Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2021 Earnings Presentation
41 slides from Stealth's earnings presentation, Aug 31, 2021
Slide 1: FY21 Full Year Results
FY21 FULL YEAR Results Tuesday 31 August 2021 ASX Code: SGI An Australian multinational distributor of Industrial maintenance, repair, operating ‘MRO’, YE 30 June 2021 | www.stealthgi.com Safety and Workplace supplies, and other related products and solutions.
Slide 2: Presentation Outline
Presentation Outline Company Overview 3 Financial Highlights 12 Review of Operations Highlights 18 Future Direction 28 Appendices 33 YE 30 June 2021 | www.stealthgi.com
Slide 3: Company Overview
Company Overview Fact Book YE 30 June 2021 | www.stealthgi.com
Slide 4: Stealth Group At A Glance
Stealth Group At A Glance Stealth is a broad-line distributor of industrial, maintenance, repair, operating ‘MRO’, safety & workplace supplies and other related products and services Corporate Presentation Sales Team In-Store On-Site Online Delivery Click & Collect (click the link below) https://ste
Slide 5: Stealth By Numbers
Stealth By Numbers Headquartered in Perth, Western Australia, Stealth Serves Customers in Australia, United Kingdom, Africa and Asia FY2021 Results Portfolio International Australia 92% 5% Online ~ 1,000,000 ~ 200 32x company stores 6x Online 3% products Team Members ‘branch & onsite’ Webshops Annua
Slide 6: Portfolio Of Distribution Businesses
Portfolio Of Distribution Businesses Each business differentiates itself through different methods of customer engagement, order processing, and order fulfilment though uses operating leverage from the combined group to drive competitive advantage. OPERATING BRANDS (1) www.heatleys.com.au www.cltool
Slide 7: Business Model – How We Supply Our Customers
Business Model – How We Supply Our Customers Supported by the Widest Range, Best Prices, In-Stock & Available, Value-Add Supply Solutions, Unmatched Customer Service Customers & Serving more than 5,500 business customers and 34,000 retail customers of all sizes from a broad collection of industries
Slide 8: Broad Product Selection
Broad Product Selection Go-to-Market Strategy: Broadline product offering through an ‘offline and online’ multichannel offer for customers to buy our products Offering more than 1 million Products across our portfolio – popular categories include; And more… YE 30 June 2021 | www.stealthgi.com 8
Slide 9: Solutions: Access Stock, Anytime, Anywhere
Solutions: Access Stock, Anytime, Anywhere Go-to-Market Strategy:- tailored solutions for customers with more complex or specific needs Online In-Store On-Site Extensive range of industrial, MRO, safety & workplace We are conveniently located to help customers get what Customised product and service
Slide 10: Corporate Overview
Corporate Overview Corporate Summary 30 June 30 June % SGI Board SGI Ownership 2021 2020 change Well balanced experienced team, established to support today's business and its future direction Market Cap $m 10.5m 6.5m +61.5% +52.2% Chris Wharton AM 23% Directors and Share Price (cents) 10.5 6.9 Chai
Slide 11: Strategic Direction
Strategic Direction Stealth continues to generate value for shareholders through key growth strategies CONTINUING TO DEVELOP A LARGE-SCALE HOLDING AN ADVANTAGED MARKET DRAWING ON SCALE AND OPERATING DISTRIBUTION GROUP POSITION ‘SUPPLIER OF CHOICE’ LEVERAGE FROM BUSINESS COMBINATIONS Supplies and Sol
Slide 12: Financial Highlights
Financial Highlights FY21 Full Year YE 30 June 2021 | www.stealthgi.com
Slide 13: FY21 Financial Highlights - Record Year Financial Performance
FY21 Financial Highlights - Record Year Financial Performance FY 2021 REVENUE FY 2021 PROFIT 2H 2021 VS PRIOR PERIODS CAPITAL MANAGEMENT > Group Sales FY21 $69.7m > Gross Profit 29.0% > Sales $39.3m > $6.1m Available Cash & Undrawn up 2.5% pcp FY20 $68.1m up 9% pcp FY20 26.6% up $9m or 28% on 1H/21
Slide 14: Strong 2H21 Half Performance in Sales and Profit
Strong 2H21 Half Performance in Sales and Profit Strong second half operational performance and the strategic repositioning of the company towards higher margin sales REVENUE JOURNEY $m Record SALES Full Year 2021 60.0 ANNUALISED SALES ~ $95 million Annualised revenue rate after Skipper Transport Pa
Slide 15: Financial Profit & Loss - Full Year 2021
