Maas Group Holdings Ltd. · ASX:MGH
Maas — Investor Presentation (July 2022)
35 slides from Maas's investor presentation, Jul 29, 2022
Slide 1: Equity Raising to Fund Growth and Acquisition Initiatives
EQUITY RAISING TO FUND GROWTH AND ACQUISITION INITIATIVES 29 July 2022
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by, and is the sole responsibility of, Maas Group Holdings Ltd ACN 632 994 542 (MGH or the Company) and is dated 29 July 2022. The Company is under no obligation to update or keep the information represented in this presentation current past this date.
Slide 3: Our Vision
OUR VISION Delivering market leading property, construction and infrastructure solutions. 3
Slide 4: Our Values
OUR VALUES Trust Teamwork Only earnt through action Focused on safety and solutions Commitment to customers Leadership Deliver on commitments The courage to strive for excellence Candour Ownership Empowered to get it done and be Transparent conversations to get it right accountable for the results 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY FY22 Preliminary Results and FY23 Earnings Outlook Equity Raise Overview FY22 Preliminary Unaudited Results at the top end of Prior Guidance ▪ MGH to raise up to $105m via a non-underwritten Placement, comprising an Institutional Placement of up ▪ FY22 Preliminary Unaudited pro for
Slide 6: Highly Successful FY22 Delivering on All Key Objectives for MGH
HIGHLY SUCCESSFUL FY22 DELIVERING ON ALL KEY OBJECTIVES FOR MGH March 2022 May 2022 July 2022 September - October 2021 • Additional 2,300+ residential • Expansion of the Civil and • Acquisition of Schwarz December 2021 lots with the acquisition of an Construction Hire segment with Excavations, expan
Slide 7: FY22 Preliminary Unaudited Result
FY22 PRELIMINARY UNAUDITED RESULT MGH achieved FY22 preliminary unaudited pro forma1 EBITDA of $125.1m which is at the top end of its previously provided guidance range ▪ FY22 results are preliminary, unaudited results for the financial year ended 30 June 2022. These figures are subject to adjustmen
Slide 8: FY23 Earnings Outlook: Significant Growth Expected
FY23 EARNINGS OUTLOOK: SIGNIFICANT GROWTH EXPECTED MGH expects pro forma1 FY23 EBITDA in the range of $180m to $200m, representing year-on-year growth of 44% to 60% ▪ Key budget assumptions underpinning the FY23 guidance include: Pro Forma Group EBITDA ($ Million) ▪ Full year contribution from recen
Slide 9: Business Acquisitions
BUSINESS ACQUISITIONS MGH continues to pursue strategic acquisitions to provide a platform for long-term earnings growth FY22 Acquisitions Pending Acquisitions ▪ A number of acquisitions were completed in FY22, contributing ~$30m ▪ MGH has executed non-binding term sheets for the acquisition of an p
Slide 10: Real Estate Acquisitions
REAL ESTATE ACQUISITIONS Continued investment in our residential land portfolio and commercial and industrial developments Residential Commercial ▪ FY22 acquisitions add in excess of 3,300 lots (70% growth) to the ▪ A number of strategic commercial and industrial developments were future pipeline ac
Slide 11: Pro Forma Balance Sheet and Liquidity
PRO FORMA BALANCE SHEET AND LIQUIDITY MGH has a strong balance sheet that will continue to support its growth strategy and allow the Company to execute on its near-term acquisition initiatives Pro Forma Banking Facilities as at 30 June 2022 $ Million Limit Drawn Undrawn ▪ Credit approval received to
Slide 12: Growth Initiatives & Outlook
GROWTH INITIATIVES & OUTLOOK Construction Materials Civil Construction and Hire ▪ Continuous cost reduction through ▪ Growth expected to be supported by lean quarry programme contract wins and increased demand from the Real Estate business unit ▪ Leverage transport fleet to services hubs most effect
Slide 13: Equity Raising Summary
EQUITY RAISING SUMMARY MGH to raise up to $105m by way of a Placement and up to $10m through a Share Purchase Plan (the “Offer”) ▪ MGH to raise up to $105m via a Placement comprising: ▪ Institutional Placement to raise $35m, non-underwritten (“Institutional Placement”) ▪ A Placement to certain Direc
Slide 14: Sources and Uses of Funds
SOURCES AND USES OF FUNDS The Offer will provide additional balance sheet flexibility to continue to pursue growth opportunities Sources and uses of funds ($ Million)1 $ Million Sources of funds Institutional Placement 35.0 Founder and Management Placement 70.0 Total sources of funds 105.0 Uses of f
Slide 15: Timetable
