Excelsior Capital Ltd · ASX:ECL
Excelsior Capital — CMI — H1 FY2015 Earnings Presentation
14 slides from Excelsior Capital's earnings presentation, Mar 25, 2015
Slide 1: Investor Presentation 2015 Half Year Results
Investor Presentation 2015 Half Year Results 23 - 25 MARCH 2015 Andrew Buckley – Executive Chairman Sharyn Williams – C.F.O.
Slide 2: Disclaimer
Disclaimer This document, and any constituent or associated presentation, information or material (collectively, the Material), is not (and does not form part of) an offer, solicitation, invitation or recommendation in respect of any securities and neither the Material nor any part of it will form t
Slide 3: Corporate Profile
Corporate Profile ASX Code CMI Substantial Shareholders** Share Price (18 Mar 2015) $1.45 • Le Rae Pty Ltd & Others (38.06%) Issued Capital • Acorn Capital Limited (8.90%) - Shares 34.6m • Schroder Investment Management (5.69%) - Performance Rights 1.4m Market Capitalisation $50.1m Cash (31 Dec 2014
Slide 4: Financial Performance: H1FY15 Performance Summary
Financial Performance H1FY15 Performance Summary Electrical TJM Corporate H1FY15 $'000 $'000 $'000 $'000 Revenue 21,948 17,069 54 39,071 EBITDA 4,243 555 (981) 3,817 EBITDA margin % 19% 3% 10% EBIT 4,153 (313) (985) 2,855 Operating PBT 4,153 (317) (1,035) 2,801 Tax (934) Reported NPAT 1,867 • Revenu
Slide 5: H1FY15 Earnings Comparison
H1FY15 Earnings Comparison • Revenue of $39 million – a 21% $m H1FY15 H1FY14 Change H2FY14 Change decrease on H1FY14 (9% Revenue 39.1 49.5 (21%) 42.9 (9%) decrease on H2FY14) - largely due to the continuing EBITDA 3.8 4.3 (11%) 2.5 53% impact of the mining and EBITDA Margin 10% 9% 6% construction sl
Slide 6: Financial Performance: H1FY2015 Balance Sheet
Financial Performance H1FY2015 Balance Sheet Electrical TJM Corp H1FY15 $'000 $'000 $'000 $'000 Current assets 23,211 22,178 6,298 51,687 Non-current assets 9,683 6,993 21 16,697 Total assets 32,894 29,171 6,319 68,384 Current liabilities 3,960 5,360 298 9,618 Non-current liabilities 162 573 (277) 4
Slide 7: Financial Performance: Cash Generation H1FY15
Financial Performance Cash Generation H1FY15 10.0 0.1 0.0 9.0 0.7 8.0 2.6 1.0 0.8 7.0 6.0 $m 5.0 4.0 6.7 6.8 3.0 2.0 1.0 - Open Bal Operational Int Recd Borrowings Tax, Int Exp Dividends Capex Close Bal Paid Page 7 • A solid operational cash flow of $1.9 million (includes tax and interest)
Slide 8: Financial Performance: Working Capital
Financial Performance Working Capital 20,000 40,000 18,000 35,000 16,000 30,000 14,000 12,000 25,000 $'000's 10,000 Electrical 20,000 TJM 8,000 TJM Electrical 15,000 6,000 10,000 4,000 2,000 5,000 0 0 June 2014 Dec 2014 June 2012 June 2013 June 2014 Dec 2014 *Working Capital = Inventory + Trade debt
Slide 9: Electrical Division
Electrical Division • Formed in 1998, distributes and Revenue manufactures industrial electrical products • Design and manufacture of explosion protected plugs, receptacles, couplers and cable glands; design and supply of high voltage cables, flexible cables, fire rated cables; and manufacture of sp
Slide 10: Electrical Division
Electrical Division • Operates across 7 sites in Australia • Experienced, stable management • 56 employees (approximately) • 5 Business units • Minto Industrial Products (plugs, couplers, glands) • XLPE Cable • Aflex Flexible Cable • Hartland Cables • Flameproof Engineering Page 10
Slide 11: TJM Products
TJM Products Revenue • Revenue down 23% but earning improvements through increased margins and lower overheads • EBITDA positive result, a $1.7m improvement to NPBT over PCP • Divested 2 March 2015 EBIT Page 11
Slide 12: TJM Divestment
TJM Divestment • Division divested for $22.2m net of cash and debt in March 2015 with expected gross proceeds of $24m • Expect to realise slightly above book value, with no material write-down • Subsidiary sold to Aeroklas Australia Pty Ltd (Aeroklas), a wholly owned subsidiary of Aeroklas Co Ltd in
Slide 13: Outlook
Outlook • Impact of subdued conditions in the resources sector remains significant for CMI Electrical division and is not expected to recover quickly • Expected improvement in infrastructure and construction activity not eventuating yet with election results in Victoria and Queensland slowing infras
Slide 14: Strategy
Strategy • TJM sale effected with good outcome as per strategy • Future direction of CMI is likely to include further growth and diversification options with a vision of growing the business substantially over the next 5 years • Consideration of opportunities for growth in the electrical products ar