Big River Industries Ltd. · ASX:BRI
Big River Industries — Investor Presentation (August 2019)
14 slides from Big River Industries's investor presentation, Aug 27, 2019
Slide 1: Big River Industries Limited FY2019 Results Presentation
Big River Industries Limited (ASX:BRI) FY2019 Results Presentation – 27 August 2019
Slide 2: Contents
Contents Page 3. Big River Today Page 4. Performance Headlines Page 5. Operational Summary Page 7. Group Strategy Page 8. New Zealand Acquisition Page 9. Earnings Summary Page 10. Balance Sheet Page 11. Cash Flow Page 12. FY2020 Outlook Page 13. Appendix Page 14. Disclaimer
Slide 3: Big River Today
Big River Today Diversified by geography, industry segment, construction type and customer (1) ‒ Formwork Supplies – 30% Target segments ‒ Building Products – 45% ‒ Plywood & Specialty – 25% Detached Housing 6% 0% 6% 0% Commercial 26% High Density Residential 10% Revenue by Medium Density Residentia
Slide 4: Performance Headlines
Performance Headlines ❑ FY19 Revenue of $218m, up 3.3% on FY18 ❑ Like-for-like revenue declined 3.7%, but only 2.5% from distribution activities in a softening market ❑ EBITDA of $9.8m (before acquisition costs) - including one month from the New Zealand businesses ▪ This is at the midpoint of guida
Slide 5: Operational Summary
Operational Summary ❑ FY19 Revenue of $218m, up 3.3% on FY18 ▪ Like-for-like revenue declined 3.7%, but only 2.5% from distribution activities ❑ Formwork Segment sales grew strongly in 2H19, offsetting the 3% decline at 1H19 ▪ Solid revenue growth achieved in steel decking, imported formply and LVL
Slide 6: Operational Summary - continued
Operational Summary - continued Consistent with strategy, business acquisitions increase the weighting of Big River’s earnings towards distribution (1) Manufacturing vs Distribution EBITDA ($m's) 12.0 10.0 8.0 6.0 4.0 2.0 0.0 FY2015 FY2016 FY2017 FY2018 FY2019 Manufacturing Distribution Linear (Manu
Slide 7: Group Strategy
Group Strategy ❑ Implement revised structure of four key regions, and three key market segments ❑ Ensure all sites have exposure to Big River’s core three market segments Three in one ❑ Cost leadership position maintained through market diversity and large project exposure business model ❑ Maintain
Slide 8: New Zealand Acquisition
New Zealand Acquisition ❑ Total upfront consideration of AUD$16.6 million ❑ Potential earn-out for vendors of up to Acquisition AUD$3.3 million over 2 years consideration ❑ Annual revenues exceeding AUD$24m ❑ Annual EBITDA contribution expected to exceed AUD$3m ❑ Specialty plywood for architectural,
Slide 9: Earnings Summary
Earnings Summary FY2019 FY2018 Key Financial Measures REVENUE Change Revenue $217.8m 3.3% ($m's) ($m's) Total Revenue 217.8 210.9 3.3% EBITDA 1 $9.8m -10.6% NPAT $3.9m -25.5% FY2019 FY2018 EBITDA & Profit Change NPATA $4.2m -23.8% ($m's) ($m's) EPS 7.2 cents -26.0% Distribution activities
Slide 10: Balance Sheet
Balance Sheet 2019 2018 Balance Sheet ❑ Trade working capital (TWC) as a percentage of revenue was ($m's) ($m's) 17.8% on a rolling 12 month basis (including pro forma revenue Cash 1.2 2.0 from acquisitions) Receivables 43.1 39.1 ❑ No increase in TWC on a like-for-like basis. The increase in Invento
Slide 11: Cash Flow
Cash Flow FY2019 FY2018 ❑ Excluding the initial working capital for the Cash Flow ($m's) ($m's) acquisition of the New Zealand businesses, 235.2 229.6 operating cash flow before interest and tax Receipts from customers (OCFBIT) as a percentage of revenue was very Payments to suppliers/employees (228
Slide 12: FY2020 Outlook
FY2020 Outlook ❑ The broader construction market remains in a period of some uncertainty ❑ FY20 forecast for housing construction expected to be negative by circa 15% Market conditions ❑ Notwithstanding the positive metrics for a residential construction recovery, the lag time suggests minimal benef
Slide 13: Appendix
Appendix PROFIT & LOSS ($m's) FY2017 FY2018 FY2019 Key Financial Measures ($m's) FY2017 FY2018 FY2019 Revenue 177.1 210.9 217.8 Profitability Revenue 177.1 210.9 217.8 EBITDA from Operations: EBITDA (before acquisition costs) 10.2 11.0 9.8 - Distribution activities 9.7 12.0 11.3 Statutory EBITDA 8.1
Slide 14: Important Notice and Disclaimer
Important Notice and Disclaimer ▪ This presentation is dated 27 August 2019. ▪ Big River Industries Limited (the "Company") advises that the information contained in this presentation is intended to be general background information about the Company's activities as at the date of this presentation.
Big River Industries — Investor Presentation (August 2019) on 6ix