Global Industrial Company · NYSE:GIC
Global Industrial — Q1 2025 Earnings Presentation
22 slides from Global Industrial's earnings presentation, 2025
Slide 1: Global Industrial Q1 2025
GLOBAL INDUSTRIAL We can supply that. Q1 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
Slide 3: Leading Player in Industrial Distribution Market
LEADING PLAYER IN INDUSTRIAL DISTRIBUTION MARKET Sales 2024 $1.32B 7 Distribution centers in U.S. and Canada Storage Furniture Janitorial & Facility Carts & Trucks HVAC & Fans Safety & Security & Shelving & Decor Maintenance Experts in +40% 1,800+ Big Bulky Employees (600+ Customer Facing) and Exclu
Slide 4: Leading Player in Industrial Distribution
LEADING PLAYER IN INDUSTRIAL DISTRIBUTION 1 2 3 4 Business Uniquely Powerful Customer Strong Financial Foundation Positioned Growth Model Profile 4
Slide 5: Customer Centric Strategy the Foundation for Our Growth
CUSTOMER CENTRIC STRATEGY THE FOUNDATION FOR OUR GROWTH Drive customer growth by being the Supplier of Choice Revenue & Industrial Frictionless Digital Equipment Operational Customer Growth Customer Enablement & Supplies Excellence Deliver a unique and Experience Drive E-procurement Superior quality
Slide 6: Building on a Broad Customer Base in Large Fragmented Market
BUILDING ON A BROAD CUSTOMER BASE IN LARGE FRAGMENTED MARKET Broad Customer Base • Manufacturing • Hospitality • Retail / Wholesale Trade • Educational • Construction • Transportation & Warehousing • Health Care • Public Administration • Professional, Scientific >400,000 customers No customer >2% of
Slide 7: Robust Product Offering & Expertise Provides Multiple Growth Opportunities
ROBUST PRODUCT OFFERING & EXPERTISE PROVIDES MULTIPLE GROWTH OPPORTUNITIES: 10 Top Categories 1. Storage & 2. Material 3. Janitorial & Shelving Handling Maintenance Healthcare Recent product 4. Safety & 5. Furniture 7. Workbench & line expansion 6. HVAC Shop Desks Security & Decor & Fans Vehicles 9.
Slide 8: Private Label Brand – Made to Exceed
PRIVATE LABEL BRAND – MADE TO EXCEEDTM 15-20% ~16% “Extra +40% Premium CAGR over 5 years Chip” of Sales is fastest growing in the cookie margin vs. National Brands sourcing channel differentiation 8
Slide 9: Extra Chip
“Extra Chip” ~50% Portable Power Bolted Teardrop Air Scrubber & in the cookie Station of Organic Sales Pallet Racking Negative Air Machine differentiation Electric Utility Electric Stock Digital Wood Vehicle Chaser Laminate Lockers 9
Slide 10: Business Foundation Has Generated Strong Track Record of Growth and Margin Expansion
BUSINESS FOUNDATION HAS GENERATED A STRONG TRACK RECORD OF GROWTH AND MARGIN EXPANSION Revenue* 6.3% Operating Margin* ($M) CAGR (%) $1,274 $1,316 $1,166 8.2% 8.3% 9.0% $1,029 $1,063 7.6% 6.1% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 *2023 Reflects Impact of Indoff Acquisition 10
Slide 11: Leading Player in Industrial Distribution
LEADING PLAYER IN INDUSTRIAL DISTRIBUTION 1 2 3 4 Business Uniquely Powerful Customer Strong Financial Foundation Positioned Growth Model Profile 11
Slide 12: Evolving Industry Trends Play to Our Strengths
EVOLVING INDUSTRY TRENDS PLAY TO OUR STRENGTHS Trends Affecting Industrial Distributors Well Positioned to Meet Industry Challenges E-commerce expansion: E-commerce adoption ~60% e-commerce accelerating transactions* Amazon effect Sophisticated increasing customer digital & multi-channel expectation
Slide 13: What Sets Global Industrial Apart: Why We Win
WHAT SETS GLOBAL INDUSTRIAL APART: WHY WE WIN Thousands of Smaller Large National Differentiator Distributors Players Strong capabilities in big and bulky items Extensive Exclusive Brands Robust e-commerce functionality Powerful digital marketing funnel – asset light Project management expertise 13
Slide 14: Leading Player in Industrial Distribution
LEADING PLAYER IN INDUSTRIAL DISTRIBUTION 1 2 3 4 Business Uniquely Powerful Customer Strong Financial Foundation Positioned Growth Model Profile 14
Slide 15: Powerful Customer Acquisition, Growth, & Retention Model
POWERFUL CUSTOMER ACQUISITION, GROWTH, & RETENTION MODEL 1 2 Build Customer Digital and GPO Customer Focused Culture Acquisition Funnel 5 3 Result: Growth in Customer Campaigns to Sales and Margins Retain and Build Loyalty 4 Grow Share of Wallet and Category Expansion 15
Slide 16: Go To Market Strategy: Expanding Channels and Opportunities
GO TO MARKET STRATEGY: EXPANDING CHANNELS AND OPPORTUNITIES One to One • ~200 Inside Sales Representative • Subject Matter Expertise Ecommerce • Full Account Management Tools • Primary Acquisition Funnel • EDI / Punchout / CXML Outside Sales Group Purchasing • Project Management Organizations • Engi
Slide 17: Leading Player in Industrial Distribution
LEADING PLAYER IN INDUSTRIAL DISTRIBUTION 1 2 3 4 Business Uniquely Powerful Customer Strong Financial Foundation Positioned Growth Model Profile 17
Slide 18: Capital Light, Strong Free Cash Flow Business
CAPITAL LIGHT, STRONG FREE CASH FLOW BUSINESS Strong Balance Sheet/ Cash From Operations ($M) High WC Utilization (Q1 2025) ($M) $125 Debt $0.0M $100 Cash and equivalents $39.0M $75 Inventory turns* 5.0X $50 AR DSO* ~38 $25 AP DPO* ~49 $0 2020 2021 2022 2023 2024 *Working Capital Metrics based upon
Slide 19: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES 1 Invest for Growth 2 Strategic M&A 3 Return Capital to Shareholders • E-commerce capabilities • Acquisitions that • Continued dividend fit strategy growth over time • Customer Acquisition • Synergistic, leverage • Special dividends • Product selection Exclusive Brands,
Slide 20: Strong Return of Capital to Shareholders
STRONG RETURN OF CAPITAL TO SHAREHOLDERS Quarterly Dividends Per Share Dividends • $650+ million in dividends since Jan. 2018 including 6 special dividends 13.1% $0.26 • Current payout ratio ~63% CAGR $0.25 $0.20 $0.18 $0.16 $0.14 Share Repurchases $0.12 $0.11 • 625,000 shares repurchased since 2019
Slide 21: Financial Roadmap
FINANCIAL ROADMAP1 Drive Optimize Revenue Growth Profitability Performance ~500 bps Faster Growth Than Operating Income Maximize Total Market Annually Growth Shareholder Return 1 Organic and M&A 21
Slide 22: Global Industrial Q1 2025
GLOBAL INDUSTRIAL We can supply that. Q1 2025
Global Industrial Company — Q1 2025 Earnings Presentation on 6ix