Adrad Holdings Limited · ASX:AHL
Adrad — H1 2023 Earnings Presentation
16 slides from Adrad's earnings presentation, Feb 27, 2023
Slide 1: Adrad achieves solid first half growth
ASX Announcement 27 February 2023 Adrad achieves solid first half growth Adrad Holdings Limited (‘ASX: AHL’, ‘Adrad’ or the ‘Company’) an Australian-based automotive aftermarket and industrial original equipment (OE) heat transfer solutions provider is pleased to announce its half year results for t
Slide 2: Outlook
Outlook FY23 represents a year of both investment and consolidation following Adrad’s ASX listing. The expectation for FY23 is for steady financial performance. Due to seasonality the Company’s trading results are historically weighted more strongly to the second half of the financial year. The Comp
Slide 3: 1H FY23 Results Presentation
(ASX: AHL) 1H FY23 RESULTS PRESENTATION Visit FEBRU A R YNow 2023 adradholdings.com.au
Slide 4: Disclaimer
Disclaimer 2 This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepa
Slide 5: Overview of Adrad
Overview of Adrad 3 Adrad is an Australian-based business specialising in the design and manufacture of innovative heat transfer solutions for industrial applications and the manufacture, importation and distribution of automotive parts for the aftermarket in Australia and New Zealand and for OE cus
Slide 6: 1H FY23 Highlights
1H FY23 Highlights 4 $68.3m $6.9m1 $1.9m $3.8m Cash flow generated Revenue EBITDA NPAT from operations ~600 1,000+ $0.04 0.7 New Aftermarket CPS Products added EPS customers added Dividend declared 1. Normalised EBITDA, refer to slide 7 for EBITDA adjustments
Slide 7: Statutory to Pro Forma Reconciliation
Statutory to Pro Forma Reconciliation 5 Adjustments to 31 December 2021 Statutory 31 Add Adcore Pro Forma 31 Statutory 31 A$m December Holdings Pty Less Harrop Less other December December • 7% revenue growth aided Group1 adjustments1 2021 Ltd1 2021 2022 by new product ranges and warehouses Revenue
Slide 8: EBITDA remains positive
EBITDA remains positive 6 ▪ Growth costs include additional lease costs, stocking, staffing and occupancy ▪ Full benefit of investment in new distribution warehouse footprint will take a further 6-12 months to reach full potential ▪ EBITDA remains positive but reflects inflationary cost pressures an
Slide 9: Positioned to perform well through CY23
Positioned to perform well through CY23 7 Aftermarket Original Equipment Australian and New Zealand Manufacture Growth of car parcs in both Australia and New Very strong order books for key OE customers; Zealand continue 60%+ of budgeted revenue for 2H already confirmed through orders Increasing ave
Slide 10: Establishment of a second facility driving market expansion
Establishment of a second facility driving market expansion 8 Providing greenfield opportunities for Powergen in Southeast Asia Key growth initiative 1. Established second factory in Thailand with coil production capabilities (and other products) for the Powergen sector in Southeast Asia First proje
Slide 11: Increasing warehouse footprint delivering additional benefit
Increasing warehouse footprint delivering additional benefit 9 Investment in warehousing is supporting customer & revenue growth Key growth initiative 2. New Natrad Trade customer accounts continues to grow above Increased footprint expectations Enabling customer service improvements and revenue gro
Slide 12: Continued Aftermarket product expansion to drive growth
Continued Aftermarket product expansion to drive growth 10 Developing the product range to support growth via the mechanical workshop channel Key growth initiative 3. Leveraging our product sourcing and distribution infrastructure to drive product growth Successful introduction in July 2022 of a ran
Slide 13: Transitioning production to drive margin improvements
Transitioning production to drive margin improvements 11 Margin improvements of ~20% being realised from transitioning manufacturing activities to Thailand Key growth initiative 4. TRANSITION TO THAILAND ▪ The bulk of OE radiator panels are now being successfully manufactured in Thailand for shipmen
Slide 14: Disciplined Approach To Growth Investments
Disciplined Approach To Growth Investments 12 ~$8.9M OF UPCOMING INVESTMENT A$m Growth Maintenance COMMENTARY THAILAND ▪ Extension of Thailand factory to Building Expansion 1.0 0 increase production capacity is underway – estimated completion Fabrication Equipment 1.1 0 in Q1 FY24 ~ $1M Other equipm
Slide 15: FY23 Outlook
FY23 Outlook 13 • The first half of FY23 has been broadly inline with management expectations • Due to seasonality factors trading results are historically weighted more strongly towards 2H • Aftermarket segment growing strongly in line with management expectations; with growth in both customer numb
Slide 16: Contact Us
CONTACT US Investor Relations Melanie Singh +61 439 748 819 melanie@nwrcommunications.com.au