Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2020 Earnings Presentation
37 slides from Stealth's earnings presentation, Sep 1, 2020
Slide 1: Full Year Results Briefing Presentation FY20
AN AUSTRALIAN MULTINATIONAL DISTRIBUTION GROUP A supplier and distributor of essential everyday workplace items and provider of supply chain solutions to Business Customers (B2B) and to Retail Consumers (B2C) Full Year Results Briefing Presentation FY20 1 September 2020 ASX Code : SGI
Slide 2: Disclaimer
Disclaimer 2 This document has been prepared by Stealth Global Holdings (the Company) and is provided for information purposes only. or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited This document does not constitute an off
Slide 3: Contents
Contents 3 1. Section 1 – 2020 The Year in Review Page 4 2. Section 2 – Business Segments Page 13 3. Section 3 – Financial Results Page 18 4. Section 4 – Strategy, Growth and Outlook Page 22 5. Appendices Page 29 SGH Full Year Result Briefing Presentation FY20
Slide 4: 2020 The Year In Review
2020 The Year In Review Continued growth momentum “ Competitively advantaged as a diversified business, in different sectors, supported by a strong supply chain ”
Slide 5: Corporate Overview
Corporate Overview 5 SGI BOARD MEMBERS Chris Wharton AM CORPORATE SNAPSHOT SGI SHARE OWNERSHIP Chairman & Non-Executive Director ASX Code SGI Market Cap @ 25 August 2020 $6.64m Mike Arnold Group Managing Director Share Price @ 25 August 2020 7.0 cents & CEO High Net Worths 19% Net Debt @ 30 June 202
Slide 6: Group Overview
Group Overview An Australian multinational distribution group 6 Diversified business portfolio of Products, Customers, Suppliers, Industries served, a strong supply chain, all supporting reoccurring sales activity. › A supplier and distributor of essential everyday workplace items and provider of su
Slide 7: Some of our Exceptional People
Some of our Exceptional People 7 Strong sales and service capability with deep specialist technical knowledge. We employ over 150 personnel who are dedicated to a team oriented, customer focused environment. We are committed to hiring and developing the best and insist on the highest standards in cu
Slide 8: Product Range
Product Range 8 VAST ASSORTMENT OF ESSENTIAL EVERYDAY ITEMS PRODUCT CATEGORIES Access to 300,000+ products across 30 sub-categories supported by leading brands Safety / PPE Industrial / MRO Workplace Print & Promotional Retail Healthcare, Cleaning & Hygiene Hardware, Building & Construction More tha
Slide 9: 2020 The Year in Review: Key Numbers
Result FY20 2020 The Year in Review: Key Numbers Continued focus on growth – disciplined performance in challenging markets 9 Advantage from being a diversified business, being in different sectors, supported by a strong supply chain capability › Group Revenue $68.1 million, up 8% from $63.1 million
Slide 10: Full Year Revenue & Underlying EBITDA
Full Year Revenue & Underlying EBITDA Short-term growth momentum impacted as Australian borders closed and the UK market entered lock down. 10 GROWTH CONTINUED IN FY20 REVENUE $m UNDERLYING EBITDA $m 3.5 3.2 90.0 3.0 Revenue up 8% to $68.1m. Growth achieved despite 80.0 68.1 2.5 impact of COVID-19,
Slide 11: COVID-19 Impact Response – Well managed and reset for a stronger business
COVID-19 Impact Response – Well managed and reset for a stronger business Staff safety, wellbeing programmes in place, and flexible and remote work practices enacted 11 COVID-19 disruptions and changing consumer behaviour. The Company continues to monitor the situation and adapt its response plans a
Slide 12: 2020 The Year In Review: Operational and Strategic Highlights
2020 The Year In Review Operational and Strategic Highlights 12 › Australia business successful record full year sales, despite a sales decline of Q4 pcp 20.3%. Repeat recurring sales continued at lower levels, focused on customer segment expansion, building capability and transformational change. B
