Waterco Limited · ASX:WAT
Waterco — HY2025 Earnings Presentation
32 slides from Waterco's earnings presentation, Feb 24, 2025
Slide 1: HY25 Results Presentation
HY25 Results Presentation ASX:WAT www.waterco.com.au 24 February 2025
Slide 2: Disclaimer
Disclaimer The material in this presentation is general background information about Waterco Limited (ABN 62 002 070 733) (Waterco or the Company) and its activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It should be
Slide 3: Contents
Contents 01 HY25 Results Highlights 05 Growth Strategy HY25 Operational Outlook 02 Highlights 06 03 HY25 Financial Summary 07 Appendix Company 04 Overview 3
Slide 4: HY25 Results Highlights
HY25 Results Highlights 01 4
Slide 5: Financial Highlights
Financial Highlights $132.4m $16.6m $10.7m Sales Revenue Underlying¹ EBITDA Underlying¹ EBIT $6.6m 7cps $102.1m Underlying¹ NPAT Interim Dividend Inventory 1. Refer to the Appendix for further information on Non-IFRS financial measures. 5
Slide 6: Half Year Results ending December 2024 (HY25)
Half Year Results ending 31 December 2024 (HY25) Results Summary¹ Key Highlights Financial Period Ended ($ million) HY25 HY24 % Change HY23 • Sales revenue grew 14% to $132.4 million. Operating revenue 134.7 118.8 13% 70.4 Sales revenue 132.4 116.6 14% 68.5 • Sales increased across all regional segm
Slide 7: Group Sales Growth
Group Sales Growth Solid growth in Group sales in each Region Sales Growth by Segment (Region) • Strong Regional Sales Performance – Sales increased across all key regions from the prior period. 100.0 • Revenue Growth – Sales revenue rose 14% to $132.4 million, driven by both organic expansion and D
Slide 8: HY25 Operational Highlights
HY25 Operational Highlights 02 8
Slide 9: Operational Highlights
Operational Highlights Investing in Future Growth Levering Synergies Strengthening internal capabilities Expanding market reach, diversifying through structural and system product offerings, and maximising upgrades, process enhancements, operational efficiencies following the and workforce investmen
Slide 10: Investing in the Future – Consolidation of Manufacturing Facilities
Investing in the Future – Consolidation of Manufacturing Facilities Waterco continues to invest for growth with plans to consolidate manufacturing facilities in Malaysia. Benefits include: • Strategic Location – Malaysia’s position in Asia-Pacific makes it an ideal manufacturing and distribution hub
Slide 11: Global Presence
1. CANADA Longueuil, Sales and Distribution. Global Presence 2. USA Augusta, Warehousing, Sales and Distribution. 3. UK Kent, Warehousing, Sales and Distribution. 4. MALAYSIA Kuala Lumpur Research and Development, 3 Manufacturing, Warehousing, Sales and Distribution. 1 10 5. SINGAPORE 2 Sales and Di
Slide 12: HY25 Financial Summary
WAIERULU water, the liquid of life
Slide 13: Statement of Profit or Loss
Statement of Profit or Loss Profit or Loss HY25 HY24 $000 $000 Highlights Sales revenue 132,391 116,613 Other revenue 2,354 2,195 Changes in inventories (6,932) (24,570) • Total Revenue increased 13% to $134.7m, with Sales Raw materials and consumables used (62,217) (35,577) Revenue up 14% on pcp to
Slide 14: Statement of Financial Position
Statement of Financial Position Balance Sheet HY25 FY24 $000 $000 Highlights Cash and cash equivalents 16,052 16,802 Trade and other receivables 45,133 37,584 Inventories 102,161 94,797 • Cash position of $16.1m. Other current assets 3,375 3,134 Total Current Assets 166,721 152,317 • Net working cap
Slide 15: Statement of Cash Flows
Statement of Cash Flows Cash Flows HY25 HY24 $000 $000 Highlights Cash Flows from Operating Activities Receipts from customers 135,755 119,695 Payments to suppliers and employees Interest received (131,838) 39 (100,825) 69 • Operating Cash Flow of $1.4m ($15.5m in HY24), Other Income 390 396 down on
Slide 16: Company overview
Company overview 04 16
Slide 17: Waterco At A Glance
Waterco At A Glance Revenue Growth Sales by Region (Segment) Sales by Product Category • Currently, the majority of revenue is generated in the Australian and New Zealand (ANZ) market supported by a diverse product mix. 6% 8% • The Groups ANZ segment is focused on becoming the leading vertically 12%
