Slide 1: FY19 Full Year Results Presentation
FY19 Full Year Results Presentation August 2019 Delivering innovative industrial solutions and services ASX: CYG
Slide 2: Corporate Snapshot – August 2019
Corporate Snapshot – August 2019 Key Market Metrics SHARE PRICE SHARES ON MARKET NET DEBT 22 August 2019 ISSUE CAPITALISATION 30 June 2019 $ 0.92 89.7M $ 82.5M $ 4.1M PRO-FORMA ENTERPRISE EV / FY19 PRO- FY19 REVENUE VALUE FORMA REVENUE $ 233.8 $ 86.6M $ 0.37x Substantial Shareholders 30.8% 8.1% 6.6%
Slide 3: Financial Highlights
Financial Highlights Coventry Group’s trading performance has Strong FY19 sales growth +20.4% including acquisitions improved significantly over FY19. • Excluding acquisitions FY19 sales growth +7.0% which represents solid organic growth – momentum is building as our value 39.8% proposition improves
Slide 4: Business Overview
Business Overview We supply a range of fastening systems, industrial products and hydraulics, lubrication, fire suppression and refueling systems, cabinet hardware systems and other products. Trade Distribution (TD) Fluid Systems (FS) Comprises Konnect and Artia Comprises Cooper Fluid Systems (CFS)
Slide 5: Vision / Strategic Direction
Vision / Strategic Direction Our vision is to create a leading Industrial Supply and Services Group achieving sustainable profitable growth through sensible organic development and acquisitions. EXCITING OPPORTUNITY TO BUILD A LEADING SCALED INDUSTRIAL SUPPLY GROUP As the Group has The Board and A c
Slide 6: Key People
Key People NEIL CATHIE ROBERT BULLUSS ANDREW NISBET JAMES TODD ROD JACKSON Independent Non- CEO & Managing Independent Non- Independent Non- CFO Executive Chairman Director Executive Director Executive Director 27 year career at Australia’s Appointed CEO in May 2017 Appointed in September Appointed
Slide 7: Our Story
Our Story 1929 _ 1967 _ 1984 _ 1929 1965 1966 1983 2000 Mr Ronald James Kyle The business prospers. Listed on Acquires a number of Numerous acquisitions including acquires a car dealership the ASX. businesses: diversification into a number of Appointed both Ford and Holden from a liquidator and Fast
Slide 8: Detailed FY19 Financial Results
Detailed FY19 Financial Results • Sales +20.4% (including acquisitions) FY19 FY19 including Sales +7.0% excluding acquisitions ($m) excluding FY18 acquisitions acquisitions Sales of $202.3m (FY18: $168.1m) Revenue from sale of Excellent growth in CFS and KANZ 202.3 179.8 168.1 goods KAA sale
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Net debt position at 30 June 2019 of $4.1m ($m) Jun-17 Jun-18 Jun-19 Cash & cash equivalents 5.1 5.0 5.3 • ScotPac facility increased to $25.0m Inventories 49.3 46.4 59.9 Trade and other receivables 29.3 30.5 39.5 • In advanced discussions with major banks to secure a T
Slide 10: Corporate Update
Corporate Update • Ken Lam appointed as CIO • IT function relocated to Melbourne. New qualified and experienced IT team in place Digital customer engagement project including internet ordering, mobility, CRM and POS underway Employee engagement net promoter score Business optimization project co
Slide 11: Trade Distribution – Business Overview
Trade Distribution – Business Overview Largest fastener trade distribution specialist in Australia and New Zealand Why use a specialist fastener distributor? • The suitability of a fastener is highly dependent on its application. • The selection process must establish the strength required (material
Slide 12: Trade Distribution – Branch & DC Network
Trade Distribution – Branch & DC Network • New branches opened in Australia (Kalgoorlie) and New Zealand (Rotorua and Silverdale) • Plans for two new branches in H1 FY20 • Re-configuring Pinkenba branch applying Nubco store merchandising, marketing and promotion concepts • Pop-up store concept being
Slide 13: Trade Distribution – Financial Overview
Trade Distribution – Financial Overview FY19 including FY19 excluding ($m) FY18 acquisitions acquisitions Revenue from sale of goods 119.1 104.2 102.6 EBITDA 3.3 0.8 -2.5 Konnect and Artia New Zealand FY19 sales growth +13.3% • EBITDA improvement of 16.0% FY19 Konnect and Artia Australia sales in li
Slide 14: KAA – Key Strategic Initiatives
KAA – Key Strategic Initiatives Drive profitable sales growth • Significant focus on improving service levels in Konnect Australia and Artia - green shoots emerging with July sales growth of 8.4% on the PCP. • Improved capability is opening opportunities in large construction, infrastructure and min
Slide 15: Fluid Systems – Business Overview
Fluid Systems – Business Overview Very well run division with a great management team in place • In FY19 the division grew its sales by 27.3% and EBITDA by a very strong 64.7%. • Operating leverage is substantial with 18% of incremental revenue dropping through to the Contribution line (i.e. EBITDA
Slide 16: Fluid Systems – Branch Network
Fluid Systems – Branch Network • Relocating and integrating Torque and Cooper Fluid Systems Adelaide operations into a better quality customized facility in 2020. • Relocating Hunter Valley branch to a larger custom built facility. • Relocated Newman branch to a larger facility. • Taking additional
Slide 17: Fluid Systems – Financial Overview
Fluid Systems – Financial Overview FY19 including FY19 excluding ($m) FY18 acquisitions acquisitions Revenue from sale of goods 83.3 75.6 65.4 EBITDA 8.8 7.4 5.5 Fluid Systems sales growth +27.3% • EBITDA improvement of 58.7% FY19. Cooper Fluid Systems sales growth +15.7% • EBITDA improvement of 34.
Slide 18: Acquisitions
Acquisitions We are actively assessing acquisition opportunities Focus on new geographies Profitable & cash flow Sensible strategic acquisitions and industries positive • The Group will take a highly disciplined approach to acquisitions with strict criteria. • Team in place who have a very successfu
Slide 19: Outlook
Outlook The outlook is positive - the Group expects a significant improvement in financial performance in FY20. • The business has substantial operating leverage as sales grow. There are limited additional operating costs required to support sales growth – the majority of incremental gross margin sh
Slide 20: Peer Comparisons
Peer Comparisons Coventry Group trades at a significant discount to comparable trade distribution companies Coventry Reece Supply Bapcor Fastenal Fastenal Sales (US$m) Group Networks 5,000.0 4,500.0 Market A$82.5m A$5.7bn A$164m A$1.78bn US$17.5bn 4,000.0 capitalisation 3,500.0 Enterprise 3,000.0 A$
Slide 21: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by This presentation may include forward-looking statements. Although the Coventry Group Ltd (the Company) and may contain information that has Company bel
Slide 22: ASX: CYG
\) Coventry Group Ltd & Coventry Group Ltd