STEALTH GROUP HOLDINGS LTD — Annual Report 2021

Aug 30, 2021

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FY21 FULL YEAR Results

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Tuesday 31 August 2021

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ASX Code: SGI
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YE 30 June 2021 | www.stealthgi.com
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An Australian multinational distributor of Industrial maintenance, repair, operating ‘MRO’, Safety and Workplace supplies, and other related products and solutions.

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YE 30 June 2021 | www.stealthgi.com
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Presentation Outline

Company Overview

Financial Highlights Review of Operations Highlights Future Direction Appendices

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Company Overview Fact Book

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Stealth Group At A Glance

Stealth is a broad-line distributor of industrial, maintenance, repair, operating ‘MRO’, safety & workplace supplies and other related products and services

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Sales Team In-Store On-Site Online Delivery Click & Collect The company’s strategy is to serve customers of all sizes focusing on customer needs, combined with an expansive In-stock product offering, value-add solutions models and multichannel proposition.

SUPPLIES AND SOLUTIONS FOR EVERY INDUSTRY

Stealth operates a portfolio of five distribution businesses that extends across the end-to-end supply chain covering Business, Trade, Service, Specialist Wholesale and Retail.

Corporate Presentation (click the link below) https://stealthgi.com/who-we-are/

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Stealth By Numbers Headquartered in Perth, Western Australia, Stealth Serves Customers in Australia, United Kingdom, Africa and Asia

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FY2021 Results

Portfolio

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Australia92% International5% Online ~ 1,000,000 ~ 200 32x company stores 6x Online
3% products Team Members ‘branch & onsite’ Webshops
Annual sales Underlying
EBITDA (1)
~$69.7m
$4.5m
up from $24m FY18
~ 2,500 ~ 5,500 23x partner stores 86x stockist store
suppliers business customers in Australia locations in the UK
Stealth is expected to deliver stronger results in 2022 across all
businesses, categories, markets.
After Skipper Transport Parts is fully integrated with Heatleys
(approximately 60 days from 15 August 21), Stealth anticipates its
annualised revenue to be between $95m to $102m and annualised
underlying EBITDA to be between $5.7m to $6.3m Supported by Distribution Centres
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After Skipper Transport Parts is fully integrated with Heatleys (approximately 60 days from 15 August 21), Stealth anticipates its annualised revenue to be between $95m to $102m and annualised underlying EBITDA to be between $5.7m to $6.3m

(1) Underlying Earnings before interest, tax, depreciation, amortisation, impairment and excluding growth investment significant item costs related to acquisitions and eCommerce technology platforms. YE 30 June 2021 | www.stealthgi.com

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Portfolio Of Distribution Businesses

Each business differentiates itself through different methods of customer engagement, order processing, and order fulfilment though uses operating leverage from the combined group to drive competitive advantage.

OPERATING BRANDS

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(1)
www.heatleys.com.au www.cltoolcentre.com.au www.skippertp.com.au www.isgaus.com.au www.bsabrands.co.uk
Broad-line distributor of industrial, Broad-line distributor of industrial, Broad-line distributor of Industrial, Independent member-based buying Joint venture with Bisley Workwear.
tooling, safety/ PPE, hardware, tooling, safety/ PPE, hardware, maintenance, repairs, operating & distribution group with individual
building, construction and building, construction and ‘MRO’ with innovative consignment stores across Australia. A specialist wholesale distributor of
workplace supplies. workplace supplies. On-Site supply solutions and Workwear and Safetywear brands in
management. the United Kingdom.
From October 2018 From December 2020 From 15 August 2021 From May 2019 From March 2019
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(1) Rebranded to Skipper Transport Parts in 2016. Formerly four COV’s and Coventry’s Automotive branches with a long operating history.

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Business Model – How We Supply Our Customers Supported by the Widest Range, Best Prices, In-Stock & Available, Value-Add Supply Solutions, Unmatched Customer Service

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Customers & Markets

Serving more than 5,500 business customers and 34,000 retail customers of all sizes from a broad collection of industries including commercial, mining, resources, industrial, government, transport, automotive, agriculture, building, construction, manufacturing, engineering, trade and retail consumers.

The Supply Chain

HOW CUSTOMERS PLACE ORDERS FOR PRODUCTS

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Sales Team Online
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In-Store On-Site Distribution Centres
ORDER FULFILLMENT CHANNELS
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Distribution Centres Delivery Click & Collect
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Broad Product Selection

Go-to-Market Strategy: Broadline product offering through an ‘offline and online’ multichannel offer for customers to buy our products

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Offering more than 1 million Products across our portfolio – popular categories include;

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And more…

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Solutions: Access Stock, Anytime, Anywhere

Go-to-Market Strategy:- tailored solutions for customers with more complex or specific needs

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Online

In-Store

Extensive range of industrial, MRO, safety & workplace products.

We are conveniently located to help customers get what they need, when they need it.

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Vending

Stock Hub

Vending Solutions are a secure way to store and issue products on-site or in remote locations.

Ideal for when immediate access to products is needed operating in remote or on-site locations.

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On-Site

Customised product and services model with manned and unmanned onsite branch stores for customers with more complex needs.

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Sales Team

A dedicated team of experts that help customers find the right products and provide solutions to complex needs.

eBusiness Technology

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Online

EDI

With all products available on our websites, we are a onestop-shop for all industrial, MRO, safety and workplace needs.

