Coventry Group Limited · ASX:CYG
Coventry — Shareholder Meeting (October 2022)
21 slides from Coventry's shareholder meeting presentation, Oct 21, 2022
Slide 1: FY22 Annual General Meeting
FY22 Annual General Meeting 21 October 2022 At the Coventry Group we create a sustainable future by empowering our people to deliver great customer experiences ASX: CYG
Slide 2: Agenda
Agenda 1. Health, Safety and Wellbeing 4 2. Our strategy 5 3. Our business units 8 4. Historical highlights 12 5. FY22 Results Highlights 15 6. FY23 Q1 highlights 17 7. ERP project update 18 8. Trading Update/Outlook 19 2 ASX: CYG
Slide 3: Our purpose
Our purpose Our Purpose at the Coventry Group is to Create a Sustainable Future by Empowering Our People to Deliver Great Customer Service A clear opportunity exists to build a highly focused scaled Industrial Supply and Services business with leading market positions across multiple geographies, ma
Slide 4: Health, Safety and Wellbeing
Health, Safety and Wellbeing We Value the Health, Safety and Wellbeing of Our People First and Foremost The health, safety and wellbeing of our people is our number one priority • 4 Lost Time Injuries (LTI’s) for a total of 63 lost days for FY22 (7 LTI’s for 56 lost days in FY21) • Detailed root cau
Slide 5: Vision and Strategic Direction
Vision and Strategic Direction Our Vision is to be Australia and New Zealand’s Leading Industrial Supply and Services Group where we do the Right Thing by our People, Customers and Partners to Create a Sustainable Future AN EXCITING OPPORTUNITY EXISTS TO BUILD A LEADING SCALED INDUSTRIAL SUPPLY AND
Slide 6: Our Values
Our Values We do the Right Thing by our People, Customers and Suppliers ➢ Our values are Fairness, Integrity, Respect, Safety and Teamwork (FIRST) ➢ We live our values and strive to do the right thing in all our dealings with our people, customers and suppliers ➢ During FY22 we appointed an experien
Slide 7: Our Value Proposition
Our Value Proposition We are Focussed on Our Customers Needs ➢ Our customers needs are our priority ➢ Our value proposition, service levels and customer engagement differentiate us from our competitors ➢ We continue to strengthen our business development and sales teams to meet our customers needs ➢
Slide 8: Business Overview – Trade Distribution
Business Overview – Trade Distribution Trade Distribution (TD) comprises our network of Konnect and Artia Australia (KAA), Trade Distribution New Zealand (TDNZ) and Nubco branches ➢ KAA is one of Australia’s leading fastener specialists and supplier of cabinet hardware, operating through 41 branches
Slide 9: Business Overview – Trade Distribution
Business Overview – Trade Distribution What we do Product categories Customer segments Fastening Systems Industrial Cabinet Hardware Systems Building and Construction Sell, warehouse and distribute products through a network of Steel Infrastructure branches across Australia and New Zealand Construct
Slide 10: Business Overview – Fluid Systems
Business Overview – Fluid Systems Fluid Systems Is a Market Leader, Continuing to Deliver Excellent Results ➢ Fluid Systems is an innovative service provider to the mining, agriculture, defence, construction, manufacturing and allied industries – specializing in hydraulics, lubrication, fire suppres
Slide 11: Business Overview – Fluid Systems
Business Overview – Fluid Systems What we do Market/product segments Customer segments Hydraulics Mining and resources Sell, warehouse and distribute products Agriculture Lubrication Engineered solutions Defence Fluid dispensing Transport Workshop service and repairs Re-fuelling systems Recycling On
Slide 12: Historical Highlights (1 of 2)
Historical Highlights (1 of 2) 5 years of profitable growth – Sales CAGR 16.4% Note 1: EBIT and EBITDA exclude the impact of AASB 16 – Leases Note 2: The Directors believe that the presentation of unaudited non-IFRS financial information on this slide is useful for users of the accounts as it provid
Slide 13: Historical Highlights (2 of 2)
Historical Highlights (2 of 2) A Significant Achievement over the Last Five Years Transformed the culture Five consecutive years of KAA returned to profit in the Group based on sales and profit growth after >10 years of losses our core values Six successfully integrated Profitably navigated the acqu
Slide 14: FY22 Highlights
FY22 Highlights Fifth Consecutive Year of Revenue and Profit Growth Revenue EBITDA1 EBITDA1 Margin $322.3m $15.5m 4.8% +11.7% on FY21 +16.1% on FY21 Up from +4.6% in FY21 EBIT1 Growth in all key Available Tax Losses $12.4m ratios $76.6m +17.0% on FY21 EBITDA1 per share Dividend Franking Credits 17cp
Slide 15: FY22 Financial Results
FY22 Financial Results Sales Growth Achieved in Both Business Segments Trade Distribution Revenue EBITDA $193.1m $16.1m +13.4% on FY21 +37.6% on FY21 Fluid Systems Revenue EBITDA $129.8m $12.9m +9.0% on FY21 -6.8% on FY21 15 ASX: CYG
Slide 16: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Net Assets Increased to $113.6m Commentary $ Million FY22 FY21 % change ➢ Net debt position at 30 June 2022 of $33.1m (net debt Net debt 33.1 16.3 position as at 30 June 2021 of $16.3m) Net assets 113.6 109.8 +3.5% ➢ Increased net debt due to: Net tangible assets 36.1 36.
Slide 17: FY23 Q1 Sales and EBIT Performance
FY23 Q1 Sales and EBIT Performance Sales Growth Achieved in Both Business Segments Group Trade Distribution Fluid Systems Revenue 1 Revenue 1 Revenue +14.8% on Q1 FY22 +20.8% on Q1 FY22 +6.4% on Q1 FY22 EBIT 1 2 We estimate unplanned public holidays +20.3% on Q1 FY22 impacted Revenue -$1.5m and EBIT
Slide 18: ERP upgrade
ERP upgrade Upgrading our Enterprise Resource System (ERP) to the latest technology Microsoft Dynamics Replaces our 15 year Project will be 365 Finance and old Oracle eBS system completed in stages On-going costs lower in Operations system that no longer meets over two and a half the order of $500k
Slide 19: Outlook
Outlook The Group is Cautiously Optimistic for FY23 ➢ There are significant growth opportunities across all segments of the business – market share gains, new branches, product range extension and acquisitions. ➢ Given continuing market uncertainty we will not be providing full year guidance but wil
Slide 20: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by This presentation may include forward-looking statements. Although the Coventry Group Ltd (the Company) and may contain information that has Company bel
Slide 21: ASX: CYG
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