Global Industrial Company · NYSE:GIC
Global Industrial — Q3 2024 Earnings Presentation
23 slides from Global Industrial's earnings presentation, November 2024
Slide 1: 3Q 2024 Global Industrial
3Q 2024 GLOBAL INDUSTRIAL
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
Slide 3: At a Glance: Leading Player in Industrial Distribution SMB Market
AT A G L A N C E Leading Player in Industrial Distribution SMB Market $1.33B 7 Sales Distribution centers TTM 3Q 2024 in U.S. and Canada Janitorial & Storage & Furniture & Safety & Carts & Trucks HVAC & Fans Facility Shelving Decor Security Maintenance Employees SMB Industrial Experts in 1,800+ (550
Slide 4: Agenda: Leading Player in Industrial Distribution
AGENDA Leading Player in Industrial Distribution 1 2 3 4 Business Powerful Strong Uniquely Foundation Customer Growth Financial Positioned Model Profile 4 |
Slide 5: The ACE Strategy Serves as the Foundation for our Growth Engine
The ACE Strategy (Accelerating the Customer Experience) Serves as the Foundation for our Growth Engine Accelerate customer growth by being an Indispensable Business Partner Revenue & Product & Operational Frictionless Cost Efficiency Customer Assortment Excellence Customer & Productivity Growth Solu
Slide 6: Building on a Broad Customer Base in Large Fragmented Market
Building on a Broad Customer Base in Large Fragmented Market Broad Customer Base Large SMB MRO Market… • Manufacturing ~$50B¹ • Retail / Wholesale Trade • Construction • Health Care • Professional, Scientific • Hospitality • Educational • Transportation & Warehousing • Public Administration >400,000
Slide 7: Robust Product Offering & Expertise Provides Multiple Growth Opportunities
Robust Product Offering & Expertise Provides Multiple Growth Opportunities: 10 Top Categories 1. Storage & 2. Material 3. Janitorial & Healthcare Shelving Handling Maintenance Recent product 5. Furniture 7. Workbench & line expansion 4. Safety & Security & Decor 6. HVAC Shop Desks & Fans Vehicles 10
Slide 8: Our Best Kept Secret: Premium Private Label Brand
OUR BEST KEPT SECRET Private Label Brand - Made To ExceedTM 15-20% ~16% “Extra Chip” ~50% Premium CAGR over 5 in the cookie of Organic Sales years is fastest margin vs. growing sourcing differentiation National Brands channel 8 |
Slide 9: Private Label "Extra Chip" Examples
OUR BEST KEPT SECRET “Extra Chip” ~50% Bolted Teardrop Air Scrubber & in the cookie ofPortable OrganicPower Sales Station Pallet Racking Negativedifferentiation Air Machine Digital Wood Electric Utility Vehicle Electric Stock Chaser Laminate Lockers 9 |
Slide 10: Business Foundation Has Generated a Strong Track Record of Growth and Margin Expansion
Business Foundation has Generated a Strong Track Record of Growth and Margin Expansion Revenue* Operating Margin* ($M) (%) 7.7% $1,274M +60 CAGR bps 7.6% $947M 7.0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 *2023 Reflects Impact of Indoff Acquisition 10 |
Slide 11: Agenda: Leading Player in Industrial Distribution
AGENDA Leading Player in Industrial Distribution 1 2 3 4 Business Powerful Strong Uniquely Foundation Customer Growth Financial Positioned Model Profile 11 |
Slide 12: Evolving Industry Trends Play to Our Strengths
Evolving Industry Trends Play to Our Strengths Trends Affecting Industrial Well Positioned to Meet Distributors Industry Challenges E-commerce expansion: E-commerce adoption ~60% e-commerce accelerating transactions Amazon effect Sophisticated increasing customer digital & multi-channel expectations
Slide 13: What Sets Global Industrial Apart: Why We Win
What Sets Global Industrial Apart: Why We Win Thousands of Smaller Large National Differentiator Distributors Players Core focus on SMB customers Strong capabilities in big and bulky items Extensive private label brands Robust e-commerce functionality Powerful digital marketing funnel – asset light
Slide 14: Agenda: Outgrowing the Industry
AGENDA Outgrowing the Industry 1 2 3 4 Business Powerful Strong Uniquely Foundation Customer Growth Financial Positioned Model Profile 14 |
Slide 15: Powerful Customer Acquisition, Growth, & Retention Model
Powerful Customer Acquisition, Growth, & Retention Model 1 2 Build Customer Digital and GPO Customer Focused Culture Acquisition Funnel 5 3 Result: Growth in Customer Campaigns to Sales and Margins Retain and Build Loyalty 4 Graduate to 1:1 Direct Sales Channel to Grow Share of Wallet and Category E
Slide 16: Go To Market Strategy: Expanding Channels and Opportunities
Go To Market Strategy: Expanding Channels and Opportunities One to One • ~200 Inside Sales Representative • Subject Matter Expertise Ecommerce • Full Account Management Tools • Primary Acquisition Funnel • EDI / Punchout / CXML Outside Sales • Indoff Project Management Group Purchasing • Engineering
Slide 17: Direct 1:1 Sales Builds Deep, Loyal Customer Relationships
RETAIN AND BUILD LOYALTY Direct 1:1 Sales Builds Deep, Loyal Customer Relationships Customer-Focused Approach Advantages 1:1 Direct Sales Channel Grows premium l es customers a a tS e Customers – Shift customers to ep loyal champions Private Label Profitability R ACE Model Expand categories Higher m
Slide 18: Agenda: Outgrowing the Industry
AGENDA Outgrowing the Industry 1 2 3 4 Business Powerful Strong Uniquely Foundation Customer Growth Financial Positioned Model Profile 18 |
Slide 19: Capital Light, Strong Free Cash Flow Business
Capital Light, Strong Free Cash Flow Business Cash From Operations Strong Balance Sheet/ ($M) High WC Utilization (Q3 2024) ($M) $125 Debt $0.0M $100 Cash and equivalents $38.9M $75 Inventory turns* 5.4X $50 AR DSO* ~37 $25 AP DPO* ~48 $0 2020 2021 2022 2023 19 | *Working Capital Metrics based upon
Slide 20: Capital Allocation Priorities
Capital Allocation Priorities 1 Invest for Growth 2 Strategic M&A 3 Return Capital to Shareholders • E-commerce • Acquisitions that • Continued dividend capabilities fit strategy growth over time • Customer Acquisition • Synergistic, leverage • Special dividends private label, • Product selection •
Slide 21: Strong Return of Capital to Shareholders
Strong Return of Capital to Shareholders Quarterly Dividends Per Share Dividends • $600+ million in dividends since Jan. 2018 including 6 special $0.25 dividends 14% • Current payout ratio ~52% CAGR $0.20 $0.18 $0.16 $0.14 Share Repurchases $0.12 $0.11 $0.10 • 500,000 shares repurchased since 2019 u
Slide 22: Going Forward: Financial Roadmap
GOING FORWARD Financial Roadmap1 Revenue Drive Optimize Growth Profitability Performance ~500 bps Operating Maximize Total Faster Growth Income Growth Shareholder Than Market Return Annually 1 Organic and M&A 22 |
Slide 23: 3Q 2024 Global Industrial
3Q 2024 GLOBAL INDUSTRIAL 23
Global Industrial Company — Q3 2024 Earnings Presentation on 6ix