Carclo Plc · LSE:CAR

Carclo — FY2006 Earnings Presentation

27 slides from Carclo's earnings presentation, June 2006

  1. Slide 1: Results for full year ending 31 March 2006

    Results for full year ending 31 March 2006

  2. Slide 2: Highlights

    HIGHLIGHTS Performance • Underlying operating profits increased to £4.5 million • Profit margins have improved due to rationalisation programme and clear focus on medical businesses Restructuring • Successful disposals of ECC Card Clothing and CTP Gills Cables (post year end) • Net debt has reduced

  3. Slide 3: Technical Plastics

    TECHNICAL PLASTICS 2005/06 2004/05 Operating Operating £M Sales Profit Margin Sales Profit Margin CTP Europe 39.1 1.4 3.6% 43.0 1.2 2.8% CTP USA & Asia 15.2 1.2 7.9% 16.1 1.1 6.8% Continuing operations 54.3 2.6 4.7% 59.1 2.3 3.9% CTP Europe CTP USA & Asia • Czech Republic profits increase substantia

  4. Slide 4: Technical Plastics Progress

    TECHNICAL PLASTICS PROGRESS CTP division - e xte rnal turnove r for ye ar ended CTP divis ion - e xte r nal turnove r for ye ar e nding 31 March 2006 31 M arch 2007 A u to m o tiv e M e d ic a l T e le tro n ic s / o th e r 21% 26% 34% 36% Turnover in medical 45% 38% forecast to increase sharply CTP

  5. Slide 5: Margin Recovery in Technical Plastics

    MARGIN RECOVERY IN TECHNICAL PLASTICS Carclo Technical Plastics Underlying Operating Margins - From 2001 to 2006 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1 2 3 4 5 6 7 8 9 10 CTP Europe CTP Rest of World

  6. Slide 6: Precision Products

    PRECISION PRODUCTS 2005/06 2004/05 Operating Operating £M Sales Profit Margin Sales Profit Margin CTP Automotive 17.6 1.8 10.2% 17.2 1.7 9.9% Precision Engineering 5.0 1.2 24.0% 5.0 1.3 26.0% Continuing operations 22.6 3.0 13.2% 22.2 3.0 13.6% CTP Automotive Precision Engineering • Good performance

  7. Slide 7: Income Statement Comparative

    INCOME STATEMENT COMPARATIVE £M 2005/06 2004/05 Turnover • Divisional operating margins up to 7% Continuing operations 76.6 80.8 Discontinued operations 11.4 26.9 • Operating profit from continuing 88.0 107.7 operations increased to £4.55 million Operating profit • Rationalisation costs of £0.8 mill

  8. Slide 8: Financial Position – Cash Flow

    FINANCIAL POSITION – CASH FLOW £m £m Net debt at start of year (25.9) Cash from operations 8.8 • Cash from operations of £8.8 million Working capital 1.1 Interest (1.4) • Working capital release of £1.1 million Capital expenditure (maintenance) (2.3) • CAPEX at 62% of depreciation Free cash flow 6.2

  9. Slide 9: Net Debt

    DEBT C a r c lo p lc - N e t D e b t 60 50 Net Debt £ million 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 3 0 /9 / 0 2 t o 3 1 / 3 /0 6 • Group debt reduced by £5.1 million to £20.8 million marginally above the short term target • Disposal of CTP Gills Cables should reduce debt further to approximately £17.6

  10. Slide 10: Pensions

    PENSIONS • IAS19 operating charge of £0.8 million and IAS 19 financing credit of £0.5 million • Regular cash contributions of £0.7 million - expected to decrease further with business disposals • Additional contributions totalling £3.4 million paid into schemes including: - £1.6 million deficit corr

  11. Slide 11: Pensions

    PENSIONS • IAS19 gross pension deficit is £22.4 million down from £26.6 million last year • Allowing for excess return on assets over corporate bond yield the schemes are in balance • Pension payroll is £5.9 million per year • Recurring income of schemes covers approximately 85% of outgoings • If mo

  12. Slide 12: Business Disposals

    BUSINESS DISPOSALS Disposal of ECC Disposal of Gills Cables business and 50% shareholding in Indian Joint Venture • Disposal completed on 22 June 2005 • Disposal completed on 12 May 2006 • Net funds of £5.2 million received from the disposal • Disposal value before costs: • Plover Mills (NBV £1.7 mi

  13. Slide 13: Strategy

    STRATEGY • To grow our specialist medical and optical businesses • To continue our expansion in low cost regions - Czech Republic, China and India • To increase our investment in new technologies and proprietary know how.

