Slide 1: Results for Six Months Ended 31 December 2002
Coventry Group Ltd ABN 37 008 670 102 Results for Six Months Ended 31 December 2002 Presentation by Chris Glenn, Managing Director and Stephen Cooper, Chief Financial Officer
Slide 2: Result Highlights
&y Result Highlights Vv VV VW VW W Net profit before tax and significant items up $3.1 million to $8.3 million. EBIT (before significant items) up 55% to $9.3 million. EPS up strongly to 14.7 cents. Consolidated EBIT/sales margin up to 4.4% from 3.1%. Sales revenue up 9% to $211.3 million. Net inter
Slide 3: Financial Overview
ZV Financial Overview FY02 FY03 $M FY01 H1 H2 TOTAL H1 Working Capital 110.7 112.2 4445 111.5 109.3 Non-current assets 98.6 98.0 94.8 94.8 91.9 Capital employed 158.4 156.6 155.9 155.9 161.3* Sales 359.5 194.1 200.4 394.5 211.3 EBITDA 16.1 10.1 14.3 24.4 13.4 Depreciation 6.2 3.3 3.2 6.5 3.1 EBITA 9
Slide 4: Financial Overview
ZN Financial Overview Sales growth continues, particularly in industrial products. Reduction in non-current assets due to sale of property (used to retire debt). » No further closure costs for CAP Victoria. » Effective tax rate has reduced to 40%, and should reduce further with grouping of CAP losse
Slide 5: Key Ratios
& Key Ratios FY02 FY03 FY01 H1 H2 TOTAL H1 Profitability ratios * EBITDA/Sales 4.5% 5.2% 7.1% 6.2% 6.3% EBITA/Sales 2.8% 3.5% 5.5% 4.5% 49% EBIT/Sales 24% 3.1% 5.1% 4.1% 44% EBIT/Net interest expense (times) 10.6 72 10.2 8.8 9.5 Return ratios * Return on assets 3.9% 5.4% 88% 7.2% 8.2% Return on capi
Slide 6: EPS and Dividends
FY02 FY03 FY01 H1 H2 TOTAL H1 EPS — cents 21.9 2.8 10.6 13.4 14.7 Dividend per share — 30.0 8.0 12.0 20.0 14.0 cents Franking % 100% 100% 100% 100% 100% » High interim dividend payout, but fully covered by earnings. > Current policy is to distribute high proportion of earnings. > Dividend reinvestme
Slide 7: Automotive Parts Distribution
&y Automotive Parts Distribution FY02 FY03 $M FY01 H1 H2 TOTAL H1 Working Capital 58.4 60.6 56.5 56.5 55.6 Non-current assets 48.7 47.3 45.9 45.9 46.3 Capital employed 105.9 106.7 100.9 100.9 99.3 Sales 202.9 105.9 108.5 214.4 113.9 EBITDA * 14 17 4.0 5.7 3.5 Depreciation 2.8 1.4 1.3 27 1.3 EBITA *
Slide 8: Automotive Parts Distribution
&y Automotive Parts Distribution >» EBIT up strongly, but ongoing losses of CAP are having a significant impact. >» Sales up 7%, and EBIT up 31%, in established WA and SA businesses. Acquired full ownership of CAP. Opened new branch in Buranda, Queensland and acquired Motor Torque business in Cairns
Slide 9: Industrial Product Distribution
a& Industrial Product Distribution FY02 FY03 $M FY01 H1 H2 TOTAL H1 Working Capital 41.9 42.8 42.7 42.7 43.3 Non-current assets 33.7 33.2 32.4 32.4 31.2 Capital employed 74.8 75.2 74.2 74.2 73.6 Sales 128.7 75.7 77.4 152.8 85.5 EBITDA 11.4 7.6 8.3 15.9 9.5 Depreciation 2.2 4.2 4.2 2.4 1.2 EBITA 9.2
Slide 10: Industrial Product Distribution
&y Industrial Product Distribution >» 13% sales growth, driven by demand from infrastructure projects in WA and QLD. >» Net profit margin continues to improve through better purchasing, improved sales mix and value added service. » Construction fastener business, Infix, continues to grow with openin
Slide 11: Bitumen Products
&y Bitumen Products FY02 FY03 $M FY01 H1 H2 TOTAL H1 Working Capital 1.8 2.1 1.7 17 1.7 Non-current assets 27 3.1 2.8 2.8 3.4 Capital employed 4.4 5.1 4.4 4.4 4.8 Sales 16.4 6.4 8.4 14.8 6.9 EBITDA 3.2 1.0 1.8 2.8 1.0 Depreciation 0.5 0.2 0.3 0.5 0.2 EBITA 2.7 0.8 15 2.3 0.8 Amortisation - - - - - E
Slide 12: Bitumen Products
&y Bitumen Products » Seasonal business — second half usually stronger. Flat performance in a competitive market. Production cost savings to flow from new asphalt plant to be operational in May 2003 (joint facility with CSR Emoleum). » Increase in bitumen price will put pressure on net profit margin
Slide 13: Gasket Manufacturing
& Gasket Manufacturing FY02 FY03 $M FY01 H1 H2 TOTAL H1 Working Capital 6.6 7.1 7.1 7.1 5.9 Non-current assets 3.4 3.6 3.5 3.5 3.6 Capital employed 10.0 10.6 40.3 40.3 9.4 Sales 14.4 7.1 7.7 14.8 6.7 EBITDA 24 1.0 14 2.4 0.9 Depreciation 0.4 0.2 0.2 0.4 0.3 EBITA 2.0 08 1.2 2.0 0.6 Amortisation - -
Slide 14: Gasket Manufacturing
&y Gasket Manufacturing » Revenue down due to loss of major supply contract. > Net profit margin affected by restructuring costs associated with the above, and additional marketing costs. >» A large proportion of lost revenue has now been replaced. 14 &} coventry Group Ltd
Slide 15: Outlook
&y Outlook >» Continued growth in number of registered vehicles should underpin automotive parts business. >» Positive outlook for industrial business, with ongoing demand from infrastructure developments. » WA bitumen market to remain competitive, but production cost savings will assist profitabili
Slide 16: Trading Names
&y Trading Names Automotive Coventrys Motor Traders Coventry Auto Parts Industrial Bitumen Gaskets Coventry Fasteners Hot Mix AA Gaskets infix Bitumen Emulsions NZ Gaskets Queensland Fasteners Sweetman Fasteners Top End Fasteners Universal Fasteners Associated World Bearings Cooper Fluid Systems Cov