Vulcan Steel Ltd. · ASX:VSL
Vulcan Steel — ASX CEO Connect Conference 2023
23 slides from Vulcan Steel's conference presentation, Mar 7, 2023
Slide 1: Vulcan to present at the ASX CEO Connect Virtual Conference
Vulcan Steel Limited (Vulcan), ASX: VSL, NZX: VSL ASX/NZX Release For personal use only 7 March 2023 Vulcan to present at the ASX CEO Connect Virtual Conference Please find attached a copy of Vulcan’s presentation for the ASX CEO Connect Virtual Conference on Tuesday, 7 March 2023. Vulcan’s presenta
Slide 2: ASX CEO Connect Conference 2023
For personal use only ASX CEO CONNECT CONFERENCE 2023
Slide 3: Disclaimer
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO For personal use only Disclaimer The material contained in this document is a presentation They may also be based on factors which are subject of information about Vulcan Steel Limited’s (“Vulcan”) to significant uncertainties and contingencies which activit
Slide 4: Agenda
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO For personal use only Agenda 01 Introduction 02 Overview 03 Financials 04 Outlook & Guidance 05 Q&A 3
Slide 5: Introduction
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO 01 For personal use only Introduction 4
Slide 6: Introduction
ASX CEO CONNECT CONFERENCE 2023 INTRODUCTION VULCAN.CO Introduction For personal use only Vulcan is an industrial distributor and processor of steel and metal products across Australia and New Zealand Listed on the ASX and NZX sixteen Vulcan’s Total Shareholder Return We achieved NPAT of NZ$142m in
Slide 7: Overview
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO 02 For personal use only Overview 6
Slide 8: Vulcan's History
ASX CEO CONNECT CONFERENCE 2023 OVERVIEW VULCAN.CO Vulcan’s History For personal use only The journey so far... Acquired Ullrich Successfully Aluminium’s Vulcan operates listed on the ASX extrusion, 29 logistics and on 4 November distribution Consolidated processing 2021. and fabrication Acquired in
Slide 9: Vulcan's Business
ASX CEO CONNECT CONFERENCE 2023 OVERVIEW VULCAN.CO Vulcan’s Business For personal use only Vulcan recently added aluminium to the company’s steel & metals distribution and processing services offering STEEL METALS Steel Distribution Plate Processing Coil Processing Stainless Steel Engineering Steels
Slide 10: Vulcan's Business continued
ASX CEO CONNECT CONFERENCE 2023 OVERVIEW VULCAN.CO Vulcan’s Business continued For personal use only Trans-Tasman positions with a national footprint and significant scale drive operating leverage and supply chain capability CAIRNS DARWI N TOWNSVILLE MACKAY W HA NGA REI x3 x3 ROCKHAMPTON A UCK LA ND
Slide 11: Vulcan's Business: our business model at a glance
ASX CEO CONNECT CONFERENCE 2023 OVERVIEW VULCAN.CO Vulcan’s Business For personal use only Our business model at a glance... OUTCOM E Accountable profit centres 97% Delivery in full, on time1 EN A BL ER S Internally developed Flat Structure fit-for-purpose IT OPER A TI ON A L EX CEL L EN CE Inventor
Slide 12: Growth Strategy & Update
ASX CEO CONNECT CONFERENCE 2023 OVERVIEW VULCAN.CO Growth Strategy & Update For personal use only Expansion of Business Brownfield Entry into new product and/or Mergers and improvement expansion geographies service offering Acquisitions initiatives • Strong track record in • Expanded into 10 regiona
Slide 13: Financials
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO 03 For personal use only Financials 12
Slide 14: 1H FY23 Performance Highlights
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO 1H FY23 Performance Highlights For personal use only REVENUE 1 GROSS PROFIT $/TONNE 1 GROSS MARGIN NZ$638m +30% 35.9% 2 +38% on NZ$463m in 1H FY22 1H FY23 on 1H FY22 -5.4% on 41.3% in 1H FY22 ADJUSTED EBITDA 1,3 ADJUSTED NPAT 5 (EXCLUDING SIGNIFIC
Slide 15: Context for 1H FY23 Operations and Results
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO Context for 1H FY23 Operations and Results For personal use only • Australia and New Zealand activity level - Normalisation from previous peak demand period in FY22 relating to COVID-19 compounded by weaker economic conditions - Some weather-relat
Slide 16: Group Financial Performance
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO Group Financial Performance For personal use only • Revenue lift in 1H FY23 included first-time contribution from MILLION NZ$ 1H FY23 1H FY22 % Change our acquired aluminium business and 9% year-on-year (YoY) Revenue 638.0 463.0 +37.8% increase in
Slide 17: Key drivers of EBITDA change
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO Key drivers of EBITDA change For personal use only • Underlying volume change (excluding aluminium) contributed NZ$29m decline YoY • Margin growth contributed NZ$14m increase YoY • Underlying Gross OPEX (excluding aluminium business) in 1H FY23 wa
Slide 18: Cashflow & Working Capital
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO Cashflow & Working Capital For personal use only • Cash generated from earnings were applied toward: (MILLION NZ$) 1H FY23 1H FY22 % Change - Higher payments for inventory received in 1H FY23 Receipts from customers 736.1 522.2 46% - Higher tax pa
Slide 19: Balance Sheet Metrics & Dividend
ASX CEO CONNECT CONFERENCE 2023 FINANCIALS VULCAN.CO Balance Sheet Metrics & Dividend For personal use only • Remain financially well-positioned to execute on growth opportunities NET DEBT COVER (Net debt/EBITDA, pre IFRS 16) 3.5 • 60%-80% annual dividend payout policy retained 3.0 3.0 - Declared 1H
Slide 20: Outlook & Guidance
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO 04 For personal use only Outlook & Guidance 19 19
Slide 21: Outlook & Guidance
ASX CEO CONNECT CONFERENCE 2023 OUTLOOK & GUIDANCE VULCAN.CO Outlook & Guidance For personal use only Outlook Earnings Guidance • As outlined in August last year with our full year FY22 results, we • Based on current view of market conditions and recent trading, we expected the present financial yea
Slide 22: Q&A
ASX CEO CONNECT CONFERENCE 2023 VULCAN.CO 04 For personal use only Q&A 21
Slide 23: For personal use only
For personal use only VULCAN.CO