+ financially prudent inorganic growth Geographical expansion and Diversification customer, supplier or ACTIVE CUSTOMERS SKU’S and resilience opportunit
Slide 6: Diversified and highly resilient sales model
Diversified and highly resilient sales model Sales by industry sectors (%: FY23) 5% Human Health & Nutrition 7% 25% Crop Production & Protection 7% • Largest customer represents ~2.1% of FY23 sales Plastics, Rubber & Foam Industrial 10% • Top 10 customers represent ~14.0% of FY23 sales Animal Health
Slide 7: Growing international presence with focus on North America
Growing international presence with focus on North America Geographical expansion leverages: • existing knowledge • supplier relationships • customer relationships • product portfolio Sales by geographical jurisdiction (%: FY23) 1% 8% Australia 6% New Zealand United States 85% Malaysia 7
Slide 8: Corporate Social Responsibility
Corporate Social Responsibility Redox aims to be a good corporate citizen embracing positive societal and industry engagement, responsible operation and practical initiatives Silver Medal for Sustainability received from Ecovadis in 2023 Redox is committed to ethical sourcing, seeks to adhere to the
Slide 9: FY23 Results Summary
FY23 RESULTS SUMMARY Roy Brown Finance Director 9
Slide 10: P&L overview
P&L overview FY23 Change vs Change year 16.2% Revenue growth, driven by strong growth FY22 Actual $m Prospectus $m FY23 Actual $m Prospectus % on year % in ANZ and the US Revenue 1,082 1,244 1,258 1.1% 16.2% $141.4m Pro forma EBITDAFX, 5.2% above FY22, with Gross profit Pro forma EBITDAFX1 243.8 134
Slide 11: Pro forma EBITDAFX bridge FY22 to FY23
Pro forma EBITDAFX bridge FY22 to FY23 141.4 The profit impact of sales growth in FY23 has more than offset the decline in gross margins and increases in variable operating costs 11
Slide 12: Revenue and gross profit
Revenue and gross profit Change year on FY22 Actual FY23 Actual year 15.3% Revenue growth in core ANZ market driven by share $m $m % Revenue – Australia 926.9 1,063.3 14.8% of wallet gains and product portfolio expansion Revenue – New Zealand 89.4 107.1 19.8% 42.0% Revenue growth in US driven by new
Slide 13: Operating costs review
Operating costs review Change 4.8% Increase in admin expenses due to salary FY22 Actual $m FY23 Prospectus $m FY23 Actual Change vs Prospectus $m % year on year % increases and growth in headcount Administration expenses 58.1 61.8 60.9 1.5% (4.8%) 18.9% Increase in logistics costs due to sales Distr
Slide 14: Operating margins
Operating margins Pro forma EBITDAFX margin (%) Pro forma EBITFX1 margin (%) 11.7 14 12 12.4 10.8 11.2 12 10 10.2 10.6 • Operating 10 8 margins up vs 8 6 6 Prospectus but 4 4 2 2 down vs pcp 0 0 due to gross FY22 Prospectus FY23 FY22 Prospectus FY23 Proforma EBITDAFX margin % Proforma EBITFX margin
Slide 15: Cash flow
Cash flow Change FY22 FY23 FY23 Change vs $134.1M Actual $m Prospectus $m Actual $m Prospectus % year on year % Underlying cash before financing, representing a free cash flow conversion3 of 93.7% Underlying cash from operations 1 (47.5) 125.9 136.9 8.7% n/a $33.2M Working capital inflow as inventor
Slide 16: Balance sheet management
Balance sheet management $81.7m Pro forma cash position (adjusting debt to FY22 Actual $M FY23 Prospectus $M FY23 Actual $M incorporate IPO proceeds) Net debt 181.4 184.7 145.7 1.0x Net debt interest Pro forma net debt / (cash) 1 5.7 n/a 9.8 6.2 11.8 (81.7) Core leverage ratio, reduced to 0.0x in Ju
Slide 17: Outlook
