Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Investor Presentation (June 2021)
36 slides from Stealth's investor presentation, Jun 9, 2021
Slide 1: Acquisition of Skipper Transport Parts
An Australian Multinational Distribution Group Investor Presentation ACQUISITION OF SKIPPER TRANSPORT PARTS 1 June 2021 | www.stealthgi.com
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer 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 document
Slide 3: Table of Contents
Table of Contents Transaction Summary 04 About Skipper Transport Parts 06 Transaction and Rationale 10 Strategic Priorities and Growth 18 Appendices 25 - About Stealth Global Holdings 26 "We are stronger, larger, more relevant, and diversified as a result of the STP acquisition" June 2021 | www.stea
Slide 4: Transaction Executive Summary
Transaction Executive Summary • Acquisition of Skipper Transport Parts ‘STP’. • SGI will acquire the net assets of STP, a division of AMCAP Distribution and its parent Eagers Automotive Limited, Australia's largest motoring group. Transaction • Purchase price of $4.2 million for the business assets
Slide 5: Key Benefits
Key Benefits Shareholders benefit from a larger, stronger, more relevant, diversified business as a result of the STP acquisition. Strong EPS accretion after $18 million revenue and $1.1m Standard trading agreement for 3-year period. EBITDA1 contribution pre-$10m revenue synergies. Compelling SGI an
Slide 6: About Skipper Transport Parts
About Overview of Skipper Transport Parts 07 STP Revenue Streams 08 Attractive Financials 09 6 June 2021 | www.stealthgi.com www.skippertp.com.au 6
Slide 7: Overview of Skipper Transport Parts
Overview of Skipper Transport Parts • Rebranded to Skipper Transport Parts in 2016. Formerly Customer Markets Overview Sample of Market Leading Supplier four COV’s and Coventry’s Automotive branches with a Brands long operating history. • Wide-Range distributor of Industrial ― Automotive products ‘M
Slide 8: STP Revenue Streams
STP Revenue Streams Vast assortment of customers and industries served with recurring sales and contract backed supply arrangements. STP trade with a vast selection of 1,250+ account customers, large, medium, STP generates its sales from four principal sources small across multiple industries and in
Slide 9: Attractive Financials
Attractive Financials STP’s Financial Profile ($m) STP performance Annual Sales Underlying EBITDA Underlying profit • Year to date sales have been solid with recurring sales. before tax • Trading not impacted by COVID-19. • Growth across all sectors (mining, automotive, agriculture, 12 months 12 mon
Slide 10: Transaction and Rationale
Transaction and Rationale Rationale is Commercially Compelling 11 1. Customer Markets and Product Diversification 12 2. Exposure to Fast Growing Customer Segments 13 3. Portfolio of Market Leading Brands 14 4. Greater Geographical and Operational Footprint 15 5. Positive Financial Impact 16 Financia
Slide 11: Rationale is Commercially Compelling
Rationale is Commercially Compelling Accelerates and aligns to SGI’s strategy = greater scale provides significant opportunity. • Collective group product offering better placed to pursue growth opportunities through enhanced brand and wider-range portfolio. 01 Customer markets and • Significant exp
Slide 12: Customer Markets and Product Diversification
1. Customer Markets and Product Diversification STP improves SGI’s customer and market channel diversification, enhances Industrial MRO product range and exposure to Automotive, Truck & Trailer, Mining, Agricultural, Bus and Industrial markets. Customer and channel diversification Industrial MRO, Sa
Slide 13: Exposure to Fast Growing Customer Segments
2. Exposure to Fast Growing Customer Segments Significantly wider product range offering across all businesses. One-stop-shop for all brands. Product expansion P Draw on the strengths and advantages of each business 01 Industrial and Hardware Existing P Existing P Existing P P in the Group to levera
Slide 14: Portfolio of Market Leading Brands
3. Portfolio of Market Leading Brands Wide ranging product offering and high-touch solutions models for every industry. Popular product categories across our portfolio of leading brands with access to more than 1 million+ supplies And more… June 2021 | www.stealthgi.com 14
Slide 15: Greater Geographical and Operational Footprint
4. Greater Geographical and Operational Footprint Stronger Australian network reach to better serve customers. People, Stores, Products Australian Operational Footprint 190 Employees ― 11 Branch Store Locations ― ― 16 On-site Store Locations at Combined Customer Sites ― capability including STP ― ―
Slide 16: Positive Financial Impact
5. Positive Financial Impact Increased scale, diversification and market relevance for the consolidated SGI group. Benefit Increased Annual Sales and Earnings (2) • Strengthens financial profile, adding ~$18m annual Annualised Revenue Range $90m + revenue, increasing annual group revenue to $90m+ pr
Slide 17: Financially Compelling Returns for Shareholders
Financially Compelling Returns for Shareholders Access to attractive markets, with favourable drivers. Benefit • Potential increased market capitalisation Immediately $5m available Increased market relevance post acquisition and more liquid security. EPS Accretive working capital ― ― (1) (2) Pre-Syn
Slide 18: Strategic Priorities and Growth
Strategic Priorities and Growth Post acquisition of STP Strategy with STP 19 How we are Expanding 20 Our Team 21 Our Culture 22 18 June 2021 | www.stealthgi.com 18
Slide 19: Strategy with STP: Future Direction Key Drivers
Strategy with STP: Future Direction Key Drivers Focus for the Synergies Product range Financial Priorities coming years Driving scale benefits and margin Increase range and merchandising Onboard and enhance partnerships improvement by leveraging volume buying to include Safety, Hardware, commercial
Slide 20: How We Are Expanding Offering More To Customers
How We Are Expanding Offering More To Customers HOW WE GENERATE INCOME & PROFIT TODAY Stronger business offering more value to Customers 1. Bigger Physical Store Network COMPANY BRANCH VENDING MACHINES DELIVERY EXTERNAL SALES FORCE CATALOGUE INBOUND LOGISTICS STORES 2. Regionally strong in Western A
Slide 21: Experienced Team Delivering Growth Strategy
Experienced Team Delivering Growth Strategy SGI has a clear growth strategy, stable management team and proven track record. Mike ARNOLD Luke CRUSKALL John BOLAND Brendan ROSSITER Jessica RICH Phil PODGORSKI Peter REED Group Managing Director Group Chief Operating Group Chief Financial Group Financi
Slide 22: Our Culture Underpins Our Success
Our Culture Underpins Our Success Each business within the SGI Group has its own distinct culture aligned to the Group’s vision, which has greatly contributed to its success. SGI is committed to building and growing a thriving business for the future. Creating value for all stakeholders SGI's succes
Slide 23: Key Message to Shareholders
Key Message to Shareholders SGI has continued to grow organically and by acquisition. We have a clear strategy and actions to drive share growth. Our aim is to establish a large-scale market leading distributor of Industrial MRO, Safety and Workplace supplies and other related products and services.
