Slide 1: Performance and Business Strategy Update October 2017
A // PERFORMANCE AND BUSINESS STRATEGY UPDATE OCTOBER 2017 de AN\ MULTISPARES
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Supply Network Limited (SNL). The information in this presentation is current as at 9th October 2017. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Informa
Slide 3: Supply Network Limited
Supply Network Limited • Remains focused on investing in the sustainable long term organic growth of its Multispares operations • Is in a strong financial position with almost zero net debt • Operates with conservative financial management • Has consistently stated a strong preference for steady div
Slide 4: FY2017 Results Highlights
ISL /I]] FY2017 Results Highlights 2017 2017 2017 Total revenue Profit after income tax Ordinary Dividends paid per share $97.66m $6.77m 9.50 cents (,000) (,000) 2013 «2014 2015 2016 2017 2013 «42014 ~«42015 2016 2017 2013 «2014 «42015 2016 2017 * Excludes special dividend
Slide 5: FY 2018 Update and 3-Year Outlook
FY 2018 Update and 3-Year Outlook FY2018 Update • Forecast full year revenue growth of $8 – 10 million • Forecast full year EBIT Margin steady at ~10% Outlook • Linear average revenue growth ~$7m p.a. • Target revenue for FY2020 ~$118 million • Target EBIT Margin for FY2020 steady at ~10%
Slide 6: The Multispares Strategy
The Multispares Strategy Build a diversified business connected to all segments of the truck and bus repair market selling SERVICE based on: ➢ Reliable parts interpretation and problem solving ➢ Consolidation of requirements ➢ Managed supply options ➢ Quick delivery of parts ➢ Consistent quality, an
Slide 7: Truck & Bus Parts Market Context
Truck & Bus Parts Market Context • Average vehicle age remains relatively stable. • Any trend towards fleet consolidation is slow and mostly confined to specific transport tasks. Our workshop customer base remains relatively fragmented. • Whole-of-life parts opportunity has increased for late genera
Slide 8: Aftermarket Demand Profile
mini # Aftermarket Demand Profile TRUCK & BUS AFTERMARKET DEMAND PROFILE AUSTRALIA / NEW ZEALAND Demand for replacement parts OEM’s | Independents dominate dominate <4] — es 5 10 15 20 25 30 Age of vehicle (years)
Slide 9: Business Development Projects
Business Development Projects • Continued investment in the Multispares Branch Network. • Continued investment in range expansion and our supply chain. • Continued investment in our IT infrastructure to improve transaction efficiency and extend e-commerce capabilities. • Currently establishing profe
Slide 10: Branch Network Investments
md Branch Network Investments PortHedland New branch under development Hamilton New branch and NZDC under construction Christchurch Land purchased and new branch currently under concept Port Hedland... b Mackay design Toowoombae ® Brisbane Pee Smeaton Grange @ Newcastle Kwinana | Adelaide® Canberra
Slide 11: Product Range Investments
Product Range Investments We continue to expand our product range, including recent investments in • Fuel injection systems • Emissions control • Electronic braking systems • Vehicle diagnostics • Bolt on body parts • Late model European and Japanese vehicles • Range expansion for American trucks •
Slide 12: Jaltest Diagnostics
Jaltest Diagnostics • Recently established distribution for the global leader in multibrand and multisystem heavy vehicles diagnostics • Annual revenue likely to be around $1 million but far more significant impact from empowering independent repairers
Slide 13: MULTISPARES Rebranding
MULTISPARES Rebranding • Stronger brand association with Truck Parts • Continued Managed Service message for Bus fleets • Reduced emphasis on defined vehicle makes • Continued brand partnering with leading component manufacturers • Successful sponsorship of Ryan Hansford and his Torana SLR5000 in th
Slide 14: Supply Network Limited
ISIVL_ fii SUPPLY NETWORK LIMITED NETWORKING THE SUPPLY OF ROAD TRANSPORT COMPONENTS