Financial Profit & Loss - Full Year 2021 Record result on the back of a very strong second half operational performance TRADING PERFORMANCE FY 2021 FY 2020 Movement Movement HIGHLIGHTS $ % PROFIT & LOSS - A record financial year result for Stealth. Group Revenue $69.7m $68.1m $1.6m 2.5% › Only 7 Mon
Slide 16: Sales Channel Mix – How We Serve Our Customers
Sales Channel Mix – How We Serve Our Customers Business Customers represent a broad collection of industries that place orders through our sales representatives, in-store at our branches, online, on-site, and over the phone and by email with our internal sales team. Retail Customers order online or
Slide 17: Balance Sheet and Cash Flow - Full Year 2021
Balance Sheet and Cash Flow - Full Year 2021 STATUTORY STATUTORY STATUTORY BALANCE SHEET SUMMARY 30 JUNE 2021 30 JUNE 2020 30 JUNE 2019 $M $M $M HIGHLIGHTS Cash and cash equivalents 3.1 1.1 2.0 BALANCE SHEET Other current assets 23.2 16.5 22.7 Property, plant and equipment 1.2 0.7 0.6 › Cash positio
Slide 18: Review of Operations
Review of Operations FY21 Full Year Progress on Strategic Agenda YE 30 June 2021 | www.stealthgi.com
Slide 19: FY21 Highlights Strategic & Operational
FY21 Highlights Strategic & Operational Continued to make significant progress against our strategic priorities, driving share growth in key markets. STRATEGIC DELIVERABLES VALUE CREATION FY21 KEY RESULTS - ACHIEVEMENTS #1 Emergent Industry Leader position in › Larger-scale distributor holding an ›
Slide 20: FY21 Highlights Strategic & Operational
FY21 Highlights Strategic & Operational Continued to make significant progress against our strategic priorities, driving share growth in key markets. STRATEGIC DELIVERABLES VALUE CREATION FY21 KEY RESULTS - ACHIEVEMENTS #4 We have built an even stronger offer, › Operating leverage and supply › +2,50
Slide 21: #1. Emergent Market Leadership Position
#1. Emergent Market Leadership Position Stealth’s overarching differentiated Sales and Services model combining its broadline MRO product offering and customer solutions model is unlike any other single, like-for-like competitor. Advantaged leading position Extensive multichannel capability in a gro
Slide 22: #2. Strong Track Record of Value Adding Acquisitions and JV’s
#2. Strong Track Record of Value Adding Acquisitions and JV’s We have continued to invest in building a large-scale distribution group. Company SGI lists on the Acquired WA SGI and Bisley Acquired Acquired Acquired Acquired market Founded market leading Workwear Industrial Supply Product brand Queen
Slide 23: #3. Accelerated Our Online & Digital Capabilities
#3. Accelerated Our Online & Digital Capabilities We invested heavily in our data & digital capabilities that included websites, webshops, online portals, automation and AI solutions powering scale. WE MATERIALLY ADVANCED OUR ECOMMERCE ONLINE CHANNELS www.isgaus.com.au www.heatleys.com.au Launched N
Slide 24: #4. Expanded Our Operating Platform
#4. Expanded Our Operating Platform Expanded Into A Larger-Scale Leading Distributor % chg(1) SCALE June 21 June 20 June 19 June 18 Comments Annual Sales ($m) 69.7m 68.1m +2.5% 63m 24m - Australia ($m) incl Online 67m 57m +17.5% 44m 3m • Australia numbers include Online Sales - International ($m) 3m
Slide 25: #4. Continued Network Investment
#4. Continued Network Investment Markets, Branch Stores, On-site stores strategically placed in locations to better serve our customers. 25 YE 30 June 2021 | www.stealthgi.com Red locations in WA and Queensland from August 21 Green location in Queensland from December 20
Slide 26: #4. 600,000 New Products + New Supply Solutions Model
#4. 600,000 New Products + New Supply Solutions Model as a result of the C&L and STP acquisitions and expansion within the Heatleys businesses Access Stock Solutions FY21 NEW OR EXPANDED SERVICES ~1 million products now available – popular categories include; Online In-Store On-Site Vending Stock Hu
Slide 27: #5. Future Growth In Customer Markets From Product Diversification
#5. Future Growth In Customer Markets From Product Diversification Customer and Markets diversification Expansion of product range, brands and > $20 million of annual revenue synergies across our businesses value-add solutions on offer identified from Cross Sell advantage Category Limited overlap of
Slide 28: Future Direction
Future Direction Strategy and Outlook YE 30 June 2021 | www.stealthgi.com
