Slide 1: Investor Presentation: Half Year Results to 31 December 2016
For personal use only Investor Presentation Half Year Results to 31 December 2016 24 February 2017 PETER CAUGHEY, CEO & MANAGING DIRECTOR 1
Slide 2: Agenda
Agenda For personal use only Overview Financials Business conditions, strategy and outlook 2
Slide 3: Overview
Overview For personal use only • 1H17 has been a set-back – with varied results across divisions and geographies – Australian Trade Distribution revenues down sharply in some geographical regions – AA Gaskets had best period ever – Coopers continues to contribute positively • As a consequence Group
Slide 4: Coventry's business segments
Coventry’s business segments For personal use only 2 1 Trade Distribution Supplier of spare parts, workshop and on-site The largest specialty fastener services to the mining & related industries distributor in Australia and New Zealand 3 Niche supplier of hardware to the kitchen & cabinet maker indu
Slide 5: Building the platform for growth
Building the platform for growth For personal use only • 18 months into the turnaround 2017 results reflect a business in transition • Restructuring of the business is largely complete • Q1 performance was very – Operational improvements have been made poor and unanticipated – More improvements to c
Slide 6: Group – financial summary
Group – financial summary For personal use only 1H 1H % ($m) FY16 FY17 change Revenue from sale of goods 92.1 85.3 -7.5 • Sales reduction of 7.5% to $85.2m Underlying EBITDA 1.2 -3.9 n/m • Underlying NPAT of -$5.7m Underlying EBIT -0.4 -5.7 n/m • $7.9m of non-cash Underlying NPAT -0.2 -6.4 n/m impai
Slide 7: Financials
For personal use only Financials 7
Slide 8: Trade Distribution
Trade Distribution For personal use only ($m) 1H FY16 1H FY17 % change Revenue 57.8 51.2 -13% EBIT 0.1 -8.7 n/m • 1HFY17 results disappointing, impacted largely by mining sector weakness – Results have varied significantly from quarter to quarter with some areas performing better in Q2 – Buoyant con
Slide 9: Trade Distribution revenue outcomes across the network in Q1
Trade Distribution had some disappointing For personal use only revenue outcomes across the network in Q1 Northern Territory -30% pcp Northern Queensland -27% pcp Western Australia -41% pcp Southern Queensland -21% pcp New South Wales -10% pcp New Zealand +14% pcp South Australia -28% pcp Victoria n
Slide 10: Trade Distribution showing signs of revenue improvement in Q2
Trade Distribution is showing signs of revenue For personal use only improvement in Q2 in some regions Northern Territory -34% pcp Northern Queensland -7% pcp • Western Australia -50% pcp Southern Queensland +2% pcp New Zealand New South Wales +8% pcp +2% pcp South Australia -15% pcp Victoria no cha
Slide 11: Coopers
Coopers For personal use only ($m) 1H FY16 1H FY17 % change Revenue 27.7 25.6 -8% EBIT 1.7 1.1 -34% • Coopers has remained profitable despite mining sector weakness • Continue to invest in hydraulic servicing capability and software to assist in management of our workshops and customers’ mobile plan
Slide 12: AA Gaskets
AA Gaskets (1) For personal use only ($m) 1H FY16 1H FY17 % change Revenue 7.5 9.1 21% EBIT 1.3 2.0 52% • AA Gaskets (72.5% owned) is performing strongly • Now servicing all of the major customers in the industry • Continues to show improvement and provide diversified value to the Group (1) Coventry
Slide 13: Corporate
Corporate For personal use only ($m) 1H FY16 1H FY17 % change Property Operations (net) -0.3 -0.3 0% Head office expenses 4.8 4.7 -2% EBIT -4.5 -4.4 -2% • Head office provides centralised support services to the Group – Ongoing program to assess and reduce expenses • Corporate costs include property
Slide 14: Cash flow
Cash flow For personal use only ($m) 1H FY16 1H FY17 Net cash from operating activities -0.3 -6.6 Net cash from investing activities -2.7 -1.5 Net cash used in financing activities -1.2 9.9 Net (decrease)/increase in cash and cash -4.2 1.8 equivalents Cash and cash equivalents 5.2 5.3 • Cash balance
Slide 15: Balance sheet
Balance sheet For personal use only ($m) Jun-16 Dec-16 • NTA of $2.02 per share Cash & cash equivalents 3.5 5.3 remains at a significant Inventories 57.4 55.9 premium to the CYG Trade and other receivables 30.8 29.8 share price Other non-current assets 0.0 0.0 Total current assets 91.7 91.1 • $7.9m
Slide 16: Balance sheet impairments
Balance sheet impairments For personal use only $7.9m asset impairments are non-cash items • The board has reviewed the carrying value of the • $2.1m in fixtures and fittings associated with a leased deferred tax asset (DTA) Perth warehouse under Australian Accounting Standards – Leased by CGL for 2
Slide 17: Business conditions, strategy and outlook
For personal use only Business conditions, strategy and outlook 17
Slide 18: Business conditions appear to be improving
Business conditions appear to be improving For personal use only • Mining sector and associated industries the most 7,000 Capital +4.5% 13,500 Maintenance ($b) material component of the Group’s customers 6,500 13,000 Maintenance Capital ($b) 12,500 6,000 +7.3% 12,000 – 75% of Top 50 customers are ex
Slide 19: Restructure update
Restructure update For personal use only • Strategy review completed in February 2017 – No fundamental change to strategy • Scale and diversification of markets remains the largest Store footprint optimisation determinants of success for Trade Distribution • Benefits from the restructuring program a
Slide 20: Outlook
Outlook For personal use only • Trading in the third quarter (to date) is encouraging – Sales and margins are both above last year 2017 Outlook • Core focus is on improving sales in Australian Trade • With such unexpected and Distribution severe gyrations throughout 2016, it is – Multiple internal i
Slide 21: Disclaimer
Disclaimer For personal use only Reliance on third party information The information and views expressed in this Presentation were prepared by Coventry Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.