Korvest Ltd. · ASX:KOV
Korvest — Investor Presentation (March 2018)
17 slides from Korvest's investor presentation, Mar 22, 2018
Slide 1: Presentation to Taylor Collison
Presentation to Taylor Collison March 2018 For personal use only Chris Hartwig Steven McGregor
Slide 2: Agenda
For personal use only Agenda • Overview of Korvest • Korvest Strategy • Outlook • Company Overview 2
Slide 3: Overview of Korvest
Overview of Korvest For personal use only • Korvest (ASX:KOV) provides cable and pipe supports, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services • Manufacturing, fabrication and galvanising in Adelaide • Power Step and Titan Technologies in Brisbane •
Slide 4: FY18 Turnaround
FY18 Turnaround For personal use only FY18 (1H) FY17 (2H) FY17 (1H) Sales $29.6m $23.5m $21.3m EBIT $0.8m ($0.8m) ($1.5m) Operating cashflow $0.3m ($0.2m) ($0.2m) EPS 4.9c (5.0c) (9.4c) Dividend per share 5c 3c 10c • FY18 1H result just above guidance range • Increased activity • Margin improvement
Slide 5: Korvest Strategy
For personal use only Korvest Strategy Operational improvement Experienced management team STABLE FOUNDATION Working capital management Return to profitability Pricing and margin management Improve customer experience PROFITABILITY Flexible supply chain Product cost reduction & design Operational ef
Slide 6: Stable Foundation
Stable Foundation For personal use only • Operational improvement – Freight management – Factory efficiency – Energy consumption • Management expertise – Accountability – Lower cost • Working capital management • Profitability – Focus on key business drivers – Effective price rises – Pipeline manage
Slide 7: Profitability
Profitability For personal use only • Pricing and margin management – Daily focus & controls – Index for key cost inputs – Market leader with pricing • Improve customer experience – Right stock in the right place – Delivery in full on time (DIFOT) • Flexible supply chain – Make versus Buy model • Pr
Slide 8: Operational Excellence
Operational Excellence For personal use only • Operational efficiency – DIFOT - Factory – DIFOT - Branch to customer – Branch network efficiency & processes • Factory improvement – Efficiency and productivity – Process improvement – Agility – Automation – Capital investment – Energy consumption • Wo
Slide 9: Growth - Core
Growth - Core For personal use only • Product design – In-house engineering – Customer driven – Fire rated • Product range expansion – Fire rated – Engineered solutions – Other • Market share AU/NZ – Pipeline management – Sales force management – Customer relationships 9
Slide 10: Growth – Future Options
Growth – Future Options For personal use only • Adjacent markets – Servicing same customer base & channels to market – Wide range of opportunities • Market consolidation – Fragmented market – Excess capacity, but tightening • Core competencies – Metal manufacturing & distribution – Engineered soluti
Slide 11: Outlook
Outlook For personal use only • Australian infrastructure investment forecasts remain strong over the short to medium term • Well positioned to capitalise on future demand with Korvest’s suite of products and customised solutions • Improved day-to-day activity • Major input costs remain at high leve
Slide 12: Company Overview
For personal use only Company Overview 12
Slide 13: Industrial Products: Cable and pipe supports
Industrial Products For personal use only • Cable and pipe supports • Market leader in cable supports • Manufacturing facility in Kilburn, SA • Overseas supply chain • Sells to EPCMs, Wholesalers, and direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 14: Industrial Products: Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa 14
Slide 15: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 15
Slide 16: Production Services
Production Services For personal use only • Longest galvanising kettle in Australia (14m) • South Australia’s only centrifuge plant (national market) • Predominantly structural work for SA projects or fabrications • In-house work for EzyStrut 16
Slide 17: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Safety Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for any industry. www.titantools.com.au Quick turnaround galvanising of the largest, smallest, and mos