Adrad Holdings Limited · ASX:AHL

Adrad — H1 2025 Earnings Presentation

27 slides from Adrad's earnings presentation, Feb 25, 2025

  1. Slide 1: Half Year (1HFY25) Results: Revenue Growth Continues

    ASX Announcement 25 February 2025 Half Year (1HFY25) Results Revenue Growth Continues Adrad Holdings Limited (‘ASX: AHL’, ‘Adrad’ or the ‘Company’) Adrad is an Australian- based business specialising in the design and manufacture of innovative heat transfer solutions for industrial applications and

  2. Slide 2: Management response, CEO comments and outlook

    The Company responded by adjusting selling prices following the completion of our growth campaign initiated in FY24, re-negotiating an OEM contract at renewal date effective from 1 January 2025, implementing a freight cost reduction program and better recovery of freight costs incurred. Further, the

  3. Slide 3: Contacts and authorisation notes

    This announcement is authorised for release by the Board of Directors of Adrad Holdings Limited. Contacts CEO Investor Relations Kevin Boyle Melanie Singh investor@adrad.com.au melanie@nwrcommunications.com.au +61 439 748 819 For more information, please visit http://adradholdings.com.au/ 1. Pro for

  4. Slide 4: 1HFY25 Results Presentation

    1HFY25 RESULTS PRESENTATION Visit FEBRU A R YNow 2025 adradholdings.com.au

  5. Slide 5: Disclaimer

    Disclaimer 2 This presentation is provided for information purposes only. The information in this “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions within presentation is in a summary form, does not purport to be complete and is not the meaning of securities laws of a

  6. Slide 6: Our diversified business

    Our diversified business Vision: 1st Choice for Industrial & Engine Cooling Solutions Two major segments servicing all aspects of the engine cooling market: HEAT TRANSFER SOLUTIONS (AIR RADIATORS) DISTRIBUTION (ADRAD) A vertically integrated designer and Importer and distributor of radiators manufac

  7. Slide 7: 1HFY25 Financial Highlights

    1HFY25 Financial Highlights $77.9m $8.2m $10.1m $2.8m Trading Revenue Pro forma EBITDA1 Statutory NPAT Operating Cash flow 6.0% 16.9% Pro forma cash conversion ratio2: 123%; 9.7% 1HFY24: 105% from 1HFY24 from pro forma 1HFY24 from 1HFY24 $2.9m 3.5cps 1.40cps Interim dividend3 – Capital Investment Ba

  8. Slide 8: 1HFY25 Key take aways

    1HFY25 Key take aways 1HFY25 Actions 2HFY25 Summary Implemented Economic Outlook v 6% increase in revenue, v Distribution selling price v The Company is confident EBITDA and NPAT are lower adjustments implemented that full year revenue will than pcp due to input costs in Q2FY25 will increase continu

  9. Slide 9: HTS Segment - Growth initiatives continue

    HTS Segment - Growth initiatives continue Expand revenue in Asia Asia regional sales director hired to drive SE Asian customer engagement 1 through focused sales activity 1st Asian rail project won ($+0.5M) and will commence in 2HFY25 Driving Alu Fin Received first orders for prototypes for above gr

  10. Slide 10: Distribution - Growth initiatives continue

    Distribution - Growth initiatives continue Growing customer Completed upgrade to main online platforms design 1 engagement and sales via our digital interfaces Launch due 2HFY25 Leverage growing customer base to be 2 Growth in trade customer base continues to deliver increased cooling product range

  11. Slide 11: Segment Overview

    Segment == Overview |

  12. Slide 12: Revenue growth achieved across both HTS and Distribution

    Revenue growth achieved across both HTS and Distribution HTS Revenue (up 7.1% on pcp) Increased sales in off-highway (eg mining vehicles) cooling in Asia. Growing demand for powergen – specifically in back up generation for data centres. $43.6 m $40.7 m Upturn in demand in off-highway cooling and da

  13. Slide 13: Heat Transfer Solutions

    Heat Transfer Solutions Highlights Design and delivery of 5 custom radiators for a 95MW hybrid thermal power station in WA; our largest manufactured units to date at 12.5m by 15.5m. Australian rail service project to take place over CY25 and CY26. HTS warranty costs lower compared to pcp, this remai

