Volex plc · LSE:VLX
Volex — H1 FY2012 Earnings Presentation
20 slides from Volex's earnings presentation, Nov 2, 2011
Slide 1: Half year results for the 26 weeks ending 2 October 2011
Half year results for the 26 weeks ending 2 October 2011 Building for the Future
Slide 2: Warning
Warning THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY DIFFER MATERIALLY. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE GENERAL ECONOMIC CONDITIONS, CURRENCY FLUCTUATIONS, COMPETITIVE FACTORS, THE LOSS O
Slide 3: Financial highlights for H1 FY2012
Financial highlights for H1 FY2012 1. Revenues of $270.7m, up 14% year-on-year and up 8% over the preceding half year 2. Gross margin % of 19.2%, down from 19.7% in H1 FY11 but up from 18.0% in H2 FY11 3. Normalised1 operating profit of $14.9m, up 16% year-on-year 4. Normalised1 profit before tax of
Slide 4: Operational and strategic highlights
Operational and strategic highlights Highlight Example 1. Investing in the business • Consumer factory automation • New engineering resources to drive design content • New manufacturing capabilities in precision injection moulding and connector components • IT upgrades providing increased visibility
Slide 5: Group-wide Financial Highlights
Group-wide Financial Highlights
Slide 6: Revenue growth across all sectors
Revenue growth across all sectors Quarterly revenue by sector, $m 160 140 120 100 80 60 40 20 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Consumer Telecoms / Datacoms Healthcare Industrial Revenue, $m H1 FY12 H1 FY11 Growth Gross margin % H1 FY12 H1 FY11 Growth
Slide 7: Broad geographic revenue growth
Broad geographic revenue growth Quarterly revenue by geographic region, $m 160 140 120 100 80 60 40 20 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4FY11 Q1FY12 Q2FY12 Asia Americas Europe India $m H1 FY12 H1 FY11 Growth H2 FY11 Growth Asia 149.9 123.5 21% 133.2 13% Americas 64.9 60.1
Slide 8: Absolute gross profit increasing, gross margin % recovering
Absolute gross profit increasing…. gross margin % recovering Quarterly gross profit $m 1 Quarterly gross margin % 1 27.9 20.9% 21.4% 20.7% 24.8 19.7% 19.6% 23.9 19.2% 19.0% 19.3% 18.0% 18.0% 22.5 22.7 22.1 20.2 19.7 19.2 16.1 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q1 10 Q2 10 Q3
Slide 9: Upward trend in operating profit resumed
Upward trend in operating profit1 resumed Quarterly operating profit1, $m Quarterly operating profit1 as % of sales 8.1 6.8 7.0 6.8 6.3 6.3% 6.0 5.9 5.6% 5.5% 5.9% 5.6% 5.5 5.3% 5.4% 5.5% 5.4% 5.1 5.0% 4.7 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 1
Slide 10: Strong cash generation enabling increased investment and shareholder returns
Strong cash generation enabling increased investment and shareholder returns Cash flow bridge, $m 12 2.1 (1.1) 8 (6.4) 4 14.9 (4.8) $'m 0 Net debt at Normalised Dep'n Provision WC Capex Interest and Dividends Own shares Refinancing FX Net debt at 03/04/2011 op profit movement movement tax costs, net
Slide 11: Individual Sector Performance
Individual Sector Performance
Slide 12: Consumer – record revenues and recovering margins
Consumer – record revenues and recovering margins Consumer revenues, $m 100 90 80 70 60 50 40 30 20 10 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Asia Americas Europe India • Consumer revenue benefited from pre-Xmas seasonality in Q2 but also up 12% yoy • Sales
Slide 13: Telecoms / Datacoms – revenue and margin up
Telecoms / Datacoms – revenue and margin up Telecoms / Datacoms revenue, $m 35 30 25 20 15 10 5 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Asia Americas Europe India • H1 FY12 Revenue up 7% on H1 FY11 • Gross margin of 20.5%, up from 19.8% in FY11 as a result o
Slide 14: Healthcare – record revenue and improving margins
Healthcare – record revenue and improving margins Healthcare revenue, $m 14 12 10 8 6 4 2 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Asia Americas Europe India • Revenue in H1 FY12 up 30% year on year • Gross margin of 25.4% continuing to reflect early design c
Slide 15: Industrial – record revenue and margins up
Industrial – record revenue and margins up Industrial revenues, $m 12 10 8 6 4 2 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Asia Americas Europe India • Revenue in H1 FY12 up 27% year on year • Gross margins of 24.2%, up from 23.4% in H1 FY11 • Strong growth in
Slide 16: Conclusions
Conclusions • Record revenues, profits and cash generation, plus margin progression across all sectors and geographies • Increased OPEX and CAPEX investment in sales capability, manufacturing excellence and information technology laying foundation for solid medium and longer term growth • Despite tu
Slide 17: Appendices: Abridged financial statements
Appendices Abridged financial statements
Slide 18: A. Abridged income statement
A. Abridged income statement $m H1 FY 12 H1 FY11 Revenue 270.7 238.4 Cost of sales (218.8) (191.6) Gross margin 51.9 46.8 Operating expenses (37.0) (34.0) Operating profit (b/f share based payments) 14.9 12.8 Share based payments (2.1) (0.4) Operating profit 12.8 12.4 Net finance costs (2.4) (1.8) P
Slide 19: B. Abridged statement of financial position
B. Abridged statement of financial position $m H1 FY12 H1 FY11 Goodwill 3.0 3.0 Property, plant and equipment and intangible assets 17.0 13.4 Other non-current assets 2.9 0.8 Total Non-current Assets 22.9 17.2 Inventories 52.9 54.8 Trade receivables 115.4 109.3 Other receivables 12.5 14.3 Cash and c
Slide 20: C. Abridged statement of cash flows
C. Abridged statement of cash flows $m H1 FY12 H1 FY11 Operating cash flow before working capital movements 15.9 11.2 Movement in working capital (6.4) (8.2) Cash generated by operations 9.5 3.0 Tax and interest payments (3.4) (4.8) Purchases of tangible and intangible assets (4.8) (2.4) Operating c