Slide 1: FY20 Full Year Financial Results
Acrow Formwork & Construction Services Limited Results Presentation FY20 Full Year Financial Results 25 August 2020
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: Acrow Snapshot
ACROW SNAPSHOT1 A Leading Provider of Engineered Formwork Solutions and Scaffold Hire in Australia National Customers Employees Sales contribution footprint Formwork 66% - 6 states 1,300 245 FTE - 10 depots Comm. Scaffold 25% Enterprise Annualised Replacement Ind. Scaffold 9% Value Revenue2 value $9
Slide 4: Acrow Strategy
Continue to Execute on Strategy of Creating 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 Scaffold Growth solutions bu
Slide 5: Uniquely positioned nationally to offer a full suite of products
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 Brisbane Size:40,063m2 Asset Focus: F,CS, IS, Scr Sydney Perth Size:35,563m2 Size:17,600m2 Asset Focus: F,CS, IS, Scr
Slide 6: Key Highlights
KEY HIGHLIGHTS
Slide 7: Key Achievements – 2H20
KEY ACHIEVEMENTS – 2H20 Uni-span COVID-19 Record pipeline & integration National footprint response - 6 states secured contracts complete - 9Co-ordinated depots response Pipeline up 63% and $2.2m in annualised resulted in >$6m in cost savings exceed secured contracts up 62% reduced cash outflow on F
Slide 8: Key Financials – Full Year
KEY FINANCIALS – FULL YEAR 201 EBITDA NPAT NET DEBT REVENUE Pre-AASB16 Pre-AASB16 $14.6m $15.0m +30% $9.0m +20% Post-AASB16 Post-AASB16 +$10.9m $87.0m $19.5m2 $7.9m2 SALES FULL YEAR OP. CASH CONTRIBUTION DIVIDEND PROFIT3 + 22% MARGIN 1.05cps (ff) $11.2m 59.8% +27% 1.Underlying performance. Compariso
Slide 9: Key Financials – 2nd Half
KEY FINANCIALS – 2ND HALF 201 EBITDA NPAT NET DEBT REVENUE Pre-AASB16 Pre-AASB16 $14.6m $9.5m +102% $6.6m +115% Post-AASB16 Post-AASB16 -$2.9m3 . $48.9m $11.6m2 $5.8m 2 SALES FINAL OP. CASH CONTRIBUTION DIVIDEND PROFIT4 + 39% MARGIN 1.05cps (ff) $6.8m 58.5% +21% 1.Underlying performance. Comparisons
Slide 10: Executive Summary
EXECUTIVE SUMMARY ❑ FY20 Operating performance (vs. PCP): Total Revenue by Geography (FY20) ▪ Revenue of $87.0m, +22% ▪ Sales contribution of $52.0m, +22% and Contribution margin of 59.8%, -20bps 4%6% ▪ Underlying EBITDA of $15.0m, +30% ($19.5m, post adoption - 5% AASB16) 14% 42% ▪ Final dividend 1.
Slide 11: COVID-19 Response
COVID-19 RESPONSE Immediate implementation of risk mitigation measures No lost days or cases of COVID-19 across all operations In excess of $6m in reduced cash outflows over six months (to Sep-20) Six-month deferral of debt repayments and extension of loan agreements Re-negotiation and extension of
Slide 12: Uni-span Integration Complete
UNI-SPAN INTEGRATION COMPLETE Integration completed on schedule Annualised cost savings of $2.2m - exceed original projections of $1.5m -$2.0m Two Uni-span depots closed and operations consolidated into Acrow depots Sales and Eng. teams fully integrated – enhanced capabilities in other disciplines O
Slide 13: Market & Business Overview
MARKET & BUSINESS OVERVIEW
Slide 14: Major Transport Infrastructure Projects - Aust
MAJOR TRANSPORT INFRASTRUCTURE PROJECTS - AUST $Bn Source: Macromonitor Jul 20 FY20 Full Year Results | 14
Slide 15: State of the Markets
STATE OF THE MARKETS State Civil Commercial Industrial Residential Queensland New South Wales Victoria South Australia Western Australia Tasmania Good Stable Soft FY20 Full Year Results | 15
Slide 16: Acrow Equipment Hire Wins and Pipeline
ACROW EQUIPMENT HIRE WINS AND PIPELINE Hire Contracts Won ($m) ❑ Equipment hire contracts up 62% in 2H20 on PCP, boosted by contributions from Formwork (VIC), Natform (NSW), and Industrial Scaffold (Qld) +62% 16.2 ❑ Integrated sales teams executing on cross-sell opportunities 13.4 ❑ Current pipeline
Slide 17: Segmental Breakdown
SEGMENTAL BREAKDOWN ❑ FY20 includes 8-months contribution from Uni-span Pre- AASB16 2H20/ FY20/ Year end 30 June ($000) FY19 1H20 2H20 FY20 2H19 FY19 ❑ Formwork division reported a 29% increase in revenue Formwork 39,370 20,631 30,045 50,676 50% 29% on the prior year Comm. & Resi Scaffold 31,640 13,
Slide 18: Formwork Division
FORMWORK DIVISION 2H20/ FY20/ ❑ Formwork division revenue up 29% on PCP. 2H20 up Year end 30 June ($000) FY19 1H20 2H20 FY20 2H19 FY19 strongly (+56% - skewed to 4Q20), assisted by 8- Formwork Hire 21,666 11,164 12,455 23,619 10% 9% months of Uni-span, strong growth in product sales Consumables 12,6
