Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Shareholder Meeting (November 2020)
34 slides from Stealth's shareholder meeting presentation, Nov 27, 2020
Slide 1: AGM Briefing Presentation FY20
AN AUSTRALIAN MULTINATIONAL DISTRIBUTION GROUP AGM Briefing Presentation FY20 AGM 27 November 2020 ASX Code : SGI
Slide 2: Our Difference
Our Difference One-stop-shop for workplace products and supply chain solutions 2 OUR BUSINESS OUR VISION STRONG TEAM OF SALES & VAST SELECTION OF MORE THAN Our aim is to be Australia’s leading SERVICE DELIVERY SPECIALISTS 300,000 PRODUCTS AVAILABLE multinational distribution group, as the selected p
Slide 3: Scale Within The Group
Scale Within The Group People, distribution network, diversity across product range, suppliers and customers 3 180 team 34 stores in 80 distributor members Australia stores in the UK Company owned (9) and of the Bisley Workwear Brand Independents (25) Up ~130 since Oct2018 Up 27 since May2019 Up 80
Slide 4: Distribution Network
Distribution Network Subsidiary companies and key statistics within the group 4 Store Network & Online Channels Qty Bisley Workwear stocked 106 new store network locations in 80 UK trade stores established since March 2019 Heatleys Safety & Industrial Western Australia South Australia 5 NORTH (Compa
Slide 5: Our Supply Chain Simplified
Our Supply Chain Simplified We create value for different customers 5 Standard Distribution & Shipping Online e-Business Sales Force Stores Vending Stores Business & Retail Vending Store Phone & Email Distribution Centres Delivery ORDER FULFILLMENT BUY INSTORE, COLLECT OR DELIVERY CUSTOMER Online e-
Slide 6: Corporate Overview
Corporate Overview 6 CORPORATE SNAPSHOT SGI SHARE OWNERSHIP SGI BOARD MEMBERS Chris Wharton AM Chairman & ASX Code SGI Non-Executive Director Market Cap @ 26 November 2020 $10.0m Mike Arnold Share Price @ 26 November 2020 10.5 cents Group Managing Director High Net & CEO Worths Net Debt @ 30 June 20
Slide 7: Our Objective: To Provide a Satisfactory Return to Shareholders in the Long Term
Our Objective: To Provide a Satisfactory Return to Shareholders in the Long Term 7 We have a clear business strategy that has been consistent since listing, and will create long term value for our shareholders by; 1 2 3 4 5 6 Configuring our Continuing to Driving top-line Implementing Developing our
Slide 8: FY20 Highlights – Delivering on Strategic Agenda
FY20 Highlights – Delivering on Strategic Agenda Story Board Since October 2018 8 2019 2020 2021 ACHIEVEMENTS May19 acquired Industrial Supply • FY20 annual sales up 8% pcp › We continued our Group. Independent member Acquired C&L Tool Centre adding $14m of annual revenue and transformative growth b
Slide 9: COVID-19 Response
COVID-19 Response Successfully navigated a turbulent second half of FY20 9 IMPACT 2H-FY20 (JAN TO JUNE) OUR RESPONSE • Short-term growth • Group Sales declined • Proactive measures taken to • Solid repeat revenue base momentum was impacted approximately 40% in Q4/20 on ensure the long-term sustainab
Slide 10: FY20 Financial Highlights
FY20 Financial Highlights Results for announcement to the market 10 Positive performance and strong balance sheet despite impact by COVID-19 Movement Since TRADING PERFORMANCE FY 2020 BALANCE SHEET FY 2020 FY 19 Group Revenue $68.1m Up $5m or 8% $1.08m Cash 1 Underlying EBITDA $3.2m Up $1.3m or 68%
Slide 11: FY21 Trading Update
FY21 Trading Update 11 Group trading through unprecedented period. COVID-19 presents ongoing some uncertainty. § The group enjoyed a solid rebound in Sales in Sep’Q20 from Jun’Q20. Dec’Q20 sales anticipated to be similar to Sep’Q20. § Group Sales in 1H-21 on pcp 1H-20 will be lower overall driven by
Slide 12: Growth Strategy
12 Growth Strategy AGM 27 November 2020 ASX Code : SGI
Slide 13: A Changing Market and Customer Environment
A Changing Market and Customer Environment 13 New business models enabled by digital supply chains Industry boundaries are blurring § From wholesale model to direct-to-consumer model § From next week delivery to next day delivery § From next day delivery to same day delivery and to same hour deliver
Slide 14: Expanding Our Operating Model
Expanding Our Operating Model 14 2020 HOW WE GENERATE INCOME & PROFIT COMPANY BRANCH VENDING MACHINES DELIVERY EXTERNAL SALES FORCE CATALOGUE INBOUND LOGISTICS STORES INDEPENDENT INTERNAL SALES FORCE EDI BUSINESS ONSITE SERVICES TRADE STORES Offering more value to Customers EXPANSION IN THE COMING Y
Slide 15: Strategic Priorities – Our Focus in 2021
Strategic Priorities – Our Focus in 2021 Grow our Core Business by focusing on in High Impact Areas 15 1 2 3 4 5 Serve customers Expansion of Continue to build Complete value Significantly of all sizes and Store network, a fully integrated accretive expand our types increase Sales to product range,
Slide 16: FY2021 Investments that deliver longer term value creation
FY2021 Investments that deliver longer term value creation 16 Programs that will drive sales and profit uplift § Investment in Online digital capabilities, bigger physical store network, more distributors, and brand marketing. § Enhance customer value proposition, expansion of addressable markets an
Slide 17: Outlook
17 Outlook AGM 27 November 2020 ASX Code : SGI
Slide 18: Outlook for Calendar 2021
Outlook for Calendar 2021 We are well placed to benefit from numerous organic and strategic growth programs 18 The continued impact and potential government responses across key trading markets. The continued § Government restrictions overall, and more recently in Victoria, Adelaide and UK presents
Slide 19: Compelling Investor Value Proposition
Compelling Investor Value Proposition 19 INVESTMENT HIGHLIGHTS Long-term strategy, portfolio and prospects remains intact. § Share price not reflecting the value and potential of the company's aspirations, where we aim to outperform. § History of successful growth and continued development pathway.
