Tt Electronics Plc · LSE:TTG
Tt Electronics — FY2007 Earnings Presentation
19 slides from Tt Electronics's earnings presentation, 2008
Slide 1: 2007 Full Year Results Presentation
To see comments made by Neil Rodgers, Chief Executive at the 2007 Full Year Results Presentation, place your cursor over the icons. View comments with Adobe Acrobat version 6 2007 Full Year Results Presentation
Slide 2: Highlights
Highlights • Profit before tax and last year’s exceptional item up by 7% to £33.3m • EPS on constant currency basis 16.1p up 14% from 2006 (before exceptional item in 2006) • Dividend maintained at a total of 10.05p • Strong performance from sensors, secure power and industrial and a recovery in ele
Slide 3: The Group today
The Group today • Focus on growth in core electronic markets • Secure power and industrial sector continues to perform well with profit up 11% • Low cost manufacturing accounts for 42% of workforce (2006: 39%) Sensors & electronic Sensors & electronic 25% (26%) 34% (34%) systems 36% (33%) 27% (32%)
Slide 4: The Group today
The Group today • North American market slower overall • Exposure to North American automotive 6% total group revenue (2006: 7%) • Growth overseas offsets UK decline • Stable European and Asian markets • Defence showing good growth UK 9% (8%) Automotive 15% (14%) 20% (22%) 41% (44%) Europe Telecom &
Slide 5: Sensors and electronic systems
Sensors and electronic systems Revenue £182.3m (2006: £184.8m) Operating profit £10.0m (2006: £11.6m) TARGETING • Leading edge automotive sensor technology for position, speed, temperature and pressure sensors. • European market growth of 6% + pa • Leading supplier to key German automotive manufactu
Slide 6: Electronic components
Electronic components Revenue £131.2m (2006: £139.9m) Operating profit £10.0m (2006: £11.4m) TARGETING • Low volume, high margin customer specific passive components • Overall market growing at 3% with a move to smaller component sizes resulting in higher margins • Distribution markets key; applicat
Slide 7: Electronic manufacturing services
Electronic manufacturing services Revenue £92.2m (2006: £72.1m) Operating profit £4.1m (2006: £1.3m) TARGETING • A global market – providing high quality manufacturing services for defence, aerospace, medical and premium industrial markets • Good underlying growth in the markets being addressed • Di
Slide 8: Secure power and industrial
Secure power and industrial Revenue £139.2m (2006: £142.6m) Operating Profit £13.6m (2006: £12.2m) TARGETING • Back-up and uninterruptible power systems are increasingly crucial in many locations worldwide • Buoyant marketplace, 40% market share in Central America and good export potential • Interco
Slide 9: Financial Results
Financial Results
Slide 10: Financial highlights
Financial highlights • Currency impact felt in both revenue and profits • Continued strong underlying cash generation • Pension fund deficit reduced further • Gearing at 41% (2006: 45%) • EPS 15.5p up 10% from 2006 (before exceptional item in 2006) • EPS on constant currency basis 16.1p up 14% from
Slide 11: Financial summary
Financial summary £Ms 2007 2007 2007 2006 Full Year 2nd half 1st half Full Year Revenue 544.9 274.4 270.5 539.4 Operating Profit 37.7 18.8 18.9 36.5 Exceptional item - - - 8.8 Total operating profit 37.7 18.8 18.9 45.3 Net interest payable (4.5) (2.4) (2.1) (3.5) Net finance cost of pension schemes
Slide 12: Cash flow from operations
Cash flow from operations £Ms 2007 2007 2007 2006 Full Year 2nd half 1st half Full Year Profit for the period 12.2 15.3 (3.1) 28.0 Finance costs 4.6 1.5 3.1 5.7 Taxation 8.3 3.7 4.6 11.3 Pension curtailment gain (1.1) - (1.1) (8.8) Loss on sale of business 12.3 (1.2) 13.5 - Depreciation 21.7 10.8 10
Slide 13: Cash flow
Cash flow £Ms 2007 2007 2007 2006 Full Year 2nd half 1st half Full year Cash flow before working capital 48.0 21.8 26.2 59.9 Inventories (5.3) 3.5 (8.8) (0.8) Receivables and derivatives - 6.1 (6.1) (6.6) Payables (0.9) (8.0) 7.1 (14.0) Exchange differences 1.1 2.1 (1.0) (6.4) Cash generated from op
Slide 14: Balance sheet
Balance sheet £Ms December June December 2007 2007 2006 Non-current assets 181.6 174.5 177.7 Deferred tax asset 4.2 8.6 21.0 185.8 183.1 198.7 Inventories 91.0 91.0 99.8 Receivables and financial instruments 95.1 95.9 105.2 Cash and cash equivalents 7.6 5.0 9.5 193.7 191.9 214.5 Net assets of dispos
Slide 15: Outlook and strategy
Outlook and strategy 2008 outlook • The US market is likely to remain subdued • Continuing to move manufacturing to Asia resulting in short-term cost implications • Actively recruiting to strengthen management team to position group for future growth • Financial performance overall similar to 2007 w
Slide 16: Conclusion
Conclusion • 2007 was a good year in profit terms • Major step forward in disposal of AEI Cables • Softening global backdrop likely to remain a feature of 2008 • Continued investment made in relocation of manufacturing facilities and product development • Increased confidence in long-term strategy
Slide 17: Appendices
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Slide 18: Geographical analysis of revenue and operating profit
Geographical analysis of revenue and operating profit Origin Destination £Ms Revenue Operating profit Revenue 2007 2007 2006Full Year 2007 2006 2007 2006 United Kingdom 172.0 174.1 6.1 2.9 111.2 115.7 Rest of Europe 140.1 140.3 13.7 12.4 201.1 200.9 North America 173.2 166.7 12.9 15.8 149.5 145.6 Re
Slide 19: Revenue and operating profit by product
Revenue and operating profit by product 2007 2006 £Ms 2007 profit Revenue Operating ROS Revenue Operating profit ROS Full Year % % Sensors and electronic systems 182.3 10.0 5.5 184.8 11.6 6.3 Electronic components 131.2 10.0 7.6 139.9 11.4 8.1 Electronic manufacturing services 92.2 4.1 4.4 72.1 1.3