Slide 1: FY24 Results
21 August 2024 FY24 RESULTS Acrow Ltd (ASX:ACF) Presentation Steven Boland - CEO Andrew Crowther - CFO Matt Caporella - COO Raising the Standard in Construction. Cross River Rail, Albert Street, Brisbane
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 Revenue up 28% & EBITDA up 40% Industrial Services now 33% of group revenue - M&A/organic growth New products/cross-sell drives organic growth Strong product development pipeline Record contracts won / pipeline continues Underlying NPAT growth of 8% despite now on full tax rate (3
Slide 4: Acrow Overview
ACROW OVERVIEW Acrow is a leading provider of smart integrated construction systems. 1950 Apr 2018 6 states 15 393 FTE* 1393 50 clients engineers COMPETITIVE SECTORS ADVANTAGES SERVICED INDUSTRIAL - ENERGY, PULP, ENGINEERING PAPER & MINING QUALITY OF EXPERTISE & OUR PEOPLE SOLUTIONS CIVIL INFRASTRUC
Slide 5: Our Journey...So Far
OUR JOURNEY...SO FAR Acquired Acquired Acquired ASX listing Heinrich Benchmark Uni-span Apr 18 screens Scaffold Oct 19 Apr 23 Mar 24 Acquired Acquired First Natform MI Jumpform screens Scaffold contract Aug 18 Nov 23 Oct 22 Share price 43% 89% Engineered Systems and Services FY18 FY24 5
Slide 6: Key FY24 Highlights
West Gate Project, VIC KEY FY24 HIGHLIGHTS Steven Boland, MD & CEO 6
Slide 7: Key Operational Achievements FY24
KEY OPERATIONAL ACHIEVEMENTS FY24 INDUSTRIAL SERVICES ORGANIC/CROSS-SELL RECORD SECURED HIRE ACQUISITIONS GROWTH CONTINUES CONTRACTS/PIPELINE Successfully acquired leading industrial services businesses - Our first 3 x screens projects secured in WA in conjunction with our Hire contracts secured up
Slide 8: Safety Is Our Priority
SAFETY IS OUR PRIORITY ZERO HARM IMPROVEMENT LTIFR 1 44% IMPROVEMENT 62% IMPROVEMENT 10.0 5.7 2.9 1.1 FY23 FY24 FY23 FY24 TOTAL RECORDABLE INJURIES LOST TIME INJURIES 29% IMPROVEMENT 50% IMPROVEMENT 7.0 5.0 2.0 1.0 FY23 FY24 FY23 FY24 1. Lost Time Injury Frequency Rate 8
Slide 9: Business Overview
BUSINESS OVERVIEW Steven Boland, MD & CEO UNSW Health Translation Hub, NSW 9
Slide 10: Key Financial Metrics FY24
1 KEY FINANCIAL METRICS FY24 NPAT and EPS impacted by full tax status (vs. 8% in PCP) REVENUE EBITDA 250.0 80.0 $74.6 $215.3 200.0 $168.5 $53.2 60.0 150.0 40.0 $m 100.0 $m 28% 40% 20.0 50.0 0.0 0.0 FY23 FY24 FY23 FY24 NPAT (Stat.) NPAT 35.0 $33.0 30.0 $25.6 $30.5 $23.5 30.0 25.0 25.0 20.0 20.0 $m 15
Slide 11: Financial Track Record
1 FINANCIAL TRACK RECORD EPS and ROE impacted by full tax status (vs. 8% in PCP) REVENUE($m) EBITDA ($m) ROE (%) FY18 65.3 FY18 13.2 FY20 17.0 FY19 71.0 FY19 14.8 FY20 87.0 22% CAGR FY20 19.5 33% CAGR FY21 14.5 12% CAGR FY21 105.7 FY21 24.3 FY22 23.0 FY22 148.3 FY22 36.3 FY23 32.7 FY23 168.5 FY23 53
Slide 12: Acrow Equipment - Hire Wins & Pipeline
ACROW EQUIPMENT - HIRE WINS & PIPELINE HIRE CONTRACTS WON +17% Hire contracts secured 80.0 Record month of June - $12.3m $78.3m 60.0 $67.5m Largest screens contract - Royal Formwork $2.5m for premium screens Jumpform - 13 new contract wins in FY24 40.0 Record pipeline 20.0 Drivers - Jumpform, Screen
Slide 13: Secured Hire Contracts
SECURED HIRE CONTRACTS Strong lead indicator for hire revenue Key lead indicator for future performance Linear relationship between secured contracts won and hire revenue 13
Slide 14: Engineering Update
ENGINEERING UPDATE Matt Caporella, COO West Gate Project, VIC 14
Slide 15: Engineering Evolution
ENGINEERING EVOLUTION SOLUTION FOCUSED 50 Engineers now in the business with 50% client facing and involved with the sales LEARNING & DEVELOPMENT process Successful implementaion of our 89% of work completed engineered soultions compared to drafting services Cadet and Graduate program TECHNOLOGY 6 s
Slide 16: Product Development
PRODUCT DEVELOPMENT Continuing the success of Powershore 150 and Acrowdeck Development Dedicated Internal Industrial design team Criteria Focus on owning and protecting the IP by Patent’s, Continued and trademarks and registered designs. sustainable ROI Own the IP and Controling supply chain Supply
