Slide 1: Full Year Results 2024
Full Year Results 2024 4 March 2025
Slide 2: Agenda
Agenda 1. Highlights 2. Financial Review 3. Business Review 4. Summary & Outlook 5. Q&A 2
Slide 3: Highlights
Highlights Gavin Griggs CEO
Slide 4: Highlights
Highlights Strong execution • Significantly out-performed cost and cash saving targets • Record rate of new business wins and healthy new product pipeline • Improved customer service levels and supply chain efficiency • Healthy base for future growth and margin progression as markets recover Challen
Slide 5: Clear, consistent and proven strategy
Clear, consistent and proven strategy… Target key Drive Continually Focus on A leader in our Broad product accounts penetration to enhance our people and industry on portfolio where XP can grow share of global supply talent environmental add value wallet chain development responsibility 5 5
Slide 6: Focused on long-term structural growth markets
Focused on long-term structural growth markets….. Attractively positioned in enduring structural growth markets… • Leading and maintained positions in fundamentally attractive Semiconductor Manufacturing Equipment, Industrial Technology, Healthcare sectors • Well-positioned to prosper as these marke
Slide 7: Underpinning XP's core financial framework
…..underpinning XP’s core financial framework Through-cycle performance Organic sales Adjusted Operating Cash Target ROCE growth Operating Margin Conversion leverage c.10% c.20% c.100% >20% 0-1x Low capex model Operational leverage Record new business with high drop through wins in 2024 Expansion ca
Slide 8: Financial Review
Financial Review Matt Webb CFO
Slide 9: Key Performance Indicators 2024
Key Performance Indicators 2024 Orders & Revenue Margin Profit & Earnings Cash & Debt ADJUSTED ADJUSTED OPERATING ADJUSTED OPERATING ORDER INTAKE GROSS MARGIN PROFIT CASH CONVERSION £181.6m Down -10%1 41.0% £25.1m 261% Down -50bps Down -32%1 2023: 173% ADJUSTED ADJUSTED DILUTED NET DEBT REVENUE OPER
Slide 10: Income statement
Income statement % change At actual In exchange constant Adjusted £m 2024 2023 rates currency Revenue 247.3 316.4 (22)% (20)% • Revenue reduction reflects customer destocking and tail end of Semi sector down Gross margin 101.3 131.3 (23)% cycle Gross margin % 41.0% 41.5% (50)bps • Gross Margin refle
Slide 11: Order intake trends
Order intake trends Order intake by quarter 2023-2024 • FY order intake of £181.6m, down 10% in constant (£m) currency on prior year 61.2 • Order intake improving sequentially from H1 54.4 49.0 48.8 44.9 (£87.9m) to H2 (£93.7m), driven by growing Semi 44.2 43.7 44.2 Fab recovery • Destocking through
Slide 12: Revenue trends
Revenue trends Revenue by quarter 2023-2024 • Revenue of £247.3m was 20% lower in constant (£m) currency 82.3 81.1 77.9 75.1 • Unusual simultaneous slowdown in all three 64.6 62.5 60.2 60.0 sectors • Semi Fab revenue returning to growth in H2, despite market-related headwinds in Asia • Record sales
Slide 13: Adjusted Operating Profit bridge
Adjusted Operating Profit bridge Adjusted Operating Profit bridge £m 38.1 • Significant profit impact from market downturn • Impact significantly mitigated by disciplined and 17.0 25.1 continuous cost review resulting in a £17.0m operating cost reduction • Reduction achieved net of inflation and on-
Slide 14: Adjusted Free Cash Flow
Adjusted Free Cash Flow • Actions taken to drive strong cash generation in Adjusted £m 2024 2023 challenging market conditions Operating Profit 25.1 38.1 • Operating Cash Flow of £65.6m in the year, Depreciation and amortisation 15.8 17.3 totalling £77.3m since Funding Plan launch in October 2023 EB
Slide 15: Cost and Cash Actions
Cost and Cash Actions Annual Cost Reduction to end of 2024 Adjusted Gross Margin Improvement £20m 41.5% 2.4% 41.0% £9m -2.9% 2023 Funding Delivered to Date Plan Target 2023 Factory Utilisation Operating Efficiency 2024 Total Inventory Reduction to end of 2024 Funding Metrics £112.7m 2.3x £32m £55.4m
Slide 16: Funding Actions
Funding Actions 2024 Proforma leverage bridge 0.35x 3.15x 3.00x Covenant Limit1 0.35x 0.15x 2.30x 2.00x (1.15)x 0-1.00x 2024 Actual Comet Judgment H2 2024 EBITDA China Semi Sub-total Share Placing 2024 Post Estimated Target Range run rate reduction Headwinds before Placing Placing Proforma Market Re
Slide 17: 2025 Modelling Guidance
2025 Modelling Guidance Profit: • H1 2025 to be weak due to continued destocking and China Semis market headwinds • H2 recovery creates second half weighted year • Overhead growth of c.5% due to inflation, product development cost amortisation and share scheme charges. No significant planned headcou
Slide 18: Business Review
Business Review Gavin Griggs CEO
Slide 19: Overview: Industrial Technology
Overview: Industrial Technology ● Diverse sector with attractive growth outlook at 7.5%* per annum over the medium term ● Customers’ applications are becoming more complicated and increasingly connected ● Digitalising our products to provide the complete power systems and become critical part of the
Slide 20: Overview: Semiconductor Manufacturing Equipment
Overview: Semiconductor Manufacturing Equipment ● Attractive long-term growth outlook as semiconductors recover ● AI & Data fueling the $1tn market by 2030 ● The semiconductor industry is expected to start 18 new fab construction projects in 2025*. The new projects include three 200mm and fifteen 30
Slide 21: Overview: Healthcare
Overview: Healthcare ● We are one of the world’s largest providers of medical power conversion products, with a portfolio that meets the high safety standards demanded in the sector ● Medical device market forecast to grow at 6.4%* CAGR to $800bn by 2030, accelerating from 5% over last decade ● Grow
Slide 22: Strategy in Action – Market leading portfolio
Strategy in Action – Market leading portfolio
Slide 23: Strategy in Action – Target accounts where XP can add value
Strategy in Action – Target accounts where XP can add value Market Opportunity: $20B surgical robotics market, growing at 17% CAGR Customer Challenge: A leading surgical robotics manufacturer needed a medically compliant power solution to overcome: o Configuration limitations o EMI/EMC compliance is
Slide 24: Strategy in Action – Product Penetration with a Customer
Strategy in Action – Product Penetration with a Customer • XP Power’s partnership with one of our largest industrial customers highlights our ability to successfully grow our business • We supply a diverse array of power solutions across our entire portfolio to support their wide range of products.
