Slide 1: EUROCELL PLC 2022 Full Year Results
EUROCELL PLC 2022 Full Year Results Investor Meet Company
Slide 2: Agenda and Presenters
Agenda Presenters Introduction to Eurocell Mark Kelly Chief Executive Officer Sustainability Michael Scott Chief Financial Officer 2022 in review Outlook 1
Slide 3: Product Range
Product Range Standard products Ranges of window profile and doors Fascias, soffits and guttering Traded goods Made-to-order products Skypod pitched skylights Conservatories and Equinox tiled roofs Syncro patio and Aspect bi-fold doors 2
Slide 4: New Products 2022 and 2023
New Products 2022 and 2023 Customer Centric Development 3
Slide 5: Profiles Division
Profiles Division ► Manufactures: - Extruded rigid and foam PVC profiles using virgin PVC compound - Rigid products also include recycled compound ► Recycles: - Factory offcuts (post-industrial) and old windows (post-consumer waste) ► Sells: - Rigid PVC profiles to a network of c.400 third party fab
Slide 6: Divisional Review: Profiles – Opportunities to Grow Share
Divisional Review Profiles – Opportunities to Grow Share ► Compelling case for trade fabricators to switch to Eurocell Profiles Strategic Plan - Strong product range, continued product Increased run rate on new development / range extension and improved environmental characteristics account wins - B
Slide 7: Building Plastics Division
Building Plastics Division ► Sells: - Range of Eurocell manufactured and branded PVC foam roofline and window fitting / maintenance products - Third party manufactured ancillary products: sealants, tools and rainwater products - Vista doors - Windows fabricated by third parties using products manufa
Slide 8: Building Plastics – Opportunities to Grow Share
Divisional Review Target to become the number 1 choice for relevant trades across the UK Building Plastics – ► 2023 focus on optimising existing estate Opportunities to Grow Share - Define characteristics of best performing branches - Replicate across the network to optimise returns on invested capi
Slide 9: Powerful Sustainability Credentials
Powerful Sustainability Credentials Leading UK-based Recycler of PVC Windows Use of Recycled PVC in Manufacturing 35% ► Improving % of recycled material consumed 29% 30% 27% - Use in primary extrusion increased to 29% of consumption in 2022 (2021: 27%) 25% 25% 23% - Strategic objective to increase t
Slide 10: Looking to a Sustainable Future
Looking to a Sustainable Future Four Themes to Our Sustainable Development Leading UN Sustainable Development Goals for Eurocell ► Carbon, energy and water - Defining pathway to potential carbon neutrality and net zero • Continuing to reduce Scope 1 and 2 emissions, particularly in PVC extrusion and
Slide 11: 2022 Overview
2022 Overview Revenue Solid financial results against strong 2021 comparatives £381.2m Recovering unprecedented input cost inflation ▲ 12% 2021 Delivering operational efficiencies Increasingly challenging backdrop Adjusted profit before tax £28.7m Market share gains ▲ 4% 2021 Increased run rate on n
Slide 12: 2022 Financial Highlights
2022 Financial Highlights Revenue Adjusted profit before tax Adjusted operating profit margin £381.2m £28.7m 8.2% ▲ 12% 2021: £339.8m ▲ 4% 2021: £27.7m ▼ 0.5% 2021: 8.7% Adjusted earnings per share Total dividends Net debt (pre-IFRS 16) 21.4p 10.7p per share £14.4m ▲ 10% 2021: 19.4p ▲ 11% 2021: 9.6p
Slide 13: Sales Performance
Sales Performance Continued Successful Delivery of Commercial Strategies Sales ▲ 12% 400 48.6 (3.6) 381.2 339.8 (0.3) (3.3) 350 300 £m 250 200 150 2021 Profiles volume Building Plastics volume Sales price increase Impact of cyber incident 2022 and surcharges ► Sales ▲12% vs 2021 ► Cyber incident in
Slide 14: Adjusted Operating Profit
Adjusted Operating Profit Solid Performance vs Strong 2021 Comparatives Adjusted operating profit 34 1.5 (1.0) ▲ 5% (0.1) 0.4 (1.2) 3.5 32 31.3 29.7 (1.5) _ 30 28 £m 26 24 22 20 2021 Vol/price/cost/cyber Variable labour Operating Bad debts Recycling New branches Depreciation 2022 (net) costs efficie
Slide 15: Capex
Capex Total Capital Expenditure (£m) Investment in Operating Capacity and Resilience 18 16.7 16 15.2 13.7 ► 2022 capex £12.3m (2021: £16.7m) 14 12.3 12 - Substantial completion of manufacturing capacity expansion c.£4m 10 8.7 • 5 primary extrusion lines, tooling and mixing plant upgrade 7.5 8 7.2 -
Slide 16: Financial Summary Including Technical Guidance for 2023
Financial Summary Including Technical Guidance for 2023 ► Solid financial performance for 2022 2022 2023 Guidance stated post-IFRS 16 Reported Guidance - Sales growth of 12%, driven by price - Adjusted profit before tax up 4% reflecting: Underlying income statement • Lower sales volumes, cost contro
Slide 17: Outlook
