Korvest Ltd. · ASX:KOV
Korvest — H1 FY2020 Earnings Presentation
17 slides from Korvest's earnings presentation, Jan 24, 2020
Slide 1: Half Year Results December 2019
For personal use only December 2019 Half Year Results Chris Hartwig Steven McGregor 1
Slide 2: Agenda
For personal use only Agenda • FY20 1H Key Points • Financial Results • Outlook • Company Overview 2
Slide 3: 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 and war
Slide 4: For personal use only
zy ystrut 6 ama ae a) A 1) ‘») O-aak ee and Pipe Supports | ~ mma | it a ! [=m | © ‘a Bi Safety Access Systems
Slide 5: Headline Numbers
Headline Numbers Dec 19 (1H) June 19 (2H) Dec 18 (1H) % Change For personal use only vs Dec 18 Sales $36.1m $31.9m $29.2m 23.6% EBIT $3.08m $2.48m $1.60m 92.5% NPAT $2.13m $1.75m $1.14m 86.8% Operating cash flow $7.98m $2.55m ($1.14m) EPS 19.0c 15.7c 10.2c 86.3% Dividend per share 15c 13c 9c 66.7% P
Slide 6: Industrial Products
Industrial Products Dec 19 (1H) June 19 (2H) Dec 18 (1H) % Change For personal use only vs Dec 18 Sales $32.89m $29.56m $26.41m 24.5% EBIT $2.97m $2.62m $1.74m 70.7% EBIT % 9.0% 8.9% 6.6% EzyStrut • Continuation of 2H FY19 trading conditions with strong project sales and growing general market sales
Slide 7: Production Services
Production Services Dec 19 (1H) June 19 (2H) Dec 18 (1H) % Change For personal use only vs Dec 18 Sales $3.23m $2.36m $2.78m 16.2% EBIT $0.39m $0.29m $0.23m 69.6% EBIT % 12.1% 12.3% 8.3% Galvanising volume • Best plant volumes since 2H FY14 • External tonnes consistently high through the half • Net
Slide 8: Business improvement initiatives
For personal use only Business improvement initiatives • IXL arrangements working well • Bag house operational in Galvanising • Order placed for ladder weld cell • Evaluating gas reduction opportunities • Significant progress with in house development of ERP – real time factory, CRM • Product cost r
Slide 9: Balance Sheet
Balance Sheet ASSETS $m Dec 2019 June 2019 Dec 2018 For personal use only Cash & Investments 8.6 3.4 2.9 Receivables 10.0 14.1 10.8 Major project largely complete by Dec 19 Inventories 8.7 10.5 11.5 Project stock reduced, IXL stock diminished Property, Plant & Equipment 13.3 13.0 12.7 Right-of-use a
Slide 10: Dividends
For personal use only Dividends FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 Interim 15c 9c 5c 10c 10c Final Dividend 13c 7c 3c 10c Total Dividend 22c 12c 13c 20c Franking 100% 100% 100% 100% 100% Key Dates Record Date: 21 February 2020 Payment Date: 6 March 2020 10
Slide 11: Outlook
For personal use only Outlook Trading • Significant large project tendering and design activity during 2H • Not expecting significant supply of any large projects during 2H as this is expected in FY21 and beyond • Day-to-day and small project markets expected to remain strong • 2H likely to be lower
Slide 12: Company Overview
For personal use only Overview Company 12
Slide 13: Industrial Products
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 major contractors • Local manufacture allows quick response time and ability to manufacture special
Slide 14: Industrial Products
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Sun blinds • Queensland Based • Sales agents in: – QLD – Chile, Brazil, South Africa 14
Slide 15: Industrial Products
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 15
Slide 16: 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 16
Slide 17: 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