Maas Group Holdings Ltd. · ASX:MGH
Maas — H1 2025 Earnings Presentation
43 slides from Maas's earnings presentation, Feb 20, 2025
Slide 1: 1H25 Results Presentation
For personal use only 1H25 RESULTS PRESENTATION
Slide 2: Agenda and Presenters
AGENDA PRESENTERS For personal use only BUSINESS STRATEGY & PERFORMANCE 3 – 12 BUSINESS UNIT REVIEWS 13 - 25 Wes Maas GROUP FINANCIAL RESULTS & REVIEW 26 – 34 CEO & Managing Director KEY MESSAGES 35 QUESTIONS 37 APPENDICES 38 – 43 Craig Bellamy Chief Financial Officer 2
Slide 3: Investment Framework
INVESTMENT FRAMEWORK Compounding capital while delivering DISCIPLINED FOCUS ON RETURN ON CAPITAL EMPLOYED (ROCE) attractive returns through the cycle Enabled by STRATEGIC FUNDAMENTALS For personal use only Maas Group Holdings Underlying EBITDA ($M) 245.0 207.3 215.0 163.1 245.0 Proven track record o
Slide 4: Values Driven
VALUES DRIVEN For personal use only 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 ac
Slide 5: Strategic East Coast Footprint
STRATEGIC EAST COAST FOOTPRINT ACQUISITIONS PROVIDE EXPANSION INTO HIGH GROWTH AND COMPLEMENTARY GEOGRAPHIES For personal use only WOLLONGONG HUB ✓ Access growth in key Wollongong centres and provide future option to Sydney market. ✓ Complementary with existing footprint and synergies expected post-
Slide 6: Victoria Footprint Strengthened
For personal use only VICTORIA FOOTPRINT Key Quarry STRENGTHENED Concrete Plant New Quarry Acquisition of Aerolite quarry further strengthens integrated position • Aerolite: 380 ha of freehold land in Western growth corridor with large scoria and basalt reserves. • Greater Melbourne footprint: 5 har
Slide 7: Acquisitions Update
ACQUISITIONS UPDATE CAPITAL ASPHALT • Settled 18 December 2024. • Acquisition of 75% interest in supplier of asphalt, spray seal and other For personal use only CONSTRUCTION MATERIALS related services operating in southern NSW and ACT. • Focused on road maintenance UPSTREAM services for government a
Slide 8: Financial Highlights
$95.0M $45.0M $90.7M FINANCIAL Underlying EBITDA In line with guidance, driven Construction Materials underlying EBITDA Capital Recycling Capital recycling exceeded HIGHLIGHTS by strong Construction Increase of 24% on pcp and target and above book value Materials contribution 42% of total EBITDA (cr
Slide 9: FY25 Guidance
• Guidance for FY25 inclusive of acquisitions is for Underlying EBITDA in the range of $215m - $245m For personal use only • Factors affecting the FY25 guidance and outlook include: • Acquisitions expected to contribute to 2H25 EBITDA in the range of $10m – $12m following settlement of Capital Aspha
Slide 10: Outlook and Priorities
OUTLOOK • Factors underpinning growth beyond FY25 include: For personal use only • Full year contribution from acquisitions (Capital Asphalt, Cleary Bros and Aerolite) including growth expected from identified synergies. • Construction Materials growth to continue and dominance in terms of earnings
Slide 11: Health & Safety
HEALTH & SAFETY Total Recordable Injury Frequency Rate (TRIFR) 18 For personal use only 15.9 Focus on proactive safety management has resulted in 15.8 16 15.4 15.3 15.3 decreasing injuries with half year LTIFR at 3.1, down from 4.3 at 30 June 2024. Reduced injuries have taken place as new businesses
Slide 12: People, Culture, Sustainability & Community Initiatives
PEOPLE, CULTURE SUSTAINABILITY & COMMUNITY For personal use only INITIATIVES • Ongoing commitment to ‘growing our own’ through supported external Low Carbon Offerings training and development opportunities as well as the MGH leadership • Dandy aims to reduce supplementary cementitious materials by 6
Slide 13: Business Unit Overview
BUSINESS UNIT OVERVIEW INDUSTRIAL OPERATING SEGMENTS REAL ESTATE OPERATING SEGMENTS For personal use only CONSTRUCTION CIVIL CONSTRUCTION MANUFACTURING RESIDENTIAL COMMERCIAL MATERIALS & HIRE & EQUIPMENT SALES REAL ESTATE REAL ESTATE • Quarries • Equipment hire • Equipment sales & • Residential deve
Slide 14: Construction Materials
For personal use only CONSTRUCTION MATERIALS Quarries · Concrete · Asphalt · Geotechnical Engineering · Logistics 14
