Slide 1: Repositioning the Portfolio
Coventry Group Ltd For personal use only ABN 37 008 670 102 “REPOSITIONING THE PORTFOLIO” Roger Flynn Tony Hockley Executive Chairman Chief Financial Officer Market Update March 2012
Slide 2: The Six Months Trading Results
The Six Months Trading Results For personal use only A STORY IN 2 PARTS – REFLECTIVE OF “TWO SPEED ECONOMY” • Strong results for fluids and gaskets • Poor result for fasteners and hardware • Resource driven demand in Western Australia and north Queensland very good for fluids and fastener businesses
Slide 3: The Commitment to Shareholders
The Commitment to Shareholders For personal use only STRONG RETURNS FOR CONTINUING AND EXITING SHAREHOLDERS • Total of $10M cash returned to shareholders during period by a combination of dividends ($6.3M) and buy back (to exiting shareholders of $3.7M) • NTA/share up 9% to $3.67 • EPS for total Gro
Slide 4: The Commitment to Shareholders
The Commitment to Shareholders For personal use only NTA HAS GROWN OVER THE LAST 2.5 YEARS WHILST REGROWING DIVIDENDS $/Share Cumulative Div Paid Page 4
Slide 5: Pursuing the Announced Strategy
Pursuing the Announced Strategy For personal use only THE ANNOUNCED STRATEGY EXECUTED TO PLAN • Exit from Auto achieved successfully/smoothly Profit from disposal $4.8M including $4.5M for sale of auto business • 15 properties sold at a profit ($9.0M), 3 contracted for sale in 2012, 1 yet to be sold
Slide 6: The Continuing Businesses
The Continuing Businesses For personal use only COVENTRY FASTENERS & HPF ARE STRONG LEADING PLAYERS WELL POSITIONED FOR CYCLICAL RECOVERY • Geographic Markets : All states of Australia (QLD/WA largest), New Zealand • Divisional Office : Perth, (54 branches) • Dimensions : Sales $130m Employees 500 E
Slide 7: The Continuing Businesses (Cont'd): Cooper Fluid Systems
The Continuing Businesses (Cont’d) For personal use only COOPER FLUID SYSTEMS IS WELL LED & WELL PLACED TO CONTINUE GROWING • Geographic Markets : WA, QLD, SA and small amount of export • Divisional Office : Brisbane, (7 branches) • Dimensions : Sales $80m Employees 130 EBIT 15% Cap Empl $20m • Key
Slide 8: The Continuing Businesses (Cont'd): Artia
The Continuing Businesses (Cont’d) For personal use only ARTIA (CABINET FURNITURE AND HARDWARE) HAS A SMALL MARKET SHARE WITH GROWTH POTENTIAL • Geographic Markets : All states of Australia and New Zealand • Divisional Office : Melbourne, (8 branches) • Dimensions : Sales $26m Employees 105 EBIT is
Slide 9: The Continuing Businesses (Cont'd): Gaskets
The Continuing Businesses (Cont’d) For personal use only GASKETS IS THE MARKET LEADER & PERFORMING WELL • Geographic Markets : Australia and New Zealand • Divisional Office : Melbourne, (2 branches) • Dimensions : Sales $14m Employees 60 EBIT strong (23%) Cap Empl $11m • Key Markets : Auto repairers
Slide 10: Stocktake of Coventrys Key Strengths
Stocktake of Coventrys Key Strengths For personal use only SKILLS WE WILL LOOK TO LEVERAGE • Good understanding of Australian and New Zealand industrial “landscape” • Good manager of complex transaction driven businesses ie. large numbers of: – employees – customers – suppliers – SKU’s – locations/d
Slide 11: Pursuing the Strategy
Pursuing the Strategy For personal use only WE WILL CONTINUE TO FOLLOW A DISCIPLINED PATH OF SHAREHOLDER VALUE CREATION Coventry Group has $50M in cash and thus the resources to: • undertake capital management initiatives – the Group at 31 December 2011 has $15.5M in franking credits ie. enough to f
Slide 12: Pursuing the Strategy (Continued)
Pursuing the Strategy (Continued) For personal use only • The Group has been actively seeking value enhancing investment opportunities for some time but with increased emphasis in the last 6 months. • In general terms vendor price expectations are now more moderate. However • Board remains disciplin