EDI facilitates a two-way electronic, paperless exchange of information between us and our customer.

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PunchOut

PunchOut electronic catalogues provide quick and simple integration to customers existing ERP system.

Customisation & Personalisation

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Embroidery

Laser Etching / Engraving

Our online embroidery Help identify tools and other module is easy-to-use, capital equipment with our customisable and designed laser etching service. to save you time and money.

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Custom Tapes

We can customise products, promotional materials, tapes and packaging.

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Corporate Overview

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Corporate Summary	30 June 2021	30 June 2020	% change	SGI Board Well balanced experienced team, established to support		SGI Ownership
				today's business and its future direction
Market Cap$m	10.5m	6.5m	+61.5%
Share Price(cents) Net Debt$m1	10.5 4.2m	6.9 1.4m	(207%) +52.2%	Chris Wharton AM Chairman & Non-Executive Director		23%Directors and Management
Cash & Undrawn WC Facilities$m2 Net Assets$m	6.1m 13.8m	6.3m 12.7m	(3.4%) +8.5%	Mike Arnold Group Managing Director & CEO John Groppoli		32%Institutional Investors 11%High Net
Underlying EBITDA$m	4.5m	3.2m	+41.2%	Non-Executive Director		Worth's
Shares on issue(m)	99.7m	94.9m	+5.1%
Trading multiple	4.0x	2.8x	+40.1%	Alan Cransberg Non-Executive Director		34%Retail
EV/Underlying EBITDA3
Sales$m	69.7m	68.1m	+2.5%	Jessamyn Lyons
EPS(cents)	0.6	0.1	+470%	Company Secretary

1 includes $2.5m (FY20: Nil) related to C&L acquisition. Net debt equals total debt less cash on hand. 2 excludes $2.0m additional funding secured with CBA in July 2021 relating to Skipper Transport Parts acquisition. 3 EV (Enterprise Value) is Market Cap + Total Debt. Total debt equals net debt plus cash on hand.

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Strategic Direction Stealth continues to generate value for shareholders through key growth strategies

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CONTINUING TO DEVELOP A LARGE-SCALE DISTRIBUTION GROUP

HOLDING AN ADVANTAGED MARKET POSITION ‘SUPPLIER OF CHOICE’

DRAWING ON SCALE AND OPERATING LEVERAGE FROM BUSINESS COMBINATIONS

Supplies and Solutions for every industry through a multichannel offer.

A broad-line distributor for:

• Industrial MRO supplies;

• • Safety/PPE Products; - Workplace Supplies - Other related products and services.

• "increasing revenue & improving efficiencies"

Differentiated sales and services offer Combining our broad selection product offering & value add solutions models supported by:

Improve financial performance using the strengths and advantages in each business in the group.

Creating more value and better experiences for customers to drive repeat business.

• Physical store network (Branch & On-site)

• • Supply chain infrastructure - In-stock product offering

• Widest Range

• • In-stock product offering - Best prices - Deep customer and supplier relationships, and - Stock available - eCommerce online digital channels. - Value-add supply solutions - Unmatched customer service’

We operate in a large, fragmented and highly-attractive market with recuring demand and favourable competitive characteristics

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Financial Highlights FY21 Full Year

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FY21 Financial Highlights - Record Year Financial Performance

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FY 2021 REVENUE FY 2021 PROFIT 2H 2021 VS PRIOR PERIODS CAPITAL MANAGEMENT > Group Sales FY21 $69.7m > Gross Profit 29.0% > Sales $39.3m > $6.1m Available Cash & Undrawn up 2.5% pcp FY20 $68.1m up 9% pcp FY20 26.6% up $9m or 28% on 1H/21 Working Capital Facilities > > Underlying EBITDA $4.5m > Underlying EBITDA $2.4m > $10.7m Inventory Australia Sales $66.5m (incl Online) up 41% pcp FY20 $3.2m up $0.3m on 1H/21 up 17% pcp FY20 - $56.6 million > $1.5m Investment & CapEx > Statutory EBITDA of $3.1m > Online Sales $2.3m 2H21 pcp 2H20 > $2.0m Operating Cash Inflow up 121% pcp FY20 $1.4m 8 times higher than FY20 -$0.3 million > Sales up 38% or $10.9m pcp > Net Profit after Tax excluding > $13.8m Net Assets > International Sales $3.2m > Underlying EBITDA up 67% or significant items of $1.6m FY20 $11.5m an expected decline up 40% pcp FY20 $1.2m $1.0m pcp > 30% Net Debt Gearing withdrawal from Africa contract to focus on higher margin customers #1 #2 #3 #4

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Strong 2H21 Half Performance in Sales and Profit

Strong second half operational performance and the strategic repositioning of the company towards higher margin sales

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Record SALES Full Year 2021
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REVENUE JOURNEY $m

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60.0
50.0
(1)
38.5 39.7 39.3
40.0 (1)
No sales contribution from
30.4
28.4
30.0 Skipper Transport Parts in FY21
20.0
10.0
0.0
2H-19 1H-20 2H-20 1H-21 2H-21
UNDERLYING EBITDA [3] JOURNEY $m Record EBITDA [3] Full Year 2021
4.0
3.5
3.0
2.40
2.5 2.10
2.01.5 1.75 1.48 0.95 0.9 EBITDA [(3)] Target FY25
1.02 > 8% of Sales
1.0 0.54 0.80
1.5
0.5 1.15
0.54 0.73 0.68
0.0 (2) (2)
2H-19 1H-20 2H-20 1H-21 2H-21
Statutory EBITDA [3] Acquisitions & Investments costs
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ANNUALISED SALES ~ $95 million Annualised revenue rate after Skipper Transport Parts is fully integrated, expected to take around 60days.