Slide 17: Operational Update
OPERATIONAL UPDATE Steven Boland, MD & CEO Ballarat Base Hospital Carpark Extension, VIC 17
Slide 18: Segmental Breakdown
SEGMENTAL BREAKDOWN Record revenue Formwork and Industrial Sevices driving growth Majority of growth from organic initiatives 8 months contribution from MI Scaffold and 3 months from Benchmark Scaffolding acquisitions Total Contribution Growth across Formwork and Industrial Services Margins up acros
Slide 19: Sales Contribution Bridge
SALES CONTRIBUTION BRIDGE EQUIPMENT HIRE CONTINUES TO DRIVE GROWTH $20.8m Equipment hire represents 71% of growth in sales contribution 19
Slide 20: Formwork Division
FORMWORK DIVISION Record formwork revenue continues Hire revenue up due to increased activity levels all states except QLD Product sales growth of 19% Sales contribution up 26% Margin up 4.4 ppts due to increased contribution from hire revenue Strong pipeline continues * Refers to percentage point c
Slide 21: Formwork Revenue by State & National
1 FORMWORK REVENUE BY STATE & NATIONAL NATIONAL FORMWORK QLD FORMWORK REVENUE REVENUE VIC FORMWORK REVENUE 140.0 28.7 121.1 30.0 50.0 45.3 120.0 23.241.7 102.0 25.0 11.6 40.0 20.8 100.0 31.0 78.7 20.0 17.4 30.0 80.0 14.6 15.5 7.2 7.3 $m 21.2 12.8 $m 60.0 50.6 60.4 $m 15.0 6.7 20.0 9.9 14.8 10.0 7.5
Slide 22: Current Marquee Projects
CURRENT MARQUEE PROJECTS Reputation for quality, safety & service $5.3m $15m $16m SYDNEY METRO WEST, NSW CROSS RIVER RAIL, QLD WEST GATE TUNNEL, VIC $23m $2.7m $24m *Total hire & sales revenue to-date SNOWY HYDRO 2.0, NSW COOMERA CONNECTOR, QLD METRO TUNNEL, VIC *Snowy Includes labour revenue 22
Slide 23: Acrowdeck
ACROWDECK 15,000sqm across NSW, VIC, SA, QLD $820k hire revenue 2H FY24 12 projects completed and repeat customers Product sales secured since launch - $2.0m 23
Slide 24: Jumpform
JUMPFORM 24 system wins across 16 projects System Features - our product is a proprietary since launch electric and computer controlled system that 3 repeat customers saves time on site and has market leading safety features. 12 install’s planned in 1H FY25 with Market Opportunity - utilising Acrow’
Slide 25: Screens
SCREENS Record revenue in FY24 - $15.9m Acrow screens - light duty protection screens, 3m maximum width and suitable for application Acrow’s single largest ever screens where slab loading is limited, and the screen is to contract awarded in June 2024 - 2 towers only provide edge protection. on the G
Slide 26: Industrial Services
INDUSTRIAL SERVICES Revenue up 78% MI Scaffold acquired Nov 2023 / Benchmark Scaffolding acquired Mar 24 Acquisitions trading above expectations Labour hire benefitting from Snowy 2.0 and acquisitions Sales contribution up 81% Division margin up 0.4 ppts Labour hire margins up strongly * Refers to p
Slide 27: Industrial Services Acquisitions
INDUSTRIAL SERVICES ACQUISITIONS GEOGRAPHIC FOOTPRINT MI Scaffold and Benchmark Scaffolding were acquired in November 2023 and March 2024, respectively. Acquisition multiples of 3.8 -4.0X EBITDA. Both businesses are highly complementary, servicing large scale ~240 projects predominately across the i
Slide 28: Commercial Scaffold
COMMERCIAL SCAFFOLD Revenue reduction Scaffold hire revenue down - prices and volumes reducing but stabilising above historic levels Strategic exit from labour hire Sales contribution down 22% * Refers to percentage point change on PCP Margin up 4.2 ppts due to higher scaffold hire mix Disciplined c
Slide 29: People & Culture
PEOPLE & CULTURE 29
Slide 30: People & Culture
PEOPLE & CULTURE CADETSHIPS & GRAD LEARNING & MARKET LEADER INNOVATIVE PROGRAM DEVELOPMENT Internal development Professional development Best of breed Raising the Standard Growing Talent: Nurturing future Continuous Upskilling: Industry Standards: Leading Australian Standards: Designing engineers th
Slide 31: Our Brand
