Acrow Limited · ASX:ACF
Acrow — Acrow Formwork & Construction Services — FY2019 Earnings Presentation
30 slides from Acrow's earnings presentation, Aug 29, 2019
Slide 1: Results Presentation: 2019 Full Year Financial Results
For personal use only Acrow Formwork & Construction Services Limited Results Presentation 2019 Full Year Financial Results 30 August 2019
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 For personal use only persons. The information contained in t
Slide 3: Acrow Snapshot
Acrow Snapshot A Leading Provider of Engineered Formwork Solutions and Scaffold Hire in Australia For personal use only National Customers Employees Sales contribution footprint Formwork - 6 states 1,100 153 FTE - 9 depots 64% (focus) Enterprise Revenue Unrecognised Scaffold value $71.0m tax losses
Slide 4: Acrow Branch Network and Product Offering
Acrow Branch Network and Product Offering Expanding Footprint - Becoming a Leading National Provider of Formwork, Scaffold and Screening Products For personal use only Brisbane Size:40,063m2 Asset Focus: F,S,Scr Sydney Perth Size:35,563m2 Size:17,600m2 Asset Focus: F,S,Scr Asset Focus: F & Scr Adela
Slide 5: FY19 Financial Highlights
FY19 Financial Highlights 5th Consecutive Year of EBITDA Growth For personal use only EBITDA1 NPAT1 NET DEBT REVENUE $11.6m $7.5m $3.6m + 9% $71m EPS1 DIVIDEND2 OP. CASH PROFIT1,3 4.4¢ps 2.0¢ps + 9% $8.8m 1.Underlying performance. 2. Maiden final dividend of 0.5¢ps declared in FY18. Payout ratio bas
Slide 6: Executive Summary
Executive Summary 5th consecutive year of EBITDA growth for the Group, supported by 10-month contribution from For personal use only Natform acquisition and growth capex deployed along the east coast Wind down of existing projects and delays in new project starts dampened 2H19 performance. Total
Slide 7: Laying the Foundations for Growth
Laying the Foundations for Growth A Transformational Year for Acrow For personal use only First full year as a publicly listed Company Business continues to re-base from highly fragmented, price competitive residential scaffold market towards value-added, highly engineered civil formwork solutio
Slide 8: Our Markets
For personal use only Our Markets SLIMMAX SOLDIERS
Slide 9: Major Transport Infrastructure Projects – Australia
Major Transport Infrastructure Projects – Australia Value of Work Done Predicted to Increase by over 50% over Next Four Years For personal use only $bn Source: Macromonitor, June 2019 9
Slide 10: State of the Markets
State of the Markets Markets Conditions Vary by State and Segment For personal use only State Civil Commercial Residential Queensland New South Wales Victoria South Australia Western Australia Tasmania Good Stable Soft 10
Slide 11: Acrow Equipment Hire Wins & Pipeline
Acrow Equipment Hire Wins & Pipeline Outlook for Equipment Hire Remains Positive into FY20 For personal use only Hire Contracts Won ($m) Commentary New contract wins in second half traditionally softer due to 11.1 Christmas/New Year period +16% 10.0 9.6 +12% Equipment hire contracts won remained
Slide 12: Financial Results
For personal use only Financial Results HEAVY SHORING
Slide 13: Financial Results Summary
Financial Results Summary Summarised P&L ($’000)1. Commentary For personal use only Year ended 30 June FY18 FY19 Var % Var $ Sales revenue up 9%, supported by 10-month contribution from Pro-forma Natform and stronger Formwork business revenue Sales 65,344 71,010 9% 5,666 39,331 42,615 8% 3,284 S
Slide 14: Segmental Overview
Segmental Overview Summarised Segmental Performance ($000)1. Commentary For personal use only Formwork business, including 10-month contribution from Natform Year ended 30 June FY18 FY19 % Var. $ Var. reported a 27% increase in revenue over the year Formwork 29,720 37,730 27% 8,010 Scaffold 35,624
Slide 15: Formwork Overview
Formwork Overview Summarised Performance ($000) Commentary For personal use only Formwork hire revenue up 39% on prior period, includes 10-month Year ended 30 June FY18 FY19 % Var. $ Var. contribution from Natform. Like for like sales up 5%. Formwork Hire 15,583 21,666 39% 6,083 Formwork Sales & C
