Big River Industries Ltd. · ASX:BRI
Big River Industries — Investor Presentation (February 2021)
14 slides from Big River Industries's investor presentation, Feb 23, 2021
Slide 1: Big River Industries Limited 1H21 Results Presentation
Big River Industries Limited (ASX:BRI) 1H21 Results Presentation – 23 February 2021
Slide 2: Contents
Contents • Big River Today & Post TWP Acquisition • Performance Headlines • Operational Summary • Strategy - Timberwood Acquisition • Strategy – Manufacturing Consolidation • Earnings Summary • Balance Sheet • Cash Flow • 2H21 Outlook • Appendix • Disclaimer
Slide 3: Big River Today
Big River Today Diversified by geography, industry segment, construction type and customer (1) ‒ Formwork Supplies – 24% Target segments ‒ Building Products – 56% ‒ Plywood & Specialty – 20% Detached Housing 5% 0% 9% 0% Commercial 31% High Density Residential 10% Revenue by Medium Density Residentia
Slide 4: Big River & TWP Combined
Big River & TWP Combined Diversified by geography, industry segment, construction type and customer Formwork supplies– 20% Target segments Building products – 46% Plywood & specialty – 34% 0% Detached 0%7% 7% Multi res 26% Revenue by x5 Commercial construction 12% Remanufacturing markets 28% x2 20%
Slide 5: Performance Headlines
Performance Headlines ❑ 1H21 Revenue of $133.5m, up 5.9% on 1H20 ❑ Achieved organic revenue growth again after a period of construction industry declines ▪ Like for like sales revenue increased 1%, including a 7% increase achieved in Q2 ❑ EBITDA of $10.0m (post AASB16) a 14.8% increase on 1H20 Finan
Slide 6: Operational Summary
Operational Summary ❑ 1H21 revenue of $133.5m reflected the first like for like sales growth in 2 years ▪ Strong growth was achieved in WA, QLD, SA and ACT offset by continued weaker sales results in NSW and Victoria due to Covid restrictions and the decline in multi-residential construction ❑ New Z
Slide 7: Strategy – Timberwood (TWP) Acquisition
Strategy – Timberwood (TWP) Acquisition ❑ TWP is a significant scale acquisition in Big River’s high margin and differentiated Plywood & Specialty segment ❑ Transforms the Plywood & Specialty segment to over $100m in revenue, making BRI a leading player in Australian and New Zealand markets Strategi
Slide 8: Strategy – Manufacturing Consolidation
Strategy – Manufacturing Consolidation ❑ The fires that affected the Hume (Tumut) supply region that began in early 2020 have reduced long term pine log supply from that region by 40% ❑ Excess pine resource available in northern NSW (Grafton) provides key long term resource sustainability to base a
Slide 9: Earnings Summary
Earnings Summary H1 FY21 H1 FY20 Key Financial Measures Financial Summary Change Revenue $133.5m 5.9% ($m's) ($m's) 1 Revenue 133.5 126.1 5.9% EBITDA $10.0m 14.8% 2 H1 FY21 H1 FY20 Underlying NPAT $3.1m 38.8% EBITDA & Other Change Underlying EPS 2 4.95 cents 35.7% ($m's) ($m's) Distribution
Slide 10: Balance Sheet
Balance Sheet 31 Dec 20 30 Jun 20 Balance Sheet ($m's) ($m's) ❑ Average trade working capital (TWC) as a percentage of Cash 6.5 8.7 revenue was 17.7% compared with 17.2% for FY20. Receivables 36.1 43.6 ❑ Average debtor days of 50 days, an improvement over the 56 Inventories 38.9 38.2 days for FY2020
Slide 11: Cash Flow
Cash Flow H1 FY21 H1 FY20 Cash Flow ($000's) ($000's) ❑ Headline operating cash flow before interest and tax (OCFBIT) as a percentage of revenue was strong at Receipts from customers 154.8 148.2 77%. Payments to suppliers/employees (147.2) (143.9) ❑ OCFBIT rises to 100% when allowing for $2.2m of Ot
Slide 12: 2H21 Outlook
2H21 Outlook ❑ Big River expects the addressable market to be broadly in line with 1H21, but with improved detached housing volumes ❑ Homebuilder program provides a strong pipeline for 2H21, with 1H21 housing approvals up over 25% ▪ 10 of the Group top 20 accounts are Project Home builders Market co
Slide 13: Appendix
Appendix Dec-19 Dec-19 Dec-20 1H2020 1H2020 1H2021 Key Financial Measures Dec-17 Dec-18 Pre AASB16 Statutory Statutory PROFIT & LOSS ($m's) 1H2018 1H2019 Pre AASB16 Statutory Underlying Profitability Revenue 104.6 106.0 126.1 126.1 133.5 Revenue $104.6m $106.0m $126.1m $126.1m $133.5m EBITDA (before
Slide 14: Important Notice and Disclaimer
Important Notice and Disclaimer ▪ This presentation is dated 23 February 2021. ▪ 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 presentatio
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