Trellidor Holdings Ltd. · JSE:TRL
Trellidor — H1 2022 Earnings Presentation
31 slides from Trellidor's earnings presentation, Mar 7, 2022
Slide 1: Interim Results Presentation
Trellidor Holdings Limited 31 December 2021 Interim Results Presentation 07 March 2022 | 09:00 | Hosted by PSG Capital WELCOME We will begin shortly holdings.trellidor.co.za
Slide 2: Interim Results for the Period Ended 31 December 2021
TRELLIDOR HOLDINGS LIMITED INTERIM RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2021
Slide 3: F22 H1 Salient Points
F22 H1 SALIENT POINTS 25.4 cents Headline earnings per (2021: 30.6 cents) share for the 6 months TERRY DENNISON R18 million Cash from operations GROUP CEO (2021: R48 million) for the six months R284 million Revenue for the six (2021: R282 million) months 0 cents Interim dividend (2021: 10.0 cents) d
Slide 4: Major Events Impacting Results – Trellidor
MAJOR EVENTS IMPACTING RESULTS Trellidor Segment: • KZN and Gauteng riots and looting in July caused factory closure for 7 days. Negative impact on revenue through lost capacity, and KZN rural revenue negatively impacted for TERRY DENNISON GROUP CEO the whole period. • National Metalworkers industri
Slide 5: Major Events Impacting Results – Taylor
MAJOR EVENTS IMPACTING RESULTS Taylor Segment: • Ongoing supply chain chaos has led to stock shortages causing certain product lines to be unavailable for sale during the period negatively impacting revenue. TERRY DENNISON GROUP CEO • This is despite a concerted effort to increase inventory levels t
Slide 6: Strategic Objectives for 2022
STRATEGIC OBJECTIVES FOR 2022 The Group prioritised its key strategies for F22 as follows: • In the UK, bed down management structure and establish strategic plan for growth F22 and beyond. TERRY DENNISON GROUP CEO • In the RSA Main Centres, continue with our approach to acquire more areas, starting
Slide 7: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES Trellidor UK management structure and strategic plan • An experienced managing director was appointed to lead the Trellidor UK operations in F22 Q1. • Following the transition of ownership, financial performance has been stellar during F22 H1 with TERRY DENNISON reve
Slide 8: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES NMC ecommerce Route-to-Market • Development of the online store was completed through F22 H1. • The platform will go live through F22 Q3 once warehouse logistics are in place. TERRY DENNISON GROUP CEO Leverage introduction of F21 products for desired results in F22 •
Slide 9: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES Re-establish focus on Africa, which has suffered through Covid • The challenges that existed during F21 in Africa, largely continued through F22 H1. • Travel restrictions have, however, since been relaxed and economic conditions are TERRY DENNISON starting to improve
Slide 10: Prospects
PROSPECTS The continued Covid-19 restrictions, the third wave and the looting and riots has subdued demand in late F21 and early F22. This is also reflected by a decline in housing transaction TERRY DENNISON volumes and value during F22 H1. GROUP CEO Source: Lightstone February 2022
Slide 11: Prospects
PROSPECTS • Sales in January and February are tracking ahead of prior year, although demand in RSA remains subdued following a shift away from home improvement spend by consumers. • The full 12 months of our UK branch, which is showing strong financial performance, be TERRY DENNISON GROUP CEO includ
Slide 12: Prospects
PROSPECTS • We anticipate a recovery in our Africa markets, and have increased investment in people, marketing and management support for these markets. • Product innovation remains a key strategy for both Trellidor and Taylor. Trellidor will be TERRY DENNISON GROUP CEO launching additional products
Slide 13: Prospects
PROSPECTS • The Managing Director of the Taylor business unit, Anthony Mederer, has resigned effective 1 March and as a result Trellidor Holdings will be purchasing his minority share in the business. TERRY DENNISON GROUP CEO • In addition, the Group’s Sales and Marketing Director of Trellidor, Pete
Slide 14: Group Financial Performance
GROUP FINANCIAL PERFORMANCE
Slide 15: Group Financial Performance
GROUP FINANCIAL PERFORMANCE HY 22 vs R’m FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 HY 21 CAGR Revenue 539.0 286.2 514.9 274.8 421.5 281.6 518.4 283.5 1% 1% DAMIAN JUDGE Gross profit 245.9 128.9 231.9 122.5 175.5 125.6 219.4 113.7 -9% -2% GROUP CFO EBITDA 103.5 55.7 81.2 49.1 11
Slide 16: Sales Analysis – Geographical Presence
SALES ANALYSIS – GEOGRAPHICAL PRESENCE Trellidor revenue has increased by 5.4% 13% • Trellidor Retail’s revenue is up 27% driven by 35% Main centres (DBN, CPT, GP) 13% the acquisition of the 2 new JHB franchises in Outlying regions (RSA) Q1. Africa DAMIAN JUDGE GROUP CFO International (UK, • The Int
Slide 17: Sales Analysis – Product Type
SALES ANALYSIS – PRODUCT TYPE Trellidor’s traditional retractable range continues 17% to be the primary contributor to the topline Trellidor • The expansion of the Aluminium Louver Shutter Polycarb range has resulted in the contribution of Security 13% Clearguard DAMIAN JUDGE Shutters increasing fro
Slide 18: Trading Margin
TRADING MARGIN 53.8% 54.0% • At a group level, margins have declined to 40.1% in 53.2% 52.2% 51.6% F22 H1 from 44.6% in the prior comparative period. 9.9% 9.4% 9.9% 9.9% 10.2% This has been driven largely by: 9.5% • Significant raw material cost increases experienced. 10.5% 10.6% 15.0% 10.7% • Reduc
Slide 19: EBITDA
EBITDA 70.2 • The group’s EBITDA has decreased 19.6% to 63.1 60.2 R46.5m from R57.8m in F21 HY21 mainly as a 42.1 result of reduced production capacity in 30.7 24.7 7.1 24.2 34.1 DAMIAN JUDGE Trellidor and supply constraints in Taylor. GROUP CFO • With the increased scale of Trellidor Retail, 12 39.
