FY20 Full Ye a r Re sults Pre se nta tio n 21 Aug ust 2020 De live - PowerPoint PPT Presentation

FY20 Full Ye a r Re sults Pre se nta tio n 21 Aug ust 2020 De live ring inno va tive industrial so lutio ns a nd se rvic e s ASX: CYG

T ra ding upda te ASX: CYG

E xe c utive summa ry T he he a lth, sa fe ty a nd we llb e ing o f o ur pe o ple is o ur numb e r o ne prio rity. During the ye a r we He a lth a nd sa fe ty ha d 13 L o st T ime Injurie s (L T I’ s). We re ma in c o mmitte d to o ur a spira tio n fo r ze ro L T I’ s a nd ze ro impa c t o n o ur pe o ple . T ra ding pe rfo rma nc e impro ve d during F Y20 with the Gro up de live ring unde rlying pro fita b ility T r a ding upda te g ro wth fo r b o th E BIT DA a nd E BIT . Our b e st re sult fo r ma ny ye a rs wa s a c hie ve d a g a inst the b a c kdro p o f the COVID-19 pa nde mic shutdo wns a nd re stric tio ns a c ro ss Austra lia a nd Ne w Ze a la nd with he a dwinds inc luding c urre nc y de va lua tio n, insura nc e c o st inc re a se s a nd lo ss o f inc o me fro m o ur Re dc liffe , WA pro pe rty. Gro up unde rlying E BIT DA o f $6.6m ($2.8m F Y19), a $3.8m impro ve me nt ye a r o n ye a r. Gro up unde rlying E BIT o f $4.0m ($1.1m F Y19). T he Gro up ha s a so lid b a la nc e she e t with Ne t Asse ts o f $102.1m a nd Ne t T a ng ib le Asse ts o f Ba la nc e she e t $47.6m a s a t 30 June 2020. Ne t de b t o f $3.3m a t 30 June 2020. Our prio rity ha s b e e n the he a lth, sa fe ty a nd we llb e ing o f o ur pe o ple . T he ma jo r impa c t o n COVID-19 the Gro up in F Y20 wa s the suspe nsio n o f o pe ra tio ns in Ne w Ze a la nd. Sinc e re c o mme nc ing o pe ra tio ns, sa le s in Ne w Ze a la nd ha ve c o ntinue d to pe rfo rm to e xpe c ta tio ns, a s ha ve o ur Austra lia n o pe ra tio ns. With the e xc e ptio n o f KAA in Vic to ria a nd KANZ in Auc kla nd, a ll b usine ss units a re c urre ntly fully o pe ra tio na l. Our visio n is to c re a te a le a ding Industria l Supply a nd Se rvic e s Gro up a c hie ving susta ina b le Gr owth str a te g y pro fita b le g ro wth thro ug h se nsib le o rg a nic de ve lo pme nt (ma rke t sha re g a ins, ne w b ra nc he s, ne w pro duc ts a nd ne w g e o g ra phie s) a nd se nsib le stra te g ic a c q uisitio ns. Note : Unde rlying E BIT and E BIT DA e xc lude the impac t of AASB 16 - L e ase s 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 llb e ing o f o ur pe o ple is o ur num b e r o ne prio rity 13 L o st T ime Injurie s (L T I’ s) fo r a to ta l o f 108 lo st d a ys in FY20. • We value the 8 o f the L T I’ s we re in ne wly a c q uire d b usine sse s. • health, safety and All inc id e nts a nd se rio us ne a r misse s a re re vie we d b y the C o ve ntry L e a d e rship • wellbeing of our T e a m (C L T ) to e nsure we le a rn fro m e a c h inc id e nt a nd imp ro ve o ur sa fe ty syste ms. In future , we will a c c e le ra te imp le me nta tio n o f o ur sa fe ty syste ms into people first and ne wly a c q uire d b usine sse s. foremost. • During the C OVID-19 p a nd e mic we a re p rio ritising the he a lth, sa fe ty a nd we llb e ing o f o ur p e o p le a lo ng with o ur c usto me rs, sup p lie rs a nd c o mmunitie s. Our aspiration is C o m m itm e nt to im pro ving o ur he a lth, sa fe ty a nd we llb e ing syste m s for zero lost time in FY21 injuries and zero Inve stme nt in a dditio na l he a lth a nd sa fe ty re so urc e s. • impact on our He a lth, sa fe ty a nd we llb e ing a wa re ne ss pro g ra m la unc h in Oc to b e r a s pa rt o f • people. Na tio na l Sa fe Wo rk Mo nth – Safe ty 1 st . • Inc re a se d fo c us o n we llb e ing a nd me nta l he a lth, pa rtic ula rly during the COVID- 19 pa nde mic . • Impro ving ma nua l ha ndling syste ms in the Nub c o ne two rk. • De ve lo ping sa fe wo rking fro m ho me pra c tise s a nd fle xib le wo rking a rra ng e me nts. ASX: CYG

