Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Stealth Global Holdings — FY2019 Earnings Presentation
40 slides from Stealth's earnings presentation, Sep 2, 2019
Slide 1: Full Year Presentation FY19
2 SEPTEMBER 2019 | ASX:SGI AN INTERNATIONAL SUPPLY AND DISTRIBUTION GROUP providing everyday workplace consumable products and supply chain solutions to business customers. Full Year Presentation FY19 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Stealth Global Holdings (the Company) and is provided or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained for information purposes only. This document does not constitute an offer, invitation, in this documen
Slide 3: Content
Content Section Content Page Part 1 FY2019 Achievements and Strategy & Vision 4 Part 2 Group Overview 8 Part 3 Financials 16 Part 4 The Next Chapter – strategic pathway and outlook 21 Part 5 Appendices - more detail about our business units 26 Last Page 40 3
Slide 4: Part 1 FY2019 Achievements and Performance
Part 1 FY2019 Achievements and Performance 4
Slide 5: Transformation period of growth in FY19
Transformation period of growth in FY19 30 June 2019 30 June 2018 Approximate growth Statutory Revenue $63.1 million $23.5 million $39.6 million Statutory Sales to customers based in Australia $41.6 million $3.1 million $38.5 million Employees 162 48 114 Customers ~3,000 ~80 ~2920 Suppliers ~2,000 ~
Slide 6: Our last 12 months strategic achievements
Our last 12 months strategic achievements Dates Event Detail Summary Financial Comments 2 Oct 18 Listed on the ASX ASX release Australian Stock Exchange Official listing to the ASX Raising $12.5m 2 Oct 18 Acquisition of Heatleys Safety & • Doubled the size of our business…..~$43m annual sales added
Slide 7: Strategy and Vision
Strategy and Vision To create Australia’s leading international distributor offering a broad-range of everyday consumable products to Vision business customers, focusing on Industrial & Trade, and Consumer Retail customer markets. To have diversity across our portfolio of brands, customer types, geo
Slide 8: Part 2 Group Overview
Part 2 = ov > — oO > O Qo S O —_ UO si Y Pe [= =F
Slide 9: Group overview
Group overview We are building a world-class sales and distribution organisation MARKET AND FINANCIAL SNAPSHOT We are a supplier and distributor of everyday consumable products and provider of supply chain services to business customers. Listed on ASX October 2018 ASX Code SGI Market Cap @ 2 Septemb
Slide 10: SGI Board members
SGI Board members Well balanced and experienced team, established early to support high growth plans Mike Arnold Chris WhartonAM John Groppoli Peter Unsworth Karen Logan Group Managing Director Chairman Non-ExecutiveDirector Non Executive Director CompanySecretary • Stealth Founder • Member of the O
Slide 11: Group facts
Group facts Did you know that….? Stealth Global Holdings (SGI) is a Public Listed Company on the Australian Stock Exchange. Listing date 2 nd October 2018 Net sales 2019 Employees Products Customers Key supplier Suppliers access to 300,000 partners 75 million 160+ 40,000 3,000+ 130+ 2,000+ 53% male
Slide 12: Our simplified business model
Our simplified business model Building a world-class sales and distribution organisation Comprehensive service portfolio along the value chain Supplier partners integrated service portfolio with key sales and distribution verticals Customer Markets • Manufacturers • Industrial & Trade • Wholesalers
Slide 13: How we generate Sales - reaching our customers
How we generate Sales - reaching our customers Building a world-class sales and distribution organisation Organization Business Units Where We Compete in key sales and distribution verticals 50/50 JV with Bisley Workwear Product Categories Safety / PPE Consumables Industrial / MRO Products Healthcar
