Slide 1: Investor Presentation Full Year 2022 Results
INVESTOR PRESENTATION FULL YEAR 2022 RESULTS 31 August 2022 FY22 Investor Presentation | 31 August 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER NO RELIANCE FORWARD LOOKING STATEMENTS The information contained in this document is not investment or financial This document contains certain forward looking statements and comments product advice and is not intended to be relied upon as the basis for an about futur
Slide 3: Agenda
AGENDA 01 02 03 04 Business Overview Financial Results Strategy Update Summary and Outlook FY22 Investor Presentation | 31 August 2022 Page 2
Slide 4: Business Overview
BUSINESS OVERVIEW FY22 Investor Presentation | 31 August 2022
Slide 5: Company Overview
COMPANY OVERVIEW END TO END DIVERSIFIED INDUSTRIAL GROUP OFFERING FULL-SERVICE SOLUTION FROM MANUFACTURING TO RECYCLING WA G RE RIN HO $370m $306m FY22 Sales Revenue Net Assets TU US AC IN UF G AN &D 550+ 3200+ LM IST Staff - Aust. & NZ Customers1 Formulation and Collection, CHEMICA RIBUT manufactur
Slide 6: Trans-Tasman Network
TRANS-TASMAN NETWORK DIVERSE AND STRATEGIC GEOGRAPHICAL FOOTPRINT ACROSS AUSTRALIA AND NEW ZEALAND WITH GLOBAL CAPABILITIES. 54 475,000m 2 $160m HIGHLIGHTS Sites across Aust. & NZ Total site size Carrying value of owned sites With more than 54 sites, DGL has an unrivalled footprint across the Trans-
Slide 7: FY22 Financial Highlights
FY22 FINANCIAL HIGHLIGHTS STRONG PERFORMANCE, EXCEEDING PROSPECTUS FORECASTS AND IN LINE WITH UPDATED GUIDANCE PROVIDED IN APRIL 2022 ($m) FY21 FY22 VARIANCE HIGHLIGHTS Sales Revenue 196.5 2 369.8 173.3 88% Strong FY22 performance with all earnings metrics ahead of prior years, Gross Profit 70.6 2 1
Slide 8: 2022 – A Year of Growth and Expansion
2022 – A YEAR OF GROWTH AND EXPANSION ORGANIC GROWTH AND ACQUISITIONS HAVE INCREASED SIZE AND SCALE OF DGL GROUP DURING FY22 EMPLOYEES +91% YOY ACTIVE +172% YOY CUSTOMERS1 HIGHLIGHTS 554 Size of DGL team almost doubled over 3261 last 12 months following acquisitions and scaling of team organically t
Slide 9: FY22 Acquisitions Overview
FY22 ACQUISITIONS OVERVIEW ACQUISITIONS DRIVE SCALE AND CAPABILITY DURING FY22 HIGHLIGHTS JUL 2021 DEC 2021 11 business acquired during FY22, adding 217 people to the Group. Acquisitions increase scale and add SEPT 2021 MAR 2022 capability across the Group with new intellectual property, sites, tale
Slide 10: Financial Results FY22
FINANCIAL RESULTS FY22 FY22 Investor Presentation | 31 August 2022
Slide 11: FY22 Group Performance
FY22 GROUP PERFORMANCE STRONG PERFORMANCE, EXCEEDING PROSPECTUS FORECASTS AND IN LINE WITH UPDATED GUIDANCE PROVIDED IN APRIL 2022 SALES REVENUE +88% YOY UNDERLYING EBITDA1 +133% YOY CUSTOMER REVENUE BY INDUSTRY3 ($m) ($m) Other Material 7% 370 66 Environmental Warehousing 24% & Distribution 14% 180
Slide 12: FY22 Group Performance
FY22 GROUP PERFORMANCE FINANCIAL PERFORMANCE SUMMARY Proforma % of Gross % of Gross Variance HIGHLIGHTS Y/E 30 June (A$m) FY211 Profit FY22 Profit on FY22 FY22 sales revenue 4% higher than guidance given in April 22 ($354m). $160m higher than prospectus. Sales revenue 196.5 369.8 88% High sales reve
