Carclo Plc · LSE:CAR
Carclo — H1 FY2023 Earnings Presentation
32 slides from Carclo's earnings presentation, September 2022
Slide 1: Half-Year Results to 30 September 2022
Carclo engage • energise • execute Carclo plc engage • energise • execute Half-Year Results to 30 September 2022 1
Slide 2: Disclaimer
Disclaimer Carclo engage • energise • execute • This presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to Carclo plc’s business, financial condition and results of operations. These forward-looking statements can be identified by the
Slide 3: Agenda
Agenda Carclo engage • energise • execute 1. Introduction 2. Financial review 3. Carclo 2025 4. Outlook 3
Slide 4: Inside Carclo
Carclo engage • energise • execute Inside Carclo Key data: • 13 sites in US, Europe and Asia • 1,200 dedicated employees • £140m world wide sales Key technologies: • Injection moulding • Automated assembly • Rotary-swaged cable assembly 4
Slide 5: Inside Carclo
Inside Carclo Carclo engage • energise • execute Carclo is a technology-led precision business with global integrated capabilities and operations
Slide 6: Inside Carclo: High Precision Moulding
Inside Carclo Carclo engage • energise • execute High Precision Moulding • Turn key project management • Clean room facility • Automated assembly
Slide 7: Inside Carclo: Life Science Solutions
Inside Carclo Carclo engage • energise • execute Life Science Solutions • Diagnostics disposables • Drug delivery systems • Medical applications
Slide 8: Inside Carclo: Precision Components
Inside Carclo Carclo engage • energise • execute Precision Components • Dispensing systems • Polymer gears • Lighting Solutions • Safety & Security
Slide 9: Inside Carclo: Optics
Inside Carclo Carclo engage • energise • execute Optics • Light optics • Fresnels • Wipac aftercare • COIL - eyecare
Slide 10: Inside Carclo: Aerospace
Inside Carclo Carclo engage • energise • execute Aerospace • Cable solutions – rotary swag • CNC machining • Vintage – streamline wires
Slide 11: Continued growth in challenging times: Introduction
Carclo engage • energise • execute Continued growth in challenging times Frank Doorenbosch CEO Introduction 11
Slide 12: First impressions
First impressions Carclo engage • energise • execute Markets Operational performance Cash management Positioned well with blue chip Margins under pressure as a result of Highly leveraged business with low customers in markets with strong increased input cost cash generation with a backdrop of organi
Slide 13: H1 Performance
H1 Performance Carclo engage • energise • execute H1 Revenue H1 Operating result H1 Cash performance Strong top line growth supported by Margin pressure in Technical Plastics Significant increase in net debt robust demand from both life due to cost inflation and costs mainly driven by increased work
Slide 14: Navigating through an inflationary environment: Financial review
Carclo engage • energise • execute Navigating through an inflationary environment David Bedford CFO Financial review 14
Slide 15: Financial KPIs (1/2)
Financial KPIs (1/2) Carclo engage • energise • execute H1 H2 Underlying Underlying Revenue* Operating Profits* Earnings per Share 150 8.0 4.0 6.0 3.0 100 0.6 69.9 2.4 £m 57.6 £m 4.0 pence 2.0 3.3 50 2.5 2.0 2.4 72.2 3.7 3.6 1.0 50.0 58.7 1.5 1.5 0 0.0 0.0 20/21 21/22 22/23 20/21 21/22 22/23 20/21 2
Slide 16: Financial KPIs (2/2)
Financial KPIs (2/2) Carclo engage • energise • execute Net Debt Return on Capital Including/excluding Employed* Leases# 40 36.8 32.4 29.4 27.6 28.4 30 13.1 4.9 10.9 7.1 6.8 £m 20 24.4 20.5 21.6 21.5 23.8 10 0 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Net debt excluding leases Lease debt # £1.8m of the £4.
Slide 17: Segmental performance
Segmental performance Carclo engage • energise • execute 17
Slide 18: Summary Income Statement
Summary Income Statement Carclo engage • energise • execute 18
Slide 19: Financial Position
Financial Position Carclo engage • energise • execute 19
Slide 20: Net Debt Progression H1 (£m)
Net Debt Progression H1 23 (£m) Carclo engage • energise • execute (£m) 20
Slide 21: Cash Generation
Cash Generation Carclo engage • energise • execute 21
Slide 22: Pension
Pension Carclo engage • energise • execute £m H1 22/23 H1 21 /22 FY 21 /22 Comments Deficit b/f (26.0) (37.3) (37.3) Net interest cost (0.3) (0.4) (0.7) Administration cost (0.8) (0.6) (1 .2) Triennial valuation costs Company Contribution 2.4 2.1 3.9 Additional contributions £0.3m per schedule of co
Slide 23: When precision matters: Carclo 2025
Carclo engage • energise • execute When precision matters Frank Doorenbosch CEO Carclo 2025 23
Slide 24: Technical Plastics: segments we operate in
Segments we operate in Carclo engage • energise • execute Revenue H1-23 vs Comments Market Revenue Segment H1-22 • Growth with new and existing clients Life Science • Full-scale production launch of two new product lines in diagnostics has been delayed Technical Plastics • The worldwide shortage of
Slide 25: Key input cost movements
Key input cost movements Carclo engage • energise • execute Raw material prices Margin pressure Electricity prices UK Monthly Averages GBP / tonne Weekly Forward Delivery • Time delay in passing on raw Contracts – GBP/MWh 2.500 4.500 material increases, causes 600 2.000 4.000 headwind in the margin
Slide 26: An engaged, diverse, international and experienced team
An engaged, diverse, international and experienced team Carclo engage • energise • execute Governance & Executive Leadership Compliance Global Leadership 33 20 19 19 28 17 38 Frank Doorenbosch David Bedford Angie Wakes Ricky Yin Gabriel Acuña Andy Lesser Gary Allan CEO CFO Company Carclo Cares Techn
Slide 27: Carclo 2025
Carclo 2025 Carclo engage • energise • execute Profitable Focus on operational excellence to deliver profitable Manageable manageable growth in our chosen sectors and regions Growth Focus Design & Engineering One Carclo & Manufacturing Solutions Business Model Specialist Segments (Aerospace and Opti
Slide 28: "One Carclo" with focused organisation
“One Carclo” with focused organisation Carclo engage • energise • execute Focus Value M£ Revenue Development Comments Design & 20 Engineering • Last years’ major diagnostic Global Innovation, 15 project not yet launched Technical Plastics Projects Automation and 10 Validation • Set-up 1st D&E and tr
Slide 29: Strategic Foundation
Strategic Foundation Carclo engage • energise • execute 1 2 Galvanising our "One Carclo" 3 HSE as key driver throughout Establishing Carclo as the culture of diversity, the value chain. People, destination for talent and entrepreneurialism and productivity and partnership career development collabor
Slide 30: Outlook
Carclo engage • energise • execute Outlook Frank Doorenbosch CEO Outlook 30
Slide 31: Outlook
Outlook Carclo engage • energise • execute Market Carclo • Growth projections in our chosen markets and • Operational excellence projects being regions continue to stay strong implemented • Global inflationary pressures continue to persist • Investment focus on continuous improvement on margins near
Slide 32: When precision matters
Carclo Carclo engage • energise • execute engage • energise • execute When precision matters