Slide 14: Organisation Business Units – where we compete
Organisation Business Units – where we compete SGI – Parent Co AUSTRALIA UNITED KINGDOM BSA BRANDS (UK) MALAYSIA JV Co Bisley Workwear 50% owner Stealth Global 50% owner 14
Slide 15: Our business units
Our business units Where we compete in key sales and distribution verticals Wholesale Distribution Member based buying group Broad range distribution category specific and wholesale distribution Value Proposition Trade, Retail & Industrial Comprehensive assortment of Trade & Industrial Trade, Retail
Slide 16: Part 3 Financials
Part 3 Financials 16
Slide 17: FY19 Statutory Financial Performance
FY19 Statutory Financial Performance FY19 REVENUE AND EBITDA COMMENTS GEOGRAPHIC SALES WHERE REVENUE $m CUSTOMER IS BASED 90.0 • FY18 Revenue is Stealth only, on a Statutory basis. 80.0 Asia 0.17% • FY18 EBITDA is Stealth only, on a Statutory basis before 70.0 63.1 Europe IPO transaction costs. Aust
Slide 18: Underlying FY19 results – Proforma and Statutory
Underlying FY19 results – Proforma and Statutory Proforma assumes full year 12 months of Stealth and 12 months of Heatleys Reference guide to the above 1 Underlying EBIT is a non-IFRS term, defined here as Earnings Before Interest and Tax attributable to the owners of the company after adding back t
Slide 19: FY19 Statutory Consolidated Profit & Loss
FY19 Statutory Consolidated Profit & Loss FY-2019 HIGHLIGHTS • Strong growth performance of ~$40m from FY18 • Statutory FY19 results include only a 9 month contribution from Heatleys from date of acquisition • Gross profit margin increased to 24.3% from 18.5% pcp • Gross Profit in Australian operati
Slide 20: FY2019 Balance Sheet and Cash Flow
FY2019 Balance Sheet and Cash Flow FY-2019 HIGHLIGHTS Statutory Statutory BALANCE SHEET BALANCE SHEET SUMMARY 30 Jun 2019 30 Jun 2018 $M $M • Net cash position of $0.4m post IPO, Heatleys & ISG Cash and cash equivalents 2.0 0.3 acquisitions. Other current assets 22.7 4.2 • Trade and other receivable
Slide 21: Part 4 The Next Chapter strategy and outlook
Part 4 The Next Chapter strategy and outlook 21
Slide 22: The Building Blocks To Deliver
The Building Blocks To Deliver continuing to drive growth and increase market share Fundamentals Value creation Purpose • Continuing to build for Revenue & profit aim competitive advantage and of $200m at 8% EBITDA by 2024 shareholder value • The supply chain and • Increasing competitive strength di
Slide 23: Strategic pillars
Strategic pillars Creating long term value Our core was strengthened in FY19, as we head into FY20….. strategy enhanced synergies brands Clear vision and strategy creating a competitiveness The sales and distribution models the three business units are interrelated. The distribution of proprietary b
Slide 24: Priorities and initiatives
Priorities and initiatives A number of strategic initiatives are underway FY20 Strategic Focus Strategic Goal #1 Strategic Goal #2 Strategic Goal #3 Strategic Goal #4 Strategic Goal #5 Leverage business Continue to develop customer Acquire complimentary Focus on existing business units Expand our op
Slide 25: Outlook
Outlook We are cautiously optimistic on the back of positive growth in the Australian and UK markets, as well as global and regional conditions that in our view are likely to remain favourable for our business. We continue to advance a number of strategic initiatives. Our aim is to grow annual Group
Slide 26: Part 5 - Appendices More detail about our business units
Part 5 - Appendices More detail about our business units • GROUP LEADERSHIP • BUSINESS MODEL • PRODUCT RANGE • GEOGRAPHIC SALES SPREAD • CUSTOMER SAMPLE • HEATLEYS & ISG AUSTRALIA • BSA BRANDS (UK) • AFRICA • EX CHINA DISTRIBUTION 26
Slide 27: Group Leadership
