Wagners Holding Co. Ltd. · ASX:WGN
Wagners — H1 FY2020 Earnings Presentation
23 slides from Wagners's earnings presentation, Feb 25, 2020
Slide 1: ASX cover letter: Investor Presentation for Half Year ending 31 December 2019
►CONSTRUCTION MATERIALS HEAD OFFICE: ►TRANSPORT SERVICES 1 AIRPORT DRIVE ►CEMENT, FLYASH & LIME 1511 TOOWOOMBA CECIL PLAINS ROAD ►PRECAST CONCRETE WELLCAMP QLD 4350 ►REINFORCING STEEL ►COMPOSITE FIBRE TECHNOLOGIES POSTAL ADDRESS: PO BOX 151 DRAYTON NORTH QLD 4350 INT. PREFIX STD PREFIX NUMBER TELEPH
Slide 2: HY 20 Investor Presentation February 2020
Ocala Beach Boardwalk - Florida USA HY 20 INVESTOR PRESENTATION FEBRUARY 2020
Slide 3: Disclaimer
DISCLAIMER The material contained in this presentation is a summary of Wagners Holding Company Limited’s (Wagners) activities and results, current at the date of preparation, 25 February 2020. The information in this presentation is in summary form only, general in nature and does not purport to be
Slide 4: Agenda
AGENDA 1 HY20 Summary 2 Financial Performance 3 Outlook
Slide 5: HY20 Summary
HY20 SUMMARY Taking our vision and expertise to the world Keltbray/Capital Concrete – EFC pile in Central London
Slide 6: Financial Overview
FINANCIAL OVERVIEW ($m) 1H FY20 2H FY19 Change 1H FY19 Change Total Revenue 122.3 116.0 6.3 123.8 (1.4) Gross Profit 67.3 76.2 (8.9) 74.4 (7.1) EBITDA 11.3 15.5 (4.2) 22.4 (11.1) EBIT 2.5 8.8 (6.3) 16.1 (13.6) Net profit after tax (1.2) 5.9 (7.1) 6.9 (8.1) This half and last half revenue and EBIT
Slide 7: HY 20 Summary
HY 20 SUMMARY HY 20 Sales decreased compared to HY 19 - Concrete plants, Quarries and Transport revenue increased in HY 20 - Cement was negatively impacted by the lower volumes due to the Boral dispute with offtake recommenced in late October 2019 - No major project revenue HY 20 EBIT lower than
Slide 8: HY 20 Summary (cont.) Segment Results
HY 20 SUMMARY(CONT.) SEGMENT RESULTS Construction Materials and Services ($m) HY20 HY19 Change Total Revenue 106.8 120.8 (14.0) EBIT 6.9 19.3 (12.4) FINANCIAL COMMENTARY OPERATIONAL CHANGES Lower cement volumes due to Boral dispute has Boral recommenced offtake of cement in late October negative
Slide 9: HY 20 Summary (cont.) Cement, Concrete, Quarries
HY 20 SUMMARY(CONT.) Construction Materials and Services CEMENT Revenue decrease due to reduced volumes as a result of the Boral dispute Overall decrease in cement consumption across South East Queensland CONCRETE Growing presence in the SEQ concrete market - 6 Operational sites, another 3 pen
Slide 10: HY 20 Summary (cont.) Transport, Projects, Precast
HY 20 SUMMARY(CONT.) Construction Materials and Services TRANSPORT Strong performance from mining contracts in N/W Queensland Currently engaged on 9 significant contracts, for 6 different customers Increased utilization and size of fleet has driven higher maintenance costs PROJECTS Lack of i
Slide 11: HY 20 Summary (cont.) Segment Results: New Generation Building Materials
HY 20 SUMMARY(CONT.) SEGMENT RESULTS New Generation Building Materials ($m) HY20 HY19 Change Total Revenue 16.4 14.5 1.9 EBIT 0.8 0.6 0.2 FINANCIAL COMMENTARY OPERATIONAL CHANGES Sales CFT ₋ Diversified and expanded customer base and First pultrusion machine awaiting commissioning in the geograp
Slide 12: New Generation Building Materials: Composite Fibre Technologies (CFT)
New Generation Building Materials WAGNERS COMPOSITE FIBRE TECHNOLOGIES (CFT) CFT revenue up 13% and EBIT up 18% compared to HY 19 Crossarms sales are currently in Australia and New Zealand, exploring international opportunities Customer spread in CFT pedestrian infrastructure and bridge busi
Slide 13: New Generation Building Materials: Earth Friendly Concrete (EFC)
New Generation Building Materials WAGNERS EARTH FRIENDLY CONCRETE (EFC) Commissioned activator production plant to reduce production costs EFC DIBt approval attained in this period Poured the first EFC field trial in central London EFC BIS (Indian standard) further testing for approval carri
Slide 14: Financial Performance
FINANCIAL PERFORMANCE EFC Slipform Paver – Qantas Flight Training Academy – Taxi Way EFC.
Slide 15: HY20 Consolidated Results
HY20 CONSOLIDATED RESULTS ($m) 1H FY20 2H FY19 1H FY19 COMMENTARY Total Revenue 122.3 116.0 123.8 Gross Profit lower at 55.0% due to mix of Gross Profit 67.3 76.2 74.4 revenue Operating Costs - Employee expenses EBIT also impacted by higher operating (23.0) (25.3) (24.7) costs - Repairs & mainte
Slide 16: Cashflow
CASHFLOW ($m) HY20 HY19 Change EBITDA 11.3 22.4 (11.1) Non-cash items (0.4) (0.8) 0.3 Changes in working capital (19.4) 14.4 (33.8) Changes in provisions 0.1 0.6 (0.5) Cash flow from operations (8.3) 36.7 (45.0) Capital Expenditure (7.2) (22.8) 15.6 Proceeds from sale of assets 0.5 0.7 (0.2) Net cas
Slide 17: Working Capital and Net Debt
WORKING CAPITAL ($m) HY20 HY19 Change COMMENTARY Trade and other receivables 52.1 42.7 9.5 Increase in working capital due to some Inventories 20.0 19.5 0.5 large invoices written for new projects Trade and other payables (26.1) (28.2) 2.1 awarded and sale of concrete plants Net working capital 46
Slide 18: Outlook
OUTLOOK Abu Dhabi – 2.2km Jubail Mangrove Park Walk
Slide 19: Outlook: Construction Materials and Services
OUTLOOK Construction Materials and Services Significant opportunities Cross River Rail tunnel segment supply – secured Central Queensland contract crushing project – secured Additional Bulk Haulage contracts in NW Queensland – secured and under tender review Return to contracted cement offta
Slide 20: Outlook: Composite Fibre Technologies (CFT)
OUTLOOK New Generation Building Materials Composite Fibre Technologies (CFT) Australia and New Zealand Continue to invest in innovation and the expansion of the manufacturing capacity our Toowoomba factory Increase revenues through sales of recently developed composite round pole Increase sale
Slide 21: Outlook: Earth Friendly Concrete (EFC)
OUTLOOK New Generation Building Materials Earth Friendly Concrete (EFC) Development and Accreditation Continue to invest in R&D and geographical expansion Leverage off DIBt (European) approval granted and grow sales to construction companies in Germany and throughout Europe and the UK. Further
Slide 22: Outlook: Financial Outlook
OUTLOOK Financial Outlook We have reduced our earnings expectations continued challenges in the South East Queensland construction materials business uncertainty over the timing of commencement of major projects* no allowances for the litigation outcome As a result of the above we have reduced
Slide 23: wagner.com.au
wagner.com.au