Lindsay Australia Limited · ASX:LAU
Lindsay Australia — FY2023 Earnings Presentation
32 slides from Lindsay Australia's earnings presentation, Aug 28, 2023
Slide 1: FY2023 Result Presentation - Lindsay Australia Limited
152 Postle Street Acacia Ridge QLD 4110 Locked Bag 2004 Archerfield Qld 4108 ABN 81 061 642 733 P: 07 3240 4900 F: 07 3054 0240 www.lindsayaustralia.com.au ASX: LAU 28 August 2023 ASX Announcement FY2023 Result Presentation - Lindsay Australia Limited Attached is Lindsay Australia Limited’s Results
Slide 2: Lindsay Australia Results Presentation FY2023
Clay McDonald (CEO) & Justin Green (CFO) LINDSAY AUSTRALIA RESULTS PRESENTATION FY2023 (ASX: LAU)
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
oe OVERVIEW
Slide 5: Group at a Glance FY2023
GROUP AT A GLANCE FY2023 350 700 +650 +31 +3.3k TRUCKS REEFER TRAILERS CONTAINERS SITES & STORES CUSTOMERS +65m +70m 1,650 +$670m TRUCK KMs P.A. RAIL KMs P.A. EMPLOYEES GROUP REVENUE PG 4
Slide 6: Strong Macro Conditions
1 Centre for International Economics (CIE), Contribution of STRONG MACRO CONDITIONS Australian horticulture industry (July 2023) 2 Australian Treasury, Intergenerational Report (2023) 3 BIRTE, Australian aggregate freight forecasts (November 2022) Projected horticulture GVP forecasts1 Population lev
Slide 7: Strategic Highlights
STRATEGIC HIGHLIGHTS ROAD RAIL RURAL 1 Organically grow road volumes & 1 Develop rail solutions for 1 Expand into new regions & markets inorganically diversify customers KEY 2 2 2 Increase rail capacity, service Increase market share TARGETS Add additional cold chain capacity frequency & destination
Slide 8: Key Highlights
KEY HIGHLIGHTS Road, Rail & Rural strategy sets platform for transformative year OPERATING REVENUE UNDERLYING EBITDA1 UNDERLYING PBT1 NET DEBT2 LTIFR3 $676.2m $90.3m $52.3m $107.1m 11.1 up 22.3% up 50.2% up 95.2% up 8.1% down 27.3% NET LEVERAGE RATIO4 ROIC5 UNDERLYING EPS1 FULL YEAR DIVIDEND FTEs6 1
Slide 9: Safety & Sustainability
SAFETY & SUSTAINABILITY Safety & Compliance Sustainability ▪ Ongoing investment in team, resources, and ▪ Developing an ESG strategy and roadmap to technology. 2030. ▪ "Seeing eye" machines installed in 100% of our ▪ Completed FY2022 Carbon Footprint analysis. prime movers. ▪ Increase freight moveme
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 11: FY2023 Key Highlights
FY2023 KEY HIGHLIGHTS Road, Rail & Rural strategy sets platform for transformative year Group Revenues 676 Underlying EPS1 12.1 ($’M) 553 6.2 435 412 360 3.2 2.4 2.6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Group underlying EBITDA1 ROIC 2 90.3 ($’M) 24.8% 15.6% 60.1 10.3% 8.3% 8.5% 45.3 40.
Slide 12: Group Performance
GROUP PERFORMANCE FY23 underlying EBITDA1 Bridge ($’M) Transport Dynamics Industry Surge in Diversified Capital Essential service consolidation demand network investment provider Rural Dynamics Volatile Rising cost of Product mix Horticulture Leverage pricing doing business focus Transport division
Slide 13: Capital Expenditure
CAPITAL EXPENDITURE KEY CAPITAL ITEMS FY2023 1 FY2024F COMMENTARY ▪ Consistent investment in maintaining and expanding fleet. $27.5m $21.7m ▪ Acquired $22.3m in second hand assets post the collapse of major refrigerated Prime Movers competitor, Scotts Refrigerated Logistics (SRL). ▪ Forecast $36m ma
Slide 14: Borrowings
BORROWINGS 170 Group Borrowings1 30% 160 ($’M) 25% SRL Assets Millions 150 20 ▪ Disciplined capital allocation combined with earnings growth delivered 20% 140 record net leverage of 1.19x [Target <1.5x]. 14 130 15% Improving ▪ Record ROIC of 24.8% attributable to strategic capital investments and 6
Slide 15: Cash Flow
CASH FLOW Operating Cash Flow Free Cash Flow1 100 ($’M) 100 ($’M) Millions Millions 90 90 c 90 80 80 70 70 60 60 45 60 50 50 38 40 40 40 30 30 20 20 10 10 35 38 52 40 86 - - FY19 FY20 FY21 FY22 FY23 Underying EBITDA Operating Cash Flow ▪ 95% operating cash conversion. ▪ No tax payments made in FY23
Slide 16: Dividends
DIVIDENDS Dividends per Share (cents) 3.0 Unfranked ▪ Declared final 3 cps dividend (fully franked) up 53% on the prior year 1.80 and a payout ratio1 of 41%. ▪ Acquisition of WB Hunter provides access to $8.1m in franking credits. 1.10 0.50 Dividends 0.50 ▪ Future dividends expected to be fully fran
Slide 17: WB Hunter Acquisition