Outlook Proven Ability to Outperform in our Sectors Construction Products Industry Forecasts 2022-24 (1) Eurocell Private RMI New build Commercial revenue c.80% c.15% c.5% Expect market share gains to continue in 2023 Other 2023 initiatives Increasing share in Increasing share in Continued recovery
Slide 18: Summary
Summary EUROCELL PLC 2022 Full Year Results Solid financial results against strong 2021 comparatives Recovering unprecedented input cost inflation Delivering operational efficiencies Increasingly challenging backdrop Market share gains Increased run rate on new fabricator account acquisitions Maturi
Slide 19: Appendices
Appendices eurocell. All together better
Slide 20: Financial Performance: Group Income Statement
Financial Performance Group Income Statement £m 2021(1) 2022(1) Change Action taken on costs to prepare for 2023: Revenue 339.8 381.2 ▲ 12% ► Restructuring Gross profit 172.1 184.5 - Program to reduce operating costs by c.£5m per annum from beginning of 2023 Gross margin % 50.6% 48.4% - Non-underlyi
Slide 21: Divisional Review: Profiles 2022 Performance
Divisional Review Profiles – 2022 Performance Profiles Division P&L £m 2021 2022 Change ► Sales up 15% on 2021 3rd party revenue 140.7 161.7 ▲ 15% - Comprised of sales up 17% in H1 and up 13% in H2 - New build, large contract and RMI project work robust throughout the year Inter-segmental revenue(2)
Slide 22: Divisional Review: Building Plastics 2022 Performance
Divisional Review Building Plastics – 2022 Performance Building Plastics Division P&L £m 2021 2022 Change ► Sales up 10% on 2021 - Comprised of sales up 11% in H1 and 9% in H2 3rd party revenue 199.1 219.5 ▲ 10% - Large contract and RMI project work robust throughout the year • Outdoor living range
Slide 23: Working Capital
Working Capital Key Working Capital Metrics(1) Impact of Inflation Stock Days(1) Debtor Days(1) December 2021 95 30 ► Outflow from working capital £13.1m December 2022 93 30 - Significant impact of cost inflation, selling price increases and surcharges (net c.£8m) - Improving trends in H2 2022 Inven
Slide 24: Cash Flow and Net Debt Reconciliation
Net Debt Reconciliation Cash Flow Dec Dec £m Change 2021 2022 Significant Headroom and Good Liquidity Cash & overdraft 0.7 5.1 4.4 60.0 Deferred consideration - 0.8 0.8 £m 55.2 (13.1) Borrowings (11.7) (20.3) (8.6) 50.0 Net debt (pre-IFRS 16) (11.0) (14.4) (3.4) (1.3) (1.6) IFRS 16 leases (58.7) (63
Slide 25: Environmental and Social Targets and KPIs
Environmental and Social Targets and KPIs KPI 2020 Base 2021 Result 2022 Result Target Link to UN SDGs Environmental – circular economy Recycled material used in production % used 25% 27% 29% 1% increase per year CO2 saved by recycling operation Tonnes saved 36kt 48kt 47kt Year-on-year increase Wast
Slide 26: Investment Case
Investment Case ✓ Clear strategy and priorities ✓ Leading market positions ✓ Proven ability to deliver revenue growth and good potential to outperform ✓ Operational capacity constraints resolved through major investments ✓ Now delivering operational efficiencies ✓ Uniquely differentiated on sustaina
Slide 27: Medium-term Ambitions
Medium-term Ambitions Delivering Sustainable Growth in Shareholder Value £ Growth Sustainability Profitability Revenue Recycling Operating profit margin • Margins impacted by exceptional • Leading UK-based recycler of PVC sales growth running ahead of • Consistent and proven delivery of Track organi
Slide 28: Route to Market
Route to Market Third Party Suppliers Recycling: Eurocell Recycle Third Party Suppliers 38,000 tonnes of virgin e.g. compound consumed (1), 16,700 tonnes of recycled • Rainwater products plus 3,300 tonnes of compound consumed • Sealants other raw materials (2) (29% of profile raw material • Tools co
Slide 29: Recycling Inputs and Outputs
Recycling Inputs and Outputs Major Cost and Carbon Savings K tonnes 2021 2022 ► Leading UK-based recycler of PVC windows - Substantial investments since 2018 Inputs – waste recycled - Keeping pace with sales growth and increasing % Post-consumer 40.5 37.9 recycled material used in primary extrusion
Slide 30: Group History
Group History Branch expansion Branch expansion Eurocell Building Branch expansion reaches 100 reaches 150 Plastics launched reaches 50 Operational Branch Branch 1st Eurocell expansion expansion Building Plastics reaches 200 reaches 219 Extrusion branch business Rebranding: Primary Primary Primary P
Slide 31: Disclaimer
DISCLAIMER This Presentation may contain forward-looking uncertainties because they relate to events and In no circumstances will the Company be statements that involve substantial risks and depend on circumstances that may or may not responsible for any costs, losses or expenses uncertainties, and
Slide 32: eurocell – All together better
eurocell All together better