OUTLOOK Raimond Coneliano CEO and Managing Director 17
Slide 18: FY24 guidance and dividend policy
FY24 guidance and dividend policy FY24 guidance • Redox reaffirms its FY24 Prospectus guidance FY24 Forecast $ millions Growth vs • Macroeconomic conditions remain uncertain FY23 (%) • US sales forecast to exceed $100m Revenue 1,328 5.6% • Small acquisition expected to be completed in Gross Profit 2
Slide 19: Strategic Pillars
Strategic Pillars Redox has delivered on its objectives during 2023 and is Sales ($m) continuing to focus on its winning 1,200 strategy 1,000 800 11.9% 30 year CAGR 600 400 200 Gain Market Expand Supply Chain Leverage Engage Our Share Geographically Excellence Technology People - 1993 1998 2003 2008
Slide 20: Summary
Summary Highly diverse and resilient business model with minimal concentration risk 16.2% revenue growth in FY23 and long term (30 year) compound annual growth rate of 11.9% Strong operating margins and ROIC Net working capital has unwound from previous highs Strong cash generation and flexible bala
Slide 21: Q&A
Q&A Raimond Coneliano CEO and Managing Director Roy Brown Finance Director 21
Slide 22: Supplementary Information
Supplementary Information 22
Slide 23: Redox timeline
Redox timeline 1965 1987 1994 2012 2012 2015 2016 2017 2019 2023 Established offices in Perth office Auckland Acquisition Launch Redox Passed Acquisition Acquisition US Expansion North Sydney under the established office of Bribros of assists $500m of P.D. of C Pyke continues name of C&K Industrial
Slide 24: P&L
P&L FY22 Actual FY23 Prospectus FY23 Actual $m $m $m Revenue 1,081.8 1,244.1 1,257.5 COGS (838.0) (988.8) (995.5) Gross profit 243.8 255.2 262.0 Underlying operating expenses excl depreciation (108.1) (118.7) (119.0) Pro forma expense adjustments (1.4) (1.7) (1.7) Pro forma EBITDAFX 134.3 134.7 141.
Slide 25: Reconciliation of EBITDA to pro forma EBITDAFX and NPAT
Reconciliation of EBITDA to pro forma EBITDAFX and NPAT pro forma NPATFX FY22 FY23 FY23 Actual Prospectus Actual $m $m $m FY23 FY22 Actual FY23 Actual Prospectus NPAT 88.0 75.1 80.7 $m $m $m Statutory tax add back 35.8 32.2 35.3 EBITDA 138.3 125.8 136.8 One-off ASX listing costs 1.5 1.1 2.1 One–off
Slide 26: Long term revenue growth
Long term revenue growth Sales ($m) Growth rate 1,200 30 Year CAGR 11.9% 1,000 20 Year CAGR 10.3% 800 600 10 Year CAGR 12.0% 400 5 Year CAGR 14.0% 200 3 Year 20.5% - 2008 1993 1998 2003 2013 2018 2023 26
Slide 27: Strong and experienced Board & management team
Strong and experienced Board & management team Raimond Coneliano Renato Coneliano Ian Campbell Mary Verschuer Garry Wayling Chief Executive Officer & MD Director / Marketing Manager Chairman Non-Executive Director Non-Executive Director 27 years tenure 43 years tenure 14 years tenure Appointed June
Slide 28: Strong and experienced Board & management team
Strong and experienced Board & management team Richard Coneliano Ken Perrins Roy Brown Mark Shoukry Kim Yap Nick Osmo Erika Jasarevic Chief Operating Officer Industry Group Manager Finance Director Senior Business Manager Chief Financial Officer CEO USA General Counsel 28 years tenure 26 years tenur
Slide 29: Disclaimer
Disclaimer Important notices This Presentation has been prepared by Redox Limited (ABN 92 000 762 345) (“RDX” or “Company”). Summary information This Presentation contains summary information about RDX and its activities current as at 30 June 2023. The information in the Presentation is of a general
Slide 30: Redox
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