Slide 1: 2022 Half Year Results
2022 Half Year Results Presented by Paul Fineman, CEO and Giles Willits, CFO 1 IG DESIGN GROUP PLC 2022 HALF YEAR RESULTS PRESENTATION
Slide 2: 2022 Half Year - Summary
2022 HALF YEAR - SUMMARY Revenue Growth of 11% Cost Inflation and External Supply Chain Challenges • Strong demand driving order book growth • Extreme inflationary pressures across • 25% growth April – July with August – all areas September impacted by supply chain • Significantly lengthened lead ti
Slide 3: Our Business at a Glance
OUR BUSINESS AT A GLANCE • By Season – timing of Christmas revenues delayed through supply chain challenges • By Destination – US sales particularly impacted through port bottlenecks and backlogs • By Source – labour shortages and raw material availability, results in increased balance of H2 manufac
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue ($m) Adjusted profit before tax* ($m) Net cash/(debt) ($m) +11% 434.6 483.9 -34% 30.2 (23.2) 24.9 26.1 (58.8) 309.2 19.9 270.9 218.1 (94.0) 13.8 (106.1) (130.0) H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2018 H1 2019 H1 2020 H1 202
Slide 5: Profit & Loss
PROFIT & LOSS H1 2022 H1 2021 Reported Adjusting Adjusted Reported Adjusting Adjusted Items Items $m $m $m $m $m $m Revenue H1 2022 H1 2021 % $m $m Growth Revenue 483.9 - 483.9 434.6 - 434.6 Americas 347.5 321.6 8 Gross profit 78.6 (0.1) 78.5 83.7 0.9 84.6 International 136.9 115.5 19 Elims / Centra
Slide 6: Cashflow
CASHFLOW Working Capital Analysis H1 2022 H1 2021 H1 2022 H1 2021 $m $m $m $m Receivables (169.7) (169.8) Adjusted EBITDA 39.8 49.7 Inventory (85.8) (42.1) Movements in working capital (152.3) (104.9) Creditors 103.2 107.0 (152.3) (104.9) Adjusted cash used by operations (112.5) (55.2) Adjusting ite
Slide 7: Supply Chain Challenges & Cost Headwinds
SUPPLY CHAIN CHALLENGES & COST HEADWINDS External Headwinds Our Response • Sea freight +500% cost • Broadening network of suppliers • Sea containers with limited availability/long lead times • Accessing major customers capacity • Port bottlenecks in US and closures in China through mutual efforts to
Slide 8: DG Americas Update
DG AMERICAS UPDATE Commercial • Significant delays of shipments in August and September suppress growth rates in H1 with business focus on providing best possible service to customers despite supply chain challenges • Awarded Walmart Supplier of the Year for Seasonal and Celebrations products • Stro
Slide 9: DG International Update
DG INTERNATIONAL UPDATE Commercial • Focus on sustainable product offering with strong sales of Eco-natureTM range in the UK • Awarded Tesco’s Supplier Partner Award for Sustainability • Working with the winning customers in Europe delivers double-digit revenue growth • In Australia, 22% sales growt
Slide 10: FY22 Outlook
FY22 OUTLOOK Overall uncertainty remains:- • Major cost inflation continues across all areas • Labour, materials, transport shortages and delays experienced • Continued impact of Covid-19 expected to increase in short term • Focus on meeting commitments to customers will impact short-term margins Ho
Slide 11: Long-Term Positive Outlook
LONG-TERM POSITIVE OUTLOOK FY23 Mitigation efforts should benefit the business • The extreme challenges in FY22 of unprecedented supply chain and cost inflation headwinds have resulted in changes to commercial terms to de-risk all parties in FY23 • In many cases, order planning and commitments alrea
Slide 12: thedesigngroup.com
IG Design Group plc Howard House Howard Way Interchange Park Newport Pagnell MK16 9PX T +44 (0)1525 887 310 thedesigngroup.com