Acrow Limited · ASX:ACF
Acrow — Acrow Formwork & Construction Services — Investor Presentation (March 2021)
33 slides from Acrow's investor presentation, Mar 10, 2021
Slide 1: Investor Roadshow Presentation March 2021
For personal use only Acrow Formwork & Construction Services Limited Investor Roadshow Presentation March 2021
Slide 2: Important Notice
IMPORTANT NOTICE This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was p
Slide 3: Key Highlights
For personal use only KEY HIGHLIGHTS Wiggins Island Coal Export Terminal (WICET), Golding Point (Port of Gladstone)
Slide 4: Key Financials – 1H21
For personal use only KEY FINANCIALS – 1H211 EBITDA NPAT SALES CONTR. REVENUE $11.1m $3.7m $28.9m +41% +72% +24% $50.4m EBITDA UNDERLYING INTERIM MARGIN DIVIDEND + 32% EPS 22.0% 1.68cps 0.75cps (ff) +140bps +42% Western Distributor, Sydney Gateway, Perth Metsquare - Dennison Street, Sydney 1.Underly
Slide 5: Key Achievements – 1H21
For personal use only KEY ACHIEVEMENTS – 1H21 Record Secured Melbourne Product Sales National footprint Hire Contracts Formwork Growth - 6 states Momentum - 9Comprises depots 18% (11% in Total formwork revenue up PCP) of group revenue. Secured hire contracts up 120% - growing Effective tool in clien
Slide 6: Market & Business Overview
For personal use only MARKET & BUSINESS OVERVIEW Manhattan, Canberra
Slide 7: Major Transport Infrastructure Projects - Aust
MAJOR TRANSPORT INFRASTRUCTURE PROJECTS - AUST $Bn For personal use only Source: Macromonitor January 2021 FY21 Half Year Results | 7
Slide 8: State of the Markets
STATE OF THE MARKETS State Civil Commercial Industrial Residential For personal use only Queensland New South Wales Victoria South Australia Western Australia Tasmania Good Stable Soft FY21 Half Year Results | 8
Slide 9: Acrow Equipment Hire Wins and Pipeline
ACROW EQUIPMENT HIRE WINS AND PIPELINE Hire Contracts Won ($m) ❑ Equipment hire contracts up 31% in 1H21 on PCP, boosted by contributions from Formwork (Qld), For personal use only Formwork (VIC), Natform (NSW), and Industrial +31% Scaffold (Qld) 17.5 ❑ Pipeline decline from Jun-20 to Dec-20 relates
Slide 10: Strategic Pivot Continues
STRATEGIC PIVOT CONTINUES Group Sales Contribution ❑ Strategic pivot continues away from highly competitive commercial/residential scaffold markets, For personal use only 100% towards highly engineered formwork/industrial 90% scaffold markets 80% 70% ❑ The strategic pivot and resulting asset mix cha
Slide 11: Formwork Revenue – By State + National
FORMWORK REVENUE – BY STATE + NATIONAL Queensland formwork revenue – Half yearly ($m) Victoria formwork revenue – Half yearly ($m) For personal use only 12 11.0 8 6.9 7.0 10 8.8 8.6 7.7 6 7.4 4.5 8 6.4 6.0 6 5.3 4 3.0 2.6 4 1.7 2 0.9 1.1 2 0 0 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21e 1H18 2H18 1H19
Slide 12: Key Drivers for Formwork Success
KEY DRIVERS FOR FORMWORK SUCCESS ✓ Provide Complex Engineering Solutions For personal use only ✓ Product Quality & Versatility ✓ OH&S Compliance/ISO9001 Accreditation Void Forms Travelling Platform Wall Formwork on Wheels CYP Melbourne Metro Sun-Metals Zinc Refinery CYP Melbourne Metro CBD South Des
Slide 13: Marquee Civil Project Involvement
For personal use only MARQUEE CIVIL PROJECT INVOLVEMENT Sydney Melbourne Metro Western Rail Distributor Melbourne Brisbane Metro Cross River Rail Rail FY21 Half Year Results 13
Slide 14: Segmental Breakdown
SEGMENTAL BREAKDOWN % chg ❑ 1H21 includes additional 4-months contribution from Year end 30 June ($000) 1H20 2H20 1H21 PCP Uni-span For personal use only Formwork 20,631 30,045 30,097 46% Industrial Scaffold 3,592 6,568 8,271 130% ❑ Formwork division revenue up 46% on PCP. Benefit Commercial Scaffol
Slide 15: Formwork Division
FORMWORK DIVISION % chg ❑ Strong Formwork division revenue growth, assisted by Year end 30 June ($000) 1H20 2H20 1H21 PCP additional 4-months of Uni-span, increased focus on For personal use only Formwork Hire 11,164 12,455 13,450 20% product sales, Melbourne civil and Natform Consumables 6,247 6,31
Slide 16: Formwork Division – Melbourne Building Momentum
FORMWORK DIVISION – MELBOURNE BUILDING MOMENTUM Arden St Melbourne Metro, Melbourne ❑ Strategy to expand into Victorian civil infrastructure market from almost standing start in 2017 For personal use only ❑ Not impacted by Victorian lockdowns – construction industry recognised as essential service ❑
Slide 17: Formwork Division – Natform
FORMWORK DIVISION – NATFORM ❑ Continuation of strong growth from 4Q20 - 1H21 sales revenue up 33% For personal use only ❑ Largest contract signed to-date - Betaform/Meriton project – 180 George Street Parramatta - $1.1m ❑ Talented and entrepreneurial management team ❑ Very attractive cross-sell oppo
