Slide 1: Healthy air, sustainably
Healthy air, sustainably Volution Group plc Full year results to 31 July 2021
Slide 2: Agenda
Agenda I ntroduction and strategy Financial review Business review Ronnie George Chief Executive Officer Andy O’Brien Chief Financial Officer Summary and outlook Q&A Volution Group plc Full year results to 31 July 2021 1
Slide 3: Introduction and strategy
Ronnie George – CEO Introduction and strategy Full year results to 31 July 2021
Slide 4: Our energy efficient indoor air quality solutions are part of the global green economy
Our energy efficient indoor air quality solutions are part of the global green economy We are differentiated by our purpose. Our purpose is to provide healthy indoor air, sustainably. This commitment is integral to everything we do. It shapes our values, steers our strategy and informs our capital a
Slide 5: Sustainability: ESG strategy and approach
Sustainability Planet Our ambition To reduce our environmental impact by improving business ESG strategy and approach efficiencies and minimising our impact on the climate. Volution is committed to high standards of corporate To focus on the quality of responsibility, sustainability and employee eng
Slide 6: Our sustainability strategy in action
KPIs Our sustainability strategy in action Focus area Target FY20 FY21 In support of the United Nations Sustainable Development Goals Committed to a zero carbon future – Target 70% 59% 62.1% Product of our sales revenue from low carbon products¹ by the end of FY25. Reducing our environmental impact
Slide 7: FY21 summary
FY21 summary We have delivered strong revenue growth, expanded our adjusted operating margins ahead of our 20% target and completed three acquisitions in the year with a fourth transaction completed early in the new financial year. We have made excellent progress with our key sustainability metrics
Slide 8: Delivering well against our strategy, very strong performance
Delivering well against our strategy, very strong performance We aim to achieve our goals through a combination of Organic Value-adding three strategic objectives: organic growth, selective growth acquisitions acquisitions and Operational Excellence, and this year we have continued to develop our fo
Slide 9: Welcome to the Volution Group
Welcome to the Volution Group Acquired December 2020 Acquired February 2021 Acquired May 2021 Acquired September 2021 Founded in 2005 and Klimatfabriken was founded in Energent Oy was founded in ERI designs and manufactures a headquartered in Oldenzaal, Sweden in 2014 with the launch Finland in 1982
Slide 10: Our purpose is to provide healthy air, sustainably
Our business model Our purpose is to provide healthy air, sustainably Our business model provides the driving force and local implementation of our strategy. We understand We leverage our scale We support our We drive sustainability and shape markets Our scale provides unique companies to grow Volut
Slide 11: Financial review
Andy O’Brien – CFO Financial review Full year results to 31 July 2021
Slide 12: Financial highlights
Financial highlights Revenue £m Adjusted EPS pence Adjusted operating profit £m £272.6m 21.0p £56.9m 2021 272.6 2021 21.0 2021 56.9 2020 216.6 2020 12.1 2020 33.7 2019 235.7 2019 16.0 2019 42.1 2018 205.7 2018 14.5 2018 37.1 2017 185.1 2017 13.6 2017 35.6 Adjusted operating margin % Adjusted operati
Slide 13: Financial summary: Strong performance
Financial summary Strong performance Movement Movement FY21 vs FY21 vs 2021 2020 2019 FY20 FY19 • Revenue – strong revenue growth Revenue (£m) 272.6 216.6 235.7 25.8% 15.7% of 25.8% (24.4% at constant currency), Revenue (cc) (£m) 269.4 216.6 235.7 24.4% - with organic revenue growth of 22.0% Gross m
Slide 14: Reconciliation of adjusted to reported profit
Reconciliation of adjusted to reported profit 2021 2020 Movement £m £m £m • Acquisition-related costs: Adjusted profit before tax 53.2 31.2 22.0 • £0.9 million (2020: £nil) of professional fees. Items excluded from adjusted measures: • £1.7 million amortisation of inventory Acquisition-related costs
Slide 15: Revenue
Revenue Revenue growth 25.8% (+24.4% at cc) Organic revenue growth 22.0% (+20.5% at cc) £m 285.0 3.1 272.6 8.4 265.0 9.6 10.6 245.0 24.3 (+31.5% cc) 235.7 (+17.6% cc) 225.0 216.6 (+21.8% cc) 205.0 185.0 165.0 FY19 FY20 UK Continental Australasia Inorganic FX FY21 Europe Volution Group plc Full year
Slide 16: Adjusted operating profit margin