Slide 24: History of Consistent Strategic Growth Since IPO
History of Consistent Strategic Growth Since IPO SGI is considerably undervalued - Strong foundation established for future growth. Established Joint Venture March 19 HY reported results 31 Dec 20 Supportive Market Growth Trends with Bisley Workwear in the United Kingdom $30m Revenue BSA Brands (UK)
Slide 25: Appendices
Appendices 25 June 2021 | www.stealthgi.com 25
Slide 26: About Stealth Global Holdings
About Stealth Global Holdings Corporate Overview 27 Strong Track Record 28 Our Vision 29 Our Story 30 Our Business Model 31 Our Businesses 32 Our Wide-Ranging Products 33 Our Locations 34 Our Objective 35 26 June 2021 | www.stealthgi.com www.skippertp.com.au 26
Slide 27: Corporate Overview
Corporate Overview Corporate Summary SGI Board Well balanced experienced team, established to support SGI Ownership @ 8 June 2021 today's business and its future direction ASX Code SGI Chris Wharton AM 23% Directors and Market Cap $11.5 million Chairman & Non-Executive Director Management Share Pric
Slide 28: Strong Track Record of Acquisitions and JV's
Strong Track Record of Acquisitions and JV’s We have been establishing a significantly stronger business. SGI has a disciplined framework to acquire, manage and integrate businesses. Since October 2018, SGI Company SGI lists on the Acquired WA SGI and Bisley Acquired Acquired Acquired SGI will acqui
Slide 29: Our Vision for the Combined Group
Our Vision for the Combined Group Establish a large-scale Hold an advantaged Draw on the strengths market leading distributor market position and advantages A one-stop-shop for Using a combination of our of each business in the Group Industrial MRO, Safety and wide assortment of products and to leve
Slide 30: Our Story
Our Story From its foundation in 2014, SGI listed on the Australian Securities Exchange in October 2018. Of industrial maintenance, repair, operating (MRO), safety, & OUR PORTFOLIO OF BUSINESSES SGI is a wide-range distributor workplace supplies and related products and services. are leading brands
Slide 31: Our Business Model Supply Chain Simplified
Our Business Model Supply Chain Simplified Creating value for different customers – Access Stock, Anywhere, Anytime. How we manage customer orders through the SALES - FULFILLMENT - DISTRIBUTION - DELIVERY CYCLE CUSTOMER ORDER ORDER COLLECTION DELIVERY TO 01 GENERATION 02 ORDER FULFILLMENT 03 or DIST
Slide 32: Our Businesses
Our Businesses Supplies and Solutions for Every Industry. From 1 August 2021 www.heatleys.com.au www.cltoolcentre.com.au www.isgaus.com.au www.bsabrands.co.uk www.skippertp.com.au Wide-range distributor of Wide-range distributor of Independent member-based A joint venture with Bisley A leading parts
Slide 33: Endless Assortment of Industrial MRO Products
Endless Assortment of Industrial MRO Products Supplies and Solutions for Every Industry. POPULAR CATEGORIES WIDE-RANGE OF MORE THAN 1 MILLION PRODUCTS AVAILABLE Safety / PPE Industrial / MRO Workplace Materials Handling Healthcare, Cleaning & Hygiene Hardware, Building & Construction Automotive Truc
Slide 34: Our Group Locations
Our Group Locations We have invested heavily establishing 117 new store network locations since March 2019. UK Active Stockist Overview locations Stockists of 80 Bisley Workwear Australia • 11 Company Branch Stores. • 16 Onsite locations. • 23 Partner independent merchant Port Headland locations. Ka
Slide 35: Our Objective is to Provide a Satisfactory Return to Shareholders
Our Objective is to Provide a Satisfactory Return to Shareholders Each business within the SGI Group has its own distinct value aligned to the Group’s strategic pathway. SGI is committed to building and growing a thriving business for the future. Creating Shareholder Value SGI's success is underpinn
Slide 36: June 2021 | www.stealthgi.com
June 2021 | www.stealthgi.com 36
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