Slide 15: Business Unit Performance: Construction Materials
BUSINESS UNIT PERFORMANCE 1H25 HIGHLIGHTS CONSTRUCTION MATERIALS • Revenue increased significantly on 1H24 driven by strong contributions from businesses acquired in FY24. • EBITDA growth in 1H25 of 24% driven by growth in quarry and $ Million (Underlying) 1H24 1H25 Movement concrete products. For p
Slide 16: Track Record of CM Growth
TRACK RECORD OF CM GROWTH TRACK RECORD OF CONSTRUCTION MATERIALS EBITDA GROWTH (A$M) For personal use only 2020 - 2023 2024 - 2025 • Expansion into geotechnical services and • Continued strategic expansion in KEY GROWTH DRIVERS materials testing complementary assets and geographies • Acquisition of
Slide 17: Civil Construction & Hire
For personal use only CIVIL CONSTRUCTION & HIRE Equipment Hire · Civil Construction · Electrical Transmission & Distribution 17
Slide 18: Business Unit Performance: Civil Construction and Hire
BUSINESS UNIT PERFORMANCE CIVIL CONSTRUCTION AND HIRE 1H25 HIGHLIGHTS • Revenue decreased on 1H25 driven by a reduction in Civil & plant hire revenues impacted by timing on key projects. $ Million (Underlying) 1H24 1H25 Movement For personal use only • EBITDA decreased by 47% as a result of Civil pr
Slide 19: Project Delays and Isolated Project Losses
1H25 For personal use only Project delays: Procurement for packages associated with renewable energy projects that were anticipated to contribute in 1H25 (offsetting the impact of completed projects) have taken longer than expected to commence. 1H delay rev Project Scope impact ($m) Status update NS
Slide 20: CC&H Pipeline Outlook
CC&H PIPELINE OUTLOOK • CC&H has been awarded initial civil works packages associated with the CWO REZ and works have commenced and will contribute to 2H25 and beyond. • CC&H is well positioned for a number of large renewable projects that are expected to commence over For personal use only the cour
Slide 21: Project Profile - Central West Orana REZ
PROJECT PROFILE - CENTRAL WEST ORANA – RENEWABLE ENERGY ZONE PROJECT DETAILS For personal use only • The REZ Network Infrastructure (RNI) will initially deliver 4.5GW and capacity to increase to 6GW by 2038 • Total Project value $ 3.2 billion1 • Energy Co – Infrastructure owner • ACEREZ (Acciona Cob
Slide 22: Residential Real Estate
For personal use only RESIDENTIAL REAL ESTATE Residential Developments · Home Building · Build-to-Rent · Land Lease Developments 22
Slide 23: Business Unit Performance: Residential Real Estate
1H25 HIGHLIGHTS BUSINESS UNIT PERFORMANCE • Revenue reduced on 1H24 driven by a reduction in completed home builds (1H25: 67 vs 1H24: 103) and prior period englobo RESIDENTIAL REAL ESTATE sale. • EBITDA excluding fair value gain decreased by 38% driven by an englobo sale in 1H24 contributing ~60% of
Slide 24: Commercial Real Estate
For personal use only COMMERCIAL REAL ESTATE Commercial Real Estate · Commercial Construction · Insurance · Building Materials 24
Slide 25: Business Unit Performance: Commercial Real Estate
BUSINESS UNIT PERFORMANCE 1H25 HIGHLIGHTS COMMERCIAL REAL ESTATE • Revenue decreased marginally on 1H24 driven by reduced Commercial Construction and Building Supplies. $ Million (Underlying) 1H24 1H25 Movement • EBITDA increased by 91% driven by an increase in fair value For personal use only Gross
Slide 26: Group Financial Results and Review
GROUP FINANCIAL RESULTS AND REVIEW For personal use only Craig Bellamy Chief Financial Officer 26
Slide 27: Group Underlying Profit & Loss
GROUP UNDERLYING PROFIT & LOSS • Revenue reduction of 1%. Key drivers of the decrease: $ Million (Underlying) 1H24 1H25 Revenue 456.7 454.9 • Decreased Civil Construction ($35.6m), Commercial Construction ($13.6m), Home Construction ($9.5m) and Building supplies revenue ($4.3m). For personal use onl
Slide 28: Expenses
EXPENSES For personal use only Movement • Operating expenses increased by 3%, driven by: $ Million 1H24 1H25 % Revenue 461.4 458.5 (1%) • $31.5m increase in expenses from businesses acquired in FY24. Materials & consumables1 224.5 223.7 1% • $2.1m increase from expected credit losses. Employee benef
Slide 29: Underlying Cash Flow
