Solid State Plc · LSE:SOLI
Solid State — Investor Presentation (July 2024)
48 slides from Solid State's investor presentation, July 2024
Slide 1: Investor Presentation
INVESTOR ks SF 2 PRESENTATION 2024. \ \mdy TECHNOLOGY FOR DEMANDING APPLICATIONS
Slide 2: Agenda
Agenda Areas of focus Business overview & investment case Financial highlights Components division review Systems division review Strategic achievements and M&A Prospects & Outlook Q&A 2
Slide 3: Senior leadership team
Senior leadership team Gary Marsh Peter James Matthew Richards John Macmichael Chief Financial Officer Director Director Chief Executive Officer Sharon Dhillon Alastair Wallace Lyenka Logan Jon Baxter Lyn Davidson Senior M&A and Investor Relations analyst MD of Steatite Systems Group HR Director Exe
Slide 4: Who we are
Who we are Solid State Group: “Turning ideas into plans and plans into products.” Systems Components Power Communications Computing Franchise Own Brand Value Added Services
Slide 5: A profitable & resilient business model
A profitable & resilient Cross selling Cross selling business model and customer referral create repeat revenue and customer referral create repeat revenue streams streams Group Understand the vision Board and evolution of the tech requirements Executive Board Repeat the design cycle, driving next C
Slide 6: Our customers
(ay Our customers siemens, PHILIPS ocado Healthineers’:" Healthcare Raytheon 6 Ministry of Defence MBDA Beene = ‘€ LEONARDO AVERY Weath " e ‘ babcock’ A DENNISON ertord © wweascnwarz Y Honeywell SE ater a y QD eoww ISN 2 specs conpaty QinetiQ c . AIRBUS Sonardyne — SOUND IN DEPTH Rccro RENISHAWé: 3M
Slide 7: Financial highlights
Financial highlights Revenue (million) Adjusted profit before tax (million) Adjusted fully diluted EPS (pence) £163.3m £15.6m 99.8p 2024 163.3m 2024 15.6m 2024 99.8p 2023 126.5m 2023 10.8m 2023 80.7p 2022 85.0m 2022 7.2m 2022 70.6p 2021 66.3m 2021 5.4m 2021 54.7p 2020 67.4.0m 2020 4.7m 2020 46.3p Ju
Slide 8: Operational highlights
Operational highlights Employee retention Gender diversity Lost time incidents Employee numbers Total: 433 Key 2024: 2024: Engineering 92% 2024: 0% Sales & BD Manufacturing F: 29% 35% Support, M&A/Other M: 71% 39% 13% 13% 2023: 2023: 91% 2023: 0% F: 32% M: 68% 8
Slide 9: Why invest in Solid State
Why invest in Solid State Solid State PLC – Record financial performance delivering strong and sustainable growth Delivering on our sustainable growth strategy: 1,800 TSR / shareholder return, Delivering organic growth (5 year cumulative return) 1,600 Complemented by strategic M&A 1,400 Track record
Slide 10: Financial highlights
Financial highlights Financial highlights 11 Revenue bridge 12 Systems bridge 13 Components bridge 14 Adjusted operating profit 15 Balance sheet highlights 16 Net debt bridge 17 Net assets bridge 18
Slide 11: Financial highlights
Financial highlights Summary of Financial highlights A year of strong delivery 31 March 2024 2023 Change Order book – May 24 - £89.2m Orderbook £88.4m £120.1m (26%) Reflects destocking and normalisation Revenue £163.3m £126.5m 29% Double digit revenue growth: Reported operating profit £13.7m £9.4m
Slide 12: Revenue bridge
Revenue bridge 27% organic revenue £M 12
Slide 13: Components revenue
Components revenue 80.0 70.0 60.0 50.0 £M 40.0 30.0 20.0 10.0 - FY21 FY22 FY23 FY24 Revenue 13
Slide 14: Systems revenue
(ay Systems revenue 120.0 100.0 80.0 £M 60.0 40.0 20.0 57.5 FY23 CP FY impact Nato Other organic revenue FX 103.4 FY24 14
Slide 15: Adjusted operating profit
Adjusted operating profit £M 15
Slide 16: Balance sheet highlights
Balance sheet highlights Balance sheet summary Strong balance sheet for future investment £m 2024 2023 Change Non-current assets £48.5m Intangibles 40.1 41.6 (3.6%) Investment offsets depreciation / amortisation PPE and other 8.4 7.0 20% Inventory down 24% Total non-current assets 48.5 48.6
Slide 17: Net debt bridge
(ay Net debt bridge 8.0 60 14.3 40 | § ° _ | § 5 _ | (2.0) (4.0) (2.3) (4.7) (6.0) (8.0) (8.0) (81) (10.0) Cash generated from... Investing Dividend FY23 net debt bridge Taxes paid Financing FY24net debt bridge
Slide 18: Net assets bridge
(ay Net assets bridge 70.0 60.0 ea — 50.0 (2.3) £M 40.0 30.0 20.0 10.0 FY23 Dividend 0.8 SBP (0.7) FX Retained profit 64.6 FY24 18
Slide 19: Components Division Solsta
Components Division Solsta What we do 20 Component applications 21 Value added services 22 Customer partnership 23 Franchise components 24 Own brand components 25 Solving problems 26
Slide 20: Components - what we do
(ay Components - what we do
Slide 21: Component applications
Component applications 21
Slide 22: Components - value added services
Components - value added services 22
Slide 23: Components - customer partnership
Components - customer partnership Global Digital Signage Company Cyber Security consultation Zero touch commissioning Just in time deployment Major Military Customer Sourced obsolete product Full testing and Screening carried out Long term storage - 8+ years Major UK Utility Company Infrastructure m
