Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Shareholder Meeting (November 2023)
33 slides from Stealth's shareholder meeting presentation, Nov 24, 2023
Slide 1: 2023 Annual Shareholders Meeting
| 2023 Annual Shareholders Meeting Friday, November 24, 2023 An Australian Industrial Distribution Group © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 2: Today's Agenda
ANNUAL SHAREHOLDER S MEETING | 2 Today’s Agenda. Chair’s Address Group MD & CEO’s Address Business of the Meeting © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 3: Today's Speakers
ANNUAL SHAREHOLDERS MEETING | 3 Today’s Speakers. Chris Wharton AM Mike Arnold Chairman & Group Managing Director Non-Executive Director & CEO © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 4: Chair's Address
| 01 Chair’s Address Chris Wharton Chairman © 2 0 2 3 A G M S T E A L T H G L O B A L H O L D I NG S © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 5: © 2023 AGM STEALTH GLOBAL HOLDINGS
| 5 © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 6: Managing Director & CEO's Address
| 02 Managing Director & CEO’s Address Mike Arnold A closer look at Stealth’s full-year 2023 & beyond © 2 0 2 3 A G M S T E A L T H G L O B A L H O L D I NG S © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 7: Key takeaways
| 7 Key takeaways. Growth levers driven by rightsizing, new opportunities, and innovation Strong FY23 result, Favourable Industrial Long-term focus We have invested, another year of market characteristics and continue to growth continue invest for the Future © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 8: Increased Shareholder Return
| 8 Increased Shareholder Return. Board of Directors 12 Months to 21 November 2023 Capital growth Chris Wharton AM Chairman & → Non-Executive Director Share price: 1-year performance +62% Share price: 3-year performance +147% → Mike Arnold Company Data & Ratios Group Managing Director & CEO Market C
Slide 9: Our business today
| 9 Our business today © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 10: We are an omni-channel distributor, and a retailer, of industrial MRO products
| 10 We are an omni-channel distributor, and a retailer, of industrial MRO products. © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 11: Where we are today
| 11 Where we are today. ~ $115m 70 ~ 95% >$60m In Revenue Stores Of products we sell are Pipeline of organic Australia-wide Non-discretionary items new annual revenue © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 12: Enhanced go-to-market models
| 12 Enhanced go-to-market models. Stealth’s go-to-market models serve multiple channels and varied customer needs. 01 BUSINESS SOLUTIONS 02 RETAIL SOLUTIONS CUSTOMER TYPE CUSTOMER TYPE Large to mid-size to small businesses, professionals and Small individual retail consumers with less complex gover
Slide 13: Our facts
| 13 Our facts. NT 2 4 stores 70 # STORES Distribution Centres 8k 34k QLD 13 stores Customers Consumers Business Retail WA 203 3 17 stores NSW and ACT Employees Support 14 stores Offices SA 5 stores VIC 200k 1.3k 16 stores Instock Suppliers Products TAS 1store 18 Company Owned 52 Independent Retaile
Slide 14: Our Team
CHAIR’S ADDRESS | 1 4 Our Team. 41 TOTAL EMPLOYEES IN THE COMPANY → 203 2018 Today WOMEN IN THE COMPANY 39% 14 → 80 2023 2018 Today WOMEN IN SENIOR LEADERSHIP 50% 1 → 5 2018 Today 2023 © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 15: 2023 year in review
| 15 2023 year in review © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 16: Thank you to all our Team
Thank you to all our Team | 16 Pink Ribbon Morning Tea 2023 © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 17: FY23: Financial highlights
| 17 FY23: Financial highlights. Record growth results achieved across all key indicators $111.0m $32.6m $5.3m $2.4m $0.9m 0.91c 11.4% 8.3% 32.5% 71.4% 50% 51.7% REVENUE GROSS PROFIT EBITDA EBIT NPAT EPS 2022: $99.6m 2022: $30.1m 2022: $4.0m 2022: $1.4m 2021: $0.4m 2022: $0.6m 2021: $69.7m Increase
Slide 18: FY23: Balance sheet highlights
