Slide 1: FY23 Full Year Result
FY23 Full Year Result Delivering specialised Industrial products, services and customised solutions
Slide 2: FY23 financial performance snapshot
FY23 financial performance snapshot Financial performance 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 $4.8m FY22 Cash conversion 4 Net Assets Net Debt Net Debt impacted by • ERP upgrade project ($
Slide 3: Agenda
Agenda 01 HY22 summary 02 03 About Markets + FY23 Coventry industries performance 04 05 06 Business update and Our strategy FY24 outlook priorities
Slide 4: About Coventry
Ni i : ‘IM 1 About Coventry
Slide 5: About Coventry
About Coventry QLD 84 locations across Fluid Systems: 5 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 Systems: 1 Nubco: 7 18
Slide 6: What we do
What we do 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 suppression, automation syste
Slide 7: Specialisation is how we win
Specialisation 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 Specialisation differen
Slide 8: Markets + industries
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Slide 9: The market + our industries
The market + our industries Our markets are Supply Labour and skills Macroeconomic performing chain issues have shortages remain volatility continuing strongly eased challenging Demand remains robust from our primary end markets (mining and resources, infrastructure, commercial construction and indu
Slide 10: Coventry operates in high growth markets
Coventry operates in high growth markets Coventry has a small market share in large high growth markets with significant opportunity for organic and acquisition growth Mining and resources Infrastructure Building and Industrial and Other markets construction manufacturing Continued strong $100b comm
Slide 11: FY23 performance
03 FY23 performance
Slide 12: FY23 Overview: Group Revenue and EBITDA
FY23 Overview 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 AASB 16 Leases. Note 2: EBI
Slide 13: Profit and loss
Profit and loss Summary profit and loss 84 $m FY23 FY22 % change • EBITDA 1 up +$1.5m (+9.7%) on prior Revenue 358.5 322.6 +11.2% year EBITDA 1 17.0 15.5 +9.7% • EBIT 2 up +$1.4m (+10.0%) on prior year Depreciation and amortisation (3.6) (3.1) • Profit before tax (PBT) and Net profit after tax (NPAT
Slide 14: Balance sheet
Balance sheet Solid balance sheet position 84 $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 Total current assets 137.2 144.4 and Net Assets of $113.0m as at 30 June 2023 Total non-current assets 145.6 134.4 • The Group has a solid w
Slide 15: Cash flow
Cash flow Cash conversion of 112.5% FY23 84 $m FY23 FY22 Gross operating cash flow 25.8 15.8 • Significant improvement in cash conversion in FY23 Less Cash lease payments (13.1) (11.1) • As supply chain issues and stock Add back Significant Items 6.4 2.2 shortages experienced during COVID- 19 are no
Slide 16: FY23 Segment performance
FY23 Segment performance Trading performance improved during FY23 with both business segments delivering Sales and profit year on year growth 84 Fluid Systems • Fluid Systems EBITDA1 % to sales of Revenue EBITDA1 10.4% • Trade Distribution EBITDA1 % to sales $148.1m $15.3m of 8.1% +14.1% on FY22 +19
Slide 17: Business update and outlook
04 Business update and outlook
Slide 18: 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 Aquaculture, Defence and Food & Beverage Manufacturing and allied industries Fluid Systems specialises in hydraulics, lubrication, fire suppression, refue
Slide 19: 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 supplying a range of fastening systems, cabinet hardware systems, industrial and construction products through a network of 48 branches in Australia
Slide 20: Business update
Business update 84 Key strategic initiatives KAA profitability improvements Develop marketing and digital capability Accelerating delivery of our strategy Appointment of key experienced resources • Fixing underperforming branches • Appointed Sales and Marketing Managers in each of • Improving capabi
Slide 21: Business update
Business update 84 Key strategic initiatives ERP upgrade project Optimising financial health ERP upgrade progressing well Cash conversion project delivered positive results • Project on schedule and on budget • Experienced project team and implementation • Inventory optimization project accelerating
Slide 22: Our Strategy
05 Our Strategy
Slide 23: Our Strategy
Our Strategy Our Purpose Our Values Our Vision Strategic priorities Customer promise Safety first Zero harm The right people for growth To provide Do the right thing Profitable sales Exceptional specialised (Fairness, Integrity growth Cash conversion specialist services industrial products, and Resp
Slide 24: Our organic growth opportunities
Our organic growth opportunities Expand Improving the Improve value Service and Digitalisation network network proposition product extensions Expanding product Greenfield Konnect Trade store ranges Improving our value Australia and New makeovers and proposition to retain Enhance stud bolt ERP upgrad
Slide 25: Case studies
Case studies 84 Sunshine Coast relocation Geelong relocation Rockhampton new store Relocation June 2022 Relocation February 2023 New store opened November 2021 • Underperforming store relocated to right • Underperforming store relocated to right • Opportunity arose to open a store in a sized buildin
Slide 26: FY24 priorities
06 FY24 priorities
Slide 27: Strategic Priorities FY24
Strategic Priorities FY24 • The right people for growth • Accelerate 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 specialist industrial products, se
Slide 28: Summary
Solid FY23 performance Group sales growth of 11.6% Summary achieved in month one of FY24 Operating in resilient markets and industries Specialisation will help us win
Slide 29: 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 Group Ltd (the Company) and may contain information tha
Slide 30: Appendix
Appendix & Coventry Group Ltd
Slide 31: AASB16 Reconciliation
AASB16 Reconciliation FY23 FY22 Variance Variance $’000 ($) (%) Profit before financial income and tax 1 9,214 12,224 (3,009) Significant items 6,394 2,149 2,016 Add: Depreciation ROU Asset – Property and Vehicle 2 12,739 11,202 1,537 less: Lease payments - Property and vehicle (AASB 16 only) 3 (17,