Solid State Plc · LSE:SOLI
Solid State — FY2022 Earnings Presentation
33 slides from Solid State's earnings presentation, June 2022
Slide 1: Solid State PLC Investor presentation: Final results to 31 March 2022
SOLID STATE PLC PRESENTS: PRESENTED BY: Solid State PLC Gary Marsh Solid State PLC Investor presentation Peter James Matthew Richards Final results to 31 March 2022
Slide 2: Disclaimer
Disclaimer This content of information contained in these slides and the accompanying presentation comprises an institutional presentation (the Presentation) which has been prepared by and is the sole responsibility of Solid State plc (the Company). The content of this Presentation has not been appr
Slide 3: Executive Team
EXECUTIVE TEAM Solid State PLC Investor presentation GARY PETER MATTHEW JOHN MARSH JAMES RICHARDS MACMICHAEL Managing Director Managing Director Chief Executive Officer Chief Financial Officer Systems Division Components Division 3
Slide 4: Introduction to Solid State PLC
4 Solid State PLC Investor presentation Solid State PLC Introduction to
Slide 5: Solid State PLC – who are we?
5 Solid State PLC Investor presentation Solid State PLC – who are we?
Slide 6: Our facility locations
Our facility locations Solid State PLC Investor presentation International operations across 12 locations 300+ employees 6
Slide 7: A profitable and resilient business model
Solid State PLC a profitable and resilient business model Solid State PLC – supplying specialist engineered systems and value added components Solid State PLC Investor presentation 7
Slide 8: Group structure
Group structure - Custom Power will be included in the Power BU Solid State PLC Investor presentation 8
Slide 9: Solid State Plc – What do we do
Solid State Plc – What do we do Antennas and subsystems Electro-mechanical COTS and custom high- Specialists in relay and contactor performance microwave and RF switching technology solutions Components antennas Sourcing & Obsolescence Communications systems Assured sourcing for obsolete and High ba
Slide 10: Group history and strategic acquisitions completed
Group history and strategic acquisitions completed Solid State PLC Investor presentation 10
Slide 11: Key to accelerating our growth strategy for a sustainable future
Key to accelerating our growth strategy for a sustainable future Broaden Investment & complementary development product/technology of talent profile Solid State PLC Investor presentation Develop our “own brand” Internationalise product portfolio the Group 11
Slide 12: Investment case
12 Solid State PLC Investor presentation Investment case Solid State PLC
Slide 13: An attractive investment proposition
Solid State PLC an attractive investment proposition Solid State PLC – ambition for the next 5 years is to replicate or beat historic performance Solid State PLC – strong growth delivering record financial performance The 5 year strategy delivered growth through: investment in organic growth S
Slide 14: Consistent earnings growth & a record orderbook
Consistent earnings growth & a record orderbook Significant opportunities - FY23 and beyond Cash generation secures progressive dividend FY22: 19.5p (2021: 16p) Market cap expected >£100m - top half of AIM Pence companies Delivering shareholder value through growth Solid State PLC Investor p
Slide 15: Financial Results for March 2022
Solid State PLC Financial Results for Solid State PLC Investor presentation 31 March 2022 15
Slide 16: 2022 reflects organic & acquisitive growth
2022 reflects organic & acquisitive growth Solid State PLC Investor presentation 1 6
Slide 17: Record revenues, adjusted profits and exciting prospects for FY23
Record revenues, adjusted profits and exciting prospects for FY23 Like for like revenue growth 4.6% FY 2021/22 FY 2020/21 Change Reported revenue £85.00m £66.28m + 28.2% Gross margins up 2.3% - largely FX benefit Proforma revenue (like for like) £85.00m £81.30m + 4.6% Gross profit £27.53m £19.92
Slide 18: Record result & strong foundations for FY23
Record result & strong foundations for FY23 Solid State PLC Investor presentation 1 8
Slide 19: Cash generation lower than prior year due to inventory investment
Cash generation lower than prior year due to inventory investment FY FY Change 2021/22 2020/21 Underlying cash generation strong Adjusted operating profit* £7.40m £5.47m + 35% Underlying cash conversion rate 81% 127% Investment in inventory supported by Underlying operating cash generation £5.99
Slide 20: Strong balance sheet supporting investment in inventory
Strong balance sheet supporting investment in inventory No material changes in non current assets FY 2021/22 FY 2020/21 Goodwill £9.90m £9.90m Deferred tax asset £0.54m - Increase in inventory £7.0m Intangibles Property Plant and Equipment £5.93m £3.42m £6.66m £2.98m Right of Use Assets (ROUA) £
Slide 21: Custom Power: Introduction to the acquisition
Custom Power Introduction to the Solid State PLC Investor presentation acquisition 21
Slide 22: Project Wheel - transaction overview
Project Wheel - transaction overview Acquisition of Custom Power, a US battery pack manufacturer Acquisition of Custom Power, for an initial $30 million on a debt free cash free basis Custom Power: a strategically significant US based Power specialist operating at scale in target growth mark
Slide 23: Business strategy, operations and values are aligned
Business strategy, operations and values are aligned* Experienced team to manage and mitigate integration risk Custom Power – California USA Solid State Plc – Crewkerne UK Solid State PLC Investor presentation * Statement of Directors’ belief 23
Slide 24: Where is the value in the battery pack supply chain?
Where is the value in the battery pack supply chain? Solid State PLC Investor presentation Source: UKRI Faraday Battery Challenge 24
Slide 25: Key synergies from Project Wheel
25 Solid State PLC Investor presentation 5 key synergies from Project Wheel
Slide 26: Enhanced scale strengthens supply chain relationships
Enhanced scale strengthens supply chain relationships Solid State PLC Investor Project Wheel 26
Slide 27: Financial appraisal of Custom Power
27 Solid State PLC Investor presentation Custom Power Financial appraisal of
Slide 28: CP proforma trading performance shows consistent growth
CP proforma trading performance shows consistent growth Delivery on the strategy in three years of Elan’s ownership CP Proforma Proforma Proforma Proforma P&L L4L $'000 FY19 FY20 FY21 Reported revenue 30,185 29,256 29,758 Strong growth in target markets – engineering reputation Proforma adj (7,971
Slide 29: CP expected to deliver ~$3.2m of earnings enhancement in a full year
CP expected to deliver ~ $3.2m of earnings enhancement in a full year Basis of preparation of actual financial information Earn out Earn out target 1st target 1st 18 FY21 18 mths mths The $5m earn out hurdle is based on a Last Twelve Month (LTM) Proforma P&L L4L $'000 $'000 £'000 revenue exceeding
Slide 30: Investment summary
30 Solid State PLC Investor presentation summary Investment
Slide 31: Project Wheel investment case
Project Wheel investment case CP acquisition is expected to be earnings enhancing in FY23 Transformational: CP is an established profitable, cash generative battery business in USA Attractive deal terms: ~1.2x revenue and ~14x PE multiples lower than other deals in the sector Record Orderbooks
Slide 32: Prospects and outlook
32 Solid State PLC Investor presentation outlook Prospects and
Slide 33: Transformational growth prospects both organic and acquisitive
Transformational growth prospects both organic and acquisitive Outlook - Excellent prospects for 2022/23 and beyond Technology: Adoption of Industrial AI & 5G – Power control and switching targeting Net Zero Resilience: High barrier to entry markets in Security, Defence and Transport Solid State