Wagners Holding Co. Ltd. · ASX:WGN
Wagners — FY2024 Earnings Presentation
30 slides from Wagners's earnings presentation, Aug 21, 2024
Slide 1: Wagners FY2024 Results – Investor Presentation
• CONSTRUCTION MATERIALS • PROJECT SERVICES • COMPOSITE FIBRE TECHNOLOGIES • EARTH FRIENDLY CONCRETE WAGNERS HOLDING COMPANY LIMITED 21 August 2024 ASX Market Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000 Wagners FY2024 Results – Investor Presentation Please find attached the Investor P
Slide 2: Wagners FY24 Results Presentation
WAGNERS FY24 RESULTS PRESENTATION 21 August 2024
Slide 3: Contents
CONTENTS FY24 RESULTS STRATEGY UPDATE SUMMARY & OUTLOOK APPENDIX
Slide 4: FY24 Group Highlights
Fy24 GROUP highlights $481.4 million SUSTAINED revenue generation AMID IMPROVED MARGINS Group Revenue +1% vs FY23 • Revenue of $481.4 million, consistent with FY23 • Operating EBIT of $39.7 million, exceeding guidance range¹, $140.5 million reflecting an 81% increase versus FY23 Gross Profit • Impro
Slide 5: FY24 Highlights & Performance
FY24 HIGHLIGHTS & PERFORMANCE
Slide 6: FY24 Segment Highlights – Construction Materials
FY24 SEGMENT HIGHLIGHTS CONSTRUCTION MATERIALS (CM) • Improved H1 trading conditions sustained in H2 • Cement – strong volumes, particularly in Q4, with increased contribution from Wagners-operated plants¹ • Concrete • improved performance with increasing volumes, focus on cost control measures and
Slide 7: FY24 Segment Highlights – Project Services
FY24 SEGMENT HIGHLIGHTS PROJECT SERVICES • Precast – completion in Q3 of large precast concrete tunnel segment project, resulting in: • >70,000 total segments, manufactured and delivered from Wacol facility; • Significant positive contribution to overall result; and • Decision to terminate lease of
Slide 8: FY24 Segment Highlights – Composite Fibre Technologies
FY24 SEGMENT HIGHLIGHTS composite fibre technologies (CFT) • Stronger underlying EBIT growth achieved in CFT Australia/New Zealand, reduced by negative impact from unfavourable custom build project in New Zealand¹ • Demand for composite poles continued to increase, as well as strong demand for custo
Slide 9: FY24 Group Performance
FY24 Group performance ONGOING MARGIN IMPROVEMENTS AS THE YEAR PROGRESSED • FY24 revenue consistent to FY23 (A$m) FY24 FY23 Change • Gross margins improved during FY24, primarily due to improved market conditions and cost control within CM Total Revenue 481.4 475.1 6.3 • Enhanced EBIT margins, refle
Slide 10: FY24 Segment Results – CM & Project Services
FY24 Segment results – cm & project services improving margins in consistent construction materials BUSINESS SUPPORTED BY PROJECT RELATED REVENUE STREAMS Construction Materials (CM) Half-Yearly Performance (FY23 & FY24) Project Services (PS) Half-Yearly Performance (FY23 & FY24)¹ (A$m) (A$m) 122.1 1
Slide 11: FY24 Segment Results – CFT
FY24 Segment results – CFT STRENGTH OF CORE BUSINESS OFFSET BY VARIABILITY IN CFT PERFORMANCE, ALBEIT IMPROVING CFT (ex. USA) Half-Yearly Performance (FY23 & FY24) (A$m) 30.0 28.6 27.2 30 25.4 17.5% 20 12.5% 11.9% 10 7.5% 3.5% 3.6 3.7% 1.0 1.0 0 2.5% -0.5 -10 -1.8% -2.5% H1 FY23 H2 FY23 H1 FY24 H2 F
Slide 12: FY24 Balance Sheet
FY24 BALANCE SHEET SIGNIFICANT REDUCTION IN NET DEBT, STRENGTHENING POSITION WORKING CAPITAL • Receivables reduced $26.6 million versus June 2023, driven by: (A$m) Jun-24 Jun-23 Change o completion of Sydney Metro precast concrete tunnel Trade and other receivables 68.5 95.1 (26.6) segment project;
Slide 13: FY24 Cash Flow Statement
FY24 Cash flow STATEMENT CONTINUED FOCUS ON CASH & CAPITAL EXPIDITURE (A$m) FY24 FY23 Change EBITDA 37.4 31.4 6.0 • Improved cash flow primarily as a result of stronger earnings and working capital reduction Non-cash items 7.9 (0.3) 8.2 Changes in working capital 26.3 (15.9) 42.2 • Capital expenditu
Slide 14: Strategy Update
Strategy UPDATE
Slide 15: Key Segments
KEY SEGMENTS WAGNERS Core CMS SEGMENT IS COMPLEMENTED BY ITS COMPOSITE FIBRE TECHNOLOGIES BUSINESSES Construction Materials (CM) PROJECT SERVICES (PS) Composite Fibre Technologies (CFT) • Supplies a range of construction • Provides project-based services to • Durable construction materials – materia
