Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2022 Earnings Presentation
40 slides from Stealth's earnings presentation, Aug 30, 2022
Slide 1: FY22 Results Presentation
(ASX: SGI) FY22 RESULTS www.stealthgi.com PRESENTATION — An Australian Industrial Distribution Group 30 August 2022 STEALTH GLOBAL HOLDINGS (OUR GROUP OF COMPANIES)
Slide 2: Contents
Contents Group Performance Overview 6 We Are A Company Financial Performance 14 For Everyone…. Strategy 22 Outlook 28 We bring everyday industrial supplies and Appendices 32 solutions to everyone in a workplace. 2 STEALTH GLOBAL HOLDINGS COMPANY PRESENTATION
Slide 3: The company we have built
3 The company we have built We have grown a substantial distribution business…. With the ambition to be market leader. One of Australia’s largest distribution groups Large scale operator, strong competitive positioning, market advantage. ✓ combining the assets of company owned operations ✓ and indep
Slide 4: Company snapshot
4 Company snapshot We are an Industrial distribution group providing supplies and solutions for every workplace. April XX, H erz 201 ogen 9 aurac h Our Business Model combines Wide-Range Products and Supply Solutions We are a Supplier, Distributor, Retailer, Wholesaler, and Solutions provider. model
Slide 5: Our objective is to provide a satisfactory return to shareholders
5 Our objective is to provide a satisfactory return to shareholders Our ongoing commitment to shareholders is to build a thriving sustainable business for the future; 1 2 3 Creating Shareholder Value Creating a company that Developing deep Driving top-line and attracts customers of all relationships
Slide 6: Group Performance Overview
2. Group Performance Overview 6 STEALTH GLOBAL HOLDINGS COMPANY PRESENTATION
Slide 7: Executive Summary - Strategy remains and execution on track
7 Executive Summary - Strategy remains and execution on track Created one of Australia’s largest distribution groups combining the assets of company owned operations and independent retailer-operators. ✓ Transformational period: we built a materially larger, stronger, balanced and diversified qualit
Slide 8: Record consolidated financial performance
8 Record consolidated financial performance $101.8m 30.2% $6.7m $5.3m $2.4m $1.4m 46.1% 120bps 131.0% 71.0% 500% 133% Record Statutory Underlying NPAT Statutory NPAT Record Revenue Record Gross Profit Record Underlying EBITDA 2021: $3.1m 2021: $0.4m 2021: $0.6m 2021: $69.7m 2021: 29.0% EBITDA 2021:
Slide 9: Consolidated balance sheet
9 Consolidated balance sheet $7.5m $4.2m 1.3m $ $15.1m ($10.2m) 40.4% Purchase price Net capex spend Available cash Net assets Net debt Net Debt Gearing Ratio on acquisitions including intangibles and undrawn 2021: $13.8m 2021: ($4.2m) (Debt / Debt + Equity) 2021: $4.2m 2021: $1.6m working capital D
Slide 10: 2022 Highlights - Material expansion of scale setting us up for growth in FY23
10 2022 Highlights - Material expansion of scale setting us up for growth in FY23 and beyond Investing in our business and developing our portfolio to support long-term shareholder returns Acquisitions and Divestment Acquired 100% of Acquired 100% shares of Acquired assets Sold shareholding in BSA a
Slide 11: FY2022 Individual business performance highlights
11 FY2022 Individual business performance highlights Heatleys ISG and United Skipper C&L Tool Centre Transport Parts Safety & Industrial Tools Group • Record revenue in FY22 with 2H up • Record revenue up 24% up from • Record revenue and profit in FY22 • Good progress on integration and 10% on 1H de
Slide 12: Progress on successful M&A transactions creating long-term shareholder value
12 Progress on successful M&A transactions creating long-term shareholder value M&A FILTERS (acquired date) October 2018 March 2019 December 2020 August 2021 March 2022 May 2022 Sales growth FY22 P P P O P P Long-term secular trends P P P P P P High barriers to entry P P P P P P Quality market expos
Slide 13: FY2022 Group performance summary
