Slide 1: Making amazing happen for a better world
Electrocomponents plc Making amazing happen for a better world Full-year results for the year ended 31 March 2021 2021 Full-year Results 25 May 2021
Slide 2: Safe harbour
Safe harbour This presentation contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and obj
Slide 3: Lindsley Ruth – CEO Introduction
Lindsley Ruth – CEO Introduction 2021 Full-year Results
Slide 4: Our amazing team
Our amazing team Our amazing team has driven > our strong performance Our people have worked > tirelessly and collaboratively Our distribution centre > teams ensured ongoing service We supported our communities > with various initiatives Thank you to all our people > for their hard work and support
Slide 5: Our Destination 2025 strategic framework is delivering
Our Destination 2025 strategic framework is delivering Driving our market Guiding our actions outperformance to deliver future in 2020/21 profitable growth 2021 Full-year Results 5
Slide 6: David Egan – CFO Financial Performance
David Egan – CFO Financial Performance 2021 Full-year Results
Slide 7: Strong market share gains and momentum
Strong market share gains and momentum > Strong performance in 2020/21 with improving momentum into the second half > Resilience of the model proven in the most challenging circumstances > Significant market share gains driven by our differentiated offer and robust balance sheet > Completed three hi
Slide 8: 2020/21 was a year of market share gains and focus on cash
2020/21 was a year of market share gains and focus on cash Market outperformance Robust financial returns Strong cash generation Like-for-like* revenue growth (%) Adjusted* operating profit margin (%) Adjusted* free cash flow (£m) 10.2 11.3 9.4 145.4 1.4 80.9 (7.3) H1 H2 FY 2020/21 2019/20 2020/21 2
Slide 9: Non-financial key performance indicators
Non-financial key performance indicators CO2 emissions Net Promoter Score (NPS) Employee engagement All Accidents tonnes CO2e / £m revenue rolling 12-month MyVoice per 200,000 hours 5.2 55.7 74 54.4 0.69 1.9 1.3 72 0.25 3.3 2 0.44 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 Ene
Slide 10: Our performance demonstrates the resilience of our business
Our performance demonstrates the resilience of our business Income statement Like-for-like* £m 2020/21 2019/20 Change change Like-for-like revenue growth reflects market Revenue 2,002.7 1,953.8 2.5% 1.4% share gains Gross margin 42.7% 43.7% (1.0) pts (1.1) pts Gross margin impacted by inventory
Slide 11: All regions saw like-for-like revenue growth, with a strong recovery in H2
All regions saw like-for-like revenue growth, with a strong recovery in H2 Regional performance EMEA revenue growth as we gained share Asia Central – Adjusted operating profit impacted by 2020/21, £m EMEA Americas Pacific costs Group PPE inventory provisions and £13 million of extra COVID-19 and B
Slide 12: Actions to conserve cash strengthened our cash flow
Actions to conserve cash strengthened our cash flow Cash flow £m 2020/21 2019/20 EBITDA 223.7 256.2 Working capital to revenue of 21.8% Add back impairments and (profit) / loss on disposal of non-current assets (2019/20: 23.9%) 0.3 0.1 – Strong focus on receivables Movement in working capital (1.5
Slide 13: We acquired three strategic businesses during 2020/21
We acquired three strategic businesses during 2020/21 Offers US coverage for IESA Expands product and service expertise to PPE Extends Synovos EMEA coverage Adds food manufacturing vertical Expands Allied range using Synovos’s suppliers Cross-sell product to existing industrial customers
Slide 14: We optimised capital allocation
We optimised capital allocation Net debt (£m) Adjusted earnings dividend cover 189.8 2.4x 2.0x 122.0 Net debt fell to £122 million £300 million 3-year revolving credit facility 2019/20 2020/21 2019/20 2020/21 Paid final dividend for 2019/20 and resumed progressive dividend policy £180 millio
Slide 15: Current trading is strong against COVID-19 comparatives
Current trading is strong against COVID-19 comparatives > The first seven weeks of 2021/22 has delivered very strong growth > Comparatives on one-year (COVID-19) or two-year provide good tail-winds On a two-year CAGR view, like-for-like revenue growth remains robust and in line with annualised > lik
Slide 16: Lindsley Ruth – CEO Strategic Review
Lindsley Ruth – CEO Strategic Review 2021 Full-year Results
Slide 17: Destination 2025 – The needle movers, leverage and acquisitions
Destination 2025 – The needle movers, leverage and acquisitions 1 2 3 Needle movers drive Be amazing at the Strategic acquisitions top line and market basics to drive can accelerate share growth operational leverage growth Growing product and Improve product buy-in Strategically and service so
Slide 18: Needle movers drive top line and market share growth
1 Needle movers drive top line and market share growth Product and service solutions proposition Distribution sector revenue per day growth indexed to Mar-15 150 Drives tighter customer relationships 145 Delivers sustainable cost efficiencies to customers 140 Strong customer experience 131 130 1
Slide 19: Greater service solution capability
We are competing smarter through our product and service solutions Our specialist expertise makes us a trusted partner Greater service solution capability Service solutions move us beyond Synovos™ pure product distribution IESA Sync MyMRO – Improves customer loyalty RS eProcurement – Increases lif
Slide 20: We are unlocking opportunities to improve customer experience
We are unlocking opportunities to improve customer experience Customers increasingly What we have Our journey and opportunity expect a fast, personal, Leading omni-channel MRO operator Recruited experts for best customer experience frictionless and omni- channel experience Data-rich: >14m websit
Slide 21: We are expanding our specialist product offer
We are expanding our specialist product offer Customers increasingly want a Over 650,000 stocked industrial and electronic Over three million one-stop shop and security of supply unstocked products products Unrivalled specialist product choice – Widest product range, supplier depth Broader and wid
Slide 22: We are developing our strong own-brand offer
