Slide 1: FY24 Full Year Result
FY24 Full Year Result Delivering specialised Industrial products, services and customised solutions
Slide 2: FY24 financial performance snapshot
FY24 financial performance snapshot Financial performance Solid revenue and profit growth Revenue EBITDA 1 EBIT 2 Statutory net profit $370.8m $20.8m $19.8m $0.7m +3.4% on FY23 +22.4% on FY23 +26.9% on FY23 $2.5m FY23 Cash conversion 3 Net Assets Net Debt Net Debt impacted by 112.1% $143.1m $47.3m •
Slide 3: Agenda
Agenda 01 02 03 04 About Markets + Our strategy FY24 performance Coventry industries 05 06 07 Strategic update Acquisitions Summary and outlook
Slide 4: About Coventry
01 About Coventry
Slide 5: About Coventry
About Coventry QLD 98 locations across Fluid Systems: 5 KAA: 14 Australia and New 1929 SM: 6 Zealand 25 Coventry Group founded 14 NSW Fluid Systems: 1 4 10 WA KAA: 8 SA Fluid Systems: 4 Fluid Systems: 1 KAA: 8 1 ACT ~1,050 KAA: 3 12 SM: 1 KAA: 1 DC: 1 23 VIC TAS Fluid Systems: 3 10 Fluid Systems: 1
Slide 6: Business overview Fluid Systems
Business overview Fluid Systems Fluid Systems is an innovative service provider to the Mining and Resources, Renewable Energy, Agriculture and Aquaculture, Defence and Food & Beverage Manufacturing and allied industries Fluid Systems specialises in hydraulics, lubrication, fire suppression, refuelli
Slide 7: Business overview Trade Distribution
Business overview Trade Distribution Trade Distribution comprises Konnect and Artia Australia (KAA), Konnect and Artia New Zealand (KANZ), Nubco and Steelmasters (SM), supplying a range of fastening systems, cabinet hardware systems, industrial and construction products through a network of 57 branc
Slide 8: Business overview Trade Distribution
Business overview Trade Distribution Trade Distribution comprises Konnect and Artia Australia (KAA), Konnect and Artia New Zealand (KANZ), Nubco and Steelmasters (SM), supplying a range of fastening systems, cabinet hardware systems, industrial and construction products through a network of 57 branc
Slide 9: Specialisation is how we win
Specialisation is how we win Our operating business units provide specialised industrial products, services and customised solutions to a wide range of customers from blue chips to tradespeople We operate across a wide range of growing markets where we have small market share Specialisation differen
Slide 10: Markets + industries
02 Markets + industries
Slide 11: The market and environment
The market and environment Our markets Initiatives to grow Labour and skills Macroeconomic generally perform EBITDA1 to sales shortages remain volatility continuing better than the to 10% are challenging overall economy delivering Demand remains positive in the mining and resources sector and Wester
Slide 12: The growth opportunity
The growth opportunity We have single We operate in We operate in digit market share growth markets Opportunities fragmented in both our that generally exist to improve markets ripe for business perform better trading and gross consolidation segments than GDP margins Our Fluid Systems and Trade Dist
Slide 13: Coventry operates in large fragmented markets
Coventry operates in large fragmented markets Coventry has a small market share in large markets with significant opportunity for organic and acquisition growth Mining and resources Infrastructure Building and Industrial and Other markets construction manufacturing Continued strong $100b committed C
Slide 14: Our strategy
03 Our strategy
Slide 15: Our Strategy
Our Strategy Our Purpose Our Values Our Vision Strategic priorities Customer promise Zero harm The right people for Profitable sales growth growth Safety first Improving earnings Leading Trade per share To provide Do the right thing Distribution and Accelerate profitable Exceptional specialised (Fai
Slide 16: Our organic growth opportunities
Our organic growth opportunities Expand Improving the Improve value Service and Digitalisation network network proposition product extensions Improving our value Expanding product proposition to retain ranges customers, increase share of wallet, Enhance stud bolt ERP upgrade Greenfield Konnect acqui
Slide 17: FY24 performance
04 FY24 performance
Slide 18: Historical performance – a growth story
