Rosebank Industries (ROSE) Investor presentation summary

Strategic approach and business model

• Focus on acquiring quality industrial manufacturing businesses with improvement potential, applying a 'Buy, Improve, Sell' strategy to drive value creation.

• Emphasis on eliminating unnecessary corporate overhead, prudent leverage, and incentivized management to drive sustainable improvement.

• Aim to double shareholders' investment in 3-5 years based on conservative assumptions, with flexibility on holding periods.

• Expertise in both public and private transactions, with a focus on profitability, cash generation, and returning capital to shareholders.

Recent acquisitions and operational improvements

• Completed acquisitions of ECI, MW Components, and CPM, each with strong market positions and blue-chip customer bases.

• Implemented rapid improvement plans, including $25m annualized head office savings, site closures, and organizational simplification.

• MW Components split into three standalone businesses, with a $14m capex investment approved for facility optimization.

• CPM undergoing leadership transition and restructuring, with a focus on consolidating aftermarket activities and eliminating underperforming divisions.

Financial performance and value creation

• FY25A revenue and EBITDA for ECI: $1,219m and $221m (18% margin); MW Components: $713m and $95m (13% margin); CPM: $500m and $175m (35% margin).

• Acquisition enterprise values: ECI $2bn, MW Components $950m, CPM $2.1bn, with EV/EBITDA multiples of 9x, 10x, and 12x respectively.

• All three businesses show strong underlying cash flows and margin improvement opportunities, with clear paths to doubling shareholder investment.