Accsys Technologies Plc · LSE:AXS
Accsys Technologies — H1 FY2020 Earnings Presentation
24 slides from Accsys Technologies's earnings presentation, Nov 28, 2019
Slide 1: Interim Results Presentation
Sydney, Australia INTERIM RESULTS PRESENTATION For the six months ended 30 September 2019 Architect: Kengo Kuma © Accsys 2019
Slide 2: Disclaimer
DISCLAIMER YOU MUST READ THE FOLLOWING BEFORE CONTINUING. These slides and the accompanying verbal presentation (individually or together, the Presentation relating to representation as to the future. Information within this Presentation may be price sensitive or inside information Accsys Technologi
Slide 3: Accsys Executive Team
ACCSYS EXECUTIVE TEAM Paul Clegg William Rudge Robert Harris Chief Executive Officer Executive Finance Director Chief Executive Officer Designate Paul assumed the role of Chief Executive Will was appointed Financial Director in Rob will become CEO on 20 November 2019. He Officer in August 2009. Octo
Slide 4: Overview of Accsys
OVERVIEW OF ACCSYS Changing wood to change the world Where we operate We use our unique patented technology to create consistently high performing, sustainable wood products that enable new opportunities for the built environment. Accoya® Arnhem Plant Tricoya® Hull Plant Our process is extremely eff
Slide 5: Overview Interim Results
OVERVIEW INTERIM RESULTS • Strong demand, increased manufacturing capacity & higher REVENUE selling prices driving revenue growth • Higher volumes, economies of scale, improved margin - increasing profit +39% from H1 FY 19 • Group EBITDA up • Accoya® EBIT up 303% to GROSS MARGIN 29.1% the benefit of
Slide 6: Interim Financial Results
INTERIM FINANCIAL RESULTS Six months ended 30 September 2019 © Accsys 2019 6
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Change H1 FY20 H1 FY19 % Sales volume (m3) 28,113 21,379 32% Total Group Revenue 44.0 31.6 39% Gross Profit 12.8 7.0 83% Gross Margin 29.1% 22.2% Underlying EBITDA 2.5 (1.4) Underlying EBIT (0.4) (3.0) Period end net (debt) balance (59.3) (34.2) Strong financial performance for
Slide 8: Segmental Summary
SEGMENTAL SUMMARY R&D and H1 FY20 Accoya® Tricoya® Group Corporate Total revenue 43.7 0.3 0.0 44.0 Gross profit 12.5 0.3 0.0 12.8 Underlying EBITDA 7.6 (1.1) (4.0) 2.5 Underlying EBIT 5.3 (1.3) (4.4) (0.4) R&D and H1 FY19 Accoya® Tricoya® Group Corporate Total revenue 31.1 0.5 0.0 31.6 Gross profit
Slide 9: Significant Revenue Growth
SIGNIFICANT REVENUE GROWTH • Revenue growth across all regions Accoya® wood revenue up 43% for the period vs H1 FY19 • 22% increase in volumes to MEDITE & FINSA to support Tricoya® market seeding Sales volume by region/purpose Accoya® wood revenue by region/purpose Benelux, APA, RoW 13.0 UK & Irelan
Slide 10: Profitability
PROFITABILITY Accoya® segment revenue, and manufacturing margin Accoya ® segment revenue (€ million) • Accoya® manufacturing margin increased to 28.6% from 20.7% (H1 FY19) as a result of: – Sales volumes up 32% – Higher sales prices – Improved sales product mix • Annual maintenance stop completed in
Slide 11: Movement in Net Debt
MOVEMENT IN NET DEBT Net Debt (€ million) • Accoya® underlying EBITDA up 171% to • Tricoya® EBITDA reflects its pre- operating position • Capex investment of continued progress on the Tricoya® plant in Hull • Other movements include tax received, investment in intangible assets, interest received, p
Slide 12: Accsys in Action
ACCSYS IN ACTION Helsinki, Finland complex in Helsinki uses wood extensively for both structure and finish, with Accoya® cladding. Architect: Anttinen Oiva © Accsys 2019 12
Slide 13: Strategic Investment for Further Profitable Growth
