Avon Technologies Plc · LSE:AVON
Avon Technologies — Avon Rubber — Investor Day (March 2018)
81 slides from Avon Technologies's investor day presentation, Mar 13, 2018
Slide 1: Capital Markets Day 2018
CAPITAL MARKETS DAY 2018
Slide 2: This afternoon
This afternoon 2:00pm Welcome and Overview 2:30pm – 4:30pm 4 x 30 Minute Breakout Sessions 4:30pm Wrap up 4:45pm Drinks Reception and Questions CAPITAL MARKETS DAY 2018 2 Building a brighter future
Slide 3: At a glance
Avon Protection milkrite | InterPuls Avon Protection is the recognised global leader milkrite | InterPuls is a global leader At a glance in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems for the world’s Military, Law providing complete milking point sol
Slide 4: Strong financial track record
Strong financial track record FINANCIALS OPERATING PROFIT H1 H2 % Constant 2017 £10.9m £14.9m 2017 % Change Currency Orders received £173.9m 22.2% 11.8% 2016 £9.0m £11.9m* Closing order book £34.0m 45.3% 46.3% 2015 £8.5m £10.7m* Revenue £163.2m 14.2% 4.5% 2014 £8.2m £8.8m Adjusted EBITDA £36.0m 20.4
Slide 5: Our strategy…
Our strategy… …for creating shareholder value is based upon 3 key elements: 1. Maximise organic sales growth from our core business 2. Selective product development to maintain our innovation leadership position 3. Value enhancing acquisitions to complement our existing business and accelerate growt
Slide 6: Today's key objectives
Today’s key objectives 1 2 3 4 Demonstrate the Establish the Clearly illustrate the Showcase the importance of importance of market drivers for breadth and added innovation to technology in Avon Protection and value within our meeting customer delivering our milkrite | InterPuls product range needs
Slide 7: Avon Protection - Future Threats
Avon Protection - Future Threats • The red line of use on chemical weapons has been crossed • Growing use of chemical weapons around the world • State sponsored use • Terrorist attacks • Proliferation is becoming the challenge on a global basis • Military and first responders are unprepared for this
Slide 8: Where Avon Protection operates
Where Avon Protection operates CBRN PROTECTION RESPIRATORY TECHNOLOGY PROTECTION INTEGRATION • Masks • Filters • Communications • Hoods • Powered air • Information display • PPE clothing • Self-Contained • Helmet/visor Breathing Apparatus integration • Detection • Rebreathers • Sensors/detection • D
Slide 9: Avon Protection Portfolio
Avon Protection Portfolio S10 Respirator Introduced in 1986, the S10 respirator M53 Respirator and M61 Filters Project Fusion was in service with the UK MoD until the Building on the design for the M50 Fusion was the project name for the Powered late 2000’s. Respirator, the M53 Respirator and M61 Ai
Slide 10: Avon Protection Portfolio
Avon Protection Portfolio CAPITAL MARKETS DAY 2018 12 Building a brighter future
Slide 11: Portfolio applications 2008
Portfolio applications 2008 Applications M50 FM53 ST53 Military Operations Counter Narcotics Operations Special Operations Law Enforcement Operations First Responders Critical National Infrastructure Protection Other CAPITAL MARKETS DAY 2018 13 Building a brighter future
Slide 12: Portfolio applications 2018
Portfolio applications 2018 Applications M50 FM53 ST53 M53A1 FM54 ST53SD MCM100 MDC150 EZAIR MP-PAPR CS-PAPR CS-ELITE Military Operations Counter Narcotics Operations Special Operations Law Enforcement Operations First Responders Critical National Infrastructure Protection Other CAPITAL MARKETS DAY
Slide 13: What does this mean for Avon Protection?
