Korvest Ltd. · ASX:KOV
Korvest — FY2020 Earnings Presentation
18 slides from Korvest's earnings presentation, Jul 27, 2020
Slide 1: 2020 Results
For personal use only 2020 RESULTS Chris Hartwig and Steven McGregor
Slide 2: For personal use only
EzyStrut OULOLAN ff i => Cy~ lla o> _ : ee jinn Cable aid Pipe Supports a gs mOLpersone pre) zy I Korvest tic Safety Access Systems
Slide 3: Agenda
Agenda • For personal use only FY20 Key Points • Financial Results • Outlook • Company Overview 3
Slide 4: Introduction to Korvest
Introduction to Korvest • For personal use only Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services • Listed in September 1970 • Korvest has sales offices and war
Slide 5: Headline Numbers
Headline Numbers June 20 June 19 % Change Sales $63.09m $60.84m 3.7% For personal use only EBIT $5.84m $4.07m 43.5% NPAT $4.03m $2.90m 39.0% EPS 35.8c 25.9c 38.2% Dividend per share 28c 22c 27.3% Profit After Tax 2,500 2130 • Increased project work (mainly 1H) 2,000 1,748 1897 • Strong cash generati
Slide 6: COVID-19
COVID-19 • Steering Committee established For personal use only • 3 additional Board Meetings • JobKeeper – qualified for Korvest in May due to decline in May 20 vs May 19 revenue due to lack of major project work in May 20 • $1.06m before tax JobKeeper income in FY20 • Minimal supply chain disrupti
Slide 7: Industrial Products
Industrial Products June 20 June 19 % Change For personal use only Sales $57.09m $55.70m 2.5% EBIT $4.50m $4.29m 4.9% EBIT % 7.9% 7.7% Trading Update • Two major projects in 1H, none in 2H • Significant bad debt ($1.0 million EBIT impact) • Smaller projects and day-to-day remained active • High leve
Slide 8: Production Services
Production Services June 20 June 19 % Change For personal use only Sales $6.00m $5.15m 16.5% EBIT $0.69m $0.52m 32.7% EBIT % 11.5% 10.1% Galvanising volume Trading Update • External volume increased with more project work • Zinc pricing trending down • Net energy costs reduced • Electricity costs re
Slide 9: Strategic initiatives
Strategic initiatives • Record capital expenditure to modernise and automate factory For personal use only • IXL toll processing arrangement concluded • Key IXL processing lines purchased, currently being commissioned to expand production capacity • Bag house operating within EPA guidelines • Bracke
Slide 10: Balance Sheet
Balance Sheet ASSETS $m June 2020 June 2019 June 2018 Cash & Investments 6.7 3.4 5.4 For personal use only Receivables 10.1 14.1 10.0 Active major project late in FY19, FY20 lower 4Q revenue Inventories 10.6 10.5 9.4 Property, Plant & Equipment 15.9 13.0 12.9 Significant investment in factory during
Slide 11: Dividends
Dividends For personal use only FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 Interim 15c 9c 5c 10c 10c Final Dividend 13c 13c 7c 3c 10c Total Dividend 28c 22c 12c 13c 20c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 21 August 2020 Payment Date: 4 September 2
Slide 12: Outlook
Outlook For personal use only • Major infrastructure project secured with supply throughout FY21 commencing July 2020 • Multiple major projects currently in the bid stage for delivery over the next 3-5 years • Day-to-day and small project markets reasonable • Working capital likely to be consumed (p
Slide 13: Company Overview
For personal use only Overview Company
Slide 14: Industrial Products: Cable and pipe supports
Industrial Products For personal use only • Cable and pipe supports • Market leader in cable supports • Manufacturing facility in Kilburn, SA • Overseas supply chain • Sells to EPCMs, Wholesalers, and direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 15: Industrial Products: Hydraulic/Electric Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles o Design o Manufacture • Safety Lighting • Filter Crushers • Queensland Based 15
Slide 16: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches o Sale o Hire o Repair • Markets o Large scale construction o Power stations o Industrial sites o Mines o Wind towers 16
Slide 17: Production Services
Production Services For personal use only • Longest galvanising kettle in Australia (14m) • South Australia’s only centrifuge plant (national market) • Predominantly structural work for SA projects or fabrications • In-house work for EzyStrut 17
Slide 18: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Safety Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for any industry. www.titantools.com.au Quick turnaround galvanising of the largest, smallest, and mos