Wagners Holding Co. Ltd. · ASX:WGN
Wagners — FY2023 Earnings Presentation
27 slides from Wagners's earnings presentation, Aug 21, 2023
Slide 1: Wagners FY2023 Results – Investor Presentation
CONSTRUCTION MATERIALS AND SERVICES COMPOSITE FIBRE TECHNOLOGIES EARTH FRIENDLY CONCRETE WAGNERS HOLDING COMPANY LIMITED ASX RELEASE 21 August 2023 Wagners FY2023 Results – Investor Presentation Please find attached the Investor Presentation relating to the Company’s full year results ending 30 June
Slide 2: Wagners FY23 Results Presentation
WAGNERS FY23 RESULTS PRESENTATION 21 August 2023
Slide 3: Contents
CONTENTS FY23 RESULTS STRATEGY UPDATE FY24 OUTLOOK APPENDIX
Slide 4: FY23 Group Highlights
Fy23 GROUP highlights $477.3 million STRONG TOP LINE GROWTH AMID IMPROVED MARKET CONDITIONS Group Revenue +41% vs FY22 • Strong top line growth, up 41% versus FY22 (+24% CAGR FY20 – FY23), driven predominantly by cement, precast and bulk $249.4 million haulage • Reported EBIT of $17.0 million, excee
Slide 5: FY23 Highlights & Performance
FY23 HIGHLIGHTS & PERFORMANCE
Slide 6: FY23 Segment Highlights – CMS
FY23 SEGMENT HIGHLIGHTS – CMS CONSTRUCTION MATERIALS AND SERVICES (CMS) • Improved performance in H2 due to elevated volumes, notably cement, steel and bulk haulage, resulting in increased asset utilisation • Cement revenues up 25%¹ following volume and price improvements • Concrete average selling
Slide 7: FY23 Segment Highlights – CFT
FY23 SEGMENT HIGHLIGHTS – CFT composite fibre technologies (CFT) • Revenue increased by 41% • Demand within Australia for crossarm sales remained consistent, while demand for composite utility poles continued to grow, with several contracts secured • Overall, encouraging domestic sales, notwithstand
Slide 8: FY23 Segment Highlights – EFC
FY23 SEGMENT HIGHLIGHTS – EFC EARTH FRIENDLY CONCRETE (EFC) • EBIT loss of $4.0 million, greater than FY23, due to increased investment in operations in H1 • Review of operations conducted during H2 • Action taken to structure operations in line with market conditions resulting in reduced operating
Slide 9: FY23 Group Performance
FY23 Group performance STRONG SECOND HALF RESULTS, A TALE OF TWO HALVES • Revenue growth driven by core CMS business (cement, (A$m) FY23 FY22 Change precast, bulk haulage) and CFT Total Revenue 475.1 336.7 138.4 • Gross margins improved during H2 due to increased Gross Profit 119.6 102.4 17.2 sellin
Slide 10: FY23 Segment Results
FY23 Segment results STRENGTH IN CORE BUSINESS, OFFSET BY EFC & CFT PERFORMANCE CMS Half-Yearly Performance (FY22 & FY23) CFT (ex. USA) Half-Yearly Performance (FY22 & FY23) (A$m) (A$m) 250 12.1% 225.5 12.5% 40 9.7% 10.0% 191.3 200 9.8% 10.0% 28.6 153.2 9.4% 30 25.4 7.5% 141.0 150 7.4% 7.5% 20.5 20
Slide 11: FY23 Balance Sheet
FY23 BALANCE SHEET STRONG POSITION TO LEVERAGE IMPROVEMENTS IN OPERATING ENVIRONMENT WORKING CAPITAL June June • Receivables grew $30.2 million versus FY22, driven by elevated (A$m) Variance 2023 2022 business activity and Group revenues overall¹ Trade and other receivables 95.1 65.0 30.2 • Inventor
Slide 12: FY23 Cash Flow Statement
FY23 Cash flow STATEMENT HEIGHTENED FOCUS ON CASH & CAPITAL EXPIDITURE (A$m) FY23 FY22 Change • Cash flow impacted by increased working capital, reflecting increased receivables EBITDA 50.0 45.7 4.3 • Capital expenditure in FY23 was $9.5 million lower versus FY22, driven by meaningfully reduced spen
Slide 13: Strategy Update
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Slide 14: Update on Strategic Review
Update on strategic review A NUMBER OF OUTCOMES IDENTIFIED WITH SEVERAL ACTIONS ALREADY IMPLEMENTED While still underway, progress has been made regarding Wagners internally-led strategic review, including: Group ✓ Costs – overall cost review ongoing, implementing several additional cost reduction s