Slide 18: Our Business
Our Business Waterco designs and manufactures innovative filtration and sanitisation solutions for swimming pools, spas, aquaculture, and water treatment and transfer markets. POOL & SPA TRANSFER (PUMPS) TREATMENT (FILTRATION) • Wide range of products, including chemicals for • Pumping solutions to
Slide 19: Our Brand Strength
Our Brand Strength Waterco Davey Swimart • Waterco's innovative filtration and • Davey is the leading manufacturer of • Established in 1983, Swimart is focused on sanitisation solutions, driven by engineering residential and commercial pumps in making pool care easy, with 66 retail stores strength a
Slide 20: Our Competitive Advantages
Our Competitive Advantages Largest Australian-owned manufacturer of water transfer and water treatment products – combination of the best filters and the best pumps, with the best technology. Manufacturing Expertise Market Leadership Product Mix Vertical Integration Proprietary Technology • Leading
Slide 21: Growth Strategy
Growth Strategy 05 21
Slide 22: Growth Strategy – by Vertical and Region
Growth Strategy – by Vertical and Region POOL & SPA TRANSFER (PUMPS) TREATMENT (FILTRATION) • Swimart to increase franchise footprint • Leverage trusted brands and innovate • Differentiate Waterco's superior with further independent conversions next generation energy efficient products. commercial f
Slide 23: Key trends shaping the industry present exciting opportunities
Key trends shaping the industry present exciting opportunities Water scarcity Energy efficiency Smaller, better quality Connected products Home & health • Demand for fresh water • Increased energy efficiency • Smaller pools in smaller • Demand for smart, • Increased health increasing, supply at risk
Slide 24: Pool Vertical – ANZ Growth Strategy
Pool Vertical – ANZ Growth Strategy Swimart Store Conversions and Acquisitions Expanding Davey’s Role Growth Opportunity within a Fragmented Market: The pool industry in ANZ is highly fragmented, Addressing Market Gaps: Davey’s product offering significant growth potential through consolidation. ran
Slide 25: Long-Term Growth
Long-Term Growth Waterco is strategically positioned to generate significant and sustained long-term growth. Tailwinds and Trends Industry Drivers • Energy efficiency regulations • Connected products, product monitoring and maintenance / predictive capabilities • Health and wellness awareness • Recy
Slide 26: Outlook
Outlook 06 26
Slide 27: H2 Outlook and beyond
H2 Outlook and beyond • Stronger second-half performance expected, with improved margins and profitability. • Plans for expanded manufacturing capacity to support growth in the U.S. and Europe. • Additional synergies anticipated from manufacturing facility consolidation. • Further integration benefi
Slide 28: Appendix
Appendix 07 28
Slide 29: Key Metrics and Definitions
Key Metrics and Definitions Reconciliation to HY25 reported earnings Group definitions Metric ($ million) HY25 HY24 % Change Acquisition costs Business acquisition costs expensed of Davey EBIT 9.8 11.7 -17% Water Products in September 2023. NPBT 7.7 10.1 -23% Reported NPAT 5.9 7.0 -15% EBITDA Report
Slide 30: Sustainability and ESG
Sustainability and ESG Sustainability and ESG Climate Care Certified Opportunity Waterco continues to grow its Sustainability efforts and commitment to ESG. The Climate Care Certification Program is an initiative of the Swimming Pool & Spa Association of Australia Ltd (SPASA Australia). In its manuf
Slide 31: Summary
Summary Leading Company Competitive Advantages Largest Australian-owned (ASX listed) Manufacturing powerhouse with strong manufacturer of water transfer and water brands, product diversification, vertically treatment products with an extensive ANZ integrated operations and a focus on network and a g
Slide 32: Head Office Investor Enquiries
Head Office 36 South Street, Rydalmere, NSW 2116 Australia +61 2 9898 8600 Investor Enquiries: Waterco companysecretary@waterco.com Innovera Partners info@innoverapartners.com