  14. Slide 14: Heat Transfer Solutions - Thailand

    Heat Transfer Solutions - Thailand Production Capability Thailand manufacturing capability continues to grow with further transfer of work from Australia. Performance in 1HFY25 better than pcp as cost reduction activities are realised and recovering Asian demand for mining vehicle units. Received fi

  15. Slide 15: Distribution

    Distribution Range expanded to 30,000+ Continued to work with Selling price campaign SKU’s from 28,000 suppliers for improved terms targeting customer growth and shorter lead times Ecommerce improvement Freight and distribution cost Opening new channels projects progress towards improvement program

  16. Slide 16: Distribution – Leveraging our network

    Distribution – Leveraging our network YOY Active Customer Growth Customer searches on our platform 7,647 582,120 6,889 6,032 468,612 5,139 355,379 4,114 257,049 127,991 FY21 FY22 FY23 FY24 FY25 fcst FY21 FY22 FY23 FY24 FY25 fcst Active customer growth forecast to rise based on 1HFY25 achievements. 6

  17. Slide 17: 1HFY25 Financials

    1HFY25 Financials

  18. Slide 18: Financial results 1HFY25

    Financial results 1HFY25 Pro forma Statutory 1HFY25 1HFY24 Change 1HFY25 1HFY24 Change $m $m $m % $m $m $m % Trading Revenue 77.9 73.5 4.4 6.0% 77.9 73.5 4.4 6.0% EBITDA 1 8.2 9.9 (1.7) (16.9%) 8.2 9.4 (1.2) (12.4%) NPAT 1 2.8 3.6 (0.8) (22.2%) 2.8 3.1 (0.3) (9.7%) • Trading revenue growth of 6% • P

  19. Slide 19: Balance Sheet

    Balance Sheet 31-Dec-24 30-Jun-24 Change • Cash position improved increasing $3.3m $m $m $m % from 30 June 2024. Cash 19.1 15.8 3.3 20.9% • Receivables down through improving Trade and other receivables 20.4 24.5 (4.1) (16.7%) debtor days as we focus on working Inventory 47.7 47.3 0.4 0.8% capital m

  20. Slide 20: Cash Flow

    Cash Flow 1HFY25 1HFY24 Change $m $m $m % • Cash flow from operating down $0.3m Operating cash flow 12.4 13.2 (0.8) (6.1%) versus pcp driven by increased input costs Finance (costs)/income 0.1 0.1 0.0 0.0% offset by debtor collection efforts and Tax paid (2.4) (2.9) 0.5 (17.2%) lower tax payments. C

  21. Slide 21: Outlook

    Outlook

  22. Slide 22: 2HFY25 outlook – Continued revenue growth

    2HFY25 outlook – Continued revenue growth v Management remain confident in continued revenue growth through 2HFY25. v This view is supported by a strong orderbook and improvements regarding increased selling prices initiated in 1HFY25. v During 2HFY25 we will further consolidate radiator core manufa

  23. Slide 23: Thank you

    Thank you

  24. Slide 24: Appendices

    Appendices

  25. Slide 25: Profit Before Tax 1HFY24 to 1HFY25 bridge

    Profit Before Tax 1HFY24 to 1HFY25 bridge • Revenue up in both business segments. 4.4 • Thailand up $2M vs pcp through growth in Asia demand for mining vehicle units; local manufacturing revenue up $2M largely from data centre backup powergen demand. • Distribution parts continues revenue growth tra

  26. Slide 26: NPAT 1HFY24 to 1HFY25 bridge

    NPAT 1HFY24 to 1HFY25 bridge 3.1 0.8 2.8 (1.1) NPAT 31 December 2023 Profit before tax Income Tax NPAT 31 December 2024 • Refer to prior slide for Profit before tax bridge. • Profit before tax lower in 1HFY25 by $1M vs pcp. @30% corporate tax rate = ~$0.3M lower notional tax for 1HFY25 vs pcp. • 1HFY

  27. Slide 27: Contact Us

    CONTACT US Investor Relations Melanie Singh +61 439 748 819 melanie@nwrcommunications.com.au

Adrad Holdings — H1 2025 Earnings Presentation on 6ix