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Pre-synergies
~$95m
+36%
$69.7m
FY2021 Annualised revenue rate
after Skipper Transport Parts
is fully integrated
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(1) 1H-21 compared to 1H-20 down $9.3m was expected after shift in Africa customer strategy in Dec2019 with the company's largest customer to refocus on more profitable customers. (2) [2H-20 Job keeper contribution of $1.5m] [1H-21 includes Job keeper contribution of $1.5m] [2H-21 includes Job keeper contribution of $0.1m]

(3)

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), Underlying EBITDA and Statutory EBITDA are non-IFRS terms which have not been subject to audit or review. Underlying EBITDA is determined by adding back Growth Investment significant item costs to the Statutory EBITDA which in turn has been determined using information presented in the Group’s financial report.

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Financial Profit & Loss - Full Year 2021

Record result on the back of a very strong second half operational performance

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TRADING PERFORMANCE	FY 2021	FY 2020	Movement	Movement
			$	%
Group Revenue	$69.7m	$68.1m	$1.6m	2.5%
• Australia sales (including Online)	$66.5m	$56.6m	$9.9m	17.5%
• BSA Brands	$2.0m	$1.1m	$0.9m	81.8%
• Africa Sales	$1.2m	$10.4m	($9.2m)	(88.5%)
Underlying EBITDA1	$4.5m	$3.2m	$1.3m	41.2%
Underlying EBITDA1%	6.4%	4.7%	na	1.7%
Growth Investment Significant Items	$1.4m	$1.8m	($0.4m)
Statutory EBITDA1	$3.1m	$1.4m	$1.7m	120.7%
Net Profit After Taxexcluding growth investment significant item costs	$1.6m	$1.2m	$0.4m	40%
Net Profit After Tax Attributable to members	$0.56m	$0.10m	$0.46m	482.4%

HIGHLIGHTS

PROFIT & LOSS - A record financial year result for Stealth.

• › Only 7 Months (Dec-June) contribution from C&L Tool Centre In FY21.

• › Sales of $69.7 million, up 2.5% or $1.6 million on FY20. 2H21 sales up 29% on 1H21.

• › $10.1 million decrease in Africa sales on strategic exit offset by increase in Australia, UK sales and new Africa customers.

• › Underlying EBITDA[1] of $4.5 million up 41% on FY20, and up 14% on 1H21.

• › Net Profit After Tax increased 40% to $1.6 million excluding growth investment significant item costs.

• › Net Profit After Tax to Members of $0.56 million (including $1.37 million of investment related costs) versus $0.10 million in FY20.

• › C&L Tool Centre (C&L) acquisition adds annual sales of $14 million and EBITDA of $1.3 million+

• › BSA Brands (UK) (50/50 joint venture with Bisley Workwear) delivered revenue of $2.0 million up 82% or $0.9 million compared to FY20.

1 EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), Underlying EBITDA and Statutory EBITDA are non-IFRS terms which have not been subject to audit or review. Underlying EBITDA is determined by adding back Growth-Related Investment costs to the Statutory EBITDA which in turn has been determined using information presented in the Group’s financial report.

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Sales Channel Mix – How We Serve Our Customers

Business Customers represent a broad collection of industries that place orders through our sales representatives, in-store at our branches, online, on-site, and over the phone and by email with our internal sales team. Retail Customers order online or in-store at our branches.