Fina nc ia l Hig hlig hts Stro ng FY20 sa le s g ro wth o f 22.3% inc luding a c q uisitions • E xc luding a c q uisitio ns F Y20 sa le s g ro wth o f 4.7% de spite the lo ss o f 39.8% 23 tra ding da ys in o ur Ne w Ze a la nd tra de distrib utio n ne two rk. • Gro up sa le s inc luding a c q uisitio ns a t $247.6m ($202.3m F Y19). • Gro up sa le s fo r July 2020 up 7.7% o n the prio r ye a r. G ro up FY20 unde rlying EBIT DA o f $6.6m • $16.3m E BIT DA turna ro und in thre e ye a rs. • $3.8m E BIT DA impro ve me nt o ve r F Y19. • Sta tuto ry ne t pro fit o f $0.8m. Ba la nc e she e t in a stro ng po sitio n - ne t de b t o f $3.3m a t 30 June 2020 • Ne t a sse ts o f $102.1m. Curre nt Asse ts e xc e e ding Curre nt L ia b ilitie s b y $42.7m. • At 30 June 2020 we ha ve re c o rde d a o ne -o ff, no n-c a sh o ne ro us 7.5% le a se pro visio n fo r o ur Re dc liffe WA pro pe rty o f 12.2m a nd a o ne - o ff, write -o ff o f $6.5m fo r le g a c y o ld a nd unsa le a b le inve nto ry. • Sub sta ntia l Austra lia n ta x lo sse s in the o rde r o f $75.5m. With a re turn to pro fita b ility, a De fe rre d T a x Asse t – T a x L o sse s o f $13.1m ha s b e e n re c o g nise d in re la tio n to the se a c c umula te d lo sse s. • L o c ke d in a n inc re a se d $40m se c uritise d tra de re c e iva b le s fa c ility with o ur princ ipa l fina nc ie r, Sc o ttish Pa c ific , fo r a 36 mo nth te rm. ASX: CYG

T ra d ing p e rfo rma nc e b y se g me nt F luid Syste ms T r ade Distr ibution 39.8% • Trade Distribution (TD) sales including acquisitions up 28.1% on • Fluid Systems (FS) sales have again seen very strong growth the prior year and excluding acquisitions up 2.6% on the prior with full year sales including acquisitions up 15.2% on the prior year. Underlying EBITDA for TD was $6.7m compared to $3.3m year and excluding acquisitions up 8.5% on the prior year. The in FY19. Sales growth and EBITDA were negatively impacted by underlying EBITDA for FS was $10.3m compared to $8.8m in the enforced Government shutdown in New Zealand. FY19. • Konnect & Artia New Zealand (KANZ) continued to perform • Sales growth is continuing to be driven by our strong value strongly. Sales up 1.0% on the prior year but impacted by the proposition in the mining and resources sector and our loss of 23 days sales during the shutdown and continued diversification into new sectors including Defence, Agriculture, disruption due to pandemic restrictions. Transport and Recycling. • Konnect and Artia Australia (KAA) sales up 3.4% on the prior • The integration of Torque is progressing to plan with relocation year. Further branch consolidation with the closure in June of to a new custom built facility in Adelaide, SA along with our our unprofitable Darwin branch and merge of Chinchilla into Cooper Fluid Systems operation now completed. Toowoomba and Morningside into Pinkenba. Variable cost reductions were delivered in Q4 FY20 and further savings from supply chain optimization will be delivered in Q1 FY21. We have 7.5% the building blocks in place for success and remain committed to our strategy. • Nubco network of branches had very strong sales growth. Some margin and cost pressure is being managed. In May 2020, Nubco’s Sales and Marketing Manager Nick Daw was promoted to General Manager succeeding the previous owner, Paul Krawczyk. Pleasingly, this transition has been successful and well received by customers and staff. ASX: CYG