13 FY2022 Group performance summary Year ended 30 June ($m) 2022 2021 Var Revenue 101.8 69.7 46.1% Revenue (excluding UK discontinued operations) 99.6 66.7 49.3% Gross Profit margin % 30.2 29.0 120bps EBITDA Underlying (excluding significant items) 6.7 2.9 131.0% EBITDA (including significant items)
Slide 14: Financial Performance
3. Financial Performance 14 STEALTH GLOBAL HOLDINGS COMPANY PRESENTATION
Slide 15: FY2022 Group results – P&L including discontinued operations
15 FY2022 Group results – P&L including discontinued operations $m FY221 FY211 Change % • FY22 a record financial year result for Group Revenue, EBITDA and NPAT achieved. Total revenue 101.8 69.7 +46% • Includes full year contribution from C&L Tool Centre (FY21: seven months), part- Underlying EBITD
Slide 16: FY2022 Sales and Diversification
16 FY2022 Sales and Diversification Excellent sales growth performance up +$32million to reach +$102million Product Segment Operating Segment +46% Industrial 60.0% Business Enterprise 83.8% Revenue growth Safety 15.6% Consumer 9.5% On FY21 Workplace 10.4% Member 6.7% Truck &Auto 14.0% +21% Growth fr
Slide 17: Financial History – Performance against prior periods
17 Financial History – Performance against prior periods Performance financial highlights against prior periods 1 2 2 Group Revenue ($mn) Gross Margin % Underlying EBITDA ($m) Underlying NPAT ($m) NPAT ($m) 6.7 3.0 1.5 1.4 35.0% 2.4 150.0 6.0 2.5 1.0 30.2% 2.0 0.6 101.8 29.0% 100.0 30.0% 4.0 0.4 26.
Slide 18: FY2022 Group results- Cash flow
18 FY2022 Group results- Cash flow • Operating cash flow of $0.88m. Investing cash flows of $4.28m were $0.77m higher than the Jun 22 Jun 21 Change on prior comparative. Specifically: $m PCP − $3.93m acquisition investment in Skipper Transport Parts excluding investment in inventory, warehousing, in
Slide 19: FY 2022 – Balance sheet
19 FY 2022 – Balance sheet $m 30 June 2022 30 Jun 2021 Inventory ($m) Working Capital • Increase in cash balance of $1.6m to $4.7m (FY21 Cash 4.7 3.1 included $0.6m BSA). 15.0 14.1 Receivables 18.1 11.4 10.7 • Growth in scale of operations has seen increases in 10.0 Inventory 14.1 10.7 7.9 working c
Slide 20: FY 2022 – Debt management
20 FY 2022 – Debt management Net Debt Composition Trend 12.00 FY22 FY21 FY20 $m $m $m Net debt 10.2 4.2 1.4 10.00 Gross debt 14.9 7.3 2.5 8.00 Cash and cash equivalents (4.7) (3.1) (1.1) 5.99 Net (debt)/cash 10.2 4.2 1.4 6.00 4.00 FY22 FY21 2.63 Debt metrics and ratios $m $m 2.00 4.21 Gearing ratio
Slide 21: FY 2022 – Returns, capital ratios and capitalisation
21 FY 2022 – Returns, capital ratios and capitalisation • Market capitalisation at 30 June 2022 down $0.5m (0.5 cents) from 30 June 21, however, as of 28 August 2022, market capitalisation is $13.5 million, FY22 FY21 Change on PCP increase of 29% on 30 June 2022. • Share price hit inter-year high of
Slide 22: Strategy
| STEALTHGLOBAL HOLDINGS LTD 4. Strategy
Slide 23: Our 7-pillar Strategic Framework
23 Our blueprint….focus on long-term value, consistent with our objective Our 7-pillar Strategic Framework 1 2 3 4 5 6 7 Organic and Balance across Decentralised Vertical Deploying and Distribution Strong M&A growth business organisation integration creating excellence sustainable segments and syner
Slide 24: Building a market leader through a plug & play distribution strategy
24 Building a market leader through a plug & play distribution strategy Product Offering Strategy Customer Centricity Multiple Channels Financial upside Broad Range Products model Distinctive Business Areas ü High repeat revenues in large Sales Teams market External & internal • Extensive product de
Slide 25: 2023 focus areas…key pillars to deliver on our growth strategy
25 2023 focus areas…key pillars to deliver on our growth strategy Priorities 1 2 3 4 5 6 Deploying and Continued optimisation Improve financial Deepen tier 1 supplier Simplify and Continue to build a creating synergies of store networks, performance (margin, consolidation to drive larger business –
Slide 26: Prioritisation of capital
