Lindsay Australia Limited · ASX:LAU
Lindsay Australia — FY2024 Earnings Presentation
30 slides from Lindsay Australia's earnings presentation, Aug 22, 2024
Slide 1: FY24 Result Presentation – Lindsay Australia Limited
ASX: LAU 22 August 2024 ASX Announcement FY24 Result Presentation – Lindsay Australia Limited Attached is Lindsay Australia’s Results Presentation for the financial year ended 30 June 2024. Authorised for release by: Release authorised by Lindsay Australia Limited Board of Directors For further info
Slide 2: Investor Presentation FY2024
Investor Presentation FY2024
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Lindsay Australia Limited (“LAU”). The In particular, no representation or warranty, express or implied, is given as to the information contained in this presentation is for information purposes only. The accuracy, completeness or correctness, likeli
Slide 4: Overview
OVERVIEW
Slide 5: FY2024 Overview
FY2024 Overview Group at a glance +1,850 +13.5k +44 People Customers Unique Locations +600 +350 +750 Containers Prime Movers Reefer Trailers PG 4
Slide 6: Lindsay Rural
Lindsay Rural Rural Trade and Merchandising Australia’s only rural merchandiser offering with a fully integrated logistics solution +40 years of operating the fruit loop model Market leading speed of service Largest packaging reseller to the horticulture industry Differentiator from traditional Rura
Slide 7: Lindsay Transport
Lindsay Transport Refrigerated Logistics Australia’s largest refrigerated road and rail provider Fleet of +350 prime movers, +750 trailers, +600 containers National network coverage with 24 cold-chain sites End-to-end multi modal solutions nation-wide Diversified customer coverage Blue chip customer
Slide 8: Strategic Focus
Strategic Focus To be the first choice in refrigerated transport throughout Australia WHY CHOOSE LINDSAY? People Customers Shareholders An employer of choice. Industry-leading service with Target consistent growth, Values driven, performance- over 70 years of experience with minimum 20% ROIC based c
Slide 9: Safety & Sustainability
Safety & Sustainability • Significant investment in safety leadership & capability – new Head of SRC as well as additional resources SAFETY, RISK & • Implementing new Safety strategy focused on operating discipline COMPLIANCE • LTIFRs increased from 11.1 to 18.8 largely the consequence of new (SRC)
Slide 10: Financial Highlights
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Slide 11: Key Highlights
Key Highlights Diversified operations underpin solid FY24 performance despite challenging second half Operating Revenue Underlying1 EBITDA Underlying1 NPAT Net Debt2 LTIFR3 $804.4m $92.1m $30.4m $106.9m 18.8 Up 18.9% Up 2.1% Down 17.0% Down 0.3% Up 68.9% Net leverage ratio4 ROIC5 Underlying1 EPS Ful
Slide 12: Group Performance
Notes: Group Performance 1 Underlying figures exclude the impact of AASB 16 and significant items that are non-recurring or items incurred outside of ordinary operations. FY24 underlying1 EBITDA Bridge ($’M) • Positive results in challenging operating conditions 3.3 • Second half of FY24 was impacte
Slide 13: FY2024 Key Highlights
FY2024 Key Highlights 12.1 Group Revenues 804 Underlying EPS1 ($’M) 87 676 9.7 553 6.2 435 412 717 Notes: 1 Refer to Appendix 1 for 3.2 2.6 reconciliation of underlying figures. Underlying figures exclude the impact of AASB 16 and significant items that are non- FY20 FY21 FY22 FY23 FY24 recurring or
Slide 14: WB Hunter
WB Hunter WB Hunter Retail Sales ($’M) • Integrated from August 2024 through challenging operating conditions, foot traffic was down ~4% while average basket values were down ~2.0% • Trade and building products down on soft housing and renovation market • Loyalty sales were up ~5% bringing total loy
Slide 15: Capital Expenditure
Capital Expenditure CAPITAL EXPENDITURE ($’M) 22 KEY CAPITAL ITEMS FY2024 FY2025F 20 16 28 $16.9m $22.3m 10 Prime Movers 24 12 36 32 26 27 15 14 $11.8m $12.5m Reefer Trailers FY20 FY21 FY22 FY23 FY24 FY25F Maintenance Growth SRL Assets • $52m spent on capex in FY24, including $32m on asset replaceme
Slide 16: Borrowings
