Slide 1: Full Year Results Presentation
FY2023 Full Year Results Presented by IG DESIGN GROUP Stewart PLC 2021 Gilliland FULL & Paul YEAR Bal 1 RESULTS PRESENTATION 20 June 2023
Slide 2: FY2023 Developments
FY2023 DEVELOPMENTS FY2023 Results Customers, Channels, Product Americas Turnaround • Return to profitability • Relationships sustained • Strong progress and delivery • Margin improvement • Walmart’s Gigaton Award • Continued focus on reducing • FX drag added to Q4 revenue • Tesco Innovation Award c
Slide 3: FY2023 Financial Summary
FY2023 FINANCIAL SUMMARY Revenue ($m) Adjusted PBT(1) ($m) Adjusted EBITDA ($m) Net cash ($m) 35.8 35.7 76.5 73.3 965.1 32.8 873.2 890.3 59.8 52.4 50.5 46.8 48.4 624.3 578.4 38.3 30.2 22.2 9.2 -1.3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 •
Slide 4: Revenue Evolution
REVENUE EVOLUTION • Reported revenue down 8% due to 3 main reasons: • Adverse FX loss principally driven by translation of non-dollar revenues • Exiting unprofitable contracts in DG Americas • Softness in demand in DG Americas: some two-thirds being in Everyday sales (especially Q4), and one- third
Slide 5: Category Performance
CATEGORY PERFORMANCE Revenue by product category FY2023 FY2022 Revenue by season FY2023 FY2022 Celebrations 60% $533.7m 63% $604.1m Christmas 42% $374.7m 40% $390.9m Craft & creative play 17% $150.8m 16% $154.3m Minor seasons 9% $76.5m 7% $65.8m Stationery 5% $45.0m 4% $44.8m Gifting 11% $96.9m 10%
Slide 6: Profit & Loss
PROFIT & LOSS 2023 2022 Reported Adjusting Adjusted Reported Adjusting Adjusted Items Items $m $m $m $m $m $m Revenue 2023 2022 Growth $m $m % Revenue 890.3 - 890.3 965.1 - 965.1 DG Americas 593.0 659.0 (10%) Gross profit 131.7 1.4 133.1 122.2 (2.5) 119.7 DG International 299.6 307.9 (3%) 14.8% 14.9
Slide 7: Adjusted Operating Profit Evolution
ADJUSTED OPERATING PROFIT EVOLUTION • Profit recovery ahead of expectation, with “catch-up” pricing, especially in DG Americas, a key driver • Net cost headwinds were mostly due to energy-price-driven increases in raw materials (e.g. paper) and bought- in product • Strong progress with DG Americas t
Slide 8: Cash Flow
CASH FLOW 2023 2022 Working capital analysis $m $m 2023 2022 Adjusted EBITDA 48.4 38.3 $m $m Add back for share based payment charge/(credit) 0.8 (0.8) Receivables 37.0 0.1 Inventory 17.9 (56.9) Movements in working capital 11.2 (31.7) Creditors (43.7) 25.1 Adjusted cash generated from operations 60
Slide 9: New Financing Arrangements
NEW FINANCING ARRANGEMENTS Previous Facilities – to March 2024 Revised Facilities – to June 2026 Facilities: Facilities: ABL $125m Fixed limit RCF $90m UK Overdraft £8.5m (c$10.6m) (a) Variable limit RCF £92m (max) Hong Kong Receivables $18m (max) Facility size $34m - $130m Based on receivables avai
Slide 10: DG Americas Update
DG AMERICAS UPDATE Commercial • 10% revenue decline, despite some “catch-up” pricing in 2 waves • Decline results from: • strategic decision to exit unprofitable contracts, especially with “value” accounts, mostly in Seasonal business, especially in Celebrations • volume softness, especially in Q4 E
Slide 11: DG International Update
DG INTERNATIONAL UPDATE Commercial • 3% revenue decline at reported rates due to adverse FX, as 10% increase in constant currency • All businesses grew over the full-year, with especially strong growth in continental Europe • Q4 softness experienced in DG UK Everyday, and to a lesser degree in DG Au
Slide 12: Strengthening the Senior Team
STRENGTHENING THE SENIOR TEAM Erik Sjogren was appointed DG Americas Steve Linville joined DG Americas as CFO Rohan Cummings joins as Group CFO in CEO in April 2023, having joined in in April 2023. July 2023. January 2023. Experience: Experience: Experience: Steve joined from Newell Brands, where Ro
Slide 13: Setting a New Strategy
SETTING A NEW STRATEGY • Last year’s pivot to a 5-point focus on: – reducing complexity and better leveraging expertise and scale, and improving mix – improving margins – a more resilient supply chain – lowering working capital levels, and – strong leadership and management teams at all levels of th
Slide 14: The New Strategy
THE NEW STRATEGY 14 14. IG DESIGN GROUP PLC 2023 FULL YEAR RESULTS PRESENTATION
Slide 15: Strategic Priorities
STRATEGIC PRIORITIES Strategic Adaptive Dependable Strong Collaborative Informed Informed • A longer-term • A more consumer • De-risking our • A well-invested, • Leverage the • Underpinning our perspective with and buyer-focused categories for our low cost, flexible complete range of creative work a
Slide 16: Summary and Outlook
SUMMARY AND OUTLOOK Summary • FY2023 saw return to profitability, ahead of expectation, helped by focus on turnaround initiatives, especially in DG Americas • Despite the challenging economic backdrop our key customer relationships hold • Strong sales in Europe, with continued challenges in the US,
Slide 17: Appendix
APPENDIX 17. IG DESIGN GROUP PLC 2023 FULL YEAR RESULTS PRESENTATION
Slide 18: Largest Shareholders
LARGEST SHAREHOLDERS* Hedlund Family Canaccord WM Octopus Fidelity 23.39% 14.64% 11.39% 9.40% Hauck & Rowan Dartington Close Brothers Schroder IM Aufhaeuser Bank 5.96% 2.42% 2.12% 2.55% *Information taken from Equiniti Share Register Analysis 31 May 2023 18. IG DESIGN GROUP PLC 2023 FULL YEAR RESULT
Slide 19: Our Strengths
OUR STRENGTHS Relationships - with the biggest global retailers • Consistently serving household names through recent global challenges, and now the “cost of living crisis” • Continued demand for our products • Top 20 customers: 68% of revenues, at $587m • Walmart ‘Giga-Guru’ status for carbon reduc