Slide 1: Acrow Ltd Half Year Results Presentation
20 February 2024 tH EW tts Acrow Ltd (ASX:ACF) Presentation Steven Boland - CEO Andrew Crowther - CFO Matt Caporella - COO acrow. ENGINEERING & CONSTRUCTION @ Raising the Standard in Construction.
Slide 2: Disclaimer
©> acrow. 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 informa
Slide 3: M&A - expanded Industrial Services
M&A - expanded Industrial Services Organic growth driving record results Record contracts won / pipeline Strong product development pipeline ROE 32% - more than doubles over 4 years Re-iterate FY24 earnings guidance
Slide 4: Acrow Overview
ACROW OVERVIEW Acrow is a leading provider of smart integrated construction systems. COMPETITIVE ADVANTAGES ENGINEERING EXPERTISE & ‘SOLUTIONS GEOGRAPHIC FOOTPRINT isi Q 1950 Apr2018 6 states SECTORS SERVICED CIVIL + INFRASTRUCTURE INDUSTRIAL - ENERGY, PULP, “PAPER & MINING COMMERCIAL & HIGH RISE 74
Slide 5: i
4 i
Slide 6: Key Operational Achievements 1H FY24
KEY OPERATIONAL ACHIEVEMENTS 1H FY24 acrow. MISCAFFOLD RECORD SECURED HIRE JUMPFORM Is SCREENS CONTRACTS/PIPELINE Acquired leading industrial services Highly complementary businesses business in mid/north Queensland Hire contracts secured up 18% YoY providing strong cross-sell providing new recurrin
Slide 7: Safety Is Our Priority
SAFETY IS OUR PRIORITY & acrow. e ZERO HARM IMPROVEMENT LTIFR' 12.00 3.00 200 10.00 7 4 % -” 8.00 IMPROVEMENT 180 6.00 iis 4.00 0.50 000 - L a 0.00 TRIFR FY23 TRIFR 1H FY24 TOTAL RECORDABLE LOST TIME INJURIES INJURIES 7 2 : 86% . 5 IMPROVEMENT 4 : 1 2 1 1 ° aaa | ° Fv23 THFY24 Fv23 THFY24 |.Lost Tim
Slide 8: WOVA, IC Formwork (Geocon), NSW
WOVA, IC Formwork (Geocon), NSW
Slide 9: Key Financial Metrics 1H FY24
KEY FINANCIAL METRICS 1H FY24' 120.000 if?-000 40.000 20.000 0.000 1HFY23 14.0 120 10.0 8.0 6.0 40 2.0 0.0 $m NPAT (Stat.) TH FY23 6.0 5.0 1.all metrics are underlying unless otherwise stated THFY23 REVENUE 28% EPS 26 24% 1.0 “ o $101.0 100.000 54 80,000 THFY24 587c THFY24 40.0 30.0 20.0 10.0 EBITDA
Slide 10: Return on Equity
RETURN ON EQUITY <> acrow. Efficient deployment of capital 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% FY20 FY21 FY22 FY23 1H FY24 1.Calculated based on trailling 12 months NPAT
Slide 11: Acrow Equipment - Hire Wins & Pipeline
ACROW EQUIPMENT - HIRE WINS & PIPELINE HIRE CONTRACTS WON “8% Record hire contracts secured 1H FY24 35.0 30.0 $34.8m . Formwork | industrial scaffold ~90% of contract wins * Commercial scaffold higher - demand remains strong 25.0 g2cei ae « Jumpform - 8 new contract wins in 1H FY24 20.0 15.0 10.0 Re
Slide 12: Secured Hire Contracts
SECURED HIRE CONTRACTS Strong lead indicator for hire revenue 48.1 c ™@Secured contracts won ml Hire revenue 45.0 40.0 362 ag 35.0 29.6 30.0 26.9 23 20.2 20.0 es 14g 50 ag 15.0 na “ 96 10.0 5.0 i 1H 1H 1H 1H 1H 1H 1H FY18 FY19 FY20 FY21 FY22 Pez. FY24 $m ws f 6 <> acrow. Key lead indicator for futur
Slide 13: Engineering Update
Jk SS SSS = — Si | ! a> . = ENGINEERING UPDATE Matt Caporella, COO i ; ) EA
Slide 14: Engineering Evolution
ENGINEERING EVOLUTION 2018 Drafting services (free of charge) 2x chartered engineers Scaffold focus No product develop No customer facing engineers 2021 Majority FW drafting Transition to engineered solutions 4x chartered engineers Developed internal testing capabilities Engineers introduced to sale
Slide 15: Internal Product Development
INTERNAL PRODUCT DEVELOPMENT acrow. THE PRODUCT DEVELOPMENT TEAM & Industrial designers- not formwork engineers doing * product design. & Dedicated product team - adjacent to the core * engineering team focused on product not projects. & Responsible for the full product development life cycle ” from
Slide 16: Product Offering
PRODUCT OFFERING PRODUCT OFFERING &} Synergies between systems and cross * selling opportunities. ¥ Introduction of complete systems like Jumpform and Acrowdeck but also small incremental upgrades like falsework product improvements. &} Comprehensive product offering ” within our core competencies.
