Slide 1: H1 FY2025 Results Presentation
H1 FY2025 RESULTS PRESENTATION 15 NOVEMBER 2024 Making critical connections 1
Slide 2: Agenda
AGENDA HIGHLIGHTS FINANCIAL STRATEGIC SUMMARY Q&A REVIEW UPDATE AND OUTLOOK Nat Rothschild Jon Boaden Nat Rothschild Nat Rothschild Executive Chairman Chief Financial Officer 2
Slide 3: Highlights in H1
HIGHLIGHTS IN H1 Strong growth, maintaining margins and investing Effective delivery of our strategy: $518.2m +9.7% Revenue Organic • Continued investment, focusing on critical connections in revenue vital, high-value markets growth • Essential and trusted partner to global technology companies • De
Slide 4: Critical connections for global technology leaders
CRITICAL CONNECTIONS FOR GLOBAL TECHNOLOGY LEADERS 01 02 03 ELECTRIC OFF-HIGHWAY VEHICLES MARKET HIGH CUSTOMER SUSTAINED ALIGNMENT AND LOCK-IN GROWTH 15% 23% EXPERTISE Selected markets that Focus on specialist Creating long-term match our core markets with high partnerships for CONSUMER strengths cu
Slide 5: Financial and Operational Review
FINANCIAL AND OPERATIONAL REVIEW 5
Slide 6: Record financial performance
RECORD FINANCIAL PERFORMANCE REVENUE UNDERLYING OPERATING PROFIT UNDERLYING OPERATING MARGIN H1 FY2025 +30.4% $518.2m H1 FY2025 +27.3% $47.6m H1 FY2025 9.2% H1 FY2024 $397.5m H1 FY2024 $37.4m H1 FY2024 9.4% H1 FY2023 $357.5m H1 FY2023 $32.1m H1 FY2023 9.0% ORGANIC REVENUE GROWTH RETURN ON CAPITAL EM
Slide 7: Electric Vehicles
ELECTRIC VEHICLES Strong return to growth Accessories & Other 10% We have a leading position in this market with significant design expertise as well as a vertically Vehicle parts integrated production capability. This creates cost and logistical advantages making us a competitive and Grid 36% relia
Slide 8: Consumer Electricals
CONSUMER ELECTRICALS Competitive production supporting volume growth Industrial & Other We are a world-class manufacturer of power cords, with global expertise in manufacturing wiring 19% Domestic appliances harnesses for domestic and commercial appliances. Volex supplies many of the biggest brands
Slide 9: Medical
MEDICAL Normalisation with strong long-term prospects Life science Medical device 9% We specialise in quick turnaround, integrated manufacturing services, for highly complex and advanced 12% products. Our highly skilled and experienced engineering and manufacturing team are well versed in the latest
Slide 10: Complex Industrial Technology
COMPLEX INDUSTRIAL TECHNOLOGY Data centre volumes boosted by AI demand IT / Telecoms 11% Volex has the knowledge, experience, commitment, and service to ensure customers who use complex Aerospace & Data Defence 14% centre industrial technologies can benefit from the most profitable and efficient man
Slide 11: Off-Highway
OFF-HIGHWAY Diversification and scale in an attractive sector Defence Construction 10% 3% Commercial With the acquisition of Murat Ticaret in August 2023, Volex has expanded its capabilities and presence in & Other the sector. From specialist manufacturing facilities around the globe, Volex can supp
Slide 12: Operating margins maintained within target range
OPERATING MARGINS MAINTAINED WITHIN TARGET RANGE • Continued targeted, customer- led investments to support long-term growth • The acquisition of Murat Ticaret has been included net of the inflation in Türkiye • Inflation has been well managed with increased costs offset through efficiency savings o
Slide 13: Group cash flow
