Vulcan Steel Ltd. · ASX:VSL
Vulcan Steel — Investor Presentation (August 2024)
34 slides from Vulcan Steel's investor presentation, Aug 27, 2024
Slide 1: Results Presentation FY24
VULCAN. RESULTS PRESENTATION FY24
Slide 2: Positioned for growth
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Positioned Our culture is founded on teamwork and a shared commitment to continuous improvement. It is this collective ambition for growth that propels us for growth forward. Focusing on what we can control, creating momentum with each coordinated effort en
Slide 3: Disclaimer
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Disclaimer The material contained in this document is a They may also be based on factors which are subject presentation of information about Vulcan Steel Limited’s to significant uncertainties and contingencies which (Vulcan) activities current as of 27 Au
Slide 4: Agenda
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 01 OVERVIEW 02 FINANCIALS AND OPERATIONS Agenda 03 OUTLOOK AND GUIDANCE 04 Q&A 05 SUPPLEMENTARY INFORMATION 4
Slide 5: Overview
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 01 Overview 5
Slide 6: Performance highlights
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Performance highlights The combination of operational and cost discipline has enabled Vulcan to continue to deliver sound financial returns in FY24 A DJ U ST E D E B I T DA 2 N Z $ C U STO M E RS T R A NSACT E D REVENUE NZ$ ( E XC L U D I N G S I G N I F I
Slide 7: Vulcan's Business
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Vulcan’s Business Vulcan is a leading steel & metals distributor and value added processor across Australia and New Zealand STEEL M E TA L S STEEL DISTRIBUTION PLATE PROCESSING COIL PROCESSING STAINLESS STEEL ENGINEERING STEELS ALUMINIUM Distributes steel h
Slide 8: Growth Strategy and Update
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Growth Strategy and Update Expansion of Business Brownfield Entry into new product and/or Mergers and improvement expansion geographies service offering Acquisitions initiatives • Strong track record in • Expanded into 10 regional • Increasing the breadth •
Slide 9: Vulcan's Network
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Vulcan’s Network Opportunity to drive more operating leverage 66 1,326 22.5k STRATEG I CAL L Y LO C ATED SI TES COMPANY EMPLOYEES ACTIVE CUSTOMERS 1 from our footprint and scale DARWIN CAIRNS TOWNSVILLE x 2 WHANG ARE I x 2 MACKAY x 2 AU C K L AND x 7 ROCKHA
Slide 10: Business Initiatives
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Business Initiatives The synergy benefits from our integration programme started to deliver in FY24 Aluminium business programme completed over the last Group initiatives planned for FY25 twelve months following the acquisition of on 1 August 2022 • Continu
Slide 11: Vulcan's Environment & Sustainability Update
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Vulcan’s Environment & Sustainability Update Health and Safety Environment • Committed to providing a safe and healthy work environment - Recently • Scope 1 and 2 greenhouse gas (GHG) emissions were 13,865 tonnes for FY24 and reinforced this with the launch
Slide 12: Financials & Operations
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 02 Financials & Operations 12
Slide 13: Operating backdrop during FY24
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Operating backdrop during FY24 • Australia and New Zealand economic backdrop - Restrictive interest rate settings led to further pull back in economic activity in FY24 - Ongoing destocking activity among market participants - Business activity in New Zealan
Slide 14: Group Financial Performance
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Group Financial Performance • Revenue decline in FY24 reflects lower volume and average NZ$m FY24 FY23 % change selling prices compared with FY23 Sales volume (tonnes) 228,515 251,429 -9.1% Revenue 1,064.3 1,244.8 -14.5% • Sales volume declined by 22,914 to
Slide 15: Key drivers of EBITDA change
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Key drivers of EBITDA change • Volume change contributed NZ$40m yoy decline in EBITDA • Margin decrease contributed NZ$29m yoy decline in EBITDA • Opex excluding the extra month of aluminium in FY24 was down NZ$4m yoy E B I T DA M OV E M E N T F R O M F Y23
Slide 16: Steel Segment
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Steel Segment • Revenue decrease of 21.0% yoy in FY24 was due to 11.4% yoy decline in volume and 10.8% yoy decline in revenue per tonne • Gross profit per tonne in FY24 was down 12.8% yoy compared with FY23 • EBITDA decreased 36.8% yoy in FY24 as a conseque
Slide 17: Metals Segment
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Metals Segment • Revenue decline of 8.6% yoy in FY24 was primarily driven by lower sales volume and selling price • Metals operations product price in FY24 decreased by 5.7% yoy due largely to a change in product mix while sales volume was 3.0% lower yoy •