Slide 17: Marquee Civil Projects
MARQUEE CIVIL PROJECTS Reputation for quality, safety & service Wd” 3 | is eas METRO TUNNEL, VIC ‘ Ay a 1 \\ CROSS RIVER RAIL, QLD : ee Bim. SYDNEY GATEWAY, NSW MI2, NSW COOMERA CONNECTOR, QLD
Slide 18: Operational Update
i = 1 { _ OPERATIONAL UPDATE SS
Slide 19: Segmental Breakdown
SEGMENTAL BREAKDOWN Six months ended 31 Dec ($000) Formwork Industrial Services Commercial Scaffold Total Revenue Formwork Industrial Services Commercial Scaffold Total Contribution Con! ion Mai Yard Related Expenses Labour Other Total Overheads Underlying EBITDA EBITDA Margin * Refers to percentage
Slide 20: Sales Contribution Bridge
SALES CONTRIBUTION BRIDGE EQUIPMENT HIRE CONTINUES TO DRIVE GROWTH $m 69 64 59 54 49 44 39 34 29 24 48.4 Sales contribution 1H FY23 Formwork hire $12.0m Equipment hire represents 76% of growth in sales contribution Industrial scaffold hire Commercial scaffold hire Product sales 1.4 Industrial servic
Slide 21: Formwork Division
FORMWORK DIVISION Six months ended 31 Dec ($000) Formwork Hire Consumables Cartage Total Revenue Formwork Hire Product Sales Consumables Cartage Total Contribution bution Margin * Refers to percentage point change on PCP acrow. } Record formwork revenue continues : ¢ Hire revenue up due to increased
Slide 22: Formwork Revenue by State & National
FORMWORK REVENUE BY STATE & NATIONAL NATIONAL FORMWORK QLD FORMWORK REVENUE REVENUE VIC FORMWORK REVENUE 25.0 12.0 3. 10.0 UES 20.8 0 15.0 40.0 8. 7 6.0 6 2 7.3 S™MI9.9 128 $m30.0 $m 67 9.9 20.0 4.0 5.0 . 2.0 10.0 0.0 0.0 THFY21 TH FY22 IH FY23 TH FY24 0.0 THFY21 JH FY22 TH FY23 THFY24 IHFY21 = 1HFY
Slide 23: Industrial Services
INDUSTRIAL SERVICES acrow. Six months ended 31 Dec 1H $ % chg ($000) FY24 Mvt PCP Scaffold Hire 6,054 78. 5% 7 Labour Hire 17.480 54 Revenue Up Sze Product Sales 5309 5 an 2 * Growth across all segments Total Revenue 28,856 8,971 45% * Snowy 2.0 contract win - Oct 23 * MI Scaffold - 2 months contrib
Slide 24: Overview of MI Scaffold
OVERVIEW OF MI SCAFFOLD acrow. BUSINESS OVERVIEW GEOGRAPHIC FOOTPRINT <> Since establishment in 2012, MI Scaffold has grown into a market leading industrial scaffolding, access and rigging services supplier. <> The MI scaffold leadership team has over 90 years of combined ~180 : “ ‘ ones ee 5 employ
Slide 25: Snapshot of Key Markets Served
SNAPSHOT OF KEY MARKETS SERVED blue-chip clients Entry into new industrial services sectors serving large Industrial Energy & Resources Infrastructure & Port rine 25
Slide 26: Commercial Scaffold
COMMERCIAL SCAFFOLD Six months ended 31 Dec 1H ($000) FY24 Scaffold Hire 8.118 Labour & Cartage 2,775 Total Revenue 10,893 Scaffold Hire 8,118 Labour & Cartage 606 Total Contribution 8,724 Contribution Margin* 80.1% * Refers to percentage point change on PCP $million 4H Fv23 Revenue mm Sales contrib
Slide 27: Future Assets
TURE SETS SR 27
Slide 28: Our People, Our Culture, Our Brand
OUR PEOPLE, OUR CULTURE , OUR BRAND acrow. OUR PEOPLE OUR CULTURE OUR BRAND LEARNING & DEV <> e Diverse & inclusive Customers at the &} Rebrand in Sept'23 &} Acrow graduate * workforce * heart of all we do : * program - &} Reimagined Acrow university/cadetships Mutual respect & <> Strive to be emplo
Slide 29: Financials
| FINANCIALS .