Slide 13: Section 2 – Business Segments
Section 2 – Business Segments “ Competitively advantaged as a diversified business, in different sectors, supported by a strong supply chain ”
Slide 14: Our Business Portfolio
Our Business Portfolio Subsidiary companies and key statistics within the group 14 A supplier and distributor of essential everyday workplace items and provider of supply chain solutions to Customers of all types and sizes. OUR BUSINESSES DEPTH AND SCALE Employees 153 Australia - Heatleys Product SK
Slide 15: Business Segment Overview
Business Segment Overview 15 Australia 83% Group Sales › Comprises mainly of income earned from business customer sales of essential everyday workplace items and supply chain solutions through sales reps, Online, physical distribution centres, trade branch stores, affiliate trade and retail store lo
Slide 16: Australian Operations achieved Record Sales in FY20
2020 The Year In Review Australian Operations achieved Record Sales in FY20 despite a sales decline in Q4 pcp by 20.3%. 16 Australian Operations represent approximately 83% of Group Sales, and achieved Record Sales in FY20 › Record annual revenue performance from its repeat customer sales activity,
Slide 17: International Operations
2020 The Year In Review International Operations 17 Continued investment in BSA Brands UK rollout, and major customer review in Africa BSA Brands United Kingdom – Safetywear and Workwear › Significant investment by BSA Brands in first year market penetration, $1.1m sales from zero base new market en
Slide 18: Section 3 – Financial Results
Section 3 - Financial Results Overview of financial statements “ Competitively advantaged as a diversified business, in different sectors, supported by a strong supply chain ”
Slide 19: Full Year Financial Highlights
Full Year Financial Highlights Results for announcement to the market 19 In the year we have continued to focus our investments on getting the settings right for the future. FULL YEAR 2020 HIGHLIGHTS TRADING PERFORMANCE FY 2020 Movement Since FY 19 P&L Revenue $68.1m Up $5m or 8% › Revenue of $68.1m
Slide 20: Full Year Results Reconciliation
Result FY20 Full Year Results Reconciliation 20 30 Jun 20 30 Jun 19 Reconciliation – Full-year financial results $’000 $’000 Underlying EBITDA1,2 3,185 1,920 Growth Related Investments: Investment in the establishment of BSA Brands in the United Kingdom market – brand awareness, promotion, point of
Slide 21: Full Year Balance Sheet and Cash Flow
Full Year Balance Sheet and Cash Flow 21 STATUTORY STATUTORY FULL YEAR 2020 HIGHLIGHTS BALANCE SHEET SUMMARY 30 JUN 2020 30 JUN 2019 $M $M BALANCE SHEET Cash and cash equivalents 1.1 2.0 Other current assets 16.5 22.7 › Cash position of $1.08m. Property, plant and equipment 0.7 0.6 › Net Debt of $1.
Slide 22: Section 4 – Strategy, Growth and Outlook
Section 4 - Strategy, Growth and Outlook “ Competitively advantaged as a diversified business, in different sectors, supported by a strong supply chain ”
Slide 23: Our Go-to-Market Growth Strategy
Our Go-to-Market Growth Strategy Building the essential distribution platform 23 An omnichannel approach providing a One-Stop-Shop for essential everyday items and fulfillment services Serving Business Customers (B2B) and to Retail Consumers (B2C) PRODUCT CATEGORIES TODAY’S BUSINESS EXPANDED BUSINES
Slide 24: Progress on our Strategic Agenda Since October 2018
Progress on our Strategic Agenda Since October 2018 24 › Our last 24 months has been the most transformative years in Stealth’s corporate history completing three acquisitions, establishing a Joint Venture in the UK with Bisley Workwear and growing sales from $23.5m to $68.1m in 2 years. 20 › Our pr
Slide 25: Transformational Growth Trajectory Since July 2018