Group Leadership Mike Arnold Luke Cruskall David Kiggins Sam Barbaro Adam Sherwood CEO - Australia Operations General Manager – UK / Africa Operations Group Managing Director Group COO Group CFO Trade and Industrial Trade and Industrial • Responsible for the group’s • Responsible for growth and the
Slide 28: Our business model
Our business model Building a world-class sales and distribution organisation Organisation business units Where we compete in key sales and distribution verticals Organisation Functions Manufacturer and Supplier Customer Markets Primary Activities Sales & Purchasing Supply Chain Marketing Inbound So
Slide 29: Consumable Product Range
Consumable Product Range Wide-range of 40,000+ products held in our distribution centres and we can access 300,000+ INDUSTRIAL & MRO SAFETY & PPE HEALTHCARE CONSUMER GOODS & WORKPLACE • Maintenance, repair & • Clothing • First aid kits • Everyday needs operations (MRO) supplies • Footwear • Medical
Slide 30: Geographic sales where customers are based
Geographic sales where customers are based Our approach to each market is deliberate and bespoke Headquartered in Perth, Western Australia, the group operates in Australia, Africa, UK, Europe and Asia in an addressable market $60billion+ 50/50 Joint Venture with Bisley Workwear Sales by Segment AUST
Slide 31: We Sell to Blue Chip Clients
We Sell to Blue Chip Clients across resources, manufacturing, engineering, construction, transportation, reseller and industrial sectors Sample of our 3,000+ Customers Sales by Segment 43% 27% 20% 10% Manufacturing, Engineering, 1 Mining Services 2 3 General & Other Industries 4 Miners Construction
Slide 32: Heatleys Safety & Industrial
Heatleys Safety & Industrial www.heatleys.com.au Some of the Brands we Sell
Slide 33: Heatleys Australia operations
Heatleys Australia operations Our largest customer and service markets are currently Western Australia & South Australia CANNING VALE (WA) BRANCH OFFICE/DISRIBUTION CENTRE KALGOORLIE (WA) – BRANCH OFFICE BUNBURY (WA) – BRANCH OFFICE BASSENDEAN (WA) – BRANCH OFFICE WINGFIELD (SA) - BRANCH OFFICE AUST
Slide 34: A look inside of a Heatleys trade store and DC
A look inside of a Heatleys trade store and DC INSIDE OUR OPERATIONS 34
Slide 35: Industrial Supply Group
Industrial Supply Group https://www.isgaus.com.au Our locations in Australia
Slide 36: BSA Brands (United Kingdom) – launched May2019
BSA Brands (United Kingdom) – launched May2019 www.bsabrands.co.uk 55 trade stores in the UK will range Bisley Workwear BISLEY STOCKIST LOCATOR Sample of other range arriving in the UK 36
Slide 37: Official Launch in the UK - May 2019
Official Launch in the UK - May 2019 THE TEAM Roadshow - May19 to 48 new customers Bristol Birmingham Manchester Edinburgh London (L to R – James Cartwright, Jo Dalton, Jessica McGibbon, Adam Sherwood, David Gazal, Mike Arnold, Toni Westlake, Luke Cruskall, Jo Dyson) 55 trade stores in the UK will r
Slide 38: Our Africa service proposition
Our Africa service proposition Integrated with an international supply chain network supported by incountry distributor partners EXAMPLE CUSTOMER CASE STUDY – Stealth operates as the primary supplier MARKET OFFERING From Category specific product supply to Africa markets, through to providing a one-
Slide 39: Ex China direct distribution
Ex China direct distribution Simplified supply model from manufacturers and suppliers Sourcing principals from Manufacturers and Suppliers Example ex China and Cross Border distribution • Products are sourced from 19 countries across some 2,000 suppliers to meet customer needs. Our key supplier busi
Slide 40: LAST PAGE Full Year Presentation FY19
LAST PAGE Full Year Presentation FY19 2 SEPTEMBER 2019 | ASX:SGI
Stealth Global Holdings — FY2019 Earnings Presentation on 6ix