Coventry Group Limited · ASX:CYG
Coventry — Merger or Acquisition (November 2005)
11 slides from Coventry's merger presentation, Nov 15, 2005
Slide 1: Cabinet & Furniture Hardware Business Unit
Accs Nee MES nO SERS iy, YORNALL)
Slide 2: Products
Products Hinges Drawer slides Locks Kitchen & office hardware Office chair components Castors & glides Connecting & fitting systems Ooooovooo spo Decorative hardware (handles & knobs)
Slide 3: Customer segments: kitchen, shop fitting, furniture, cabinet makers
() Kitchen manufacturing UL) Shop Fitters () Furniture manufacturing & assembly a Home a Commercial LJ Cabinet Makers
Slide 4: Purchased from ITW
[ Fy Purchased from ITW Leading brands Home brands C) C) Q) C) Direct imported product a 3 sales offices/ 3 warehouses a 36 Employees 0 Customers (Tradesmen) O Low concentration of customers
Slide 5: Purchased from private owners
Q) C) C) Q) Purchased from private owners Leading brands Home brands Direct imported product a 7 Sales offices/warehouses a 112 Employees Customers (Tradesmen) Low concentration of customers
Slide 6: Strategy
Strategy ~~» Build a market leading position in the Cabinet, Kitchen Fittings and Chair markets » Niche market « Distribution/multi branch « Opportunities for further expansion « Common customer type to fasteners
Slide 7: Operational Strategy and Operational business improvements
Operational Strategy 4 an Operational business improvements « Leverage to a market leading position « Expand product range « Expand market presence « Further growth opportunities via new branches
Slide 8: Integration: systems migration and warehouse relocations
\ ook Both Cornall Group and Howard Silvers will be moved across to CGL’s — national computer system — Oracle. a Howard Silvers Hardware - 2006 _ a Cornall Group - 2007 CGL will need to relocate the following Howard Silvers warehouses. a Smithfield - June 2006 a Kewdale - January 2006 * Other Howard
Slide 9: Financial Analysis: Cornall/Howard Silvers
Financial Analysis Cornall/Howard Silvers Pe : Purchase Price (Assets) $16.2M ls =, Revenue $37M Year 1 EBITA $3.2M NTA $12.0M ROCE Year 1 15.7% Year 3 >20% EBIT/Sales Year 1 8.7% Year 3 >10% Note: Cornall purchase price includes a $1m earnout for the vendors
Slide 10: Financial Analysis: Coventry Group Ltd
Financial Analysis Coventry Group Ltd i =: EPS accretive in: a Year 1 3.7 cents Year 3 6.6 cents Debt Funded Net debt to equity post acquisition 38% Interest cover 7 times
Slide 11: Slide 11
Coventry Group — Merger or Acquisition (November 2005) on 6ix