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Digital Channels Physical Channels
Website EDI/PunchOut Vending Sales Team In-store & On-Site
4% of orders 6% of orders 3% of orders 77% of orders 10% of orders
Curated product info Integrated software in Vending and inventory Strong technical knowledge across a
and search customer’s purchasing process management wide range of product lines
Direct-to-Customers Physical Pickup
Branch Network & On-Site Stores
Distribution Centres Vending
63% of orders 3% of orders 34% of orders
Order Channels
Fulfillment
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Balance Sheet and Cash Flow - Full Year 2021	Balance Sheet and Cash Flow - Full Year 2021	Balance Sheet and Cash Flow - Full Year 2021	Balance Sheet and Cash Flow - Full Year 2021	Balance Sheet and Cash Flow - Full Year 2021
	STATUTORY	STATUTORY	STATUTORY
BALANCE SHEET SUMMARY	30 JUNE 2021 $M	30 JUNE 2020 $M	30 JUNE 2019 $M	HIGHLIGHTS
Cash and cash equivalents	3.1	1.1	2.0
Other current assets	23.2	16.5	22.7	BALANCE SHEET
Property, plant and equipment	1.2	0.7	0.6	› Cash position of $3.1m (FY20 $1.1m).
Other non-current assets (inc AASB16 Leases of $5.1m)	16.3	12.1	8.0	› Net Debt of $4.2m inclusive of $2.5m C&L acquisition debt (FY20 Net Debt $1.4m).
Total assets	43.8	30.4	33.3	› C&L acquisition added Intangible Assets of $1.5m; increases to all major balances
Financial liabilities (debt)	7.4	2.5	1.6	(Receivables, Inventory, Right-of-Use, Payables and Lease Liabilities); and $0.5m
Other liabilities (includes AASB16 Leases of $5.1m)	22.5	15.2	18.8	to Issued Capital.
Total liabilities	29.9	17.7	20.4	› Other non-current asset movement: eCommerce, Goodwill on acquisitions, AASB16
Total equity	13.8	12.7	12.9	› BSA Brands required no additional investment to working capital during the year.
	STATUTORY	STATUTORY	STATUTORY	CASH FLOW
CASHFLOW SUMMARY	30 JUNE 2021	30 JUNE 2020	30 JUNE 2019
	**$M **	**$M **	**$M **	› Operating cash inflow of $2.0m (pcp $0.3m inflow) due to improved margins,
Net Cash inflow/(outflow) from operating activities	2.0	0.3	(0.3)	working capital management, JobKeeper receipts and reductions to operating
				cost structure.
Net Cash inflow/(outflow) from investing activities	(3.5)	(0.8)	(8.1)
Proceeds from issuance of shares and borrowings	6.9	0.8	13.0	› Acquisition of C&L structure included cash ($2.5m) and equity ($0.5m), gross of operational cash on hand ($0.7m).
Repayment of financial liabilities	(3.4)	(1.2)	(2.9)	› Cash and debt balances higher at 30 June 2021, reflect acquisition of C&L and
Net cash provided by/(used in) financing activities	3.5	(0.4)	10.1	change in finance arrangements with CBA in January 2021, which expanded
Net increase/(decrease) in cash and cash equivalents	2.0	(0.9)	1.7	Group finance facilities to $10.5m (previously $7.4m).
Cash and cash equivalents at beginning of the period	1.1	2.0	0.3	› Available Cash and Undrawn Working Capital Facilities at 30 June 2021 of $6.1m (FY20: $6.3m).
Cash and cash equivalents at end of the period	3.1	1.1	2.0

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Review of Operations FY21 Full Year Progress on Strategic Agenda

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FY21 Highlights Strategic & Operational

Continued to make significant progress against our strategic priorities, driving share growth in key markets.

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	STRATEGIC DELIVERABLES	VALUE CREATION	FY21 KEY RESULTS - ACHIEVEMENTS
#1	Emergent Industry Leader position in WA and Queensland	› Larger-scale distributor holding an advantaged market position.	› Diverse operating businesses with multichannel offer to serve customers of all sizes. › Extensive product & supply solutions models covering industrial MRO, safety & workplace products & services. › Targeted focus on Safety campaigns across all sites. Achieved safety LTI of Zero.
#2	Growth through Investments in Acquisitions	› Stronger financial profile › Multichannel offer › New market penetration › Delivering attractive earnings growth	› 2x value accretive acquisitions of C&L Tool Centre and Skipper Transport Parts. › Annual Revenue $32m & EBITDA $2.4m contribution
#3	Growth through Investment in eCommerce	› Significantly expand our eCommerce data & digital capabilities.	› Investment of $0.95m › 4x new Online marketplaces ‘webshops’ launched 2H21. › 2x new Online marketplaces ‘webshops’ acquired.

(1) Annual Sales includes Skipper Transport Parts Full Year contribution and C&L Tool Centre Full Year Contribution

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FY21 Highlights Strategic & Operational

Continued to make significant progress against our strategic priorities, driving share growth in key markets.

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	STRATEGIC DELIVERABLES	VALUE CREATION	FY21 KEY RESULTS - ACHIEVEMENTS
#4	We have built an even stronger offer, and a larger, more relevant and diversified business	› Operating leverage and supply chain infrastructure	› +2,500 new customers › +1,400 new suppliers › 600,000 new product lines › 6x new Online marketplaces (B2B/B2C webshops) › 6x new branch stores › 17x new onsite stores › New locations: Perth, Albany, Esperance, Karratha, Port Hedland, Brisbane, Mackay, Emerald
#5	Positioned for future Growth in Customer Markets From product diversification	› Increased profitability, more market share, deeper customer engagement	› 5,500 Customers will benefit from a significantly broader product offering. › Fast growth customer markets Automotive, Truck & Trailer, Mining, Bus, Agriculture, Industrial. › Annual Revenue +$95m after integration of Skipper Transport Parts › Talent Recruitment & Retention strategies directed at creating and maintaining an employer of choice position.

(1) Annual Sales includes Skipper Transport Parts Full Year contribution and C&L Tool Centre Full Year Contribution

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#1. Emergent Market Leadership Position

Stealth’s overarching differentiated Sales and Services model combining its broadline MRO product offering and customer solutions model is unlike any other single, like-for-like competitor.

Advantaged leading position in a growing and attractive market

• (1)

• þ #1 Western Australia (1) as a broad line Industrial MRO distributor

  • (1) (1)

• þ #2 in size in Western Australia (1) of closest competitor

• þ Unique and emerging market share position in Queensland (1) as a larger scale Industrial MRO distributor in offline and online channels.

