Lindsay Australia Limited · ASX:LAU
Lindsay Australia — HY2024 Earnings Presentation
25 slides from Lindsay Australia's earnings presentation, Feb 26, 2024
Slide 1: HY24 Result Presentation - Lindsay Australia Limited
152 Postle Street Acacia Ridge QLD 4110 Locked Bag 2004 Archerfield Qld 4108 ABN 81 061 642 733 P: 07 3240 4900 F: 07 3054 0240 www.lindsayaustralia.com.au ASX:LAU 25 February 2024 ASX Announcement HY24 Result Presentation - Lindsay Australia Limited Attached is Lindsay Australia Limited’s Results P
Slide 2: Lindsay Australia Results Presentation HY2024
Clay McDonald (CEO) & Justin Green (CFO) LINDSAY AUSTRALIA RESULTS PRESENTATION HY2024 (ASX:LAU)
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Lindsay Australia Limited (“LAU”). The In particular, no representation or warranty, express or implied, is given as to the information contained in this presentation is for information purposes only. The accuracy, completeness or correctness, likeli
Slide 4: Overview
oe OVERVIEW
Slide 5: Market Overview
MARKET OVERVIEW • Large fragmented markets (+$5bn1) • Positive market trends underpinning refrigerated freight demand • Opportunities to capture market share driven by industry Market consolidation and changing operating conditions Overview • Long term market conditions positive for scale players wi
Slide 6: Key Highlights
KEY HIGHLIGHTS Road and rail underpin Lindsay’s positive first half results. OPERATING REVENUE UNDERLYING EBITDA1 UNDERLYING NPAT1 NET DEBT2 LTIFR3 $417.9m $52.1m $19.6m $120.6m 17.3 up 23.9% up 21.7% up 13.9% up 12.5% up 2.3% NET LEVERAGE RATIO4 ROIC5 UNDERLYING EPS1 HALF YEAR DIVIDEND FTEs6 1.21x
Slide 7: Safety & Sustainability
SAFETY & SUSTAINABILITY ▪ Investment in safety leadership and capability - new Head of Safety, Risk and Compliance ▪ Continuing to build out Lindsay’s safety and compliance team to better support operations ▪ Investing in technology and tools to improve safety outcomes Safety & Compliance ▪ Developi
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 9: HY24 Key Highlights
HY24 KEY HIGHLIGHTS Road and rail underpin Lindsay’s positive first half results. 418 6.3 Group Revenues Underlying EPS1 5.7 ($’M) 337 4.1 274 216 219 2.2 1.9 HY20 HY21 HY22 HY23 HY24 HY20 HY21 HY22 HY23 HY24 Group underlying EBITDA1 52.1 ROIC 2 23.5% ($’M) 20.5% 42.8 11.3% 31.4 9.2% 9.0% 26.2 23.3
Slide 10: Group Performance
GROUP PERFORMANCE HY24 underlying EBITDA1 Bridge ($’M) ▪ Transport EBITDA1 of $58.9m up 21.8% on the prior corresponding period (pcp) driven by increased volumes in both road and rail segments, retaining elevated 2H23 volumes and continuing to capture market share. ▪ Rural EBITDA1 was down $0.9m or
Slide 11: Capital Expenditure
CAPITAL EXPENDITURE KEY CAPITAL FY20231 FY2024F Items Actual Planned ▪ 1H24 Capital plan included $25.6m in investments across property, plant and equipment. ▪ FY24 Capital plan rebalanced down to $49m, from the planned $59m following efficiency $27.5m $15.4m gains, extended life across Transport’s
Slide 12: Cash Flow & Borrowings
CASH FLOW & BORROWINGS Group Borrowings1 Operating Cash Flow ($’M) 160 25.0% ($’M) Millions 52 c 150 15 20.0% 43 140 13 15.0% 31 130 26 26 3 120 15 10.0% 3 17 110 18 126 15 5.0% 100 113 103 104 97 18 20 11 37 42 90 0.0% HY20 HY21 HY22 HY23 HY24 HY20 HY21 HY22 HY23 HY24 Equipment Loans Bank loans - c
