Slide 1: 2016 Results
2016 Results Volution Group plc Full year results to 31 July 2016 Excellence in ventilation
Slide 2: Introduction
Introduction >> Highlights >> Financial Review >> Business update and outlook Ronnie George Ian Dew >> Q&A Chief Executive Officer Chief Financial Officer Volution Group plc Full year results to 31 July 2016 2
Slide 3: Volution Group plc snapshot
Volution Group plc snapshot Brands A leading supplier of ventilation products to Ventilation Group the residential and commercial construction 86.8% of revenue markets in the UK and northern Europe. A leader in: >> UK residential ventilation products market; Operating through two segments: >> Swedis
Slide 4: Our Locations
Our Locations Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK and northern Europe. Locations Acquisition in FY16 Volution Group plc Full year results to 31 July 2016 4
Slide 5: Our Strategy
Our Strategy Strong results with revenue growth of 19% and EPS up 15%. Three Strategic Pillars Organic growth in Growth through a disciplined Development of OEM our core markets and value‑adding (Torin-Sifan) range and acquisition strategy customer base >> 3.1% constant currency (cc). >> Four acquis
Slide 6: 2016 Highlights
2016 Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £154.5m £32.5m 21.0% 154.5 32.5 21.7 22.0 22.6 29.4 21.0 130.2 26.5 120.7 102.3 22.2 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 >> Strong revenue growth in the year of 18.7% >> Adjusted operat
Slide 7: 2016 Highlights continued
2016 Highlights continued Adjusted EPS p Adjusted operating cash flow £m Net debt £m 12.6p £31.1m £36.1m 12.6 31.1 172.7 11.0 27.6 8.8 22.8 20.9 42.9 21.2 36.1 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 >> Adjusted EPS growth of 14.5%. >> Adjusted operating cash flow in 2016 >> Net debt
Slide 8: Financial Review
Financial Review Ian Dew – CFO
Slide 9: Financial Highlights
Financial Highlights Financial year ended 31 July 2016 Organic growth and four acquisitions in the year. Sales, earnings and operating >> Revenue growth of 18.6% at constant currency (cc): cash flow all improved significantly. >> 3.0% organic growth (3.1% at cc); and Constant >> 15.7% inorganic grow
Slide 10: Income Statement Summary
Income Statement Summary Financial year ended 31 July 2016 Movement Movement >> Gross profit up by £12.2m on higher volumes and 2016 2015 £m % improved margins. Revenue (£m) 154.5 130.2 24.3 18.7 >> Gross margin of 48.8% up by 0.3pp. Revenue (£m) cc 154.4 130.2 24.2 18.6 >> Adjusted operating profit
Slide 11: Adjusted Profit before Tax Reconciled to Reported Profit before Tax
Adjusted Profit before Tax Reconciled to Reported Profit before Tax Financial year ended 31 July 2016 2016 2015 Movement Adjustments: £m £m £m >> Exceptional items relate to acquisitions in the year. Adjusted profit before tax 31.3 27.5 3.8 >> Net gain on financial instruments relate to the Adjustme
Slide 12: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Financial Year ended 31 July 2016 31/07/2016 31/07/2015 >> Non-current assets increased by £24.1 million mainly £m £m as a consequence of four acquisitions in the year and Property, plant and equipment 19.1 16.1 the translational effect of FX move
Slide 13: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Financial Year ended 31 July 2016 2016 2015 >> Net debt increased from £21.2m to £36.1m largely because £m £m of the £25.0m spent on acquisitions in the year. Opening net debt (21.2) (42.9) >> Adjusted operating cash flow of £31.1m represented a cash Movements f
Slide 14: Business update and outlook
Business update and outlook Ronnie George – CEO
Slide 15: Growth by Market Segment
Growth by Market Segment 2016 2016 2015 Growth Growth £m £m (cc) £m % % (cc) Ventilation Group revenue 134.1 134.0 111.5 20.3 20.3 OEM (Torin-Sifan) revenue 20.4 20.4 18.7 9.0 8.8 Total Volution Group revenue 154.5 154.4 130.2 18.7 18.6 Revenue growth Revenue £m The total Group grew by 18.7% (18.6%
Slide 16: Market Sector Review: UK Residential RMI
Market Sector Review UK Residential RMI Like-for-like 2016 2015 organic Inorganic Total £m £m % % % UK Residential RMI revenue 35.4 36.6 (4.5) 1.4 (3.1) UK Residential RMI Private RMI (1.6%) >> Poor start to FY16 with Q1 particularly disappointing. >> Growth in our silent and “high end” refurbishmen
Slide 17: Market Sector Review: UK Residential New Build
Market Sector Review UK Residential New Build Like-for-like 2016 2015 organic Inorganic Total £m £m % % % UK Residential New Build revenue 19.8 17.2 7.2 8.2 15.4 UK Residential New Build >> Organic growth of 7.2% with the order book growing faster than sales. >> The planned switch away from installa
Slide 18: Market Sector Review: UK Commercial
Market Sector Review UK Commercial Like-for-like 2016 2015 organic Inorganic Total £m £m % % % UK Commercial revenue 21.7 16.2 (7.0) 40.9 33.9 UK Commercial >> Disappointing performance for RMI; however, acquiring Diffusion provides wider access to new applications which performed very well in the y
Slide 19: Market Sector Review: UK Export
Market Sector Review UK Export Like-for-like 2016 2015 organic Inorganic Total £m (cc) £m % % % UK Export revenue* 7.8 6.7 3.5 13.5 17.0 * Excludes sales to Ventilair in the prior year of £1.7m to get a like-for-like organic comparison to 2016 as the sales to Ventilair are now eliminated as intercom
Slide 20: Market Sector Review: International: Nordics
Market Sector Review International: Nordics Like-for-like 2016 2015 organic Inorganic Total £m (cc) £m % % % Nordics revenue 25.7 22.2 11.3 4.2 15.5 Nordics >> Another year of strong revenue growth (12.5% in FY15). >> Substantial increase in operating margin – integration now fully executed. >> Acqu
Slide 21: Market Sector Review: International: Central Europe
Market Sector Review International: Central Europe Like-for-like 2016 2015 organic Inorganic Total £m (cc) £m % % % Central Europe revenue 23.7 10.9 (2.3) 118.5 116.9 Central Europe >> Ventilair acquired and integration execution delivered in line with plan. >> Vent-Axia brand launched to distributo
Slide 22: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review OEM (Torin-Sifan) Like-for-like 2016 2015 organic Inorganic Total £m (cc) £m % % % OEM (Torin-Sifan) revenue* 20.4 18.6 9.5 – 9.5 New facility * Excludes sales to Diffusion in the prior year of £0.1m to get a like-for-like organic comparison to 2016 as the sales to Diffusion are
Slide 23: Summary and Outlook
Summary and Outlook >> Good organic growth of 3.1% cc accelerating in H2 2016 and organic margin expansion in the year. >> Four acquisitions completed in the year with three already fully integrated, the fourth progressing well. >> Significant synergies expected from the most recent acquisition, NVA
Slide 24: Thank you Q&A
Thank you Q&A
Slide 25: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as