Vulcan Steel Ltd. · ASX:VSL
Vulcan Steel — ASX CEO Connect Virtual Conference 2022
21 slides from Vulcan Steel's conference presentation, Apr 12, 2022
Slide 1: Vulcan to present at the ASX CEO Connect Virtual Conference
Vulcan Steel Limited (“Vulcan”) ASX/NZX Release For personal use only 12 April 2022 Vulcan to present at the ASX CEO Connect Virtual Conference Please find attached a copy of Vulcan’s presentation (ASX: VSL, NZX: VSL) for the ASX CEO Connect Virtual Conference on Tuesday 12 April. Investors can acce
Slide 2: ASX CEO Connect Conference
FINANCIALS For personal use only VULCAN.CO ASX CEO CONNECT CONFERENCE 12 April 2022 1
Slide 3: Disclaimer
ASX CEO CONNECT CONFERENCE For personal use only VULCAN.CO Disclaimer The material contained in this document is They may also be based on factors which are subject a presentation of information about Vulcan Steel to significant uncertainties and contingencies which Limited’s (“Vulcan”) activities c
Slide 4: Agenda
ASX CEO CONNECT CONFERENCE For personal use only VULCAN.CO Agenda It has been a historic first half of FY22, including our listing on the ASX and NZX. Overview While our listing could be seen as the completion of a journey, we view it as part of a longer sustained journey, Financials the beginning o
Slide 5: Overview
F ISNXA C A For personal use only N ECOI ACLOS N N E C T C O N F E R E N C E VVUULLC CAAN N .. C O Overview 4
Slide 6: Vulcan Steel's History
OVERVIEW VULCAN.CO Vulcan Steel’s (Vulcan) History For personal use only The journey so far... Successfully Vulcan operates listed on the ASX 29 logistics and on 4 November Consolidated processing 2021 at an IPO Acquired interests in Horan facilities across offer price of engineering steel Steel NSW
Slide 7: A Recap on Vulcan's Business
OVERVIEW VULCAN.CO A Recap on Vulcan’s Business For personal use only Vulcan is the only Australasian-wide, pure-play, value added steel distributor and processor. STEEL METALS Steel Distribution Plate Processing Coil Processing Stainless Steel Engineering Steels Distributes steel hollows, Processes
Slide 8: A Recap on Vulcan's Business continued: footprint
OVERVIEW VULCAN.CO A Recap on Vulcan’s Business continued For personal use only Trans-Tasman positions with a national footprint and significant scale drive operating leverage and supply chain capability 29 Sites across Australia and New Zealand, strategically located to serve the local customer bas
Slide 9: Our business model at a glance
OVERVIEW VULCAN.CO A Recap on Vulcan’s Business continued For personal use only Our business model at a glance... Outcome Accountable profit centres 98% Delivery in full, on time1 Enablers Internally developed Flat fit-for-purpose IT Structure Operational Excellence Inventory Processing Managing Cus
Slide 10: Growth Strategy
OVERVIEW VULCAN.CO Growth Strategy For personal use only Expansion of Business Brownfield Entry into new product and/or Opportunistic improvement expansion geographies service offering M&A initiatives • Strong track record in • Expanded into 10 regional • Successfully introduced and • Acquired and s
Slide 11: Growth Initiatives Update
OVERVIEW VULCAN.CO Growth Initiatives Update For personal use only As outlined in Vulcan’s prospectus (15 October 2021), the company commenced the implementation of several business improvement opportunities with potential to increase its annual run-rate revenue by up to NZ$60m over 36 months based
Slide 12: Financials
F ISNXA C A For personal use only N ECOI ACLOS N N E C T C O N F E R E N C E VVUULLC CAAN N .. C O Financials 11
Slide 13: 1H FY22 Performance Highlights
FINANCIALS For personal use only VULCAN.CO 1H FY22 Performance Highlights ADJUSTED EBITDA 2 ADJUSTED NPAT 5 ADJUSTED EPS 6 REVENUE GROSS MARGIN (EXCLUDING OFFER COSTS) (EXCLUDING OFFER COSTS) (EXCLUDING OFFER COSTS) NZ$463m 41.3% NZ$118m NZ$70m NZ 53.0c 1 +35% on NZ$344m 1H FY21 +6.1% on 35.2% in 1H
Slide 14: Operating Backdrop during 1H FY22
FINANCIALS VULCAN.CO Operating Backdrop during 1H FY22 For personal use only • Australia and New Zealand activity level - good momentum after the easing of COVID-19 restrictions in October 2021 • Global & local market conditions - World steel production declined - Global steel prices & freight rates
Slide 15: Group Financial Performance
FINANCIALS VULCAN.CO Group Financial Performance For personal use only • Revenue driven by 10% year-on-year MILLION NZ$ 1H FY22 1H FY21 % CHANGE (YOY) volume growth and 23% YOY Revenue 463.0 344.1 +34.5% product price inflation in 1H FY22 Adjusted EBITDA 1,4 118.1 59.7 +97.7% • Gross margin improved
Slide 16: Group Financials – Key drivers of EBITDA change
FINANCIALS VULCAN.CO Group Financials – For personal use only Key drivers of EBITDA change • Volume growth contributed $17m YOY EBITDA MOVEMENT FROM 1H FY21 TO 1H FY22 (NZ$m) 140 • Margin growth contributed $53m YOY 53.1 120 118.1 • Net OPEX in 1H FY21 included $3.1m gain -11.4 102.4 on property sal
Slide 17: Balance Sheet Metrics & Dividend
FINANCIALS VULCAN.CO Balance Sheet Metrics & Dividend For personal use only • Strong balance sheet position to execute on growth strategy 3.5 NET DEBT COVER (NET DEBT/EBITDA, PRE IFRS 16) 3.00 and maintain our 60%-80% annual dividend payout policy 3.0 • Banking facilities of NZ$200m are now on a ful
Slide 18: Outlook & Guidance
S ES C A For personal use only X TCI O E ON CT O I TNLNE E C T C O N F E R E N C E VVUULLC CAAN N .. C O Outlook & Guidance 17
Slide 19: Outlook & Guidance
OUTLOOK & GUIDANCE VULCAN.CO Outlook & Guidance For personal use only Outlook Earnings Guidance • Australia and New Zealand activity level Overall, following the conclusion of stronger than expected - Positive outlook medium term but new COVID-19 waves since trading since Vulcan’s last trading updat
Slide 20: Q&A
F ISNXA C A For personal use only N ECOI ACLOS N N E C T C O N F E R E N C E VVUULLC CAAN N .. C O Q&A 19
Slide 21: For personal use only
FINANCIALS For personal use only VULCAN.CO VULCAN.CO 20
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