Vulcan Steel Ltd. · ASX:VSL
Vulcan Steel — Investor Presentation (February 2025)
36 slides from Vulcan Steel's investor presentation, Feb 11, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION VULCAN.
Slide 2: Commitment to customer service and lean operations
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO At Vulcan, our unwavering commitment to exceptional customer service and lean operations, fueled by a culture of team work and continuous improvement, empowers us to navigate challenging economic landscapes. This shared dedication is driving us to furth
Slide 3: Disclaimer
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Disclaimer The material contained in this document is a presentation They may also be based on factors which are subject to of information about Vulcan Steel Limited’s (“Vulcan”) significant uncertainties and contingencies which may activities current a
Slide 4: Agenda
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO Agenda 01 OVERVIEW 02 FINANCIALS AND OPERATIONS 03 OUTLOOK 04 Q&A 05 SUPPLEMENTARY INFORMATION 4 4
Slide 5: Overview
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO 01 Overview 5
Slide 6: Performance highlights
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO Performance highlights High service levels, enhanced sales efforts, and cost discipline have helped Vulcan navigate a challenging trading environment. REVENUE GROSS PROFIT $/TONNE GROSS MARGIN NZ$493m -5.3% 35.2% 1 -12.6% on NZ$564m in 1H FY24 1H FY25 o
Slide 7: Vulcan’s business
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Vulcan’s business Vulcan is a leading steel and 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
Slide 8: Vulcan’s network
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO Vulcan’s network Opportunity to drive more operating leverage 66 1,307 22.6k 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 R
Slide 9: Our growth strategy and initiatives over time
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Our growth strategy and initiatives over time Overriding principle - Provide a proposition that adds value to customers and is also accretive to Vulcan’s shareholder value. Approach to value capture - Greenfield and brownfield initiatives, as well as di
Slide 10: Delivering on the controllables
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Delivering on the controllables Fully integrated our Maintained high Strong cashflow generation Managed return on aluminium business service level • Generated $395 million capital employed • Positioned to capitalise • 98% delivery rate on in challenging
Slide 11: Priorities for FY25 and FY26
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Priorities for FY25 and FY26 Further adding to our foundation for growth. 1 Maintain and nurture 2 3 4 5 Capitalise on Build bench strength Further explore Continue with the customer service emerging economic to support growth. acquisition rollout of hy
Slide 12: Financials & operations
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO 02 Financials & operations 12
Slide 13: Operating backdrop during 1H FY25
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Operating backdrop during 1H FY25 Market performance Currency movements • Our customers across Australia and New Zealand continued to • The Australian dollar (AUD) and New Zealand dollar (NZD) face restrictive interest rate levels and challenging econom
Slide 14: Australian and New Zealand economic trends
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Australian and New Zealand economic trends Australian economic activity New Zealand economic activity AU QUARTERLY ECONOMIC GROWTH1 (seasonally adjusted, %) NZ QUARTERLY ECONOMIC GROWTH3 (seasonally adjusted, %) 7 15.0 6 12.5 5 10.0 4 7.5 3 2 5.0 1 2.5
Slide 15: Australian and New Zealand building activity
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Australian and New Zealand building activity Australian building activity New Zealand building activity AU QUARTERLY CONSTRUCTION ACTIVITY - VALUE1 (seasonally adjusted, A$m) NZ QUARTERLY BUILDING ACTIVITY VALUE3 (seasonally adjusted, NZ$m) 45000 10000
Slide 16: Global sector indicators
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Global sector indicators World steel demand growth is forecast to recover Steel production in 2H of CY24 was 2.7% lower YoY after being in CY25 after three consecutive years of decline unchanged YoY in 1H CY24 GLOBAL STEEL DEMAND FORECAST (m tonnes)1 WO
Slide 17: Steel, stainless, nickel, aluminium & freight prices
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Steel, stainless, nickel, aluminium & freight prices Average steel price in 2H CY24 declined a further Average stainless steel price in 2H CY24 declined a further 7% HoH following a 4% HoH drop in 1H CY24 2% HoH following a 5% HoH increase in 1H CY24 HO
Slide 18: Group financial performance
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Group financial performance Revenue NZ$m 1H FY25 1H FY24 % change • Overall revenue in 1H FY25 declined by 12.6% YoY, driven by: Revenue 493.0 564.0 -12.6% EBITDA 1 56.9 81.8 -30.5% - A 8.3% YoY reduction in volume EBIT 2 32.0 59.1 -45.8% - Also a 4.7%