We are developing our strong own-brand offer Own-brand offers customers RS PRO like-for-like growth of 9.7% significantly outperformed the Group quality, choice and value Increased new product development across a wide range of industrial and electronic Product launch marketing campaigns product
Slide 23: Be amazing at the basics to drive operational leverage
2 Be amazing at the basics to drive operational leverage > Improve product buy-in cost > Greater analysis of cost to serve > Leverage current DC capacity > Utilise data to be insight-led > Share business service expertise Group-wide > Move supply chain closer to customer 2021 Full-year Results 23
Slide 24: We are improving sustainability throughout the supply chain
We are improving sustainability throughout the supply chain Outperformance underpinned by our supply Our investment is driving efficiencies chain strategy of multiple DCs regionally located closer to the customer > Significantly lower carbon emissions for all Agility was key given major disruption
Slide 25: Strategic acquisitions to accelerate growth
3 Strategic acquisitions to accelerate growth Active pipeline of acquisition opportunities High Priority inorganic targets with strong strategic and financial rationale and cultural fit in three priority areas Product and service solutions: providing innovative > solutions and reinforcing our differ
Slide 26: Destination 2025 will make amazing happen for a better world
Full ESG presentation is available on our investors website Destination 2025 will make amazing happen for a better world We are inspiring a more sustainable world through education & innovative solutions that improve lives Four environmental, social and governance (ESG) pillars aligned with Destinat
Slide 27: ESG is integrated in all we do
ESG is integrated in all we do Collating supply chains to Providing PPE protection to restructure more efficient deliveries employees and communities New German DC makes use New DC extension reduces waste of green energy through and lowers energy usage solar panels on roof Providing energy efficient
Slide 28: Summary
Summary 2021 Full-year Results
Slide 29: Making amazing happen for a better world
Making amazing happen for a better world > Plenty of growth opportunities Less than 1% share in a £400 billion global market Product and service solutions, customer experience and service, wide > We have a differentiated offer product offer with own-brand > Well invested operating model Leveraging s
Slide 30: Q&A
Q&A 2021 Full-year Results
Slide 31: Appendix
Appendix 2021 Full-year Results
Slide 32: Who we are
Who we are Working with over Circa Digital market leader 2,500 60,000 63% suppliers for our stocked parcels shipped of Group revenue through product range daily digital channels Over Operations in Over 650,000 32 1,200,000 stocked and 3 million unstocked countries customers high-quality industrial a
Slide 33: Five key reasons to invest
Five key reasons to invest 1 2 3 4 5 Uniquely positioned Market share gains Leveraging our lean Strong cash conversion ESG integrated within an attractive driven by being first and scalable operating and attractive returns throughout, driving market choice model higher ratings <1% share c. 25% uplif
Slide 34: A significant market opportunity
A significant market opportunity Our market <1% our current market We serve a large, c. £400bn share c. $608bn fragmented and digitally Global MRO and HSE c. 30% Global MRO market4 immature global market market1 c. $1tn of the global We estimate that the US B2B e-commerce market global MRO and H
Slide 35: Gaining share across our markets
Gaining share across our markets UK France Germany Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Italy Iberia Americas Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Jan
Slide 36: Specialist product breadth, depth and expertise
Specialist product breadth, depth and expertise The breadth and depth of our Providing product and …across a broad range of product offering continues to set us apart from our more transactional service solutions… industries competition – We are expanding our range into new and innovative products
Slide 37: Four ESG pillars
Four ESG pillars Environment Customers and suppliers People and health & safety Community Our focus Proactively address our environmental Work with our suppliers to improve the Build a safe, inclusive and dynamic Enable education and innovation that impacts to tackle climate change and sustainabilit
Slide 38: We are improving operational efficiency and reducing waste
We are improving operational efficiency and reducing waste Fort Worth, US Bad Hersfeld, Germany Additional 18,900 square metres, doubling capacity Additional 18,500 square metres, doubling capacity >800k products, >2x historic levels >450k products, >3x greater than historic levels Latest
Slide 39: Basis of preparation
Basis of preparation Unless otherwise stated Figures have been prepared using International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union Adjusted excludes amortisation of intangible assets arising on acquisition of businesses,
Slide 40: Guidance points
Guidance points Trading days Foreign exchange > Expect around £9 million positive impact on revenue Currency movements increased 2020/21 adjusted from additional trading days in 2021/22 profit before tax by £1.5 million RISE If May rates persist we would expect around a £10.7 million adverse i
Slide 41: We are simplifying our organisation to drive a lean and scalable model
We are simplifying our organisation to drive a lean and scalable model Like-for-like adjusted operating costs grew by 4.1%. Excluding COVID-19 related costs which were £16 million higher than 2019/20, £2 million Brexit costs and £8 million post-acquisition operating costs, growth c.1% reflecting i
Slide 42: Key performance indicators
Key performance indicators KPI changes 2020/21 2019/20 Change Financial We have six financial and seven Like-for-like revenue growth 1.4% 2.2% non-financial KPIs with which we use to Adjusted operating profit conversion 22.0% 25.8% (3.8) pts measure progress against our strategy Adjusted operating
Slide 43: Net debt fell to £122.0m
Net debt fell to £122.0m Movements in net debt (£m) During the last year of uncertainty, our cash generative business has 400 enabled us to maintain a strong financial position 350 In December 2020 we completed 300 a £180m equity placing to fund acquisitions and retain financial 250 flexibility