Avon Technologies Plc · LSE:AVON
Avon Technologies — Avon Rubber p.l.c. — H1 2015 Earnings Presentation
30 slides from Avon Technologies's earnings presentation, Apr 29, 2015
Slide 1: Interim Results 2015
2015 Interim Results 29 April 2015 1
Slide 2: The Avon Rubber p.l.c. Team
The Avon Rubber p.l.c. Team Peter Slabbert Andrew Lewis Sarah Matthews- David Evans Chief Executive Group Finance DeMers Chairman Director Group Financial Controller 2 Delivering performance & potential
Slide 3: Group 2015 Interim Key Messages
Group 2015 Interim Key Messages • Strategy continues to deliver solid progress • Long term investments starting to deliver growth and the outlook for the future remains positive • Organisation has capability and confidence to deliver further growth • Balance sheet strength supports further organic a
Slide 4: Group 2015 Interim Highlights
Group 2015 Interim Highlights Revenue Financial highlights 150 • EBITDA increased by 9% to £12.2m against a very strong 100 2014 comparative period £'m H2 50 • Return on sales (EBITDA divided by revenue) improved 1.3% H1 from 18.1% to 19.4% 0 • Diluted earnings per share up 10% to 21.7p 2011 2012 20
Slide 5: Andrew Lewis, Group Finance Director
Andrew Lewis Group Finance Director 5 Delivering performance & potential
Slide 6: Group Income Statement
Group Income Statement 2015 Interim 2014 Interim 2014 Full Year £’m £’m £’m Revenue 2% 62.8 61.5 124.8 EBITDA 9% 12.2 11.1 22.9 Depreciation and amortisation (3.7) (2.9) (5.9) Operating profit before amortisation of acquired intangibles, exceptional items and 4% defined benefit pension 8.5 8.2 17.0
Slide 7: Protection & Defence
Protection & Defence Financials Revenue £’m 2015 2014 2014 Interim Interim Full Year £’m £’m £’m Revenue 1% 45.3 45.6 92.8 Adjusted EBITDA 1% 9.4 9.2 18.5 Adjusted operating profit 6% 6.4 6.8 13.6 Operating Profit £’m Performance drivers Delivered 112,000 DOD mask systems as bias moved from non-DO
Slide 8: Protection & Defence Market
Protection & Defence Market 2015 H1 2014 H1 2014 FY £45.3m £92.8m DOD EMEA/NA NA FIRE AEF DOD SPARES Increase in DOD revenue in line with expectations as first half of 2014 included delivery of 52,000 non-DOD masks No single game-changing non-DOD order in H1 2015, solid base of sales, with oppor
Slide 9: DOD Contract Summary
DOD Contract Summary Mask Systems Sole Source Contract Vehicle Mask Systems (thousands) Total Service Requirement Delivered Orders Filter Spares 9 Delivering performance & potential
Slide 10: Dairy
Dairy Financials Revenue£’m Revenue £’m 2015 2014 2014 Interim Interim Full Year £’m £’m £’m Revenue 10% 17.5 15.9 32.0 EBITDA 22% 3.9 3.2 6.6 Operating Profit 20% 3.3 2.7 5.7 Operating profit £’m Performance drivers Performance Performancedrivers drivers Excellent growth in all markets, supplemen
Slide 11: Dairy Market
Dairy Market Our revenue split – geography Our revenue split – brand EU 25% NA 71% Market share Cluster Exchange growth EU 3% 11 Delivering performance & potential
Slide 12: Impact of US $ translation – slight tailwind
Impact of US $ translation – slight tailwind Group Protection & Defence NOTE - 2014 restated at 2015 rates represents a restatement for translation only 2014 2014 Constant 2015 restated at 2014 Constant 2015 restated at 2014 currency Interim 2015 rates Interim currency Interim 2015 rates Interim mov
Slide 13: Cashflow
Cashflow 2015 Interim 2014 Interim 2014 Full Year £’m £’m £’m Cash flows from operating activities Cash generated before the impact of exceptional items 11.8 11.3 26.5 Cash impact of exceptional items (0.7) - (1.0) Cash generated from operations 1 3 8 % 11.1 11.3 25.5 O P E R AT I N G Tax P R O F I
Slide 14: Summary Balance Sheet
Summary Balance Sheet 2015 Interim 2014 Interim 2014 Full Year £’m £’m £’m Intangible assets 19.0 16.3 17.2 Property, plant and equipment 20.3 19.8 19.6 Current assets 32.3 31.8 32.0 Current liabilities (26.6) (23.2) (26.4) Non-current liabilities (4.0) (5.1) (4.3) 41.0 39.6 38.1 Net funds/(debt) 7.
