Korvest Ltd. · ASX:KOV
Korvest — H1 FY2022 Earnings Presentation
16 slides from Korvest's earnings presentation, Jan 24, 2022
Slide 1: December 2021 Half Year
For personal use only December 2021 Half Year Chris Hartwig and Steven McGregor Artwork inspired by Kia Ora Investments Interim Report dated December 1970
Slide 2: EzyStrut Cable & Pipe Supports
EzyStrut Cable & Pipe Supports 2
Slide 3: Agenda
Agenda • For personal use only FY22 Key Points • Financial Results • Outlook • Company Overview 3
Slide 4: 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 5: Headline Numbers
Headline Numbers Dec 21 (1H) June 21 (2H) Dec 20 (1H) Dec 21 vs Dec 20 Sales $51.6m $37.2m $32.6m 58.3% For personal use only EBIT $9.74m $4.72m $4.16m 134.1% NPAT $7.04m $3.22m $2.84m 147.9% Operating cash flow ($1.38m) $3.77m $2.74m EPS 61.5c 28.4c 25.1c 145.0% Dividend per share 25c 20c 15c Profi
Slide 6: COVID-19
COVID-19 • For personal use only Major impacts have been supply side, not demand • Minimal disruption to key markets serviced by Korvest businesses • Increased shipping costs and lead times for imported items • Inventory management an ongoing challenge • Impact on commodity input prices and availabi
Slide 7: Industrial Products
Industrial Products Dec 21 (1H) June 21 (2H) Dec 20 (1H) Dec 21 vs Dec 20 For personal use only Sales $47.77m $33.79m $29.47m 62.1% EBIT $8.60m $4.40m $2.41m 256.8% EBIT % 18.0% 13.0% 8.2% Trading Update • Unprecedented levels of large project work • 4 large projects supplied • Day-to-day activity r
Slide 8: Production Services
Production Services Dec 21 (1H) June 21 (2H) Dec 20 (1H) Dec 21 vs Dec 20 For personal use only Sales $3.81m $3.39m $3.15m 21.0% EBIT $0.89m $0.57m $0.29m 206.9% EBIT % 23.4% 16.8% 9.2% Galvanising volume Trading Update • Overall plant volumes high • Record internal volume due to EzyStrut performanc
Slide 9: Strategic initiatives
Strategic initiatives For personal use only Automation • Robotic Tray Stacking close to completion on 2nd line • Some production output from the Robotic Ladder Weld Cell, some commissioning issues remain with turn-key supplier • IXL strut line operational • Further automation projects underway Opera
Slide 10: Balance Sheet
Balance Sheet ASSETS $m Dec 2021 June 2021 Dec 2020 Cash & Investments 2.9 7.0 6.4 Working capital demands impacted Dec 21 cash For personal use only Receivables 17.5 14.2 10.3 Increase due to strong Nov/Dec 2021 sales Inventories 17.7 12.4 11.4 Increase due to increased cost of steel and higher sto
Slide 11: Dividends
Dividends For personal use only FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 Interim 25c 15c 15c 9c 5c Final Dividend N/A 20c 13c 13c 7c Total Dividend N/A 35c 28c 22c 12c Franking 100% 100% 100% 100% 100% DRP suspended for interim dividend Key Dates Record Date: 18 February 2022 Payment Date: 4 March 20
Slide 12: Outlook
Outlook For personal use only • 2H begins with strong order book • Major infrastructure projects will continue to be supplied throughout 2H FY22 albeit at lower than 1H levels • One project expected to wind down during 2H • 3 projects remain active at varying supply phases • Day-to-day and small pro
Slide 13: Company Overview
For personal use only Overview Company 13
Slide 14: 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 direct to project contractors • Local manufacture allows quick response time and ability to manufac
Slide 15: 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 15
Slide 16: For personal use only
For personal use only Australia’s leading range of cable & pipe supports. www.ezystrut.com.au Quick turnaround galvanising of the largest, smallest, and most complex construction members. www.korvestgalvanisers.com.au 16