Slide 24: Franchise components
Franchise components State-of-the-art Technology Manufacturers. Link up the technology to the application. Turn ideas in to plans and plans into products. 24
Slide 25: Own brand components
Own brand components Ground based Laser Range Finder Air bubble detection in dialysis machines Relays Contactors 25
Slide 26: Solving problems by linking up the industry
Solving problems by linking up the industry 26
Slide 27: Systems Division Steatite & Custom Power
Systems Division Steatite & Custom Power What we do 28 Adding value 29 Our products 30 Integrated systems 31 Larger contract opportunities 32
Slide 28: Systems - what we do
Systems - what we do Demanding applications Engineered Solutions Applied Products 28
Slide 29: Adding value - Our communications solutions
Adding value - Our communications solutions Wave relay – Communications network for emergency services, security and defence 29
Slide 30: Our products are key part of the comms system
Our products are key part of the comms system Own brand – Systems products solving problems 30
Slide 31: Steatite Integrated Systems - Tewkesbury
Steatite Integrated Systems - Tewkesbury Integrated Systems Why Tewksbury? Large production facility with substantial office space. Strong local Defence & Security business presence Good Location and access Jct 9 M5 Rich talent pool – production and engineering skills 31
Slide 32: Access to larger contract opportunities
Access to larger contract opportunities Integrated Systems Contains public sector information licensed under the Open Government License v3.0 32
Slide 33: Strategy review
Strategy review Strategy achievements 34 M&A strategy 35
Slide 34: Strategy achievements
Strategy achievements Investment & development of talent Third NED appointed to the Group Four senior females recruited within last 18 months Investment and Broaden development complementary Investment of leadership team in Power business of talent products/ technology profile Broaden complementary
Slide 35: M&A strategy
M&A strategy Jun 2016 Why & how we do M&A M&A selection criteria: Potential areas for M&A: Capital allocation decision between Alignment with 4 pillars of our strategy Pipeline targeting- own brand components organic investment vs M&A investment Culture, people & capabilities are critical Delivering
Slide 36: Prospects & Outlook
Prospects & Outlook Prospects & Outlook 37
Slide 37: Prospects & Outlook
Prospects & Outlook Supply chain & M&A opportunities Diversifying supply chains - China + 1 Invest in developing the sales channel Broadening the Group’s own brand portfolio Organic growth opportunities Re-organised US Components business positioned for growth ISO13485 accreditation at Weymouth faci
Slide 38: Disclaimer
Disclaimer This content of information contained in these slides and the accompanying presentation comprises an institutional presentation (the Presentation) which has been prepared by and is the sole responsibility of Solid State plc (the Company). The content of this Presentation has not been appr
Slide 39: Questions
Questions
Slide 40: Appendices
Appendices
Slide 41: Acquisition timeline
Acquisition timeline 1971 1996 2002 2005 2007 Steatite – Computing, Batteries & Wordsworth – RZ Pressure – London Stock Battery Power, Systems Solid State PLC Systems Computing, Systems Exchange Company founded Company listed £1.3M £1.8M £1.8M 2015 2013 2013 2011 2010 Q Par Angus – Ginsbury – Displa
Slide 42: Key shareholders - (3% and over)
Key shareholders - (3% and over) % Holding Charles Stanley & Co 14.41% BGF Investment Management Limited 10.40% Schroders plc 7.82% Mr & Mrs Gordon Comben 6.40% Canaccord Genuity Group Inc 6.30% abrdn plc 6.06% GPIM 4.98% Hargreaves Lansdown Asset Management 4.96% Mrs Barbara Marsh 4.85% A J Bell Se
Slide 43: ESG highlights
ESG highlights We have aligned our ESG goals with the United Nations Sustainable Development Goals. Supporting local Health & Safety Our People Economic growth Sustainable Sustainable Climate change communities innovative sourcing & products products • Supporting local • Access to a wellbeing • Flex
Slide 44: Trusted technology for demanding applications
Trusted technology for demanding applications z Own brand – Systems technology in a box 44
Slide 45: Solutions for the most demanding environments
Solutions for the most demanding environments z Systems solutions being used to solve problems 45
Slide 46: Smart transportation systems
Smart transportation systems z Application example: Unmanned Aerial Vehicle 46
Slide 47: Technology for autonomous systems
Technology for autonomous systems Application example: Unmanned Aerial Vehicle 47
Slide 48: Technology systems for demanding applications
Technology systems for demanding applications Application example: Marine 48