Korvest Ltd. · ASX:KOV
Korvest — H1 FY2023 Earnings Presentation
15 slides from Korvest's earnings presentation, Jan 24, 2023
Slide 1: December 2022 Half Year
For personal use only December 2022 Half Year Chris Hartwig and Steven McGregor
Slide 2: Cable & Pipe Supports
For personal use only Cable & Pipe Supports 2
Slide 3: Agenda
Agenda • For personal use only FY23 Key Points • Financial Results • Outlook • Company Overview 3
Slide 4: Introduction to Korvest
Introduction to Korvest • For personal use only Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports and galvanising services • Listed in September 1970 • Korvest has sales offices and warehouses in Adelaide, Melbourne, Sydney, Brisbane and Perth, with distribut
Slide 5: Headline Numbers
Headline Numbers Dec 22 (1H) June 22 (2H) Dec 21 (1H) Dec 22 vs Dec 21 Sales $52.95m $47.64m $51.58m 2.7% For personal use only EBIT $6.54m $6.12m $9.74m (32.8%) NPAT $4.52m $4.30m $7.04m (35.8%) Operating cash flow $4.41m $5.37m ($1.38m) EPS 39.1c 37.5c 61.5c (36.4%) Dividend per share 25c 35c 25c
Slide 6: Industrial Products
Industrial Products Dec 22 (1H) June 22 (2H) Dec 21 (1H) Dec 22 vs Dec 21 For personal use only Sales $47.88m $43.36m $47.77m 0.2% EBIT $6.31m $6.20m $8.60m (26.6%) EBIT % 13.2% 14.3% 18.0% Trading Update • 2 major projects completed during 1H • 4 major projects ongoing • • Day-to-day activity remai
Slide 7: Production Services
Production Services Dec 22 (1H) June 22 (2H) Dec 21 (1H) Dec 22 vs Dec 21 For personal use only Sales $5.08m $4.04m $3.81m 33.3% EBIT $0.71m $0.40m $0.89m (20.2%) EBIT % 14.0% 9.9% 23.4% Galvanising volume Trading Update • Plant volumes just below 1H FY22 record • Internal volume unchanged from 2H F
Slide 8: Key initiatives
Key initiatives Automation For personal use only • Robotic General Weld Cell running well, output has transitioned across infrastructure projects • Expansion of robotic folding cell underway • Additional automation projects ongoing Operational & cost optimisation • Tube laser remains on order • Gas
Slide 9: Balance Sheet
Balance Sheet ASSETS $m Dec 2022 June 2022 Dec 2021 Cash & Investments 3.3 3.8 2.9 For personal use only Receivables 16.3 16.9 17.5 Inventories 19.8 20.5 17.7 Property, Plant & Equipment 19.0 19.2 16.8 Land & Buildings revalued up by $1.9m June 22 Right-of-use Asset 4.7 5.2 5.6 Other 0.9 0.3 0.5 Tot
Slide 10: Dividends
Dividends For personal use only FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Interim 25c 25c 15c 15c 9c Final Dividend N/A 35c 20c 13c 13c Total Dividend N/A 60c 35c 28c 22c Franking 100% 100% 100% 100% 100% DRP suspended for final dividend Key Dates Record Date: 17 February 2023 Payment Date: 3 March 20
Slide 11: Outlook
Outlook For personal use only • Major infrastructure projects will continue to be supplied into 2H FY23 • 4 current projects being supplied • Day-to-day and small project markets expected to remain strong • Current orders on hand still very strong, grew during 1H • Working capital requirements will
Slide 12: Company Overview
For personal use only Overview Company 12
Slide 13: Industrial Products
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 • Local manufacture allows quick response time and ability to manufac
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: Australia's leading range of cable & pipe supports
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Quick turnaround galvanising of the largest, smallest, and most complex construction members. www.korvestgalvanisers.com.au 15