Slide 30: Profit & Loss
PROFIT & LOSS Six months ended 31 Dec 1H ($000) FY24 Sales 101,026 Total Contribution 64,109 Contribution Margin* 63.5% EBITDA 35,198 EBITDA Margin* 34.8% Depreciation (9,875) EBIT 25,324 Net Interest (2,775) Pre-tax Profit 22,548 Tax Expense (6,331) NPAT (underlying) 16,217 Significant items (2,569
Slide 31: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW acrow. 4H $ Fr ese Period endad ($000) rise nas iad Total assets up on Ml Scaffold acquisition and capital investment —_ initiatives Cash 6,699 4,939 6 Total As: 278,685 218,516 Net debt up by $17.0m to $63.4m. Gearing ratios relatively steady Debt 70,072 51,291 Total Lia
Slide 32: Capital Expenditure
CAPITAL EXPENDITURE Growth, IT & maintenance capex 20 — 15 a “a 5 0 FY20 FY21 FY22 FY23 THFY24 Return on Investment 60.0 50.0 Se fo i 30.0 20.0 10.0 0.0 Fy2i FY22 FY23 THFY24 “actual cumulative return = Capex return weighted by time in the fleet. MAINTENANCE IT, PP&E GROWTH & NON-HIRE EST. 2H FY24 a
Slide 33: Funding and Liquidity
FUNDING AND LIQUIDITY acrow. TOTAL FUNDS AVAILABLE - $16.8M 100.0 Banking partner continued confidence in our compa 80.0 Business term loan was restructured combining all bank 60.0 loans including the new $15m MI Scaffold. E a 40.0 Growth capital expenditure was front ended in the first 6 months whi
Slide 34: Outlook
mt y fe zy i hi (a F Q = S & OUTLOOK stevensoianamosceo =] ~~ ae ae a access i QLD ( Seat t = >< a by Pa ae R
Slide 35: Construction Activity Forecasts
CONSTRUCTION ACTIVITY FORECASTS > acrow. TOTAL BUILDING & CONSTRUCTION WORK - FORECAST TOTAL VALUE OF WORK PER SECTOR - FORECAST 100 180 90 140 80 120 , ——_ a 70 5 80 o 60 40 20 “0 ° > oe die 2D ° oS DD Dom oS oH De Prep og 9? Pa go oP uP iP Oo? oP oP BoB FIL FIFI III III III IL LSS 30 residential N
Slide 36: Upcoming Major Transport Infrastructure Projects - Australia
UPCOMING MAJOR TRANSPORT > acrow. INFRASTRUCTURE PROJECTS- AUSTRALIA © North East Link Program, VIC Suburban Rail Loop, VIC T2D Torrens to Darlington, SA Sydney Metro West, NSW * Biggest ever investment in Melbourne's north-east. The North East Link tunnels will fix the missing link in the city’s fr
Slide 37: Industrial Services
INDUSTRIAL SERVICES acrow. Recurring revenue streams * Long-term contracts / long-term relationships * recurring maintenance work M&A Activity * MI Scaffold acquisition acquired Nov 2023 * Targeting further acquisitions in Nth Qld/SA/WA New products/new markets « Expanded into QLD, NSW, WA, SA and T
Slide 38: Existing Systems and Potential Future Growth
Existing Systems Slim-Lite & Slim-Max Systems introduced in last 2 years Acrowall 60 V-shore Acrow Prop AcrowGASS —SuperCuplok Slim-Lite & Slim-Max Acrowall 60 SuperCuplok Veshore Acrow Prop ‘Acrow GASS Powershore 30 Potential future growth Layher Premium Screens Universal Bridge Soldier System Brac
Slide 39: Internal Product Development
INTERNAL PRODUCT DEVELOPMENT PRODUCTS - modular slab formwork system heavy duty shoring system with 50% more capacity than similar systems on the market - multipurpose formwork system, primary use on infrastructure projects (multiple applications) MARKET OPPORTUNITIES - will allow us to target the C