Result FY20 Transformational Growth Trajectory Since July 2018 Listed on the ASX October 2018 25 Approximate Growth 30 June 2020 30 June 2019 30 June 2018 Since June 2018 › Statutory Revenue $68.1 million $63.1 million $23.5 million $44.6 million › Annual Sales to customers based in Australia $57.1
Slide 26: Strategic Growth Priorities in 2021
Strategic Growth Priorities in 2021 We are a growth company: - Our aim is to grow annual revenue to over $200 million at an EBITDA margin of 8% plus in 2025 26 Continue to invest in expansion: We set the bar high to trigger growth events where we stand to outperform BUILDING AUSTRALIA’S LEADING MULT
Slide 27: Outlook
Outlook Result FY20 High Impact Strategies that create long-term shareholder value. 27 We are cautiously optimistic of favourable market share gain by an extremely rapid allocation of growth events. We will maintain our disciplined investment approach & optimisation of our distribution network. In F
Slide 28: Compelling Investor Value Proposition
Compelling Investor Value Proposition 28 INVESTMENT HIGHLIGHTS 1 › Competitively advantaged offering with diversified portfolio, repeat customers and end markets coverage. 2 › An Industry leader in large, fragmented and highly-attractive market. History of successful growth. 3 › Multiple levers for
Slide 29: Section 5 – Appendices
Section 5 - Appendices “ Competitively advantaged as a diversified business, in different sectors, supported by a strong supply chain ”
Slide 30: Our Supply Chain Network
Our Supply Chain Network Serving more than 3,000 Business Customers (B2B) and 34,000 Retail Consumers (B2C) 30 GROUPS DEPTH AND SCALE Employees 153 Branch Locations 9 Independent Merchant Trade Stores 25 Australia Affiliate Distributor Trade & Retail Stores 78 International Product SKU’s held in our
Slide 31: Group Locations
Group Locations 31 Bisley Workwear stocked in 74 UK trade stores NORTH Australia locations 8 Distributors NORTHERN TERRITORY MIDLANDS 1x ISG Member 12 Distributors NORTHERN IRELAND 8 Distributors SOUTH 46 Distributors QUEENSLAND 8 x ISG Members KALGOORLIE 1x Heatleys store 1,700sqm DC. PERTH NEW SOU
Slide 32: Heatleys Australia Operations
Heatleys Australia Operations Our largest customer and service markets are currently Western Australia & South Australia 32 CANNING VALE WINGFIELD BRANCH OFFICE (SA) BRANCH OFFICE / DISTRIBUTION CENTRE (WA) KALGOORLIE BRANCH OFFICE BASSESNDEAN BRANCH OFFICE (WA) (WA) BUNBURY BRANCH OFFICE (WA) SGH F
Slide 33: A Look Inside Of A Heatley's Trade Store and Distribution Centre
A Look Inside Of A Heatley's Trade Store and Distribution Centre 33 INSIDE OUR DISTRIBUTION CENTRES INSIDE OUR TRADE STORES SGH Full Year Result Briefing Presentation FY20
Slide 34: A Look at BSA Brands (UK)
A Look at BSA Brands (UK) 34 Launch May19 to 48 new customers Instore ‘Trade Retail Bristol Birmingham Shop’ Manchester Edinburgh London (L to R – James Cartwright, Jo Dalton, Jessica Rich, Adam Sherwood, David Gazal, Mike Arnold, Toni Westlake, Luke Cruskall, Jo Dyson) Investment in Customer Trade
Slide 35: Sales Channels and Customer Markets
Sales Channels and Customer Markets Reaching our Customers Across Multiple Industries 35 Customers benefit from our vast selection of products, purchasing power, comprehensive distribution network, and the convenience of multiple choice for supply. CONNECTING OUR VAST SELECTION OF & SERVICES ACROSS
Slide 36: Peer and Competitor Landscape Sample
Peer and Competitor Landscape Sample 36 E-Commerce 1 Competitors includes Amazon, Alibaba, eBay, Catch, Bunnings, Total Tools, Kogan, JD.com, Rakuten, etc… Business Competitors (extremely fragmented) 2 Grainger, Bunzl, Blackwood’s, Atom, Metcash, Amazon, Arco, Brady, various procurement houses, inde
Slide 37: Last Page
LAST PAGE Full Year Results Briefing Presentation FY20 1 September 2020 ASX Code : SGI 37
Stealth Group Holdings — FY2020 Earnings Presentation on 6ix