Slide 15: Strategy Overview
STRATEGY OVERVIEW wagners growth strategy centres around expanding & INTEGRATING its core cms business, supported by innovation Wagners strategy is to drive revenue growth and increased returns, by: Growing and Pursuing major projects, Growing innovative consolidating core CMS leveraging Wagners' ex
Slide 16: FY24 Outlook
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Slide 17: FY24 Outlook
FY24 OUTLOOK THE CURRENT DEMAND ENVIRONMENT FOR CONSTRUCTION MATERIALS AND SERVICES REMAINS STRONG There are a number of segment-specific considerations regarding the Company’s outlook for FY24: Recent growth in concrete Strong forward order book Favourable resources Ongoing demand for and cement vo
Slide 18: Summary
SUMMARY WAGNERS IS Well-positioned to capitalize on opportunities with the necessary plant, equipment and personnel Well-invested, VERTICAL Attractive Distribution high-quality asset base INTEGRATION end markets footprint significant capital invested, enabling security of supply and consisting of hi
Slide 19: Appendix
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Slide 20: Who is Wagners?
WHO IS WAGNERS? Established in 1989 in Toowoomba (Queensland), Wagners is an ASX-listed diversified provider of construction materials, globally Innovative, vertically-integrated producer of new generation building materials, as well as a diverse range of project-specific products and services One o
Slide 21: Wagners' Vision
WAGNERS' VISION OUR VISION is to strive for intrepid progress to achieve beneficial outcomes Guiding Principles: • Wagners aims to be a world-class provider of construction materials and services to its customers. IT'S FAIR All of Wagners’ business decisions are premised on its guiding principles. A
Slide 22: Key Segments
KEY SEGMENTS WAGNERS Core CMS SEGMENT IS COMPLEMENTED BY ITS EMERGING NEW GENERATION BUILDING MATERIALS BUSINESSES Construction Materials & Services (CMS) Composite Fibre Technologies (CFT) Earth Friendly Concrete (EFC) • Supplies a range of construction • Durable construction materials – • Class of
Slide 23: Construction Materials & Services
CONSTRUCTION MATERIALS & SERVICES WAGNErS Core business, underpinned by well-invested network of high-quality assets & KEY PERSONNEL CMS spans a variety of interrelated businesses – providing both construction materials and related project services – covering residential, industrial, infrastructure,
Slide 24: Composite Fibre Technologies
COMPOSITE FIBRE TECHNOLOGIES Wagner’s inhouse design and manufacturing capability provides added Intellectual Property VIA ITS CFT BUSINESS • Light-weight, non-corrosive, non-conductive fiberglass building materials • Designed and manufactured inhouse by seven custom pultrusion machines, including r
Slide 25: Earth Friendly Concrete
EARTH FRIENDLY CONCRETE WaGNERS HAS developed a unique, environmentally-friendly concrete solution • Wagners award-winning ECF is a disruptive cement alternative, developed in direct response to global focus on reducing carbon intensity of cement production • Significantly reducing emissions, EFC is
Slide 26: Disclaimer
disclaimer The material contained in this presentation is a summary of Wagners Holding completeness or adequacy of any statements or other information contained Company Limited’s (Wagners) activities and results, current at the date of in this presentation. To the maximum extent permitted by law, Wa
Slide 27: Thank you
Thank you Contact: Karen brown Company secretary +61 (0) 7 3621 1131 SAM WELLS (nwr communications) SAM@NWRCOMMUNICATIONS.COM.AU +61 (0) 427 630 152