Korvest Ltd. · ASX:KOV
Korvest — Investor Presentation (January 2021)
18 slides from Korvest's investor presentation, Jan 22, 2021
Slide 1: December 2020 – Half Year
December 2020 – Half Year Chris Hartwig and Steven McGregor
Slide 2: EzyStrut OTLOLAN wl / ey
EzyStrut OTLOLAN wl / ey cable ar pibe Supports _— ee Safety Access Systems I Korvest tic
Slide 3: Agenda
Agenda • FY21 1H Key Points • Financial Results • Outlook • Company Overview 3
Slide 4: Introduction to Korvest
Introduction to Korvest • 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 and warehouses in Adelaide, M
Slide 5: Headline Numbers
Headline Numbers Dec 20 (1H) June 20 (2H) Dec 19 (1H) Dec 20 vs Dec 19 Sales $32.6m $27.0m $36.1m (9.7%) EBIT $4.16m $2.76m $3.08m 35.1% NPAT $2.84m $1.90m $2.13m 33.3% Operating cash flow $2.74m $4.24m $7.98m EPS 25.1c 16.8c 19.0c 32.1% Dividend per share 15c 13c 15c - Profit After Tax 3,000 2,835
Slide 6: COVID-19
COVID-19 • $1.86m before tax JobKeeper income in FY20 • Did not qualify for JobKeeper 2 • International shipping delays and rising costs • VIC branch continued to operate during prolonged lockdown • SA 3-day lockdown affected production, increased overtime • COVID-19 preventative protocols continue
Slide 7: Industrial Products
Industrial Products Dec 20 (1H) June 20 (2H) Dec 19 (1H) Dec 20 vs Dec 19 Sales $29.47m $24.20m $32.89m (10.4%) EBIT $2.41m $1.52m $2.97m (18.9%) EBIT % 8.2% 6.3% 9.0% Trading Update • One major project supplied during 1H FY21 vs two in 1H FY20 • General market improved compared to 2H FY20 however w
Slide 8: Production Services
Production Services Dec 20 (1H) June 20 (2H) Dec 19 (1H) Dec 20 vs Dec 19 Sales $3.15m $2.77m $3.23m (2.5%) EBIT $0.29m $0.30m $0.39m (25.6%) EBIT % 9.2% 10.8% 12.1% Galvanising volume Trading Update • Strong volume, increased project mix • Small decline in external work more than offset by increase
Slide 9: Strategic and operational initiatives
Strategic and operational initiatives Automation • Robotic Ladder Weld Cell has arrived and currently being commissioned • Robotic Tray Stacking Capex approved for installation during 2H Operational • 4 new pre-treatment tanks successfully installed in Galvanising during end-of-year shutdown • Conti
Slide 10: Balance Sheet
Balance Sheet ASSETS $m Dec 2020 Jun 2020 Dec 2019 Cash & Investments 6.4 6.7 8.6 Receivables 10.3 10.1 10.0 Inventories 11.4 10.6 8.7 Increased project stock holding at Dec 20 Property, Plant & Equipment 16.4 15.9 13.3 Ongoing investment in factory Right-of-use Asset 4.2 4.7 4.7 Other 0.5 0.3 0.4 T
Slide 11: Dividends
Dividends FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Interim 15c 15c 9c 5c 10c Final Dividend 13c 13c 7c 3c Total Dividend 28c 22c 12c 13c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 19 February 2021 Payment Date: 5 March 2021 11
Slide 12: Outlook
Outlook • Supply to major infrastructure project to continue throughout 2H at similar levels to 1H • Infrastructure pipeline for the next 3-5 years remains strong • Day-to-day and small project markets expected to remain at 1H levels throughout 2H • Uncertainty around future impact of COVID-19 • Ste
Slide 13: Company Overview
Kk Korvest 1d Company Overview
Slide 14: Industrial Products
Industrial Products • 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 to manufacture special
Slide 15: Industrial Products
Industrial Products • Hydraulic/Electric Safety Access Systems for mobile vehicles o Design o Manufacture • Safety Lighting • Filter Crushers • Queensland Based 15
Slide 16: Industrial Products
Industrial Products • Hydraulic tools and wrenches o Sale o Hire o Repair • Markets o Large scale construction o Power stations o Industrial sites o Mines o Wind towers 16
Slide 17: Production Services
Production Services • 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 17
Slide 18: Australia's leading range of cable & pipe supports.
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 most complex construction