• þ Large, fragmented, attractive MRO

• industry that our businesses extend across the end-to-end supply chain covering Business, Trade, Retail, Service & Specialist Wholesale

Extensive multichannel capability Distributor of choice for Industrial MRO supplies

• þ Differentiated Sales and Services model

• working across large, medium, small customer types

• þ Strong customer retention

• ~ 95% of revenue driven from repeat customers

• þ Multichannel offer – Group Portfolio

• 5x diverse leading operating businesses

• 1million products available

• eCommerce Online Channels

• Store locations ideally placed to serve customers

• 96x person sales force / 200x person team

• Click & Collect options

• • Fast-track to standard delivery options

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(1) Based on company management estimates after completing the acquisition of Skipper Transport Parts ‘STP’, depth of products and categories available from a single source supplier, number of geographic branch stores and on-site store locations in metropolitan and regional areas in Western Australia, various company surveys and analysis of customer and/or non-customer feedback.

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#2. Strong Track Record of Value Adding Acquisitions and JV’s We have continued to invest in building a large-scale distribution group.

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Company SGI lists on the Acquired WA SGI and Bisley Acquired Acquired Acquired Acquired market
Founded market leading Workwear Industrial Supply Product brand Queensland leading Skipper
Heatleys Safety establish new Group, an Protect-A- market leading Transport Parts
& Industrial 50/50 JV in the independent Load’ adding C&L Tool adding $18m
adding $40m UK to serve UK merchant $0.25m sales Centre adding annual sales
Since October 2018 annual sales and Africa member group $14m annual
markets with adding $2m sales
completed 5 acquisitions in with $24m
Safetywear & annual sales
annual sales
Australia and established a Workwear
brand specialist wholesale
joint venture with Bisley
Workwear in the United
Kingdom.
Mar 2014 Oct 2018 Oct 2018 Mar 2019 May 2019 Oct 2019 Dec 2020 Aug 2021
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SGI has a disciplined framework to acquire, manage and integrate businesses.

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#3. Accelerated Our Online & Digital Capabilities

We invested heavily in our data & digital capabilities that included websites, webshops, online portals, automation and AI solutions powering scale.

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WE MATERIALLY ADVANCED OUR ECOMMERCE ONLINE CHANNELS

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www.heatleys.com.au
www.isgaus.com.au
Launched New Launched New
Webshop Channel Webshop Channel
May 2021 June 2021
www.bsabrands.co.uk
Launched New Launched New
Webshop Channel Product Information
Feb 2021 Management ‘PIM’
June 2021
Acquired Webshop
www.cltoolcentre.com.au Acquired Webshop Aug 2021 www.skippertp.com.au
Channel Dec 2020
New Corporate Website Due for
Jan 2021 Launch 1H-22
www.stealthgi.com
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#4. Expanded Our Operating Platform

Expanded Into A Larger-Scale Leading Distributor

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SCALE	June 21	June 20	%chg(1)	June 19	June 18	Comments	Comments
Annual Sales ($m)	69.7m	68.1m	+2.5%	63m	24m
- Australia ($m) incl Online	67m	57m	+17.5%	44m	3m	•	Australia numbers include Online Sales
- International ($m)	3m	11m	-72.2%	19m	21m	•	Decline based on a change in Africa strategy withdrawing from large contract to focus on higher margin customers
- Online Sales ($m)	2.3m	0.3m	+667%	0.2m	0m	•	Online sales upward trend in FY21. Ongoing, sales expected to double in FY22 justifying investment made .
Gross Margin %	29.0%	26.6%	+9_._0%	24.%	18.5%	•	Gross margin improvement from product mix, buying leverage, greater customer mix and sales in online and offline channels
Online Webshops	6	1	600%	1	1	•	4x new webshops launched. 2x new webshops acquired C&L Tool Centre & Skipper Transport Parts. Closed AWS site.
People	202	153	32%	162	48	•	64xnew peoplereflecting C&L Tool Centre & Skipper Transport Parts. Restructure of Africa operations reduced headcount.
Products On Offer	1,000,000	300,000	333%	300,000	60,000	•	Reflecting C&L Tool Centre & Skipper Transport Parts.
Company Branch	32	10	220%	10	3	2021 Store Expansion Summary
Stores & Onsite Stores						•	Brisbane Store: C&L Tool Centre
- Perth Company	3	3	0%	3	1
- Regional Company WA	6	2	300%	2	0	•	Regional WA Stores: Skipper Transport Parts (STP Perth store integrated into Heatleys)
- Onsite Store WA	18	2	NA	1	0	•	Onsite WA and Queensland – Skipper Transport Parts and Heatleys Safety & Industrial
- Brisbane Company	1	1	0%	1	1	•	Closed Melbourne office of ISG. Staff working from home “WFH’
- Onsite Store Queensland	3	0	+300%	0	0	•	Closed AWS office in Queensland July 2020
- Adelaide Company	1	1	0%	1	0
- Melbourne Company	WFH	1	0%	1	0
- UK Company	WFH	WFH	-100%	1	1
Australian Partner Independent Stores	23	23	0%	25	0	•	Reflecting Independent merchant members of Industrial Supply Group (ISG). Stealth acquired ISG in May 2019
UK Stockists	86	80	7.5%	24	0	•	6 new Stockist stores in the UK were opened during the year. UK continued to be impacted on by COVID19

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#4. Continued Network Investment

Markets, Branch Stores, On-site stores strategically placed in locations to better serve our customers.

