Wagners Holding Co. Ltd. · ASX:WGN
Wagners — Investor Presentation (August 2020)
32 slides from Wagners's investor presentation, Aug 25, 2020
Slide 1: ASX cover letter: Investor Presentation for Year Ended 30 June 2020
►CONSTRUCTION MATERIALS HEAD OFFICE: ►TRANSPORT SERVICES 11 BALLERA COURT ►CEMENT, FLYASH & LIME 1511 TOOWOOMBA CECIL PLAINS ROAD ►PRECAST CONCRETE WELLCAMP QLD 4350 ►REINFORCING STEEL ►COMPOSITE FIBRE TECHNOLOGIES POSTAL ADDRESS: PO BOX 151 DRAYTON NORTH QLD 4350 INT. PREFIX STD PREFIX NUMBER TELEP
Slide 2: FY20 Investor Presentation
FY20 INVESTOR PRESENTATION AUGUST 2020 Newcastle Boardwalk NSW
Slide 3: Disclaimer
DISCLAIMER The material contained in this presentation is a summary of Wagners Holding Company Limited’s (Wagners) activities and results, current at the date of preparation, 24 August 2020. The information in this presentation is in summary form only, general in nature and does not purport to be co
Slide 4: FY20 Summary
FY20 SUMMARY Innovative, Integrated, International Toowoomba Concrete Batch Plant QLD
Slide 5: FY 2020 Summary
FY 2020 SUMMARY SALES $252.0m NGBM Sales growth 15.6% Proforma EBIT $9m Sales Growth of 5.1% CMS Sales growth 3.4% FY19 $25.6 FY19 $239.8m
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Agitator Trucks Toowoomba QLD
Slide 7: FY20 Consolidated Proforma Results
FY20 CONSOLIDATED PROFORMA RESULTS ($m) FY20 FY19 Change COMMENTARY Total Revenue 252.0 239.8 12.2 ▪ Revenue Increase of 5.1% due to increased Gross Profit 143.9 150.6 -6.7 transport, quarry, concrete and CFT sales Operating Costs partially offset by lower cement sales - Employee expenses 48.1 50.0
Slide 8: FY20 Proforma Segment Results
FY20 PROFORMA SEGMENT RESULTS ▪ CMS C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S ▪ Sales due to quarries, transport and concrete, partially offset by reduced cement volumes ($m) FY20 FY19 Change Total Revenue 217.1 209.9 7.2 ▪ EBIT impacted by the mix of work, and increased EBIT re
Slide 9: Proforma Cashflow
PROFORMA CASHFLOW ($m) FY20 FY19 Change EBITDA 23.2 38.7 -15.5 Non-cash items 0.5 -1.2 1.7 Changes in working capital -19.7 -2.1 -17.6 Changes in provisions 1.3 1.5 -0.2 Cash flow from operations 5.3 36.8 -31.5 Capital Expenditure -32.6 -32.1 -0.5 Proceeds from sale of assets 0.9 6.2 -5.3 Net cash f
Slide 10: Working Capital and Net Debt
WORKING CAPITAL ($m) FY20 FY19 Change Trade and other receivables 55.6 42.7 12.9 ▪ Increase in working capital mainly due Inventories 21.8 19.5 2.3 to timing of Trade and other receivables Trade and other payables -33.6 -28.2 -5.4 at 30 June 2020 Current tax assets/(liabilities) 3.0 -3.7 6.7 Net wor
Slide 11: Composite Fibre Technologies (CFT)
FY20 SUMMARY N E W G E N E R AT I O N B U I L D I N G M AT E R I A L S COMPOSITE FIBRE TECHNOLOGIES (CFT) ➢ Made in Queensland by Wagners inhouse designed and manufactured pultrusion machines ➢ Distributed globally ➢ Lightweight, non-corrosive, non-conductive fibreglass building materials; ▪ Electri
Slide 12: CFT – Australia and New Zealand
FY20 SUMMARY N E W G E N E R AT I O N B U I L D I N G M AT E R I A L S CFT – AUSTRALIA AND NEW ZEALAND ➢ 13% increase in sales on FY19 ➢ Over 350 projects delivered ➢ Expansion of Wellcamp facility ➢ New product development – round pole Note: All comparatives are prior corresponding period, FY19 11
Slide 13: CFT – International
FY20 SUMMARY N E W G E N E R AT I O N B U I L D I N G M AT E R I A L S CFT – INTERNATIONAL USA ➢ No growth with impact of Covid-19 ➢ Pultrusion machine arrived in USA ➢ Pursuing opportunities with manufacture from Australia UK / MIDDLE EAST ➢ Significant revenue contribution from projects completed
Slide 14: EFC saves 28t of carbon dioxide for a standard house
For a standard 4 bedroom house requiring 120M3 of concrete, EFC® will save 28t of carbon dioxide emissions, which is equivalent to taking 10 cars off the road for a year. 13
Slide 15: EFC – Australia
FY20 SUMMARY N E W G E N E R AT I O N B U I L D I N G M AT E R I A L S EFC® – AUSTRALIA ➢ 5 concrete plants in SEQ with EFC capabilities ➢ Continued Research and Development ➢ Additional specialist personnel 14 Qantas Academy Toowoomba QLD
Slide 16: EFC – International
FY20 SUMMARY N E W G E N E R AT I O N B U I L D I N G M AT E R I A L S EFC® – INTERNATIONAL UK / EUROPE ➢ DIBt approval obtained promoting increased interest in EFC internationally ➢ Successful trials of EFC in UK and Germany ➢ Increased demand expected in FY21 INDIA ➢ BIS approval progressing ➢ 5,0
Slide 17: Crushing Operations
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S CRUSHING OPERATIONS ➢ Delivering crushed rock products to local markets ➢ 7 quarry sites ➢ Shepton acquisition in 2020 ➢ Quarry production increase of 26% 16 Shepton Quarry QLD
