Pwr Holdings Ltd. · ASX:PWH
Pwr — FY2023 Earnings Presentation
23 slides from Pwr's earnings presentation, Aug 17, 2023
Slide 1: 2023 Annual Results Presentation
PWR Holdings Limited (ASX:PWH) 2023 Annual Results Presentation For personal use only August 2023 Presented by: Kees Weel – Managing Director Martin McIver – Chief Financial Officer
Slide 2: Important Notice
Important Notice This document has been prepared by PWR Holdings Limited (PWR) and comprises written materials/slides for a presentation concerning PWR. For personal use only This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire
Slide 3: Performance Highlights
Performance Highlights For personal use only 17.1% Revenue Growth Investing in the Future Shareholder Return • Across all major markets • $15 million – new equipment • Dividend policy - 40 to 60% NPAT • 48% - Aerospace & Defence investment • 8.90 cents per share final • 19% - Original Equipment • 4
Slide 4: Performance Challenges and Responses
Performance Challenges and Responses Challenges Responses For personal use only Recruitment & While the labour market pressure is Attraction – engaging with potential employees Retention starting to ease, attraction, effective through job fairs, social media, school and university onboarding, upskil
Slide 5: Performance Overview
Performance Overview 2023 2022 Change Key points Shares on issue 100.4 m 100.3 m 0.1% • Cash Balance – reflects the increased investment For personal use only Market capitalisation (30 June) $870 m $634 m 37.3% in plant and equipment, the acquisitions of Docking Engineering and Bespoke Motorsport Ca
Slide 6: Performance Trend
Performance Trend Revenue (A$ million) EBITDA (A$ million) 140.0 50.0 50.0 30.0 130.0 45.0 45.0 118.3 120.0 39.1 25.0 For personal use only 17.9% 40.0 40.0 19.0% 35.7 110.0 101.1 A$ mi l lion A$ mi l lion A$ mi l lion CAGR1 A$ mi l lion 35.0 CAGR1 20.0 100.0 35.0 29.0 90.0 17.1% 17.1% 30.0 30.0 79.2
Slide 7: Total Shareholder Return (TSR)
Total Shareholder Return (TSR) For personal use only Three year relative TSR ending 30 June 2023 August 2023 – FY2023 Full Year Results 7
Slide 8: Revenue by Market Sector
Revenue by Market Sector Revenue by Customer Market 2023 2022 For personal use only Advanced Emerging Advanced Emerging Growth Cooling Technologies1 Total Cooling Technologies1 Total $'000 $'000 $'000 % $'000 $'000 $'000 % $'000 % Motorsports 55,026 7,230 62,256 52% 47,476 7,809 55,285 55% 6,971 13%
Slide 9: Revenue by Currency
Revenue by Currency Sales to third parties by currency For personal use only 70,000 15.4% 60,000 Revenue in currency '000 50,000 9.3% 40,000 30,000 Currency 30 Jun 2023 30 Jun 2022 Change 2023 Avg 2022 Avg Change 2.4% 20,000 GBP 0.5246 0.5676 (7.6%) 0.5596 0.5457 2.5% USD 0.6618 0.6886 (3.9%) 0.6733
Slide 10: NPAT normalised for Abnormal Growth Costs
NPAT normalised for Abnormal Growth Costs Key points • PWR continues to invest in operational costs For personal use only to support growth, including headcount increases, training and upskilling, trade NPAT Normalised for Abnormal Growth Costs shows, marketing and information technology 23,000 • So
Slide 11: Operating Expenses
Operating Expenses Key points Raw materials and consumables – usage increased by $3.0 For personal use only million or 14.2% Employee expenses A$'000 2023 2022 • 60 or 13.3% headcount increase to support growth • Increased wage and salary rates, Australian super Usage of raw materials and consumable
Slide 12: Balance Sheet
Balance Sheet June June Key points A$000 2023 2022 Assets • Strong liquidity and cash position For personal use only Cash and cash equivalents 17,626 21,499 • $12.1 million cash dividend paid during FY2023 Trade and other receivables 16,006 13,813 • ROE of 24.6% (2022: 27.3%) Inventories 17,789 12,7
