Slide 1: Investor Presentation: 2014 Year Results Road Show
For personal use only Investor Presentation 2014 Year Results Road Show Alexander Kachellek | Steven McGregor Korvest 2014 1
Slide 2: Agenda
Agenda For personal use only FY14 Key Points Financial Results Future Company Overview Korvest 2014 2
Slide 3: FY14 Key Points
FY14 Key Points For personal use only • Record annual revenue • Profit up by 46.5% on prior year – Major projects underpinned result • Day-to-day trading remains challenging • $1 special dividend paid in June • 31c final dividend on increased number of shares • Divestment of Indax announced Korvest
Slide 4: Introduction to Korvest
Introduction to Korvest For personal use only • Korvest (ASX:KOV) is headquartered in South Australia and provides cable and pipe supports, access systems for large mobile equipment, hydraulic tools and wrenches, and galvanising services • Listed in September 1970 • Korvest has sales offices warehou
Slide 5: Agenda
Agenda For personal use only FY14 Key Points Financial Results Future Company Overview Korvest 2014 5
Slide 6: Divisional Overview
Divisional Overview For personal use only Industrial Products Production Services Headcount 169 43 Revenue Contribution1 91.1% 8.9% EBIT Contribution1 76.0% 24.0% (1) Based on FY2014 reported revenue and EBIT Korvest 2014 6
Slide 7: Headline Numbers
Headline Numbers For personal use only June 2014 June 2013 % Change Sales $73.76m $61.72m 19.5% EBIT $7.66m $5.34m 43.4% Operating cashflow $4.23m $7.52m (43.8%) Earnings per share 64.1c 44.0c 45.7% Dividend per share 157.0c 46.0c 241.3% Profit After Tax • Revenue and EBIT boosted by 3719 4,000 impr
Slide 8: Trading Update: Industrial Products - EzyStrut
Trading Update Industrial Products For personal use only June 2014 June 2013 % Change Sales $67.2m $55.5m 21.1% EBIT $6.61m $3.81m 73.5% EBIT % 9.8% 6.9% Trading Update – EzyStrut • All states grew compared to prior year • Strong oil and gas project work on East and West coasts drove strong growth i
Slide 9: Trading Update: Industrial Products - Indax
Trading Update Industrial Products For personal use only June 2014 June 2013 % Change Sales $67.2m $55.5m 21.1% EBIT $6.61m $3.81m 73.5% EBIT % 9.8% 6.9% Trading Update – Indax • Announced intention to divest business • Impairment - Fixed assets by $263k, inventory by $415k Korvest 2014 9
Slide 10: Trading Update: Power Step & Titan
Trading Update Industrial Products For personal use only June 2014 June 2013 % Change Sales $67.2m $55.5m 21.1% EBIT $6.61m $3.81m 73.5% EBIT % 9.8% 6.9% Trading Update – Power Step & Titan • Disappointing results due to global slowdown in demand for mining equipment • New units and spare parts belo
Slide 11: Trading Update: Production Services - Korvest Galvanisers
Trading Update Production Services For personal use only June 2014 June 2013 % Change Sales $6.56m $6.21m 5.6% EBIT $2.09m $1.69m 23.7% EBIT % 31.9% 27.3% Trading Update – Korvest Galvanisers • Excellent overall result after strong 1H • Main plant internal and external volumes increased • Spin plant
Slide 12: Balance Sheet
Balance Sheet For personal use only ASSETS $m June 2014 June 2013 June 2012 Cash 0.5 2.4 5.2 Receivables 17.7 12.5 14.8 Inventories 11.3 9.5 8.6 Assets Held for Sale 1.5 - - Property, Plant & Equipment 15.9 17.5 17.4 Goodwill & Intangibles 1.8 2.1 - Total Assets 48.8 44.0 46.0 LIABILITIES Payables (
Slide 13: Dividends
Dividends For personal use only FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Interim 26c 26c 18c 11c 17c Special Interim 100c - 5c - - Final Dividend 31c 20c 30c 15c 15c Total Dividend 157c 46c 53c 26c 32c Franking 100% 100% 100% 100% 100% • $1 underwritten special dividend paid in June • 1.6 million sha
Slide 14: Agenda
Agenda For personal use only FY14 Key Points Financial Results Future Company Overview Korvest 2014 14
Slide 15: Future
Future For personal use only • Board renewal – Peter Stancliffe retires in September – Graeme Billings chairman elect – Replacement director being sought • Continued acquisition search – Dedicated internal resource • EzyStrut expands to Indax facility • Product innovation • ERP to go-live in 1H • Da
Slide 16: Agenda
Agenda For personal use only FY14 Key Points Financial Results Future Company Overview Korvest 2014 16
Slide 17: Industrial Products: Cable and Pipe Supports
Industrial Products For personal use only • Cable and pipe supports • Market leader in cable supports • Manufacturing facility in Kilburn, SA • Overseas supply chain • Sells to EPCMs, Wholesalers, and direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 18: Industrial Products: Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa • Apx. 60% export in recent years Kor
Slide 19: Industrial Products: Hydraulic Tools and Wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers Korvest 2014 19
Slide 20: Production Services
Production Services For personal use only • Longest galvanising kettle in Australia (14m) • South Australia’s only centrifuge plant (national market) • Predominantly structural work for SA projects or fabrications • In-house work for EzyStrut Korvest 2014 20
Slide 21: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Safety Access solutions for all large mobile equipment. www.powerstep.com.au Superior bolting solutions for any industry. www.titantools.com.au Quick turnaround galvanising of the largest, smallest, and mos