Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2023 Earnings Presentation
31 slides from Stealth's earnings presentation, Sep 7, 2023
Slide 1: 2023 full-year results briefing presentation
2023 full-year results briefing presentation September 7, 2023 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 1
Slide 2: Disclaimer
SGI. ASX Disclaimer For personal use only This document has been prepared by Stealth Global Holdings Ltd (the Company) and is provided for information purposes only. This forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, thi
Slide 3: We are building Australia's company of choice for Industrial Supplies and Solutions
SGI. ASX We are building Australia’s company of choice for Industrial Supplies and Solutions. 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 3
Slide 4: Content
Content Sections Presenter CEO Overview Mike Arnold Finance Review John Boland CFO Strategic Progress Mike Arnold Summary & Outlook Mike Arnold Supplementary Information 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 4
Slide 5: Opening Remarks
Opening Remarks A record performance 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 5
Slide 6: Corporate information
OVERVIEW Corporate information General Information Board of Directors Chris Wharton AM ASX Code SGI Chairman & Non-Executive Director Website http://www.stealthgi.com Industry/Sector Trading Companies & Distributors Total Shares 99.7 million Mike Arnold Group Managing Director Share Price @ 30 Augus
Slide 7: Our Commitment, Our Model, Our Goal
Our Commitment Sustainable long-term growth and delivering shareholder value. Favourable Industrial market characteristics …… Our Model • Supply non-discretionary products and services We provide industrial products and solutions for every workplace. • Resilient end-market demand • Attractive consol
Slide 8: Strategic Progress
DRIVING OUR STRATEGY FORWARD THROUGH FOCUSED EXECUTION Strategic Progress 01 02 03 04 05 Long-term Rightsizing Profitable Supplier consolidation Well-positioned view growth Streamlined our supplier processes, Evolved to a larger market player. Maintained focus on Rightsizing activities Progressed us
Slide 9: Revenue growth between 2018 – 2023
OVERVIEW Growth between 2018 – 2023 Quick facts… Revenue growth between 2018-2023 to 2025 target Illustrative market growth opportunity QUICK FACTS… 2018 2023 Revenue ($m) 24.0 111.0 +200m # Acquisitions completed 1 7 Target 2025 # Employees ~40 ~200 36.5% CAGR 200 # InStock Products 0 200,000 111m
Slide 10: FY23 Highlights
FY23 Highlights A record performance in FY23 Mike Arnold Managing Director & CEO 2023 Stealth Global Holdings (SGI. ASX) 10
Slide 11: Key Messages from 2023
FY23 HIGHLIGHTS Key Messages from 2023 Strong operating model underpinning strategic progress Financial benefits Rightsizing benefits • Strong sales, profit and cash growth. • Improved cost structure • 2H exceeded 1H and all prior periods. • Closed (8) onsite stores - unprofitable • Successful infla
Slide 12: Group performance summary
FY23 HIGHLIGHTS Group performance summary Year ended 30 June ($m)1 2023 2022 Var % Revenue 111.0 101.8 9.0 Revenue (excluding UK discontinued operations) 111.0 99.6 11.4 Earnings before interest, tax, depreciation and amortisation (from continuing operations) 5.3 4.0 32.5 Earnings before interest an
Slide 13: 2023 Operational Highlights
DRIVING OUR STRATEGY FORWARD THROUGH FOCUSED EXECUTION 2023 Operational Highlights Unification across banners Portfolio Rightsizing New Customer Contracts Central Purchasing Office The effectiveness of our investments Merger of acquisitions made in FY22 Secured new customer contracts with a Objectiv
Slide 14: Enhanced go-to-market models
FY23 HIGHLIGHTS Enhanced go-to-market models Two go-to-market business models BUSINESS SOLUTIONS RETAIL SOLUTIONS Stealth’s go- to- market models serve multiple channels and varied customer CUSTOMER TYPE CUSTOMER TYPE needs. Large to mid-size to small businesses, professionals and Small individual r
Slide 15: Financial Performance
Financial Performance FY23 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 15
Slide 16: Income Statement
FINANCIAL RESULTS Income Statement Strong FY23 results, far-exceeding expectations, demonstrating resilience of the diversified business model Summary Results Commentary vs. Prior Year $millions FY23 FY221 Change % Sales increased 11.4% (reported) or 14.9% on a daily value basis. Revenue 111.0 99.6
Slide 17: Cash Flow
