Big River Industries Ltd. · ASX:BRI
Big River Industries — Investor Presentation (August 2022)
19 slides from Big River Industries's investor presentation, Aug 26, 2022
Slide 1: Big River Industries Limited (ASX:BRI) Full year results presentation FY 2022
Big River Industries Limited (ASX:BRI) Full year results presentation FY 2022 26th August 2022 Big River Industries Limited
Slide 2: Index
Index • Business overview • ESG progress • Performance headlines • Divisional update • Financial results • Outlook • Appendix 2
Slide 3: Business Overview
Business Overview ~25% of revenue - manufactured by BRI ~25% of revenue - direct imported by BRI 23 sites across the major ~50% of revenue - sourced from large local population centres supply partners of Australia and NZ ~ 570 staff Average L.O.S ~ 10 years Revenue split by construction segment 6 ma
Slide 4: Strong geographic and category diversity
Strong geographic and category diversity Construction Products – 71% of revenue Building Trade Centres – 44% of revenue Formwork & Commercial – 27% of revenue Panels – 29% of revenue Building Trade Centres x 11 Formwork & Commercial x 4 Panels x 8 4
Slide 5: Environmental
120 year sustainable history drives positive ESG initiatives Environmental Scope 1 & 2 emissions Plywood manufacturing (tonnes of CO2 equivalent) • Plywood manufacturing Consolidation Project resulted in 74% reduction in Scope 5000 1 manufacturing emissions in last 3 years 4500 • Ceased use of gas i
Slide 6: Social
120 year sustainable history drives positive ESG initiatives Social • 1000 toys produced at Clarence Correctional Centre using BRI donated plywood • Serco has also partnered with Big River Industries, which donates the timber needed to make the toys. Working with local partners to deliver meaningful
Slide 7: Governance
120 year sustainable history drives positive ESG initiatives Governance • Modern slavery audits conducted on 75% of international suppliers, with compliance achieved in all cases • Achieved an increase of 4 percentage points in ratio of women in the BRI workforce in the last 2 years • Board independ
Slide 8: Financial Performance Headlines
Performance Headlines Financial • Revenue growth of 45.4% to $409.3m, including 20.0% store on store organic growth, well ahead of addressable market changes • Underlying EBITBA of $48.0m, represented 113.3% growth over FY21 • Underlying NPAT of $22.7m, 191.0% ahead of FY21, with Statutory NPAT up t
Slide 9: Operating Highlights
Performance Headlines Operating Highlights • 2H22 showed accelerated revenue growth over 1H22, with store on store organic growth of over 23.1% (versus 14.0% in 1H22) • Revenue growth achieved in every business category and geography in which the business operates • Gross margin expansion of 190 bps
Slide 10: Divisional Performance
Divisional Performance Divisional Restructure completed Realigned Management into Panels and Construction Divisions, to achieve better management cover for our increasing number of sites, and a stronger focus and enhanced synergy extraction Panels Construction Products Corporate Total FY22 FY21 FY22
Slide 11: Financial Performance
Financial Performance FY2022 FY2021 Change ($m) ($m) (%) • Strong revenue growth achieved through both organic growth and acquisition contribution Revenue 409.3 281.4 45.4% • Gross profit margin increased by 190 bps, Gross Profit 110.3 70.1 57.3% driven by enhanced product mix and a rising Gross pro
Slide 12: Profitability Waterfall
Profitability Waterfall $11.6m $48.0m $6.4m ($6.6m) $14.1m $22.5m FY21 Revenue GM% Acquisition Cost FY22 U-EBITDA growth improvement contribution changes U-EBITDA • Organic revenue growth delivered 63% growth in U-EBITDA • Gross margin expansion of 190 bps delivered 28% growth in U-EBITDA • Acquisit
Slide 13: Balance Sheet
Balance Sheet 30 June 22 30 June 21 Balance Sheet ($m) ($m) Cash 19.8 7.8 • Growth in receivables of 17.4% well below the revenue growth achieved Receivables 63.4 54.0 • Like for like inventory increased by 23% to $72.8m, Inventories 72.8 54.1 reflecting additional inventory volumes and the Fixed as
Slide 14: Capital management
Capital management 30 June 30 June 21 • Strong collections lifted closing cash balance 22 ($m) ($m) to $19.8m. Total bank facility 68.1 58.1 • Nab term debt facility increased by $10m in Drawn Debt 41.1 29.7 FY22 Cash (19.8) (7.9) • Term debt ($46m) split into two tranches, Net Debt $m 21.3 21.8 exp
Slide 15: Cash Flow
Cash Flow Cash Flow FY2022 FY2021 ($m) ($m) • OCFBIT or cash conversion was strong at Receipts from customers 398.1 305.6 88.5% achieved Payments to suppliers & employees (360.6) (291.0) • Government funding receipts of $5.0m for the Government Grants 5.0 4.0 period were in line with the total FY22
Slide 16: Outlook: Market Conditions
Outlook Market Conditions • The addressable market volumes are forecasts to grow modestly versus FY22 • Improvements in Multi-residential and commercial construction expected to be offset by slight moderation in Detached Housing and the Alteration & Additions market • Weighted average price growth s
Slide 17: Outlook: Strategy execution
Outlook Strategy execution • Consolidation Project not yet delivering strategic benefits due to equipment delays and contractor limitations • Final $2m in Capex expected in FY23 • This provides potential upside to FY23 earnings • Consolidation of our small Sydney Panels site into the newly acquired
Slide 18: Outlook: Financial
Outlook Financial • Trading in the first 8 weeks of FY23 has shown organic (like for like) revenue growth of 23% * • Expect a moderating of inventory levels (relative to sales revenue) as supply chains improve • Expect cash conversion rates for FY23 in line with the strong FY22 result * FY22 compara
Slide 19: Appendix
Appendix FY2017 FY2018 FY2019 FY2020 FY2020 FY2021 FY2022 FY2017 FY2018 FY2019 FY2020 FY2020 FY2021 FY2022 Key Financial Measures ($m's) Pre Pre Pre Pre Post Post Post PROFIT & LOSS ($m's) Pre Pre Pre Pre Post Post Post AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 AAS
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