Trellidor Holdings Ltd. · JSE:TRL
Trellidor — FY2024 Earnings Presentation
25 slides from Trellidor's earnings presentation, Sep 27, 2024
Slide 1: Full Year Results Presentation
Trellidor Holdings Limited 30 June 2024 Full Year Results Presentation 27 September 2024 | 14:00 | Hosted by PSG Capital WELCOME We will begin shortly holdings.trellidor.co.za
Slide 2: Summarised Consolidated Annual Financial Statements
TRELLIDOR HOLDINGS LIMITED SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
Slide 3: Operational Review
OPERATIONAL REVIEW TERRY DENNISON Group Chief Executive Officer
Slide 4: Domestic Market Overview
DOMESTIC MARKET OVERVIEW Challenges • The domestic market remains weak, with low levels of disposable income. • Interest rates remain high but have peaked. • Import supply chain lead times have stabilised but remain extended which pressures inventory levels. • Metal prices remain at high levels but
Slide 5: International Market Overview
INTERNATIONAL MARKET OVERVIEW Review • While growth was achieved in our Africa markets, shortages of foreign exchange in certain territories constrained sales in those territories. • The UK has shown significant growth due primarily to contract work received. • The normalised UK market continues to
Slide 6: Salient Features for the Year
SALIENT FEATURES FOR THE YEAR Revenue R 565.8 million (2023: R502.3 million) Headline earnings 36.1 cents per share (2023: 4.2 cents) Cash from R 51.1 million operations (2023: R 20.2 million excl. the Labour Appeal Court Settlement) Net debt R 115.7 million (2023: R 146.7 million)
Slide 7: Challenges Faced
CHALLENGES FACED The Group faced two significant challenges through the period: • Declining revenue in the domestic market. • Elevated opening debt levels as at 30 June 2023, at higher interest rates. In response to the challenges, the following was achieved: • Revenue from international markets inc
Slide 8: Continued Focus
CONTINUED FOCUS In response to continued ongoing domestic macro-economic challenges, strategies remain focused on: • Reducing the current level of net debt. • Further improved working capital management. • Rigorous cost control and cost reduction. • Optimising revenue generation domestically. • Leve
Slide 9: Financial Review
FINANCIAL REVIEW DAMIAN JUDGE Group Chief Financial Officer
Slide 10: Group Financial Performance
GROUP FINANCIAL PERFORMANCE Revenue Operating Profit HEPS R 565.8 million R 62.5 million 36.1 c from R502.3 million from R21.9 million from 4.2 c • Revenue up 12.6% • Strong performance from international divisions, offset by weak demand in South Africa. • Operating profit margin increased to 11.1%
Slide 11: Group Segmental Analysis
GROUP SEGMENTAL ANALYSIS Revenue* Operating Profit* 5% 4% 2% 24% Trellidor Trellidor F24 Taylor F24 Taylor NMC NMC 71% 94% 7% 12% 10% 28% Trellidor Trellidor F23 Taylor F23 Taylor NMC NMC 65% 78% *Before intersegmental eliminations *Before intersegmental eliminations
Slide 12: Group Segmental Analysis
GROUP SEGMENTAL ANALYSIS Product Source Geographical Source 21% 29% RSA Security F24 Decorative 10% F24 Africa World 71% 69% 7% 11% 35% RSA Security F23 Decorative F23 Africa World 65% 82%
Slide 13: Trellidor Financial Performance
TRELLIDOR FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 404.2 million R 57.8 million 14.3% from R 329.6 million from R 15.9 million from 4.8% • Revenue increased by 22.6% • Strong performance from international divisions, offset by weak demand in South Africa. • Operating profit
Slide 14: Taylor Financial Performance
TAYLOR FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 133.2 million R 2.5 million 1.9% from R 140.2 million from R 3.0 million from 2.1% • Revenue decreased 5.0% (F24 H1: 11.5% decrease) • Demand in the market for Taylor’s decorative products was muted. • Reduced demand negatively
Slide 15: NMC Financial Performance
NMC FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 29.7 million R 0.9 million 3.0% from R 33.4 million from R 3.3 million from 6.6% • Revenue decreased 10.2% (F24 H1: 14.9% decrease) • As with Taylor, NMC has also experienced reduced demand through the period impacting margins. •
Slide 16: Group Financial Position
GROUP FINANCIAL POSITION Net debt Net working capital Cash from operations R 115.7 million R 126.4 million R 51.1 million from R 146.7 million from R 117.8 million from R20.2 million • R31.0 million reduction in debt during the year. • Debt restructure complete through F25 Q1 which will reduce capit
Slide 17: Group Balance Sheet
GROUP BALANCE SHEET HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 Mmmm Debt MMM Equity ——Interest cover THE @iXSREDLe9 GROUP
Slide 18: Group Net Working Capital
GROUP NET WORKING CAPITAL 74.6 60.3 63.5 65.4 58.7 66.5 Ee & HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 @@mmitTrade Receivables M@@m™iinventory MllliTradePayables ==—=NWC THE @iXSREDLe9 GROUP
Slide 19: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW 48.3 39.5 20.4 3.5 03 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 Profit aftertax | ™ Cash from operating activities ™ Free cash flow THE @iXSREDLe9 GROUP
Slide 20: Q & A
TERRY DENNISON DAMIAN JUDGE GROUP CEO GROUP CFO Q&A holdings.trellidor.co.za
Slide 21: Appendix
APPENDIX TRELLIDOR } or THE @aXSea}ere9 GROUP
Slide 22: Group Financial Performance
GROUP FINANCIAL PERFORMANCE FY 24 vs HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 FY 23 CAGR Revenue 281.6 518.4 283.5 513.2 273.3 502.3 292.2 565.8 13% 3% Gross profit 125.6 219.4 113.7 197.2 119.5 193.4 120.3 240.3 24% 3% EBITDA 57.8 85.4 46.5 29.3 42.0 41.6 46.7 84.1 102% 0% Pr
Slide 23: Earnings Per Share
EARNINGS PER SHARE FY 24 vs HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 FY 23 Profit attributable to ordinary shareholders 30.4 39.8 24.1 0.4 25.6 3.5 20.4 34.4 883% Adjusted for: Profit on disposal of property, plant and equipment (0.0) 0.0 (0.0) (0.0) - 0.5 - (0.1) Impairment o
Slide 24: Group Financial Position
GROUP FINANCIAL POSITION HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 Non current assets Property, plant and equipment 58.2 57.6 60.5 59.9 63.3 69.0 66.9 64.3 RoU Assets 20.0 15.4 47.1 42.2 40.0 40.6 39.5 35.6 Goodwill and other intangibles 89.6 88.5 94.2 99.4 101.3 105.8 109.0 10
Slide 25: Group Cash Flow
GROUP CASH FLOW HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 FY 2024 EBITDA 57.8 85.4 46.5 29.3 42.0 41.6 46.7 84.1 Movement in non cash items (incl provisions) (1.4) (2.6) 0.3 31.1 0.6 5.9 (4.2) (5.9) Net working capital movement 7.5 13.5 (18.4) (21.3) (25.1) (8.5) 8.7 (11.5) Inventory 6