Slide 1: FY2024 Results Presentation
FY2024 Results Presentation ASX:WAT www.waterco.com.au 28 August 2024
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 FY24 Results Highlights 05 Davey Acquisition FY24 Results Growth Strategy and 02 Overview 06 Outlook 03 FY24 Financial Summary 07 Appendix Company 04 Overview 3
Slide 4: FY24 Results Highlights
FY24 Results Highlights 01 4
Slide 5: Financial Highlights
Financial Highlights Transformational year following material acquisition. Sales Underlying¹ Underlying Underlying Revenue EBITDA EBIT NPAT Up 85% Up 59% Up 60% Up 35% to $239.1m to $34.5m to $23.2m to $14.6m Underlying Share Final Total EPS Price Dividend Dividend Up 35% 27% CAGR over Up 60% Up 50%
Slide 6: Full Year Results ending 30 June 2024
Full Year Results ending 30 June 2024 Results Summary¹ Key Highlights Financial Period Ended ($ million) FY24 FY23 % Change • Strategic acquisition of Davey Water Products with successful Operating revenue 244.8 134.0 83% integration post acquisition. Sales revenue 239.1 129.1 85% Underlying EBITDA
Slide 7: Operational Highlights
Operational Highlights Accretive Davey Acquisition Combined Group Synergies Compelling purchase price accretive Improved market reach, product to earnings with improved revenue diversification and shared expertise profile and further margin post Davey acquisition. improvements expected. Sustained gr
Slide 8: FY24 Results Overview
wy. ERUU water, the liquid of life
Slide 9: FY24 Results Overview
FY24 Results Overview Sales Revenue ($m) Underlying¹ EBITDA ($m) Underlying EBIT ($m) +59% +60% +85% 34.5 23.2 239.1 21.6 14.5 129.1 2023 2024 2023 2024 2023 2024 Underlying NPAT ($m) Underlying EPS (cents) Dividend declared (cps) 15 +35% +35% 10 8 14.6 Final 41.5 5 10.8 30.7 Interim 7 5 2023 2024 2
Slide 10: Group Performance
Group Performance Solid growth in Group sales, EBIT and ROCE¹ Underlying EBIT and Sales Group ROCE 30.0 250.0 200.0 16.0% 180.0 Equity plus net debt / (cash) ($m) 14.0% 25.0 200.0 160.0 12.0% Underlying EBIT ($m) Sales revenue ($m) 140.0 20.0 150.0 120.0 10.0% 15.0 100.0 8.0% 100.0 80.0 6.0% 10.0 60
Slide 11: Capital Management
Capital Management Dividend declared (cps) Highlights 15.0 • Total declared dividend up 50% on pcp to 15 cents per 10.0 8.0 share fully franked, supported by a positive outlook Final and successful Davey integration. 5.0 Interim • Increase in working capital driven by the Davey 7.0 5.0 acquisition.
Slide 12: FY24 Financial Summary
WAIERULU water, the liquid of life
Slide 13: Statement of Profit or Loss
Statement of Profit or Loss Profit or Loss FY24 FY23 $000 $000 Highlights Revenues 244,845 133,999 Changes in inventories (17,955) 1,244 Raw materials and consumables used (106,577) (65,761) • Total Revenue increased 83% to $244.8m, with Sales Employee benefits expense (49,815) (26,438) Revenue up 8
Slide 14: Statement of Financial Position
Statement of Financial Position Balance Sheet FY24 FY23 $000 $000 Highlights Cash and cash equivalents 16,802 12,337 Trade and other receivables 37,584 17,106 Inventories 94,797 50,145 • Cash position of $16.8m. Other current assets 3,134 2,643 Total Current Assets 152,317 82,231 Property, plant & e
Slide 15: Statement of Cash Flows
Statement of Cash Flows Cash Flows FY24 FY23 $000 $000 Highlights Cash Flows from Operating Activities Receipts from customers 253,363 140,445 Payments to suppliers and employees Interest received (222,558) 135 (124,712) 60 • Operating Cash Flow increased 119% on FY23 to Other Income 1,268 924 $24.5
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 11%
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: Davey Acquisition
Davey Acquisition 05 20
Slide 21: Davey Acquisition – Strategic Rationale
Davey Acquisition – Strategic Rationale In September 2023, Waterco completed the purchase of Davey from GUD Holdings Ltd for $60.3 million which represented an EV/EBITDA of 5.9. The combination of Davey and Waterco builds a diversified group with a focus on complimentary product strengths – Waterco
Slide 22: Davey Acquisition - Business Integration Success
Davey Acquisition - Business Integration Success Scale Advantage Synergistic Strength Financial Gains Combining Waterco and Davey creates an entity While some market overlap exists, Waterco and Integration (10 months Davey contribution) is with significantly larger revenues and sales Davey offer dis
Slide 23: Davey – Future Synergies
Davey – Future Synergies Significant Cost Synergies Market Expansion and Reach • Shared Warehousing: Consolidating storage facilities will free up resources and • Complementary Geographic Footprint: The merger creates a broader global reduce overall warehousing costs. footprint and access to new mar
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook 06 24
Slide 25: 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 26: 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 27: Outlook For Next 12 Months
Outlook For Next 12 Months Growth Pillars Outlook Increasing market share in Pool & Spa sector Further synergies from Davey acquisition Geographic expansion Improving margins and financial metrics Enhance customer connection services Continued investment in products and technology Optimise combined
Slide 28: Appendix
Appendix 08 28
Slide 29: Key Metrics and Definitions
Key Metrics and Definitions Reconciliation to FY24 reported earnings Group definitions Metric ($ million) FY24 FY23 % Change Acquisition costs Business acquisition costs expensed of Davey EBIT 22.1 14.5 52% Water Products in September 2023. NPBT 18.3 13.9 32% Reported EBITDA Reported EBIT adding bac
Slide 30: Our Products
Our Products Waterco is an R&D lead manufacturer and distributor of water transfer and treatment products. We develop innovative solutions by listening to our customers. Our range provides a comprehensive solution to water management with leading sanitisation innovations for the swimming pool, spa,
Slide 31: 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, Manufacturing, Warehousing, Sales and Distribution. 3 1 5. SINGAPORE Sales and Distribut
Slide 32: Our Objectives
Our Objectives Products Markets Partnerships Safety Sustainability Technology Continue to invest in Identify and enter Form strategic Pioneer innovative Become a leader in Develop a connected the development of new markets in the partnerships with water sanitisation the sustainability product ecosys
Slide 33: 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 34: 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 35: 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 36: Head Office
Head Office 36 South Street, Rydalmere, NSW 2116 Australia +61 2 9898 8600 Investor Enquiries: Waterco administration@waterco.com Innovera Partners info@innoverapartners.com