Slide 1: FY22 Full Year Results Presentation
FY22 Full Year Results Presentation 26 August 2022 Delivering innovative industrial solutions and services ASX: CYG
Slide 2: Agenda
Agenda 1. Health, Safety and Wellbeing 3 2. FY22 Results Overview 4 3. Strategy Update 11 4. About the Coventry Group 14 5. Trading Update/Outlook 23 2 ASX: CYG
Slide 3: Health, Safety and Wellbeing
Health, Safety and Wellbeing We Value the Health, Safety and Wellbeing of Our People First and Foremost The health, safety and wellbeing of our people is our number one priority • 4 Lost Time Injuries (LTI’s) for a total of 63 lost days for FY22 (7 LTI’s for 56 lost days in FY21) • Detailed root cau
Slide 4: FY22 Highlights
FY22 Highlights Fifth Consecutive Year of Revenue and Profit Growth Revenue EBITDA1 EBITDA1 Margin $322.3m $15.5m 4.8% +11.7% on FY21 +16.1% on FY21 Up from +4.6% in FY21 EBIT1 NPAT2 Available Tax Losses $12.4m $4.8m $76.6m +17.0% on FY21 -49.7% on FY21 EBITDA1 per share Dividend Franking Credits 17
Slide 5: FY22 Highlights Continued
FY22 Highlights Continued Organic Growth Supported by Strategically Aligned Acquisitions FY22 Trading Pleasing performance with all business units experiencing revenue and EBITDA growth. Performance Continued growth in New Zealand despite enforced Government shutdowns (August and September 2021) neg
Slide 6: FY22 Financial Results
FY22 Financial Results Sales Growth Achieved in Both Business Segments Fluid Systems Fluid Systems Solid performance supported by robust core markets and full year Revenue EBITDA acquisition contributions. 10.0% EBITDA margin, lower than FY21 $129.8m $12.9m with that period benefitting from a +9
Slide 7: FY22 Financial Results
FY22 Financial Results $2.1m EBITDA improvement on the prior year, up 16% Commentary Sales growth of +11.7% on the prior year FY22 Financial Results excluding impact of AASB16 – Leases on EBIT and Sales of $322.3m (FY21: $288.5m) EBITDA Solid growth of +9.0% in Fluid Systems (FS) and +13.4% in
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Net Assets Increased to $113.6m Commentary $ Million FY22 FY21 % change Net debt position at 30 June 2022 of $33.1m (net debt Net debt 33.1 16.3 position as at 30 June 2021 of $16.3m) Net assets 113.6 109.8 +3.5% Increased net debt due to: Net tangible assets 36.1 36.
Slide 9: Historical Highlights (1 of 2)
Historical Highlights (1 of 2) EBITDA per share up $0.43 since FY17 Note 1: EBIT and EBITDA exclude the impact of AASB 16 – Leases Note 2: The Directors believe that the presentation of unaudited non-IFRS financial information on this slide is useful for users of the accounts as it provides useful i
Slide 10: Historical Highlights (1 of 2)
Historical Highlights (1 of 2) A Significant Achievement over the Last Five Years Transformed the culture Five consecutive years of KAA returned to profit in the Group based on sales and profit growth after >10 years of losses our core values Six successfully integrated Profitably navigated the acqu
Slide 11: GHL Acquisition
GHL Acquisition Acquisition criteria Acquisition metrics Alignment GHL was our first New Zealand based with CGL acquisition and is performing to strategy expectations Industrial Supply market Specialist in temporary fencing sales and hire and scaffolding plank hire into our Completed the acquisiti
Slide 12: FCB Acquisition
FCB Acquisition Acquisition criteria Acquisition metrics Alignment Fraser Coast Bolts was acquired 31 March with CGL 2022 and is performing to expectations strategy Industrial Supply market Supplier of fastening systems and branded and ancillary products - KAA Completed the acquisition of the busi
Slide 13: ERP upgrade
ERP upgrade Upgrading our Enterprise Resource System (ERP) to the latest technology Microsoft Dynamics Replaces our 15 year Project will be 365 Finance and old Oracle eBS system completed in stages On-going costs lower in Operations system that no longer meets over two and a half the order of $500k
Slide 14: Business Overview – Trade Distribution
Business Overview – Trade Distribution Trade Distribution (TD) comprises our network of Konnect and Artia Australia (KAA), Trade Distribution New Zealand (TDNZ) and Nubco KAA (including Fraser Coast Bolts) is one of Australia’s leading fastener specialists and supplier of cabinet ware, operating t
Slide 15: Business Overview – Trade Distribution
Business Overview – Trade Distribution Trade Distribution Network Expanded to 80 Across Australia and New Zealand Store network expanded with opening of Rockhampton and Invercargill as well as Hervey Bay (FCB) and Auckland (GHL x 2) through acquisition. Completed branch re- configurations in Aus
Slide 16: Business Overview – Fluid Systems
Business Overview – Fluid Systems Fluid Systems Is a Market Leader, Continuing to Deliver Excellent Results Fluid Systems is an innovative service provider to the mining, agriculture, defence, construction, manufacturing and allied industries – specializing in hydraulics, lubrication, fire suppres
Slide 17: Business overview - Fluid Systems
Business overview - Fluid Systems Fluid Systems network of 15 branches in Australia Expanded our Redcliffe operations in Perth over two locations. Plans in place for an additional branch in FY23. Closed the unprofitable Mt Isa branch Torque 1 branch Coopers Fluid Fluid Systems Systems 12 branc
Slide 18: Vision and Strategic Direction
Vision and Strategic Direction Our Vision is to be Australia and New Zealand’s Leading Industrial Supply and Services Group Where we do the Right Thing by Our People, Customers and Partners to Create a Sustainable Future AN EXCITING OPPORTUNITY TO BUILD A LEADING SCALED INDUSTRIAL SUPPLY AND SERVICE
Slide 19: Our Values
Our Values Our Purpose at the Coventry Group is to Create a Sustainable Future by Empowering Our People to Deliver Great Customer Service Our values are Fairness, Integrity, Respect, Safety and Teamwork (FIRST) We live our values and strive to do the right thing in all our dealings with our peop
Slide 20: Our Value Proposition
Our Value Proposition We are Focussed on Our Customers Needs Our customers needs are our priority We continue to improve our value proposition, service levels and customer engagement We continue to strengthen our business development and sales teams to meet our customers needs We have priori
Slide 21: Our Story
Our Story Coventry Group has a proud history over 90+ years 1929 - 1967 - 1984 - 1929 1966 2000 1965 1983 Mr Ronald James Kyle The business prospers. Listed on Acquires a number of Numerous acquisitions including acquires a car dealership the ASX. businesses: diversification into a number of Appoint
Slide 22: Outlook
Outlook The Group is Cautiously Optimistic for FY23 There are significant growth opportunities across all segments of the business – market share gains, new branches, product range extension and acquisitions. Given continuing market uncertainty we will not be providing full year guidance but wil
Slide 23: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by This presentation may include forward-looking statements. Although the Coventry Group Ltd (the Company) and may contain information that has Company bel
Slide 24: ASX: CYG
4) Coventry Group Ltd & Coventry Group Ltd