| 18 FY23: Balance sheet highlights. Strong cash generation, inventory turn and net debt reduction $14.8m $6.8m $1.4m $6.0m 29.4% 280 bps $5.9m 10 bps $5.6m $3.0m INVENTORY OPERATING CASH FLOW CAPEX FREE CASH FLOW NET DEBT REDUCTION 2023: 13.3% of Sales 2022: $0.9m 2023: 1.4% of Sales 2022: ($0.4m)
Slide 19: Segment trend comparisons
| 19 Segment trend comparisons. Sales per product segment Sales per customer segment Change 1H24 vs FY23 FY23 FY22 4 months 1H24 FY23 FY20 Resources + 0.7% 32.9% 34.1% 17% 14% 14% Retail & Trade - 0.9% 25.5% 25.0% Infrastructure & 13% 62% 14% 65% 66% + 0.2% 18.5% 18.2% 20% Construction 8% 7% Transpo
Slide 20: Highlights….year in review
| 20 Highlights….year in review. Year ended 30 June ($m)1 Actions taken Result Rightsizing benefits Improved cost structure Cost of Doing Business Closed (8) onsite stores - unprofitable contract • 24.3%, customers. • 24.7% 1H-23 Consolidation driving efficiencies. Financial benefits Strong sales, p
Slide 21: Trading Update 1H-2024
ANNUAL SHAREHOLDERS MEETING | 2 1 Trading Update 1H-2024 © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 22: Sales revenue growth half-year
F I N A N C I A L P E RF ORM A N C E | 2222 Sales revenue growth half-year. Half-by-Half ($m) CAGR +25.0% Continuing Operations Continued growth, while navigating macro challenges 58.6 55 - 59 RANGE 55.3 52.4 44.3 $39.0m after 4 months ending 31 October 38.0 30.8 28.7 28.4 1H20 2H20 1H21 2H21 1H22 2
Slide 23: Comparable per day metrics
| 23 After 4 months ending 31 October Comparable per day metrics. SALES → + 9.3% + 33.8% + 14.3% Per Day Per Order Per Employee Continued solid trading GROSS PROFIT → + 10.1% + 34.0% + 15.1% © 2023 AGM STEALTH GLOBAL HOLDINGS Sales are based on trading operations. Excludes Member Services revenue
Slide 24: 2023 & beyond: Looking ahead
| 2023 & Looking ahead. beyond © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 25: Our approach
| Our approach. Our corporate purpose To provide industrial products and solutions for every workplace. Our ambition Industry leadership position by being Australia’s company of choice for Industrial Supplies and Solutions. Our commitment Sustainable long-term growth, delivering shareholder value. ©
Slide 26: Our strategy places our network at the centre of our flexible fulfillment approach
| 26 Our strategy places our network at the centre of our flexible fulfillment approach, providing local and national convenience and speed of supply for our customers at a reduced fulfillment cost. © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 27: Strategic drivers
| 27 Strategic drivers. New Initiatives Short-Term Medium-Term Long-Term Strategic Intent • Loyalty Rewards’ club • Stores-as-hubs strategy Deliver transformational products and services • New superstore formats • Single online digital channel • Extended range through two (2) • Trade Talk TV and pod
Slide 28: Showcase: Two initiatives
ANNUAL SHAREHOLDERS MEETING | 2 8 Showcase Two initiatives © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 29: Initiative 1
| 29 Initiative 1. © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 30: Innovation
| 30 Innovation. Initiative 2. Expanding range and introducing Hire related products Consumables to sell Pictures courtesy of Milwaukee Tools © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 31: Innovation
| 31 Innovation. Expanding range to sell and introducing Hire related products Pictures courtesy of Milwaukee Tools © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 32: Key takeaways
| 32 Key takeaways. Growth levers driven by rightsizing, new opportunities, and innovation Strong FY23 result, Favourable Industrial Long-term focus We have invested, another year of market characteristics and continue to growth continue invest for the Future © 2023 AGM STEALTH GLOBAL HOLDINGS
Slide 33: Thank you
| 33 LAST PAGE Thank you AGM 24 November 2023 ASX Code : SGI © 2023 AGM STEALTH GLOBAL HOLDINGS
Stealth Group Holdings — Shareholder Meeting (November 2023) on 6ix