PWR Holdings Limited (ASX: PWH) ASX ANNOUNCEMENT 11 October 2017 PWR Presentation at Morgans Queensland Conference PWR Holdings Limited will today make a presentation at the Morgans Queensland Conference in Brisbane. Please find attached a copy of the presentation to be given at the conference. A copy of this presentation is also available on our website at www.pwr.com.au For further information: Kees Weel, Managing Director +61 7 5547 1600 For personal use only
Transcript
PWR Holdings Limited (ASX: PWH) ASX ANNOUNCEMENT
11 October 2017
PWR Presentation at Morgans Queensland Conference PWR Holdings Limited will today make a presentation at the Morgans Queensland Conference in Brisbane. Please find attached a copy of the presentation to be given at the conference. A copy of this presentation is also available on our website at www.pwr.com.au For further information: Kees Weel, Managing Director +61 7 5547 1600
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PWR HOLDINGS LIMITED
INVESTOR PRESENTATION
OCTOBER 2017
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IMPORTANT NOTICE
This document has been prepared by PWR Holdings Limited (PWR) and comprises written materials/slides for a presentation concerning PWR.
This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, anysecurities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any or contract or investment decision.
Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import.
These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance orachievements expressed or implied by such forward looking statements.
No representation, warranty or assurance (express or implied) is given or made by PWR that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, PWR and its respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any direct or indirect loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom.
Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, PWR disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no changein the affairs of PWR since the date of the presentation.
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AGENDA
Financial Overview 4
Business Overview 6
Current Year 11
Business Outlook 13
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FY17 RESULTS AND REVENUE GROWTH
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Actual and Constant Currency Results
FY16 vs FY17 (AUD)Revenue by Currency
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) is a non-IFRS term which has not been
subject to audit or review but has been determined using information presented in the Group’s financial report.
CAGR
27.5%
CAGR
58.4%
CAGR
11.1%
Estimated result using constant currency
Financial Overview
Business Overview
Current Year
Business Outlook
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STRONG BALANCE SHEET & CASHFLOW
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A$'000 FY17 FY16
Cash at year end 9,064 8,797
Net working capital 8,305 7,698
Cash from operating activities 13,529 16,599
Conversion of EBITDA to Cash 91.9% 98.2%
Free cash 5,326 11,373
Capital expenditure
C&R Racing core production line 1,925 -
Growth capex 1,265 1,752
Business as usual capex 682 661
Key points
• Zero net debt and strong cash
position
• Strong cash conversion from
operating activities
• Finance facilities in place and
available
• Fully franked FY17 total dividend
5.6 cents per share, 60% of FY17
NPAT
• All FY17 capex of $3.9 million paid
from cash resources
Financial Overview
Business Overview
Current Year
Business Outlook
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PWR DIFFERENCE
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Technology
Passion
Range
Quality
Delivery
Financial Overview
Business Overview
Current Year
Business Outlook
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MANAGEMENT – LONG TERM EXPERIENCE
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Person Role Time at
PWR
Experience Responsibilities
Kees
Weel
MD & CEO 20 years 40 years cooling mfg,
product development
and sales
Business performance
Global operations
Matt
Bryson
GM
Engineering
11 years 20 years cooling mfg,
product development
and sales
Technical sales
Engineering
Product development
Marshall
Vann
GM 7 years 5 years CEO listed coy
25 years commercial
Commercial operations
Investor relations
Adam
Purss
CFO 4 years 4 years CFO listed coy
4 years audit experience
Finance
Jim
Ryder
GM USA 9 months 20 years Roush
8 years Ford Motor Co
C&R USA sales & production
USA OE programs management
Andy
Burton
GM
UK/Europe
10 years 10 years Alcon Brakes UK/Europe business development
Mick
Cullen
Production
Manager
14 years 14 years PWR
fabrication & production
PWR Australia production
Financial Overview
Business Overview
Current Year
Business Outlook
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FY17 INVESTMENT IN THE FUTURE
Staff
Increased overall headcount by 14% including
Increased engineering headcount by 36%
Increased specialty production headcount by 48%
Equipment
C&R core production line – budget US$4.25 million
Second Variaxis CNC machine – cost $780,000
High speed CNC mills – cost $200,000
Cold plate cooler test rig – cost $80,000
Batch vacuum purge braze furnace – cost $135,000
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Financial Overview
Business Overview
Current Year
Business Outlook
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MOTORSPORTS DRIVEN
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Financial Overview
Business Overview
Current Year
Business Outlook
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MOTORSPORTS CUSTOMER ENGAGEMENT
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Motorsports Customer Revenue > A$100K1
1 Constant currency basis on FY13 average exchange rates
Financial Overview
Business Overview
Current Year
Business Outlook
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CURRENT YEAR
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Financial Overview
Business Overview
Current Year
Business Outlook
FY17 FY18
GBP 0.5767 0.6033
USD 0.7573 0.7891
Average exchange rate for first quarter
Continued organic growth in the first quarter
The Australian dollar has strengthened
compared to the prior year
C&R Core Production line coming on line
Development of new technologies still
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HISTORIC SEASONALITY
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Key Drivers of seasonality
• Motorsports (66% of FY17 revenue) calendar year season
2H – build for current and upcoming races, 1H – less race demand more prototyping
• Australian aftermarket (10% of FY17 revenue)
Hotter weather = more sales – summer
Average Monthly Revenue as % of Annual Revenue FY14 – FY17
