Korvest Ltd. · ASX:KOV
Korvest — Investor Presentation (July 2022)
17 slides from Korvest's investor presentation, Jul 25, 2022
Slide 1: 2022 Results
2022 Results Chris Hartwig and Steven McGregor
Slide 2: Cable & Pipe Supports
EzuStrut <K>> Cable & Pipe Supports korvest galvanisers
Slide 3: Agenda
Agenda • FY22 Key Points • Financial Results • Outlook • Company Overview 3
Slide 4: Introduction to Korvest
Introduction to Korvest • Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports and galvanising services • Listed in September 1970 • Korvest has sales offices and warehouses in Adelaide, Melbourne, Sydney, Brisbane and Perth, with distributors in Darwin, Townsvi
Slide 5: Headline Numbers
Headline Numbers June 22 June 21 % Change Sales $99.22m $69.79m 42.2% EBIT $16.00m $8.88m 80.2% NPAT $11.34m $6.05m 87.4% Operating cash flow $3.99m $6.51m EPS 99.0c 53.5c 85.0% Dividend per share 60c 35c Profit After Tax 8,000 7,036 • Record year with exceptional 1H 7,000 4,300 • Significant large
Slide 6: COVID-19
COVID-19 • Major impacts have been supply side, not demand side • Minimal disruption to key markets serviced by Korvest businesses • Increased shipping costs and lead times for imported items • Impact on commodity input prices and availability – Carbon steel prices rose significantly, supply has imp
Slide 7: Industrial Products
Industrial Products June 22 June 21 % Change Sales $91.13m $63.25m 44.1% EBIT $14.80m $6.80m 117.6% EBIT % 16.2% 10.8% Trading Update • 4 major projects supplied • Day-to-day activity remained strong • All states showed growth compared to FY21 • Price increases in August and December to preserve mar
Slide 8: Production Services
Production Services June 22 June 21 % Change Sales $7.86m $6.53m 20.4% EBIT $1.29m $0.86m 50.0% EBIT % 16.4% 13.2% Galvanising volume Trading Update • Record plant volumes • Internal volume strong in line with EzyStrut growth • External volume down slightly but revenue up • Zinc pricing peaked in Ap
Slide 9: Key initiatives
Key initiatives Automation • Improved production output from the Robotic Ladder Weld Cell, but commissioning issues remain with turn-key supplier • In-house managed Robotic General Weld Cell installed and commissioned successfully during the period • Additional automation projects ongoing Operationa
Slide 10: Inventory
Inventory • Steel and zinc costs increased • Increased project stock • More stock held due to global supply risks 10
Slide 11: Balance Sheet
Balance Sheet ASSETS $m June 2022 June 2021 June 2020 Cash & Investments 3.8 7.0 6.7 Receivables 16.9 14.2 10.1 In line with revenue growth Inventories 20.5 12.4 10.6 Property, Plant & Equipment 19.2 16.6 15.9 Land & Buildings revalued up by $1.9m Right-of-use Asset 5.2 6.1 4.7 Other 0.3 0.2 0.3 Tot
Slide 12: Dividends
Dividends FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 Interim 25c 15c 15c 9c 5c Final Dividend 35c 20c 13c 13c 7c Total Dividend 60c 35c 28c 22c 12c Franking 100% 100% 100% 100% 100% DRP suspended for final dividend Key Dates Record Date: 19 August 2022 Payment Date: 2 September 2022 12
Slide 13: Outlook
Outlook • Major infrastructure projects will continue to be supplied throughout FY23 • 2 current projects continue into FY23 • 2 new projects secured for supply commencing in FY23 • Day-to-day and small project markets expected to remain strong • Current orders on hand still very strong • Working ca
Slide 14: Company Overview
i Korvest |: Company Overview Me Moret
Slide 15: Industrial Products
Industrial Products • 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 • Local manufacture allows quick response time and ability to manufacture specials – a diff
Slide 16: Production Services
Production Services • 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 16
Slide 17: Australia's leading range of cable & pipe supports.
Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Quick turnaround galvanising of the largest, smallest, and most complex construction members. www.korvestgalvanisers.com.au 17