Slide 1: 1H FY23 Results Presentation
Acrow Formwork and Construction Services Ltd (ASX:ACF) 1H FY23 RESULTS Presentation Steven Boland - CEO Andrew Crowther - CFO Matt Caporella - COO We help build Australia smarter. ae: tro Tunnel, Melbourne, VIC
Slide 2: Disclaimer
DISCLAIMER This presentation is based on unaudited final results and 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 conta
Slide 3: Momentum Continues
MOMENTUM CONTINUES | Aaa Record financial results is aprrecteecey pa 1) Organic growth initiatives continue Record hire contract wins/pipeline ROE 26.1% - more than doubles over 4 years Upgraded FY23 earnings guidance Rozelle interchange, NSW
Slide 4: Our Competitive Advantages
OUR COMPETITIVE ADVANTAGES ENGINEERING EXPERTISE & SOLUTIONS GEOGRAPHIC FOOTPRINT
Slide 5: FY23 Highlights
OC | FY23 HIGHLIGHTS Steven Boland, MD & CEO es ; bourne, VIC
Slide 6: Key Achievements 1H FY23
KEY ACHIEVEMENTS 1H FY23 AcROW | ma Hee ee RECORD REVENUE AND RETURN ON EQUITY RECORD SECURED HIRE PROFITS CONTINUE CONTRACTS/PIPELINE Revenue up 14% to $79.2m PCP ROE more than doubled over 4 years Hire contracts secured up 28% YoY EBITDA up 38% to $23m PCP to 26.1% Pipeline up 34% YoY Underlying N
Slide 7: Safety Is Our Priority
SAFETY IS OUR PRIORITY ZERO HARM IMPROVEMENT 25 58% IMPROVEMENT TRIFR FY22 TRIFRIHFY23 TOTAL RECORDABLE INJURIES 79% IMPROVEMENT Fv22 THFY23 LLost Time Injury Frequency Rate LTIFR' rs Fy22 THFY23 LOST TIME INJURIES ZERO Fy22 THFY23
Slide 8: Market & Business Overview
Slide 9: Key Financial Metrics 1H FY23
KEY FINANCIAL METRICS 1H FY23' ACROW | $m TH FY22 REVENUE $79.2 14% W 1H FY23 NPAT (Stat.) SI . tH Fv22 EPS ug 47 6 4 38 cps || 44% 5 : | THFY22 qHFY23 1.All metrics are underlying unless otherwise stated. DPS $m 10 EBITDA $23.0 A | 38% oe | TH FY22 I FY23 NPAT $122 $8.0 ia 1 TH FY22 wWFV23 ROE Ve a
Slide 10: Return on Equity
RETURN ON EQUITY EFFICIENT DEPLOYMENT OF GROWTH CAPITAL 30% 20% 16.4% 10.2% 10% 0% 1H FY20 1H FY21 19.2% 1H FY22 26.1% 1H FY23 10
Slide 11: Hire Revenue Growth - By Half Year
HIRE REVENUE GROWTH - BY HALF YEAR 'ACROW | CAPEX IN HIRE EQUIPMENT DRIVING GROWTH 40 36.2 29.7 26.9 22.3 20 20.3 20.2 $m 16.9 : | (0) 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 2H FY22 1H FY23
Slide 12: Sales Contribution Bridge - 3 Years
SALES CONTRIBUTION BRIDGE - 3YRS GROWTH CAPEX IN HIRE EQUIPMENT DRIVING GROWTH $m Sales contribution 1H FY20 Equipment hire represents 77% of growth in sales contribution Hire Product 1.2 Labour. cartage & other Sales contribution 1H F¥23 12
Slide 13: Major Transport Infrastructure Projects - Australia
MAJOR TRANSPORT INFRASTRUCTURE PROJECTS - AUSTRALIA PROJECTED MAJOR TRANSPORT INFRA SPEND (SBILLION) new MotoRait ghey Upgrade ort Ineuces ith 0 value of work done areater than $200 mitionin ony shale year Source: Macromonitor, January 2023 ncn | UPCOMING MAJOR TRANSPORT INFRA PROJECTS Gf 8S © Subur
Slide 14: Formwork Revenue by State & National
FORMWORK REVENUE BY STATE & NATIONAL PacROW [J QLD FORMWORK REVENUE VIC FORMWORK REVENUE 25 aE 8 67 72 ue 20 1 on NATIONAL FORMWORK i $m 0 [] REVENUE _ gm 4 a 50 — 28d] _ a THFY21 THFY22 TH FY23 30 30.1 1H FY21 THFY22 THFY23 $M 9 NSW FORMWORK REVENUE tC WA FORMWORK REVENUE 15 6 54 u- 0 TFval 1HFY22
