Slide 1: Healthy air, sustainably
Healthy air, sustainably Volution Group plc Full year results to 31 July 2022
Slide 2: Agenda
Agenda Overview Financial Review Business Review Summary Ronnie George Chief Executive Officer Outlook Q&A Andy O’Brien Chief Financial Officer Volution Group plc Full year results to 31 July 2022 1
Slide 3: Overview
Overview Full year results to 31 July 2022 Ida Helin, Växjö, Sweden
Slide 4: A year of strong progress
A year of strong progress Strong growth in revenue, operating profit and EPS Operating margins maintained above target despite inflation headwinds Sustainability progress continues, recycled plastics to 67.2% Heat recovery ventilation now represents 30.1% of Group revenue Strategic investment in cap
Slide 5: Delivering on our strategy
Delivering on our strategy Organic Value-adding growth acquisitions Organic growth • Organic revenue growth 6.6% on a constant currency (cc) basis, supported by price and volume. Value-adding acquisitions • Inorganic growth at 8.5% at cc. Operational • We have completed two acquisitions in the year:
Slide 6: Continuing to drive sustainability
Continuing to drive sustainability Engineer sustainable solutions 2025 70.0 Target Link to business model 2024 67.8 Target Low carbon revenue content in sales 2023 65.6 Target 2022 66.1 2021 62.1 Product 2020 59.0 Improve environmental 2025 90.0 Target performance 2024 83.4 Target Link to business m
Slide 7: We are committed to a net-zero carbon future
We are committed to a net-zero carbon future Impact of Heat recovery technology • Study to assess carbon avoided (partnership with Arup) Avoided emissions through • Products save more energy than they use our products • Carbon emissions avoided >4 times our total emissions (scope 1, 2 and 3) • Heat
Slide 8: Financial Review
Financial Review Full year results to 31 July 2022 Rogerio Brito, Växjö, Sweden
Slide 9: Financial highlights
Financial highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £307.7m £64.9m 21.1% +12.9% +15.1%cc +13.9% +0.2pp 2022 307.7 2022 64.9 2022 21.1 2021 272.6 2021 56.9 2021 20.9 2020 216.6 2020 33.7 2020 15.6 2019 235.7 2019 42.1 2019 17.8 2018 205.7 2018 37.1 2018 18.
Slide 10: Revenue
Revenue Revenue growth 12.9% (+15.1% at cc) Organic revenue growth 4.6% (+6.6% at cc) £23.3m £(6.1)m £307.7m -2.2% £17.9m +8.5% £272.6m 24.3 +6.6% FY21 Organic Inorganic Currency FY22 Volution Group plc Full year results to 31 July 2022 9
Slide 11: Group adjusted operating profit margin up 0.2pp to 21.1%
Group adjusted operating profit margin up 0.2pp to 21.1% £5.0m £(1.6)m £64.9m £4.6m £56.9m FY21 Organic Inorganic Currency FY22 Target 20% Target 20% FY22 21.1% FY22 25.0% Group FY21 20.9% Continental FY21 26.6% FY20 15.6% Europe FY20 20.5% FY22 20.4% FY22 21.8% UK FY21 20.4% Australasia FY21 21.7%
Slide 12: Net debt and cash flow
Net debt and cash flow Cash conversion 76% (2021: 97%) Cash conversion 97%, leverage0.9x Leverage 0.9x, available (2021: liquidity £96.2 million 0.9x) Net debt £85.8m1 (2021: £79.2m) Available liquidity £89.2m (2021: £96.2m) Net debt bridge £50.4m £(2.7)m £(12.2)m £(2.7)m £0.2m £(13.3)m £(1.9)m £(79
Slide 13: Capital allocation – growth focussed capex
Capital allocation – growth focussed capex Key investments in the year Total Group capex • Capacity expansion in ERI (£0.5 million) and Torin-Sifan (£0.5 million) 2022 £6.9m increasing our capacity for heat exchangers and high efficiency EC3 motorised impellers 2021 £4.5m • Investment of £1.0 millio
Slide 14: Capital allocation – value-adding acquisitions
Capital allocation – value-adding acquisitions Two acquisitions in year Ventair (Australia) ROAI >25% £16.0m • Ventair (Australia) the only “new” >3-year qualifying acquisition in FY22 • Leading manufacturer of heat exchangers • Full contingent consideration paid • Modern, high quality production fa
Slide 15: Business Review
Business Review Full year results to 31 July 2022 Emily Shortte (on the left), Julia Muraveinyk, Reading, UK
Slide 16: Operating segments
Operating segments United Kingdom 47++53O % of Volution Group revenue (by segment) 46.7% £143.7m Continental Europe 39++61O % of Volution Group revenue (by segment) 38.5% £118.4m Australasia 15++85O % of Volution Group revenue (by segment) 14.8% £45.6m Volution Group plc Full year results to 31 July
