Strix Group Plc · LSE:KETL
Strix — FY2020 Earnings Presentation
33 slides from Strix's earnings presentation, March 2021
Slide 1: Investor Presentation Final Results
Investor Presentation Final Results Period ended 31 December 2020 Please consider the environment before This document is the property of Strix Ltd and the information contained is CONFIDENTIAL. The drawings and information may not be reproduced or used without the prior written consent of Strix Ltd
Slide 2: Our Story
Our Story Headquartered in the first Unesco Biosphere on the Isle of Man, Strix is a global leader in the design, manufacture and supply of kettle safety controls, other components and devices involving water heating and temperature control, steam management and water filtration.
Slide 3: Financial, Operational and Strategic Highlights
Financial, Operational and Strategic Highlights
Slide 4: 2020 Highlights
2020 Highlights Another Resilient Performance Financial Operational Strategic Revenue declined 1.6% - Production efficiency improved with Medium-term targets to double significantly ahead of COVID-19 most assembly lines now fully Group’s revenues over the next five planning with marked recover
Slide 5: Medium Term Targets
Medium Term Targets Remain on track to secure medium term objectives Objectives Updates Double revenues over the next 5 years primarily Marked recovery in H2 and strong order book for H1. 1 through organic growth in Water and Appliance On track for c.30% growth in 2021 including addition of Catego
Slide 6: Financials & New Factory
Financials & New Factory Period ended 31 December 2020
Slide 7: Financial Highlights
Financial Highlights Revenue £m Adjusted Gross Profit1 £m Adjusted EBITDA1 £m (1.6%) (0.5%) +3.2% 2020 95.3 2020 39.4 2020 38.1 2019 96.9 2019 39.6 2019 36.9 2018 93.8 2018 38.9 2018 36.4 The Group staged a marked recovery in H2 Gross profit fell less than revenue as gross Including the acquisition
Slide 8: Profit and Loss Summary
Profit and Loss Summary £m 2020 2019 % Change2 Commentary Revenue 95.3 96.9 (1.6%) Revenue: declined by a modest 1.6% to £95.3m despite the pandemic disruption worldwide. Laica’s addition of two months’ Adjusted Gross profit1 39.4 39.6 (0.5%) revenue post-closing was £4.1m Other operating costs: Adj
Slide 9: Cash Flow
Cash Flow Commentary Financing & Tax: £3.4m outflow (2019: £3.5m outflow) includes bank interest, refinancing charges, IFRS16 lease payments and tax Net working capital: £1.7m outflow (2019: £0.4m outflow) predominately driven by Laica’s NWC addition Exceptional & Others: £0.6m outflow (2019: £0.5m
Slide 10: Net Debt
Net Debt Net debt Net debt/adjusted EBITDA Net working capital draw at 31 December 20201 ratio at 31 December 2020 from trough to peak £37.2m 1.0x £6m £26.3m at 31 December 2019. 0.7x at 31 December 2019. Intra year for 2020. Cash and facility headroom Bank covenant requirement: Maximum intra year 2
Slide 11: Capital Allocation
Capital Allocation Prudent Capital Allocation Model with 4 core priorities Operating Capital Value Accretive 01 Expenditure Capital Expenditure 02 Acquisitions Acquisitions £m Land & Factory £m Exceptional Costs Operating Cash 2020 8.3 9.1 2020 10.5 2.6 Flow 2019 9.4 6.0 2019 1.0 1.0 £m 2018 7.6 201
Slide 12: New Factory Update
New Factory Update Milestones The relocation of Strix's existing manufacturing operations in China has continued to make excellent progress in line with the projected schedule The Group is pleased to report that Strix is currently fitting the press machinery and the test lab facilities and has b
Slide 13: Kettle Control Category
Kettle Control Category
Slide 14: Kettle Controls Market Data
Kettle Controls Market Data Much improved performance during second half has continued into 2021 Kettle Control Market Value Net Value Share by Market 75% 74% 75% £30M £31M £26M £29M 55% 54% 54% 49% 44% 46% £56M £57M £59M £63M 34% 34% 35% £69M £69M £68M £70M 2017 2018 2019 2020 2018 2019 2020 Regula
Slide 15: 2020 – 2025 Growth: Kettle Controls
2020 – 2025 Growth Kettle Controls Customer-centric product development 2020 – 2025 CAGR: c.3% P76 Wash proof control £93,360 New variants to expand addressable market 15 amp controls for US and Japan Reduce raw material £82,619 content whilst driving cost reductions Next Gen Controls Success of U9
Slide 16: Kettle Controls Roadmap