Slide 19: Half-yearly volume and financial trends
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Half-yearly volume and financial trends REVENUE (NZ$m) TOTAL SALES VOLUME (tonnes per day) 700 1400 600 1200 500 1000 400 800 300 600 200 400 100 200 0 0 1H FY21 2H FY21 1H FY22 2H FY22 1H FY23 2H FY23 1H FY24 2H FY24 1H FY25 1H FY21 2H FY21 1H FY22 2H
Slide 20: Key drivers of EBITDA change
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Key drivers of EBITDA change Volume and Margin • Lower sales volume resulted in a NZ$17m YoY decline in 1H FY25 EBITDA. • A NZ$89 decline in gross profit per tonne accounted for a NZ$10m YoY decrease in 1H FY25 EBITDA. Operating expenses (OPEX) • Group
Slide 21: Steel segment, Steel GP$/tonne
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Steel segment, Steel GP$/tonne Revenue performance Steel, NZ$m 1H FY25 1H FY24 % change • Revenue fell by 16.8% YoY in 1H FY25, driven by: Revenue 209.9 252.3 -16.8% EBITDA 1 22.0 37.8 -41.8% - A 8.8% YoY reduction in volume Sales volume (000 tonnes) 77
Slide 22: Metals segment
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Metals segment Revenue Metals, NZ$m 1H FY25 1H FY24 % change • Revenue decreased by 9.2% YoY in 1H FY25, primarily driven by: Revenue 283.1 311.7 -9.2% EBITDA 1 44.4 53.0 -16.2% - A 7.2% YoY reduction in volume Sales volume (000 tonnes) 32.2 34.6 -7.2%
Slide 23: Group OPEX
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Group OPEX Overall OPEX, NZ$m 1H FY25 1H FY24 % change • Group OPEX (excluding depreciation and amortisation) Employee benefits 73.9 71.5 3.3% improved by NZ$1.4m YoY in 1H FY25, reflecting disciplined cost Selling & distribution (S&D) 11.6 15.0 -22.6%
Slide 24: Cash flow & Capex
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Cash flow & Capex Operating cash flow NZ$m 1H FY25 1H FY24 % change • Despite weaker earnings, operating cash flow in 1H FY25 benefited Receipts from customers 518.7 591.1 -12.2% from ongoing discipline in working capital management. Payments to supplie
Slide 25: Balance sheet metrics & dividend
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Balance sheet metrics & dividend Dividend NET DEBT COVER (Net debt/EBITDA, pre NZ IFRS 16) • Vulcan remains committed to investing for the long term and 3.5 is well positioned to capitalise on growth opportunities. 3.1 3.0 2.6 • Vulcan aims to strike a
Slide 26: Outlook
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO 03 Outlook 26
Slide 27: Outlook
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Outlook Trading was variable in the first six months of the current financial year with some weakness observed in the December quarter in the New Zealand market and the Steel segment in Australia as foreshadowed at our annual meeting of shareholders in
Slide 28: Q&A
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO 04 Q&A 28
Slide 29: Supplementary information
VULCAN INVESTOR PRESENTATION IH FY25 VULCAN.CO 05 Supplementary information 29
Slide 30: Profit and loss segment disclosure
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Profit and loss segment disclosure Steel Metal Corporate Total Post NZ IFRS 161, NZ$m 1H FY25 1H FY24 % change 1H FY25 1H FY24 % change 1H FY25 1H FY24 % change 1H FY25 1H FY24 % change Revenue 209.9 252.3 -17% 283.1 311.7 -9% 0.0 0.0 - 493.0 564.0 -13%
Slide 31: Statutory and non-GAAP earnings
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Statutory and non-GAAP earnings Revenue EBITDA EBIT NPAT EPS (NZ cents) 1H FY25 1H FY24 1H FY25 1H FY24 1H FY25 1H FY24 1H FY25 1H FY24 1H FY25 1H FY24 NZ$m (unless stated) Statutory basis 493.0 564.0 56.9 81.8 32.0 59.1 9.2 26.1 7.0 19.9 - Operating le
Slide 32: Balance sheet
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Balance sheet NZ$m 31 Dec 24 30 Jun 24 % change Trade and other receivables 121.1 144.8 -16.4% Inventories 362.0 360.6 0.4% Less trade and other payables -170.8 -144.1 18.6% Working capital excluding tax items 312.2 361.3 -13.6% Property, plant and equi
Slide 33: Vulcan’s business model at a glance
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Vulcan’s business model at a glance Outcome Accountable profit centres 98% delivery in full, on time Enablers Internally developed fit-for-purpose IT Flat structure Operational excellence Inventory management Processing capability Managing overheads Cus
Slide 34: Operational footprint
VULCAN INVESTOR PRESENTATION 1H FY25 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 foo
Slide 35: Vulcan’s Environment & Sustainability update
VULCAN INVESTOR PRESENTATION 1H FY25 VULCAN.CO Vulcan’s Environment & Sustainability update Health and Safety Environment • Committed to providing a safe and healthy work environment - Reinforced this • Scope 1 and 2 greenhouse gas (GHG) emissions were 13,865 tonnes for FY24 and with the launch of o
Slide 36: VULCAN.CO
VULCAN. VULCAN -co