Ig Design Group Plc · LSE:IGR
Ig Design — H1 2019 Earnings Presentation
21 slides from Ig Design's earnings presentation, January 2019
Slide 1: Half Year Results Presentation 2018
Half Year Results Presentation 2018 Presented by Paul Fineman, CEO and Giles Willits, CFO
Slide 2: Slide 2
Slide 3: Highlights 2018 — Significant Progress in the Period
HIGHLIGHTS 2018 — SIGNIFICANT PROGRESS IN THE PERIOD Success delivered through: Organic Investment Innovation growth driving margins developing new through efficiency product categories organic revenue and streamlining and channels to and profit growth processes market Acquisition Financial of Impact
Slide 4: Financial Highlights for Six Months to September 2018
FINANCIAL HIGHLIGHTS FOR SIX MONTHS TO 30 SEPTEMBER 2018 Revenue Underlying profit before tax(a) Underlying diluted Dividend (£million) (£million) earnings per share(b) (pence) (pence) 205.2 18.5 19.5 TBA 166.5 4.00 145.5 119.8 2.75 10.5 10.9 9.6 8.2 2.50 6.4 1.75 5.2 2.00 1.75 0.75 2015 2016 2017 2
Slide 5: Some Key Facts
SOME KEY FACTS 100 million cards, 100 million No. 1 in the global Balanced business with gift bags and over 1 billion consumer gift packaging 20% of sales by destination metres of gift wrap sold market worth an estimated in UK and with 80% in in FY 2018 £5 billion(a) at retail value other markets Tr
Slide 6: Group Revenue Driven by Diverse Product Portfolio
GROUP REVENUE DRIVEN BY DIVERSE PRODUCT PORTFOLIO By customer destination By category 77% 10% 4% Celebrations Giftware NFR (b) ROW 9% £4.4m Stationery(a) Australia 2% By season £20.5m 10% 59% 40% 1% Christmas Everyday Minor seasons Europe £28.7m USA 14% £110.5m By brand 54% 68% 32% Designed for you/
Slide 7: Review of Financial Performance
Review of Five year record Financial Performance IG Design Group plc HALF YEAR RESULTS PRESENTATION 2018 6
Slide 8: Summary of Half Year Results
SUMMARY OF HALF YEAR RESULTS Six months ended Six months ended 30 September 30 September 2018 2017 Growth £m £m % Sales 205.2 166.5 23 Gross profit 44.2 35.4 25 Overheads (25.5) (24.5) 4 Other income 0.3 0.2 Underlying EBITDA 22.1 13.7 61 Underlying operating profit 19.0 11.1 71 Finance costs (0.5)
Slide 9: Significant Progress in Operating Margins
SIGNIFICANT PROGRESS IN OPERATING MARGINS Sales Profit Margin Group revenue H1 2019 H1 2018 Growth H1 2019 H1 2018 Growth H1 2019 H1 2018 30% UK & Asia £m 60.6 59.3 2.3% 4.9 4.7 5.7% 8.1% 7.9% 49% Americas $m 131.6 91.3 44.1% 13.5 7.5 80.0% 10.3% 8.2% Organic $m 88.9 91.3 (2.6%) 7.5 7.5 (0.6%) 8.4%
Slide 10: Cash Reflecting Impact Acquisition and Seasonal Working Capital
CASH REFLECTING IMPACT ACQUISITION AND SEASONAL WORKING CAPITAL Six months ended Six months ended 30 September 31 September Working capital 2018 2017 H1 2019 H1 2018 £m £m Excluding Total Impact Impact Total EBITDA(a) 22.1 13.7 £m £m £m £m Change in trade and other receivables (108.5) (90.3) Change
Slide 11: Seasonal Working Capital Investment Delivers Speedy Cash Conversion
SEASONAL WORKING CAPITAL INVESTMENT DELIVERS SPEEDY CASH CONVERSION £m 115 Debt movement Net debt £m 2017/18 (70.2) FX translation (1.9) Underlying increase in debt (5.1) Biscay acquisition debt (4.3) Impact debt (31.9) 75 Impact working capital (4.1) Second tranche equity raise 17.5 2018/19 (100.0)
Slide 12: Balance Sheet
BALANCE SHEET As at As at 30 September 30 September Impact acquisition 2018 2017 As at £m £m 30 Sep 2018 £m Intangibles 79.2 33.9 Property, plant and equipment 9.4 Fixed assets 45.2 33.3 Stock 23.1 Stock 110.2 70.2 Trade and other receivables 56.4 Trade and other receivables 183.9 120.6 Cash 0.2 Net
Slide 13: Managing Our Challenges
MANAGING OUR CHALLENGES Challenge Be Have a Have a Sustain resilient Combatting US tariffs robust reliable De-risk FX and nurture Impact of to macro cost on Chinese supply customer movements capable Brexit economic headwinds imports chain base leadership factors Response • Use our global • Broad • C
Slide 14: Our Objectives
OUR FUTURE PROMISES Growth: Returns: Risk: Underlying EPS growth OUR OBJECTIVES Dividend policy Average leverage Target double digit three year Trend to 2.5x covered Sustain long term between CAGR in underlying EPS (40% pay-out) 1.0x and 2.0x Through organic growth with Outperformance supports Provi
Slide 15: Future Growth Drivers
Future Growth Drivers IG Design Group plc HALF YEAR RESULTS PRESENTATION 2018 14
Slide 16: Delivering Growth Through Focus on Strategic Drivers
DELIVERING GROWTH THROUGH FOCUS ON STRATEGIC DRIVERS WORKING WITH THE WINNERS DESIGN AND INNOVATION EFFICIENCY AND SCALE STRATEGIC DRIVERS • Organic growth with existing and new • Developing in new channels and • Driving margins through investment customers, suppliers and product adjacent product ca
Slide 17: Impact Innovations – On Schedule to Deliver $5M Operational Synergy
IMPACT INNOVATIONS – ON SCHEDULE TO DELIVER $5M OPERATIONAL SYNERGY Synergy driver Synergy timings Comment Status • In October we announced the first major Combine FY 19 FY 20 FY 21 Consolidation to Memphis steps to consolidate the manufacturing announced on time, plans operations of the combined bu
Slide 18: Second Half Focus
SECOND HALF FOCUS Excellent execution of our record Full implementation/‘roll out’ of Ongoing progress in the order book the new IT platform in the US operational and commercial integration of Impact Innovations within the Americas and throughout the Group Accelerated momentum in Volume growth and S
Slide 19: Why Invest?
WHY INVEST? We will continue to drive organic growth, through our diversified business operating across regions, categories, channels, seasons and brands We will enhance net margins through investment, driving efficiency, streamlining processes and attracting best talent We will continue to drive in
Slide 20: SS SF
SS SF a
Slide 21: IG Design Group plc
IG Design Group plc No 7 Water End Barns Water End Eversholt MK17 9EA T +44 (0)1525 887 310 thedesigngroup.com