FY20 Ha lf Ye a r Re sults Pre se nta tio n Fe b rua ry 2020 De - PowerPoint PPT Presentation

FY20 Ha lf Ye a r Re sults Pre se nta tio n Fe b rua ry 2020 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 Ke y Ma rke t Me tric s SHARE PRIC E SHARES ON MARKET NET DEBT ISSUE C APIT AL ISAT IO N 20 Fe b rua ry 2020 31 De c e mb e r 2019 $ 1.085 $ 97.4 M 89.8 M $- 5.9 M Substa ntia l Sha re holde rs 30.8 % 5.1 % 9.5 % 5.8 % ASX: CYG

He a lth, Sa fe ty a nd We llb e ing T he he a lth, sa fe ty a nd we llbe ing o f o ur pe o ple is o ur numbe r o ne prio rity We value the • 5 L o st T ime Injurie s (L T I’ s) in FY20 health, safety and • All p e o p le re turne d to wo rk in a sho rt time fra me wellbeing of our people first and C o mmitme nt to impro ving o ur he a lth, sa fe ty a nd foremost. we llbe ing syste ms • Inve stme nt in he a lth a nd sa fe ty re so urc e s Our aim is for zero • Imp ro ving inc id e nt a nd ne a r miss re p o rting a nd inve stig a tio ns lost time injuries. • L e a d e rship T e a m re vie w o f a ll L T I’ s a nd ma jo r ne a r misse s • G ro up -wid e sa fe ty a le rts • Co mmitme nt to we llb e ing p ro g ra ms a nd a wa re ne ss thro ug h initia tive s suc h a s ‘ RUO K? ’ d a y, Sa fe Wo rk Mo nth a nd o ur EAP p ro g ra m • Co mmitme nt to le a d e rship tra ining a nd d e ve lo p me nt 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, se lls a nd ma inta ins Artia Ne w Ze a la nd (KANZ), a nd hyd ra ulic s, lub ric a tio n, fire sup p re ssio n Nub c o . Sup p lie s a ra ng e o f a nd re fue lling syste ms a nd p ro d uc ts fa ste ning syste ms, c a b ine t thro ug h 12 b ra nc he s in Austra lia . ha rd wa re syste ms, ind ustria l a nd TD Custo me rs a re in the mining , c o nstruc tio n p ro d uc ts thro ug h a ma nufa c turing , d e fe nc e a nd a g ric ulture ne two rk o f 49 b ra nc he s in se c to rs. Austra lia a nd 15 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 T he 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 Exe c utive L e a d e rship a c hie ve d thro ug h a sta b ilize d p e rfo rma nc e e xists to b uild a hig hly 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: a nd ha s a c le a r Sup p ly a nd Se rvic e s e xp e rie nc e in B2B p a thwa y b a c k to O rg a nic g ro wth tra d e / ind ustria l sup p ly b usine ss with le a d ing susta ina b le p ro fita b le (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 g ro wth. ne w b ra nc he s, ne w 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 se c to rs a nd p ro d uc ts. T he Bo a rd a nd the b lue p rint fo r suc c e ss g e o g ra p hie s); Exe c utive L e a d e rship lo o ks like . T e a m ha ve d e ve lo p e d All o ur ma rke ts a re Se nsib le stra te g ic the visio n a nd stra te g y fra g me nte d a nd ripe fo r T he Exe c utive L e a d e rship a c q uisitio ns. fo r the b usine ss o ve r c o nso lida tio n a nd T e a m a lso ha s sub sta ntia l the ne xt five ye a rs. a c q uisitio ns. 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 . No n-e xe c utive d ire c to r o f ASX fo und e d in 1999. L info x. liste d Exp e rie nc e C o L imite d . No n-e xe c utive d ire c to r o f ASX Dire c to r a t a nd a d viso r to a liste d c o mp a nie s IVE G ro up numb e r o f p riva te Ltd a nd HRL Ho ld ing s L td . c o mp a nie s inc lud ing Bo we ns T imb e r & Ha rd wa re a nd Mid d e nd o rp Ele c tric . 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 . 2020 2000 2007 2018 - _ _ 2017 & 2019 2006 2016 BEYOND 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 Hig hly fo c use d b o a rd a nd ma na g e me nt te a m. re a c he s $500m. d ivisio ns. ma na g e me nt te a m. T o rq ue a nd Busine ss is fo c use d o n two ve rtic a ls with ke y 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 c o mp e titive a d va nta g e s. CAP b usine ss. sa le s in re ma ining Sa le o f AA G a ske ts. Ac q uisitio n o f Imp le me nt turna ro und in K o nne c t a nd Artia b usine sse s. Nub c o a nd K o nne c t a nd Artia Austra lia a nd d rive susta ina b le p ro fita b le g ro wth. c a p ita l ra ise . Austra lia stra te g y re se t. ASX: CYG

FY20 T ra d ing Up d a te Co ve ntry Gro up ’ s tra ding p e rfo rma nc e c o ntinue s to imp ro ve in FY20. Stro ng H1 FY20 sa le s g ro wth +36.8% inc luding a c q uisitio ns 39.8% • E xc luding a c q uisitio ns H1 F Y20 sa le s g ro wth +7.7% whic h re pre se nts so lid o rg a nic g ro wth – 39.2% H1 sale s gr o wth inc . ac quisitio ns mo me ntum is b uilding a s o ur va lue pro po sitio n impro ve s. • All b usine ss units ha ve inc re me nta l sa le s pro je c ts fo r de live ry in H2 F Y20 a nd a stro ng pipe line 39.3% o f pro spe c ts. 34.3% • K o nne c t Austra lia sa le s g ro wth H1 F Y20 +5.8%, whic h is a sig nific a nt impro ve me nt o ve r F Y19 re sults. G ro up pro fita b ility im pro ving • F Y20 E BI T DA fo re c a st $10m+ a ssuming c o ntinua tio n o f c urre nt tre nds, the suc c e ssful e xe c utio n o f ke y initia tive s a nd no a dve rse b ro a de r ma rke t de ve lo pme nts. Q1 Q2 Ba la nc e she e t in a stro ng po sitio n • Ne t a sse ts o f $103.6m. • Ne t de b t o f -$5.9m. H1 sale s gr o wth e xc . ac quisitio ns • T e nde r pro c e ss unde rwa y to se c ure a fle xib le , lo w c o st c o rpo ra te de b t fa c ility. 8.3% Ac q uisitio ns 7.5% 7.5% 7.1% • T he T o rq ue a nd Nub c o a c q uisitio ns a re de live ring po sitive re sults fo r the ir re spe c tive se g me nts. C o ro na virus im pa c t • I t is to o e a rly to pre dic t the impa c t o f the Co ro na virus o n o ur supply c ha in. T he Gro up c o ntinue s to mo nito r the impa c t o n o ur supplie rs in China a nd o the r Asia n re g io ns a nd o ur ma rine fre ig ht c a rrie rs. We e xpe c t so me impa c t in the ne a r te rm. Q1 Q2 ASX: CYG