Slide 1: FY22 Results Presentation
Leading national distributor and service provider to the Australian electrical market FY22 RESULTS PRESENTATION | 30 AUGUST 2022 1
Slide 2: Important notice & disclaimer
Important notice & disclaimer NO RELIANCE The information contained in this document is not investment or financial product advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. The information provided in this pr
Slide 3: Presenters
Presenters Michael Sainsbury Mohamed Yoosuff Executive Director & CEO Executive Director & CFO IPD GROUP FY22 RESULTS 3 PRESENTATION
Slide 4: What we'll share today
What we’ll share today FY22 RESULTS PRESENTATION | – FY22 Overview – FY22 Financial performance – Our focus – Outlook IPD GROUP FY22 RESULTS 4 PRESENTATION
Slide 5: FY22 Overview
FY22 RESULTS PRESENTATION | FY22 Overview IPD GROUP FY22 RESULTS 5 PRESENTATION
Slide 6: FY22 Overview
FY22 Overview Extension of distribution HTC and Gemtek Successful listing on Positive outlook for agreement with ABB acquisition complete ASX (December 2021) continued growth • Successful transition • Integration into IPD offices raising $20m of new • Continued buoyant of additional products capital
Slide 7: FY22 Overview: Financial performance
FY22 Overview Financial perfomance Strong organic and inorganic growth for the Group $180.5m $22.1m $18.5m $12.6m 3.7cents Pro forma revenue Pro forma EBITDA Pro forma EBIT Pro forma NPAT Dividend1 32.1% greater than prospectus forecast Up 26.6% (PCP $142.6m) Up 38.1% (PCP $16.0m) Up 54.2% (PCP $12.
Slide 8: Prospectus forecast
FY22 Overview Prospectus forecast FY22 prospectus FY22 pro forma % variance Strong operating performance delivers revenue, gross profit, $m pro forma actuals1 (vs prospectus) EBITDA and NPAT above prospectus forecasts forecast Revenue 169.6 180.5 6.4% Revenue outperformance driven by: • expanded dis
Slide 9: Financial performance
FY22 RESULTS PRESENTATION | Financial performance IPD GROUP FY22 RESULTS 9 PRESENTATION
Slide 10: Sales growth & margins
Sales growth & margins Record revenue results achieved Pro forma revenue and Statutory revenue gross profit margins1 • Pro forma revenue of $180.5 million, up 26.6% on pcp – strong revenue growth has been achieved despite the effect of lockdown in some states as well as global supply chain issues –
Slide 11: Sales growth & margins
Sales growth & margins Sales growth highlights Successful Significant growth Elsteel Techno On 1 October 2021, On 4 April 2022 execution of in the automation & revenue continues IPD acquired IPD acquired the the expanded control products to grow due to 100% interest in assets of distribution complia
Slide 12: Earnings growth & margins
Earnings growth & margins Record earnings results achieved Pro forma1 EBITDA Statutory EBITDA and and EBITDA margin EBITDA margin • Pro forma EBITDA of $22.1 million up 38.1% on pcp, representing a pro forma EBITDA margin of 12.2% 20.2 – pro forma EBITDA assumes acquisition of Addelec Control Logic
Slide 13: Strong & flexible financial position
Strong & flexible financial position Balance Sheet Cash at bank ($m) Net assets ($m) As at 30 Jun 2021 As at As at $m (Prospectus)1 31 Dec 2021 30 Jun 2022 No borrowings 25.4 on balance sheet 63.4 Total current assets 71.8 87.5 97.0 57.2 Total non-current assets 25.6 28.6 27.8 19.8 50.0 1 Total asse
Slide 14: Cash flow
Cash flow Pro forma cash flow FY22 prospectus Variance vs FY22 Pro forma Pro forma pro forma prospectus pro • Pro forma operating free cash flow of $10.7 million FY21 FY22 $m forecast forma forecast with an operating free cashflow conversion (pre tax) of 73.0% EBITDA 16.0 22.1 18.1 22.1% • Working c
Slide 15: Diligent management of working capital & capex
Diligent management of working capital & capex Net working capital (NWC) CAPEX summary • Net working capital requirements • Net CAPEX primarily relates 25.0 have been increasing year on year, in to computer equipment, motor line with the acquisitions of Addelec vehicles and leasehold in August 2019