Slide 15: Acrow Equipment - Hire Wins & Pipeline
ACROW EQUIPMENT - HIRE WINS & PIPELINE PacROW [J HIRE CONTRACTS WON 30 i +27.5% 20 10 0 1H FY22 1H FY23 CURRENT PIPELINE* 125 [— 100 $108.6m de $80.9m. 50 25 o TH FY22 THFY23 * Comprises tenders and quotes provided G Record hire contracts won 1H FY23 up 27.5% PCP * Formwork > 100% growth * Commercia
Slide 16: Hila di
/ 7) Hila di
Slide 17: Engineering Evolution
70% Draftspeople/30% Engineers Only 2 chartered engineers Engineering services offered FOC No national engineering function Scaffold focus No focus on engineered solutions rather typical designs No product development None of the design team customer facing i ENGINEERING EVOLUTION “> FYI8 ° = FY23 E
Slide 18: Product Versatility & Engineering Expertise
PRODUCT VERSATILITY & ENGINEERING EXPERTISE THE QUAY, QLD - NATFORM SCREENS. METROL TUNNEL, VIC - LITTLE LA TROBE * Complex shape not suited to proprietary systems but * Unprecedented arch formwork, jacked up Il degree slope developed a solution with no special equipment * Bespoke jacking solution u
Slide 19: Product Versatility & Engineering Expertise
PRODUCT VERSATILITY & ENGINEERING acROW = EXPERTISE WEST GATE TUNNEL, VIC * Ability to design bespoke solutions when required * Worked with the customer to develop system reuse with a 30 month outlook * Reduced install and reuse labour requirements SNOWY HYDRO, NSW - INDUSTRIAL SCAFFOLD * Full 3D mo
Slide 20: Marquee Civil Projects
MARQUEE CIVIL PROJECTS BENEFICIARY OF REPUTATION FOR QUALITY, SAFETY & SERVICE ‘WEST GATE TUNNEL, VIC = CROSS RIVER RAIL, QLD BRUCE HIGHWAY UPGRADE, QLD SYDNEY GATEWAY, NSW 20
Slide 21: Operational Update
—_ = a i | = 2 OPERATIONAL UPDATE Steven Boland, MD & CEO
Slide 22: Segmental Breakdown
SEGMENTAL BREAKDOWN ACROW |= J @> Total revenue up 14% Six months to 31 Dec ($000) + 14HFY23) 1H FY22 ¢ Record half yearly revenue ines pe sh ¢ Formwork division driving growth stale Scaffold 42.140 42.899 Industrial Services softer on lower product sales Kida ~ T5455 = = * Commercial Scaffold - str
Slide 23: Sales Contribution Bridge
SALES CONTRIBUTION BRIDGE EQUIPMENT HIRE DRIVING GROWTH $m 37.6 contribution 1H FY22 Equipment hire represents 87% of growth in sales contribution Commercial scaffold hire ncn | 43.4 0.3 23
Slide 24: Formwork Division
FORMWORK DIVISION co Six months to 31 Dec ($000) 4HFY23) 1H FY22 Formwork Hire 19,161 4,854 2 Product Sales 15,087 8 - Cartage cat , © Record Formwork revenue up 34% weitaa terrae 35,089 12,047 34 * Hire revenue up due to increased activity levels across most states, particularly QLD , NSW & WA Form
Slide 25: Natform
NATFORM BUSINESS ON TRACK FOR HIGHEST ANNUAL REVENUE.IN ITS HISTORY ce Main drivers of growth: ® National footprint 11.0 to 57 e Product development a u 7 - - FY19 FY20 FY22 FY23E Record six month revenue in business’ history | ACTUAL || FORECAST 25
Slide 26: Industrial Services
INDUSTRIAL SERVICES Six months to 31 Dec ($000) 1HFY23 1H FY22 Mvt Scaffold Hire 3,303 Labour Hire 9,634 7 Product Sales 6 8,391 2 z Total Revenue 19,885 21,328 -1,443 7% Scaffold Hire 5,266 *) Labour Hire 2,010 Product Sales 852 Total Contribution 8,128 4 Contribution Margin* 40.9% 7 * Refers to pe
