Slide 1: a Cy
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Slide 2: Results Summary
RESULTS SUMMARY »Net profit before tax and property sales up 15% to $10.6M. }Interim dividend of 18 cents fully franked. & Coventry Group Lid
Slide 3: Financial Overview
FINANCIAL OVERVIEW Six Months Ended 31 December 31 December % $M 2005 2604 Change Sales 243.4 238.4 2t EBIT (before property sales) 11.6 9.9 7 t Tax 3.2 29 Net Profit After Tax (before minority interest) 7.3 10.0 27 } EPS - cents 20.1 27.9 2a 4 & Coventry Group Lid
Slide 4: Financial Overview cont'd
FINANCIAL OVERVIEW cont'd [ Six Months Ended 31 December 31 December 2005 * 2004 * | EBIT/Sales 4.8% 4.1% Return on Capital Employed (EBIT/equity + net debt) 10.1% 0.4% Return on Equity (NPAT/equity) 8.6% 7.4% * Ratios are annualised where appropriate and are before property sales. & Coventry Group
Slide 5: Cash Flow and Gearing
CASH FLOW AND GEARING Six Months Ended 31 December 31 December $M 2005 2004 Operating Cash Flow 03 2.9 | Closing Net Interest Bearing Debt 59.0 32.4 Closing Equity 171.2 178.2 Net Debt/Equity 34.5% 18.2% interest Cover 10.8 times 14.3 times & Coventry Group Lid
Slide 6: Cash Flow and Gearing cont'd
CASH FLOW AND GEARING cont'd > Operating cash flow impacted by higher stock holdings at automotive branches and greater level of industrial stock to avoid risk of supply shortages from Asia. > Increase in net debt due to payment of special dividend, acquisitions by the industrial segment, and capita
Slide 7: Dividends
DIVIDENDS Six Months Ended 31 December 31 December 2005 2004 EPS — cents 20.1 17.3* Dividend per share - cents 18.0 18.0 Franking 100% 400% * Excluding property sales » Current policy is to distribute high proportion of profits. > Dividend reinvestment plan remains activated for the interim dividend
Slide 8: Capital Employed
CAPITAL EMPLOYED Six Months Ended 31 December 34 December 2005 2004 Capital expenditure $41.1M $4.9M Stock turns 3.13 3,55 Days sales in trade debtors 54.2 51.8 @ Coventry Group Lid
Slide 9: Capital Employed cont'd
CAPITAL EMPLOYED cont'd > Increase in capital expenditure due to $6.9M spent on new computer system. » Stock turns impacted by higher stock holdings at automotive branches, greater level of safety stock of industrial products, and December acquisition of Cornall Merchandise. 9 & Coventry Group Lid
Slide 10: Automotive
10 AUTOMOTIVE Six Months Ended 34 December 31 December 2005 2004 Sales 136.7 137.0 | EBIT * 1.9 0.1 4 EBIT/Sales Margin * 14% 0.1% Capital Employed 86.0 79.6 | Return on Capital Employed 45% 0.3% * Prior comparative period is after adjustmert for allocation of information services and marketing supp
Slide 11: Automotive cont'd
AUTOMOTIVE cont’d » 19% increase in EBIT, excluding non-recurring items from prior comparative period. » Negative contribution from NSW and QLD of $1.3M, down from $2.5M. » Improved profit result from SA (under new management), despite lower sales. Initiatives in place to recoup lost sales. » Modest
Slide 12: Industrial
12 INDUSTRIAL MILI LLL Six Months Ended 31 December 31 December $M 2005 2004 Change Sales 93.7 90.5 3.5 f EBIT * 8.9 8.9 - | EBIT/Sales Margin * 9.4% 9.9% Capital Employed 89.5 72.1 Return on Capital Employed 19.8% 24.8% * Prior comparative period is after adjustment for allocation of information se
Slide 13: Industrial cont'd
13 INDUSTRIAL cont'd >Strong results achieved from WA and QLD, and improved results recorded in SA and NSW. » Disappointing results recorded in VIC due to increased competition, and in NZ due to a weaker economy which particularly affected construction demand. »State distribution centres were reloca
Slide 14: Bitumen
ta BITUMEN LS MMMM LLAMA LAL ALD ARAL APSA LLSAAAILEE Six Months Ended 31 December 31 December % $M 2005 2004 Change Sales 76 63 20.6 f EBIT 07 0.4 75.0 t EBIT/Sales Margin 8.7% 6.6% Capital Employed 47 5.0 Return on Capital Employed 28.1% 16.7% & Coventry Group Lid
Slide 15: Bitumen cont'd
BITUMEN cont'd Increased asphalt volumes through successful local council tendering underpinned the improved result. > Higher oil prices and mild weather reduced demand for emulsion. 16 & Caventry Group Lad
Slide 16: Gaskets
GASKETS Six Months Ended 31 December 31 December % $M 2005 2004 Change Sales 6.0 6.7 10.4 uy EBIT 0.8 1.0 20.0 4 EBIT/Sales Margin 12.8% 14.3% Capital Employed 10.5 8.2 Return on Capital Employed 14.8% 23.2% »Weaker demand from distributors due to softer trade market led to reduced sales. 16 @ Coven
Slide 17: Automotive Strategy
AUTOMOTIVE STRATEGY » Major restructuring: *One Automotive business *Streamlining structures *Centralised management *Control *Consistency *Cost >Build trade and expand retail. » Merchandising and marketing. > Inventory management. » Logistics and warehousing. » Project Essex ~ new WA warehouse and
Slide 18: Industrial Strategy
INDUSTRIAL STRATEGY i Nila » Build cabinet and furniture hardware market. >» Supply chain. »DC and branch network improvement programme. >» New products. 8 & coventry Group Ltd
Slide 19: Industrial Strategy cont'd
INDUSTRIAL STRATEGY cont'd Cornall / Howard Silvers Cabinet & Furniture Hardware Integration on track. » Businesses operating as planned. » Howard Silvers move to Oracle in April 06 and Cornail in 15! half of 07. » Scope for further growth. 9 & Coventry Group Ltd
Slide 20: Bitumen Strategy
BITUMEN STRATEGY » Streamline operations. »Build organic sales. » Expand customer segments. 2 & Coventry Group Lid
Slide 21: Gasket Strategy
GASKET STRATEGY » Grow market share in the automotive market. » Expand non-automotive applications. » Continue to improve production efficiencies. a & Coventry Group Lid
Slide 22: Project Compass - Oracle ERP
PROJECT COMPASS - ORACLE ERP » Finance on line in November 2005: *No major issues »Fasteners Western Australia - December 2005: *Oracle technical issues °Ail major issues resolved » System roll out over the next 15 months. 2 @ Coventry Group Lid
Slide 23: Company Strategy
COMPANY STRATEGY SIU OLS SCARCE » Focused distribution company. »Leadership in key market segments — 1% or 274, » Australia and New Zealand focus. » Leverage core competencies and infrastructure of the Company. > Strength in branding. i } i i i 23 ® Coventry Group Lid
Slide 24: Company Strategy Platform
COMPANY STRATEGY PLATFORM » Core information technology platform. »Key competencies are developing. »Coventry Group Team development. » Supply chain: “Sourcing and inventory management »Continuous improvement culture. 24 ) Coventry Group Lid
Slide 25: Outlook
ra) OUTLOOK » Expect similar trading conditions. » Automotive to continue to improve. > Industrial is expected to be steady. » Bitumen to continue to improve. » Gaskets is expected to be steady. @ Coventry Group Ltd