Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Merger or Acquisition (June 2024)
33 slides from Stealth's merger presentation, Jun 6, 2024
Slide 1: Acquisition Presentation Briefing
ASX:SGI An Australian Distribution Company Acquisition Presentation Briefing Thursday June 6, 2024 Acquisition Presentation to Investors © Stealth Group Holdings 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Stealth Group Holdings Ltd (the Company) and is provided for information purposes only. opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this For personal use only Thi
Slide 3: Table of Contents
Table of Contents Introduction 5 Acquisition overview of Force Technology International 12 Pro forma Financial Overview 24 A Powerful Combination 26 Outlook 30 © Stealth Group Holdings 3
Slide 4: An Australian Distribution Company
An Australian Distribution Company Visit us at www.stealthgi.com Overview Stealth Group Holdings, is an Australian conglomerate headquartered in Perth, Western Australia. It operates through a diversified portfolio in Australia spanning multiple sectors including industrial, retail and trade industr
Slide 5: Introduction Key Messages
Introduction Mobile accessories are needed everywhere Key Messages Stealth to acquire Force Technology, a leading wholesale distributor sales and marketing solutions provider in the large and growing mobile accessories space. Diversified conglomerate strategy Adjacencies offering improvement t
Slide 6: Key messages
Key messages Every Workplace Immediate expansion Immediately value- needs mobile strong pipeline of accretive accessories growth opportunities © Stealth Group Holdings 6
Slide 7: Transaction Summary
Transaction Summary Reaching customers everywhere • Stealth to acquire 100% of the shares in Force for approximately $9.5 million. Transaction • Implied multiple of <4x EV/EBITDA for FY24f and FY23a, before transaction costs. • Additional one-off outperformance cash incentive if specific profit targ
Slide 8: Post Completion Consolidated Key Numbers
Post Completion…Consolidated Key Numbers Serving Customers of all types and sizes in Business, Trade and Retail $159m ~ ~ $8.5m 61 > 3,310 > 90% Pro forma Pro forma Store locations Retail reseller stores Of products we sell are FY24f Revenue FY24f EBITDA Australia-wide Australia-wide Non-discretiona
Slide 9: A Powerful Combination
A Powerful Combination Well-placed portfolio of businesses with exposure to growth Differentiator An Industry leader built on a strong platform Offers focused on products for every workplace and for every person Manufacturing capabilities supporting brand expansion, own label and private label Consu
Slide 10: Business Units
Business Units Serving Business, Trade, Commercial, Retail Industrials Consumer Where does Force fit? This structure supports Stealth’s diverse operations and facilitates, efficient management of individual business functions, and working together cohesively with shared infrastructure. © Stealth Gro
Slide 11: Our distribution go to market
Our distribution go to market We serve customers of all types and sizes in business, trade and retail Brands / Suppliers Go-to-Market Channels Division Suppliers & Manufacturers Division Customer Types / Channels • Distributed Brands • Business Wholesale • Exclusive Brands Industrials • Trade • Own-
Slide 12: Overview of Force Technology
Overview of Force Technology © Stealth Group Holdings 12 © Stealth Group Holdings 12
Slide 13: The Mobile Accessories Market
The Mobile Accessories Market Large and Growing Opportunity 5% Global Market Australian Market Force85% • Wholesale Mobile accessories market size in 2022 is $1.0 billion ~5% • Mobile accessories market size globally in 2022 is USD 80.1 billion • Retail market size 2022 is more than $2.2 billion • 2
Slide 14: About Force
About Force Acquisition of Force Technology International Revenue FY24f Retail Reseller Store Outlets Force, is a market-leading wholesale distributor and solutions provider in $44.0M ~3,310 the large and growing mobile accessories market. Force has a proven track record of delivering innovative sol
Slide 15: Trading / Brand / Sales Channel Mix