Slide 20: Group Financial Position
GROUP FINANCIAL POSITION GEMED TAVECR HB. THE @iXSHePLe9 GROUP
Slide 21: Group Balance Sheet
GROUP BALANCE SHEET • Debt/Equity ratio of 51% represents a 350.0 35.0x 300.0 214.2 30.0x slight increase from HY21 at 48%. 250.0 226.7 188.6 194.9 25.0x 161.2 179.1 Interest cover 20.0x • We remain at a conservative level 200.0 R'm 10.9x 15.0x DAMIAN JUDGE despite a challenging 6 months. 150.0 7.9x
Slide 22: Group Net Working Capital
GROUP NET WORKING CAPITAL • Increase in inventory is necessary to mitigate the current supply chain 117.1 107.1 107.6 challenges. Cost escalation also 93.1 93.1 89.7 DAMIAN JUDGE contributes to the increase. GROUP CFO 62.4 57.2 56.5 63.5 65.5 79.2 • Payables have increased due to (34.6) (43.2) (47.0
Slide 23: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW 70.5 69.9 DAMIAN JUDGE GROUP CFO 49.6 49.6 43.0 43.5 44.9 40.4 40.3 37.0 31.8 31.8 31.2 26.8 24.5 18.2 15.1 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 -24.5 Profit after tax Cash from operating activities Free cash flow
Slide 24: Capital Allocation
CAPITAL ALLOCATION • Return to shareholders − In F22 H1 the F21 Final dividend of R10.5m was distributed. • Debt Servicing DAMIAN JUDGE − Paydown interest bearing liabilities of R12.6m (including interest) GROUP CFO − Net interest R3.9m. • CAPEX − R7.1m which includes R4.3m for our Solar Power Proje
Slide 25: Labour Appeal Court Judgement
Labour Appeal Court Judgement Background: • As previously been disclosed, on 17 April 2020, the Labour Court delivered its judgement in respect of the 2013 dismissal dispute and found, that while the dismissal of 81 TERRY DENNISON employees was substantively fair, the dismissal 42 “night shift emplo
Slide 26: Labour Appeal Court Judgement
Labour Appeal Court Judgement Update: • At the close of business on 3 March 2022, the board was notified of the Labour Appeal Court judgement, dated 10 February 2022, in terms of which the company’s appeal TERRY DENNISON against the Labour Court judgement, which was delivered on 17 April 2020, was G
Slide 27: Additional Information
ADDITIONAL INFORMATION
Slide 28: Earnings per Share
EARNINGS PER SHARE HY 22 vs R’m FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 HY 21 Profit attributable to ordinary shareholders 58.8 32.1 42.9 26.3 -21.3 30.4 39.8 24.1 -21% DAMIAN JUDGE Adjusted for: GROUP CFO Profit on disposal of property, plant and equipment (0.1) - 0.2 0.5 (0
Slide 29: Group Summarised Balance Sheet
GROUP SUMMARISED BALANCE SHEET R’m R’m FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 Non current assets Property, plant and equipment 61.2 66.1 64.9 57.2 56.8 58.2 57.6 60.5 RoU Assets - - - 21.0 19.6 20.0 15.4 47.1 Goodwill and other intangibles 116.8 116.4 113.5 111.7 82.7 89.6 8
Slide 30: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW R’m FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 EBITDA 103.5 55.7 81.2 49.1 11.6 57.8 85.4 46.5 Movement in non cash items (incl provisions) 3.4 1.1 3.1 (1.9) 45.4 (1.4) (2.6) 0.3 Net working capital movement 0.1 (16.0) (13.6) (0.6) (2.0) 7.5 13.5 (18.4
Slide 31: Thank You
TERRY DENNISON DAMIAN JUDGE GROUP CEO GROUP CFO THANK YOU holdings.trellidor.co.za