Slide 1: 2014 Results
2014 Results Full year results to 31 July 2014
Slide 2: Introduction Agenda
Introduction Agenda Highlights Financial Review Business Review, Strategy and Outlook Q&A Presentation
Slide 3: The Volution Group
The Volution Group Volution consists of The Ventilation Group and an OEM division (Torin-Sifan) The Ventilation Group consists of five key brands, Vent-Axia, Manrose, Fresh, PAX and inVENTer, focused primarily on the UK, Swedish, Norwegian and German ventilation markets. We are the market lead
Slide 4: 2014 Highlights
2014 Highlights Performance in line with management expectations at the time of the IPO Revenue growth of +18.0% driven by: Organic growth +3.2% (5.2% LFL currency) M+A +14.8% driven by Pax and InVENTer 4th consecutive year of growth Organic growth was driven by: +11.2% growth in syste
Slide 5: Financial Review
Financial Review Ian Dew – Chief Financial Officer
Slide 6: Financial Highlights
Financial Highlights 2014 2013 Movement Movement £m £m £m % Revenue 120.7 102.3 18.4 +18.0% Adjusted EBITDA 28.5 23.8 4.7 +19.7% Adjusted Operating profit 26.5 22.2 4.3 +19.4% Adjusted Profit before Tax 14.0 9.2 4.8 +51.9% Reported Loss before Tax (15.5) (4.2) (11.3) Adjusted Operating Cash Flow 22.
Slide 7: Income Statement Summary
Income Statement Summary Revenue Growth of 18.0% (+£18.4m) 2014 2013 Movement Movement 3.2% organic (5.2% on a like for like currency basis) £m £m £m % 14.8% Inorganic: Pax, Sweden (Aug 2013) Revenue 120.7 102.3 18.4 18.0 inVENTer, Germany (April 2014) Gross Profit 57.0 46.0 11.0 23.8 Gr
Slide 8: Exceptional Items
Exceptional Items Adjusted Profit before Tax reconciled to Reported Loss before Tax 2014 2013 Movement £m £m £m The following costs are added back in the calculation of Adjusted Profit before Tax: Adjusted Profit before Tax 14.0 9.2 4.8 Exceptional items: Exceptional items (7.8) (2.8) (5.0) Ex
Slide 9: Consolidated Statement of Financial Position, Summary
Consolidated Statement of Financial Position, Summary 2014 2013 £m £m Property, plant and equipment 15.9 10.8 Non Current Assets increased because of the acquisition of Pax and Intangible assets – goodwill 50.1 46.5 inVENTer and because of capital expenditure of £4.5m Intangible assets – others 11
Slide 10: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Net Debt reduced from £172.7m to £42.9m in the year following £m improved Operational Cash Flow and the capital restructuring at the time of listing Opening Net Debt 1st August 2013 (172.7) Operational Cash Flow of £22.8 m represented a cash conversion of Mo
Slide 11: Business update, Strategy and Outlook
Business update, Strategy and Outlook Ronnie George - CEO
Slide 12: Market Sector Review – UK Residential RMI
Market Sector Review – UK Residential RMI 2014 2013 UK Residential RMI % change £m £m Gross Sales 43.4 42.3 2.8% Private RMI Silent and Quiet fans into DIY – Both Manrose and Vent-Axia Development of wider over the counter offer Specialised distribution sales force increased sales of “higher
Slide 13: Market Sector Review – UK Residential New Build
Market Sector Review – UK Residential New Build 2014 2013 UK Residential New Build % change £m £m Gross Sales 15.7 14.2 11.2% UK Residential New Build Growth in centralised systems driven by increasing housing completions, further increase in the penetration of the technology and market share ga
Slide 14: Market Sector Review - Commercial RMI and New build
Market Sector Review - Commercial RMI and New build 2014 2013 UK Commercial % change £m £m Gross Sales1 17.9 17.0 5.2% Commercial RMI and New build Specialist sales team targeting distribution and specification Energy efficiency legislation driving adoption of higher specification products E
Slide 15: Market Sector Review - International
Market Sector Review - International 2014 2013 Nordics % change £m £m Gross Sales1 23.7 10.8 118.7% Acquisition of Pax Focused sales teams Implementation of planned synergies 2014 2013 Germany % change £m £m Gross Sales1 3.5 0 N/A Integration going to plan and new factory opened Introducti
Slide 16: Market Sector Review – OEM (Torin Sifan)
Market Sector Review – OEM (Torin Sifan) 2014 2013 OEM (Torin-Sifan) % change £m £m Revenue 19.4 20.0 -2.9% Boiler spares – difficult market environment due to mild winter Investment in new 3 phase (i.e. quieter) EC/DC1 motorised impellor New factory commissioned 1st September 2014 Energy ef
Slide 17: Strategy
Strategy 1 Organic growth through our core markets 2 Growth through a disciplined and value-adding acquisition strategy 3 Develop Torin-Sifan’s range and build customer preference Page 16
Slide 18: Organic Growth
Organic Growth In our core markets, we will continue to benefit from a favourable regulatory backdrop Focus on reducing carbon emissions from buildings (building regulations and Energy Related Products directive) Need for improving energy efficiency (regulatory and consumer choice) Emerging
Slide 19: Acquisition Strategy
Acquisition Strategy The ventilation market in Europe remains highly fragmented Continue to explore selective acquisition opportunities to increase our international footprint Focus primarily on opportunities within Europe where there are clear synergies (cost reduction, cross selling or acces
Slide 20: OEM (Torin Sifan)
OEM (Torin Sifan) Significant investment has been made in developing a new range of high performing air movement products that meet the energy efficient demands placed on this industry Acquired and equipped a new 25,000 square feet manufacturing facility in Swindon The European launch of our E
Slide 21: Summary and Outlook
Summary and Outlook Current financial year started well; in line with management expectations Confident that the company will continue to deliver profitable growth Full year benefit of InVENTer and Pax will contribute to sales and profit growth in 2015. Expect to see continued strong demand
Slide 22: Appendices
@volution group Appendices P\X eS aetorin-sifan einfachgenia'liften .-«-« The Partner of Choice VenI-Axia.
Slide 23: 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