Trading / Brand / Sales Channel Mix driving performance by a well-balanced distribution portfolio FY24F Trading Brand Mix Channels F Y 2 3 A s i m i l a r re s u l t of FY24 sales of FY24 sales $44.0m Distributed Brands 15% FMCG Telco 20% 21% Own-label 30% Bespoke 19% Consumer $2.5m Electronics 39%
Slide 16: Customer / Channels
Customer / Channels Sample of key reseller channel partners. Telco Independents FM CG/Convenience Consumer Electronics Online Products ranged in more than 3310 reseller stores © Stealth Group Holdings 16
Slide 17: Brand Product Distribution
Brand Product Distribution www.forcetechnology.com.au Ow n label brand Exclusive distribution Distributed Brands Bespoke Market leading brands © Stealth Group Holdings 17
Slide 18: Consumer Accessory Products
Consumer Accessory Products It’s an everyday necessity at home, for lifestyle and in every workplace CASES POWER BANK WALL CHARGER WIRELESS CHARGING TECHNOLOGY USB HUBS / ADAPTORS SCREEN GUARDS LIFESTYLE AUTOMOTIVE CHARGING CABLE HEADPHONE AUDIO POWER SPEAKER POPSOCKETS SUPPORT WIRELESS LENS PROTECT
Slide 19: Opportunities within every workplace
Opportunities within every workplace © Stealth Group Holdings 19
Slide 20: Opportunities for Education, Outdoor, Automotive, Office
Opportunities for Education, Outdoor, Automotive, Office © Stealth Group Holdings 20
Slide 21: Workplace
Workplace TABLET CASES © Stealth Group Holdings 21
Slide 22: Wireless
Wireless © Stealth Group Holdings 22
Slide 23: Every Workplace needs mobile accessories
Every Workplace needs mobile accessories © Stealth Group Holdings 23
Slide 24: Pro forma Financial Performance
Pro forma Financial Performance © Stealth Group Holdings 24 © Stealth Group Holdings 24
Slide 25: Financial Overview
Financial Overview Force Extends Growth, Large Upgrade Opportunity Pro-forma Combined Revenue ($m) Pro-forma Combined EBITDA ($m) From continuous operations From continuous operations 155.0 159.0 44.0 44.0 8.5 8.5 2.5 2.5 111.0 115.0 6.0 6.0 Actual Forecast Actual Forecast FY23 FY24 FY23 FY24 Stealt
Slide 26: A Powerful Combination
A Powerful Combination “continue new trajectory” Presentation to investors and analysts 15 May 2024 Acquisition of Force Technology International © Stealth Group Holdings 26 © Stealth Group Holdings 26
Slide 27: Stealth Group, a Trusted Brand in Distribution
Stealth Group, a Trusted Brand in Distribution Pro forma Stealth and Force together ~$159M Customers FY24f Proforma Revenue Business, Trade, Retail ~$8.5M Synergies FY24f Proforma Adjusted EBITDA $1.2m cost synergies, $2.3m profit synergies, to be fully achieved in second year 61+ ~90% Stores: Compa
Slide 28: Infrastructure and Distribution Network
Infrastructure and Distribution Network An Australian Industrial Distribution Company 14 47 Store Locations Store Locations Company-owned Independent Members 3,310 6 Store Outlets Distribution Centres Retail Resellers © Stealth Group Holdings 28
Slide 29: Growth Benefits from the Acquisition
G r o w th Be n e f i ts f r o m th e Ac q u i s i t io n • Retail Stores: Stealth will introduce its products into Force’s customer base to access the ~3,310 retail stores, broadening its market footprint. Market expansion • Business and Trade channels: With Stealth’s approximately 8,000 accounts i
Slide 30: Outlook
Outlook © Stealth Group Holdings 30 © Stealth Group Holdings 30
Slide 31: Market segment: Retail, Business & Trade
Market segment Expanding horizontally and vertically RETAIL BUSINESS & TRADE EXPANSION PRIMARY MARKET EXPANSION © Stealth Group Holdings 31
Slide 32: Growth cross-selling Key Growth Opportunities
Growth cross-selling Reaching customers everywhere Stealth Force Synergies More range in Network Force reseller Business & Trade Cross-sell and retail reseller Supply Chain Volume customers Channels Upsell stores Net + + + + + = Profit Exclusive Contribution Ranging in Own-label Hire Digital and Bra
Slide 33: Short-term Growth Outlook
Short-term Growth Outlook Our strategy is moving into high gear Significant firepower to increase sales, Key Growth Opportunities / Focus Areas margin, profit and differentiated offer. Key Pivots Growth across all operating divisions PRO FORMA (Stealth + Force) Cross-sell opportunities Revenue and G
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