Maas Group Holdings Ltd. · ASX:MGH
Maas — H1 2023 Earnings Presentation
40 slides from Maas's earnings presentation, Feb 23, 2023
Slide 1: 1H23 Results Presentation
For personal use only 1H23 RESULTS PRESENTATION 23 February 2023
Slide 2: Our Vision
OUR VISION For personal use only Delivering market leading property, construction and infrastructure solutions. 2
Slide 3: Our Values
OUR VALUES For personal use only Commitment to customers Trust Deliver on commitments Only earnt through action Leadership Candour Transparent conversations to get it right The courage to strive for excellence Teamwork Ownership Empowered to get it done and be Focused on safety and solutions account
Slide 4: Maas at a glance
: wy ‘ 9 bs Fas Ph Re " 3 : fant 5% NE tall Maas ata glance . res: 7 ~550 ~8,000 ~$732m CONCRETE ASSETS RESIDENTIAL COMMERCIAL MANUFACTURING PLANTS FOR HIRE LoTs! PROPERTY GDV2 FACILITIES
Slide 5: Safety and Environment
SAFETY AND ENVIRONMENT For personal use only MGH 12 MONTH ROLLING AVERAGE LTIFR RELATIVE TO SAFETY INDUSTRY1 ▪ Our HSE strategy remains focused on our people and risks, supported by our 14 systems. Industry 12 Averages 11.1 ▪ Our Safety Slogan “Think Safe, Act Safe, Look After Your Mate” which outli
Slide 6: An industry leader with defensive earnings and multi-year tailwinds
AN INDUSTRY LEADER WITH DEFENSIVE EARNINGS AND MULTI-YEAR TAILWINDS ACROSS KEY END MARKETS For personal use only Strong position across key end markets, with a genuine Integrated business model operating on a decentralized company-wide ambition to be the market leader in each basis with centralised
Slide 7: Geographic Footprint
GEOGRAPHIC FOOTPRINT For personal use only Maas continues to grow its operations and asset portfolio on the east coast of Australia, in addition to Western Australia and internationally. Key Maas Headquarters Maas Office / Hub Construction Materials Quarries Construction Materials Concrete Plants Re
Slide 8: Our People, Culture and Communities
OUR PEOPLE, CULTURE AND COMMUNITIES For personal use only A culture of commitment and care for our teammates, our customers and communities. PEOPLE & CULTURE ▪ Our teams continue to grow as a result of organic growth, geographical expansion and acquisition. ▪ We have invested significantly in our cl
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS 1 For personal use only Result achieved through disciplined capital allocation Proforma Revenue Proforma EBITDA Proforma EBIT Cashflow Conversion2 $361.4m $66.1m $45.5m 89% Strong performance despite Increase of 70%, EBIT to Increase from 72% driven by Increase of 68%, strong we
Slide 10: Growth Initiatives & Outlook
GROWTH INITIATIVES & OUTLOOK For personal use only Construction Materials Civil Construction and Hire Residential Real Estate Commercial Real Estate Manufacturing ▪ Continuous cost reduction ▪ Growth continues to be ▪ Pipeline in excess of 8,000 lots ▪ Significant pipeline of ▪ Increase Toll Manufac
Slide 11: FY23 Earnings Outlook: Significant Growth Expected
FY23 EARNINGS OUTLOOK: SIGNIFICANT GROWTH EXPECTED For personal use only MGH expects pro forma1 FY23 EBITDA in the range of $150m to $180m, representing year-on-year growth of 20% to 44% ▪ Key assumptions underpinning the FY23 guidance include: Pro Forma Group EBITDA ($ Million) ▪ Key projects deliv
Slide 12: Proforma Segment Performance
PROFORMA SEGMENT PERFORMANCE For personal use only Continued growth in all operating segments Revenue ($m) 1 EBITDA ($m) 1 EBIT ($m) 1 450.0 80.0 75.4 60.0 55.2 386.1 2.9 400.0 70.0 2.6 15.2 50.0 350.0 19.9 58.7 60.0 19.6 300.0 40.0 44.3 50.0 43.9 5.0 235.1 30.3 250.0 0.7 9.2 40.0 4.4 30.0 0.1 5.0 3
Slide 13: Group Proforma Profit & Loss
GROUP PROFORMA PROFIT & LOSS For personal use only $ Million 1H22 1H23 ▪ Revenue growth of 68%, 39% from organic and 61% from acquisitions. Key drivers of the Revenue 212.9 355.5 increase: Other Revenue 2.9 5.9 ▪ Construction revenue from civil, electrical, commercial and homes constructions (increa