26 Prioritisation of capital Capital allocations hierarchy 1 2 3 4 DISCIPLINED PERFORMANCE CASH SURPLUS CAPITAL INVESTMENT IMPROVEMENT GENERATION > Organic growth in value > Margin expansion > Increase Operating Cash > Growth projects – only generating areas Flow where it maximises > Enhance supply
Slide 27: Clear purpose-led growth strategy
27 Clear purpose-led growth strategy We have a clear purpose–led strategy for long-term shareholder value. This has been consistent since our listing on the ASX in October 2018. We have since built a large distribution platform with significant opportunity pipeline. Our focus has been to build a sca
Slide 28: Outlook
| STEALTHGLOBAL HOLDINGS LTD 5. Outlook
Slide 29: Current operating environment
29 Current operating environment • Transformational FY22 period – integrations, synergy benefits and optimisation are yet to fully materialise and is key focus in FY23 and FY24. • We are encouraged by trading momentum in the first 7 weeks of FY23. Trading conditions remained solid, though operations
Slide 30: Outlook
30 Outlook • Stealth has developed a large distribution network and stronger quality portfolio with access to a significantly larger customer and consumer base. Growth is expected across all businesses, customers and markets. • Synergies from FY22 acquisitions remain materially available. Expected t
Slide 31: Disclaimer
31 Disclaimer This document has been prepared by Stealth Global Holdings Ltd (the Company) and is provided for information purposes only. or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited Party This document does not consti
Slide 32: Appendices
H STEALTH HOLDINGS LTD 6. Appendices
Slide 33: Who we are
33 Who we are Stealth Global Holdings (SGI) with 2022 revenue of more than $100 million, is an ASX listed Industrial distribution company, focused on delivering the wide-range distribution of products and related services and supply solutions to Business, Trade, Retail, and to Independent Retailers
Slide 34: Board and Management
34 Board and Management An experienced and deeply committed team Board of Directors Chris Wharton AM Mike Arnold John Groppoli Simon Poidevin AM OAM Chairman & Group Managing Director Non-Executive Director & Non-Executive Director Non-Executive Director & CEO General Counsel Management Mike ARNOLD
Slide 35: Addressable market information
35 Addressable market information Australian Industry Retail Hardware & Building Supplies Retailing Online Hardware & Tools Sales (2) Hardware Wholesaling (3) & Wholesale (1) Tools, gardening, paint Tools, fasteners, building supplies DIY, tools, gardening, plumbing, paint Wesfarmers, Metcash Bunnin
Slide 36: Our resources and locations
36 Our resources and locations Today, Stealth is many things to many different customers… a supplier, a wholesaler, a retailer, a services company, solutions provider, a supply chain company, and more generally a distributor of industrial supplies. 74 Total Branch and Store Locations Geographical Co
Slide 37: Growing scale since September 2018
37 Growing scale since September 2018 Since October 2018, we continued to invest prudently to build size, scale, range, revenue and operating leverage Annual Sales Store Locations Products in-stock Customers Employees Suppliers ~8,000 $100 + 74 400,000 250+ ~2,500 million 34,000 consumers 24 1 2K 20
Slide 38: Product range and brand sample - partnering with the best brands
38 Product range and brand sample - partnering with the best brands 38 STEALTH GLOBAL HOLDINGS COMPANY PRESENTATION
Slide 39: The Stealth distribution system
39 The Stealth distribution system SUPPLIERS 1 ~360 Tier 1 supplier partners worldwide ~2,500 Indirect Suppliers worldwide Sourcing DISTRIBUTION The company sources, Distribution Centres and Fulfilment Hubs 2 stocks, markets, sells and distributes a wide-range of Fulfillment industrial products and
Slide 40: Last Page
STEALTH GLOBAL (GROUP) LAST PAGE 40 STEALTH GLOBAL HOLDINGS COMPANY PRESENTATION
Stealth Group Holdings — FY2022 Earnings Presentation on 6ix