COVENTRY GROUP LIMITED — Interim / Quarterly Report 2012

Mar 1, 2012

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Coventr Grou Ltd y p

ABN 37 008 670 102

“REPOSITIONING THE PORTFOLIO”

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Roger Flynn Executive Chairman

Tony Hockley Chief Financial Officer

Market Update March 2012

The Six Months Tradin Results g

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A STORY IN 2 PARTS – REFLECTIVE OF “TWO SPEED ECONOMY”

• Strong results for fluids and gaskets

• Poor result for fasteners and hardware

• Resource driven demand in Western Australia and north Queensland very good for fluids and fastener businesses

• Overall profit before tax from continuing operations (excluding property sales) $5.8M

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The Commitment to Shareholders

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STRONG RETURNS FOR CONTINUING AND EXITING SHAREHOLDERS

• Total of $10M cash returned to shareholders during period by a combination of dividends ($6.3M) and buy back (to exiting shareholders of $3.7M)

• NTA/share up 9% to $3.67

• EPS for total Group 34.3c with EPS from continuing operations 25.7c (including profit on property sales)

• Total debt eliminated - $50M in cash at period end

• Share price outperformed market

• 11c fully franked dividend to be paid in March 2012

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The Commitment to Shareholders

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NTA HAS GROWN OVER THE LAST 2.5 YEARS WHILST REGROWING DIVIDENDS

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$/Share
Cumulative Div Paid
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Pursuin the Announced Strate g gy

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THE ANNOUNCED STRATEGY EXECUTED TO PLAN

• Exit from Auto achieved successfully/smoothly Profit from disposal $4.8M including $4.5M for sale of auto business

• 15 properties sold at a profit ($9.0M), 3 contracted for sale in 2012, 1 yet to be sold

• Capital management program - $10M cash returned to shareholders

• Active program to market our IT capability (Managed System Services Pty Ltd) – 2 customers already secured

• Small investment – Fluidrive – in February 2012 to enhance our fluids business

• On going search for value enhancing acquisitions but disciplined approach to investment decision

• Majority of cash receipt planned from exit of Auto/related properties ($70M) ≈

• was received in period ( $58M)

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The Continuin Businesses g

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COVENTRY FASTENERS & HPF ARE STRONG LEADING PLAYERS WELL POSITIONED FOR CYCLICAL RECOVERY

• :

• Geographic Markets All states of Australia (QLD/WA largest), New Zealand

• Divisional Office

• : Perth, (54 branches)

• Dimensions

• : Sales $130m

Employees 500

EBIT: small loss currently but has historically been 9% Cap Empl $40m

• Key Markets

• : Infrastructure, construction (non-residential), fabrication

• Key Competitors : Blackwoods and many independents and multi-nationals

• Market Position

• : Strongest player in specialised fastening products

• Key Economic Drivers

• : Non-residential construction, infrastructure spend (public & private), general manufacturing activity

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The Continuing Businesses (Cont’d) COOPER FLUID SYSTEMS IS WELL LED & WELL PLACED TO CONTINUE GROWING

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• :

• Geographic Markets WA, QLD, SA and small amount of export

• Divisional Office : Brisbane, (7 branches)

• Dimensions

• : Sales $80m

• Employees 130

EBIT 15%

Cap Empl $20m

• Key Markets

• Key Competitors / Market Position

• : Hydraulic hose/fittings to resource industry equipment

• : Many – fragmented market

• :

• Key Economic Resource related activity Drivers

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The Continuing Businesses (Cont’d)

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ARTIA (CABINET FURNITURE AND HARDWARE) HAS A SMALL MARKET SHARE WITH GROWTH POTENTIAL

• Geographic Markets : All states of Australia and New Zealand

• Divisional Office

• Dimensions

: Melbourne, (8 branches)

: Sales $26m

Employees 105

EBIT is currently a loss of around 5% Additional loss in period for stock provisions $1.5M Cap Empl $14m

• Key Markets

• Key Competitors / Market Position

• Key Economic Drivers

• : Kitchen renovation, office furnishings, hospitality furnishing

• : Many – fragmented market

• : General level of domestic activity, house building, tourist related activity

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The Continuing Businesses (Cont’d)

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GASKETS IS THE MARKET LEADER & PERFORMING WELL

• Geographic Markets : Australia and New Zealand

• Divisional Office

• : Melbourne, (2 branches)

• Dimensions

• : Sales $14m

Employees 60

EBIT strong (23%)

Cap Empl $11m

• Key Markets

• : Auto repairers, performance vehicles (after market not OEM)

• Key Competitors / Market Position

• : Market leader

Key competitor is ACL Gaskets (in administration)

• :

• Key Economic Level of vehicle repairs, sensitive to fuel price and Drivers price of new motor vehicles

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Stocktake of Coventr s Ke Stren ths y y g

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SKILLS WE WILL LOOK TO LEVERAGE

• Good understanding of Australian and New Zealand industrial “landscape”

• Good manager of complex transaction driven businesses ie. large numbers of:

• employees

• customers

• suppliers

• SKU’s

• locations/distribution points/activities

• Good manager/developer of brands

• Strong logistics and IT capability – now being actively marketed under Managed System Services Pty Ltd

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Pursuin the Strate g gy

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WE WILL CONTINUE TO FOLLOW A DISCIPLINED PATH OF SHAREHOLDER VALUE CREATION

Coventry Group has $50M in cash and thus the resources to:

• undertake capital management initiatives – the Group at 31 December 2011 has $15.5M in franking credits ie. enough to fully frank $36M of dividends (including $4.3M to be paid in March 2012)

• invest in selected areas of current business portfolio to expedite growth

• invest in areas that have strong synergy with the current business portfolio

• invest in new business areas where these call for strengths that the Group possesses

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Pursuin the Strate g gy (Continued)

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• The Group has been actively seeking value enhancing investment opportunities for some time but with increased emphasis in the last 6 months.

• In general terms vendor price expectations are now more moderate.

However

• Board remains disciplined in its scrutiny of investment opportunities

• None other than the Fluidrive acquisition have met exacting scrutiny

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