Slide 1: Acquisition of 3M's Ballistic-Protection Business
ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS Transforming our future
Slide 2: Acquisition highlights
Acquisition highlights Milestone transaction; in line with our strategy and acquisition criteria Acquisition of 3M’s Ballistic-Protection business A leader in next generation ballistic helmets and body armour with multi-year contract portfolio with U.S. DOD Acquisition subject to U.S. regulatory app
Slide 3: Agenda
Agenda Strategic Introduction Financial Summary Background to the Overview and Q&A Business ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 3 Transforming our future
Slide 4: Strategic Background
Strategic Background ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 4 Transforming our future
Slide 5: Clear alignment with our strategy
Clear alignment with our strategy What does the Business bring to Avon Protection? • Respected brand and product range • A leader in critical protection equipment • Strong and capable management team • Long standing relationship with U.S. DOD • Established multi-year contract portfolio • Additional,
Slide 6: Clear alignment with our strategy
Clear alignment with our strategy Strategic opportunities for the Group • Positions Avon at forefront of technology evolution • Much broader technology and product portfolio • Significant cross-selling opportunity • Deepens the relationship with the U.S. DOD • Diversifies Avon Protection’s contract
Slide 7: Introduction to the Business
Introduction to the Business ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 7 Transforming our future
Slide 8: Business Overview
Product Customer Helmets U.S. Military $85.4m Body Armour $85.4m Rest of World Military 2018 Revenue 2018 Revenue Flat Armour Law Enforcement Business Overview Operations Highlights • Proprietary technology 3 Salem, NH • Established contract platforms SITES Lexington, KY • Well invested manufacturin
Slide 9: Background and Market opportunity
Background Market opportunity • A leader in next generation ballistic • Expanded product portfolio meets armour broader operational needs of core customers • Established positions on Soldier Protection System with multi-year • Deepening relationship with U.S. DOD contracts for next generation ballis
Slide 10: Product Range
Product Range Helmets Body Armour Flat Armour Ballistic helmets to protect against Lightweight armour plates for Protection for seating, wing panels, small-arms projectiles and bomb multi-hit protection cockpits, engines, and further parts, fragmentation for helicopters and fixed wing aircraft A lea
Slide 11: Combined product portfolio
Combined product portfolio Respirators Powered Air Supplied Air Expanded portfolio of personal protection products Helmets Body Armour ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 11 Transforming our future
Slide 12: Financial Overview
Financial Overview ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 12 Transforming our future
Slide 13: Financial acquisition criteria met
Financial acquisition criteria met EPS enhancing Organic revenue growth, margins and cash conversion in line with our strategic objectives Returns exceeding the Group’s WACC in first full year Retaining a strong post-acquisition financial position ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 13
Slide 14: Financial Information
Financial Information • For the year ended 31 December 2018 • Revenue - $85.4m • EBITDA - $10.8m • Profit before tax - $3.3m • Gross assets - $45.2m ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 14 Transforming our future
Slide 15: Deal Structure
Deal Structure • Initial cash consideration of $91m • Contingent consideration of up to $25m depending on outcome of pending tenders • Funded from existing cash and an increased bank facility of $85m • Post-acquisition net debt to EBITDA is not expected to exceed 1.0x • Expected to complete in the f
Slide 16: Summary
Summary ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 16 Transforming our future
Slide 17: A transformational acquisition
A transformational acquisition Further progress in the execution of our strategy Organic growth opportunities through broadening of ROW Military and Law Enforcement customer base Significantly enhances our technology and personal protection product offering Enhanced research and development capabili
Slide 18: Questions & Answers
Questions & Answers ACQUISITION OF 3M’S BALLISTIC-PROTECTION BUSINESS 18 Transforming our future