Slide 1: Audited Final Results for the Year Ended 30 June 2017
TRELLIDOR HOLDINGS LIMITED AUDITED FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017
Slide 2: Group Highlights
GROUP HIGHLIGHTS 68% Revenue 43% Core EBITDA 27% Diluted Core Headline earnings per share – 66.0c 23% Final dividend declared – 19.5 cents per share Full year dividend of 30.0 cents Slide 2
Slide 3: Group Growth Strategies
GROUP GROWTH STRATEGIES Acquisitive growth – concluded acquisition of Taylor • Period of bedding down • Further acquisitions targeted from FY19 Diversified product offering • Trellidor Security Shutter launched in FY17 • Aluminium Retractable version launched Sept 2017 • LPCB level 3 product dev
Slide 4: Group Overview
GROUP OVERVIEW Trellidor Group now consists of Trellidor and Taylor Trellidor • Trellidor is the market leading manufacturer of custom-made barrier security products • Distribution through dedicated and skilled owner operated franchisees in South Africa and throughout Africa • Further representation
Slide 5: Group Overview - Taylor
GROUP OVERVIEW Taylor • Acquisition of Taylor Blinds and Shutters and NMC South Africa “Taylor” business effective 7 July 2016 diversifies revenue • Taylor is a major manufacturer and distributor of a range of custom-made blinds, and a range of decorative and security shutters • Strong distribution
Slide 6: New Product – TA600 and LPCB SR3
NEW PRODUCT – TA600 and LPCB SR3 Substantive in-house developed product Slide 6
Slide 7: Taylor/NMC
THE ULTIMATE CRIME BARRIER
Slide 8: Group Financial Overview
GROUP FINANCIAL OVERVIEW Slide 8
Slide 9: Group Financial Performance
GROUP FINANCIAL PERFORMANCE Group financial performance (R'm) FY 2015 FY 2016 FY 2017 FY 17 vs FY 16 Revenue 293.8 313.4 525.4 68% Gross Profit 148.9 157.3 250.5 59% Core EBITDA 72.8 83.2 119.1 43% EBITDA 72.8 81.5 113.9 40% Profit after tax 45.5 54.2 66.0 22% Dividends paid 43.5 20.0 28.5 42% Core
Slide 10: Group Financial Performance - Revenue
GROUP FINANCIAL PERFORMANCE • The inclusion of Taylor for the Revenue first time boosts full year turnover by 68% 525.4 • Tough trading conditions Taylor Contribution prevailed through the year for 313.4 the Trellidor Group 266.3 295.5 293.8 • Improved trading in agricultural and mining areas was ac
Slide 11: Group Financial Performance - Core EBITDA
GROUP FINANCIAL PERFORMANCE • The inclusion of Taylor boosts EBITDA Core EBITDA by 40% and Core EBITDA by 43% • Lower volumes in the tough economic conditions hurt margins H1 • Imported input costs improved relatively in H2 but this was partially offset by higher steel prices • Forex losses of R3.0m
Slide 12: Group Financial Performance - Core HEPS
GROUP FINANCIAL PERFORMANCE Core HEPS (R'm) FY 2015 FY 2016 FY 2017 FY 17 vs FY 16 Profit attributable to ordinary shareholders 45.4 53.7 64.3 20% Adjusted for: Profit on disposal of property, plant and equipment - (0.5) (0.1) Headline earnings 45.4 53.2 64.2 21% Adjusted for: Amortisation of custom
Slide 13: Balance Sheet
GROUP BALANCE SHEET • Debt/EBITDA ratio 0.9x Invested capital and interest cover • New and acquisition debt (FNB) 5 yr amortising loans of R90.0m at prime less 0.5% raised in July 2017 • Gearing ratio is 55% (excludes contingent consideration of R30 million) – down from 66% at half year Ratios FY 20
Slide 14: Net Working Capital
GROUP NET WORKING CAPITAL Net working capital (R’m) • Working capital investment has increased mainly due to acquisition of Taylor • Accounts receivable are in line with trading – while aging has deteriorated there are no significant concerns on recoverability • Seasonal inventory investment Net inv
Slide 15: Segments