Slide 18: Group Opex
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Group Opex • Group Opex before significant items was flat in FY24 - Reported Group Opex in FY23 included $10.2m significant items • FY24 included the first full 12 months of Opex for our aluminium business compared with 11 months of ownership in FY23. • On
Slide 19: Cashflow and Working Capital
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Cashflow and Working Capital • Cash generation remains strong driven by disciplined management NZ$m FY24 FY23 % change of working capital Receipts from customers 1,088.7 1,273.8 -14.5% • Higher lease payments (principal and lease interest) increased Payment
Slide 20: Balance Sheet Metrics and Dividend
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Balance Sheet Metrics and Dividend • Vulcan remains well-positioned to execute on growth opportunities • The company will continue to respond and manage its working capital N E T D E BT COV E R ( N et d e bt/ EBI T DA , p re NZ I FRS 1 6 ) appropriately bas
Slide 21: Outlook & Guidance
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 03 Outlook & Guidance 21
Slide 22: Outlook
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Outlook Economic Landscape Business Improvement Programme Next Trading Update • As a diverse business, Vulcan is well • In a challenging environment, our team • The company has not provided earnings positioned to benefit from structural lifted the number of
Slide 23: Q&A
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 04 Q&A 23
Slide 24: Supplementary Information
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO 05 Supplementary Information 24
Slide 25: Profit and Loss Segment Disclosure
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Profit and Loss Segment Disclosure Steel Metal Corporate Total POST NZ IFRS 161, NZ$m FY24 FY23 % change FY24 FY23 % change FY24 FY23 % change FY24 FY23 % change Revenue 471.3 596.3 -21.0% 593.0 648.6 -8.6% - - - 1,064.3 1,244.8 -14.5% Adjusted EBITDA 2 68.
Slide 26: Statutory and Non-GAAP Earnings
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Statutory and Non-GAAP Earnings Revenue EBITDA EBIT NPAT EPS (NZ cents) NZ$m (unless stated) FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Statutory basis 1,064.3 1,244.8 147.6 208.7 99.0 163.4 40.0 87.9 30.4 66.9 + Integration costs 1 - - - 10.2 - 10.2
Slide 27: Abridged Balance Sheet
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Abridged Balance Sheet NZ$m 30 Jun 24 30 Jun 23 % change Trade and other receivables 144.8 170.7 -15% Inventories 360.6 437.7 -18% less trade and other payables -144.1 -166.9 -14% Net working capital excluding tax items 361.3 441.5 -18% Property, plant equi
Slide 28: Global Sector Indicators
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Global Sector Indicators World steel demand growth is currently Short term steel production decline reflects forecast to be modest economic conditions and seasonal factors G LO B A L ST E E L D E M A N D F O R E CAST ( m to n n es ) 1 WO R L D M O N T H LY
Slide 29: Steel, Stainless, Nickel, Aluminium & Freight Prices
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Steel, Stainless, Nickel, Aluminium & Freight Prices Average HRC price in 2H FY24 Stainless steel price declined slightly was slightly lower verses 1H FY24 in 2H FY24 verses 1H FY24 H OT R O L L E D CO I L P R I C E (East Asi a, F O B, $/tonne) N I C K E L
Slide 30: Australian and New Zealand Economic Trends
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Australian and New Zealand Economic Trends Australian Economic Activity New Zealand Economic Activity AU Q UA RT E R LY E CO N O M I C G R OW T H 1 N Z Q UA RT E R LY E CO N O M I C G R OW T H 3 ( se aso nally adju sted, %) ( se a so n a l l y a dju ste d ,
Slide 31: Australian and New Zealand Building Activity
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Australian and New Zealand Building Activity Australian Building Activity New Zealand Building Activity AU CO NST R U CT I O N ACT I V I T Y - VA LU E 1 N Z Q UA RT E R LY B U I L D I N G ACT I V I T Y VA LU E 3 ( se aso nally adjusted, A$m ) ( se a so n a
Slide 32: Vulcan's Business
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Vulcan’s Business Our business model at a glance... O U T CO M E Accountable profit centres 98% Delivery in full, on time E N ABL E RS Internally developed fit-for-purpose IT Flat Structure O P E RAT I O NA L EX C EL L ENC E Inventory Management Processing
Slide 33: Operational Footprint
VULCAN RESULTS PRESENTATION FY24 VULCAN.CO Operational Footprint NEW ZEALAND AUSTRALIA Steel National footprint Competes selectively1 Plate Processing National footprint Competes selectively1 Coil Processing National footprint Competes selectively1 Stainless Steel National footprint National footpri
Slide 34: VULCAN.CO
VULCAN. VULCAN -co