Slide 15: UK Retirement Benefit Scheme IAS19R 2015
UK Retirement Benefit Scheme IAS19R 2015 Accounting deficit moved from The triennial actuarial valuation £16.0m at 30 September 2014 to at 31 March 2013 showed that £15.6m at 31 March 2015 as the the scheme was 98.0% funded increase in liabilities resulting and cash contributions have been from the
Slide 16: Peter Slabbert, Chief Executive
Peter Slabbert Chief Executive 16 Delivering performance & potential
Slide 17: Positive progress in all KPIs
Positive progress in all KPIs 17 Delivering performance & potential
Slide 18: Protection & Defence - Strategic Progress
Protection & Defence - Strategic Progress 2015 Strategic Imperative Progress Maximise our position as sole source • Mask systems order book through H1 2016 direct supplier to US DOD and leverage • EEBD Navy contract bid position for further contract wins • MM53 air crew mask development progressing
Slide 19: Protection & Defence Opportunities
Protection & Defence Opportunities Market Environment Growth Drivers • Budgets stable • Personal protection remains a priority DOD • Funding line for JSGPM project still intact • JSAM new programme start ($70m opportunity) • Navy EEBD bid ($140m opportunity) • Reducing federal funding • Market share
Slide 20: Avon Dairy Solutions – Strategic Progress
Avon Dairy Solutions – Strategic Progress 2015 Strategic Imperative Progress Grow in our mature/high market • Further Impulse Air market share gain share US market through wider technical product and service • Cluster Exchange growth of 43% of number of cows from offerings September 2014 • Milkrite
Slide 21: Dairy Opportunities
Dairy Opportunities Market Environment Growth Drivers • Farm profitability stable • Cluster Exchange • Farm consolidations (Mega farms) • Impulse Air US • Full cluster offering • Farm consolidations • Milkrite market share • Quota/subsidy reductions • Impulse Air EUROPE • Cluster Exchange • Eastern
Slide 22: Outlook statement
Outlook statement • The Board remains confident that the Group will continue to deliver organic growth in this financial year in line with current market expectations and that our strong cash generation and balance sheet will allow us to invest in future Our strategy growth opportunities. and the fu
Slide 23: Safe harbour statement
Safe harbour statement Avon Rubber p.l.c. (the ‘Group’) is providing the following cautionary statement. This document contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of the Group. These statements are sometim
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Slide 25: Appendices
) aven Avon Rubber p.l.c. Appendices
Slide 26: Group Worldwide Locations
Group Worldwide Locations 26 Delivering performance & potential
Slide 27: Protection & Defence Products
Protection & Defence Products M50 AUS Rebreather Deltair Air Crew Mask EEBD PAPR 27 Delivering performance & potential
Slide 28: Dairy Products
Dairy Products Cluster Round liner Impulse Air Triangular liner liner 28 Delivering performance & potential
Slide 29: Dairy market
Dairy market The emergence of 3 billion middle-class consumers EU 25% NA 71% Source: OECD / McKinsey. 2011 data point based on UN statistics Market opportunities 29 Delivering performance & potential
Slide 30: Glossary of Terms
Glossary of Terms Term Explanation P&D orders in hand This is measured at sales value Return on sales Earnings before interest, taxation, depreciation, amortisation and exceptional items (EBITDA) divided by revenue Trade working capital to revenue ratio Defined as inventory + trade receivables – pay