Slide 1: H1 FY23 Results Presentation
H1 FY23 RESULTS PRESENTATION 28 February 2023 2022 AGM PRESENTATION | [X] NOVEMBER 2022
Slide 2: H1 FY23 Financial Highlights
H1 FY23 FINANCIAL HIGHLIGHTS DGL GROUP CONTINUES TO PERFORM STRONGLY H1 FY23 HIGHLIGHTS (vs H1 FY22) SALES REVENUE ($m) UNDERLYING EBITDA¹ ($m) Sales Revenue +52% (+$74.2m) H1 H2 H1 H2 226.7 42.6 Gross Profit +48% (+$25.7m) 103.8 143.0 217.2 15.0 22.9 29.7 50.6 9.6 FY21 FY22 H1 FY23 FY21 FY22 H1 FY2
Slide 3: H1 FY23 Operational Highlights
H1 FY23 OPERATIONAL HIGHLIGHTS DGL CONTINUES TO INVEST TO ENHANCE CAPABILITIES • H1 FY23 sales revenue of ~$217 million (+52% vs. pcp) and net tangible assets of ~$200 million, showing growth and balance sheet strength ~$217m H1 FY23 Sales Revenue ~$200m • • H1 FY23 underlying operating cash flow co
Slide 4: H1 FY23 Group Performance
H1 FY23 GROUP PERFORMANCE A$m H1 FY23 H1 FY22 % variance Sales revenue 217.2 143.0 52% • During H1 FY23, 69% of EBITDA growth was organic, the balance coming Cost of sales (138.0) (89.6) from embedded FY22 acquisitions plus completion of six new strategic Gross Profit 79.2 53.4 48% acquisitions in H
Slide 5: Balance Sheet
BALANCE SHEET A$m 31-Dec-22 30-Jun-22 • Strong balance sheet with flexibility to support future growth Cash & cash equivalents 24.4 25.4 Trade & other receivables 62.0 56.6 • Net working capital ($66.0 million) consistent with 30 June 2022 balance Inventories 47.2 48.2 ($64.8 million1): Asset held f
Slide 6: Cash Flows
CASH FLOWS A$m H1 FY23 H1 FY22 • Robust operating cash flow of $22.4 million (+53% vs. pcp), benefiting CASH FLOWS FROM OPERATING ACTIVITIES from H1 earnings growth Receipts from customers 215.9 118.7 Payments to suppliers and employees (185.9) (102.1) • $13.4 million of cash inflows relating to sal
Slide 7: Strategy Update
Strategy Update 2022 AGM PRESENTATION | [X] NOVEMBER 2022
Slide 8: Clear Growth Strategy
CLEAR GROWTH STRATEGY DGL CONTINUES TO EXECUTE ON ITS UNDERLYING GROWTH STRATEGY SALES REVENUE ($m) UNDERLYING EBITDA ($m) 42.6 +107% 226.7 217.2 +77% CAGR CAGR 29.7 145.9 143.0 22.9 14.7 50.6 9.5 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 • DGL's growth strategy
Slide 9: Diversification a Key Feature
DIVERSIFICATION A KEY FEATURE DGL HAS MATERIALLY DE-RISKED ITS OPERATIONS VIA ENHANCED DIVERSIFICATION OF REVENUE STREAMS • Since IPO, DGL has executed its Customer revenue by segment1 Customer concentration underlying strategy to materially AT IPO transform the business Water Treatment Manufacturin
Slide 10: Divisional Strategy
DIVISIONAL STRATEGY TARGETED STRATEGY ACROSS DIVISIONS TO CONTINUE GROWTH, ACHIEVING FURTHER ECONOMIES OF SCALE CHEMICAL MANUFACTURING WAREHOUSING & DISTRIBUTION ENVIRONMENTAL SOLUTIONS • Identify and assess acquisition prospects • Increased storage capacities through • Continued focus on liquid wa
Slide 11: Organic Growth Drivers
ORGANIC GROWTH DRIVERS ORGANIC GROWTH ACCOUNTED FOR 69% OF EARNINGS GROWTH IN H1 FY23 • Increasing scale, product range, and geographic coverage makes DGL the preferred supplier in its chosen sectors, leading to gains in ACTIVE CUSTOMERS¹ market share 3,807 • Vertically integrated services from prod
Slide 12: Acquisition Strategy
