PWR HOLDINGS LIMITED PWR Holdings Limited (ASX:PWH)
2022 First Half Results Presentation
use only | |
ersonal | |
February 2022 | |
Pre ented by: | |
Kees Weel - Managing Director | Engineering the Unfair Advantage |
Martin McIver - Chief Financial Officer |
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, any securities, 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 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. | ||
only | ||
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 or achievements 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 | ||
usethis 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 change in the affairs of PWR since the date | ||
of the presentation. | ||
F bruary 2022 - FY22 Half Year Results | 2 | |
ersonal |
Performance Highlights
Strong Business Growth | Overall 22% growth - solid growth across all key markets |
Motorsports | 20% growth - motorsport categories return to a more traditional race program |
Original Equipment Manufacturers | 43% growth - strong growth due to the commencement of new programs |
(OEM) | including Aston Martin Valkyrie, and the continuation of existing programs |
onlyEmerging Technologies1 | including Ford GT500 |
36% growth - broadening customer base with strong demand for both micro | |
matrix and cold plate technologies. Now represents 14% of Group revenue | |
Aerospace and Defence | Strong order book for the second half of the year |
Automotive Aftermarket | Working to increase production capacity to meet market demand |
useOnline Store - Launched | |
PWR online store launched on 15 December 2021, ahead of schedule. The online | |
ersonal | store provides another channel for automotive aftermarket sales |
Solid conversion of revenue to NPAT of 16.5% | |
NPAT | |
Interim Dividend | Dividend policy of 40% to 60% of NPAT, with an interim dividend of 3.50 cents per |
share representing 47% of 1H FY22 NPAT | |
1 Emerging Technologies includes Aerospace and Defence across all technologies, and other market sectors generated by cold plate, micro matrix and additive manufacturing
F bruary 2022 - FY22 Half Year Results | 3 |
Performance Challenges - COVID-19
COVID-19 | Continuing market uncertainty with frequently changing rules and guidelines |
only | International and State border closures restricting movement of employees |
Employee availability due to Government imposed isolation requirements impacting | |
production capacity | |
COVID-19 Vaccine Mandate | Due to the nature of a manufacturing facility, employees cannot work from home and |
use | fully effective social distancing is not always possible |
The management team have spent considerable time in the planning and | |
implementation of a vaccine mandate for PWR Australia as well as COVID-19 safe | |
operating procedures globally to minimise the current and future impact to operations | |
To protect our employees and in anticipation of Australian State borders reopening | |
ersonal | with increased community transmission, in December 2021 PWR introduced a COVID- |
19 vaccine mandate for the Ormeau facility, effective from 4 January 2022 | |
Prior to introducing the vaccine mandate, PWR engaged in extensive consultation with employees, including holding on site information sessions with Doctors
The introduction of the vaccine mandate resulted in the loss of 9 employees
F bruary 2022 - FY22 Half Year Results | 4 |
Performance Challenges - Other
onlySupply Chain
useInflation
Supply chain shortages have resulted in increased prices, lead times and minimum order quantities for raw materials
We have increased sale prices where possible to pass through the raw material costs
We have been increasing forward orders and inventory of raw materials to ensure continuity of supply
We have increased finished goods inventory for key programs and are warehousing these finished goods in the United Kingdom to reduce the shipping distance for the final delivery to the customer, reducing the risk of freight delays
Increasing inflation as the global economies recover from COVID-19 will continue to put pressure on wage rates, raw material and supply chain costs
Recruitment and Retention | Attraction, effective onboarding, upskilling and retention of employees is critical to | |
ersonal | growth and continued performance | |
F bruary 2022 - FY22 Half Year Results | 5 | |
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PWR Holdings Ltd. published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 06:53:05 UTC.