Slide 13: Dividends
DIVIDENDS 6.00 Dividends per Share (cents) 5.00 3.0 Unfranked 4.00 1.8 ▪ Declared interim 2.1 cps dividend (HY24 fully franked, HY23 unfranked) 3.00 up 10.5% on the prior year and a payout ratio1 of 33% (HY23 33%). 2.00 0.5 ▪ Future dividends expected to be fully franked. 0.5 Dividends 1.00 1.9 2.1
Slide 14: Outlook
OUTLOOK ▪ Expect near term market pressures, but remain confident that long term value of scale, service offering, and expertise is well positioned to succeed through the cycles. ▪ Intermodal rail capacity increasing with new entrants. Market Dynamics ▪ Anticipate further industry consolidation in b
Slide 15: Appendix
APPENDIX
Slide 16: Segment Performance
SEGMENT PERFORMANCE
Slide 17: Lindsay Transport
LINDSAY TRANSPORT Transport Revenue 298 ($’M) 250 192 149 150 ▪ Revenues grew 19.1% to $298.3m despite declining fuel prices, network disruptions and uncertain trading conditions, highlighting the resilience in Transport’s network and multi modal service offering. HY20 HY21 HY22 HY23 HY24 ▪ Growth w
Slide 18: Lindsay Transport
LINDSAY TRANSPORT 100 700 Rail Revenue1 Millions 90 85 ($’M) 600 80 70 500 ▪ Rail revenue rose 43.5% following the retention of volumes post SRL collapse, 60 56 organic growth of 10% on the pcp driven by new tender wins and conversion of 400 50 43 road to rail freight and an increase in container fl
Slide 19: Lindsay Rural & Hunters
LINDSAY RURAL & HUNTERS Rural Sales 130 ($’M) Millions 120 ▪ Sales decreased 8.1% or $6.9m impacted by prolonged wet weather in key horticultural 110 regions and lower realised prices for produce impacting demand for rural products and 100 38.2 services 90 86.2 81.7 ▪ EBITDA1 decreased 17.2% continu
Slide 20: Accelerated Depreciation
ACCELERATED DEPRECIATION DEPRECIATION1 ($’M) 2.4 3.1 1.6 18.1 16.7 15.0 15.5 1H23 2H23 1H24 2H24F LAU SRL Assets ▪ In March 2023 Lindsay acquired $22m of 2nd Hand SRL Assets ▪ A large portion of the assets are being depreciated at accelerated rates due to their age ▪ As a result, we expect additiona
Slide 21: Reconciliations
RECONCILIATIONS Key finance metrics Underlying results 1H 2024 ($'000) EBITDA EBIT PBT NPAT Net Borrowings ($'000) 1H 2024 1H 2023 Statutory Result 59,032 32,094 26,231 18,079 Reported borrowings 39,059 27,761 Depreciation right of use properties (7,107) Lease liabilities 207,597 174,031 Finance cos
Slide 22: Lindsay Australia Overview
LINDSAY AUSTRALIA OVERVIEW
Slide 23: Lindsay Network - Diversifying & Building Resilience
LINDSAY NETWORK - DIVERSIFYING & BUILDING RESILIENCE KEY HORTICULTURE REGIONS BY DENSITY GROUP LOCATIONS AVERAGE ANNUAL RAINFALL (1991 – 2020) MAJOR FREIGHT LANES PG 22
Slide 24: Feeding the Nation
FEEDING THE NATION TONNES1 OF FREIGHT BY COMMODITY LAST TWELVE MONTHS 278,953 , 11% Citrus ~100,000t 589,031 , 23% Chiller Bananas Leafy Greens ~80,000t ~60,000t Frozen 1,029,477 , 39% TOP SIX HORTICULTURE Produce CATEGORIES Confectionary 193,127 , 7% Ambient Sweet Potatoes Avocados ~60,000t Meat &
Slide 25: Corporate Snapshot
CORPORATE SNAPSHOT ASX:LAU Overview 12-month share price performance and volume Board of Directors and Key Management HY24 revenue $417.9m KMP Role Mr Ian Williams Non-Executive Director & Chair HY24 underlying1 EBITDA $52.1m Mr Clayton McDonald Chief Executive Officer Cash balance as at 31 Dec 2023