Pwr Holdings Ltd. · ASX:PWH
Pwr — H1 FY2017 Earnings Presentation
21 slides from Pwr's earnings presentation, Feb 23, 2017
Slide 1: FY17 Half Year Results Presentation
PWR HOLDINGS LIMITED For personal use only FY17 HALF YEAR RESULTS PRESENTATION FEBRUARY 2017
Slide 2: Agenda
AGENDA For personal use only Key Highlights 3 1H FY17 Financial Performance 4 1H FY17 Currency Impacts 6 1H FY17 Balance Sheet 7 1H FY17 Working Capital 8 1H FY17 Cash Flow 9 Strategic Growth Initiatives 10 Sales Categories 11 OEM Programs 12 Capital Investment 13 PWR Revenue Strategy 15 Outlook 16
Slide 3: Key Highlights
KEY HIGHLIGHTS For personal use only • Revenue $18.62 million up 0.8% on pcp • Organic revenue growth in all currencies • Strong revenue growth in Formula 1TM • Stronger AUD against GBP and USD offsets overseas organic growth • EBITDA $3.37 million down 37% on Pro Forma1 pcp • NPAT $1.81 million dow
Slide 4: 1H FY17 Financial Performance
1H FY17 FINANCIAL PERFORMANCE For personal use only A$'000 1H FY17 1H FY16 Variance Key Points • Organic revenue growth of $2.18 million Revenue 18,624 18,472 0.8% é (11.8%) pcp: EBITDA1,2 3,374 5,322 36.6% ê • GBP sales up 23.9% • USD sales up 4.4% EBITDA margin1,2 18.1% 28.8% 10.7% ê • AUD sales u
Slide 5: 1H FY17 Financial Performance: Consolidated Revenue Bridge
1H FY17 FINANCIAL PERFORMANCE For personal use only Consolidated Revenue Bridge 1H FY16 to 1H FY17 1H FY17 category sales analysis Organic revenue growth Current period sales less prior period sales at current period exchange rate FX impact Prior period sales at FX movement from prior period to curr
Slide 6: 1H FY17 Currency Impacts
1H FY17 CURRENCY IMPACTS Revenue by Currency Actual and Constant Currency Results For personal use only H1 FY16 vs H1 FY17 6 A world leader in cooling technology solutions
Slide 7: 1H FY17 Balance Sheet
1H FY17 BALANCE SHEET For personal use only December June Key points A$000 2016 2016 • Inventories higher by $1.8m due to: Assets • Raw material build up in 1H for 2H motorsports season Cash and cash equivalents 2,118 8,797 • Raw material and finished goods build Trade and other receivables 3,775 4,
Slide 8: 1H FY17 Working Capital
1H FY17 WORKING CAPITAL For personal use only Key points A$'000 1H FY17 FY16 Variance • Inventories higher by $1.8m due to: Trade, other receivables & 4,747 4,721 26é • Raw material build up in 1H for 2H prepayments motorsports season Inventories 8,498 6,744 1,754é • Raw material and finished goods
Slide 9: 1H FY17 Cash Flow
1H FY17 CASH FLOW For personal use only Key points A$'000 1H FY17 1H FY16 • Cash conversion from operating activities in Cash from operating activities line with exchange rate movements 3,420 5,697 (excluding working capital) • Investment in working capital to achieve Working capital change (2,167)
Slide 10: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES For personal use only • Continued focus on achieving revenue growth in UK, Europe and USA • Revenue growth flows out of existing customers, global engineering contacts, motorsports track record and bespoke production capabilities • Continued investment in plant and equip
Slide 11: Sales Categories
SALES CATEGORIES For personal use only Motorsports • Up 15% pcp1, new and existing customers • Increased take-up of complete assemblies instead of core only in Formula 1™ plus spreading into other motorsports categories Automotive Aftermarket • Up 5% pcp1, primarily driven by C&R where revenue up 35
Slide 12: OEM Programs
OEM PROGRAMS For personal use only • Up 27% pcp1 • Client confidentiality requirements limits disclosure • Selected as cooling assembly supplier to a niche USA OEM program for a planned 5 years production run of 250 vehicles per year commencing in Q1 CY17, PWR supplying 3 cooling units per vehicle,
Slide 13: Capital Investment: C&R Core Production Line
CAPITAL INVESTMENT For personal use only C&R Core Production Line • Building new aluminium heat exchanger core production line in Indianapolis USA at a cost of US$4.25 million: • Planning – Q4 CY16/Q1 CY17 • Implementation – Q3 CY17 • Production – Q4 CY17 • C&R manufacturing will be certified to ISO
Slide 14: Capital Investment: Machine Shop and Test Equipment
CAPITAL INVESTMENT For personal use only Machine Shop • Second Variaxis CNC machine • Fourth high speed CNC machine • Increased volume of billet tanks in complete assemblies in motorsports • Increased volume of shaped core work • Capital cost combined $1 million Cold plate test rig • Measure and val
Slide 15: PWR Revenue Strategy
PWR REVENUE STRATEGY For personal use only Motorsports • Expand relationships with motorsports teams in depth and number • Expand presence in other categories through reputation • Access through relationships built with motorsports teams Automotive OEM • Cooling solutions to low production run, high
Slide 16: Outlook
OUTLOOK For personal use only Revenue • 2H revenue bias to continue in FY17 due to timing of motorsports seasons • Organic revenue growth in underlying currencies expected to continue Working capital • Given revenue growth opportunities and new C&R production line, working capital expected to increa
Slide 17: About PWR
For personal use only ABOUT PWR
Slide 18: A Leader in Automotive Cooling
A LEADER IN AUTOMOTIVE COOLING For personal use only • Established reputation in elite international motorsports for innovative and customised cooling solutions • Competitive advantage provided by fully integrated offering – design, engineer, manufacture and validation • Strong financial position –
Slide 19: Industry Tailwinds
INDUSTRY TAILWINDS For personal use only • Focus on reducing engine size while increasing power – achieved through Super, lighter, forced induction (turbo, super charging and hybrid technology) faster • Forced induction requires additional cooling Technology • Development of hybrid and electric vehi
Slide 20: The PWR DNA
THE PWR DNA For personal use only Our focus on PROFIT…. allows us to succeed. We show PASSION in everything we do. COMPETING and WINNING with leading edge solutions – PWR is the “Go To – Can Do” company. Our product VISION…. delivered through INNOVATION…. using our engineering, R&D, manufacturing an
Slide 21: Disclaimer
DISCLAIMER For personal use only This document has been prepared by PWR Holdings Limited (PWR) and comprises written materials/slides for a presentation concerning PWR. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell