Korvest Ltd. · ASX:KOV
Korvest — H1 FY2013 Earnings Presentation
21 slides from Korvest's earnings presentation, Jan 25, 2013
Slide 1: Investor Presentation - Half Year Results Road Show
For personal use only Investor Presentation January 2013 Half Year Results Road Show Alexander Kachellek (Managing Director) Steven McGregor (Finance Director)
Slide 2: Agenda
For personal use only Agenda Half Year Results Highlights Company Overview Financial Results Future 1
Slide 3: FY13 Half Year Results Highlights
For personal use only FY13 Half Year Results Highlights Strong cashflows 1H FY13 result in line with AGM guidance (Oct 2012) 1H pcp benefited from impact of 3 major projects (approx. $8m sales) Dividend payout policy unchanged for interim dividend 2
Slide 4: Agenda
For personal use only Agenda Half Year Results Highlights Company Overview Financial Results Future 3
Slide 5: Introduction to Korvest
For personal use only Introduction to Korvest Korvest (ASX: KOV) is headquartered in South Australia and provides cable and pipe supports, walkway systems, and galvanising services. Listed in September 1970 The company has sales offices and warehouses in Adelaide, Melbourne, Sydney, Brisbane and Per
Slide 6: Corporate Snapshot
For personal use only Corporate Snapshot (as at 24 January) Korvest Share Price Performance Capital Structure (Last 2 years) source: IRESS Share Price $6.80 Shares on issue 8.804m $7.50 Market Capitalisation $59.9m $7.00 $6.50 Major Shareholder Shares (m) Stake (%) $6.00 Hills Finance Pty Ltd 4.21 4
Slide 7: Divisional Overview
For personal use only Divisional Overview Industrial Products Production Services Headcount 195 45 Revenue Contribution (1) 90.5% 9.5% EBIT Contribution (1) 76.0% 24.0% Notes: (1) Based on 1H FY2013 reported revenue and EBIT 6
Slide 8: Divisional Overview (cont'd)
For personal use only Divisional Overview (cont’d) 7
Slide 9: Industrial Products: EzyStrut
Industrial Products: For personal use only EzyStrut Cable and pipe supports Market leader in cable supports Manufacturing facility in Kilburn, South Australia Overseas supply chain Sells to EPCM’s, Wholesalers and direct to project contractors and trade Local manufacture allows quick response time a
Slide 10: Industrial Products: Indax
Industrial Products: For personal use only Indax Fabrication of walkway systems Grating and handrail Majority of work is made to order based on customer drawings Sell to EPCM’s and other fabricators Sale of component parts Fabrication facility at Kilburn, South Australia Vertical integration with Ko
Slide 11: Production Services: Korvest Galvanisers
Production Services For personal use only Korvest Galvanisers Longest galvanising kettle in Australia (14m) South Australia’s only centrifuge plant (national market) Predominantly structural work for SA projects or fabricators In-house work for EzyStrut and Indax 10
Slide 12: Board & Management
For personal use only Board & Management Executive Management Team • Alexander Kachellek – Managing Director • Steven McGregor – Finance Director • Chris Hartwig – General Manager EzyStrut • Andrew Ifkovich – General Manager Indax • Steven Evans – General Manager Galvanising • John Dickie – Engineer
Slide 13: Agenda
For personal use only Agenda Half Year Results Highlights Company Overview Financial Results Future 12
Slide 14: Headline Numbers
For personal use only Headline Numbers Dec 2012 June 2012 Dec 2011 % Change (1H) (2H) (1H) vs Dec 11 Sales $32.69m $33.83m $38.49m (15.1%) EBIT $3.16m $3.46m $5.13m (38.4%) Operating cashflow $4.34m $4.81m $3.87m 12.1% Earnings per share 25.9c 28.6c 43.0c (39.8%) Dividends per share 26c 30.0c 18.0c
Slide 15: Industrial Products
For personal use only Industrial Products Dec 2012 Jun 2012 Dec 2011 % Change (1H) (2H) (1H) Sales $29.58m $31.0m $35.6m (16.9%) EBIT $2.52m $2.91m $4.77m (47.2%) EBIT % 8.5% 9.4% 13.4% Trading Update – EzyStrut Trading Update – Indax • Major projects diminished • Strong first quarter • Result under
Slide 16: Production Services
For personal use only Production Services Dec 2012 Jun 2012 Dec 2011 % Change (1H) (2H) (1H) Sales $3.1m $2.8m $2.9m 6.9% EBIT $0.79m $0.52m $0.80m (0.9%) EBIT % 25.5% 18.6% 27.6% Trading Update – Galvanising • Main plant volumes increased • Internal tonnes reduced • Spin plant volumes reduced • Suc
Slide 17: Balance Sheet
For personal use only Balance Sheet June Y/E A$m Dec-12 Jun-12 Dec-11 Assets Cash 6.3 5.2 3.3 Receivables 12.5 14.8 15.6 Inventories 8.7 8.6 9.7 Property, Plant, and Equip 17.2 17.4 17.3 Total Assets 44.7 46 45.9 Liabilities Payables -4.9 -5.1 -6.1 Other Liabilities -3.7 -4.6 -4.1 Total Liabilities
Slide 18: Dividends
For personal use only Dividends FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 Interim 26c 18c 11c 17c 17c Special Interim 5c Final Dividend 30c 15c 15c 17c Total Dividend 53c 26c 32c 34c Franking 100% 100% 100% 100% 100% Upcoming Dates • Record Date: 27 February 2013 • Payment Date: 13 March 2013 17
Slide 19: Agenda
For personal use only Agenda Half Year Results Highlights Company Overview Financial Results Future 18
Slide 20: The Future
For personal use only The Future 2H expected to improve on 1H performance Pursue project opportunities LNG in WA, NT, Qld Tunnels in Qld, NSW, NZ Mines Qld, WA New products Acquisitions with synergies 19
Slide 21: For personal use only
For personal use only AUSTRALIA’S LEADING RANGE PREMIUM SUPPLIERS OF QUICK TURNAROUND OF CABLE & PIPE SUPPORTS. GRATING, HANDRAIL, GALVANISING OF THE STANCHIONS, AND OTHER LARGESTS, SMALLESTS, AND WALKWAY INFRASTRUCTURE. MOST COMPLEX CONSTRUCTION MEMBERS.