Slide 1: FY2017 Results
FY2017 Results Alexander Kachellek For personal use only Steven McGregor
Slide 2: Agenda
For personal use only Agenda • FY17 Key Points • Financial Results • Outlook • Company Overview 2
Slide 3: Introduction to Korvest
Introduction to Korvest For personal use only • Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services • Listed in September 1970 • Korvest has sales offices warehou
Slide 4: Headline Numbers
Headline Numbers For personal use only June 2017 June 2016 % Change Sales $44.73m $54.98m (18.6%) EBIT ($2.29m) $1.30m (276%) Operating cashflow ($0.38m) $7.43m (105%) EPS (14.4c) 8.9c (262%) Dividend per share 13c 20c (35%) Profit After Tax 4,000 3,265 • No major project sales during period 3,000 2
Slide 5: Industrial Products
Industrial Products For personal use only June 2017 June 2016 % Change Sales $40.27m $50.70m (20.6%) EBIT ($1.63m) $2.99m (154.5%) EBIT % (4.0%) 5.9% Trading Update • Lack of major projects • Day-to-day work improved • Inconsistent activity state by state • NSW most active market • Margins reduced o
Slide 6: Production Services
Production Services June 2017 June 2016 % Change For personal use only Sales $4.46m $4.28m 4.2% Statutory EBIT ($0.30m) ($0.05m) EBIT % (6.7%) (1.2%) Trading Update Galvanising volume • More external, less internal tonnes • 2H improvement • Margin pressure • Increasing zinc cost (35%) • Surplus mark
Slide 7: Balance Sheet
Balance Sheet For personal use only ASSETS $m June 2017 June 2016 June 2015 Cash & Investments 2.0 5.1 (0.5) Receivables 9.5 8.2 13.6 Inventories 10.7 11.5 13.6 Property, Plant & Equipment 13.8 14.6 15.9 Other 0.1 1.0 0.3 Total Assets 36.1 40.4 42.9 LIABILITIES Payables (4.0) (4.2) (4.2) Other Liabi
Slide 8: Dividends
Dividends For personal use only FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 Interim 10c 10c 17c 26c 26c Special Interim - - - 100c - Final Dividend 3c 10c 12c 31c 20c Total Dividend 13c 20c 29c 157c 46c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 25 August
Slide 9: Outlook
Outlook For personal use only • Domestic market is primary focus • Market outlook encouraging • Product cost improvement – supply chain – new machinery investment • Price rises • Inventory reduction • Update on trading at AGM 9
Slide 10: Company Overview
For personal use only Company Overview
Slide 11: Industrial Products: Cable and pipe supports
Industrial Products For personal use only • Cable and pipe supports • Market leader in cable supports • Manufacturing facility in Kilburn, SA • Overseas supply chain • Sells to EPCMs, Wholesalers, and direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 12: Industrial Products: Safety access systems for mobile vehicles
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa 12
Slide 13: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 13
Slide 14: Production Services
Production Services For personal use only • Longest galvanising kettle in Australia (14m) • South Australia’s only centrifuge plant (national market) • Predominantly structural work for SA projects or fabrications • In-house work for EzyStrut 14
Slide 15: Calculations
Calculations For personal use only Underlying Profit After Tax is a non-IFRS measure. The chart showing Profit after Tax on Page 4 shows underlying and statutory Profit after Tax. The calculations of the underlying numbers included in this presentation are set out below. Underlying Profit After Tax
Slide 16: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Safety Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for any industry. www.titantools.com.au Quick turnaround galvanising of the largest, smallest, and mos