Volex Plc · LSE:VLX

Volex — H1 2015/16 Earnings Presentation

17 slides from Volex's earnings presentation, November 2015

  1. Slide 1: Volex – Interim Results 2015/16

    Volex – Interim Results 2015/16 Geraint Anderson, Interim CEO Daren Morris, CFO November 2015 ©Volex 2015 1

  2. Slide 2: Presentation disclaimer

    This Presenta,on has been prepared by Volex PLC (the “Company”) in connec,on with the publica,on of the Company's preliminary results for the twenty-six weeks to October 4 2015. This Presenta,on does not cons,tute or form part of any offer or invita,on to sell or issue, or any solicita,on of any offer

  3. Slide 3: Summary

    Summary • Consolidated revenue fell 14% (8% like for like basis*) • PC and tablet players faced falling volumes in Volex H1 2015: • Mac volumes increased 6% and iPad volumes fell 19% • PC shipments fell 9% - PC related activities represent 30% of power division revenues • Underlying operating profit

  4. Slide 4: Recent Revenue Progression

    Recent Revenue Progression Quarterly Revenue - $m Average Weekly Revenue - $m/wk 4.3 4.3 4.3 4.2 4.2 4.1 4.0 3.9 3.7 3.4 3.3 2.8 Q1 FY15 Q2 Q3 Q4 Q1 FY16 Q2 Q1 FY15 Q2 Q3 Q4 Q1 FY16 Q2 Other Customers Top 3 Customers Top 3 Customers Other Customers • Revenue fell from Q2PY to Q1CY, and now showing a

  5. Slide 5: H1 Revenue Performance

    H1 Revenue Performance Power – HY2015 to HY2016 Data – HY2015 to HY2016 -17% -10% -9% +3% -17% -24% H1-2014/15 H1-2015/16 H1-2014/15 H1-2015/16 Other Customers Top 3 Customers Other Customers Top 3 Customers • Sales fell from $141 to $117 million • Sales decreased from $80 to $72 • Reduced demand ac

  6. Slide 6: Sales Bridge

    Sales Bridge Revenue declined from $221million to $189million $250 $240 $230 16.3 $220 220.9 $210 2.4 5.0 $200 2.0 5.7 0.1 $190 $180 189.4 $170 $160 $150 FY15-H1 #1 Power #2-6 Power Other Power #1 Data #2 Data Other Data FY16-H1 • Largest falls were with largest customers • The prior period, when ad

  7. Slide 7: Operational Priorities for FY16

    Operational Priorities for FY16 • Continue to, and improve focus on our major customers • Continue to, and improve through our CRM, our sales effectiveness and account management • Continue to, and improve our Divisional execution through process improvement • Continue to, and improve factory perfor

  8. Slide 8: Financial Review

    Financial Review ©Volex 2015 8

  9. Slide 9: Financial Summary

    Financial Summary $m FY14 FY15 H1-15 H1-16 • Sales decline as a result of lower Revenue 400.2 423.4 220.9 189.4 customer demand and delays to new product launches Gross Profit 66.5 70.8 38.0 31.6 - Gross Margin 16.6% 16.7% 17.2% 16.7% • Gross margins slightly lower due to OperaVng Costs (62.0) (62.0)

  10. Slide 10: Exceptional Costs

    Exceptional Costs $m FY14 FY15 H1-15 H1-16 Product Poreolio Realignment - 5.8 5.8 - Restructuring Costs 8.6 5.2 2.0 1.2 Financing 1.6 0.1 0.1 - Provision for Historic Tax Claims 0.8 0.1 0.1 - Movement in Onerous Lease Provisions 0.6 1.1 - 0.1 Other - 0.2 - - ExcepLonal Costs 11.6 12.5 8.0 1.3 • RaVo

  11. Slide 11: Divisional Profits

    Divisional Profits $m FY14 FY15 H1-15 H1-16 Change Revenue - Data 148.0 149.7 79.8 72.0 -9.8% - Power 252.2 273.7 141.1 117.4 -16.8% - Total 400.2 423.4 220.9 189.4 -14.3% Divisional Gross Profit* - Data 33.2 34.2 18.7 16.4 -12.3% - Power 33.2 36.7 19.4 15.2 -21.6% - Total 66.5 70.9 38.1 31.6 -17.1%

  12. Slide 12: Data Division

    Data Division $m FY14 FY15 H1-15 H1-16 Change Revenue 148.0 149.7 79.8 72.0 -9.8% Gross Profit* 33.2 34.2 18.7 16.4 -12.3% Gross Margin* 22.5% 22.8% 23.4% 22.8% OperaVng Costs 23.4 23.0 12.0 10.9 -9.2% OperaLng Profit* 9.9 11.2 6.7 5.5 -17.9% Opera,ng Margin* 6.7% 7.5% 8.4% 7.6% *Underlying measure be

  13. Slide 13: Power Division

    Power Division $m FY14 FY15 H1-15 H1-16 Change Revenue 252.2 273.7 141.1 117.4 -16.8% Gross Profit* 33.2 36.7 19.4 15.2 -21.6% Gross Margin* 13.2% 13.4% 13.7% 12.9% OperaVng Costs 32.2 31.4 16.8 13.8 -17.9% OperaLng Profit* 1.1 5.4 2.6 1.4 -46.2% Opera,ng Margin* 0.4% 2.0% 1.8% 1.2% *Underlying measur

  14. Slide 14: Cash Flow

    Cash Flow $10 $8 $6 $4 1.9 Cash Flow ($m) $2 $0 -$2 -$4 -5.4 -$6 -$8 -$10 FY15 Net Cash Cash Cash uLlised Interest and Capex Other H116 Net generated by non Tax Debt from recurring operaLons items • Increased investment into the business in H1 • Aim for cash neutrality year on year • Plan to refinanc

  15. Slide 15: Balance Sheet

    Balance Sheet $m FY15 H1-FY16 Goodwill & Intangibles 4.3 4.4 Property, Plant and Equipment 35.2 36.4 Other 1.9 2.0 • Increase in inventory driven by Non-current Assets 41.4 42.8 major customer product launch Inventories 43.4 51.6 Trade & other receivables 75.2 76.4 Cash and bank balances 33.7 30.0 •

  16. Slide 16: Outlook

    Outlook • Operational focus – drive revenue growth, overhaul procurement structure and improve efficiency and utilisation of our resources (people and facilities) • Short term volatility expected to continue with our largest customers • Market conditions are soft – China, APAC and Japanese customers

  17. Slide 17: Operational Priorities for FY16

    Operational Priorities for FY16 • Continue to, and improve focus on our major customers • Continue to, and improve through our CRM, our sales effectiveness and account management • Continue to, and improve our Divisional execution through process improvement • Continue to, and improve factory perfor

Volex — H1 2015/16 Earnings Presentation on 6ix