Kettle Controls Roadmap Next Generation – Core Business Cost Reductions Continuous improvement in terms of cost and quality on existing control solutions Connectivity & Electronic Controls Focus on Sustainability Engineering Polymer % reduction (U18 as baseline) 100% 100% 99% 95% 95% 90% 85% 85% 85%
Slide 17: Water Category
Water Category
Slide 18: Water Category
Water Category Our aim is to deliver point-of-use drinking water solutions that give consumers the power to take control of their water, and reduce their consumption of single use plastics. Europe China 2020 Highlights • Acquisition and ongoing integration of LAICA £0.3B Historic Focus £1B • Launch
Slide 19: 2020 – 2025 Growth: Water
2020 – 2025 Growth Water (Commercial & Domestic) 2020 – 2025 CAGR: 27% Laica acquisition to bolster Strix’s global £72,199 positioning HaloPure technology expansion targeting farming & health care market in China £21,964 Build on 2020 record Aqua Optima sales through commercial excellence and digita
Slide 20: Water Roadmap & Range
Water Roadmap & Range AT-HOME FILTERS Filter Jugs Water Stations Gravity Filters Plumbed Filters Pour-Through Filters Tap Systems Filter Bottles ON-THE GO Commercial Systems Farming & Health Care Applications
Slide 21: Appliances Category
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Slide 22: Small Domestic Appliances
Small Domestic Appliances Significant progress made in the development of new technologies and application platforms for launch in 2021. 2020 Highlights HWoD & Beverage • Acquisition of Laica complements Strix appliance range, broadens sell-in opportunities • Several agreements signed with brand par
Slide 23: 2020 – 2025 Growth: Appliances
2020 – 2025 Growth Appliances (Strix & Laica) 2020 – 2025 CAGR: 25.5% Laica Acquisition delivers a footprint in new categories £33,417 for Strix such as Health & Wellness Strong progress in 5 year strategy through own brand and 3rd party brand launches in 2021 £10,723 First Dual Flo and Aurora sales
Slide 24: Appliances Roadmap & Range
Appliances Roadmap & Range Hot Water on Demand & Beverage Baby Care Core Element Tech Expand Dual Flo & Further Expand Range Expansion with Innovative Development & Expansion within Development Beverage Station Range & Category Mix Steriliser-Dryer Technology Formula Prep space Health & Wellness Foo
Slide 25: Laica & ESG
INNOVATIVE TECHNOLOGY Laica & ESG
Slide 26: LAICA
LAICA Performing well and integration remains on track Trading performance has been strong over the period delivering double-digit revenue growth Integration project team set-up with KPI’s and financial objectives Each function to have a separate integration work stream with oversight provided
Slide 27: Environmental, Social and Governance
Environmental, Social and Governance Shaping a safer, sustainable future Environmental Social Governance • Goal to reduce wastage for existing • Company motto of ‘Safer by design’ to • Compliance with a range of international products and design new products develop products that reduce the impact s
Slide 28: Outlook
Strix INNOVATIVE TECHNOLOGY
Slide 29: Outlook 2021
Outlook 2021 Strix reiterates confidence in its 2021 commitments and executing on its medium term strategy to deliver against its five year targets Resilient Business Model Structured for Growth Continued strong financial performance & Strix will continue to invest in compelling growth operational p
Slide 30: Compelling Investment Proposition
Compelling Investment Proposition Reliable. Innovative. Sustainable. Strix has successfully delivered modest growth in adjusted profit after tax for the full year which is testament to how well the Company has dealt with the challenges of the pandemic A high quality, resilient and robust busines
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Strix Group Plc (the “Company”) and comprises the following presentation slides (the “Slides”) for the sole use at a presentation concerning the Company. The Slides contain statements that are or may be deemed to be “forward-looking statements”, whic
Slide 32: Appendices
INNOVATIVE TECHNOLOGY Appendices
Slide 33: Total Shareholder Return
Total Shareholder Return Since IPO Strix’s share price has risen by 183% Share price (GBp) 300 250 200 150 100 50 0 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Strix share price Peer group (rebased to Strix) FTSE AIM (rebased to Strix) FTSE 250 (rebased to Strix) Note: Peer group consist