Slide 1: Korvest Ltd December 2015 Half-Year Results
For personal use only Korvest Ltd December 2015 Half-Year Results Alexander Kachellek Steven McGregor 1
Slide 2: Agenda
Agenda For personal use only • 1H FY16 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 warehou
Slide 4: Headline Numbers
Headline Numbers Dec 15 (1H) June 15 (2H) Dec 14 (1H) % Change vs For personal use only Dec 14 Sales $27.33m $30.96m $32.06m (14.8%) Underlying EBIT1 $0.89m $1.90m $2.34m (62.0%) Operating cashflow $1.43m ($0.54m) $5.65m (74.7%) Underlying EPS1 6c 12.7c 15.7c (61.8%) Dividend per share 10c 12c 17c P
Slide 5: Industrial Products
Industrial Products Dec 2015 June 2015 Dec 2014 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2014 Sales $24.90m $28.83m $29.51m (15.6%) EBIT $0.90m $2.63m $2.52m (64.3%) EBIT % 3.6% 9.1% 8.6% Trading Update • Major LNG Project continued during 1H • Markets remained subdued • More commercial
Slide 6: Production Services
Production Services Dec 2015 June 2015 Dec 2014 % Change For personal use only (1H) (2H) (1H) Vs. Dec 2014 Sales $2.43m $2.13m $2.56m (4.6%) EBIT $0.01m $0.21m $0.49m (98.0%) EBIT % 0.4% 9.9% 19.2% Trading Update • Volumes remain at historically low levels albeit consistent with previous half • More
Slide 7: Balance Sheet
Balance Sheet ASSETS $m Dec 2015 June 2015 Dec 2014 For personal use only Cash (0.2) (0.5) 2.5 Receivables 10.8 13.6 11.0 Inventories 13.2 13.6 11.8 Property, Plant & Equipment 15.4 15.9 16.1 Other 0.7 0.3 0.2 Total Assets 39.9 42.9 41.6 LIABILITIES Payables (4.6) (6.4) (4.9) Other Liabilities (3.2)
Slide 8: Dividends
Dividends For personal use only FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Interim 10c 17c 26c 26c 18c Special Interim - 100c - 5c Final Dividend 12c 31c 20c 30c Total Dividend 29c 157c 46c 53c Franking 100% 100% 100% 100% 100% • DRP remains activated for interim dividend Key Dates Record Date: 26 Febr
Slide 9: Outlook
Outlook For personal use only • Little change expected in domestic underlying trading conditions • LNG project continues in 2H at similar levels to recent periods • Recovery tied to construction/investment cycle • Business enters 2H with lower headcount/cost structure • M&A activity paused until bus
Slide 10: Company Overview
For personal use only Company Overview 10
Slide 11: Industrial Products: Cable and pipe supports
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 direct to project contractors and trade • Local manufacture allows quick response time and ability
Slide 12: Industrial Products: Hydraulic/Electric Safety Access Systems
Industrial Products For personal use only • Hydraulic/Electric Safety Access Systems for mobile vehicles – Design – Manufacture • Safety Lighting • Filter Crushers • Queensland Based • Sales Representatives/agents in: – QLD, WA, NSW – Chile, Brazil, South Africa 12
Slide 13: Industrial Products: Hydraulic tools and wrenches
Industrial Products For personal use only • Hydraulic tools and wrenches – Sale – Hire – Repair • Markets – Large scale construction – Power stations – Industrial sites – Mines – Wind towers 13
Slide 14: 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 14
Slide 15: Calculations
Calculations Underlying EBIT and EPS are non-IFRS measures. The calculation of the underlying numbers included in this presentation is set out below. Only the Dec 14 and Dec 15 periods include an adjustment. For other periods shown on page 4 the statutory For personal use only and underlying numbers
Slide 16: 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