Slide 29: Strategic Agenda: Priorities for the coming period
Strategic Agenda: Priorities for the coming period Draw on the strengths and advantages of each business to leverage collective scale. Focus for the coming period Growth Objectives - More customer value and better customer experiences 3 - Expand in all customer segments using advantaged business mod
Slide 30: How We Are Expanding Offering More To Customers
How We Are Expanding Offering More To Customers HOW WE GENERATE INCOME & PROFIT TODAY CONTINUED INVESTMENT EXTERNAL SALES FORCE CATALOGUE INBOUND LOGISTICS COMPANY BRANCH STORES VENDING MACHINES DELIVERY - Differentiated Sales, Services & Solutions - Widest-Range, Best Prices, Stock Available, Value
Slide 31: Outlook - Stealth now anticipates to be ahead of its previous expectations
Outlook - Stealth now anticipates to be ahead of its previous expectations We are raising our outlook to provide the following guidance. Positive Financial Impact Operating Leverage and Large, Fragmented and Highly- Robust Financial Profile From 2021 Strategic Events Synergies Attractive Market And
Slide 32: Compelling Investor Value
Compelling Investor Value We have a clear growth strategy that has been consistent since listing in 2018. - Advantaged industry position in large, fragmented and highly-attractive market - Competitively advantaged business model with diversified customer & industry exposure - Rising revenue & earnin
Slide 33: Appendices
& Appendices a STORE | ON-SITE | ONLINE | DELIVERY | CLICK & CO! | STEALTHGLOBAL
Slide 34: History of Consistent Strategic Growth Since IPO
History of Consistent Strategic Growth Since IPO SGI is considerably undervalued - Strong foundation established for future growth. Established Joint Venture March 19 HY reported results 31 Dec 20 $30m Revenue with Bisley Workwear in the United Kingdom $2.1m underlying reported EBITDA2 BSA Brands (U
Slide 35: Experienced Leadership Team Delivering Growth Strategy
Experienced Leadership Team Delivering Growth Strategy We have a clear growth strategy, stable management team and proven track record. Mike ARNOLD Luke CRUSKALL John BOLAND Brendan ROSSITER Jessica RICH Phil PODGORSKI Michelle SCHOEMAN Group Managing Director & Group Chief Operating Group Chief Fin
Slide 36: Our Culture Underpins Our Success
Our Culture Underpins Our Success Each business within the SGI Group has its own distinct culture aligned to the Group’s vision, which has greatly contributed to its success. SGI is committed to building and growing a thriving business for the future. SGI's success is underpinned by its core values
Slide 37: Sales Mix – Product Category, Industry Segment, Geography
Sales Mix – Product Category, Industry Segment, Geography Product Sales Mix Industry Segment Sales Mix Geography Sales – Customer Located FY2021 FY2021 FY2021 UK Africa 0% 4% Transport Other 8% 1% Workplace Govt & 16% Commercial 9% Resources Australia 40% 96% FY2020 Safety Other Africa 18% Infrastru
Slide 38: Profit & Loss Results Reconciliation - Full Year 2021
Profit & Loss Results Reconciliation - Full Year 2021 30 June 21 30 June 20 30 June 19 Reconciliation – Full-year financial results $’000 $’000 $’000 Underlying EBITDA1, 4,498 3,185 1,920 Growth Related Investments: Investment in the establishment of BSA Brands – brand awareness, promotion, point of
Slide 39: Overview of Skipper Transport Parts
Overview of Skipper Transport Parts • Rebranded to Skipper Transport Parts in 2016. Formerly four Customer Markets Overview Sample of Market Leading Supplier COV’s and Coventry’s Automotive branches with a long Brands operating history. • Wide-Range distributor of Industrial ― Automotive products ‘M
Slide 40: Important Notices and Disclaimer
Important Notices and Disclaimer This document has been prepared by Stealth Global Holdings (the Company) and is provided for information purposes only. This or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited Party document
Slide 41: For Further Enquiries
FOR FURTHER ENQUIRIES Mike Arnold Chris Wharton AM John Boland Group Managing Director & CEO Chairman Group Chief Financial Officer P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800 31 August 2021 ASX Code : SGI YE 30 June 2021 | www.stealthgi.com 41
Stealth Group Holdings — FY2021 Earnings Presentation on 6ix