Slide 18: Crushing Projects
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S CRUSHING PROJECTS ➢ On site crushing and materials processing services ➢ Significant growth in FY20 from projects ranging from 15,000 to 1,000,000 tonnes ➢ Continued growth in FY21 with contracts secured 17 South Back Creek
Slide 19: Cement
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S CEMENT ➢ Cement grinding facility at Pinkenba – 1.3Mtpa capacity ➢ Significant reduction in sales in FY20 ➢ Return to stable volumes in FY21 with decreased margins 18 Pinkenba Cement QLD
Slide 20: Concrete Operations
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S CONCRETE OPERATIONS ➢ 6 operational concrete plants – 2 additional sites secured ➢ Channel to market for Wagners other construction materials and services ➢ 100% increase in concrete volumes ➢ Increased demand expected in FY
Slide 21: Concrete Projects
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S CONCRETE PROJECTS ➢ Mobile concrete operations in remote and regional locations ➢ Limited opportunities and no secured projects in FY20 ➢ Increased activity expected in FY21 – wind farm and resource sector infrastructure pro
Slide 22: Precast
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S PRECAST ➢ Products used in bridges, overpasses and tunnels ➢ Limited work in FY20 – secured $40million Cross River Rail project Note: All comparatives are prior corresponding period, FY19 21 Toowoomba Second Range Crossing Q
Slide 23: Transport Projects
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S TRANSPORT PROJECTS ➢ Haulage services in resource sector ➢ 9 haulage projects undertaken across Queensland and Northern Territory in FY20 ➢ Significant investment in road train combinations to service long term contracts ➢ C
Slide 24: Major Projects
FY20 SUMMARY C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S MAJOR PROJECTS ➢ History of executing major projects ➢ Concrete and quarry material supply to large LNG projects ➢ Remote and challenging locations ➢ No contracts secured in FY 20 ➢ Dedicated business development team 23 Sak
Slide 25: Outlook
OUTLOOK CFT Lightpoles Wellcamp QLD
Slide 26: Outlook – New Generation Building Materials – CFT
OUTLOOK NEW GENERATION BUILDING MATERIALS - CFT ▪ Increased production capacity to deliver increased margins ▪ Revenue growth from pedestrian infrastructure and road bridge market ▪ International growth – focus on USA and Middle East ▪ Continued research and development ▪ In house manufacturing capa
Slide 27: Outlook – New Generation Building Materials
OUTLOOK NEW GENERATION BUILDING MATERIALS ▪ Increased sales in SEQ through concrete plant network ▪ International partnering arrangements delivering revenue ▪ Indian standards approval ▪ Continued research and development ▪ In house manufacturing capabilities ▪ Product improvements 26
Slide 28: Outlook – Construction Materials and Services
OUTLOOK C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S ▪ Cross River Rail precast tunnel segments ▪ Increased Cement volumes ▪ Continued growth in concrete plant volumes ▪ Secured crushing projects revenue ▪ Secured bulk haulage revenue ▪ Increased infrastructure activity Tunnel Segm
Slide 29: Conclusion
CONCLUSION FY2020 ▪ No dividend declared ▪ Significant capital investment since listing ▪ Commitment to growth strategy ▪ Innovative – investment in R&D ▪ Integrated – continued vertical integration ▪ International – expansion of NGBM globally ▪ Impacts of Covid-19 remain uncertain 28 One Millionth
Slide 30: Appendix 1 – Consolidated Proforma to Statutory Results Reconciliation
APPENDIX 1 F Y 2 0 C O N S O L I D AT E D P R O F O R M A T O S TAT U T O RY R E S U LT S R E C O N C I L I AT I O N ($000) FY20 FY19 Statutory EBIT 8,627 37,893 Reversal of fair value on derivative instruments (gain)/loss 1,065 787 AASB 16 - Rental Payments (5,513) AASB 16 - Right of Use Depreciati
Slide 31: Appendix 1 – Cont.
($000) FY20 AASB 16 FY20 Statutory APPENDIX 1 – CONT. Current Assets FY20 Statutory Adjustments Pre AASB 16 FY19 F Y 2 0 C O N S O L I D AT E D P R O F O R M A T O S TAT U T O R Y R E S U LT S R E C O N C I L I AT I O N Cash and cash equivalents 3,436.0 3,436 6,101 Trade and other receivables 55,586
Slide 32: Appendix 2 – Boral Litigation
APPENDIX 2 B O R A L L I T I G AT I O N ▪ The Company commenced proceedings against Boral regarding a dispute over the interpretation of a pricing clause in the Cement Supply Agreement seeking declarations that a series of Pricing Notices issued by Boral were invalid and to the extent that any valid
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