Slide 1: December 2017 Half Year Results
December 2017 Half Year Results Chris Hartwig For personal use only Steven McGregor
Slide 2: Agenda
For personal use only Agenda • 1H FY18 Key Points • Financial Results • Outlook • Company Overview 2
Slide 3: Introduction to Korvest
Introduction to Korvest For personal use only • 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 warehou
Slide 4: Headline Numbers
Headline Numbers Dec 17 (1H) June 17 (2H) Dec 16 (1H) % Change vs For personal use only Dec 16 Sales $29.6m $23.5m $21.3m 39.0% EBIT $0.8m ($0.8m) ($1.5m) Operating cashflow $0.3m ($0.2m) ($0.2m) EPS 4.9c (5.0c) (9.4c) Dividend per share 5c 3c 10c Profit After Tax 2,000 1,845 • Result just above gui
Slide 5: Industrial Products
Industrial Products Dec 2017 June 2017 Dec 2016 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2016 Sales $26.88m $21.01m $19.26m 39.6% EBIT $0.95m ($0.64m) ($1.0m) EBIT % 3.5% (3.0%) (5.2%) Trading Update • Supply to NSW infrastructure project • Day-to-day demand improved • Margin improved d
Slide 6: Production Services
Production Services Dec 2017 June 2017 Dec 2016 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2016 Sales $2.70m $2.44m $2.02m 33.7% EBIT $0.17m ($0.19m) ($0.28m) EBIT % 6.3% (7.8%) (13.9%) Galvanising volume Trading Update • Continued volume growth • Price rise 1 August • Zinc price increase
Slide 7: Balance Sheet
Balance Sheet ASSETS $m Dec 2017 June 2017 Dec 2016 For personal use only Cash & Investments 1.4 2.0 3.5 Receivables 11.9 9.5 7.7 Inventories 10.1 10.7 11.6 Property, Plant & Equipment 13.4 13.8 14.0 Other 0.1 0.1 0.1 Total Assets 36.9 36.1 36.9 LIABILITIES Payables (4.4) (4.0) (3.6) Other Liabiliti
Slide 8: Dividends
Dividends For personal use only FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Interim 5c 10c 10c 17c 26c Special Interim - - - 100c Final Dividend 3c 10c 12c 31c Total Dividend 13c 20c 29c 157c Franking 100% 100% 100% 100% 100% • DRP suspended for interim dividend Key Dates Record Date: 23 February 2018 P
Slide 9: Outlook
Outlook For personal use only • Supply of NSW infrastructure project continues into 2H • Infrastructure investment forecasts remain strong over the short to medium term • Well positioned to capitalise on growth in infrastructure markets • Day-to-day and small project markets expected to remain at si
Slide 10: Company Overview
For personal use only Company Overview 10
Slide 11: Industrial Products: Cable and pipe supports
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 and trade • Local manufacture allows quick response time and ability
Slide 12: Industrial Products: Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa 12
Slide 13: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 13
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: Calculations
Calculations For personal use only Underlying Profit After Tax is a non-IFRS measure. The chart showing Profit after Tax on Page 4 shows underlying and statutory Profit after Tax. The calculations of the underlying numbers included in this presentation are set out below. Underlying Profit After Tax
Slide 16: For personal use only
For personal use only 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 mos