Treatt Plc · LSE:TET
Treatt — FY2013 Earnings Presentation
17 slides from Treatt's earnings presentation, December 2013
Slide 1: Preliminary Results for the year ended 30 September 2013
Preliminary Results for the year ended 30 September 2013
Slide 2: Contents
Contents Financial Summary Key Performance Indicators Cash Customer Base Treatt in 2013 Strengths Group Strategy Financial Review 2014 Prospects 2
Slide 3: Summary 2013
Summary 2013 Highlights New strategy implemented January 2013 Dividend increased 19% Adjusted profit before tax £6.2m (2012: £5.1m) Adjusted earning per share 43.2p (2012: 34.4p) Net assets per share growth 5.6% Group revenue unchanged £74.1m (2012: £74.0m) 3
Slide 4: Key Performance Indicators
Key Performance Indicators Growth in adjusted profit before tax +23.1% Growth in adjusted basic earnings per share +25.6% 2013 2012 Net operating margin 9.4% 7.6% Return on capital employed 19.4% 14.4% Average net debt to EBITDA 1.28 x 1.52 x 4
Slide 5: Cash
Cash Debt reduced by £4.7m Headroom of £12m Total of £22m bank facilities with HSBC, Lloyds and Bank of America Portion of all three facilities on three year renewal Renewals staggered 5
Slide 6: Customer Base
Customer Base Top Customer – 9% of group sales Top Ten Customers – 35% of group sales Consumer product Manufacturers – 3 of the top 10 Flavour & Fragrance Houses – 7 of the top 10 6
Slide 7: Treatt in 2013
Treatt in 2013 Renewed focus on driving value for shareholders Strategy beginning to gain traction Managed change at the company ̶ Centralised functions • Global sales structure • Purchasing • Finance • IT Refreshed leadership team 7
Slide 8: Strengths
Strengths Focused Innovative Knowledgeable Traceability Sustainability 8
Slide 9: Group Strategy
Group Strategy Focussed sales Global Sales Structure approach Product Rationalisation Market-driven new product development Concentrated product range QC QA Increasing Employee Engagement group margin Centralised Group Excellent Cost control quality and service Functions Well motivated and W
Slide 10: Innovation
Innovation Wellness Treattaromes TreattZest TreattFusion 10
Slide 11: New Treatt
a wy New Treatt TREATT A world of difference fa 4 In the world of ingredients, we're at the core of product innovation. Let us help you increase your slice of the market. a ‘A CORNUCOPIA OF INNOVATIVE INGREDIENTS “ <> FOR YOUR FLAVOUR, FRAGRANCE AND COSMETIC PRODUCTS " SS TREATT Innovative ingredien
Slide 12: Exhibitions
Exhibitions Food Ingredients Europe 2011 Food Ingredients Europe 2013 12
Slide 13: Financial Overview
Financial Overview 2013 2012 Revenue £74.1m £74.0m EBITDA* £8.3m £6.9m Profit before tax * £6.2m £5.1m Earnings per share * 43.2p 34.4p Dividends per share 18.5p 15.5p Net Assets per share 262p 248p * Excluding exceptional items 13
Slide 14: Interim / Final Profit Before Tax
Interim / Final Profit Before Tax 2005-2013 £7,000k £6,000k £5,000k £4,000k £3,000k £2,000k £1,000k £k Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 MONTHS 1H 2H 14
Slide 15: Interim / Final Dividends
Interim / Final Dividends 2005-2013 20p 18p 16p 14p 12p 10p 8p 6p 4p 2p p Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 MONTHS 1H 2H 15
Slide 16: Summary Balance Sheet
Summary Balance Sheet All figures £m 2013 2012 Goodwill £1.1m £1.1m Fixed Assets £12.4m £12.3m Inventories £23.7m £22.9m Debtors £13.2m £14.0m Creditors (£11.3m) (£8.9m) Working Capital £25.6m £28.0m Taxation (£1.2m) (£0.3m) Net Debt (£8.3m) (£12.9m) Other net liabilities (£2.2m) (£2.2m) Shareholder
Slide 17: 2014 Prospects
2014 Prospects Group order books markedly up Costs under tight control Exciting sales opportunities in beverages Steady start to new financial year Small margin improvement? 17