Slide 25: Focused on improving operational performance
Focused on improving operational performance Products Customers Supply chain People Environmental 13 New product 15% growth in Average sales lead Lost Time Injury Rate MSCI ESG Rating: AA families launched number of projects time reduced by 3.2 0.19 (2023: 0.23) (2023: 11) with reaching sampling mon
Slide 26: Leading our industry on sustainability
Continuing to make progress on Leading our industry on sustainability sustainability agenda and reducing our carbon footprint: • 100% electricity in our EU operations is provided from renewable sources • EcoVadis Bronze Medal status received in the year, an improvement on the prior year, placing us
Slide 27: Summary & Outlook
Summary & Outlook 2025 Outlook • H1 2025 expected to be weak due to continued destocking, Asia headwinds and exit of China Semis market • Expect demand to improve as the year progresses, but timing of improvement hard to predict • Wide range of full year outcomes, with significant H2 weighting • Sha
Slide 28: Q&A
Q&A
Slide 29: Appendices
“App endice: a 2 } . «e
Slide 30: Company overview – 'the Who'
Company overview – ‘the Who’ Revenue by Industry by year 2020-2024 (£m) ● XP Power design and manufacture a diverse portfolio of 316.4 power converters, with unrivalled customer service and 290.4 support 77.9 ● We focus on sectors where power is mission-critical, and 233.3 240.3 57.4 247.3 failure i
Slide 31: Product overview – 'the What'
Product overview – ‘the What’ ● Power converter systems are the essential hardware component in every piece of electrical equipment, converting power from the electricity grid into the right form for the equipment to function ● All electronic equipment needs a stable low voltage, direct current to b
Slide 32: The rationale – 'the Why'
The rationale – ‘the Why’ ● Speed, Flexibility and Customer Focus – XP core values with first time right mentality and approach ● Long-term customer relationships. Once power converters are approved XP Power receives revenue annuity for the lifetime of the customer's equipment. This is typically sev
Slide 33: Global Manufacturing and Design Footprint: 'the Where'
Global Manufacturing and Design Footprint: ‘the Where’ Competitive global manufacturing footprint Core R&D capabilities 8 Global R&D centres located close to customers and operations Pangbourne Kunshan >160 Munich San Jose Multi-disciplined team members working in Gloucester Stuttgart R&D and produc
Slide 34: Revenue Annuity - design & annuity business model
Revenue Annuity - design & annuity business model The design in process based on customer needs – Revenue Annuity – Manufacturing and new product understanding and This is where most manufacturing mindshare is focused engagement is critical here Mature orders and revenue fluctuate on ● New platform/
Slide 35: Market data A growing addressable market
Market data A growing addressable market Market Size Share1 XP 2024 Revenue North Share of XP ($m) Asia Europe Total (£m) America (%) Asia 1,530 1.3% Healthcare 4.7 20.6 32.4 57.7 24% Europe 778 9.0% Industrial Technology 9.8 52.2 32.8 94.8 38% North America 1,195 10.4% Semi Fab 11.7 4.1 79.0 94.8 3
Slide 36: XP Power focused on long-term structural growth markets
XP Power focused on long-term structural growth markets Industrial technology1 38% revenue Semiconductors2 38% revenue Medical devices3 24% revenue Industrial power supply market to reach Global semiconductor sales to reach Medical devices market to reach $6bn by 2027 $1 trillion by 2030 $800bn by 2
Slide 37: Revenue History
Revenue History £m 350 300 250 200 150 100 50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 A long history of consistent revenue growth with 12% CAGR from 2014 to 2023 2024 revenue evolution is highly atypical, particularly the destocking cycle within Healthcare and Industrial Technology 37
Slide 38: Disclaimer
The information contained in this document is for forward-looking statements, and XP Power Limited does background purposes only and does not purport to be not undertake any obligation to update publicly or revise full or complete. No reliance may or should be placed any forward-looking statements.
Slide 39: XP Power
XP) Power POWERING THE WORLD'S CRITICAL SYSTEMS