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25

Green location in Queensland from December 20

Red locations in WA and Queensland from August 21

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#4. + 600,000 New Products New Supply Solutions Model

as a result of the C&L and STP acquisitions and expansion within the Heatleys businesses

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Access Stock Solutions FY21 NEW OR EXPANDED SERVICES
~1 million products now available – popular categories include;
Online In-Store On-Site
Vending Stock Hub Sales Team
eBusiness Technology
Online EDI PunchOut
NEW CATEGORY AND RANGE ADDED
Customisation & Personalisation
And more…
Embroidery Laser Etching / Engraving Custom Tapes
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More than 250,000 product lines are held in-stock in our distribution centres, branch stores and on-site stores

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#5. Future Growth In Customer Markets From Product Diversification

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	Customer and Markets diversification across our businesses	Expansion of product range, brands and value-add solutions on offer	Expansion of product range, brands and value-add solutions on offer	Expansion of product range, brands and value-add solutions on offer	Expansion of product range, brands and value-add solutions on offer	Expansion of product range, brands and value-add solutions on offer	Expansion of product range, brands and value-add solutions on offer	> $20 million of annual revenue synergies identified from Cross Sell advantage
	Limited overlap of customers and geography it serves	Industrial and Hardware Existing P Existing P Existing P P Industrial MRO P P P Existing P Category						~ 1 million products now available to all customers
			Industrial and Hardware	Existing P	Existing P	Existing P	P
			Industrial MRO	P	P	P	Existing P
YE 30 June	2021	www.stealthgi.com Existing customers Existing customers Current overlap ~3% of revenue of all customers Acquisition Aug21 Acquisition Dec20		Workwear & Safetywear	P	P	P	Existing P
			Personal Protective Equipment	Existing P	Existing P	Existing P	Existing P
			Automotive	P	P	P	Existing P
			Mining	P	P	P	Existing P
			Truck & Trailer	P	P	P	Existing P
			Agriculture	P	P	P	Existing P
			Materials Handling	Existing P	Existing P	Existing P	P
			Building & Construction	Existing P	Existing P	P	P
			Tooling	Existing P	Existing P	Existing P	Existing P
			Packaging, Cleaning, Workplace	Existing P	Existing P	P	P
			Onsite Store Solutions	Existing P	P	P	Existing P

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Future Direction Strategy and Outlook

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Strategic Agenda: Priorities for the coming period

Draw on the strengths and advantages of each business to leverage collective scale.

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Growth Objectives
3
Improve profitability using
operating leverage from
business combinations
2
Continue top-line growth through
deeper customer engagement and
identified synergies
1
Capitalising on our unique opportunity set to
maximise benefits from recent acquisitions.
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Focus for the coming period

• More customer value and better customer experiences

• Expand in all customer segments using advantaged business model

• Expand product range across all businesses , cross-sell and grow all customers

• Grow e-commerce sales

• Merchandise innovation, In-Store and On-site store concepts & adapt store footprint

• Deepen supplier commercial arrangements. Source and buy better, reduce costs

• Enhance operational efficiency across the supply chain

• Develop our people through learning, training and development programs

• Continue to maintain strong capital management disciplines

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How We Are Expanding Offering More To Customers

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HOW WE GENERATE INCOME & PROFIT TODAY

CONTINUED INVESTMENT

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EXTERNAL SALES CATALOGUE INBOUND LOGISTICS COMPANY VENDING MACHINES DELIVERY - Differentiated Sales, Services & Solutions
FORCE BRANCH STORES
- Widest-Range, Best Prices, Stock Available,
Value-Add Supply Solutions, Best Service
- In-Store, On-Site, Online, Delivery, Click & Collect
INTERNAL SALES FORCE EDI BUSINESS INDEPENDENT ONSITE SERVICES - Online Channels With Business Customers
TRADE STORES
EDI, Integration, eProcurement, Data Insights, Portal-Hub,
Inventory Management
EXPANDING OUR BUSINESS
- Online Marketplaces to retail customers
COMPANY Webshop Channels
BRANCH STORES DISTRIBUTORS FULFILLMENT, ONLINE WEBSHOPS
LOGISTICS, DC’s
e-BUSINESS DATA & DIGITAL
PORTAL HUB AUTOMATION
VENDING SOLUTIONS CONTENT &
SUBSCRIPRION The acquisitions of
C&L Tool Centre and
MANAGED INDEPENDENT Skipper Transport Parts
ONSITE SOLUTIONS CONTRACT SUPPLY
INVENTORY STORES ticks many expansion boxes
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• In-Store, On-Site, Online, Delivery, Click & Collect

• Online Channels With Business Customers EDI, Integration, eProcurement, Data Insights, Portal-Hub, Inventory Management

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Outlook - Stealth now anticipates to be ahead of its previous expectations We are raising our outlook to provide the following guidance.

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Positive Financial Impact From 2021 Strategic Events

Operating Leverage and Synergies

Large, Fragmented and HighlyAttractive Market

Robust Financial Profile And Outlook Guidance

• þ Expected stronger results in 2022

• þ Full Year benefit from STP and C&L acquisitions yet to be realised

• þ Online sales expected to materially grow

• þ Growth of +5,500 Business & Trade Customers and +34,000 Retail customers

#1

• þ +$20m revenue synergies yet to materialise through cross-selling of expanded product offer.

• þ Buying Power from business combination

• þ Multiple levers for growth driven by organic opportunities in a larger scale business

#2

• þ Favourable economic, industry and market trends offer us opportunities.

• þ Activity in resources a big positive particularly with our branch store presence in WA & Qld.