GROUP CASH FLOW $M H1 FY25 H1 FY24 • Underlying EBITDA improved by Underlying EBITDA 61.3 46.8 31% Net capital expenditure (26.4) (16.0) • Capex investment in line with Underlying working capital (32.2) (7.9) guidance at 5% of revenue Net interest and tax (14.2) (10.3) • Working capital outflow: Oth
Slide 14: Capital allocation priorities to deliver sustainable growth
CAPITAL ALLOCATION PRIORITIES TO DELIVER SUSTAINABLE GROWTH ORGANIC GROWTH ACQUISITIONS ORDINARY CAPITAL RETURNS DIVIDENDS • Capital investments key • Enhance capabilities and • Sustainable through- • If capital cannot be to strategic growth grow customer base cycle dividend deployed elsewhere to cr
Slide 15: Strategic Update
STRATEGIC UPDATE 15
Slide 16: Our strategic progress
OUR STRATEGIC PROGRESS Maintained operating BEING Over $1bn revenue in last margins through COMPETITIVE 12 months, following Murat challenging macro GLOBAL SCALE Ticaret acquisition conditions AND CAPABILITIES OPERATIONAL EXCELLENCE Producing our own Strengthened RECRUIT AND copper wire, for use in
Slide 17: Investment in growth
INVESTMENT IN GROWTH Programme of targeted investments, responding to customer demand, localisation and capability enhancement ADDITIONAL FY25 CAPACITY 28 Expanding capacity and Manufacturing capability across the group sites Total floor space Capacity expansion driven by 375,000m2 evolving customer
Slide 18: Integration of Murat Ticaret
INTEGRATION OF MURAT TICARET Productivity improvements PROFITABILITY Site optimisation / relocation ACTIONS Supply chain efficiency High inflation in Türkiye INFLATION Profitability remains in line with Group’s target range MANAGEMENT Accelerating productivity actions Hired dedicated sales team NORT
Slide 19: Successful acquisition strategy
SUCCESSFUL ACQUISITION STRATEGY CONSIDERATIONS: Geography Customers Markets Culture Capabilities Valuation Since FY2019: Strong execution: 12 5.2x 18.9% Businesses acquired c.$400m Blended acquisition multiple Acquisition ROCE (excl. goodwill) Invested 19
Slide 20: Confident of delivering five-year plan
CONFIDENT OF DELIVERING FIVE-YEAR PLAN Five-year plan to FY2027 $1,200m 9-10% Revenue Underlying operating margin H1 FY2025 $518.2m H1 FY2025 9.2% H1 FY2024 $397.5m H1 FY2024 9.4% H1 FY2023 $357.5m H1 FY2023 9.0% ON TRACK ON TRACK DELIVERED REVENUE CAGR OF 20%, REQUIRE 6% FOR REMAINDER OF PLAN 20
Slide 21: Summary and Outlook
SUMMARY AND OUTLOOK 21
Slide 22: Summary and outlook
SUMMARY AND OUTLOOK Excellent results, Return to growth in Continuing with Firmly on-track to Continued strong revenue Electric Vehicles and operational and deliver on confidence in growth and margin Consumer Electricals capital investments expectations for delivering the five- maintained in target
Slide 23: Appendices
APPENDICES 23
Slide 24: Management team
MANAGEMENT TEAM Volex is led by a group of highly committed and experienced individuals that shape and drive the direction of the organisation Nat Rothschild John Molloy Jon Boaden Executive Chairman Chief Operating Officer Chief Financial Officer • Nat joined Volex in 2015 and has extensive experie
Slide 25: Balance sheet
BALANCE SHEET H1 FY2024 $M H1 FY2025 (RESTATED)1 Goodwill and intangible assets 254.5 255.4 Property, plant and equipment 162.6 124.5 Investments 11.0 6.5 Inventories 209.4 182.5 Trade and other receivables 232.6 201.1 Trade and other payables (283.1) (247.5) Pensions and provisions (12.5) (13.8) Ta
Slide 26: Volex
Volex