FINANCIAL RESULTS Cash Flow Summary Results Commentary vs. Prior Year (PY) $millions FY23 FY22 Strong cash generation overall. EBITDA 5.3 4.0 Operating Cash Flow 6.9 3.0 • Significantly improved full year cash conversion of 130%. Cash conversion % 130% 75% Interest (0.9) (0.6) • Operating cash flow
Slide 18: Balance Sheet
FINANCIAL RESULTS Balance Sheet Summary Commentary vs. Prior Year $millions 30 Jun-23 30 Jun-22 Working Capital Disciplined capital management. Cash 7.7 4.7 Trade and other receivables 17.1 18.1 • Total cash increased 63.8%. Inventories 14.8 14.1 • Net debt cut by 29.4%, to $7.2 million; $5.2 millio
Slide 19: Inventory
FINANCIAL RESULTS Inventory Commentary vs. Prior Year Inventory movement Inventory as % of annual sales Inventory reduced to 13.3% of sales down 90bps. 20.0% 16.1% 15.0% 14.2% • % of sales 280 bps lower from FY21 or $3m lower than FY21 % applied to FY23 revenue. 13.3% • Inventory investment was incr
Slide 20: Net Debt
FINANCIAL RESULTS Net Debt Group Net Debt Movement FY23 v FY22 Commentary vs. Prior Year 14.0 1.4 0.1 • $3.0m reduction in Net Debt in FY23, from $10.2m to $7.2m. 12.0 0.7 10.2 • $0.7m deferred settlement payments in FY23 relating to FY22 acquisitions of 10.0 United Tools Pty Ltd and United Tools Al
Slide 21: Outlook
Outlook 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 21
Slide 22: Well-positioned for future growth
LOOKING AHEAD Well-positioned for future growth FY24 Total Workplace Strategy 2023 Stealth edge • Accelerated growth 29% 3-year CAGR • Innovation and customer intimacy • Enhanced profitability and cash flows • Breadth of portfolio • Built large distribution network • Industry leadership target • Bro
Slide 23: What's ahead – our focus
LOOKING AHEAD What’s ahead – our focus Accelerating market share gain Leveraging differentiating customer in Business Solutions, scaled through and supplier offering, developing operating banner consolidation and industry-leading position. expanded service offering. Building on new imminent Driving
Slide 24: Consistent and disciplined capital allocation
LOOKING AHEAD Consistent and disciplined capital allocation FY2024 forecast Expected capital allocation priorities in 2024 net operating cash flow $2.5m – $6.0m ~$2.0m % range of ~$4m - $12m $1.2m - $2.0m free cash flow Organic investment Priorities… • Supply chain efficiency, • Business rightsizing
Slide 25: Outlook
LOOKING AHEAD Outlook Financial outlook is positive, expect strong results to continue. Despite fluctuations in economic conditions, the ongoing demand for our products and services from mining, resources, transportation, infrastructure, construction, repairs-maintenance, and the DIY market, provide
Slide 26: Supplementary Information
Supplementary Information 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 26
Slide 27: Growth trend comparison
SUPPLEMENTARY INFORMATION Growth trend comparison CAGR 2020-to-2023 Product segment revenue composition CAGR1 3-YEAR CAGR1 (%) 2020 SALES $68.0m 2023 SALES $111.0m Revenue ($m) 29.0 Illustrative sales mix as a % of total sales Gross Profit $ 29.7 Industrial EBITDA 34.6 14% 14% Safety & PPE NPAT 38.1
Slide 28: 3-year growth trend comparison
SUPPLEMENTARY INFORMATION 3-year growth trend comparison 1 Group Revenue ($m) Gross Profit ($m) Statutory EBITDA ($m) NPBT ($m) NPAT ($m) 29.0% C A G R 29.7% C A G R 34.6% C A G R 18.7% C A G R 38.1% C A G R 150.0 40.0 1.5 1.0 0.9 32.6 6.0 5.3 1.3 111.0 30.1 101.8 30.0 0.8 4.0 100.0 4.0 1.0 0.9 0.6
Slide 29: Growth trend comparison - Sales & Gross Profit performance
SUPPLEMENTARY INFORMATION Growth trend comparison - Sales & Gross Profit performance Continued traction with growth engines driving high growth 5-year trend (Revenue) Full Year 5-year trend (Gross Profit %) Full Year $million’s 111.0m 30.2% 29.3% 29.0% 99.6m 1 26.6% 69.7m 24.3% 68.1m 63.1 FY19 FY20
Slide 30: Debt Management
SUPPLEMENTARY INFORMATION Debt Management DEBT SUMMARY ($M) FY23 FY22 FY21 Gross Debt Composition Trend Net debt 7.2 10.2 4.2 Gross debt 14.9 14.9 7.3 16.0 Cash and cash equivalents (7.7) (4.7) (3.1) 14.0 Net debt 7.2 10.2 4.2 12.0 10.0 GROSS DEBT BREAKDOWN ($M) 8.0 Purchase Price on 4x acquisitions
Slide 31: We are building Australia's company of choice for Industrial Supplies and Solutions
SGI. ASX We are building Australia’s company of choice for Industrial Supplies and Solutions. Last slide 2023 Results Briefing Presentation : Stealth Global Holdings (ASX: SGI) 31
Stealth Group Holdings — FY2023 Earnings Presentation on 6ix