Adjusted operating profit margin> 20% operating margin target Target 20% FY21 20.9% Group FY20 15.6% Group margins FY19 17.8% +5.3pp to 20.9% FY21 20.6% UK margins UK FY20 14.0% FY19 17.8% +6.6pp to 20.6% FY21 26.6% Continental FY20 20.5% Continental Europe margins Europe FY19 21.4% +6.1pp to 26.6%
Slide 17: Net debt and cash flow
Net debt and cash flow Cash conversion 97%, leverage 0.9x, available liquidity £96.2 million £m 90.0 (42.2) (79.2) 80.0 (74.2) 70.0 60.0 50.0 (3.8) (0.6) 40.0 (5.7) (8.1) 30.0 (4.5) (1.5) 20.0 (3.8) 10.0 65.2 0.0 1 Aug 20 EBITDA Movement in Capital Interest paid Tax paid Payments and Dividend FX and
Slide 18: Returns on acquisition investment (ROAI)
Returns on acquisition investment (ROAI) Investment OP 2021 FY 2018 acquisitions (now > 3 years) £m £m % UK 28.2 5.6 19.7% 22.6% Nordics 38.5 14.2 36.8% Target 19.7% 18% Central Europe 37.4 9.4 25.1% 17.5% Australasia 37.1 6.5 17.5% 15.8% 141.2 35.6 25.2% 10.9% Air SIMX Pamon Connection £37.1m £10.5
Slide 19: Business review
Ronnie George – CEO Business Operational Review review Full year results to 31 July 2021 Volution Group plc Full year results to 31 July 2021 18
Slide 20: Operating segments
Operating segments United Kingdom Continental Europe Australasia % of Volution Group plc revenue (by segment) United Kingdom 49.9% Continental Europe 35.0% Australasia 15.1% £135.9m £95.5m £41.2m (up 21.8% cc) (up 25.3% cc) (up 35.1% cc) Volution Group plc Full year results to 31 July 2021 19
Slide 21: Geographic market diversification
Geographic market diversification 35++15.149.9Q 18.9+16.1+15.116.29.611.43.74.84.2Q 35 % of Volution Group plc revenue % of Volution Group plc revenue (by sector) OEM OEM Export 4.2% Nordics 4.8% 18.9% UK Export 3.7% Continental UK Europe Commercial 35.0% 11.4% UK 49.9% Central UK Europe New Build 1
Slide 22: UK
UK 35.0++15.149.9O 35.0 Total 2021 2020 growth (cc) £m £m % % of Volution Group plc UK revenue 135.9 111.5 21.8 49.9% revenue Residential RMI 44.1 33.4 32.3 Residential New Build 26.1 21.9 18.7 Commercial 31.1 27.3 14.3 Export 10.1 8.6 17.0 • Strong residential refurbishment performance OEM 24.5 20.
Slide 23: Continental Europe
Continental Europe 35.0++15.149.9O 35.0 Total 2021 2020 growth (cc) £m £m % % of Volution Group plc Continental Europe revenue 95.5 74.7 25.3 35.0% revenue Nordics 51.6 41.6 20.1 Central Europe 43.9 33.1 31.8 Adjusted operating profit 25.4 15.3 Adjusted operating profit margin % 26.6% 20.5% • Signif
Slide 24: Australasia
Australasia 35.0++15.149.9O 35.0 Total growth 2021 2020 (cc) £m £m % % of Volution Group plc 15.1% revenue Australasia revenue 41.2 30.5 31.5% Adjusted operating profit 8.9 4.6 Adjusted operating profit margin % 21.7% 15.2% • An excellent year for Australasia with significant organic growth in both
Slide 25: Summary and outlook
Summary Ronnie George – CEO Opeotional and outlook Review Full year results to 31 July 2021 Volution Group plc Full year results to 31 July 2021 24
Slide 26: Summary and outlook
Summary and outlook Summary Outlook • Strong revenue growth of 25.8% (24.4% at cc). The new financial year has started well delivering organic revenue ahead of the same period in the • Significant adjusted operating profit expansion prior year. of 5.3pp to 20.9% delivering the Group’s target six mon
Slide 27: Q&A
Ronnieyouorge Thank you – CEO Operational Q&A Review AO Recycling is a key partner for our recycled HIPS and ABS Full year results to 31 July 2021 Volution Group plc Full year results to 31 July 2021 26
Slide 28: Appendix
Appendix Ronnie George – CEO Operational Review Full year results to 31 July 2021 Volution Group plc Full year results to 31 July 2021 27
Slide 29: Consolidated statement of financial position summary
Consolidated statement of financial position summary 31 July 2021 31 July 2020 £m £m Non-current assets Property, plant and equipment 23.9 21.5 Right-of-use assets 24.5 22.1 Intangible assets – goodwill 137.7 116.8 Intangible assets – others 85.4 79.8 271.5 240.2 Current assets Inventories 45.0 31.9
Slide 30: Cash flow/net debt
Cash flow/net debt 31 July 31 July 2021 2020 Movement Movement £m £m £m % Adjusted EBITA (A) 58.3 35.0 23.3 66.6% Depreciation 6.9 6.4 0.5 Adjusted EBITDA 65.2 41.4 23.8 57.4% Change in net working capital (5.8) 6.1 (12.2) Share-based payments 2.0 0.2 1.8 Net investment in fixed assets (4.5) (4.3) (
Slide 31: Cautionary statement
Cautionary statement This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such