Shape Australia Corporation Limited · ASX:SHA
Shape Australia — Non-Deal Roadshow (April 2022)
25 slides from Shape Australia's roadshow presentation, Apr 26, 2022
Slide 1: Management Presentation April 2022
Management For personal use only Presentation SHAPE AUSTRALIA CORPORATION LIMITED ABN: 14 654 729 352 APRIL 2022 1
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only Information, including forecast Forecasts, by their very nature, financial information, in this are subject to uncertainty and presentation, should not be contingencies may occur which considered as a recommendation are outside the control of SHAPE
Slide 3: Senior Management
Senior Management For personal use only FITOUTS | REFURBISHMENTS | FAÇADE UPGRADES | CONSTRUCTION • Peter was appointed as Chief Executive Officer in December 2017 • After joining SHAPE in 2011 as the Group Executive and General Manager of NSW, he became Chief Operating Officer in August 2016 • Pete
Slide 4: Key Highlights
Key Highlights For personal use only 1 Dedicated national service coverage with seven offices and a physical presence in all mainland states and territories 2 Long-standing relationships with blue-chip customers driving repeat revenue 3 Diversified end market and geographic exposure 4 Reputation for
Slide 5: Corporate Snapshot
Corporate Snapshot For personal use only FITOUTS | REFURBISHMENTS | FAÇADE UPGRADES | CONSTRUCTION CAPITAL STRUCTURE ASX Code SHA Shares on issue 83,241,085 Share price as at 22 April 2022 $2.16 Market capitalisation as at 22 April 2022 $179.8m Net cash as at 31 December 2021 $94.7 Enterprise value
Slide 6: H1FY22 Financial Highlights
H1FY22 Financial Highlights For personal use only REVENUE EBITDA EBITDA (UNDERLYING) $329.3m $10.5m $4.5m 10.7% on H1FY21 On par with H1FY21 11.4% on H1FY21 NET PROFIT GROSS MARGIN EARNINGS PER SHARE $8.3m 8.6% 7.1c 5.3% on H1FY21 1.2% on H1FY21 4.1% on H1FY21 CASH BACKLOG ORDERS PROJECT WINS $94.7m
Slide 7: Key Sector & Project Overview
Key Sector & Project Overview NO. OF PROJECTS UNDERTAKEN 530 555 558 For personal use only FIGURES AS AT 31 DEC 2021 244 REVENUE BY REGION REVENUE BY END MARKET 800 800 FY19 (Full Year) FY20 (Full Year) FY21 (Full Year) FY22 H1 (Half Year) 600 600 MAINTAINED A STRONG TENDER CONVERSION 400 400 RATE 5
Slide 8: Key Sector & Project Overview
Key Sector & Project Overview For personal use only Commercial-In-Confidence / Copyright SHAPE Australia Pty Limited Experience Better / shape.com.au MANAGEMENT PRESENTATION APRIL 2022 8
Slide 9: People and Culture
People and Culture For personal use only • SHAPE employs approximately 455 people1 including professional, Employee numbers by State technical, corporate and support personnel nationwide. SHAPE’s primary workforce comprises project managers, construction 15 51 managers, project engineers and site ma
Slide 10: Industry Overview
Industry Overview For personal use only Non-residential building construction (2021) Office - value of construction work ($bn) • Drivers include the flight to quality thematic - reduction in workplace density, increase in open plan offices and collaboration spaces and a focus on health and sustainab
Slide 11: Multiple Levers for Growth
Multiple Levers for Growth For personal use only Expansion into Target Growth Sectors Geographical Expansion Replacement of combustible cladding Service Offering Resourcing to establish façades on commercial Expansion capabilities in target areas and residential buildings over the next six - 18 Acqu
Slide 12: Pipeline & Order Book
Pipeline & Order Book For personal use only FIGURES AS AT 31 DEC 2021 BACKLOG ORDERBOOK BY MARKET 140 BACKLOG ORDERS IDENTIFIED PIPELINE 120 $405m $2.3B $2.0B 100 TENDERING 80 $102M $102.0m 60 DECISION PENDING $193M $193.1m 40 20 PROJECTS WON $475.5m $475M Government Real Estate & Property Professio
Slide 13: Project Conversion and Win Rate Ratio
