Coventry Group Limited · ASX:CYG
Coventry — H1 FY2004 Earnings Presentation
18 slides from Coventry's earnings presentation, Mar 3, 2004
Slide 1: Results for Half Year Ended 31 December 2003
ABN 37 008 670 102 Results for Half Year Ended 31 December 2003 Presentation by Chris Glenn, Managing Director and Stephen Cooper, Chief Financial Officer
Slide 2: Result Highlights
gy Result Highlights > Net profit before tax and significant items up $2.4 million to $10.7 million. EBIT* up 22% to $11.4 million. EPS up from 14.7 cents to 21.1 cents. Consolidated EBITA/sales margin* up from 4.9% to 5.6%. Sales revenue up 3% to $217.0 million. Net interest cover* up to 17.3 times
Slide 3: Financial Overview
4\) Financial Overview FY03 FY04 $M FY01 FY02 H1 H2 TOTAL H1 Working Capital 110.7 111.5 109.3 110,7 110.7 108.9 Non-current assets 98.6 94.8 91.9 86.7 86.7 86.9 Equity 158.4 155.9 161.3" | 162.8" 162.8" 166.1* Sales 359.5 394.5 211.3 204.2 415.5 217.0 EBITDA 16.1 24.4 13.4 13.3 26.7 15.3 Depreciati
Slide 4: Financial Overview
ZY Financial Overview ® Slower sales growth. >» Effective tax rate has reduced from 40% to 30% as CAP losses were grouped for the full half, and brought forward CAP losses were utilised. >» $5.5 million of future tax benefits (not booked) to be realised over several years, arising from accumulated C
Slide 5: Profitability, return and gearing ratios
FY03 FY04 FY01 | FY0O2 H1 H2 | TOTAL H1 Profitability ratios * EBITDA/Sales 4.5% 6.2% 6.3% 6.5% 6.4% 7.0% EBITA/Sales 2.8% 45% 49% 5.0% 49% 5.6% EBIT/Sales 24% 4.1% 4AN 48% 4.5% 5.2% EBITA/Net interest expense (times) 11.9 a7 10.4 417 41.4 17.3 Return ratios * Return on assets 3.9% 7.2% 8.2% 8.5% 8.
Slide 6: EPS and dividends
FY03 FY04 FY01 | FY02 H1 H2 TOTAL H1 EPS ~ cents 21.9 | 13.4 14.7 16.8 31.5 21.1 Dividend per share — | 30.0 20.0 14.0 16.0 30.0 16.0 cents Franking % 100% | 100% | 100% | 100% | 100% 100% > High final dividend payout, fully covered by earnings. >» Current policy is to distribute high proportion of
Slide 7: Automotive Parts Distribution
2 Automotive Parts Distribution FY03 FY04 $M FY02 | H1 H2 TOTAL H1 Working Capital 56.5 55.6 52.0 52.0 53.3 Non-current assets 11.7 12.3 9.6 9.6 9.8 Capital employed 66.7 66.3 60.2 60.2 61.6 Sales 214.4 113.9 113.7 227.6 118.2 EBITDA * 3.3 23 3.9 6.2 4.5 Depreciation 2.3 414 1.4 2.2 1.0 EBITA * 1.0
Slide 8: Automotive Parts Distribution
4) Automotive Parts Distribution > Strong performance by Coventrys in WA, but a slight softening of sales for Motor Traders in SA. Opened new branch in Bibra Lake, WA. Continued strength in resources sector assisted WA performance. Trading performance for CAP NSW only marginally better than prior co
Slide 9: Industrial Products Distribution
G Industrial Products Distribution FY03 FY04 $M FY02 H1 H2 | TOTAL H1 Working Capital 42.7 43.3 42.9 42.9 41.9 Non-current assets 30.4 29.8 28.4 28.4 27.8 Capital employed 72.2 72.2 70.5 70.5 68.8 Sales 162.8 85.5 79.8 165.3 88.4 EBITDA 15.7 9.4 8.0 174A 9.9 Depreciation 24 12 4.4 2.3 44 EBITA 13.3
Slide 10: Industrial Products Distribution
4 Industrial Products Distribution > Modest sales growth of 3%. > Margin growth from increased level of purchase rebates, and expense discipline. » Continued strong performance in WA and QLD, assisted by strength in the resources sector. > Good profit contribution by Infix, the specialist constructi
Slide 11: Bitumen Products
4\) Bitumen Products FY03 FY04 $M FY02 H1 H2 | TOTAL!) #H1 Working Capital 17 1.7 1.0 1.0 4.2 Non-current assets 1.8 2.1 44 4.1 4.0 Capital employed 3.4 3.7 5.0 5.0 5.2 Sales 14.8 6.9 6.7 13.6 5.9 EBITDA 27 0.9 0.9 1.8 0.6 Depreciation 0.5 0.2 0.2 0.4 0.2 EBITA 2.2 0.7 0.7 1.4 0.4 Anortisation - - -
Slide 12: Bitumen Products
Zy Bitumen Products » Reduced performance mainly caused by loss of key local government contract. > Start-up problems at new asphalt manufacturing plant largely resolved so that production cost savings can be realised. 2 & Coventry Group Ltd
Slide 13: Gasket Manufacturing
gy Gasket Manufacturing FY03 FY04 $M FY02 H1 H2 TOTAL H1 Working Capital 7.1 5.9 5.2 5.2 45 Non-current assets 3.5 3.5 3.5 3.5 3.4 Capital employed 10.3 9.4 8.6 8.6 7.8 Sales 14.8 6.7 5.8 12.5 6.4 EBITDA 24 0.8 0.8 17 141 Depreciation 0.4 0.3 0.2 0.5 0.2 EBITA 2.0 0.6 0.6 1.2 0.9 Amortisation - - -
Slide 14: Gasket Manufacturing
4 Gasket Manufacturing >» Higher net margins achieved from reduced cost of imported raw materials, and expense reduction. 14 & Coventry Group Ltd
Slide 15: Strategy: Operations
4 Strategy Operations Supply chain initiatives, eg. centralising of purchasing. Distribution centre review. Information and communications technology strategy and investment. ERP and warehouse management systems. Business process improvement initiatives, eg. Freight optimisation and business plannin
Slide 16: Strategy: Growth
gy Strategy Growth Investing in businesses to build market share in existing operations of automotive and industrial. Targeting growth opportunities which will leverage our existing competencies in industrial and automotive markets with a focus on distribution. 16 4) Coventry Group Ltd
Slide 17: Outlook
4 Outlook * Trading conditions to remain satisfactory. « Levels of competition are increasing. * Earnings growth to slow a little. « CAP continues to be a focus. * Continuing to look for bolt on acquisitions. 17 @ Coventry Group Ltd
Slide 18: Trading Names
4 Trading Names Automotive Coventrys Motor Traders Coventry Auto Parts Drivetrain 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 S