Slide 40: Screens & Jumpform
SCREENS & JUMPFORM SCREENS - light duty protection screens, 3m maximum width and suitable for application where slab loading is limited, and the screen is to only provide edge protection. - heavy duty screen for more complex application, widths up to 5.4m using a simple extending feature. Can be use
Slide 41: Guidance
GUIDANCE EARNINGS GUIDANCE FOR FY24 AS FOLLOWS: acrow. FY24 FY23 %CHG MSENGK (NAN TLIS) GUIDANCE ACTUAL ON FY23* Revenue $215m - $225m $168.5m up 31% EBITDA $72m - $75m $53.2m up 38% FORECAST UNDERPINNED BY: <> Secured hire revenue contracts in 1H FY24 of $34.8m up 18% on pcp. <> Asset acquisitions
Slide 42: ——
——
Slide 43: Product Versatility & Engineering Expertise - Coomera Connector
PRODUCT VERSATILITY & ENGINEERING EXPERTISE COOMERA CONNECTOR STAGE 1, QLD <&} $2m+ secured work to date <} 2026 completion & $2.1 project cost
Slide 44: Product Versatility & Engineering Expertise - Westgate Tunnel
PRODUCT VERSATILITY & ENGINEERING EXPERTISE WESTGATE TUNNEL PROJECT, VIC Southern Portal and Ventilation Structure Climbing system and motorised gantry formwork
Slide 45: Product Versatility & Engineering Expertise - North East Link
PRODUCT VERSATILITY & ENGINEERING EXPERTISE NORTH EAST LINK, VIC & $16.5B total project value & Works started with the majority of large packages commencing @2 FY25 <> Multiple opportunities quoted, we expect to be awarded soon. <} Opportunities for Jumpform on ventilation structures Slim-Lite & Acr
Slide 46: Product Versatility & Engineering Expertise - Sydney Metro West
PRODUCT VERSATILITY & ENGINEERING EXPERTISE SYDNEY METRO WEST, NSW 7 Rail from the new Western Sydney Airport to St Marys € $1lb total project value <} Completion 2030 & Main work is stations similar to the Crows Nest project we completed in FY23 Slim-Lite & Acrowall 80 Powershore _Universal Slim-Ma
Slide 47: Product Versatility & Engineering Expertise - Kidston Pump Hydro
PRODUCT VERSATILITY & ENGINEERING EXPERTISE acrow KIDSTON PUMP HYDRO, QLD . } First of its kind natural battery storage using a disused gold mine. <> $777m total project value <} Completion 2025 & MI Scaffold has secured a $5m Scaffold hire & labour contract < $1.8m total formwork hire/sales secured
Slide 48: Rebrand
REBRAND <> acrow. ONE TEAM. ONE BRAND. ONE ACROW. : Signifies: * Unifying Acrow & all acquisitions (Natform, Uni-span, Heinrich & now MI Scaffold) ¢ Fresh, new and reincarnated Acrow * Clear and concise message to the market on who Acrow is (Engineering and Construction) ¢ Leading supplier of engine
Slide 49: QLD Major Projects
QLD MAJOR PROJECTS 5S§& 8553 85 55 FF FTF FFT EFS FFE SEE SBS New Toowoomba Hospital (DDHHS) $1.38 TENDER | STAGE t CONSTRUCTION 1 STAGE 2 New Coomera Hospital (GCHHS) $1.38 TENDER | STAGE 4 CONSTRUCTION J STAGE 2 DELAY AL New Bundaberg Hospital (WBHHS) $1.28 TENDER | STAGE ¢ CONSTRUCTION 1 STAGE 2
Slide 50: Contact
CONTACT acrow. ACROW HEAD OFFICE 2A Mavis Street Revesby NSW. 2212 & 1300 138 362 Steven Boland Andrew Crowther Matt Caporella MD & CEO CFO coo info@acrow.com.au &® Www.dcrow.com.au Investor enquiries & presentation questions Raising the Standard in Construction. investors@acrow.com.au 50