Slide 1: FY2018 Results
FY2018 Results Chris Hartwig For personal use only Steven McGregor
Slide 2: Agenda
For personal use only Agenda • FY18 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 June 2018 June 2017 % Change For personal use only Sales $56.96m $44.73m 27.3% EBIT $1.86m ($2.29m) Operating cashflow $5.11m ($0.38m) EPS 12.3c (14.4c) Dividend per share 12c 13c Dividend payout % 97.6% N/A Profit After Tax 2,000 1,845 • Significantly improved market 1,500 1,330 1,
Slide 5: Industrial Products
Industrial Products For personal use only June 2018 June 2017 % Change Sales $51.68m $40.27m 28.3% EBIT $2.13m ($1.63m) EBIT % 4.1% (4.0%) Trading Update • One major NSW infrastructure project delivered • Day-to-day activity grew in all states • Growth in project work • Margin improved due to price
Slide 6: Production Services
Production Services June 2018 June 2017 % Change For personal use only Sales $5.28m $4.46m 18.3% EBIT $0.23m ($0.30m) EBIT % 4.3% (6.7%) Trading Update • Increased external volume Galvanising volume • EzyStrut growth benefited Galvanising • Improved sell price to cover cost increases • Zinc increase
Slide 7: Balance Sheet
Balance Sheet For personal use only ASSETS $m June 2018 June 2017 June 2016 Cash & Investments 5.4 2.0 5.1 Receivables 10.0 9.3 8.0 Inventories 9.4 10.7 11.5 Property, Plant & Equipment 12.9 13.8 14.6 Other 0.2 0.3 1.2 Total Assets 37.9 36.1 40.4 LIABILITIES Payables (4.7) (4.0) (4.2) Other Liabilit
Slide 8: Dividends
Dividends For personal use only FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Interim 5c 10c 10c 17c 26c Special Interim - - - - 100c Final Dividend 7c 3c 10c 12c 31c Total Dividend 12c 13c 20c 29c 157c Franking 100% 100% 100% 100% 100% • DRP suspended for final dividend Key Dates Record Date: 24 August 2
Slide 9: Outlook
Outlook For personal use only • Infrastructure investment forecasts remain strong over the short to medium term • Increased major project work expected in FY19 based on already secured orders • Day-to-day and small project markets expected to remain buoyant • Product cost reduction from supply chain
Slide 10: Company Overview
For personal use only Company Overview
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: Safety access systems for mobile vehicles
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 For personal use only Underlying Profit After Tax is a non-IFRS measure. The chart showing Profit after Tax on Page 4 shows underlying and statutory Profit after Tax. The calculations of the underlying numbers included in this presentation are set out below. Underlying Profit After Tax
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