ACQUISITION STRATEGY ATTRACTIVE AND LONG RUNWAY OF OPPORTUNITY WITHIN A HIGHLY-FRAGMENTED INDUSTRY • Highly fragmented industry with numerous small-scale operators • DGL’s acquisition strategy delivers: • Attractive and long runway of potential strategic acquisitions, in many cases o rapid expansion
Slide 13: Internally Funded Growth Strategy
INTERNALLY FUNDED GROWTH STRATEGY DGL HAS THE ABILITY TO INTERNALLY FUND ITS ONGOING GROWTH STRATEGY • DGL’s history of generating strong free cash flows has supported CASH FLOW CONVERSION1 its recent growth strategy • Since IPO, underlying operating cash flow conversion has typically exceeded 85%,
Slide 14: Track Record of Success
TRACK RECORD OF SUCCESS PROVEN TRACK RECORD WITH INVESTMENT AND SUCCESSFUL INTEGRATION OF ACQUISITIONS DURING FY231 Acquired entity Geographic reach Strategic sites Products & solutions Unique IP Vertical expansion Logistics strength
Slide 15: Track Record of Success
TRACK RECORD OF SUCCESS Strategic significance Strategic significance • Toll manufacturing in both reaction chemistry and blending (South • Adds manufacturing presence in coolant industry, expanding solutions to Australia) West Coast (Western Australia) • Significantly increases chemical R&D capabil
Slide 16: Property and Projects Capacity
PROPERTY AND PROJECTS CAPACITY DISCIPLINED INVESTMENT IN PROPERTY PROVIDES STRATEGIC FLEXIBILITY & SECURITY, ANOTHER COMPETITIVE ADVANTAGE H1 FY23 PROJECT HIGHLIGHTS & FY23 OUTLOOK FY23 expansion of Continued assessment Ongoing investment in Redevelopment and DGL constantly Assessing further Establi
Slide 17: Health, Safety & Environment
HEALTH, SAFETY & ENVIRONMENT HEALTH, SAFETY & ENIVRONMENTAL REMAINS DGL’S NUMBER ONE PRIORITY Health and Environmental 'Safety Champion’ software tool being Safety Plan Management Plan rolled out across the Group Licence and Accreditation Portfolio Health and Safety Environmental Management Manageme
Slide 18: Environmental, Social, Governance
ENVIRONMENTAL, SOCIAL, GOVERNANCE OUR ESG FRAMEWORK REFLECTS AN EVOLUTION AND ENHANCED MATURATION OF DGL GROUP KEY INITIATIVES Environmental Our Environmental Social and Government approach centres on the following United Nations Sustainability Development Goals: CLEAN WATER CARBON FOOTPRINT • Volum
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK DGL UPDATES ITS FULL-YEAR FY23 EBITDA GUIDANCE STRONG CORE ORGANIC GROWTH 69% per annum organic EBITDA growth from FY19 to FY22 UPDATED FY23 GUIDANCE* Capitalising on capabilities, resources and facilities not Original AGM EBITDA guidance available to competitors $70.0 - $72.0 mi
Slide 20: Appendix
Appendix
Slide 21: Appendix
APPENDIX Summary Underlying Statutory H1 Underlying H1 Adj Income Statement (A$m) FY23 FY23 Sales revenue 217.2 217.2 Cost of sales (138.0) (138.0) Gross profit 79.2 79.2 Other income 1.4 1.4 Overhead Expenses (50.9) (50.9) Acquisition Costs (2.0) 2.0 - EBITDA 27.7 2.0 29.7 Depreciation and amortisa
Slide 22: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER NO RELIANCE FORWARD LOOKING STATEMENTS This document contains certain forward-looking statements and comments about future The information contained in this document is not investment or financial product advice and is events. Forward-looking statements involve known
Slide 23: Thank you
Thank you CONTACTS: Company Barbara Furci (DGL Group Limited) info@dglgroup.com +64 9 309 9254