TT Electronics plc · LSE:TTG
TT Electronics — H1 2003 Earnings Presentation
25 slides from TT Electronics's earnings presentation, Oct 29, 2003
Slide 1: 2003 Half-Year Results
! Frielectronics ple 2003 HALF-YEAR RESULTS
Slide 2: Highlights
HIGHLIGHTS z Continuing sales growth to the automotive market z Reorganisation of Magnetics z Strong balance sheet from good cash generation z Dividend maintained
Slide 3: 2003 Financial Highlights
2003 FINANCIAL HIGHLIGHTS £Ms 2003 2002 2002 2002 1st Half 2nd Half 1st Half Full Year Ongoing turnover 270.4 251.3 261.2 512.5 Profit before tax, impairment 9.1 7.9 11.3 19.2 provisions, goodwill amortisation and exceptional items Earnings per share before 4.6p 4.6p 5.5p 10.1p impairment provisions
Slide 4: Financial Summary
FINANCIAL SUMMARY £Ms 2003 2002 2002 2002 1st Half 2nd Half 1st Half Total Turnover: Ongoing 270.4 251.3 261.2 512.5 Discontinued 3.3 3.7 4.1 7.8 Total 273.7 255.0 265.3 520.3 Operating profit before impairment and goodwill amortisation: Ongoing 10.4 10.0 14.0 24.0 Discontinued (0.3) (0.7) (0.9) (1.
Slide 5: Exceptional Items
EXCEPTIONAL ITEMS z Goodwill previously written off and now charged through P&L Air Transport Avionics - Sold 0.8 Linton & Hirst – Discontinued 10.1 __________ Total £ 10.9 z Loss on sale of Air Transport Avionics £ 0.3 z Reorganisation costs Redundancy and closure costs 2.8 Plant write offs 0.2 ___
Slide 6: Geographical Analysis of Turnover
GEOGRAPHICAL ANALYSIS OF TURNOVER Origin Destination 18% 17% 6% 26% 40% 14% 50% 29% UK Rest of Europe North & Central America Rest of the World
Slide 7: Geographical Analysis of Turnover
GEOGRAPHICAL ANALYSIS OF TURNOVER Origin Destination 2003 2002 2003 2002 1st Half 1st Half 1st Half 1st Half £m % £m % £m % £m % United Kingdom 136.1 50 130.1 50 78.2 29 77.4 30 Rest of Europe 70.3 26 55.4 21 106.7 40 90.5 35 North & Central 48.6 18 56.6 22 48.0 17 53.4 20 America Rest of the World
Slide 8: Turnover and Business Performance by Origin
TURNOVER AND BUSINESS PERFORMANCE BY ORIGIN Turnover Business Performance 18% 6% 13% 13% 1% 26% 50% 73% UK Rest of Europe North America Rest of the World
Slide 9: Geographical Analysis of Turnover and Business Performance by Origin
GEOGRAPHICAL ANALYSIS OF TURNOVER AND BUSINESS PERFORMANCE BY ORIGIN Turnover Business Performance 2003 2002 2003 2002 1st Half 1st Half 1st Half 1st Half £m % £m % £m % £m % United Kingdom 136.1 50 130.1 50 0.1 1 2.1 15 Rest of Europe 70.3 26 55.4 21 7.6 73 5.3 38 North & Central 48.6 18 56.6 22 1.
