Coventry Group Limited · ASX:CYG
Coventry — Shareholder Meeting (October 2023)
27 slides from Coventry's shareholder meeting presentation, Oct 20, 2023
Slide 1: FY23 Annual General Meeting
FY23 Annual General Meeting For personal use only 20 October 2023 Delivering specialised Industrial products, services and customised solutions
Slide 2: Agenda
Agenda For personal use only 01 HY22 summary 02 03 About Markets + Our strategy Coventry industries 04 05 06 FY23 Business update and Summary performance outlook
Slide 3: About Coventry
For personal use only 01 About Coventry
Slide 4: About Coventry
About Coventry QLD 85 locations across Fluid Systems: 5 For personal use only KAA: 13 Australia and New Zealand 1929 18 Coventry Group founded 12 NSW Fluid Systems: 1 4 10 WA KAA: 9 SA Fluid Systems: 4 Fluid Systems: 1 KAA: 7 1 ACT KAA: 3 11 DC: 1 KAA: 1 972 VIC Fluid Systems: 3 KAA: 7 10 TAS Fluid
Slide 5: What we do
What we do For personal use only We provide specialised industrial products, services and customised solutions to our wide network of customers through two business segments Fluid Systems • Fluid Systems designs, manufactures and sells hydraulic, lubrication, fluid transfer, refuelling, fire suppres
Slide 6: Specialisation is how we win
Specialisation For personal use only is how we win Our operating business units provide specialised industrial products, services and customised solutions to a wide range of customers from blue chips to tradespeople We operate across a wide range of growing markets where we have small market share S
Slide 7: Markets + industries
For personal use only 02 Markets + industries
Slide 8: The market + our industries
The market + our industries For personal use only Supply Labour and skills Our markets are Macroeconomic chain and other shortages remain performing well volatility continuing issues have eased challenging Demand remains robust from our primary end markets (mining and resources, infrastructure, comm
Slide 9: Coventry operates in high growth markets
Coventry operates in high growth markets Coventry has a small market share in large high growth markets with For personal use only significant opportunity for organic and acquisition growth Mining and resources Infrastructure Building and Industrial and Other markets construction manufacturing Conti
Slide 10: Our Strategy
For personal use only 03 Our Strategy
Slide 11: Our Strategy
Our Strategy For personal use only Our Purpose Our Values Our Vision Strategic priorities Customer promise The right people for growth Safety first Zero harm To provide Accelerate Do the right thing Profitable sales Exceptional specialised profitable (Fairness, Integrity growth specialist services i
Slide 12: Our organic growth opportunities
Our organic growth opportunities For personal use only Expand Improving the Improve value Service and Digitalisation network network proposition product extensions Expanding product Greenfield Konnect Trade store Improving our value ranges Australia and New makeovers and proposition to retain custom
Slide 13: FY23 performance
For personal use only 04 FY23 performance
Slide 14: FY23 financial performance snapshot
FY23 financial performance snapshot Financial performance For personal use only Solid revenue and profit growth Revenue EBITDA 1 EBIT 2 Statutory net profit $358.5m $17.0m $15.6m $2.5m +11.2% on FY22 +9.7% on FY22 +9.9% on FY22 $4.8m FY22 Cash conversion 4 Net Assets Net Debt Net Debt impacted by •
Slide 15: Historical results
Historical results For personal use only Group Revenue Revenue up 11.2% to $358.5m ($322.3m FY22) Group EBITDA1 up 9.7% to $17.0m ($15.5m FY22) EBITDA1 Note 1: EBITDA is earnings before interest, tax, depreciation, amortisation before significant items and has been adjusted to exclude the impact of
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Solid balance sheet position 84 For personal use only $m As at 30 June As at 30 June • The Group has a solid balance sheet 2023 2022 with Net Tangible Assets of $36.8m and Net Assets 113.0 113.6 Net Assets of $113.0m as at 30 June 2023 • The Group has a solid working capi
Slide 17: FY23 Segment performance
FY23 Segment performance Trading performance improved during FY23 with both business segments delivering Sales and profit year on year growth 84 For personal use only Fluid Systems • Fluid Systems EBITDA1 % to sales of Revenue EBITDA1 10.4% • Trade Distribution EBITDA1 % to sales $148.1m $15.3m of 8
Slide 18: Business update and outlook
For personal use only 05 Business update and outlook
Slide 19: Q1 FY24 performance
Q1 FY24 performance The Group delivered solid FY24 quarter one sales and unaudited EBITDA1 growth 84 For personal use only • Initiatives to grow EBITDA1 % to Sales to 10% in the medium term have delivered early positive Group improvements and our strategy based on specialisation and service excellen
Slide 20: Business overview Fluid Systems
Business overview Fluid Systems Fluid Systems is an innovative service provider to the Mining and Resources, Renewable Energy, Agriculture and 84 For personal use only Aquaculture, Defence and Food & Beverage Manufacturing and allied industries Fluid Systems specialises in hydraulics, lubrication, f
Slide 21: Business overview Trade Distribution
Business overview Trade Distribution Trade Distribution comprises Konnect and Artia Australia (KAA), Konnect and Artia New Zealand (KANZ), and Nubco 84 For personal use only supplying a range of fastening systems, cabinet hardware systems, industrial and construction products through a network of 48
Slide 22: Business update
Business update 84 For personal use only Key strategic initiatives KAA profitability improvements ERP upgrade project Accelerating delivery of our strategy ERP upgrade progressing well • Fixing underperforming branches • The ERP upgrade continues to progress broadly to • Improving capability to deli
Slide 23: Business update
Business update 84 For personal use only Key strategic initiatives Optimising financial health Develop marketing and digital capability Cash conversion project delivered positive Appointment of key experienced resources results • Developing our marketing and promotion capability to • Inventory optim
Slide 24: Strategic Priorities FY24
Strategic Priorities FY24 For personal use only • The right people for growth • Accelerate profitable organic growth in Trade Distribution • Continue focus on rightsizing inventories and cash conversion • Deliver ERP upgrade project to schedule and on budget • Reinforce with customers our focus on s
Slide 25: Summary
For personal use only 06 Summary
Slide 26: Summary
Solid FY23 performance For personal use only Good start to Q1 with EBITDA1 up +10.8% Operating in resilient markets Summary and industries with the right strategy and the right people for profitable growth Specialisation will help us win
Slide 27: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by Coventry This presentation may include forward-looking statements. Although the Company believes For personal use only Group Ltd (the Company) and may c