Slide 27: Commercial Scaffold
COMMERCIAL SCAFFOLD Six months to 31 Dec ($000) 1H FY23 Scaffold Hire Labour & Cartage Total Revenue Scaffold Hire Labour & Cartage Total Contribution Contribution Margin* 12,140 4425 2 5 1,089 (86 E 7,114 «5,514 7,600 58.6% 42.7% Refers to percentage point change on PCP 14 aH FY22 3 10 8 mmm Sales
Slide 28: People & Culture
Slide 29: Our People, Our Culture, Our Brand
OUR PEOPLE, OUR CULTURE , OUR BRAND Our People * We embrace a diverse and inclusive workforce based on mutual respect and equal treatment of all employees * Increased emphasis on employee development with the appointment of professional resources to lead this function * Focus on attracting best tale
Slide 30: Learning & Organisational Development
LEARNING & ORGANISATIONAL DEVELOPMENT PacROW [J Learning * Focus on delivering in-house professional development sessions for managers * Management Foundations * Coaching for Performance * Development of the Acrow Graduate Experience: a 2-year program to encompass all disciplines, including structur
Slide 31: Financials
Slide 32: Profit & Loss
PROFIT & LOSS Six months to 31 Dec ($000) 1H FY23 41H FY22 Sales 79,155 69,315 Total Contribution 48,371 37,623 Contribution Margin* 61.1% 54.3% EBITDA 23,019 16,715 EBITDA Margin*® 29.1% 24.1% Depreciation (7,403) (6,348) EST 15,616 10,387 Net Interest (2,243) (1,561) Pre-tax Profit 13,373 8,806 Ta
Slide 33: Balance Sheet
BALANCE SHEET rACROW |e $ © Net debt up by $4.6m due to capital investment. Net gearing up 0.6% Period ended 41H FY23 Fy22_ Mvt to 28.9% and net debt to EBITDA consistent at 1.1 times Cash 1,734 3,010 Receivables 31,692 34,363 Inventory 15,049 14,872 © Net current assets continue to improve up $1m t
Slide 34: Funding and Liquidity
FUNDING AND LIQUIDITY 60 40 FY22 1H FY23 9999 9 Y TRADE EQUIPMENT BUSINESS = 2 a fo * Metrics reported pre-AASB 16 ncn | Banking partner continued confidence in our company Trade finance facility increased from $8m to $12m plus an amortising business loan of $4.1m for a specific ringlock scaffold op
Slide 35: Cash Flow
CASH FLOW Operating Cash Profit ncn | @ Operating Cash Profit of $16.6m, +63% on PCP assisted by relatively low maintenance and tax paid Year end 30 June ($000) 4HFY20 1H FY21 1HFY22 1H FY23 Underlying EBITDA’ 7,861 11,095 16,715 23,019 © rete flow from operations $19.6m being a 85% conversion Lease
Slide 36: Capital Expenditure
CAPITAL EXPENDITURE PacROW [J GROWTH, IT & MAINTENANCE CAPEX 25 20 Total 1H F¥Y23 capex spend $15.1m. $12.5m growth, $2.3m stay in business and $0.3m PPE and systems | MAINTENANCE 15 || IT, PP&E 10 GROWTH & 5 NON-HIRE 0 = I) an Fv23 est FY20 FY21 FY22 FY23E sm Growth capital expenditure has been ele
Slide 37: Opportunities & Outlook
Slide 38: Short-Medium Term Opportunities
SHORT=MEDIUM TERM OPPORTUNITIES © Jumpform - Expand Jumpform business across a National Footprint. oo NSW Formwork - Significant packages secured on Sydney Gateway and MI12 Motorway projects with revenue to commence in April 2023. Currently tendering for the first formwork packages for Snowy Hydro.
