Strix Group Plc · LSE:KETL
Strix — Shareholder Meeting (May 2021)
30 slides from Strix's shareholder meeting presentation, May 27, 2021
Slide 1: Strix Group plc AGM
Strix Group plc AGM 27th May 2021 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. printing this presentation. Th
Slide 2: Current trading and strategic project update
Current trading and strategic project update 2
Slide 3: Current Trading Update: Key financial and Commercial initiatives
Current Trading Update: Key financial and Commercial initiatives Improved performance of the group experienced in H2, 2020 has continued throughout H1 of 2021 Kettle controls performing strongly, particularly within the Regulated segment with a strong order book providing confidence for H2 and b
Slide 4: Current Trading Update: Key Strategic initiatives
Current Trading Update: Key Strategic initiatives The Halopure technology continues to gain wider acceptance with two further contracts secured this month at a regional government owned pig farm in China. This company owns more than 40 farms over 3 provinces and will continue to promote this techn
Slide 5: Total Shareholder Return
Total Shareholder Return Since IPO Strix’s share price has risen by192% Share price (GBp) 350 300 250 200 150 100 50 0 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Strix share price Peer Group (rebased to Strix) FTSE AIM (rebased to
Slide 6: Financial Highlights
Financial Highlights Period ended 31 December 2020 6
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: Strategic Highlights
INNOVATIVE TECHNOLOGY 12
Slide 13: New Factory Update
New Factory Update Building Approval • Building property certificates have been received which completes the governmental approval process Factory movement progress: https://player.vimeo.com/video/555060716 • 100% of press and mould machines have been moved and fully operational • 40% of assembl
Slide 14: LAICA new product launch activities
LAICA new product launch activities Blog Website Social Marketing & Influencer activities activities communication digital activities Amazon Videos Advertising 14
Slide 15: ESG update
ESG update Renewable Energy for Strix China – October ‘21 ESG, externalize what we do Solar Energy producing 100%+ of our Assembly The Strix PLC website has been updated with a consumption will go live in October 2021 dedicated Sustainability section ISO50001 Energy Management – December ‘
Slide 16: Category Roadmaps
INNOVATIVE TECHNOLOGY 16
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 22
Slide 23: 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 24: 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 25: 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 26: Investment Summary
INNOVATIVE TECHNOLOGY 26
Slide 27: 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 28: 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 29: End of CEO / CFO presentation
INNOVATIVE TECHNOLOGY End of CEO / CFO presentation
Slide 30: Results of proxy votes cast
Results of proxy votes cast Results as at 26 May 2021 Resolution Resolution description Total Votes Votes For % For Votes Against % Against Votes cast* Withheld Ordinary resolutions 1 To receive and adopt the Annual report and audited financial 138,273,014 136,327,860 98.59% 1,945,154 1.41% 128,617