Slide 1: Results for year ended 31 May 2022
Pinpoint-Invest-Exit Results for year ended 31 May 2022 Steve McQuillan, CEO Stephen King, CFO Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announceme
Slide 2: Financial highlights (continuing operations)
Financial highlights (continuing operations) Group Revenue Gross Profit Margin Adjusted EBITDA £100.4m 34.0% £12.7m 2021: £98.5m 2021: 30.4% 2021: £12.5m Adjusted Diluted EPS Total Dividend Net Cash* 21.8p 4.2p £16.7m 2021: 22.4p 2021: 4.0p 2021: £23.3m * Excluding IFRS16 impact 2
Slide 3: Our divisions and brands
Our divisions and brands Engineered Pumps Process Solutions and Medical and and Motors Rotating Equipment Industrial Imaging Acquired 2004 Acquired 2017 Acquired 2017 Acquired 2018 Acquired 2017 Acquired 2019 Acquired 2012 Acquired 2018 Acquired 2021 Acquired 2019 Acquired 2021 Revenue (£m) Adjusted
Slide 4: Revenue analysis
Revenue analysis By market: By geography: 1% 1% 7% 6% 6% 2% 7% 9% 31% 34% 9% 11% 38% 45% 44% FY22 30% FY21 10% FY22 FY21 11% 28% 28% 23% 19% 4
Slide 5: Compelling Pinpoint-Invest-Exit (PIE) strategy
Compelling Pinpoint-Invest-Exit (PIE) strategy Niche market leadership positions Consistent shareholder returns 5
Slide 6: Our proven strategy in action - Pinpoint
Our proven strategy in action - Pinpoint Strengthening the portfolio • Magnetica - compact helium-free MRI systems • Adaptix – compact 3D X-ray systems • £4.0m now invested in Adaptix shares (11.9% of total) • Initial markets are orthopaedic and veterinary. • Businesses are collaborating on commerci
Slide 7: Our proven strategy in action - Invest
Our proven strategy in action - Invest Investment in facilities Investment in people Investment in technology Booth Metalcraft Hayward Tyler • Completion of green • Completed apprentice training • Motors and pumps for next manufacturing facility in Bolton. school in Chatteris. generation nuclear pow
Slide 8: Our proven strategy in action - Exit
Our proven strategy in action - Exit Building and returning shareholder value PB acquired for c£9m as part of HTG in 2017 • Avingtrans is committed to profitable growth and to business Exit of PB for enterprise value of £35m in March 2021 exits at advantageous valuations. Gross return on original ca
Slide 9: Divisional priorities - EPM
Divisional priorities - EPM ITER construction in France Hayward Tyler and Energy Steel • Markets • Nuclear – on-going life extension focus • Further contract wins in USA “life extension” market • Next Generation nuclear – ITER and TerraPower orders won • Hydrocarbons – energy security driving market
Slide 10: Divisional priorities - PSRE
Divisional priorities - PSRE Metalcraft, Fluid Handling, Ormandy, Booth, Composite Products • Markets • Nuclear decommissioning (Metalcraft, Fluid Handling) • Sellafield – phase 2 of 3M3 box contact won (£70m) • £4.4m Fluid Handling contract win for remote valves Metalcraft 3M3 box manufacture • Def
Slide 11: Divisional priorities - MII
Divisional priorities - MII MRI scanner Magnetica, Scientific Magnetics. Tecmag Minority 12% stake in Adaptix • Medical Imaging • Compact 3 Tesla MRI system progressing to plan • Convergent orthopaedic and veterinary focus • Initial addressable MRI market estimate c£400m • Bigger “pay per scan” oppo
Slide 12: Financial Highlights
MD. Avingtrans Financial Highlights
Slide 13: Income Statement – continuing operations
Income Statement – continuing operations FY22 FY21 £’m £’m Revenue 100.4 98.5 Gross Profit 34.1 29.9 Gross Profit % 34.0% 30.4% Adjusted1 EBITDA 12.7 12.5 Adjusted1 EBITDA % 12.7% 12.7% Adjusted1 Profit before tax 8.2 7.7 Adjusted1 Profit after tax 7.2 7.3 Adjusted2 Diluted EPS (pence) 21.8 22.4 Adj
Slide 14: Divisional results – continuing operations
