Stealth Group Holdings Ltd. · ASX:SGI
Stealth — Stealth Global Holdings — H1 2022 Earnings Presentation
32 slides from Stealth's earnings presentation, Mar 10, 2022
Slide 1: 1H22 Half Year Results and Investor Presentation
A Leading Industrial Distribution Group specialising in industrial maintenance, repairs, operations “MRO” & safety supplies and related services and solutions. April XX, 2019 H erz ogenaurach 1H22 Half Year Results and Investor Presentation ASX: SGI Stealth Global Holdings Ltd 10 March, 2022 Powered
Slide 2: Investment Case: Well Positioned To Deliver Significant Value
Highly Attractive, Purpose-led, Growth-oriented Strategy Investment Case: Well Positioned To Deliver Significant Value 1 Leading pure-play industrial MRO distributor in a large, highly fragmented, and attractive market. Annual sales at +$100M with enormous upside available from $40B addressable mark
Slide 3: Contents
Contents 1. Company Overview Slide 04 2. Group Highlights Slide 07 3. 1H22 Financial Results Slide 12 4. Strategy & Outlook Slide 20 5. Additional Information Slide 26 3 10 March 2022 Stealth Global 2022 Half Year Results. …Leading The Future Of Industrial MRO Distribution
Slide 4: Company Overview
1 Company Overview 4 10 March 2022 Stealth Global 2022 Half Year Results. …Leading The Future Of Industrial MRO Distribution
Slide 5: Broad-line Distributor Of Industrial MRO Supplies And Services
Who We Are……What We Do Broad-line Distributor Of Industrial MRO Supplies And Services 1 Sourcing & Buying Wholesale Distribution Operating Model Distribution Centres Services & Solutions Branches, Stores, Online Sales & Support Teams 4 Our Brands 2 Supplies and Solutions to Every Industry 3 Our Comp
Slide 6: At A Glance… Key Figures
At A Glance….. Key Figures We are a business-to-business (B2B) and business-to-consumer (B2C) distributor of industrial maintenance, repairs, operations “MRO” & safety supplies and related solutions. Our core brands are leaders in their markets. $100m $69.7m 6.4% ~230 Group Sales Group Sales 2021 Ad
Slide 7: 1H22 Group Highlights
2 1H22 Group Highlights 7 10 March 2022 …Leading Stealth Global 2022 Half Year Results. …Leading The The Future Future Of Industrial Of Industrial MROMRO Distribution Distribution
Slide 8: Great Progress On Strategy
Half Year 2022 Performance Executive Summary Great Progress On Strategy 1 Step-change result. We made bold investments in our business model, materially increased scale, operating leverage and competitive advantage. We have built one of the largest networks of company owned and independent • Well ex
Slide 9: 1H2022 Highlights
Half Year 2022 Performance Executive Summary 1H2022 1 1 Record financial result. Revenue up 55% pcp, gross margin % up 2bps to 29.8%. 2 Acquired two companies to drive future growth. $26m p.a. new revenue,+2,000 customers. Highlights 3 Doubled the number of outlet stores in Australia by 38, taking o
Slide 10: Key Figures At A Glance From Continued Operations
Half Year 2022 Performance Key Figures At A Glance From Continued Operations Results exclude BSA Brands UK due to reclassification as discontinued operations in 1H22 Sales Underlying Statutory Underlying NPAT Cash and Net Leverage Revenue EBITDA1 EBITDA1 EBIT 1 Cash equivalents Assets ratio 2 Up 55%
Slide 11: Strategic Performance At A Glance
Half Year 2022 Performance Strategic Performance At A Glance - Significant Progress Made On Our Strategy • Built a materially larger business adding new scale leverage and competitive advantage. Record Result • Key events will deliver significant value and upside in the short-to-mid term. Financial
Slide 12: 1H22 Financial Results
3 1H22 Financial Results 10 March 2022 …Leading Stealth Global 2022 Half Year Results. …Leading The The Future Future Of Industrial Of Industrial MROMRO Distribution Distribution 12
Slide 13: Executive Summary – Financial Highlights
Half Year 2022 Executive Summary – Financial Highlights • Strong performance in the first half of FY 2022, achieving record revenue in the 6 months and a significant uplift in margins and profits. • Record Revenue of $44.3m, up $15.7m (55%) on 1H21 and up $6.3m (16%) on 2H21. • Gross Margin increase
Slide 14: Summary Financial Performance From Continued Operations
Half Year 2022 Summary Financial Performance From Continued Operations Excludes discontinued operations. The sale of BSA Brands by Stealth has been recognised in the 31 December 2021 half-year results. Refer page 25 for Group consolidated. CONTINUING OPERATIONS 1H 2022 1H 2021 Change Revenue 44,322
Slide 15: 1H22 Financial Ancillary Comments (1/2)
Half Year 2022 1H22 Financial Ancillary Comments (1/2) • Record revenue of $44.3m, up $15.7m (55%) on 1H FY2021 and up $6.3m (16%) on 2H FY2021, including contributions from Sales acquisitions of C&L (1 December 2020) and STP (15 August 2021). • 5.8% ($1.6m) organic sales growth for Australian opera
Slide 16: 1H22 Financial Ancillary Comments (2/2)
Half Year 2022 1H22 Financial Ancillary Comments (2/2) Equity • Stronger balance sheet reflected by increase in Net Assets of $0.9m from 30 June 2021. • Net debt increased $5.45m to $9.67m (30 June 2021: $4.23m) from acquisition of Skipper Transport Parts ($3.93m), Net Debt capital investment in ass