UNDERLYING CASH FLOW $ million (Underlying) 1H24 1H25 • Operating Cash Flow (pre-land inventory, FV gains, interest & tax) for 1H25 EBITDA 97.1 95.0 is $59.6m, representing a cash conversion of EBITDA ratio of 81% driven by For personal use only Fair value gains (FV gains) (8.8) (21.1) strong workin
Slide 30: Underlying Cashflow by Segment
UNDERLYING CASHFLOW BY SEGMENT Construction Civil Construction Residential Commercial Corporate & $ million (Underlying) Manufacturing Group For personal use only Materials & Hire Real Estate Real Estate Eliminations EBITDA 45.0 20.5 7.3 29.8 4.2 (11.8) 95.0 Fair value gains - - (0.6) (20.4) - - (21
Slide 31: Capital Investments
CAPITAL INVESTMENTS 1H25 Capital Investments $ million 1H24 1H25 • Acquisitions for 1H25 include the 75% acquisition of Capital Asphalt (Construction Materials). Construction materials acquisitions1 10.5 17.8 For personal use only • Commercial land acquisitions of $39.1m include an Industrial site i
Slide 32: Capital Management
CAPITAL MANAGEMENT Net Debt as at 31 December 20241 Banking Facilities as at 31 December 20241 $ Million 31 December2024 $ Million Limit Drawn Undrawn Cash Advance Facility 505.0 303.5 201.5 For personal use only Borrowings Current 59.8 Asset Finance Facility 80.0 3.1 76.9 Multi-option Facility4 75.
Slide 33: Group Balance Sheet
GROUP BALANCE SHEET Balance Sheet1 • Property, plant and equipment increased by $11.0m from 30 June 2024 driven primarily by 31 December the acquisition of Capital Asphalt. $ million 30 June 2024 2024 For personal use only • Investments decreased by $5.5m from 30 June 2024 driven by sale of investme
Slide 34: Capital Employed
CAPITAL EMPLOYED Capital Employed by Segment Capital Balance 31 Balance 30 Business Working Land Underlying 1H25 1H24 For personal use only $ million Other1 Employed December June 2024 Acquisitions capital Inventory EBIT ROCE2 ROCE2 During 1H25 2024 Civil Construction & Hire 253.2 - 3.4 - (1.1) 2.3
Slide 35: Key Messages
KEY MESSAGES For personal use only • 1H25 EBITDA of $95m in line with guidance driven by strong Construction Materials contribution. • Guidance for FY25 Underlying EBITDA of $215m – $245m inclusive of acquisitions. • Construction Materials delivered YoY growth of 24% and now 42% of overall EBITDA wi
Slide 36: 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 20 February 2025. It is in summary form and is not necessar
Slide 37: Questions
For personal use only &
Slide 38: Appendix
For personal use only APPENDIX
Slide 39: Group Statutory Profit & Loss
GROUP STATUTORY PROFIT & LOSS Statutory Net Profit after Tax (NPAT) Reconciliation of Statutory to Underlying NPAT For personal use only $ Million 1H24 1H25 $ Million 1H24 1H25 Revenue 467.6 470.3 Statutory NPAT attributable to owners of MGH 33.9 31.3 Other Revenue 5.1 3.7 Share based payments 1.1 0
Slide 40: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE Revenue ($m)1 EBITDA ($m)1 EBIT ($m)1 120 90 For personal use only 500 450 80 100 400 70 350 80 60 300 50 250 60 83 469 459 110 40 446 97 97 75 71 200 413 95 67 65 355 40 85 30 150 323 66 45 20 37 100 216 46 20 35 40 24 26 23 27 121 135 149 30 30 10 50 104 0 0 0 NPAT
Slide 41: Underlying Segment Performance
UNDERLYING SEGMENT PERFORMANCE Strong growth from Construction Materials, Commercial Real Estate and Manufacturing offsetting project delay headwinds in CC&H and timing of englobo sale in Residential Real Estate For personal use only Revenue ($m) EBITDA ($m) EBIT ($m) 600 479.3 482.4 120.0 103.6 106
Slide 42: Land Inventory
LAND INVENTORY • Residential land multi-year lag between englobo acquisition to land Land Inventory movement settlements as estates are developed. Land settlements to date made from land acquired pre-April 2021. $ million For personal use only Residential Commercial Elimination Group • Residential i
Slide 43: Capital Recycling
CAPITAL RECYCLING 1H25 Capital Recycling $ Million Proceeds 1H25 FV Gains & gain on sale1 For personal use only Commercial Properties2 74.5 5.0 Residential Built to rent disposals 16.2 - Total 90.7 5.0 2H25 Capital Recycling Update $ Million Proceeds 1H25 FV Gains & gain on sale1 Properties sold, to