Autins Group Plc · LSE:AUTG
Autins — H1 FY2023 Earnings Presentation
22 slides from Autins's earnings presentation, June 2023
Slide 1: Autins Group – Interim Results Presentation
Autins Group – Interim Results Presentation Six months ended 31 March 2023
Slide 2: Agenda
Agenda • Financials • Operational Highlights and Markets • Investing for Future Profitable Growth • Summary and Outlook 2
Slide 3: 01 Financials
01 Financials 3
Slide 4: Financial Highlights
Financial Highlights H1 FY23 H1 FY22 H1 23 v H1 22 Key Financials £m £m H2 FY22 £m £m/pence Revenue 10.8 9.4 9.4 1.4 Gross Profit 3.1 2.4 1.9 0.7 Gross margin % 28.2% 25.1% 19.9% 3.1 EBITDA (IFRS16) 0.4 (0.4) (0.8) 0.8 Loss before taxation (0.9) (1.4) (2.2) 0.5 Taxation (inc R&D tax credit) 0.0 0.0
Slide 5: Cashflow H1 FY23
Cashflow H1 FY23 Statutory Cash Flow £k Subtotal H1 FY23 Operating activities 360 Debtors (1,250) Creditors 577 Inventory 670 357 Capex (157) (157) Lease Liabilities IFRS 16 (385) Finance Costs (323) (708) (508) (508) • Pricing, margins and restructuring actions delivered fast to impact H1 cashflow
Slide 6: Financial Highlights
Financial Highlights • Revenue increased by 15.4% to £10.84m (H1 22: £9.39m) • Gross profit increased by 30.2% to £3.06m (H1 22: £2.35m) • Gross margins increased by 3.1%pts to 28.2% (H1 22: 25.1%) • EBITDA1 was a profit of £0.34m (H1 22: £0.35m loss) • Loss after tax of £0.90m (H1 22: loss of £1.38
Slide 7: P&L Improvement Actions & Impact – status update
P&L Improvement Actions & Impact – status update We have taken the following actions to improve the performance of the Group: Impact > £2.5m in isolation Gross Margin • Significant Price increases have been achieved, for c.90% of Revenue £value • Restructuring both factory and staff – c.20 personnel
Slide 8: Market Analysis
02 Market Analysis 8
Slide 9: Operational Highlights
Operational Highlights • Significant financial benefits from price, material and cost improvements, adjustments to commercial contracts, and restructuring actions • Supply chain to the UK automotive market is more stable, although sales volumes were c.5% lower than the prior year • Automotive sales
Slide 10: Customer Contract Improvements
Customer Contract Improvements Gross Margin improvement since end FY22 • Successful price and contract 50% negotiations were achieved 40% across the customer base, in all regions and across all 30% market sectors 20% • This has driven a positive margin progression since the 10% end of FY22 0% Sep-22
Slide 11: Automotive Macro Market Trends
Automotive Macro Market Trends REDUCED PRODUCTION IN UK & EUROPE DUE TO CHIP SHORTAGES AND DELAYS TO NEW EV PRODUCTION LAUNCHES UK Europe • 2019: 1.37m • 2019: 19.4m; 2020:15.4m, down 20.2% • 2020: 972k, down 28.8% • 2021: 14.7m, down 4.4% • 2021: 917k, down 5.7% • 2022: we had expected 16.9m, up 17
Slide 12: UK Macro Market Conditions
UK Macro Market Conditions Base Outlook assumes UK Production Scenarios • Chips and broader supply chain issues 1,450,000 unresolved until 2023/24 Base Outlook plus possible • JLR completes EV switch, Nissan launches 1,350,000 new OEMs new EVs • No factory closures 1,250,000 Faster and more successf
Slide 13: German Automotive market
German Automotive market • Autins’ automotive sales are up 65% vs last year • Fuelled by new business wins on EV platforms • Volumes with VW group and Porsche on high level and stable • Supply chain disruptions from semi-conductors less than expected • Car registrations in Germany + 8% year to date
Slide 14: German Flooring market
German Flooring market • H1 sales dropped 26% to €1.5m compared to last year • This was in line with management expectations related to the economy and EU construction/building activity • We have not lost any customers, but sales drop related to strained supply chains (China), cost increases and hig
Slide 15: Investing for future profitable growth
03 Investing for future profitable growth 15
Slide 16: New equipment to support EU growth
New equipment to support EU growth • New Cut and Seal Machine installed and commissioned 15th June 2023 • £300k Capex - financed • This is needed to meet growing demand in Germany • New machine will also improve margins: – Better quality – Less downtime and scrap 16
Slide 17: Neptune improvements to reduce costs, improve quality and increase capacity
Neptune improvements to reduce costs, improve quality and increase capacity Hammer IMS: Aerodynamics: Traceability: Unique innovation of in -line Newly designed equipment for Full automated electronic density scanning and improved airflow traceability monitoring • Improved product quality • Faster r
Slide 18: Product Innovation – a greener future
Product Innovation – a greener future Developed In Development Neptune-R & Neptune Green • 100% recycled PET • c.50% cost reduction • Recycled PP • Recycling of waste Neptune-R SilentShell • Target is to gain commercial value for our waste • Technologies identified • Evaluating partners 18
Slide 19: ESG
ESG Environment Social Governance As presented at the 2022 FY results, Autins supports local engineering The Autins’ Board follows all QCA we reduced the Carbon footprint community events and from time-to- guidelines across the Group by 84% @ Oct 1st time hosts school visits 2022 Autins ranks in the
Slide 20: Strategy for Profitable Growth
Strategy for Profitable Growth • Maximise margins – focus on operational efficiencies such as energy usage • Continuous push for more volume and capture market recovery • Continue to expand customer base across Europe • Launch innovative 100% recyclable materials and products • Leverage Neptune-R &
Slide 21: 04 Summary and Outlook
04 Summary and Outlook 21
Slide 22: In Summary
In Summary • HY23 has seen good progress to recover margins through price, cost, labour and material • Company continues pushing forward on all fronts: • Improving relationships with major customers and winning new business • Investment in new equipment to meet growing European auto demand • Expandi