What does this mean for Avon Protection? • Far greater flexibility and opportunity to generate value • Significantly increased addressable commercial market • Smaller military • Special purpose user groups • Civil protection • Product range capable of addressing a wider range of applications and cus
Slide 14: Dairy Farm of the Future
Dairy Farm of the Future • Milk and feed prices provide general macro economics indicators for the industry • Labour wage inflation drives automation to increase efficiency and scale of farm • Growing population requires ever increasing production levels • Increasing pressure for technology to impro
Slide 15: Where milkrite | InterPuls operates
Where milkrite | InterPuls operates INTERFACE PRECISION, CONTROL FARM SERVICES & INTELLIGENCE • Liners • Pulsators • Cluster • Tubing • Milk meters • Pulsator • Claws • Tag systems • Tag • Shells • Data management • Wash systems Unique leased ownership model Market leader Challenger Low penetration
Slide 16: milkrite | InterPuls Portfolio
milkrite | InterPuls Portfolio Farm Services Hi-Life Acquisition After seeing success with the Cluster In 1998, Avon acquired the milkrite Exchange, the decision was taken in 2017 to brand and liner manufacturing facility Impulse Claw 300 add pulsator and tag exchange under a new in North America Th
Slide 17: milkrite | InterPuls Portfolio
milkrite | InterPuls Portfolio CAPITAL MARKETS DAY 2018 20 Building a brighter future
Slide 18: What does this mean for milkrite | InterPuls?
What does this mean for milkrite | InterPuls? • We are positioned in the two structural growth markets of the dairy industry • PCI • Farm Services • Multiple product sales into the same customer • Flexible customer value proposition meets needs of large industrial farms and smaller family farms • Te
Slide 19: Breakouts
Breakouts • We will now break into four groups and rotate around four zones which will last 30 minutes each. • If you look at your badges, you will see your group name and timetable. Each group has a leader who will guide you around the hall. MP-PAPR MCM100 myFarm Farm Services Future threats Avon P
Slide 20: Capital Markets Day 2018
CAPITAL MARKETS DAY 2018
Slide 21: Today's key objectives
Today’s key objectives 1 2 3 4 Demonstrate the Establish the Clearly illustrate the Showcase the importance of importance of market drivers for breadth and added innovation to technology in Avon Protection and value within our meeting customer delivering our milkrite | InterPuls product range needs
Slide 22: Avon Protection - 2008
Avon Protection - 2008 CAPITAL MARKETS DAY 2018 25 Building a brighter future
Slide 23: Avon Protection - 2018
Avon Protection - 2018 CAPITAL MARKETS DAY 2018 26 Building a brighter future
Slide 24: milkrite | InterPuls - 2008
milkrite | InterPuls - 2008 CAPITAL MARKETS DAY 2018 27 Building a brighter future
Slide 25: milkrite | InterPuls - 2018
milkrite | InterPuls - 2018 CAPITAL MARKETS DAY 2018 28 Building a brighter future
Slide 26: Our strategy…
Our strategy… …for creating shareholder value is based upon 3 key elements: 1. Maximise organic sales growth from our core business 2. Selective product development to maintain our innovation leadership position 3. Value enhancing acquisitions to complement our existing business and accelerate growt
Slide 27: Why invest in Avon Rubber?
Why invest in Avon Rubber? 3% + 20% + 90% + 30% CORE ACCELERATE SUSTAINABLE CASH PROGRESSIVE BUSINESS GROWTH PROFITABILITY GENERATION DIVIDEND CAPITAL MARKETS DAY 2018 30 Building a brighter future
Slide 28: Q&A and Drinks
Please join us for Q&A AND DRINKS
Slide 29: Future Threats
Future Threats Hamish de Bretton-Gordon OBE
Slide 30: Chemical Weapons "Threat to West"
Hamish de Bretton-Gordon Chemical Weapons “Threat to West” 2
Slide 31: Chemical Weapons "Threat to West"
Hamish de Bretton-Gordon Chemical Weapons “Threat to West” 3
Slide 32: Operations in Iraq, Afghanistan, Syria & Elsewhere
Hamish de Bretton-Gordon Operations in Iraq, Afghanistan, Syria & Elsewhere Operation Desert Storm, 1991 Operation Iraqi Freedom, 2003. Commanding Officer, 2004 – 2007: UK CBRN Regiment. • NATO Multi-National CBRN Battalion: Sarin Rockets, chlorine etc Helmand, Afghanistan: Counter Narcotics
Slide 33: Tracking The Threat
Hamish de Bretton-Gordon Tracking The Threat 5
Slide 34: CBRN Threat ISIL & Others
Hamish de Bretton-Gordon CBRN Threat ISIL & Others Rise Of Extremist Groups: • Growing Asymmetric Threats: • CBRN/Active Shooter/Cyber • French PM C & B Threat warning • Home made CWAs • Aleppo & Ghouta • Defence of Mosul & Raqqa • Mishraq Chemical complex • Sudan • Australia 6
Slide 35: Knowledge Proliferation, Indonesia, Australia
Hamish de Bretton-Gordon Knowledge Proliferation, Indonesia, Australia Event Type: Deliberate - CBRN Cat: TIC - Device: TIC-IED - Threat Agent: Choking Threat Group: Islamic Extremism - Incident Name: Chlorine IED - Location: Jakarta 7
Slide 36: North Korea & Nerve Agent VX/Australian ISIS Plane Plot
Hamish de Bretton-Gordon North Korea & Nerve Agent VX/Australian ISIS Plane Plot 8
Slide 37: CW Threat to London, the UK & US?
