Supply Network Limited · ASX:SNL
Supply Network — Investor Presentation (March 2015)
10 slides from Supply Network's investor presentation, Mar 18, 2015
Slide 1: Multispares
A // MULTISPARES MULTISPARES
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Supply Network Limited (SNL). The information in this presentation is current as at 18 March 2015. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to an
Slide 3: The Management Team
The Management Team For personal use only • Hands-on senior management team with extensive experience in the sourcing, distribution and sale of replacement parts for truck and bus • Flat structure supporting quick decision making • Small and stable Board consisting of two Executive and two Non-Execu
Slide 4: The Truck Parts Market
The Truck Parts Market For personal use only • Estimated market size >$1bn p.a. • Large range of vehicle models in a relatively small and geographically and climatically diverse market • Vehicles typically remain in service for 30 years • Average vehicle life relatively stable • Fragmented and dynam
Slide 5: The Bus Parts Market
The Bus Parts Market For personal use only • Estimated market size >$100m p.a. • Dominated by route services in major urban centres and a narrower range of vehicle models • Vehicles typically remain in service for 25 years • The majority of route services now operated under contracts with a term of
Slide 6: Multispares' Competitive Strengths
Multispares’ Competitive Strengths For personal use only • Large and effective information base including in-house catalogues and product demand patterns • Broad product range covering most truck and bus models • Strong “first tier” supplier support with competitive global pricing and strategic part
Slide 7: The Multispares Strategy
The Multispares Strategy For personal use only • Build a diversified business connected to all parts of the economy selling SERVICE based on: Reliable parts interpretation and problem solving Consolidation of requirements Quick delivery of parts, and Consistent quality • To improve the value
Slide 8: Current Market Trends
Current Market Trends For personal use only • Total market revenue for replacement parts is estimated to be growing at an average rate of ~5% p.a. • Industry consolidation is mainly driven by consolidation of the vehicle manufacturers, who generally hold the largest share of the replacement parts ma
Slide 9: The Financial Year Ahead
The Financial Year Ahead For personal use only • Continued competitive tension in large fleet business • Consolidation of significant growth in the Bus Market • Transition to greater emphasis on growth in the Truck Market where there is significant long term potential • Separation of the large Sydne
Slide 10: Long Term Plans
Long Term Plans For personal use only • Continued focus on realising organic growth opportunities around the current business model based in Australia and New Zealand • 3-year revenue target of $100m at 10% EBIT 0 • Conservative gearing • Dividend payout ratio maintained at 60-70% of earnings