Slide 17: Our growth history
2022 Our growth history Revenue £307.7m Adjusted operating profit £64.9m 13.2% Revenue CAGR 2012 since 2012 Revenue £89.3m Adjusted operating profit £20.2m FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 UK Continental Europe Australasia Volution Group plc Full year results to 31 July 2022 16
Slide 18: Diversified end market exposure
Diversified end market exposure Non-UK revenue 61.6% of Group (2021: 58.7%) 39++1546Q 17+21+15241045Q 39 % of Volution Group plc revenue % of Volution Group plc revenue (by sector) OEM OEM UK Export 3.9% Nordics 4.5% UK Export 17.3% 3.8% UK Continental Commercial Europe 10.1% 38.5% UK 46.7% Central
Slide 19: UK
35.0+O+15.149.9 35.0 46.7% % of Volution Group plc revenue Harpal Purewal, Reading, UK UK • Revenue grew by £7.8 million, a 5.7% increase (6.2% at cc) with adjusted operating profit of Total £29.3 million, an increase of 5.3%. 2022 2021 growth (cc) £m £m % • Adjusted operating margin increased in H2
Slide 20: Continental Europe
35.0+O+15.149.9 35.0 38.5% % of Volution Group plc revenue Marjolein Bossink, Oldenzaal, Netherlands Continental Europe • Revenue growth of 29.4%, with organic growth of 5.0% at cc. Total 2022 2021 growth (cc) • Includes acquisition of ERI (September 2021) and full year effect of the acquisitions fr
Slide 21: Australasia
35.0+O+15.149.9 35.0 14.8% % of Volution Group plc revenue Enda Corcoran, Auckland, New Zealand Australasia • Our Australasia revenue at £45.6 million (2021: £41.2 million), with strong organic Total growth of 10.6% (11.4% at cc). 2022 2021 growth (cc) £m £m % • Adjusted operating margins improved t
Slide 22: Summary and Outlook
Summary and Outlook Full year results to 31 July 2022 Volution site, Reading, UK
Slide 23: Summary
Summary Strong growth in revenue, operating profit and EPS Operating margins maintained above target despite inflation headwinds Sustainability progress continues, recycled plastics to 67.2% Heat recovery ventilation now represents 30.1% of Group revenue Strategic investment in capex and two acquisi
Slide 24: Outlook
Outlook The new financial year has started well, delivering revenue and profit ahead of the same period last year. Whilst we are mindful of macroeconomic challenges, the regulatory, air quality and energy efficiency agenda throughout Europe has never been more supportive. With our excellent levels o
Slide 25: Thank You Q&A
Thank You Q&A Full year results to 31 July 2022 Nathiwan Srithoop, Hälleforsnäs, Sweden
Slide 26: Appendix
Appendix Full year results to 31 July 2022 Maik Anding, Löberschütz, Germany
Slide 27: Financial summary
Financial summary 2022 2021 Movement Revenue (£m) 307.7 272.6 12.9% Revenue (cc) (£m) 313.8 272.6 15.1% Gross margin (%) 47.8 48.4 (0.6)pp Adjusted operating profit (£m)1 64.9 56.9 13.9% Adjusted operating margin (%)1 21.1 20.9 0.2pp Adjusted profit before tax (£m)1 60.9 53.2 14.5% Adjusted EPS (pen
Slide 28: Reconciliation of adjusted to reported profit
Reconciliation of adjusted to reported profit 2022 2021 Movement £m £m £m • Acquisition-related costs: Adjusted profit before tax 60.9 53.2 7.7 Items excluded from adjusted measures: • £0.2 million (2021: £0.9 million) of professional fees in respect of the Acquisition-related costs: acquisitions du
Slide 29: Consolidated statement of financial position summary
Consolidated statement of financial position summary 31 July 2022 31 July 2021 £m £m Non-current assets Property, plant and equipment 28.2 23.9 Right-of-use assets 23.6 24.5 Intangible assets – goodwill 142.7 137.7 Intangible assets – others 87.6 85.4 282.1 271.5 Current assets Inventories 57.2 45.0
Slide 30: Cash flow/net debt
Cash flow/net debt 31 July 2022 31 July 2021 Movement Movement £m £m £m % Adjusted EBITA (A) 66.5 58.3 8.2 14.1% Depreciation 7.4 6.9 0.5 Adjusted EBITDA 73.9 65.2 8.7 13.3% Change in net working capital (17.7) (5.8) (11.9) Share-based payments 1.1 2.0 (0.9) Net investment in fixed assets (6.9) (4.5
Slide 31: Cautionary statement
Cautionary statement This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such