Notes: Borrowings 1 Group borrowings excludes property/other right of use lease liabilities 2 Net Leverage ratio = Net Debt/Underlying EBITDA as at 30 June 2024 Group Borrowings1 ($’M) 170 30.00% Millions 160 25.00% • Net leverage improved after delivery of $52m capital plan 150 20 13 140 20.00% • R
Slide 17: Cash Flow
Cash Flow Operating Cash Flow Free Cash Flow ($’M) ($’M) c 0 2 ( ) 90 92 ( ) 60 45 4 2 40 (44) 38 52 40 86 103 FY20 FY21 FY22 FY23 FY24 Underying EBITDA Operating Cash Flow • Strong operating and free cash generation • Accelerated tax payments to commence in FY25 (FY24 nil), as COVID tax incentives
Slide 18: Dividends
Dividends Dividends per Share (cents) 1.90 2.10 Unfranked • Declared final 2.8 cps dividend (fully franked) bringing 1.40 full year in-line with FY2023 3.00 2.80 • Uplift in payout ratio1 from 41% to 50% 1.00 1.20 Dividends 1.80 0.50 0.50 • Future dividends expected to be fully franked FY20 FY21 FY2
Slide 19: Outlook
Outlook • Additional capacity has entered the logistics market over the last 12 - 18 months while tender activity has increased, however Lindsay’s conversion rate remains positive • Blue chip customers continue to value safety, service offering, Market and supply chain assurity Dynamics • Peak in in
Slide 20: Appendix
APPENDIX
Slide 21: Segment Performance
SEGMENT PERFORMANCE
Slide 22: Lindsay Transport
Lindsay Transport Transport Revenue 565 ($’M) 513 396 • Embedded growth post SRL collapse in March 2023 297 282 • Continued success in acquiring new blue-chip customers and deepening relationships with existing ones, who provide essential food staples throughout market cycles FY20 FY21 FY22 FY23 FY2
Slide 23: Lindsay Transport – Rail and Road Revenue
Lindsay Transport 151 Rail Revenue1 ($’M) 126 • Strong demand and growth in rail operations • Ongoing investment in fleet quality and capacity 88 • Rail disruptions resulting in +40 days E/W corridor unavailability 50 Rail 34 division • New above rail operators bring additional capacity to the secto
Slide 24: Lindsay Rural
Notes: 1 Underlying figures exclude the Lindsay Rural impact of AASB 16 and significant items that are non-recurring or items incurred outside of ordinary operations. Rural Sales 163 ($’M) 157 152 • Challenging trading conditions, low grower confidence, strong 138 competition and adverse weather, pa
Slide 25: Reconciliations
Reconciliations Underlying results Key finance metrics 2024 ($'000) EBITDA EBIT PBT NPAT Net Borrowings ($'000) 2024 2023 Statutory Result 106,898 51,455 39,758 27,269 Reported borrowings 38,636 45,916 Depreciation right of use properties (14,975) - - - Lease liabilities 208,413 188,120 Finance cost
Slide 26: Historical Performance (Pre & Post AASB 16)
Notes 1 Pre AASB 16 figures exclude the impact of AASB 16 Historical Performance (Pre & Post AASB 16) and significant items that are non-recurring or items incurred outside of ordinary operations. ‘ ost’ figures add AASB 16 related items back. Group underlying EBITDA1 Group underlying EBIT1 ($’M) 11
Slide 27: Corporate Snapshot
Corporate Snapshot ASX:LAU Overview 12-month share price performance and volume Board of Directors and Key Management FY24 revenue $804.4m KMP Role Mr Ian Williams Non-Executive Director & Chair FY24 underlying1 EBITDA $92.1m Mr Clayton McDonald Chief Executive Officer Cash balance as at 30 June 202
Slide 28: Paddock to Port
The Lindsay end-to-end solution Creating Customer Value with our leading ‘Paddock to Port’ & ‘Fruit Loop’ processes AGRONOMY • Technical Expertise • Pest & Disease Management • Innovative Farming Techniques & Technologies Advice ACCOUNT MANAGEMENT • Forecast, Manage & Service Products & Lead Times P
Slide 29: Our Network and Reach
Our Network and Reach Building resilience & scale Key Horticulture Regions By Density Network & Key Freight Lanes PG 28
Slide 30: Our National Transport Network
Our National Transport Network Adelaide Gatton Atherton Innisfail Ayr Invergordon National Regional Brisbane Retail Mareeba Adelaide Bowen Bundaberg Brisbane Mildura Brisbane Warehouse Mundubbera Brisbane Childers Bowen Murwillumbah Markets (LFL) Coffs Harbour Brandon Nambour Melbourne Emerald Bunda