Slide 13: Working Capital & Cashflow
Working Capital & Cashflow A$'000 2023 2022 Key points For personal use only Trade and other receivables 16,006 13,813 • Strong sales in June resulted in an increase in Prepayments 1,298 2,125 debtors compared to prior comparative period Inventories 17,789 12,746 • Inventory includes a $2.8 million
Slide 14: Business Outlook
Business Outlook Organic Growth – extensive organic growth opportunities. Disciplined For personal use only approach to selecting which opportunities to progress Europe Manufacturing – consolidated new acquisitions, establishing a manufacturing base from the new 3,590 m2 facility in Rugby, United Ki
Slide 15: Business Outlook – Emerging Technology
Business Outlook – Emerging Technology Electric Vehicle (EV) Market – well placed to deliver high performance battery and electronics cooling products to the ever-expanding prestige EV market For personal use only Cold Plates – the cold plate market previously limited to Additive manufacturing – dev
Slide 16: Pipelines – Key Automotive OEM
Pipelines – Key Automotive OEM Prod. Program Status SOP FY Years FY2024 FY2025 FY2026 Rimac - Nevera (300) Nominated Supplier 2022 4 1 1 Secured / Won Valkyrie + Spider (258) Nominated Supplier 2023 2 1 In production / future production For personal use only AMG X1 Road car (275) Nominated Supplier
Slide 17: Pipelines – Other Production Pipelines
Pipelines – Other Production Pipelines Market Status SOP FY Prod. Years FY2024 FY2025 FY2026 Motorsports - Emerging Tech - F1 current Nominated Supplier - multiple Teams 2023 Ongoing 1 1 Secured / Won Motorsports - Emerging Tech - F1 2026 Nominated Supplier - multiple Teams 2026 Ongoing 1 In product
Slide 18: European Manufacturing (UK)
European Manufacturing (UK) To increase support for our European customers, we have established a manufacturing facility in Rugby, United Kingdom • Facility – 20-year lease for a 3,590 m2 manufacturing faculty (currently only 50% utilised, with space to support For personal use only growth) • Combin
Slide 19: Investing in Capability and Capacity
Investing in Capability and Capacity Capital Investment – an ongoing targeted capital investment program is critical to stay at the forefront of technology developments and to ensure we have sufficient capacity for anticipated and planned growth For personal use only Future capex will be focused on
Slide 20: Experienced Leadership Team
Experienced Leadership Team For personal use only Kees Weel Martin McIver Matthew Bryson Andi Scott Mick Cullen Lisa Dalton Managing Director Chief Financial Chief Technical & General Manager – General Manager – Company Secretary and Chief Executive Officer Commercial Officer Advanced Technology Cap
Slide 21: Investing in People
Investing in People PWR recognises that our People are core to our future success. To deliver on current and future opportunities, PWR is investing in growing headcount and developing the skills of our people For personal use only The People strategy includes: • Investment in Headcount – growth requ
Slide 22: Retaining our Staff
Retaining our Staff 2023 2018 2019 2020 2021 2022 2023 Fi nancial Year Ending 30 June Retaining skilled staff is crucial to achieving our growth plans. We invest Global Headcount 600 in upskilling our staff and strive to provide a rewarding career path 12.50 511 For personal use only Our staff reten
Slide 23: For personal use only
CZ... PWR EUROPE PWR HEAD OFFICE PWR NORTH AMERICA AUSTRALIA PWR Europe Limited PWR Holdings Limited C&R Racing Inc. Unit C, Valley Point Valley Drive Rugby, P.W.R. Performance Products Pty Ltd 6950 Guion Road Warwickshire, CV21 1TN 103 Lahrs Road Ormeau Indianapolis, IN United Kingdom Queensland, 4