Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — Investor Day (February 2021)
29 slides from Ultimate Products's investor day presentation, Feb 16, 2021
Slide 1: UP Global Sourcing Holdings plc Capital Markets Day
UP GLOBAL SOURCING HOLDINGS PLC Capital Markets Day - 16th February 2021 20 21 www.upgs.com
Slide 2: Disclaimer
Disclaimer BELDRAY Revo Digital Always ready to go! This content of information contained in these slides and the any such person as to the accuracy, completeness or fairness of the accompanying presentation comprises an institutional presentation information or opinions contained in this Presentati
Slide 3: Presenters
SALTER Marble Gold On-trend non-stick cookware. Presenters Simon Showman Founder and CEO Andrew Gossage Managing Director Graham Screawn CFO Presenters| UP Global Sourcing Holdings plc 2
Slide 4: Who We Are
KLEENEZE Laundry Collection KLEENEZE Contemporary organisation for every home Who We Are EST. IN EMPLOY SELL TO 1997 250+ 300+ IN MANCHESTER PEOPLE ACROSS RETAILERS ACROSS THE GROUP 37 COUNTRIES • Established in Oldham, Greater Manchester in 1997 • A brands house of consumer goods for the home • Mas
Slide 5: Our History
Our History Ultimate Products is founded Lloyd Development Opening of Intempo brand Beldray by Simon Showman Capital invests in the Guangzhou bought out of brand and Barry Franks the business Showroom administration acquired 1997 2005 2009 2009 2009 Progress Management brand team buy back Ultimate P
Slide 6: Our Business Model
Our Business Model “ Our mission is to create beautiful “ RUSSELL HOBB CrystalTech S products for every home Safe Knives Simon Showman, Founder and CEO We supply well designed, great quality, branded products at a price on or 01 just above the own label price 02 Cosmos SALTER Blender Ju g t G la ss
Slide 7: Our Capabilities and Barriers to Entry
Our Capabilities and Barriers to Entry Developing Product Sourcing Design & Marketing We employ 49 people in our buying team Experienced Buying Teams based in Manchester In-house design & marketing department and they brought 1,000 new SKUs and in Guangzhou. We have 231 suppliers of 29 people coveri
Slide 8: Our Specialisms
Small Domestic Housewares Audio Appliances Our Specialisms Laundry Heatin g and Cooling 7 Our Specialisms | UP Global Sourcing Holdings plc
Slide 9: Strategy
SALTER Opulence Co-ordinated SALTER Collection Opulence Co-ordinated Collection A modern on-trend addition to any kitchen to any kitchen Strategy 01 International 02 Supermarkets 03 Online Channels 04 Discount Retailers Strategy | UP Global Sourcing Holdings plc 88
Slide 10: Our Retail Partners
Our Retail Partners 9 Our Retail Partners | UP Global Sourcing Holdings plc
Slide 11: Our Brands
Our Brands FY20 Revenue By Brand Other brands • Beldray brand acquired in 2009 and own label for £200,000 • Salter brand sold under licence since £18.1 m 2011 with current agreement scheduled £32.8 m for renewal in 2024 Other • Russell Hobbs brand sold under licence key brands since 2011 with curren
Slide 12: Developments in the Business
Developments in the Business 01 A major supplier to supermarkets 02 Online is a major channel in the UK and Europe and growing rapidly Supermarkets Online £’m £’m % Share % Share 03 The business is more international 04 …with a particular focus on Germany International Germany £’m £’m % Share % Shar
Slide 13: Developments in the Business
Developments in the Business 05 We are more diversified between channels 06 We have a more diversified customer base Top 2 Customers Revenue Share FY17 Revenue Share FY20 Revenue Share Discounters Supermarkets Online Multiples Other 07 We are financially stronger Net Bank Debt £’m Facility Headroom
Slide 14: Developments in the Business
Developments in the Business 08 We have more brands 10 We market our brands Europe 09 Our sales are more branded Premier and Key Brands as % of Revenue Premier Brands % % Premier & Key Brands Social Media Influencers PR Amazon AMS 13 Developments in the Business | UP Global Sourcing Holdings plc
Slide 15: Developments in the Consumer Market
Developments in the Consumer Market More time will be Home cooking Cleaning and The increase in spent in the home is here to stay hygiene will remain online is structural compared to An opportunity for a high priority not temporary pre-COVID times Salter, Russell Hobbs, An opportunity We now expect