OUR BRAND RAISING THE STANDARD Rebrand in Sept’23 Reimagined Acrow Drive collaboration & connection Emphasis on product development “Best in Breed” approach 31
Slide 32: Financials
FINANCIALS Andrew Crowther, CFO Metro Tunnel, VIC 32
Slide 33: Profit & Loss
PROFIT & LOSS Underlying NPAT up 8% absorbing the impact of effective tax rate increase from 8% to 30% ($10.4m increase). Final dividend of 3.0cps (100% franked), up 11% Scale benefits continue - 74% of EBITDA growth flowing from contribution margin Depreciation up on Industrial Services acquisition
Slide 34: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Total assets up on Industrial Services acquisitions and capital investment initiatives Net debt up by $22.3m to $68.6m. Gearing ratios relatively steady Cash flow from operations $62.4m - 84% conversion rate 1. Continued focus on working capital. Steady at 23.5% of sales
Slide 35: Capital Expenditure
CAPITAL EXPENDITURE Growth, IT & maintenance capex 35 30 25 MAINTENANCE 20 Total FY24 capex spend $30.4m (net of ex-hire $m 15 IT, PP&E replacement costs) 10 GROWTH & Growth capex - $25.3m, 5 NON-HIRE Stay in business - $4.0m 0 PPE and systems - $1.1m FY20 FY21 FY22 FY23 FY24 Total FY25 estimated ca
Slide 36: Funding and Liquidity
FUNDING AND LIQUIDITY TOTAL AVAILABLE HEADROOM - $21.2M 120.0 100.0 21.2 Business term loan was restructured combining all bank loans including the new MI ($15m) and Benchmark 14.5 80.0 ($6.4m) $m 60.0 16.6 Equipment finance facility increased by $5m to absorb 44.8 increased capex 40.0 27.4 20.0 14.
Slide 37: Opportunities & Outlook
OPPORTUNITIES & OUTLOOK Steven Boland, MD & CEO Wee Hur Jumpform, Redfern 37
Slide 38: Construction Activity Forecasts
CONSTRUCTION ACTIVITY FORECASTS TOTAL BUILDING & CONSTRUCTION WORK - FORECAST TOTAL VALUE OF WORK PER SECTOR - FORECAST RESIDENTIAL NON- ENGINEERING BUILDING RESIDENTIAL CONSTRUSTION BUILDING New houses Accommodation Roads New other residential Educations Bridges, railways & (apartments & Entertainm
Slide 39: Upcoming Major Projects
UPCOMING MAJOR PROJECTS North East Link Program, VIC Suburban Rail Loop, VIC T2D Torrens to Darlington, SA Sydney Metro West, NSW 16.0Bn+ 30.0Bn+ 15.4Bn+ 2.6Bn+ North East Link tunnels to fix Melbourne's Preferred bidder announced for second T2D Project: final 10.5km of the North- Sydney Metro West:
Slide 40: Upcoming Major Projects Cont.
UPCOMING MAJOR PROJECTS CONT. Melbourne Airport Rail, VIC Brisbane Olympics 2032 Coomera Connector QLD Hospitals Upgrades 10.0Bn+ 3.0Bn+ 2.2Bn 8.0Bn+ Melbourne Airport Rail: connects airport Most venues still to be confirmed Stage 1 section of the Coomera New Toowoomba Hospital $1.3b to Victoria’s t
Slide 41: Internal Product Development
INTERNAL PRODUCT DEVELOPMENT PRODUCTS MARKET BENEFITS OPPORTUNITIES Acrowdeck - modular Own the IP, not bound slab formwork system Expand new products by licensor and into new geography's distributor restrictions for organic growth Platform - Loading bay Control the supply for highrise buildings. De
Slide 42: Industrial Services
INDUSTRIAL SERVICES Recurring revenue streams Long-term contracts / long-term relationships Recurring maintenance work M&A Activity Targeting further acquisitions in NSW/WA Disciplined acquisition multiples - ~4 times EBITDA Create best of breed operations Training facility to be built in Mackay, op
Slide 43: FY25 Outlook Summary
FY25 OUTLOOK SUMMARY General Formwork business positioned to take advantage of substantial pipeline of projects both civil and commercial, including QLD hospital & Brisbane Olympics projects, that will commence from 2H FY25 and into FY26. Further Formwork growth to be delivered via new revenue chann
Slide 44: Contact
CONTACT ACROW HEAD OFFICE 2A Mavis Street Revesby NSW 2212 1300 138 362 Steven Boland Andrew Crowther Matt Caporella info@acrow.com.au MD & CEO CFO COO www.acrow.com.au Investor enquiries & presentation questions Raising the Standard in Construction. investors@acrow.com.au 44