Slide 19: Commercial & Residential Scaffold Division
COMMERCIAL & RESIDENTIAL SCAFFOLD DIVISION 2H20/ FY20/ ❑ Commercial & Residential Scaffold division revenue Year end 30 June ($000) FY19 1H20 2H20 FY20 2H19 FY19 impacted by strategic exit of two-storey residential Scaffold Hire 9,257 5,135 5,876 11,012 47% 19% business in NSW & VIC Residential 7,52
Slide 20: Industrial Scaffold Division
INDUSTRIAL SCAFFOLD DIVISION ❑ Result reflects 8-months contribution of sales and Year end 30 June ($000) FY19 1H20 2H20 FY20 earnings from Uni-span Scaffold Hire 650 1,919 2,569 Labour Hire 885 3,415 4,300 ❑ Provides new client opportunities in the energy, Product Sales 2,057 1,233 3,290 mining and
Slide 21: Key Contract Wins & Extensions
KEY CONTRACT WINS & EXTENSIONS Project Name Description Est. Value Sun-Metals - Townsville Acrow/Unispan contract at the Sun-metals Zinc refinery in Townsville, commenced Dec 19 for 6 -12 months. Main contract awarded to Acrow by Western Downs contracting for the supply of Acrow Supercuplok for high
Slide 22: Key Contract Wins & Extensions (Cont')
KEY CONTRACT WINS & EXTENSIONS (CONT’) Project Name Description Est. Value Melbourne Western Distributor Multiple contracts awarded to Acrow from various contractors including CPB John Holland JV, Speedpro Industries, Civil Infrastructure and Premier Civil Structures, commencing Feb 19 for 24 months
Slide 23: Financials
FINANCIALS
Slide 24: Profit & Loss Statement
PROFIT & LOSS STATEMENT1 Pre- AASB16 2H20/ FY20/ ❑ Full year sales revenue up 22% on PCP, supported by Year end 30 June ($000) FY19 1H20 2H20 FY20 2H19 FY19 8-month contribution from Uni-span, civil Sales 71,010 38,122 48,863 86,984 39% 22% infrastructure wins across the East Coast of Australia, Tot
Slide 25: Balance Sheet
BALANCE SHEET ( includes adoption of AASB16) Var $ ❑ AASB 16 Leases adopted effective 1 July 2019 FY20 vs. ❑ Strong cash generation in 2H20, assisted by strong Year ended 30 June ($000) FY19 1H20 FY20 1H20 2H20 EBITDA contribution, COVID-19 mitigation Cash 3,290 6,150 7,239 1,088 measures, and impro
Slide 26: Cash Flow
CASH FLOW Operating Cash Profit ❑ Operating Cash Profit of $11.2m, +27% on PCP ❑ Cashflow from operations $21.6m1 Year ended 30 June ($000) FY16 FY17 FY18 FY19 FY20 ❑ Significant items primarily relate to non-recurring Uni- Underlying EBITDA 5,249 8,915 10,604 11,550 15,018 span acquisition and inte
Slide 27: Capital Expenditure
CAPITAL EXPENDITURE Growth and Maintenance Capex ($’000) ❑ Total capex spend $12.1m ❑ Maintenance capex increased to $3.8m, in-line with Maintenance Growth & Non-hire growth in Company – 73% of annualised depreciation. 12,086 ❑ Growth capex includes: 8,264 ▪ Supercuplock (incorporating Sun-metals) $
Slide 28: Outlook and Priorities
OUTLOOK AND PRIORITIES
Slide 29: Outlook
OUTLOOK ❑ 1Q21 trading has commenced in line with 4Q20, excluding the contribution from the Sun-metals contract ❑ Melbourne lockdown – no operational impact to-date. Civil infrastructure projects continuing to ramp up. However, expect possible delays to new privately funded projects ❑ Volume of reco
Slide 30: Priorities
PRIORITIES Targeting High ROI Organic Growth Opportunities Product Sales/Online Commercial Scaffold Platform - Greater focus Opportunities – monitor on product sales across competitor landscape for all brands. Launch growth opportunities online platform Engineering Team - Industrial Scaffold - Promo
Slide 31: Appendix
APPENDIX
Slide 32: Appendix 1 – Profit & Loss AASB 16 Reconciliation
APPENDIX 1 – PROFIT & LOSS AASB 16 RECONCILIATION Reversal of Recognition Pre - operating of AASB16 Post - AASB16 lease depreciation AASB16 Year ended 30 June ($000) adoption expense and Interest adoption EBITDA 15,018 4,443 - 19,461 Depreciation -4,994 - -4,379 -9,373 EBIT 10,024 4,443 -4,379 10,08
Slide 33: Appendix 2 – Cashflow AASB 16 Reconciliation
APPENDIX 2 – CASHFLOW AASB 16 RECONCILIATION Pre - Post- AASB 16 AASB 16 AASB 16 Year ended 30 June 2020 ($000) Adoption Adjust. Adoption Cash flows from operating activities Receipts from customers 87,707 87,707 Payments to suppliers and employees (75,862) 4,443 (71,418) Cash generated from operati