Slide 10: Sector Performance
telectronics plc SECTOR PERFORMANCE
Slide 11: Turnover
TURNOVER £Ms 2003 2002 2002 2002 1st Half 2nd Half 1st Half Total Electronic 180.0 168.9 172.3 341.2 Electrical 90.4 82.4 88.9 171.3 Ongoing 270.4 251.3 261.2 512.5 Discontinued 3.3 3.7 4.1 7.8 Total 273.7 255.0 265.3 520.3
Slide 12: Business Performance
BUSINESS PERFORMANCE 2003 2002 2002 2002 £ Ms 1st Half 2nd Half 1st Half Total Electronic 8.3 7.0 10.3 17.3 Electrical 2.1 3.0 3.7 6.7 Ongoing 10.4 10.0 14.0 24.0 (0.3) (0.7) (0.9) (1.6) Discontinued 10.1 9.3 13.1 22.4 Total
Slide 13: Analysis of Turnover by Product
ANALYSIS OF TURNOVER BY PRODUCT £Ms 2003 2002 2002 2002 2nd Half 1st Half 1st Half Full Year £m % £m % £m % £m % Electronic: Sensors and electronic systems 82.9 31 69.5 27 69.5 27 139.0 27 Electronic Components 75.5 28 69.8 28 79.0 30 148.8 29 Magnetics 4.4 2 4.6 2 5.4 2 10.0 2 EMS 17.2 6 25.0 10 18
Slide 14: Our Ongoing Strategy
OUR ONGOING STRATEGY z Electronic Sector - A global enterprise z Automotive Division - Orders won will maintain growth - Continue to develop new products - Investing in new technologies - Continue to reduce costs by lean manufacturing techniques - Moving labour intensive products to low cost areas
Slide 15: Our Ongoing Strategy
OUR ONGOING STRATEGY z Component Division - Develop new markets – medical, aerospace and industrial - Engineer new products for telecom and computer markets - Update our IT Systems capability - Cautiously build on our sales and manufacturing base in China
Slide 16: Our Ongoing Strategy
OUR ONGOING STRATEGY z Electrical Sector z Power Generation - Seek higher margin opportunities - Continue to develop our GPU operation - Maximise sales for our newly developed UPS products z Power Transmission - Maximise windfarm and other sub-sea opportunities - Focus on our range of specialist cab
Slide 17: Slide 17
Slide 18: Cash Flow
telectronics plc CASH FLOW
Slide 19: Cash Flow from Operations
CASH FLOW FROM OPERATIONS £Ms 2003 2002 2002 2002 1st Half 2nd Half 1st Half Total Operating profit 9.2 (2.1) 12.0 9.9 Non-cash items - Depreciation 12.3 12.3 13.7 26.0 - Amortisation 0.9 1.0 1.1 2.1 - Impairment - 10.4 - 10.4 - Other (0.3) (4.4) (2.5) (6.9) Decrease in property 0.6 1.2 0.8 2.0 (Inc
Slide 20: Group Cash Flow
GROUP CASH FLOW £Ms 2003 2002 2002 2002 1st Half 2nd Half 1st Half Total Cash inflow from operations 23.0 19.6 23.0 42.6 Interest paid (1.0) (1.5) (1.7) (3.2) Taxation (2.6) (3.4) 0.5 (2.9) Capital expenditure (11.5) (13.6) (12.9) (26.5) Purchase of fixed asset investments (0.2) (2.1) (1.9) (4.0) Sa
Slide 21: Capital Investment
CAPITAL INVESTMENT £Ms 2nd Half 1st Half 1st Half Full Year 2003 2002 2002 2002 CapEx Depn CapEx Depn CapEx Depn CapEx Depn Electronic 9.2 9.4 11.2 9.3 9.8 10.2 21.0 19.5 Electrical 2.2 2.9 1.9 2.5 2.3 3.1 4.2 5.6 Continuing 11.4 12.3 13.1 11.8 12.9 13.3 25.2 25.1 Discontinued 0.1 - 0.5 0.5 - 0.4 1.
Slide 22: Group Balance Sheet
GROUP BALANCE SHEET £Ms 2003 2002 2002 June December June Fixed assets 173.9 177.4 199.5 Property 2.0 2.0 3.2 Stocks 101.5 98.2 101.0 Debtors 105.7 109.7 110.8 Investments 0.1 0.1 0.1 Cash 7.9 5.1 9.7 217.2 215.1 224.8 Creditors falling due within one year (116.7) (121.0) (134.0) Net current assets
Slide 23: The Future
telectronics plc THE FUTURE
Slide 24: The Future
THE FUTURE z Growth from Automotive Sales z Established position as a leading global supplier of resistive products z Strong balance sheet provides the ability to make appropriate acquisitions
Slide 25: A World Leader in Sensor and Resistor Technology
A World Leader in Sensor and Resistor Technology