Hamish de Bretton-Gordon CW Threat to London, the UK & US? 9
Slide 38: Near Mosul with the Peshmerga
Hamish de Bretton-Gordon Near Mosul with the Peshmerga 10
Slide 39: Mitigating The Threat – Agile & Flexible
Hamish de Bretton-Gordon Mitigating The Threat – Agile & Flexible Posture Will the Russians use CBRN? • Cold War – Survive & Operate • Now – Survive to Operate Agile • Threat • To the threat • Most Likely - non persistent toxic chemicals & • Reduce burden - endurance home made chemical warfare agent
Slide 40: Products to maximise capability
Hamish de Bretton-Gordon Products to maximise capability 12
Slide 41: Questions?
Fear is the real killer, Not the toxicity of the agent. Questions? +44 (0) 1225 896 705 protection@avon-protection.com www.avon-protection.com
Slide 42: Dairy farming
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Slide 43: Dairy farming: million people
dairy farming a teamere es 750 MILLION PEOPLE 3 globally, around 150 million small-scale dairy households, equivalent to 750 million people, are engaged in milk production i) +2.3% milk production is steadily growing: +2.3% on average every year since 2000. +25% consumption of dairy products is expe
Slide 44: Dairy farming
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Slide 45: milkrite InterPuls: Improving every farm we touch
milkrite InterPuls Improving every farm we touch ® dairy farming 3 operators “< 350 cowsxhr — =@ 9 6 (a)
Slide 46: milkrite InterPuls
milkrite InterPuls Improving every farm we touch
Slide 47: Farm Gate Milk Price in € / 100kg
50€ 40€ 30€ 20€ 10€ Farm Gate Milk Price in € / 100kg farm milk price (€ / 100 kg) EU (weighted average price) = eee farmmilk price (€ / 100 kg) USA MEE farm milk price (€ / 100 kg) NEW ZEALAND 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 milkri
Slide 48: Farm Gate Milk Price in € / 100kg
Farm Gate Milk Price in € / 100kg millirite interPuls farm milk price (€ / 100 kg) EU (weighted average price) 50€ 40€ 30€ 20€ 10€ 1999 2000 2001 2002 2003 2004 2005 2006 2007} 2008 2009} 2010 2011 2012 2013 2014}2015 2016]2017 2018 a « ©
Slide 49: Milk Price vs Feed Price in USD / 100kg
Milk Price vs Feed Price in USD / 100kg "2 interPuls 60S 50$ 40$ 30S 20$ ws 10$ Dairy Data Knowledge Inspiration =a@ i © 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 50: Efficiency
om +c milkrite |InterPuls 2) efficiency eee BL 9000 kg persistency
Slide 51: Efficiency
1cl milkrite |InterPuls efficiency Tite ov Sf x cow x day 40 extra days x 200 cows = 40.000 £ 10 months before é . Oo
Slide 52: Precision Farming
©) Precision Farming own cl
Slide 53: milkrite InterPuls
milkrite InterPuls Improving every farm we touch
Slide 54: Internet of Things: Cows
milkrite InterPuls Improving every farm we touch Internet of THINGS Cows
Slide 55: Slide 55
Slide 56: Precision Farming
tof : ilkrite InterPul Precision Farming Pn ye
Slide 57: Fertility
milkrite InterPuls ege fertility tem rg ater
Slide 58: milkrite | InterPuls
milkrite |InterPuls Improving every farm we touch
Slide 59: Fertility
fertility -- ‘ Activity © Activity - attention 1 1821 29-09-2018 02:50 (S hours) °o © Activity - suspicious ° © Activity - decreased activity ° go9 Bd Pregnancy rate (in %) 1 2 4 6 8 MO 12 14 16 18 20 22 24 26 28 30 32 Duration of heat (in hours) milkrite InterPuls Improving every farm we touch 55 6
Slide 60: Cow health
‘Q) cow health asa ale
Slide 61: Cow health
milkrite InterPuls Improving every farm we touch cow health My tasks
Slide 62: milkrite InterPuls
milkrite InterPuls Improving every farm we touch
Slide 63: Predictive maintenance
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Slide 64: Cow health
cow health milkrite|InterPuls
Slide 65: Health, fertility, milking system, precision feeding
health fertility — traffic gate a milking system milkrite|InterPuls Improving every farm we touch NN precision feeding 6.
