Strix Group Plc · LSE:KETL
Strix — FY2018 Earnings Presentation
18 slides from Strix's earnings presentation, April 2019
Slide 1: Strix Group Plc Final Results Year Ended 31 December 2018
Strix Group Plc Safer by design INVESTOR PRESENTATION FINAL RESULTS YEAR ENDED 31 DECEMBER 2018
Slide 2: Agenda
Agenda • Non-Financial Highlights – Mark Bartlett, CEO • Financial Highlights – Raudres Wong, CFO • Financial Review – Raudres Wong, CFO • New Factory – Raudres Wong, CFO • Strategy – Mark Bartlett, CEO • Markets – Mark Bartlett, CEO • HaloSource acquisition – Mark Bartlett, CEO • Trading and Outloo
Slide 3: Non-Financial Highlights
Non-Financial Highlights | Mark Bartlett, CEO Safer by design 3
Slide 4: Non-Financial Highlights
Non-Financial Highlights Strategic Operational Maintained market share of c.38% 8 successful IP protection despite geo-political events initiatives undertaken Strengthened R&D and senior 2.7m U9 series products management team including CCO sold to date Range of new products developed Aqua Optima UK
Slide 5: Financial Highlights
Financial Highlights | Raudres Wong, CFO Safer by design 5
Slide 6: Financial Highlights
Financial Highlights Note: 1 Adjusted results exclude exceptional items which includes share based payment costs, is a non- GAAP metric used by management and is not an IFRS disclosure. 6
Slide 7: Profit and Loss Summary
Profit and Loss Summary £m 2018 2017 % Change2 Revenue 93.8 91.3 +2.7% Gross profit 38.9 37.2 +4.6% Other operating costs - before exceptional (8.4) (8.5) +0.5% Other operating costs - after exceptional (13.5) (11.3) -16.0% Adjusted EBITDA1 36.4 35.1 +3.5% Adjusted PBT1 29.2 28.3 +3.2% Adjusted PAT1
Slide 8: Cash Flow
Cash Flow Commentary: £m 2018 2017 Inventory: £1.4m outflow (H1 2017: £0.6m outflow) linked to business phasing and continued holding of price-sensitive Adjusted EBITDA1 36.4 35.1 raw materials and pre-stocking in case of disruption due to Inventories (1.4) (0.6) Brexit. Trade and other receivable
Slide 9: Net Debt
Net Debt Net debt at 31 December 2018 RCF balance at 31 December 2018 £27.5m £41.0m £45.9m at 31 December 2017 £56.0m at 31 December 2017 Revolving credit facility Facility headroom at 31 December 2018 £53.0m £12.0m with facility termination date of July 2022 available to draw down if required ND/EB
Slide 10: New Factory
New Factory Current status: • Investment Agreement signed between Strix and PRC Government in Q1 2019 • Land purchase Agreement to be finalised May 2019 • Design work underway by Guangzhou Design Institute • Land size can support 34,000 m² max capacity (current size 13,000 m²) • 50 years right-of-us
Slide 11: Strategy
Strategy | Mark Bartlett, CEO Safer by design 11
Slide 12: Our mission
Our mission: “Shaping a safer future in the design and supply of innovative hot water and filtration systems which provide enhanced convenience and functionality to the global consumer.” Safer by design 12
Slide 13: Core Business Roadmap
Core Business Roadmap Less Regulated & China Regulated 2018 Highlights Patented 6A & 9A Patented 13A U68; Next 2019 U68; Next Multiple patent infringement claims successfully Generation Generation settled in China, the Netherlands, and in Europe Electronic Control Electronic Control Mini U9 (small V
Slide 14: New Products Roadmap
New Products Roadmap High Quality In-house 2019 Coffee Machine 2018 Highlights (USA) Innovation Centre CCO Appointment Launch of Tommee Tippee ‘Perfect Prep Development Day & Night’ in UK, France and Australia All-in-one Water Hot Water Dispenser 2020 Dispenser (AO) Coffee product collaboration anno
Slide 15: Aqua Optima Roadmap
Aqua Optima Roadmap Evolve MK 4 Filter 2018 Highlights Acquisition of 2019 Halosource Lumi Chiller AO becomes official partner of parkrun UK (Astrea & (white space in HaloPure brand) SDA) UK & Europe Tradebrand launches AO Heritage Expand Strategic Brand Launch in Relationship With China 2020 Amazon
Slide 16: HaloSource acquisition
HaloSource acquisition • Acquisition of specified assets, including HaloSource Corporation’s “HaloPure” division based in Shanghai, China and the Astrea product • Synergies to be gained with existing Aqua Optima operations • HaloPure provides simple, reliable and convenient clean water solutions in
Slide 17: Future Strategy and Outlook
Future Strategy and Outlook New product launches New product launches including: Core business: VnQ sub-brand, U68 electronic control, U9 mark 2 control Aqua Optima: Lumi-Chiller, AO Heritage Brand, next-generation Anti-bac filter New Product Development: Next-generation Perfect Prep, High Q
Slide 18: 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