Slide 39: Outlook
OUTLOOK CROW | © Upgraded Earnings Guidance for FY23 as follows: Revenue $165m - $175m $165m - $175m. up 15% EBITDA $48.0m - $49.0m, $45.5m - $46.5m. up 34% NPAT $25.5m - $26.5m $23.0m - $24.0m up 46% EPS 9.8 -10.2c 9.0-9.4c up 39% Forecast underpinned by: & Secured hire revenue contracts in FY22 of
Slide 40: Metre Tunnel, fea
Metre Tunnel, fea fe |
Slide 41: Overview
OVERVIEW CONSTRUCTION Civil infrastructure SECTORS SERVICED SINCE A] 1938 Industrial - Energy, Pulp, Paper & Mining Commercial Acrow Formwork and Construction Services Limited (Acrow) is a leading provider of smart integrated construction systems. ACROW OFFERS Engineered formwork sales and hire serv
Slide 42: Major Projects Won (Jul - Dec'22)
MAJOR PROJECTS WON (JUL - DEC'22) Cross River Rail Project - Formwork = Albert St, Brisbane, QLD Jump Form MI2 Motorway ~ Bridge BRO6 and BROS ~ sydney, NSW Formwork sydney Gateway Project - $821 - Span's 123,5,6,7,8 deck walkways - Sydney, NSW Formwork Melbourne Metro ~ CBD south and north stations
Slide 43: Major Projects Won (Jul - Dec'22)
MAJOR PROJECTS WON (JUL - DEC'22) North Quay Development, Brisbane - Brisbane, QLD 100 Talavera Road, Macquarie Park - sydney, NSW West Gate Tunnel Project ~ Bridge 61, 70, 72 and 73 ~ Melbourne, Vic The Allere Development West Village, Brisbane, QLD Merrylands - Sydney, NSW Formwork & Screens Scree
Slide 44: Major Projects Won (Jul - Dec'22)
MAJOR PROJECTS WON (JUL - DEC'22) PacROW [J Natform contact direct with Aland Developments. Commencing March 2023 for approx. 1! months, the scope of works includes ee ‘a ecieevs engineering, design and supply of a six level self climbing hydraulic screen system to a 46 storey building in Parramatta
Slide 45: Major Projects Won (Jul - Dec'22)
MAJOR PROJECTS WON (JUL - DEC'22) Westgate Tunnel Project - Tunnel Ventilation Shaft Wall - Melbourne, VIC 210 Brunswick St Development = Brisbane, QLD Westmead Paediatric Services Building - Sydney, Nsw Wardens Walk Development, Coburg, VIC Formwork Screens Screens Screens Acrow contract direct wit
Slide 46: Cash Flow Statement - Six months to Dec
Six months to 31 Dec ($000) THFY23 THFY22 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Cash generated from operations Significant casts Income tax paid Net cash from operating activities Cash flows from investing activities Proceeds from disposals
Slide 47: Acrow Snapshot
ACROW SNAPSHOT ENTERPRISE REVENUE VALUE ' $223m $170m LEV = net debt + market capitalization 2.Mid point of guidance range. ye ZZ LOST TIME INJURY FREQUENCY RATE (LTIFR) |__. : 1950 Apr 2018 w DEPOT 8 . i | : hel el &8E 10 280FrTE FYI7,FYIB. ss FYI9.-FY20.— FY FY22 1H FY23 REPLACEMENT VALUE >$140m 4
Slide 48: Acrow National Footprint
ACROW NATIONAL FOOTPRINT TOTAL REVENUE BY GEOGRAPHY (1H FY23) vic NI% QLD 53.7% Perth Adelaide Size :17,600m2 Size: 14,820m2 Asset Focus: F Asset Focus: F, CS, |S, Scr iz pees P Launceston Ss: Commercial Scaffold size: 3,500m2 Asset Focus: F & CS IS: Industrial Services Scr: Screens SiNce 1938 Brisb
Slide 49: Contact
CONTACT ACROW Sng ACROW HEAD OFFICE 2A Mavis Street Revesby NSW 2212 (es) - ‘ 3 | & & 1300 138 362 ~p fj > a A info@acrow.com.au fs | Steven Boland Andrew Crowther Matt Caporella a WWW.acrow.com.au MD & CEO cro coo Investor enquiries & presentation questions investors@acrow.com.au We help build Aust