Slide 14: Group Statutory Profit & Loss
GROUP STATUTORY PROFIT & LOSS For personal use only Statutory Net Profit after Tax (NPAT) Reconciliation of Statutory to Pro forma NPAT $ Million 1H22 1H23 $ Million 1H22 1H23 Revenue 194.3 355.5 Statutory NPAT attributable to owners of MGH 14.6 23.7 Other Revenue 2.9 5.9 Pre-acquisition NPAT 0.4 -
Slide 15: Expenses
EXPENSES For personal use only Expenses increased in line with revenue growth, revenue mix and acquisitions $ Million 1H22 1H23 Increase % ▪ EBITDA related expenses increased by 77%, driven by: Revenue 215.8 361.4 67% ▪ $72.9m increase in expenses from businesses acquired Materials & consumables1 92
Slide 16: Proforma Cashflow
PROFORMA CASHFLOW For personal use only $ million 1H22 1H23 ▪ Operating Cash Flow (pre-land inventory, FV gains & tax) for 1H23 is EBITDA 40.1 66.1 $44.9m, representing a cash conversion of EBITDA ratio of 89% driven by (15.5) strong working capital management across the group Fair value gains (FV g
Slide 17: Proforma Cashflow by Segment
PROFORMA CASHFLOW BY SEGMENT For personal use only Civil Construction Residential Commercial Corporate & $ million Construction & Manufacturing Group Materials Real Estate Real Estate Eliminations Hire EBITDA 30.0 17.5 5.0 19.9 2.9 (9.2) 66.1 Fair value gains - - (2.3) (13.2) - - (15.5) EBITDA excl.
Slide 18: Land Inventory
LAND INVENTORY For personal use only Land Inventory movement ▪ Residential land multi-year lag between englobo acquisition to land settlements as estates are developed. Land settlements to date made from $ million Residential Commercial Elimination Group land acquired pre-April 2021. ▪ Residential l
Slide 19: Capital Investments
CAPITAL INVESTMENTS For personal use only 1H23 Capital Investments ▪ Significant Growth CAPEX through acquisitions, investment and growth-related PPE Construction materials acquisitions1 (80.6) additions Civil construction & hire acquisition1 (31.2) ▪ Acquisitions for 1H23 include Dandy (Constructio
Slide 20: Group Capital Structure
GROUP CAPITAL STRUCTURE For personal use only Net Debt as at 31 December 2022 Pro Forma Banking Facilities as at 31 December 2022 $ Million 31 Dec 2022 $ Million Limit Drawn Undrawn Borrowings Cash Advance Facility 365.0 297.7 67.3 Current 52.9 Asset Finance Facility 165.0 114.9 50.1 Non-current 433
Slide 21: Group Balance Sheet
GROUP BALANCE SHEET For personal use only Balance Sheet ▪ Property, plant and equipment increased by $157.6m from 30 June 2022 driven by the $ million 30 June 2022 31 Dec 2022 acquisitions of Dandy premix, Schwarz Excavations and Clermont quarries as well as sustained growth CAPEX in the Civil, Cons
Slide 22: Capital Employed
CAPITAL EMPLOYED For personal use only Capital Employed by Segment Balance Capital Balance Average Business Working Land Proforma 1H23 LTM3 30 June Other1 Employed 31 Dec Capital Acquisitions capital Inventory EBITDA ROCE2 ROCE 2022 During 1H23 22 Employed Civil Construction & Hire 246.7 39.8 1.9 -
Slide 23: Capital Employed – Real Estate Developments
CAPITAL EMPLOYED – REAL ESTATE DEVELOPMENTS For personal use only Capital Employed – Property Developments ▪ Real Estate Developments include both Commercial and Residential Developments with longer operating cycles than other parts of the Residential Commercial Total business $ Million Developments
Slide 24: Construction Materials
CONSTRUCTION For personal use only MATERIALS REGIONAL QUARRIES REDIMIX CONCRETE GEO-TECH LOGISTICS
Slide 25: Business Unit Performance: Construction Materials
BUSINESS UNIT PERFORMANCE For personal use only Highlights – 1H23 ▪ Construction Materials 1H23 EBITDA delivered strong growth on prior corresponding period despite significant rain events ▪ Strong 1H23 result from newly acquired QLD quarries ▪ 39 strategically located quarries with 33 in operation,
Slide 26: Financial Performance – Construction Materials
