Slide 1: Investor Presentation: Full Year Results to 30 June 2017
For personal use only Investor Presentation Full Year Results to 30 June 2017 29 August 2017 1
Slide 2: Agenda
Agenda For personal use only Overview Financials Business conditions, strategy and outlook 2
Slide 3: Overview
Overview For personal use only • Group financial performance for the year was disappointing – Sales down 4.3% to $169.1m ($176.8m pcp) – Underlying EBIT -$8.7m (-$3.2m pcp) – Reported loss for the year of -$35.5m (after -$25.0m of significant items – largely non-cash) • 2H17 has shown signs of impro
Slide 4: Setting up the business for sustainable growth
Setting up the business for sustainable growth For personal use only • New management team focused on growth initiatives Focus Areas – New CEO (Robert Bulluss) • Customer service – New Interim CFO (Joanna Walker) – New GM of TD Australia (Mark Page) • Product range review – GM of TD New Zealand (Mik
Slide 5: Group – financial summary
Group – financial summary For personal use only % H1 H2 • Sales down 4.3% to ($m) FY16 FY17 change FY17 FY17 $169.2m Revenue from sale of goods 176.8 169.2 -4.3% 85.3 83.9 • Underlying EBITDA of Underlying EBITDA 0.1 -5.8 n/m -4.4 -1.4 -$5.8m (-$1.4m in 2H17) Underlying EBIT -3.2 -8.7 n/m -5.7 -3.0
Slide 6: Financials
For personal use only Financials 6
Slide 7: Coventry's business segments
Coventry’s business segments For personal use only 2 1 Trade Distribution Supplier of spare parts, workshop and on-site The largest specialty fastener services to mining & related industries distributor in Australia and New Zealand 3 Niche supplier of hardware to the kitchen & cabinet maker industry
Slide 8: Trade Distribution
Trade Distribution For personal use only ($m) FY16 FY17 % change 1H17 2H17 Revenue 108.5 96.9 -10.6% 50.6 46.3 EBIT (underlying) -1.0 -5.2 n/m -3.4 -1.8 • FY17 results are disappointing however there are signs of improvement in Q4 and YTD18 • EBIT loss in 2H17 reduced due to improved margin % and im
Slide 9: Cooper Fluid Systems
Cooper Fluid Systems For personal use only ($m) FY16 FY17 % change 1H17 2H17 Revenue 53.2 54.1 1.7% 25.6 28.5 EBIT 2.8 2.6 -6.9% 1.1 1.5 • Overall positive contribution result for CFS with improvement in 2H17 and in particular the last quarter • CFS has shown strong signs of sales growth in 2H17 (11
Slide 10: AA Gaskets
AA Gaskets (1) For personal use only ($m) FY16 FY17 % change 1H17 2H17 Revenue 15.1 18.1 19.8% 9.1 9.0 EBIT (Underlying) 2.9 3.8 8.4% 2.0 1.8 • AA Gaskets (72.5% owned) continues to perform strongly, reporting a record year • Market leader now servicing all of the major customers in the industry • I
Slide 11: Corporate
Corporate For personal use only ($m) FY16 FY17 % change 1H17 2H17 Property Operations (net) -0.8 -0.7 0% -0.3 -0.4 Head office operating costs (underlying) 9.5 9.1 -2% 4.8 4.3 EBIT (underlying) -8.7 -8.4 -2% -4.5 -3.9 • Head office provides centralised support services to the Group – Full impact of
Slide 12: Cash flow
Cash flow For personal use only ($m) FY16 FY17 Net cash from operating activities -1.9 -4.9 Net cash from investing activities -1.7 -0.2 Net cash used in financing activities -2.6 7.5 Net (decrease)/increase in cash and cash equivalents -6.2 2.4 Cash and cash equivalents 3.5 5.1 • Cash balance of $5
Slide 13: Balance sheet
Balance sheet For personal use only ($m) Jun-16 Jun-17 • NTA of $1.30 per share remains at a Cash & cash equivalents 3.5 5.1 premium to the CYG share price Inventories 57.4 49.3 Trade and other receivables 30.8 29.3 • $25.0m of largely non-cash adjustments Total current assets 91.7 83.7 have reduced
Slide 14: Balance sheet significant items and impairments
Balance sheet significant items and impairments For personal use only $9.8m in significant items 2H17 • $7.1m adjustment to stock valuation • $2.0m de-recognition of DTA – tax losses • $0.5m restructuring costs • $0.6m costs in relation to cyber attack • -$0.4m profit on sale of motor vehicle fleet
Slide 15: Business conditions, strategy and outlook
For personal use only Business conditions, strategy and outlook 15
Slide 16: Business conditions appear to be improving
Business conditions appear to be improving For personal use only • Mining sector and associated industries the most material component of the Group’s customers – 75% of Top 50 customers are exposed to mining – Maintenance capex is forecast to grow 10.3% p.a. to 2021 – Spending in the mining sector (
Slide 17: Strategy update
Strategy update For personal use only • Following management team changes a revised strategy for Store footprint strategy TDA was developed • Underperforming – Successful strategies in TDNZ, CFS and AAG continue to be refined stores are being fixed, and implemented merged or closed • TDA business st
Slide 18: Outlook
Outlook For personal use only • Trading over May - MTD August is encouraging – Group sales have been up on the previous year May (+5.5%), June 2018 Outlook (+3.1%), July (+8.9%), August MTD (circa +10.0%) • It remains difficult to • Three businesses are providing solid results and will likely predic
Slide 19: Disclaimer
Disclaimer For personal use only Reliance on third party information The information and views expressed in this Presentation were prepared by Coventry Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified.