FY19 Full Ye a r Re sults Pre se nta tio n Aug ust 2019 De live - PowerPoint PPT Presentation

FY19 Full Ye a r Re sults Pre se nta tio n Aug ust 2019 De live ring inno va tive industrial so lutio ns a nd se rvic e s ASX: CYG

Co rpo ra te Sna psho t – Aug ust 2019 Ke y Ma rke t Me tric s SHARE PRIC E SHARES ON MARKET NET DEBT ISSUE C APIT AL ISAT IO N 22 Aug ust 2019 30 June 2019 $ 0.92 $ 82.5 M $ 4.1 M 89.7 M PRO - FO RMA ENT ERPRISE EV / FY19 PRO - FY19 REVENUE VAL UE FO RMA REVENUE $ 233.8 $ 86.6 M $ 0.37x Substa ntia l Sha re holde rs 30.8 % 8.1 % 6.6 % 6.4 % ASX: CYG

Fina nc ia l Hig hlig hts Co ve ntry Gro up’s trading pe rfo rmanc e has Stro ng FY19 sa le s g ro wth +20.4% inc luding a c quisitio ns impro ve d sig nific antly o ve r FY19. • E xc luding a c q uisitio ns F Y19 sa le s g ro wth +7.0% whic h re pre se nts 39.8% so lid o rg a nic g ro wth – mo me ntum is b uilding a s o ur va lue pro po sitio n impro ve s. 25.1% • T he Gro up de live re d re c o rd da ily sa le s fo r June . G ro up re turns to pro fita bility FY19 EBIT DA $2.8m 10.9% • $12.5m E BI T DA turna ro und in two ye a rs • Sig nific a nt c o ntrib utio n e xpa nsio n o ppo rtunity in K o nne c t a nd Artia 5.1% Austra lia a s g ro wth re duc e s fixe d c o sts a s a pe rc e nta g e o f sa le s. Q 2 Q 3 Q 4 Q 1 Ba la nc e she e t in a stro ng po sitio n - ne t de bt re duc e d to $4.1m a t 30 June 2019 Qua rte rly sa le s g ro wth (inc luding a c q uisitio ns) • Ne t a sse ts o f $101.0m • T he b usine ss is hig hly c a sh g e ne ra tive with limite d c a pe x a nd $71.9m 9.5% ta x lo sse s a va ila b le . 7.5% • F uture a c q uisitio ns to b e funde d b y o pe ra ting c a sh flo ws a nd de b t. • Adva nc e d disc ussio ns unde rwa y with ma jo r b a nks fo r a fle xib le lo w 6.0% c o st c o rpo ra te de b t fa c ility. 5.1% Nubc o a nd T o rque inte g ra tio ns pro g re ssing to pla n Q 1 Q 2 Q 3 Q 4 • Sa le s a nd pro fit ma rg ins in line with e xpe c ta tio ns Qua rte rly sa le s g ro wth (e xc luding a c q uisitio ns) ASX: CYG

Busine ss Ove rvie w We sup p ly a ra ng e o f fa ste ning syste ms, industria l p ro duc ts a nd hydra ulic s, lub ric a tio n, fire sup p re ssio n a nd re fue ling syste ms, c a b ine t ha rdwa re syste ms a nd o the r p ro duc ts. T ra de Distributio n (T D) Fluid Syste ms (FS) Co mp rise s Co o p e r Fluid Syste ms (CFS) Co mp rise s Ko nne c t a nd Artia a nd T o rq ue Ind ustrie s. De sig ns, FS Austra lia (KAA), Ko nne c t a nd ma nufa c ture s a nd se lls hyd ra ulic s, Artia Ne w Ze a la nd (KANZ), a nd lub ric a tio n, fire sup p re ssio n a nd re fue lling Nub c o . Sup p lie s a ra ng e o f syste ms a nd p ro d uc ts thro ug h 12 fa ste ning syste ms, c a b ine t b ra nc he s in Austra lia . Custo me rs a re in ha rd wa re syste ms, ind ustria l a nd TD the mining , ma nufa c turing , d e fe nc e a nd c o nstruc tio n p ro d uc ts thro ug h a a g ric ulture se c to rs. ne two rk o f 48 b ra nc he s in Austra lia a nd 16 b ra nc he s in Ne w Ze a la nd . Custo me rs a re in the ma nufa c turing , c o nstruc tio n, a g ric ulture a nd mining se c to rs. ASX: CYG

Visio n / Stra te g ic Dire c tio n Our visio n is to c re a te a le a ding Industria l Sup p ly a nd Se rvic e s Gro up a c hie ving susta ina b le p ro fita b le g ro wth thro ug h se nsib le o rg a nic de ve lo p me nt a nd a c q uisitio ns. EXC IT ING O PPO RT UNIT Y T O BUIL D A L EADING SC AL ED INDUST RIAL SUPPL Y G RO UP As the G ro up ha s T he Bo a rd a nd A c le a r o p p o rtunity G ro wth c a n b e sta b ilize d p e rfo rma nc e Exe c utive L e a d e rship a c hie ve d thro ug h a e xists to b uild a hig hly o ve r re c e nt time s a nd T e a m ha ve sig nific a nt fo c use d sc a le d Ind ustria l c o mb ina tio n o f: Sup p ly a nd Se rvic e s re turne d to e xp e rie nc e in B2B O rg a nic g ro wth p ro fita b ility, tra d e / ind ustria l sup p ly b usine ss with le a d ing (ma rke t sha re g a ins, a nd se rvic e d istrib utio n ma rke t p o sitio ns a c ro ss the Bo a rd a nd ne w b ra nc he s, ne w Exe c utive L e a d e rship ma rke ts a nd kno w wha t multip le g e o g ra p hie s, p ro d uc ts a nd ne w T e a m ha ve sp e nt time se c to rs a nd p ro d uc ts. the b lue p rint fo r suc c e ss g e o g ra p hie s); d e ve lo p ing the visio n lo o ks like . fo r the b usine ss o ve r Se nsib le stra te g ic the ne xt five ye a rs. T he Exe c utive L e a d e rship a c q uisitio ns. T e a m a lso ha s sub sta ntia l e xp e rie nc e id e ntifying , c o mp le ting a nd inte g ra ting a c q uisitio ns. ASX: CYG

Ke y Pe o p le JAMES T O DD NEILC AT HIE RO BERTBUL L USS ANDREW NISBET RO D JAC KSO N I nde pe nde nt No n- I nde pe nde nt No n- I nde pe nde nt No n- CF O CE O & Ma na g ing E xe c utive Dire c to r E xe c utive Cha irma n E xe c utive Dire c to r Dire c to r Ap p o inte d C FO in Se p te mb e r Ap p o inte d in Se p te mb e r 27 ye a r c a re e r a t Austra lia ’ s Ap p o inte d C EO in Ma y 2017 Ap p o inte d in Se p te mb e r 2017. la rg e st a nd mo st suc c e ssful a fte r ho ld ing the ro le o f C FO 2018. 2017. p lumb ing a nd b a thro o m a nd C o mp a ny Se c re ta ry Sp e nt fo ur ye a rs a s the d istrib uto r, Re e c e L imite d , in sinc e O c to b e r 2016. Fo rme r Ma na g ing Dire c to r Exte nsive c a re e r in se nio r Fina nc e Dire c to r a t Bunzl fina nc e a nd g o ve rna nc e o f Wo lse le y Priva te Eq uity, ma na g e me nt ro le s a t O utso urc ing Se rvic e s L td p rio r ro le s. 15 ye a rs a s C FO within the a n ind e p e nd e nt p riva te Re e c e L imite d . to jo ining the C o ve ntry G ro up . Austra lia n d ivisio n o f Bunzl e q uity firm whic h he c o - Be fo re this he wa s the C FO a t p lc . Dire c to r a t a nd a d viso r to a fo und e d in 1999. L info x. numb e r o f p riva te c o mp a nie s inc lud ing No n-e xe c utive d ire c to r o f ASX Bo we ns T imb e r & Ha rd wa re liste d c o mp a nie s IVE G ro up a nd Mid d e nd o rp Ele c tric . Ltd a nd HRL Ho ld ing s L td . ASX: CYG

Our Sto ry 1929 1967 1984 _ _ _ 1929 1966 1965 1983 2000 T he b usine ss p ro sp e rs. Mr Ro na ld Ja me s K yle L iste d o n Ac q uire s a numb e ro f Nume ro us a c q uisitio ns inc luding a c q uire s a c a r d e a le rship the ASX. b usine sse s: d ive rsific a tio n into a numb e r o f Ap p o inte d b o th Fo rd a nd Ho ld e n fro m a liq uid a to r a nd Fa ste ne rs b usine sse s a nd Co o p e r p ro d uc ts distrib uto r. 1972 – Ind ustria l Sa le s Ho lding s. Co ve ntry Mo to r Fluid Syste ms. 1975 – We st Co a st Auto ma tic s. Ac q uire s Ra p ha e ls Pty L td in 1958. Re p la c e me nts is b o rn. Esta b lishme nt o f 1977 – Mo to r T ra d e rs in SA (first Co ve ntry Auto Pa rts (CAP) in 1998. G ro ws to six b ra nc he s in WA with inte rsta te e xp a nsio n). 450 p e o p le . By 1999 the G ro up ha s 1,900 p e o p le . 2019 2000 2007 _ _ 2017 2018 & 2006 2016 BEYOND Hig hly fo c use d b o a rd a nd ma na g e me nt te a m. G ro up re ve nue Sa le o f a uto mo tive Ne w se nio r Ac q uisitio n o f re a c he s $500m. d ivisio ns. ma na g e me nt te a m. T o rq ue a nd Ac q uisitio n o f Nub c o a nd c a p ita l ra ise . c a p ita l ra ising . Bo a rd re struc ture . L o sse s o c c urin Pe rio d o f d e c lining Busine ss is fo c use d o n two ve rtic a ls with ke y CAP b usine ss. sa le s in re ma ining Sa le o f AA G a ske ts. c o mp e titive a d va nta g e s. b usine sse s. K o nne c t a nd Artia Imp le me nt turna ro und in K o nne c t a nd Artia Austra lia stra te g y re se t. Austra lia a nd d rive susta ina b le p ro fita b le g ro wth. ASX: CYG

De ta ile d F Y19 F ina nc ia l Re sults • Sa le s +20.4% (inc luding a c q uisitio ns) F Y19 F Y19 inc luding ($m) e xc luding F Y18  Sa le s +7.0% e xc luding a c q uisitio ns ac quisitions ac quisitions  Sa le s o f $202.3m (F Y18: $168.1m) Revenue from sale of  E 202.3 179.8 168.1 xc e lle nt g ro wth in CF S a nd K ANZ goods  K AA sa le s de c line a rre ste d a nd se t up fo r 2.8 -1.1 -4.7 EBITDA g ro wth • Unde rlying E BI T DA o f +$2.8m (inc luding 1.1 -2.4 -6.1 EBIT a c q uisitio ns)  Unde rlying E Net loss after tax from BI T inc luding a c q uisitio ns o f -1.4 -8.3 +$1.1m Continuing Operations • Ne t lo ss a fte r ta x fro m c o ntinuing -4.1 5.0 Net debt o pe ra tio ns –$1.4m  L o ss re duc e d b y +$6.9m fro m -$8.3m lo ss in 53.3 48.4 Net Tangible Assets F Y18 fro m c o ntinuing o pe ra tio ns • No inte rim divide nd de c la re d • Sub sta ntia l impro ve me nt in E BI T DA run ra te in se c o nd ha lf o f F Y19 ASX: CYG