FINANCIAL PERFORMANCE – CONSTRUCTION MATERIALS For personal use only $ Million 1H22 1H23 Movement ▪ Revenue increased significantly on 1H22 driven by both acquisition1 (54%) and organic (46%) growth Revenue 48.2 89.0 85% ▪ Organic growth increase driven by quarry volumes and concrete sales (greenfie
Slide 27: Civil Construction & Hire
CIVIL CONSTRUCTION For personal use only & HIRE CIVIL EQUIPMENT HIRE ELECTRICAL
Slide 28: Business Unit Performance: Civil Construction & Hire
BUSINESS UNIT PERFORMANCE For personal use only Highlights – 1H23 ▪ Civil Construction and Hire delivered strong proforma EBITDA growth on prior corresponding period despite being impacted by weather events ▪ Increased operating footprint mitigates risk of extreme local weather events impacting on b
Slide 29: Financial Performance – Civil Construction and Hire
FINANCIAL PERFORMANCE - CIVIL CONSTRUCTION AND HIRE For personal use only $ Million 1H22 1H23 Movement ▪ Revenue increased on 1H23 driven by both acquisition1 (64%) and organic (36%) growth Revenue 118.5 178.9 51% EBITDA 24.7 30.0 21% ▪ EBITDA increased by 21% driven by the increased scale of the bu
Slide 30: Residential Real Estate
RESIDENTIAL REAL For personal use only ESTATE RESIDENTIAL HOME BUILDING BUILD-TO-RENT DEVELOPMENT
Slide 31: Business Unit Performance: Residential Real Estate
BUSINESS UNIT PERFORMANCE For personal use only Highlights – 1H23 ▪ 1HFY23 achieved 81% EBITDA growth from the previous corresponding period driven primarily by the contribution from Build To Rent (BTR) product and land sales ▪ Sales velocity slowed in Q2FY23 as a result of multiple interest rate ri
Slide 32: Financial Performance – Residential Real Estate
FINANCIAL PERFORMANCE – RESIDENTIAL REAL ESTATE For personal use only $ Million 1H22 1H23 Movement ▪ Revenue increased significantly on 1H22 driven by both acquisition (77%) and organic (23%) growth Revenue 28.5 44.3 56% EBITDA 2.8 5.0 81% EBITDA Margin 10% 11% 16% ▪ EBITDA increased by 81% inclusiv
Slide 33: Commercial Real Estate
COMMERCIAL REAL For personal use only ESTATE COMMERCIAL COMMERCIAL BUILDING LEASING DEVELOPMENT CONSTRUCTION MATERIALS
Slide 34: Business Unit Performance: Commercial Real Estate
BUSINESS UNIT PERFORMANCE For personal use only Highlights – 1H23 ▪ Accretive growth from prior period acquisitions with existing delivery pipelines and repeat business delivered strong growth along with fair value of assets realised. ▪ Site works and construction commenced at Tomago Industrial, Dub
Slide 35: Financial Performance – Commercial Real Estate
FINANCIAL PERFORMANCE – COMMERCIAL REAL ESTATE For personal use only $ Million 1H22 1H23 Movement ▪ Revenue increased significantly on 1H22 driven by both acquisition (47%) and Revenue 30.7 58.7 91% organic (53%) growth EBITDA 4.4 19.9 353% EBITDA Margin 14% 34% 137% Non-cash gains - 13.2 100% ▪ EBI
Slide 36: Manufacturing
MANUFACTURING For personal use only JACON TOLL MANUFACTURING VMS
Slide 37: Business Unit Performance: Manufacturing
BUSINESS UNIT PERFORMANCE For personal use only Highlights – 1H23 ▪ Vietnam and Indonesian operations achieved ISO certification: ▪ ISO 9001:2015 Quality ▪ ISO 14001:2015 Environment ▪ ISO 45001:2018 Safety ▪ Global demand for specialized equipment underpins Yr on Yr growth. Driven by demand for tun
Slide 38: Financial Performance - Manufacturing
FINANCIAL PERFORMANCE - MANUFACTURING For personal use only $ Million 1H22 1H23 Movement ▪ Revenue increased by 66% on 1H22 driven by an increase in machine Revenue 9.2 15.2 66% sales and spare parts EBITDA 0.7 2.9 326% EBITDA Margin 8% 19% 11% ▪ EBITDA increased by 326%, driven by the increase in s
Slide 39: Disclaimer
DISCLAIMER For personal use only Important information The purpose of this presentation is to provide general information about MAAS Group Holdings Ltd (Maas or the Company) and its subsidiaries and business. The information in this presentation is current as at 23 February 2023. It is in summary fo
Slide 40: For personal use only
For personal use only