Slide 17: Summary Balance Sheet
Half Year 2022 Summary Balance Sheet $m Dec 2021 Jun 2021 Working Capital Cash 4.35 3.11 • Increase in cash balance of $1.2m to $4.4m (noting Dec 21 excludes $0.8m BSA Receivables 12.64 11.42 classified as Held for Sale). Inventory 13.97 10.75 • Increase in net working capital reflective of larger s
Slide 18: Summary Cash Flow
Half Year 2022 Summary Cash Flow • Operating cash flow of $0.25m (compared to $0.66m pcp) reflects working $m Dec 21 Dec 20 Change on PCP capital investment in STP post-acquisition in current period, JobKeeper cash receipts in pcp. Operating cash flow 0.25 0.66 (62)% • Investing cash flows of $5.02m
Slide 19: Returns, Capital Ratios and Capitalisation
Half Year 2022 Returns, Capital Ratios and Capitalisation H1 FY22 H1 FY21 Change on PCP • Increase of 45% in Group’s market capitalisation, being 100% related to increase in the share price (14.5 cents Dec 21 versus 10.0 cents Dec 20; 10.5 cents Jun Market Capitalisation $14.46m $9.97m $4.49m 21), n
Slide 20: Strategy & Outlook
4 Strategy & Outlook 20 10 March 2022 …Leading Stealth Global 2022 Half Year Results. …Leading The The Future Future Of Industrial Of Industrial MROMRO Distribution Distribution
Slide 21: Strategic Direction 2025
Strategic Is to transform the delivery of Direction 2025 Our industrial MRO products and Ambition solutions in Australia growing our market position. Creating long-term value. Connecting our products and Focused on becoming the services into every workplace, Connecting Number 1 number one choice eve
Slide 22: Stealth Is On A Clear And Ambitious Growth Journey
Aligned To Our Strategic Direction Stealth Is On A Clear And Ambitious Growth Journey… 1 Market Position 2 Company of Choice 3 Financial Targets AUSTRALIA’S LEADING INDUSTRIAL SALES GROWTH SUPPLIERS DISTRIBUTION GROUP +25% per year next 3 years In any of our verticals Expanding our plug and play dis
Slide 23: Priorities: Short-to-mid-term Horizon
Leveraging Scale, Volume And Vertically Integrated Portfolio Priorities…. Short-to-mid-term Horizon We continue to fine-tune our strategy and key areas of focus. Primary Value Levers Key Drivers Lower cost as % of sales. Leverage buying power. Financial Capital allocation toward future value accreti
Slide 24: Short-to-medium Term Outlook
Short-to-medium Term Outlook - Expect To Make Good Progress With Our Strategic Priorities We are uniquely placed to leverage new capabilities to accelerate further growth 1 Outlook Short-term 2 Outlook Medium-term Strong Organic Growth Driven by scale, network depth, cross sell and new contracts. •
Slide 25: In Summary - Key Messages
In Summary - We Are Excited About The Future 1 We have a stronger business model, materially increased scale and operating leverage with new market advantage, to win market share. Key 2 We have one of the largest networks of company owned and independent retailer assets, delivering experiences that
Slide 26: Additional Information
5 Additional Information 26 10 March 2022 …Leading Stealth Global 2022 Half Year Results. …Leading The The Future Future Of Industrial Of Industrial MROMRO Distribution Distribution
Slide 27: Group Results Summary Including Discontinued Operations
Half Year 2022 Group Results Summary Including Discontinued Operations $m H1 FY221 H1 FY211 Change % Total revenue 46.5 30.4 +53% Underlying EBITDA 3.55 0.71 +400% Unusual Items2 (0.76) (0.95) +20% Total EBITDA pre JobKeeper income 2.79 (0.24) +1062% JobKeeper income - 1.38 -100% Total EBITDA 2.79 1
Slide 28: Our Products And Services
Our Products Our Products And Services More than 1 million products available. 400,000 products are held in-stock in our distribution centres, branch stores and onsite stores. Popular categories include; And more… 28 10 March 2022 …Leading Stealth Global 2022 Half Year Results. …Leading The The Futu
Slide 29: We Are A Multi-Specialist with Six Strong Brands
Our Operating Companies We Are A Multi-Specialist with Six Strong Brands Industrial & Safety Tooling, Industrial & Safety MRO Business Business & Retail Business & Retail Omnichannel provider of industrial and Omnichannel provider of industrial, Provider of industrial, MRO, truck, safety products an
Slide 30: Update Skipper Transport Parts – Acquisition and Integration
Half Year 2022 Update Skipper Transport Parts – Acquisition and Integration Overview − Commencement 1 September 2021. − Required investment to better position the business strongly in the future. − GP % margin tracking at 33%. − Sales ~12% behind plan from divesting low margin customers. − Costs of
Slide 31: 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 32: A Leading Industrial Distribution Group
A Leading Industrial Distribution Group Specialising in industrial maintenance, repairs, operations “MRO” & safety supplies and related services and solutions. ABN 25 615 518 020 Level 2,43 Cedric Street, Stirling, Western Australia 6021 www.stealthgi.com 10 March 2022 …Leading Stealth Global 2022 H
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