Slide 13: FY22 Divisional Revenue
FY22 DIVISIONAL REVENUE DIVISIONAL REVENUE1 ($m) +142% YOY +54% YOY +40% YOY 235 Acquisition contribution 112 Underlying business 123 94 97 63 88 9 62 63 54 41 28 PF FY20² PF FY21² FY22 PF FY20² PF FY21² FY22 PF FY20² PF FY21² FY22 Chemical Manufacturing Warehousing & Distribution Environmental Solu
Slide 14: Balance Sheet
BALANCE SHEET BALANCE SHEET SUMMARY 30 JUNE 30 JUNE COMMENTARY ($m) Net assets increased to $306m, 57% higher than last 2021 2022 Trade and other receivables 22.5 56.6 year. Growth funded by earnings, debt, and scrip. Inventories 14.4 48.2 Growth in net working capital which has increased from Other
Slide 15: Working Capital and Balance Sheet Strength
WORKING CAPITAL AND BALANCE SHEET STRENGTH HIGHLIGHTS NET WORKING CAPITAL 65 INDICATIVE INVENTORY DAYS3 Net working capital has increased to ($m) $43m with growth of Group. If we Secured 22 Payables 75 exclude the secured payables funded by the bank, DGL’s 43 48 investment in net working capital 33
Slide 16: Net Debt
NET DEBT NET DEBT SUMMARY 31 DEC 30 JUNE 30 JUNE HIGHLIGHTS ($m) Total available bank facility 2020 2021 2022 Bank loans 42.8 16.1 67.8 (Borrowing, secured payables, and Other borrowings 0.0 4.9 1.7 other ancillaries) is $135m³. Secured payables - - 22.1 Total at June 2022 drawn is $90m³ Gross bank
Slide 17: Cash Flow
CASH FLOW CASH FLOW SUMMARY PRO FORMA COMMENTARY Y/E 30 JUNE ($m) FY22 $102m of investing cash flows in FY22, partially FY211 Receipts from customers 203.7 339.8 funded by operating and financing activities. Payments to suppliers and employees (174.0) (310.3) $100m of capital raised in FY21 now depl
Slide 18: Cash Flow Bridge
CASH FLOW BRIDGE UNDERLYING OPERATING CASH FLOW SUMMARY CASH CONVERSION Invested PF PF 93% 100% Stock HIGHLIGHTS ($m) FY22 Underlying operating cash flow has FY201 FY211 77% Operating Cash Flow 17.6 28.0 24.3 increased to $33m. 50% Tax payments 0.2 0.2 5.4 If not for a strategic investment in Acquis
Slide 19: Strategy Update
STRATEGY UPDATE FY22 Investor Presentation | 31 August 2022
Slide 20: Industry Trends
SUPPORTIVE MARKET CONDITIONS INDUSTRY TRENDS • Onshoring of chemical supply chain • Customers holding more stock on shore CHEMICAL MANUFACTURING $40.8bn market opportunity¹ MARKET DRIVERS • Growing agricultural sector driving demand WAREHOUSING for pesticides, herbicides and fertilisers ENVIRONMENTA
Slide 21: Clear Strategy to Drive Growth
CLEAR STRATEGY TO DRIVE GROWTH OUR OBJECTIVE: TO BE A LEADING FULLY INTEGRATED, END-TO-END DIVERSIFIED INDUSTRIAL GROUP STRATEGIC PRIORITIES DRIVE CROSS SELLING ACHIEVE FURTHER INVESTMENT IN IDENTIFY BETWEEN DIVISIONS ECONOMIES OF SCALE CAPITAL PROJECTS ACQUISITIONS Encourage greater cross-usage of
Slide 22: FY22 Strategy Progress
FY22 STRATEGY PROGRESS SUBSTANTIAL PROGRESS ACROSS ALL KEY AREAS OF FOCUS DRIVE CROSS SELLING ACHIEVE FURTHER INVESTMENT IN IDENTIFY BETWEEN DIVISIONS ECONOMIES OF SCALE CAPITAL PROJECTS ACQUISITIONS • Newly acquired businesses • Increased utilisation of • Establishing manufacturing • Acquired 11 bu