Slide 16: Income Statement
Income Statement 12M JUL 12M JUL 12M JUL 2018* £’m 2019* £’m 2020 £’m Continued revenue growth during FY20 interrupted by the COVID-19 crisis and the Revenue 87.6 123.3 115.7 closure of non-essential stores Gross Profit 19.6 27.2 26.6 Revenue growth has resumed during FY21 % 22.4 % 22.1 % 23.0 % and
Slide 17: Balance Sheet
Balance Sheet 31 JUL 31 JUL 31 JUL 2018* £’m 2019* £’m 2020 £’m A simple and straightforward balance sheet reflecting the capital light nature of the business, a low level of intangi- Non-current Assets bles and a conservative approach to accounting with product development costs expensed Tangible A
Slide 18: Cash Flow
Cash Flow 12M JUL 12M JUL 12M JUL 2018* £’m 2019* £’m 2020 £’m Movements in working capital are the biggest Net Cash from Operations influence on the group’s cash flow on a year by year basis EBITDA 7.0 10.5 10.6 Other Non-cash items 0.1 0.3 0.6 Revenue growth typically leads to working Working Capi
Slide 19: Ultimate Products in the Community
Ultimate Products in the Community Community | UP Global Sourcing Holdings plc 18
Slide 20: Investment Summary
Investment Summary BELDRAY Climate Dome Full air circulation for the entire room Growth 01 Targeting a market of 500 million consumers across UK and Europe Income 02 A capital light model with a dividend policy of distributing 50% of Profit After Tax Resilience 03 Financial strength combined with an
Slide 21: Questions & Answers
Q A Questions & Answers Question and Answers | UP Global Sourcing Holdings plc 20
Slide 22: Appendices
RUSSELL HOBBS Bakeware Make breakfast for the whole family Appendices Key Brands Beldray Salter Russell Hobbs Progress Kleeneze Board of Directors 21 Appendices | UP Global Sourcing Holdings plc
Slide 23: Our Brands: Beldray
Our Brands 12M JUL 12M JUL 2019 £’m 2020 £’m Revenue Turnover 32.3 32.8 treated with ANTIBAC protection Growth +50.5 % +1.5 % Compound Growth +23.6 % Anti-Bac Bathroom Pet Plus Key Customers Garment Care Floorcare Heating & Cooling Beldray (originally ‘Bradley and Co. Ltd) is our trademark brand, a
Slide 24: Our Brands: Salter
Our Brands 12M JUL 12M JUL 2019 £’m 2020 £’m Revenue Turnover 20.9 25.8 Growth +50.8 % +23.7 % Compound Growth +36.6 % Coordinated Collections Pans Ovenware Key Customers Ovens Dinnerware Baking For over 250 years, Salter has proudly created and manufactured great products to enhance your lifestyle.
Slide 25: Our Brands: Russell Hobbs
Our Brands 12M JUL 12M JUL 2019 £’m 2020 £’m Revenue Turnover 9.4 11.7 Growth +35.5 % +25.3 % Compound Growth +30.3 % Pans Laundry Enamel Key Customers Kitchen Tools Countertop Food Prep Loved by the Great British public for over half a century, Russell Hobbs is a household brand with a strong herit
Slide 26: Our Brands: Progress
Our Brands 12M JUL 12M JUL 2019 £’m 2020 £’m Revenue Turnover 4.1 4.4 Growth +27.6 % +7.7 % Compound Growth +17.2 % Air Fryers Kettles Cookshop Key Customers Taste the World Grills Food Prep Established in 1931 in Burnley, Lancashire, Progress has almost 90 years of heritage as a Northern brand, ren
Slide 27: Our Brands: Kleeneze
Our Brands 12M JUL 12M JUL 2019 £’m 2020 £’m Revenue Turnover 0.2 1.2 Growth - +616.8 % Cleaning Storage Laundry Key Customers Ironing Floorcare Heating and Cooling A brand steeped in history, Kleeneze began in 1923 as a door-to-door distributor of high-quality handmade wire brushes. Since then, the
Slide 28: Board of Directors
Board of Directors Jim McCarthy Simon Showman Andrew Gossage Graham Screawn Alan Rigby Independent Chief Executive Officer Managing Director Chief Financial Officer Senior Independent Non-Executive Chairman Non-Executive Director James has over 40 years’ experience in the Simon began his career work
Slide 29: Board of Directors
Board of Directors Robbie Bell Jill Easterbrook Christine Adshead Barry Franks Independent Independent Independent President Non-Executive Director Non-Executive Director Non-Executive Director (non-statutory director role) Robbie is Chief Financial Officer of Holland Jill Easterbrook was previously
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