Adrad Holdings Limited · ASX:AHL
Adrad — FY2023 Earnings Presentation
26 slides from Adrad's earnings presentation, Aug 29, 2023
Slide 1: FY23 Results Presentation
(ASX: AHL) FY23 RESULTS PRESENTATION 2 9 A U GVisit U S TNow 2023 adradholdings.com.au
Slide 2: Disclaimer
Disclaimer 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 prepare
Slide 3: Agenda
Agenda 1. Overview of Adrad Holdings Limited (AHL) 2. FY23 Highlights 3. FY23 Segment Achievements 4.FY23 Financial Summary 5. Growth Initiatives 6.FY24 Outlook 7.Appendix 3
Slide 4: Overview of Adrad
Overview of Adrad 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 aftermarket parts. Two major segments servicing all aspects of the engi
Slide 5: FY23 Highlights
FY23 Highlights 5
Slide 6: FY23 highlights
FY23 highlights Heat transfer solutions Automotive aftermarket Successfully transitioned volume part 13% revenue growth – growing number of manufacturing to Thailand providing customers and share of “basket”. opportunity for margin improvement. Warehouse additions supporting revenue Established manu
Slide 7: FY23 Highlights
FY23 Highlights $141.1m $15.6m1 $5.6m $6.8m Trading Revenue Pro forma EBITDA Cash flow generated NPAT Up 8% from pro forma FY22 Down 5% from pro forma FY22 from operations 1.63 6.6%2 $4.0m 8.46 cents CPS Final dividend ROACE Capital Investment Basic EPS Full year dividend: 2.33 cps 34% of NPAT Fully
Slide 8: Growing market presence delivers revenue growth
Growing market presence delivers revenue growth Pro forma trading revenue growth of 8%; exceeded target range of $135-$140 million as disclosed at half year. Other income reduced by $0.4M due to loss of management fee from discontinued operations and $0.3M from reduced miscellaneous income. Increase
Slide 9: FY23 Segment Achievements
FY23 Segment Achievements Awarded Kenworth Supplier of the Year 9
Slide 10: FY23 Segment Achievements
FY23 Segment Achievements Pro forma trading revenue increased 8% from $130.7 million to $141.1 million Strong revenue growth particularly in the Automotive Aftermarket segment with 13% Y-o-Y growth reflecting increased number of on-line accounts and broadened distribution footprint facilitating prod
Slide 11: Heat Transfer Solutions - Thailand production facilities
Heat Transfer Solutions - Thailand production facilities Heat transfer production facility commissioned; focus now on business development resourcing to build sales pipeline. Thailand facility being expanded by an additional 1,000M2 to accommodate increasing production demands. Building works schedu
Slide 12: Automotive Aftermarket - warehouse additions contributed to increased revenue
Automotive Aftermarket - warehouse additions contributed to increased revenue Improved customer reach Over 2,000 new Natrad Trade (on-line) customer accounts. +2,000 new accounts to 9,200 accounts More transactions per month with an increased share of the basket. 28% yoy growth Expanded product rang
Slide 13: Automotive Aftermarket - Product expansion
Automotive Aftermarket - Product expansion More products, more reasons Introduced a range of friction and rotating electrical products (brakes and alternators) during FY23; shock absorbers launched in July 2023. Expanded range provides customers with a wider offering giving them more reasons to thin
Slide 14: FY23 Financial Summary
ABRAA FY23 Financial Summary
Slide 15: Income Statement
Income Statement Pro forma revenue growth of 8%; exceeded target range of $135-$140 million as disclosed at half year. Increased revenue offset by higher operating costs; • Inflationary pressures on IT, insurance, freight and occupancy costs (leases). • Substantial investment in staff and facilities
Slide 16: Balance Sheet
Balance Sheet Solid cash position in preparation for further Thailand facility building, plant and equipment investment to grow capability and capacity to meet future demand. Additional inventory from product range expansion and short term increase to support transition of manufacturing to Thailand.
Slide 17: Cash Flow
Cash Flow Operating cash flow before interest and tax down 1.5% compared to FY22. Capital expenditure predominately directed towards Thailand manufacturing capability and capacity enhancements. Strong cash position provides flexibility to further develop Thailand facilities and pursue acquisitions.
Slide 18: Growth Initiatives
Growth Initiatives ADRAD
Slide 19: Growth initiatives
Growth initiatives Heat Transfer Solutions • Expand revenue in Asia market via Thailand direct sales. • Continue to expand manufacturing capacity in Thailand. • Transfer of volume part manufacturing from Australia to Thailand. • Development of heavy-duty aluminium range. • Improve operating efficien
Slide 20: Supporting Move To Renewables
Supporting Move To Renewables Innovative Cooling Products Heat Transfer Solutions business is engaged in the development of cooling modules to support the introduction of hydrogen fuel cells into the mining sector and other heavy industry. The innovative Alu Fin product is gaining much attention in
Slide 21: FY24 Outlook
FY24 Outlook 21
Slide 22: FY24 Outlook
FY24 Outlook • Business organization restructure to focus on core segments and clarify accountability. • The business is resilient to economic challenges and is well positioned for growth due to the non-discretionary aftermarket offering and strong OE order book. • Lift in build rates as major OEM c
Slide 23: Contact Us
CONTACT US Investor Relations Melanie Singh +61 439 748 819 melanie@nwrcommunications.com.au
Slide 24: Appendix
Appendix A pee
Slide 25: NPAT
NPAT Pro forma marginally above FY22 following post-tax adjustments for non-recurring costs associated with issue of convertible notes, write down of the deferred tax asset related to New Zealand operations and the write down of obsolete equipment. 25
Slide 26: Growth Investments
Growth Investments Extension of Thailand facility to increase capability is underway – estimated completion in FY24. Fabrication equipment (laser cutter, turret punch & brake press) for Thailand are on order. Expansion of aftermarket product range planned for FY24. Opportunistic investments.