Fos Capital Ltd · ASX:FOS
Fos Capital — H1 2024 Earnings Presentation
10 slides from Fos Capital's earnings presentation, Feb 22, 2024
Slide 1: 1H FY24 Results Presentation
1H FY24 Results Presentation ASX: FOS
Slide 2: FOS 1H24 Key Takeaways
FOS 1H24 Key Takeaways $9.9m $7.2m $2.7m $11.1m 1H Sales +15% Q2 Sales +30% December Orders Intake Order Book SOLID 1H RECORD KLIK IMPACT RECORD 0.9m KLIK Systems 10 Consecutive $100m EBITDA* +43% Profitable half years Pipeline VOLUMES INCREASE MARGINS ACQUISITION RESILIENT BUSINESS GOOD VISIBILITY
Slide 3: FOS M&A Strategy
FOS M&A Strategy • Consolidate fragmented lighting industry • Immediate market FOS operates in estimated sales +$500M • Medium term target market share 15% (currently 5%) • 5 acquisitions to date • Created ANZ business with 79 staff • 2 manufacturing facilities • 16 Brands • Multiple accretive oppor
Slide 4: 1H24 Operational Update
1H24 Operational Update Operations • Impressive 1H performance with strong contribution from KLIK • Sunshine Coast linear production to consolidate into KLIK in February resulting in further efficiencies. • Order book rebounded from midyear lows to $11.1m • Company reached critical mass with annuali
Slide 5: KLIK Systems
KLIK Systems Transformative acquisition • KLIK 40+ years in operation in design, manufacture & distribution of quality LED linear & handrail lighting solutions • Funded with cash and debt Strategic Benefits • Increases FOS market share in architectural linear lighting • Introduces new export markets
Slide 6: KLIK Strategic Acquisition & Restructure Costs
KLIK Strategic Acquisition & Restructure Costs • The acquisition of KLIK Systems forms part of a strategy to consolidate the linear lighting market in Australia. • FOS commenced manufacturing of linear lighting in Brisbane October 2019. • FOS acquired Sunshine Coast linear lighting manufacturer Hawk
Slide 7: Financials
Financials P&L ($m) 1H24 1H23 Balance Sheet Dec 23 Dec 22 Sales 9.9 8.6 Cash & Receivables 5.9 5.2 Gross Profit 4.3 3.3 Stock, P&E, Other 13.0 9.9 Other Income .1 .1 Total Assets 18.9 15.1 Operating Expenses 3.5 2.8 Payables 2.1 2.9 EBITDA .9 .6 Debt 2.8 0 Int & Dep .2 .1 Other 4.6 3.1 Operating Pro
Slide 8: Comparative Analysis
Comparative Analysis 11.1 100 Pipeline Order Book 80 6.1 6.2 56 58 5.3 50 42 3.8 3.3 25 15 1.5 1.5 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 17.1 Sales 13.5 8.5 7.4 8.1 5.5 4.2 9.9 2.8 8.6 6.1 3.9 2.7 FY20 FY21 FY22 FY23 FY24
Slide 9: Outlook
Outlook • Exit of Sunshine Coast facility February 2024 • ANZ operation with 79 staff well poised for further growth • Commercial construction industry continues to be robust with orders being released • Acquisition of KLIK expected to deliver significant manufacturing synergies • New revenue stream
Slide 10: FOS Interactive Investor Hub
FOS Interactive Investor Hub https://investorhub.foscapital.com.au/welcome