MAINTAINED A STRONG CONVERSION RATE Project Conversion and Win Rate Ratio 49% (by number) For personal use only • SHAPE adopts a disciplined and strategic approach to 12 month trailing win rate (by number of tenders) tendering, focusing resources on projects identified as 12 Month Average Conversion
Slide 14: Acquisition of KLMSA
Acquisition of For personal use only • Recent acquisition of KLMSA, a modular construction business based in VIC with a focus on the education and community infrastructure sectors • Total consideration is ~$10.7m, funded through a 3-year amortising term loan facility • The acquisition is expected to
Slide 15: DLG SHAPE
DLG SHAPE For personal use only • Continued strong performance for DLG SHAPE. Management fees generated to SHAPE • SHAPE maintained 49% ownership, with 51% increased by 59.4% from $431k to David Liddiard Group (DLG). $681k during the reporting period. • Continued commitment to increasing aboriginal
Slide 16: H1FY22 Operational Highlights
H1FY22 Operational Highlights For personal use only Our safety commitment and culture is spearheaded by our “Path to Perfect Safety” programme: ^ 6% improvment to TRIFR result (6.2) SAFETY ^ 12% Number of proactive safety observations logged (21,676) ✓ Campaign releasing our internally developed SHA
Slide 17: Financial Commentary
Financial Commentary For personal use only • Solid business performance in H1FY22 • Lower net profit result due to ongoing pressures from COVID. Construction activity was constrained by delays in the commencement of new projects, site shutdowns and lower productivity due to social distancing protoco
Slide 18: Impacts & Response to Pandemic
Impacts & Response to Pandemic For personal use only • Demonstrated resilience in challenging and enduring market conditions • Construction activity was constrained by delays in the commencement of new projects, site shutdowns and lower productivity due to distancing protocols • SHAPE did not obtain
Slide 19: Summary
Summary For personal use only FINANCIAL • SHAPE was very well positioned at the start of the pandemic and is poised to maximise upside on the recovery • Record project wins, combined with a strong pipeline have SHAPE positioned for a successful FY23 OPERATIONS • Highly engaged workforce and strong m
Slide 20: Appendix – Additional Information
Appendix – For personal use only Additional Information
Slide 21: H1FY22 Financials
H1FY22 Financials For personal use only Income Statement EBITDA reconciliation $'000 H1FY21 H1FY22 $'000 H1FY21 H1FY22 Revenue 297,125 329,137 Reported EBITDA 10,462 10,504 Construction costs (267,510) (300,061) IPO Costs - 2,794 Employee benefits (13,614) (13,810) Customer legal dispute 1,092 (3,40
Slide 22: H1FY22 Balance Sheet
H1FY22 Balance Sheet $'000 H1FY21 H1YFY22 For personal use only Assets Cash and cash equivalent 115,147 94,728 Trade and other receivables 53,968 54,663 Other assets 3,253 5,017 Finance lease receivable 497 438 Total current assets 172,865 154,846 Plant and equipment, intangible assets 6,367 21,814
Slide 23: Pro forma Historical Income Statement
Pro forma Historical Income Statement For personal use only Commentary $'000 FY19 FY20 FY21 • Revenue is primarily generated by SHAPE in their role as head contractor and construction manager on Revenue 661,717 748,208 557,212 construction, fit-out and refurbishment projects Construction costs (594,
Slide 24: Corporate Snapshot – Board Members
Corporate Snapshot For personal use only FITOUTS | REFURBISHMENTS | FAÇADE UPGRADES | CONSTRUCTION BOARD MEMBERS Phillip Arnall Michael Barnes Rhonda Jane Lloyd Peter Marix-Evans (Phil Arnall) NON-EXECUTIVE (Jane Lloyd) CHIEF EXECUTIVE DIRECTOR NON-EXECUTIVE OFFICER & MANAGING NON-EXECUTIVE CHAIR DI
Slide 25: Corporate Snapshot – Share Register at IPO
Corporate Snapshot For personal use only FITOUTS | REFURBISHMENTS | FAÇADE UPGRADES | CONSTRUCTION SHARE REGISTER AT IPO SHAREHOLDERS SHARES HELD AT COMPLETION OF THE OFFERS O N AN UNDILUTED BASIS % Number of Shares Biramont Pty Ltd 17.8% 14,782,938 Drayton Holding Company Pty Ltd, Drayton No.1 Pty