Slide 16: Strategy Overview
STRATEGY OVERVIEW wagners growth strategy is to drive revenue growth and increased returns, through three areas of specific focus: Growing and consolidating Pursuing major Projects, Growth in differentiated core Construction leveraging Wagners' expertise CFT products Materials business and experienc
Slide 17: Key Strategic Priorities
KEY strategic PRIORITIES WAGNERS IS COMMITED TO ADVANCING ITS KEY STRATEGIC PRIORITIES Progress is ongoing – at both a Group and segment level – in enhancing Wagners scale and performance, including: Group • Capex – focus on evaluation criteria for capex deployment and clear return on capital benchm
Slide 18: ESG Framework
ESG Framework identifying and prioritisING THE most relevant and impactful topics TO WAGNERS Health & Safety Fundamental to the way Wagners does business, the Company is unwavering in Community engagement this commitment to never compromise Employee recruitment, engagement & retention Aspire to leav
Slide 19: Summary & Outlook
SUMMARY & OUTLOOK
Slide 20: Medium-Term Outlook
MEDIUM-TERM OUTLOOK THE MEDIUM-TERM DEMAND ENVIRONMENT FOR WAGNERS PRODUCTS AND SERVICES REMAINS ENCOURAGING Favourable resources environment & robust civil Ongoing demand for infrastructure pipeline in innovative new products, South East Queensland¹ Strong forward order driven by effort to (populat
Slide 21: FY25 Segment Outlook
FY25 SEGMENT OUTLOOK There are a number of segment-specific considerations regarding the Company’s outlook for FY25: Construction Materials (CM) PROJECT services Composite Fibre Technologies (CFT) • Demand for construction materials expected • Company will continue to invest in bulk • Anticipated im
Slide 22: Summary
SUMMARY Business strategy leverages wagners quality assets, personnel and culture with strong alignment and integration Well-invested, VERTICAL Attractive Distribution high-quality asset base INTEGRATION end markets footprint significant capital invested, enabling security of supply and consisting o
Slide 23: Appendix
Appendix
Slide 24: FY24 Segment Reconciliations
FY24 SEGMENT RECONCILIATIONS REPORTED SEGMENT RESULTS Construction Materials (CM) Project Services (PS) Composite Fibre Tech (CFT) Earth Friendly Concrete (EFC) ($m) FY24 FY23 Change FY24 FY23 Change FY24 FY23 Change FY24 FY23 Change Revenue 215.9 208.3 7.6 206.2 207.5 (1.3) 59.3 59.2 0.1 0.3 0.4 (0
Slide 25: Who Is Wagners?
WHO IS WAGNERS? Established in 1989 in Toowoomba (Queensland), Wagners is an ASX-listed diversified provider of construction materials, globally Innovative, vertically-integrated producer of new generation building materials, as well as a diverse range of project-specific products and services One o
Slide 26: Construction Materials
CONSTRUCTION MATERIALS WAGNErS Core business IS underpinned by well-invested network of high-quality assets & KEY PERSONNEL Construction Materials spans a variety of interrelated businesses covering residential, industrial, infrastructure, resources and renewables Construction Materials Wagners prov
Slide 27: Project Services
PROJECT SERVICES WAGNErS PROJECTS-RELATED BUSINESS FOCUSES ON PROVIDING CRITICAL PRODUCTS & SERVICES TO MAJOR PROJECTS, GLOBALLY This segment predominantly focusses on large infrastructure and resources projects PROJECT SERVICES Wagners also provides additional services and project-related solutions
Slide 28: Composite Fibre Technologies
COMPOSITE FIBRE TECHNOLOGIES Wagners inhouse design and manufacturing capability provides added Intellectual Property VIA ITS CFT BUSINESS Representing a significant opportunity, Wagners CFT business has dedicated sales and business development teams globally COMPOSITE FIBRE TECHNOLOGIES (CFT) • Lig
Slide 29: Disclaimer
disclaimer The material contained in this presentation is a summary of Wagners Holding completeness or adequacy of any statements or other information contained Company Limited’s (Wagners) activities and results, current at the date of in this presentation. To the maximum extent permitted by law, Wa
Slide 30: Thank you
Thank you Contact: Karen brown Company secretary +61 (0) 410 606 639 SAM WELLS (nwr communications) SAM@NWRCOMMUNICATIONS.COM.AU +61 (0) 427 630 152