Slide 23: FY22 Acquisition Case Study – Austech Chemicals
FY22 ACQUISITION CASE STUDY – AUSTECH CHEMICALS WITH DGL'S SCALE, AUSTECH PROVIDES OPPORTUNITIES IN RENEWABLE ENERGY AND MINING SECTOR INTEGRATION • Acquired in November 2021 for $13.0 million cash plus 5.3 fully paid ordinary DGL shares • Austech Chemicals specialises in the development and manufac
Slide 24: Property and Projects
PROPERTY AND PROJECTS INVESTMENT IN STRATEGIC PROPERTY PROVIDES FLEXIBILITY AND SECURITY VALUE OF OWNED PROPERTY PORTFOLIO ($m) FY22 PROJECT HIGHLIGHTS & FY23 OUTLOOK 160 Expansion of formulation and blending manufacturing plant across Australia. 107 Completion of manufacturing plants in regional Vi
Slide 25: Development of an ESG Framework
DEVELOPMENT OF AN ESG FRAMEWORK ESG FRAMEWORK REFLECTS EVOLUTION AND MATURATION OF OUR COMPANY ESG DEVELOPMENT • Commenced the development of an Environmental, Social and Governance (ESG) framework to support the business to better understand and manage its ESG risks and opportunities. • External be
Slide 26: No Significant Health, Safety and Environmental Breaches During FY22
QUALITY, HEALTH, SAFETY & ENVIRONMENT NO SIGNIFICANT HEALTH, SAFETY AND ENVIRONMENTAL BREACHES DURING FY22 Health and Environmental Licence and Accreditation Portfolio Safety Plan Management Plan 20 years of accumulated IP, licences and permits to ensure safety in operations, and environmental and q
Slide 27: FY23 Strategy Focus Areas
FY23 STRATEGY FOCUS AREAS A CLEAR FOCUS ON EXECUTING ON OUR STRATEGY TO BE A FULL-SERVICE CHEMICALS AND MATERIALS BUSINESS DRIVE CROSS SELLING ACHIEVE FURTHER INVESTMENT IN IDENTIFY BETWEEN DIVISIONS ECONOMIES OF SCALE CAPITAL PROJECTS ACQUISITIONS PLANNED ACTIVITIES IN FY23 • Redeployment of key st
Slide 28: Strategic Capital Allocation
STRATEGIC CAPITAL ALLOCATION UPCOMING ACQUISITIONS Flexichem • Flexichem specialise in complex silicone-based G IN manufacturing targeted for water treatment, industrial and LO L F I L UR specialty product applications for both domestic and export GI CT FU E ST customers. T UFA EA ICS BTX Clarkson C
Slide 29: Outlook and Summary
OUTLOOK AND SUMMARY Presented by Simon Henry, CEO FY22 Investor Presentation | 31 August 2022
Slide 30: Summary and Outlook
SUMMARY AND OUTLOOK • Business has performed strongly in FY22 with earnings results in-line with guidance announced in April 2022. • Strategy continues to be focused on growing organically and through acquisitions that provide strategic value to DGL. • Opportunities to work with new and existing Tra
Slide 31: Q&A
Q&A FY22 Investor Presentation | 31 August 2022
Slide 32: Pro-Forma Results as Presented in the IPO Prospectus
APPENDIX PRO-FORMA RESULTS AS PRESENTED IN THE IPO PROSPECTUS AND PREVIOUS RESULTS ANNOUNCEMENTS FY20, 1H FY21 include Chem Pack contribution on a pro-forma basis as detailed in the IPO Prospectus and previous DGL announcements. Summarised in the tables below. Summary Pro-forma Summary Pro-forma 31