Slide 66: Precision feeding
precision feeding ee Lactation feed table — kg Insemination feed tale == feed . Dry off feed table — 4 5 4 3 2 4 0 Lact. Dry off Calving Insemination Dry off days => S = start steam up feed before expected calving a « © (A
Slide 67: Milking system
milking system a ela Wk. iMilk600 InterPuls FF
Slide 68: Milking system
| milking system milkrite InterPuls Improving every farm we touch
Slide 69: Milking system
milkin g syst em milkrite | InterPuls EYE-D camera IMitk600 ——imerPu incerPuls il erPAs iMitk600 iMitk6oo iMiIk600 629 | COLOSTRUM RFID antenna iO) 82 Y
Slide 70: milkrite InterPuls
milkrite InterPuls Improving every farm we touch
Slide 71: Milking system: a happy cow produces more milk
2 milking system elon hdc Q a happy cow produces more milk =€@> 91 6 (a)
Slide 72: Analysis
@Analysis 198 Average DIM Fe Milking #8 settings # Service milkrite InterPuls Improving every farm we touch Wwe 12 4.0% Com we-120 30 10.0% [Joi 120-200 110 36.8% [Hl om 200-305 190 43.5% HB om> 05 7 5.7% Total 299 Ml oren 22 131 DIM BB nseminateD 82 175 DIM [BI PREGNANT 195 215 DIM Total 299 198 DI
Slide 73: Information
information interaction =-@ milkrite InterPuls Improving every farm we touch (e205 vodafone IT 16:07 70 03% am Rilevamento calore Giorni lattaz. -Periodo inseminazione Animali da controllare oggi Gruppo Ruminazione 8 — 2. Stanche tll 1. FreschePtunpare 41. FreschePiuripare 4. FreschePiuripare 102 3.
Slide 74: Information
information milkrite InterPuls (e205 vodafone IT 16:07 Rilevamento calore Giorni lattaz. - Periodo inseminazione TOOLS TO IMPROVE TOOLS TO MONITOR = 15 1. FreschePlurpare 48 1, FreschePluripare 321 FreschePturipare il 102 3. Asciutte = jm Ruminazione
Slide 75: Integrated solution
) integrated solution cient air these technologies allowed to increase farm performance
Slide 76: World population to hit 9.7bn by 2050
World population 'to hit 9.7bn by 2050' Billions 12 *projection 11.2bn* Ho 9.7bn* 8 7.5bn 6 2015 current population 1700 1750 1850 1900 Year 1950 2000 2050 2100 Source: United Nations milkrite InterPuls Improving every farm we touch
Slide 77: New scenarios
new scenarios 750 MILLION PEOPLE globally, around 150 million small-scale dairy households, equivalent to 750 million people, are engaged in milk production +2.3% milk production is steadily growing: +2.3% on average every year since 2000. @ of dairy products is expected to increase by 25% between 2
Slide 78: New scenarios: sustainability
new scenarios milkrite InterPuls Sustain ability GD More nutrition for less emissions - << -@ nutrients — contribute toa healthy diet High sustainability score* Affordability Nutritional quality . Arla’s 2020 w enviromental strategy Low environmental impact _ f . Sustainable [enti pot "Source net. S
Slide 79: New scenarios
. ilkrite| InterPul new scenarios milkrite InterPuls
Slide 80: New scenarios
new scenarios milkrite InterPuls
Slide 81: Thanks for your attention!
milkrite |InterPuls Improving every farm we touch Thanks for your attention ! =@ 115 6