Slide 16: Scaffold Overview
Scaffold Overview Summarised Performance ($000) Commentary For personal use only Scaffold business revenue impacted by weaker activity and increased Year ended 30 June FY18 FY19 % Var. $ Var. competitive pressures, primarily in key Queensland and New South Scaffold Hire 14,297 9,257 -35% -5,040 Wa
Slide 17: Balance Sheet
Balance Sheet Consolidated Balance Sheet ($’000) Commentary For personal use only Year ended 30 June Jun-18 Jun-19 Strong balance sheet position as at 30 June 19 Cash 4,918 3,290 Net debt position of $3.6m, significant financing headroom with four Receivables 10,549 13,498 year $15M facility in
Slide 18: Cash Flow
Cash Flow Operating Cash Profit ($’000) For personal use only Commentary Year ended 30 June FY15 FY16 FY17 FY18 FY19 The proxy for operating cash profit in the Acrow business is Underlying Underlying EBITDA 3,098 5,249 8,915 10,604 11,550 EBITDA less maintenance capex and tax paid. Operating cash
Slide 19: Capital Expenditure
Capital Expenditure Growth and Maintenance Capex ($’000) Commentary For personal use only Maintenance Growth & Non-hire The charts at left present the historical gross and net capex spend, split between growth and maintenance, for the historical periods FY15 to FY19 9,616 Maintenance capex has a
Slide 20: Business Strategy
For personal use only Business Strategy WALL SYSTEMS
Slide 21: Business Strategy
Business Strategy Continue to Execute on Strategy of Creating Long-term Shareholder Value For personal use only Vision of becoming Earnings accretive the leading Recruit train and Organic Acquisitions Engineered retain the best Growth primarily across Formwork management and opportunities formwork s
Slide 22: Our Vision
Our Vision To be the Leading Provider of Engineered Formwork Hire Equipment Solutions to the Australian Construction Market For personal use only The acquisition of Natform and the success of its integration into Acrow has crystalised the vision of our business. Future investment in our business
Slide 23: Our People
Our People It is the Customer Solutions Focus, Flexibility, Urgency, and Can-Do Attitude of our People that will Drive the Acrow Difference For personal use only Acrow is investing heavily in its people - - Maintaining a strong, experienced and successful Senior Management team - Developing in-hou
Slide 24: Growth Opportunities
Growth Opportunities Leverage Cross-sell Opportunities to Expand into New Markets with New Products and Services For personal use only Scaffold Formwork Rev. Rev. $33m $38m National Footprint Competitive National Footprint Engineering Capability Advantage Equipment Flexibility Equipment Flexibility
Slide 25: Trading Update & Outlook
For personal use only Trading Update & Outlook SCREENS
Slide 26: Trading Update & Outlook
Trading Update & Outlook Hire Revenue Pipeline at Record Levels For personal use only Commentary New financial year has commenced in line with 4Q19 Potential pipeline at record levels, up 61% on same time last year Industry forecasts point to buoyant transport infrastructure construction activ
Slide 27: Appendix
For personal use only Appendix SLIMMAX SOLDIERS
Slide 28: Segmental Overview (Traditional Format)
Segmental Overview (Traditional Format) Summarised Segmental Performance ($000) Commentary For personal use only Year ended 30 June FY18 FY19 % Var. $ Var. Traditional segmental reporting format to be replaced by new format, Formwork Hire 15,583 21,666 39% 6,083 more reflective of business unit pe
Slide 29: Reconciliation of Earnings ($000)
Reconciliation of Earnings ($000) Significant For personal use only Year ended 30 June Underlying items adj. Reported EBITDA 11,550 -897 10,653 Depreciation -3,262 -3,262 Net interest -723 -241 -964 Pre-tax profit 7,565 -1,138 6,427 Share based payments -1,420 -1,420 Tax expense -59 -59 Net Profit a
Slide 30: Thank you
For personal use only Thank you
Acrow Formwork & Construction Services — FY2019 Earnings Presentation on 6ix