• þ Other big positives with investment in roads, infrastructure, housing, building, construction, transportation, secondhand vehicle sales (repairs & 4wd fit-out), government stimulus. #3

• þ ~$6m cash and undrawn working capital facilities

• þ ~$95 million annualised revenue rate an underlying EBITDA ~$6 million after Skipper Transport Parts fully integrated.

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4
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Supportive ~95% repeat customer and market trends.

Diverse revenue streams, cross-sell extended range to repeat customers

Leading indicators are positive for Stealth across all businesses, categories, markets.

Company Target remains focused on > 8% EBITDA FY2025

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Compelling Investor Value

We have a clear growth strategy that has been consistent since listing in 2018.

• Advantaged industry position in large, fragmented and highly-attractive market

• • Competitively advantaged business model with diversified customer & industry exposure
• • Rising revenue & earnings profile combined with high demand for our products & services
• • Multiple levers for organic growth driving value creation

• Strong financial position supporting organic growth plans.

• Commitment to building a thriving business for the future with core value principles driven by strong employee culture

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Appendices

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History of Consistent Strategic Growth Since IPO

SGI is considerably undervalued - Strong foundation established for future growth.

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HY reported results 31 Dec 20
$30m Revenue
$2.1m underlying reported EBITDA [[2]]
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Established Joint Venture March 19
$30m Revenue
with Bisley Workwear in the United Kingdom
$2.1m underlying reported EBITDA [[2]]
BSA Brands (UK)
IPO Oct18 Focus on UK and Africa markets
Acquisition Oct18 Acquisition May 19 Acquisition Dec 20 Notice to acquire 4 June 21 Completed acquisition
Heatleys Safety & Industrial Industrial Supply Group ‘ISG’ C&L Tool Centre Skipper Transport Parts 15 August 21
$40m - annual sales $2.0m - annual sales $14m - annual sales $18m - annual sales Skipper Transport Parts
$1.9m - annual EBITDA [1] $0.2m - annual EBITDA [1] $1.3m - annual EBITDA [1] $1.1m - annual EBITDA [1]
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(1) EBITDA pre AASB 16 accounting, excluding depreciation and amortisation, transaction costs, share of JV interest & tax.

• (2) EBITDA post AASB 16 accounting (4D, 28 Feb 21), excluding depreciation and amortisation, transaction costs, share of JV interest & tax.

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Experienced Leadership Team Delivering Growth Strategy

We have a clear growth strategy, stable management team and proven track record.

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Mike ARNOLD Luke CRUSKALL John BOLAND Brendan ROSSITER Jessica RICH Phil PODGORSKI Michelle SCHOEMAN
Group ManagingDirector & Group Chief Operating Group Chief Financial Group Financial Chief Marketing Chief Information Group Manager
CEO Officer Officer Controller Officer Officer Executive Office
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Darren BEAZLEY General Manager Heatleys Safety & Industrial

Karin DOUGLAS

General Manager - Sales Heatleys Safety & Industrial

Vince ZENONI GeneralManager C&L Tool Centre

Des ELLIS

General Manager Skipper Transport Parts

Adam SHERWOOD

General Manager BSA Brands (UK)

Brad COLEMAN GeneralManager Industrial Supply Group

Peter REED Group Manager People & Safety

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Our Culture Underpins Our Success

Each business within the SGI Group has its own distinct culture aligned to the Group’s vision, which has greatly contributed to its success.

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SGI is committed to building and growing a thriving business for the future.

SGI's success is underpinned by its core values and key drivers. These have fostered sustainable

performance and growth for the benefit of our employees and shareholders.

Our core values and key drivers

1. Excellence in customer engagement and service delivery

2. Desire for Innovation and value creation

3. Integrity in our business dealings

4. Commitment to efficiency and effectiveness in operations

5. Empowerment, engagement and growth of our people

We welcome all SGI employees, shareholders, customers and suppliers to share, contribute and participate in our growth.

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– Sales Mix Product Category, Industry Segment, Geography

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Product Sales Mix Industry Segment Sales Mix Geography Sales – Customer Located
FY2021 FY2021 FY2021
UK
Africa 0%
4%
Transport Other
8% 1%
Workplace Govt &
16%
Commercial
Australia
9% Resources
96%
40%
FY2020
Safety
Africa
18% Other
Infrastructure & 1% 15%
Industrial UK
Construction
66% 1%
19%
Trade & Retail
23%
Australia
83%
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Profit & Loss Results Reconciliation - Full Year 2021

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Reconciliation – Full-year financial results	30 June 21 $’000	30 June 20 $’000	30 June 19 $’000
Underlying EBITDA1,	4,498	3,185	1,920
Growth Related Investments:
Investment in the establishment of BSA Brands – brand awareness, promotion, point of sale, travel, marketing, sales team2	-	-	(560)
Transaction costs – due diligence, acquisition analysis, bank refinance and other related professional fees3	(714)	(457)	(458)
Appointment of Senior Personnel (GCFO, CIO, Technology), redundancies and final tenure payments to Heatleys key management relating to acquisition completed in September 20184	(656)	(826)	-
Statutory EBITDA1	3,128	1,417	902
Depreciation	(1,669)	(1,418)	(166)
Net Finance Costs	(454)	(442)	(149)
Statutory Net profit before Tax	1,005	(443)	588
Add back: Minority Interest 50% of the BSA Brands (UK) Limited loss	-	(600)	(191)
Statutory Net profit before Tax attributable to Members	1,005	157	779

• 1 EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), Underlying EBITDA and Statutory EBITDA are non-IFRS terms which have not been subject to audit or review; Underlying EBITDA is determined by adding back Growth-Related Investment costs to the Statutory EBITDA which in turn has been determined using information presented in the Group’s financial report.