Slide 20: Questions
20 Questions AGM 27 November 2020 ASX Code : SGI
Slide 21: Appendices
21 Appendices AGM 27 November 2020 ASX Code : SGI
Slide 22: Our Business
22 Our Business AGM 27 November 2020 ASX Code : SGI
Slide 23: Maintaining a Long-Term Orientated View Through our 2021-2025 Strategy
Maintaining a Long-Term Orientated View Through our 2021-2025 Strategy 23 Our strategy not just incremental – broader mindset to deliver material impact from organic & strategic events to maximise returns for our shareholders Improve financial § Our aim is to grow over $200 million Sales at an EBITD
Slide 24: FY20 Revenue, Underlying EBITDA and Sales Spread
FY20 Revenue, Underlying EBITDA and Sales Spread 24 REVENUE JOURNEY $m PRODUCT SALES MIX OF TOTAL SALES 2% 1% 90.0 2% 1% 1% 80.0 INDUSTRIAL 3% 3% 68.1 4% 70.0 63.1 PPE / SAFETY 4% 60.0 WORKWEAR 6% 50.0 MATERIALS HANDLING 40.0 FOOTWEAR 30.0 23.4 PACKAGING AND TAPES 14% 20.0 HYGIENE, CLEAN IN G, HEALT
Slide 25: Portfolio of Operating Subsidiary Brands
Portfolio of Operating Subsidiary Brands 25 www.heatleys.com.au www.cltoolcentre.com.au www.isgaus.com.au www.awsonline.com.au www.bsabrands.co.uk Broad range supplier and Broad Range distributor of Independent member-based An Online e-Store selling A joint venture with Bisley distributor of industr
Slide 26: Business Segment Overview
Business Segment Overview 26 Australia 83% FY20 Group Sales § Income is earned as a wholesaler, distributor, on seller, retailer of workplace products and provider of supply chain solutions through sales force, Online, physical store network, distribution centres, vending and onsite solutions. § Thi
Slide 27: Product Range – More than 300,000+ Products Available
Product Range – More than 300,000+ Products Available 27 VAST ASSORTMENT OF EVERYDAY WORKPLACE ITEMS PRODUCT CATEGORIES 30 sub-categories supported by leading brands Safety / PPE Industrial / MRO Workplace Materials Handling Retail Healthcare, Cleaning & Hygiene Hardware, Building & Construction SGI
Slide 28: C&L Tool Centre Acquisition
28 C&L Tool Centre Acquisition AGM 27 November 2020 ASX Code : SGI
Slide 29: C&L Overview
C&L Overview 29 ABOUT C&L TOOL CENTRE › Established in 1969, C&L is a market leading distributor of Industrial, Tooling, Safety/PPE, Workplace, and 50 Years trading history with Hardware, Building, Construction supplies to all types of Customers and strong business processes and Strong underlying re
Slide 30: Extracting Value Through Business Combinations
Extracting Value Through Business Combinations 30 EXTRACTING VALUE Purchasing Store & Distribution Back Office Product Range Sharing Best Online Cost and Revenue Synergies Efficiencies Integration Extension Practice eCommerce Synergies
Slide 31: Acquisition of C&L Tool Centre – Two Complimentary Businesses
Acquisition of C&L Tool Centre – Two Complimentary Businesses 31 Transaction status Acquisition of C&L successfully completed, with SGH holding a 100% interest 1 December settlement. Key Milestones Work progressing on the integration and extracting identified synergies expected to be commence in 2H
Slide 32: Transaction Summary
Transaction Summary 32 TRANSACTION SUMMARY $3.83m purchase price Cash, Scrip, Deferred consideration offer to acquire the shares in C&L Tool Centre Transaction Minimum profit threshold to be achieved before deduction of deferred consideration. Incentive in share of Profits greater than threshold Com
Slide 33: Disclaimer – Important Information
Disclaimer – Important Information 33 This document has been prepared by Stealth Global Holdings (the Company) and is provided for information purposes only. This or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited Party docu
Slide 34: End of Document
34 LAST PAGE End of Document AGM 27 November 2020 ASX Code : SGI
Stealth Group Holdings — Shareholder Meeting (November 2020) on 6ix