Divisional results – continuing operations Energy: Energy: Energy: Energy: EPM PSRE Medical Central FY22 EPM PRSE Medical Central FY21 £’m £’m £’m £’m £’m £’m £’m £’m £’m £’m Revenue: OE 14.1 41.7 2.4 - 58.3 15.4 36.7 5.6 - 57.7 AM 39.1 3.0 0.0 - 42.2 36.0 4.6 0.2 - 40.8 Total Revenue 53.2 44.7 2.5
Slide 15: Balance Sheet
Balance Sheet FY22 FY21 £m £m Tangible fixed assets 25.2 25.3 Goodwill 21.4 21.2 Other intangible 15.7 14.5 Unlisted investments 4.0 - Deferred Tax Asset/Pension Surplus 3.2 3.1 Working capital 30.5 21.3 Net Cash 13.3 20.3 Provisions (1.8) (1.7) Derivatives - (0.1) Creditors > 1 year (1.3) (1.3) Def
Slide 16: FY22 Movement in net cash (£m)
FY22 Movement in net cash (£m) Energy divisions 40.0 14.6 (8.1) 35.0 (3.3) 30.0 Central costs (0.6) (0.9) 0.1 (1.7) 25.0 (4.0) 3.1 20.0 (1.0) (1.7) 15.0 20.3 3.4 Medical division 13.3 10.0 Opening net Adjusted Net Working Capex Acquisition of Adjusted Net Working Development Investment in Adjusted I
Slide 17: Dividend growth
Dividend growth 4 dividend of 2.6p 3.5 Proposed final Suspended due to Covid-19 3 2.5 2.4 2.3 2.2 2.1 2 2.0 4.0 1.8 1.5 1.5 1 1.6 1.3 1.4 0.5 1.1 1.2 1.0 0.9 1.0 0.7 0.4 0 - FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Interim Final 17
Slide 18: Tax highlights – future profits protected
Tax highlights – future profits protected • Avingtrans is a responsible corporate tax payer in all countries where we are present • Effective tax rate 13.8% • Tax refund received in the US kept the charge lower than expected. • The Group has tax losses carried forward of approximately £26.8 million
Slide 19: Summary
MD. Avingtrans Summary
Slide 20: Summary
Summary Solid year of progress in challenging market conditions Revitalisations of Hayward Tyler, Energy Steel and Booth remain on plan Order book: robust despite some delays and disruption Significant Nuclear sector contract wins in the UK, USA, and South Korea Sellafield 3M3 box project
Slide 21: Appendix
MD. Avingtrans Appendix
Slide 22: Our values
/ Avingtrans Our values A High Performance Business Integrity Quality Agility We mean what we say and do what we say we Right first time, on time. Our products and We adapt rapidly and cost effectively - in will do, with respect for all concerned services have enduring value to our customers respons
Slide 23: Our locations and employees (27 September 2022)
Our locations and employees (27 September 2022) UK 465 China USA 145 India 74 11 Australia 25 23
Slide 24: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) • Our goal is to ensure sustainability is embedded into our pinpoint-invest-exit business strategy. Our approach to sustainability is aligning to the UN’s Sustainable Development Goals (SDGs). We consider the following to be our priorities: Development of new
Slide 25: Market capitalisation progression (£m)
Market capitalisation progression (£m) Exited JenaTec; Purchased Aerotech & PFW 2013 32 Purchased Maloney 2014 45 Oil Price Shock Purchased RMDG 2015 31 Purchased Rolls Royce pipes; Exited Sigma 2016 50 Returned £19m to shareholders; Purchased SciMag 2017 43 19 Purchased HTG & Ormandy Group assets 2
Slide 26: Blue chip partnerships
Blue chip partnerships /o. Avingtrans HS2 VATTENFALL @ <fpepreNency Q Sellafield Ltd EUREKA Shinhoo AN og Qy -— ini Rapiscan LAING O'ROURKE ee coors 4 ystems = n OSI Systems Company 26
Slide 27: M&A – successful exits
M&A – successful exits Brand Acquisitions Bought for £m1 Sold for £m1 JRT Ltd JenaTec Inc 4.0 14.5 JGWT GMBH Boneham & Turner (FY02 - FY09) (FY13) Moss Group Sigma Components B&D Patterns C&H Composites Eng Group 22.0 65.0 Aerotech Tubes PFW Farnborough (FY07 - FY16) (FY16) RMDG Rolls Royce Nuneaton
Slide 28: Largest investors
Largest investors Ordinary shares of 5p each Number of % of total shares (000s) shares Harwood Capital 4,034 12.5% Business Growth Fund 2,363 7.4% Funds managed by Unicorn Asset Management Limited 1,946 6.1% R S McDowell’s Pension Fund 1,406 4.4% Funds managed by JTC Employer Solutions Trustee Limit