WB HUNTER ACQUISITION Rural Sales ($’M) ▪ Acquired for an enterprise value of $34.6m in August 2023. Pro forma (PF) Lindsay Rural Hunter Rural Division FY23 FY23PF FY23PF ▪ Expected to deliver high single digit accretion pre-synergies in pro-forma FY24. Revenue $163.0m $100.3m $263.2m Key Metrics ▪
Slide 18: Outlook
OUTLOOK ▪ Market dynamics remain positive. ▪ Strategically positioned to capitalise on current market opportunities, leveraging our scale, reach and unique service offering supported by the strength in our balance sheet. Market ▪ Anticipate further industry consolidation in both Transport and Rural
Slide 19: Appendix
APPENDIX
Slide 20: Segment Performance
SEGMENT PERFORMANCE
Slide 21: Lindsay Transport
LINDSAY TRANSPORT Transport Revenue ($’M) 513 ▪ Transport’s revenues grew 29.5% driven by significant demand in road and rail services, industry consolidation and high fuel levy recoveries due to increased diesel prices. 396 ▪ Achieved a record EBITDA of $101.1m (+52.7%) due to rail expansion, road
Slide 22: Lindsay Transport
LINDSAY TRANSPORT 126 Rail Revenue1 ($’M) ▪ Rail revenue rose 43.4% driven by consolidation, rising utilisation, high fuel recoveries and 88 fleet expansion from 404 to 650 rail boxes. ▪ Continue to integrate recently acquired rail assets 50 Rail division ▪ Additional facilities will boost rail capa
Slide 23: Fleet Overview
FLEET OVERVIEW KEY ASSETS FY2022 FY2023 Expected Fleet Size [Avg Age] Fleet Size [Avg Age] Life ▪ Consistent investment in fleet ensuring safety, reliability and fuel efficiency [maintain prime movers < 5 years]. Road Assets 303 [4.4 yrs.] 350 [4.1 yrs.] 7 – 10 years Prime Movers Capital ▪ Largest r
Slide 24: Lindsay Rural
LINDSAY RURAL Rural Sales 163 ($’M) 157 ▪ Sales increased 4.0% to $163.0m supported by expanded sales team and 138 emphasis on high value horticulture regions. 129 ▪ EBITDA1 decreased 10.7% impacted by volatile price movements, inventory overhang in a declining market and rising CODB primarily relat
Slide 25: Lindsay Rural
LINDSAY RURAL Rural FY19 Sales Mix (%) Rural FY23 Sales Mix (%) 16% 15% 30% 27% Packaging Packaging ▪ 75% of sales driven from core four (packaging, Checmicals Checmicals chemicals, fertilisers & nutrients). 22% 74% Fertiliers 75% Fertiliers 20% Core 4 Nutrients ▪ One of the largest independent pack
Slide 26: Lindsay Australia Overview
LINDSAY AUSTRALIA OVERVIEW
Slide 27: Lindsay Australia's End-to-End Food Supply Chain Solutions
LINDSAY AUSTRALIA’S END-TO-END FOOD SUPPLY CHAIN SOLUTIONS Lindsay Australia Ltd (ASX: LAU) is an integrated transport, logistics and rural supply company with a specific focus on servicing customers in the food processing, food services, fresh produce, agriculture and horticulture industries. Core
Slide 28: The Lindsay End-to-End Solution
THE LINDSAY END-TO-END SOLUTION OUR VALUE CHAIN NATIONAL FREIGHT LINDSAY KEY LANE COVERAGE ASSETS 21 TRANSPORT DEPOTS/ COLD STORES NATIONALLY 21 RURAL STORES NATIONALLY 350 PRIME MOVERS, 700 REEFER TRAILERS, 450 REEFER CONTANIERS, 350 SKELS, 120 RIGIDS 1,650 EMPLOYEES – 850 DRIVERS PG 27
Slide 29: Our National Network
OUR NATIONAL NETWORK LINDSAY RURAL Mundubbera Innisfail Murwillumbah Mackay Adelaide Nambour Mareeba Atherton Stanthorpe Melbourne Ayr Tully Mildura Brisbane Retail Woolgoolga Mundubbera Brisbane Warehouse Nambour Bowen Perth LINDSAY Stanthorpe Brandon TRANSPORT Bundaberg Sydney Childers Adelaide Tu
Slide 30: Corporate Snapshot
CORPORATE SNAPSHOT ASX Stock Code [LAU] 12-month share price performance and volume Board of Directors and Key Management KMP Role FY23 revenue $676.2m Mr Ian Williams Non-Executive Director & Chair FY23 underlying1 EBITDA $90.3m Mr Clayton McDonald Chief Executive Office Cash balance as at 30 June
Slide 31: Reconciliations
RECONCILIATIONS Underlying results Key finance metrics 2023 ($'000) EBITDA EBIT PBT NPAT Net Borrowings ($'000) 2023 2022 Statutory Result 101,294 58,461 49,397 34,517 Reported borrowings 45,916 32,570 Depreciation right of use properties (10,704) - - - Lease liabilities 188,120 173,905 Finance cost
Slide 32: Contact Us
CONTACT US Matthew Hefren, Head of Strategy & FP&A Ph: (07) 3240 4900 E: Matthew.Hefren@lindsayaustralia.com.au www.lindsayaustralia.com.au https://www.linkedin.com/company/lindsay-australia-ltd/