Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Merger or Acquisition (June 2024)
19 slides from Stealth's merger presentation, Jun 7, 2024
Slide 1: Acquisition of Force Technology International
ASX : SGI An Australian Distribution Company Acquisition of Force Technology International A market-leading wholesale distributor of Consumer Mobile Accessory Products Presentation by: Mike Arnold Friday June 7, 2024 © Stealth Group Holdings 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Stealth Group Holdings Ltd (the Company) and is provided for information purposes only. For personal use only opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this Thi
Slide 3: In brief, What I will cover today
In brief, What I will cover today… 01 Stealth Group Overview 02 Recent major acquisition announcement …Force Technology 03 About the Force Business 05 Strategic Rationale and Alignment 05 Pro forma Financial Overview 06 Strategy and Growth. 07 2024 Guidance 08 Shareholder returns. © Stealth Group Ho
Slide 4: Opening Remarks
OPENING REMARKS 01 © © Stealth Group Holdings Stealth Group Holdings 4 4
Slide 5: An Australian Distribution Company
An Australian Distribution Company About Stealth ► Founded in 2014, listed in 2018, Stealth is an Australian conglomerate headquartered in Perth, Western Australia. ► We operate a diversified portfolio in Australia spanning multiple sectors including industrial, retail and trade industries. ► The co
Slide 6: Business Units
Business Units Serving Business, Trade, Commercial, Retail Industrials Consumer (where does Force Fit) This structure supports Stealth’s diverse operations and facilitates, efficient management of individual business functions, and working together cohesively with shared infrastructure. © Stealth Gr
Slide 7: Key Message about the Force acquisition
Key Message about the Force acquisition In brief • Plug-and-Play fit. • Aligns with Stealth’s strategy: higher-margin, capital-light, cash-generative. • Diversified product ranges featuring own-label, private-label and exclusive brands. • Australia-wide distribution network. • Significant firepower
Slide 8: Strategic Rationale
Strategic Rationale Acquisition criteria since IPO in October 2018 Criteria fit Good strategic fit Sustainable Product Store Footprint & Diversified Products & Operational Acquisitions Date Revenue Services extensions & Geographic efficiencies customers and and Profit adjacencies opportunities marke
Slide 9: Transaction Summary
Transaction Summary Acquisition of Force Technology International • Stealth to acquire 100% of the shares in Force for approximately $9.5 million. Transaction • Implied multiple of <4x EV/EBITDA for FY24f and FY23a, before transaction costs. • Additional one-off outperformance cash incentive if spec
Slide 10: We are a much larger Company
We are a much larger Company We are a stronger than we’ve ever been, well-positioned to capitalise on the growth opportunities. Key Numbers 1 Revenue FY24f Normalised EBITDA FY24f $159.0m Application $8.5m • Reaching customers everywhere. Of products we sell are Team Members Non-discretionary items
Slide 11: Overview of Force Technology
Overview of Force Technology 02 © © Stealth Group Holdings Stealth Group Holdings 11 11
Slide 12: About Force Technology International
About Force Technology International HIGHLIGHTS Headquarters Perth, Western Australia. Founded 1992 32-year business under same ownership. Sales & Profit $44 million of revenue, c.$2.5m EBITDA before transaction costs. It is cash generating. Business Model Wholesale distribution: designs, manufactur
Slide 13: Consumer Accessory Products
Consumer Accessory Products CASES POWER BANK WALL CHARGER WIRELESS CHARGING TECHNOLOGY USB HUBS / ADAPTORS SCREEN GUARDS LIFESTYLE AUTOMOTIVE CHARGING CABLE HEADPHONE AUDIO POWER SPEAKER POPSOCKETS SUPPORT WIRELESS LENS PROTECTION CASE PROTECTION POWER POWER © Stealth Group Holdings 13
Slide 14: Customer / Channels
Customer / Channels Sample of key reseller channel partners. Telco FMCG/Convenience Consumer Electronics Independents Online % of Total 21% 20% 39% 20% Sales Products ranged in more than 3310 reseller stores © Stealth Group Holdings 14
Slide 15: Brand Product Distribution
Brand Product Distribution driving performance by a well-balanced distribution portfolio Own label brand Exclusive distribution Distributed Brands Bespoke % of Total Sales 30% 36% 15% 19% Quality, Leading Brands © Stealth Group Holdings 15
Slide 16: Expansion opportunities within every workplace
Expansion opportunities within every workplace © Stealth Group Holdings 16
Slide 17: Key Messages
Key Messages In brief • Plug-and-Play fit. • Aligns with Stealth’s strategy: higher-margin, capital-light, cash-generative. • Diversified product ranges featuring own-label, private-label and exclusive brands. • Australia-wide distribution network. • Significant firepower to grow. • Mobile accessori
Slide 18: Financial Guidance FY24
Financial Guidance FY24 We will exceed our FY23 results In brief Growth FY24 v FY23 Year-on-Year Sales Growth ↑ +2% to +5% range Gross Profit as a % of sales ↑ 29% to 31% range EBITDA, NPBT and NPAT ↑ Up +25% Earnings per share growth (excluding Force acquisition) ↑ Up +25% Capital expenditures ↑ Up
Slide 19: Last slide
Last slide © Stealth Group Holdings 19
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