TIMETABLE1 Event Date Trading halt Thursday, 28 July 2022 Institutional Placement bookbuild Thursday, 28 July 2022 Record date for SPP 7.00pm (AEST), Thursday, 28 July 2022 Announcement of outcome of Institutional Placement and resume normal trading Friday, 29 July 2022 Settlement of New Shares issu
Slide 16: Appendices: Business Unit Overview
APPENDICES BUSINESS UNIT OVERVIEW
Slide 17: Construction Materials
CONSTRUCTION MATERIALS REGIONAL QUARRIES REDIMIX CONCRETE GEO-TECH LOGISTICS
Slide 18: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22: Bedford Weir Quarry Redimix Batching Facility, Dubbo ▪ Construction Materials Preliminary Unaudited FY22 EBITDA delivered strong growth on prior year despite record rain events ▪ 31 strategically located quarries with 25 in operation and planning and deve
Slide 19: Civil Construction & Hire
CIVIL CONSTRUCTION & HIRE CIVIL EQUIPMENT HIRE ELECTRICAL
Slide 20: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22: ▪ Outlook remains strong with significant pipeline of infrastructure and renewable energy projects continuing to come online over the next 3 - 5 years ▪ MGH’s capabilities continued to expand with targeted acquisitions of companies and talent ▪ Strong pip
Slide 21: Real Estate
REAL ESTATE RESIDENTIAL HOME BUILDING BUILD-TO-RENT LEASING DEVELOPMENT COMMERCIAL COMMERCIAL BUILDING MATERIALS DEVELOPMENTS CONSTRUCTION
Slide 22: Business Unit Performance
BUSINESS UNIT PERFORMANCE Residential Highlights – FY22: ▪ Average regional land sale price up 25% from CY20 ▪ Vertically integrated construction capability has proven to MGH Display Village opened in October 2021 – Southlakes Estate, Dubbo deliver volume of residential lots at market velocity ▪ 70%
Slide 23: Business Unit Performance
BUSINESS UNIT PERFORMANCE FY23 Outlook ▪ FY23 forecast includes 360-400 lot settlements1 (versus 270 settlements1 in FY22) and ~250 house starts ▪ Diversity in lot sizes and use to be released to meet the market Forecast Residential Lots Settled for affordability and lifestyle 500 ▪ New standard hou
Slide 24: Business Unit Performance
BUSINESS UNIT PERFORMANCE Commercial Highlights – FY22: ▪ Acquisition of Spacey added storage assets and development pipeline. 528 units under operations. Price increases have been implemented across the board and targeted expansion into Goulburn and new sites at Port Stephens, Kempsey, Orange and D
Slide 25: Manufacturing
MANUFACTURING JACON TOLL MANUFACTURING VMS
Slide 26: Business Unit Performance
BUSINESS UNIT PERFORMANCE Highlights – FY22: ▪ Despite global impact of COVID the segment delivered positive EBITDA contribution ▪ Increased costs incurred for housing Vietnamese employees in a government enforced workplace COVID bubble ▪ Downstream supply chain was not insulated from global delays
Slide 27: Appendix: Key Risks
APPENDIX KEY RISKS MAAS
Slide 28: Managing Risks
MANAGING RISKS Interest Rates & Inflation1 Real Estate Asset Value2 Demand for skilled Labour ▪ The Reserve Bank of Australia raised the cash ▪ As interest rates move higher and affordability ▪ The seasonally adjusted unemployment rate rate by 50 bps to 1.35% during its July 2022 pressure mount, the
Slide 29: Key Risks
KEY RISKS ▪ MAAS Group’s employees are at risk of workplace accidents and incidents given the nature of the industries in which MAAS Group operates. ▪ A serious accident may occur, causing damage, injury or death, which may have operational implications for MAAS Group and may have a material adverse
Slide 30: Key Risks
KEY RISKS ▪ The Australian residential property market can be cyclical and risk is always present when land is acquired for future development. This may impact the timeline for completion of sales or whether sales can be completed at all which may affect MAAS Group’s revenue, profitability and growt
Slide 31: Key Risks
KEY RISKS ▪ The Company’s activities in Australia have been impacted by recent significant rain., These weather events inhibit or limit the Company’s ability to access mine and building sites, leading to reduced activity levels. Continued significant rain may also cause the Wet Weather Company to in
Slide 32: Key Risks
KEY RISKS ▪ Whilst MAAS Group seeks to maintain insurance coverage that is consistent with industry practice, there is a risk that coverage may not be available when required, at commercially acceptable premiums, or at all. Inability to ▪ In addition, any claim under MAAS Group’s insurance policies
Slide 33: Appendix: Selling Restrictions
APPENDIX SELLING RESTRICTIONS
Slide 34: Selling Restrictions
SELLING RESTRICTIONS Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pursuant to
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