Slide 18: Industrial Scaffold Division
INDUSTRIAL SCAFFOLD DIVISION % chg ❑ Result reflects additional 4-months contribution of Year end 30 June ($000) 1H20 2H20 1H21 PCP sales and earnings from Uni-span on PCP For personal use only Scaffold Hire 650 1,919 2,367 264% Labour Hire 885 3,415 3,606 308% ❑ Business primarily QLD based. Signif
Slide 19: Commercial Scaffold Division
COMMERCIAL SCAFFOLD DIVISION % chg ❑ Commercial Scaffold division revenue impacted by Year end 30 June ($000) 1H20 2H20 1H21 PCP continued softness in NSW market in both price & For personal use only Scaffold Hire 5,135 5,876 4,398 -14% volume Labour & Cartage 8,195 6,372 7,642 -7% Residential 569 1
Slide 20: Key Contract Wins
Updated table KEY CONTRACT WINS Project Name Description Est. Value For personal use only SURAT BASIN OIL AND GAS FACILITY - 3 Acrow contract direct with Origin Energy to provide industrial scaffold equipment and services YEAR RENEWAL CONTRACT. for maintenance to the Origin’s Surat Basin Oil and Gas
Slide 21: Key Contract Wins
KEY CONTRACT WINS Project Name Description Est. Value For personal use only WIDEFORM CONSTRUCTIONS – CROWS Acrow contract direct with Wideform Constructions, working for principal contractor AW NEST STATION, SYDNEY Edwards for the supply of multiple formwork solutions incorporating the MK single-sid
Slide 22: Financials
For personal use only FINANCIALS Gateway, Perth
Slide 23: Profit & Loss Statement
PROFIT & LOSS STATEMENT % chg ❑ 1H21 sales revenue up 32% on PCP, supported by Year end 30 June ($000) 1H20 2H20 1H21 PCP additional 4-months contribution from Uni-span, civil For personal use only Sales 38,122 48,863 50,408 32% infrastructure wins across the East Coast of Australia, Total Contribut
Slide 24: Balance Sheet
BALANCE SHEET Year end 30 June ($000) FY20 1H21 Var (+/-) ❑ Cash decline by $5.1m from 30 Jun-20, primarily Cash 7,239 2,164 (5,075) relates to payment of deferred consideration for For personal use only Receivables 17,015 14,791 (2,223) Natform and Uni-span acquisitions, capital Inventory 5,578 7,9
Slide 25: Cash Flow
CASH FLOW Operating Cash Profit ❑ Operating Cash Profit of $5.5m, +26% on PCP. Excluding one-off IT refresh was $6.3m For personal use only Year end 30 June ($000) 1H19 2H19 1H20 2H20 1H21 ❑ Cashflow from operations $11.7m1 Underlying EBITDA1 6,736 4,814 7,861 9,469 11,095 Leases 2 ❑ Tax paid – $0.6
Slide 26: Capital Expenditure
CAPITAL EXPENDITURE Growth, IT and Maintenance Capex ($’000) ❑ Total capex spend $6.0m For personal use only ❑ Growth capital expenditure has been elevated due to Maintenance IT spend Growth & Non-hire the strategic pivot of the business. This is partly offset by sales of ex-hire gear totaling $5m i
Slide 27: Strategy, Outlook and Priorities
For personal use only STRATEGY, OUTLOOK AND PRIORITIES Melbourne Airport, Melbourne
Slide 28: Acrow Strategy
Continue to Execute on Strategy of Creating For personal use only ACROW STRATEGY Long-term Shareholder Value Earnings accretive Become the Become the leading leading Acquisitions Target High ROI primarily across Engineered Engineered Recruit train and retain the best Organic formwork Formwork Scaffo
Slide 29: National Footprint and Revenue by Geography
Uniquely positioned nationally to offer a full suite of formwork, scaffold, screening products and services across all segments of the construction and industrial maintenance markets Total Revenue by Geography (1H21) For personal use only 5%4% 4% 41% 18% QLD NSW VIC 28% SA WA Brisbane TAS Size:40,06
Slide 30: Outlook
OUTLOOK ❑ New hire contracts strong leading indicator to 2H21 trading activity For personal use only ▪ +31% - 1H21 on pcp ▪ +28% - Two-months to Feb 2021 on pcp ❑ Strong product sales opportunities exist ❑ Significant uplift in Qld activity levels into 2H21: ▪ Cross River Rail ▪ Bruce Highway upgrad
Slide 31: Appendix
For personal use only APPENDIX Acrow Geebung Yard
Slide 32: Acrow Snapshot
ACROW SNAPSHOT A Leading Provider of Engineered Formwork Solutions and Scaffold Hire in Australia For personal use only ACF share price vs Small Ords (adj.) National Customers Employees Footprint 0.60 0.50 Acrow - 6 states 1,300 245 FTE 0.40 - 10 depots 0.30 0.20 Enterprise Annualised Replacement 0.
Slide 33: Appendix – Cashflow
APPENDIX 1 – CASHFLOW $Var Year end 30 June ($000) 1H20 1H21 (+/-) For personal use only Cash flows from operating activities Receipts from customers 46,947 50,097 3,150 Payments to suppliers and employees (42,693) (43,402) (709) Cash generated from operations 4,254 6,695 2,441 Significant costs (1,
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