STRATEGIC INVESTMENT FOR FURTHER PROFITABLE GROWTH Arnhem Accoya® Plant Expansion: Total Production Capacity Growth 240,000 m³ • Arnhem plant operating at full capacity from end of FY19, planning underway Prospective for fourth reactor to increase capacity from 60,000m3 to 80,000m3 200,000 m³ Tricoy
Slide 14: Investing to Meet Accoya Demand
INVESTING TO MEET ACCOYA DEMAND ® • Reactor 3 expansion (50% increase to 60,000m3) completed July 2018 full capacity reached within 9 months • Reactor 4 and other enhancements to Arnhem will: – Increase annual production capacity by c.33% to 80,000m3 – Enable further growth from existing distributor
Slide 15: Hull Plant Progress
HULL PLANT PROGRESS • Construction work in Hull progressing – c. – Engineering almost complete; construction substantially progressed – Previously reported issues concerning civil engineering works being addressed • Delay in construction has resulted in additional forecast costs associated with the
Slide 16: Hull Funding Requirement
HULL FUNDING REQUIREMENT • Additional forecast project costs of c. – Accsys share is c. – Balance expected from Tricoya® Consortium (incl. BP, MEDITE) plus RBS debt • MEDITE and FINSA expected to utilise the majority of the capacity of the Hull Plant as it ramps up operation • Hull Plant targeted in
Slide 17: Further International Expansion Opportunities
FURTHER INTERNATIONAL EXPANSION OPPORTUNITIES United States • North America identified as largest Accoya® market opportunity • Increasing demand with sales volumes up 39% in H1 FY20 • Progressing discussions with Eastman Chemical Company concerning a potential joint venture Accoya® production facili
Slide 18: Positioned for Ongoing Growth
POSITIONED FOR ONGOING GROWTH • Proven strong market demand for Accoya® and Tricoya® with customers remaining on allocation • Investment in Arnhem will increase capacity by 33% and further improve plant efficiency with 30% gross margin • Hull construction completion expected by H2 CY20, targeting in
Slide 19: Accsys in Action
ACCSYS IN ACTION Wiltshire, UK Accoya® wood window frames on the modular housing pods at the Dyson Institute of Engineering and Technology campus. Architect: WilkinsonEyre © Accsys 2019 19
Slide 20: Appendix
APPENDIX Changing wood to change the world © Accsys 2019 20
Slide 21: Our Products
OUR PRODUCTS Product categories • Tricoya® wood elements are made into • Our solid timber product, acetylated at durable, stable Tricoya® panels by our our Arnhem plant licensees (MEDITE & FINSA); the panels Windows Cladding Decking Structural are expected to be high-value and high- • A high perform
Slide 22: Sustainability
SUSTAINABILITY • Demand growth for sustainable alternatives to man-made, non-renewable and high carbon footprint materials • We give the world a choice to build more sustainably • - while having the same performance as non- - building products • Proven sustainability credentials, with certification
Slide 23: Investment Proposition
INVESTMENT PROPOSITION Substantial market opportunity Scalable growth Potential sales for Accoya® and Tricoya® estimated to Our manufacturing process and modular industrial be in excess of 2.6 million cubic metres per annum. design is based upon confidential know-how and Accoya® sales in FY2019: 49,
Slide 24: Tricoya Consortium Structure
TRICOYA CONSORTIUM STRUCTURE The Tricoya® Consortium is based on two entities: Loan notes • Tricoya MEDITE BP Ventures Accsys BGF/Volantis from all Tricoya® related intellectual property Equity option 11.5% 8.4% 76.1% 4.0% • Tricoya subsidiary and will own and operate the Tricoya® plant in Hull MEDI
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