TRELLIDGR ) THE ULTIMATE CRIME BARRIER SEGMENTS
Slide 16: Sales Analysis - Trellidor Division
SALES ANALYSIS - TRELLIDOR DIVISION • H2 revenue in South Africa grew by 7% driven Geographical presence mainly by outlying areas growth of 11% • African economies reliant on oil - remain weak, mainly Nigeria, Angola • Africa sales growth of 4% reflects tough trading in H2. Ghana sales were flat aft
Slide 17: Sales Analysis - Trellidor Division
SALES ANALYSIS - TRELLIDOR DIVISION Product Type • Growth in new product sales of 33%, including the Trellidor Security Shutter launched in July 2016, which accelerated nicely in H2 • Diversified product range spans income groups which mitigates weak middle and upper middle class economy Product Typ
Slide 18: Trading Margin - Trellidor Division
TRADING MARGIN - TRELLIDOR DIVISION • Relatively stable trading margin despite Cost of sales – costs as % of net sales muted sales growth • Super inflationary labour costs continue for H2, mitigated by improved utilisation • New wage increment agreement signed in September 2017 sees lower increment
Slide 19: Sales Analysis – Taylor Division
SALES ANALYSIS – TAYLOR DIVISION • Concentration of sales in the Geographical presence Western and Southern Cape • Branch in Johannesburg • Geographic growth opportunity using proven Trellidor model – Products introduced to Trellidor franchisees in Feb 2017, where appropriate • Tough trading conditi
Slide 20: Sales Analysis – Taylor Division
SALES ANALYSIS – TAYLOR DIVISION • Turnover well spread by product Product type • Constant innovation and development to keep up with trends • Good growth in Roller Blinds and PVC Shutters driven by product enhancements in the year • Custom designed and manufactured Well spread product range – focus
Slide 21: Trading Margin – Taylor Division
TRADING MARGIN – TAYLOR DIVISION • Gross profit margins are slightly down Cost of sales – costs as % of net sales from half year due to lower volumes and the resultant impact on recovery on wages and overheads • Exposure to Rand fluctuations as most materials imported, offset by management of price
Slide 22: Summarised Cash Flow
GROUP SUMMARISED CASH FLOW Group summarised cash flow (R'm) FY 2015 FY 2016 FY 2017 EBITDA 72.8 81.5 113.9 Movement in non cash items (incl provisions) 2.8 (5.9) 4.2 Net working capital movement 2.9 (3.3) (13.4) Inventory 0.9 (9.4) (23.1) Accounts receivable 2.7 (3.7) 3.4 Accounts payable (0.7) 9.8
Slide 23: Summarised Cash Flow - Cash Conversion
GROUP SUMMARISED CASH FLOW Cash conversion (R’m) Remains highly cash generative Slide 23
Slide 24: Summarised Cash Flow
GROUP SUMMARISED CASH FLOW • Strong cash generation in H2 • New Debt servicing ± R23 m per year • Working capital - seasonal investment in imported stock for high season • Final dividend declared of 19.5 cents per share – up 23% on prior year • Full year dividend declared of 30 cents per share up 20
Slide 25: Summarised Balance Sheet
GROUP SUMMARISED BALANCE SHEET Summarised balance sheet (R'm) FY 2015 FY 2016 FY 2016 FY 2017 Non current assets Property, plant and equipment 41.5 42.6 51.5 Goodwill and other intangibles 3.1 4.0 121.1 Deferred Tax 2.7 3.7 3.7 Other financial assets 0.4 0.4 0.3 47.7 50.7 176.6 Current assets Invent
Slide 26: Prospects
PROSPECTS • Driving geographic growth in Taylor • Continued focus in Africa driving sales in recently appointed franchise areas. Service opportunities arising from elsewhere on an ad hoc basis • Improving economic conditions in the outlying regions of South Africa are being experienced with a strong
Slide 27: Thank You
CTRELLID@R ) THE ULTIMATE CRIME BARRIER Thank You