• 2 Upfront investment in BSA Brands JV to take the Bisley Workwear brand from start-up in the UK market, build brand awareness, meet product compliance conditions and roll out the range into 74 distributor trade store outlets, including brand awareness, promotion, point of sale, travel, marketing and the sales team.

• 3 Transaction costs are significant and relate to restructure of finance facilities to CBA, opportunities evaluated in detail in the year, which ultimately did not proceed, as well as ongoing opportunities.

• 4 Includes investments in new strategic programs ahead of earnings return with focus on senior finance, technology, partnerships, joint ventures and acquisition review activity. These appointments pre-empt upfront corporate and strategic actions expected to increase scale with near-term upside. Also includes one-off costs relating to final tenure payments relating to Heatleys acquisition in September 2018 and one-off redundancy costs incurred in reporting period.

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Overview of Skipper Transport Parts

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• Rebranded to Skipper Transport Parts in 2016. Formerly four COV’s and Coventry’s Automotive branches with a long operating history.

―

• STP is a major parts and supplies distributor of leading Industrial MRO ‘Maintenance, Repairs, Operating’ brands with a complete range of more than 1 million products on offer to customers.

―

• 42 Employees, ~1,250 Customers, ~250,000 Products InStock, 1m products accessible, 300+ Suppliers.

―

• STP sells its products to a broad customer list including bigname industry brands.

―

• STP operates 5 principal branch store locations in Western Australia, and 14 on-site stores in WA and 3 Queensland positioned to serve customers with high-touch solutions and wide range assortment models. ―

Customer Markets	Overview	Sample of Market Leading Supplier Brands
Automotive Truck & Trailer Bus Mining Industrial Agriculture • Wide-Range distributor of Industrial products ‘MRO’ and automotive, fleet related products (OEM and aftermarket), Safety PPE and Tools. • All Makes, All Brands, All types of parts, supplies, and accessories. • Innovative solutions tailored Onsite store and stock management systems. • On-Site inventory and integrated smart tool barcode scanning, technology solutions and reporting. • Strong buying power with National Australia-wide coverage. ― ― ― ― ― ― ― ― ― ― ―

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Important Notices and Disclaimer

This document has been prepared by Stealth Global Holdings (the Company) and is provided for information purposes only. This document does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in the Company nor does it constitute financial product advice. This document is not a prospectus, product disclosure statement or other offer document under Australian law or under any other law. This document has not been filed, registered or approved by regulatory authorities in any Jurisdiction. By reading this document you agree to be bound by the limitations set out in this document.

This document and the information contained within it is strictly confidential and is intended for the exclusive benefit of the persons to whom it is given. It may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express written consent of the Company. By receiving this document, you agree to keep the information confidential, not to disclose any of the information contained in this document to any other person and not to copy, use, publish, record or reproduce the information in this document without the prior written consent of the Company, which may be withheld in its absolute discretion.

The information contained in this document is not intended to be relied upon as advice or a recommendation to investors and does not take into account the investment objectives, financial situation, taxation situation or needs of any particular investor. An investor must not act on the basis of any matter contained in this document but must make its own assessment of the Company and conduct its own investigations and analysis. Investors should assess their own individual financial circumstances and consider talking to a financial adviser, professional adviser or consultant before making any investment decision. Statements and information in this document are current only as at 31 August 2021 and the information in this document remains subject to change without notice. The information contained in this document is for information purposes only and is an overview and does not contain all information necessary to make an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). The information contained in this document is of a general nature and does not purport to be complete or verified by the Company, or any other person. The Company has no responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this document, which may affect any matter referred to in this document. While reasonable care has been taken in relation to the preparation of this document, none of the Company, or their respective directors, officers, employees, contractors, agents, or advisers nor any other person (Limited Party) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness

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or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited Party represents or warrants that this document is complete or that it contains all information about the Company that a prospective investor or purchaser may require in evaluating a possible investment in the Company or acquisition of shares in the Company. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this document including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this document including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom.

Certain statements in this document constitute forward looking statements and comments about future events, including the Company's expectations about the performance of its businesses. Such forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Forward looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Given these uncertainties, recipients are cautioned to not place undue reliance on any forward-looking statement. Subject to any continuing obligations under applicable law the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this document to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. Past performance is not indicative of future performance and no guarantee of future returns is implied or given. Nothing contained in this document, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Company. No Limited Party or any other person makes any representation or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will occur.

This document is only being provided to persons who are the holders of an Australian financial services license and their representatives, sophisticated investors (in accordance with section 708(8) of the Corporations Act and professional investors (in accordance with section 708(11) of the Corporations. Act) or to such other persons whom it would otherwise be lawful to distribute it.

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FOR FURTHER ENQUIRIES

Mike Arnold Group Managing Director & CEO P: +61 (0) 8 6465 7800

Chris Wharton AM John Boland Chairman Group Chief Financial Officer P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800

31 August 2021 ASX Code : SGI

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