Slide 16: Our focus
FY22 RESULTS PRESENTATION | Our focus IPD GROUP FY22 RESULTS 16 PRESENTATION
Slide 17: IPD are exposed to a number of high growth areas
IPD are exposed to a number of high growth areas Electric Renewable Industrial Data Modular vehicles energy control systems centres switchboard Public and private sector Increased focus on High profile cyber attacks Rising demand for systems commitments to transition compliance measures on companies
Slide 18: Strategic priorities
Strategic priorities Become a significant EV hardware distribution agreement with ABB end to end solution provider Design and project delivery skills – Gemtek to the EV charger market Appointment of an experienced leader to the EV business Unit – David Sullivan Increase the scale of business develop
Slide 19: Strategic priorities
Strategic priorities Acquisitions The Group has a proven track record of successful acquisitions IPD continues to assess potential complementary acquisitions that add to its customer offering Potential targets have been identified and preliminary discussions are taking place Strategic sales focus In
Slide 20: Outlook
FY22 RESULTS PRESENTATION | Outlook IPD GROUP FY22 RESULTS 20 PRESENTATION
Slide 21: External factors
External factors Buoyant Market Regulatory Environment Electrification of the Economy • Infrastructure • Decarbonisation • Renewables • Mining • Mandatory emission reduction • Energy Management • Incentive Schemes • EV Chargers Global Supply Chain COVID-19 Sri Lanka • Cost increase of materials and
Slide 22: Trading update & outlook
Trading update & outlook FY23 outlook IPD’s business Supply chain Board will provide an continues to disruptions and update on Q1 trading perform well in a global trade performance at the buoyant market continue to remain Company’s AGM on uncertain 10 November 2022 IPD GROUP FY22 RESULTS 22 PRESENTA
Slide 23: Questions
FY22 RESULTS PRESENTATION | Questions IPD GROUP FY22 RESULTS 23 PRESENTATION
Slide 24: Supplementary information
FY22 RESULTS PRESENTATION | Supplementary information IPD GROUP FY22 RESULTS 24 PRESENTATION
Slide 25: Business summary
Business summary IPD’s business is split between the sale of infrastructure products and the provision of services to businesses across Australia FY22 pro forma Customer Revenue revenue split Description Brands types End users/industries Locations model Commercial Sale and Switchboard construction,
Slide 26: IPD's history of growth
IPD’s history of growth Reliably serving Australia for over 70 years Evolution of IPD Key acquisitions 1950s 1968 1989 1998 2005 2014 2017 2018 2019 2020 2021 2022 1950s 1968 1979 1989 2005 2008 2010 2014 2017 2018 2019 2020 2021 2022 English Electric GEC Industrial Management team Sri Lankan Acquir
Slide 27: Appendices
FY22 RESULTS PRESENTATION | Appendices IPD GROUP FY22 RESULTS 27 PRESENTATION
Slide 28: Profit & loss
Profit & loss Summary pro forma profit and loss Pro forma Pro forma % $m FY21 FY22 change Revenue 142.6 180.5 26.6% Gross profit 54.7 68.6 25.4% Other income 0.6 0.8 33.3% Operating expenses 39.3 47.3 20.4% EBITDA 16.0 22.1 38.1% Depreciation and amortisation 4.0 3.6 (10.0%) EBIT 12.0 18.5 54.2% Net
Slide 29: Statutory balance sheet
Balance Statutory balance sheet 31 Dec 21 30 Jun 22 $m Statutory Statutory Cash 19.8 25.4 Trade and other receivables 35.2 37.6 Inventories 31.3 32.9 Other current assets 1.2 1.1 Total current assets 87.5 97.0 Right-of-use assets 12.5 11.1 PP&E 2.9 3.4 Intangibles 10.1 10.5 Deferred tax assets 3 2.9
Slide 30: P&L Reconciliation
P&L Reconciliation $m FY19 FY20 FY21 FY22 $m FY19 FY20 FY21 FY22 Statutory revenue 75.8 87.5 118.1 176.8 Statutory EBIT 0.6 5.8 9.6 16.6 Impact of acquisitions 59.2 53.9 24.6 3.7 Offer costs - - - 1.6 Pro forma revenue 135.0 141.4 142.6 180.5 Underlying EBIT 0.6 5.8 9.6 18.2 $m FY19 FY20 FY21 FY22 $