Historical performance – a growth story Group Revenue up 3.4% to A$370.8m Revenue (A$358.3m FY23) Group EBITDA1 up 22.4% to A$20.8m (A$17.0m FY23) EBITDA1 Note 1: EBITDA is earnings before interest, tax, depreciation, amortisation before significant items and has been adjusted to exclude the impact
Slide 19: Initiatives to grow EBITDA to sales to 10% are delivering
Initiatives to grow EBITDA1 to sales to 10% are delivering Our gross margin buy- side and sell-side initiatives delivered a 2.3% year on year +2.3% improvement and will remain a focus throughout FY25 Note 1: EBITDA is earnings before interest, tax, depreciation, amortisation before significant items
Slide 20: Profit and loss
Profit and loss Summary profit and loss $m FY24 FY23 % change • EBITDA 1 up +$3.8m (+22.4%) on prior Revenue 370.8 358.5 +3.4% year EBITDA 1 20.8 17.0 +22.4% • EBIT 2 up +$4.2m (+26.9%) on prior year Depreciation and amortisation (3.8) (3.6) • Profit before tax (PBT) and Net profit after tax (NPAT)
Slide 21: Balance sheet
Balance sheet Solid balance sheet position $m 30 June 2024 30 June 2023 • The Group has a solid balance sheet with Net Tangible Assets of $34.7m Total current assets 157.0 137.2 and Net Assets of $143.1m at 30 June Total non-current assets 192.4 145.6 2024 Total assets 349.4 282.8 • The Group has a
Slide 22: Cash flow
Cash flow Cash conversion of 112.1% FY24 $m FY24 FY23 Gross operating cash flow 27.8 25.8 • Positive cash conversion in FY24 Less Cash lease payments (15.2) (13.1) • Cash conversion of 112.1% Add back Significant Items 10.7 6.4 Adjusted gross operating cash flow 23.3 19.1 EBITDA 1 20.8 17.0 Cash con
Slide 23: FY24 Segment performance
FY24 Segment performance Fluid Systems • Fluid Systems EBITDA 1 % to sales of Revenue EBITDA 1 11.9% $159.2m $19.0m • Trade Distribution EBITDA 1 % to sales of 7.9% +7.5% on FY23 +23.5% on FY23 • Trade Distribution impacted by difficult economic conditions, particularly in New Zealand and Tasmania c
Slide 24: Strategic update and outlook
05 Strategic update and outlook
Slide 25: Strategic update
Strategic update Key strategic initiatives Target 10%+ EBITDA 1 Targeting Improving overall business profitability through: • 14.0%+ EBITDA 1 for each business unit • 4.0% Corporate costs to Group sales • Organic sales growth • Margin improvements • Buy side initiatives • Sell side initiatives Deliv
Slide 26: Strategic update
Strategic update Key strategic initiatives KAA profitability improvements ERP upgrade project Accelerating delivery of our strategy by: ERP upgrade progressing well • Fixing underperforming branches • The ERP upgrade continues to progress broadly to • Improving capability to deliver store makeovers,
Slide 27: Strategic update
Strategic update Key strategic initiatives Optimising financial health Develop marketing and digital capability Cash conversion project delivered positive Implementing e-commerce solutions results • Developing our marketing and promotion capability to • Inventory optimization project continuing incr
Slide 28: Strategic Priorities FY25
Strategic Priorities FY25 • The right people for growth • Target 10% EBITDA 1 initiatives • Accelerate profitable organic growth in Trade Distribution • Continue focus on rightsizing inventories and cash conversion • Deliver ERP upgrade project to schedule and extract benefits • Deliver benefits fro
Slide 29: Acquisitions
06 Acquisitions
Slide 30: Steelmasters Overview
Steelmasters Overview Steelmasters is a leading supplier of industrial & specialty fasteners in Australia and New Zealand across 4 key brands. Overview Key Statistics Founded in 1973, Steelmasters is an Australasian business Steelmasters providing a full range of quality fasteners and industrial s
Slide 31: Summary
07 Summary
Slide 32: Summary
Solid FY24 performance Group sales growth of 8.1% in July 2024 including acquisitions Summary Operating in resilient markets and industries Specialisation will help us win
Slide 33: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by Coventry This presentation may include forward-looking statements. Although the Company believes Group Ltd (the Company) and may contain information tha
Slide 34: Appendix
Appendix &” Coventry Group Ltd
Slide 35: AASB16 Reconciliation
AASB16 Reconciliation FY24 FY23 Variance Variance $’000 ($) (%) Profit before financial income and tax 1 9,037 9,215 (178) Significant items 10,584 6,394 4,190 Add: Depreciation ROU Asset – Property and Vehicle 2 14,530 12,739 1,791 less: Lease payments - Property and vehicle (AASB 16 only) 3 (19,30