  14. Slide 14: Other Technological Developments

    OTHER TECHNOLOGICAL DEVELOPMENTS Soluble Drug Capsules • Joint project with Stanelco progressing well • Launch customer for veterinary application - capsules undergoing regulatory approvals • Seeking partner for human application Surface coatings and microfluidics • Thick film coatings - prestige au

  15. Slide 15: Conductive Inkjet Technology

    CONDUCTIVE INKJET TECHNOLOGY • Development of MetalJet 6000 high speed web printing line now complete - 3 system orders targeted this calendar year • Initial contracts likely to be in smart card and flexible circuit applications with high volume RFID applications to follow • Other CIT developments p

  16. Slide 16: Applications Universe

    CONDUCTIVE INKJET TECHNOLOGY A p p lic a tio n s U n iv e rs e • F le x c irc u its • R F ID ta g s & sm a rt c a rd s • S e c u rity D e v ice s • P re c is io n C o n n e c tio n s • M o b ile P h o n e a n te n n a e • W in d s c re e n /V is o r h e a te rs • F u n c tio n a l P a ck a g in g •

  17. Slide 17: RFID – Market Size

    CONDUCTIVE INKJET TECHNOLOGY R F ID – M a rk e t S ize 12 10 8 B espoke $bn 6 P allet le vel 4 I t em level 2 0 08 10 14 06 12 16 20 20 20 20 20 20 S o u rc e ID Te c h E x C o p yrigh t C o nd u ctiv e In kjet T e chn o lo g y 2006. w w w .co n d u c tiv e in k je t.c o m N o u n a u th o rise d u

  18. Slide 18: RFID – Frequency Standards

    CONDUCTIVE INKJET TECHNOLOGY R F ID – F re q u e n c y S ta n d a rd s 600 500 U n its 400 (b n ) 300 UHF 200 H F /L F 100 0 2006 20 08 201 0 2012 2014 20 16 S o u rc e ID T e c h E x C o p yrig h t C o n d u c tiv e In k jet T e c h n o lo g y 2006. w w w .c o n d u c tiv e in k je t.c o m N o u n

  19. Slide 19: RFID – Tag Cost Breakdown

    CONDUCTIVE INKJET TECHNOLOGY R F ID – T a g C o s t B re a k d o w n 50 40 C o nve r t U S cents 30 C h ip co n n e ct C h ip P l a ce 20 A nt enn a 10 C h ip 0 T o da y T a r ge t S o u rc e ID T e c h E x C o p y rig h t C o n d u c tiv e In k je t T e c h n o lo g y 2006. w w w .c o n d u c tiv e

  20. Slide 20: Track & Trace – RFID Market

    CONDUCTIVE INKJET TECHNOLOGY T ra c k & T ra c e – R F ID M a rk e t T ie r 1 CONDUCTIVE S o lu tio n INKJET TECHNOLOGY R F ID C h ip R F ID In la y E nd U ser V e n d o rs P ro v id e r P ro v id e r P ro v id e r AN TEN N AS C o p yrig h t C o n d u c tiv e In k je t T e c h n o lo g y 2006. w w w

  21. Slide 21: CIT Approach to Market

    CONDUCTIVE INKJET TECHNOLOGY C IT A p p ro a c h to m a rk e t P ro d u c tio n o f te s t s a m p le s Id e n tify P r o c e s s R e q u ir e m e n t M e ta lje t 6 0 0 0 In la y M a n u fa c tu re rs F S e le c t e q u ip m e n t p a rtn e r e E q u ip m e n t M a k e rs e P re c o In c C h ip M a

  22. Slide 22: Customer Feedback

    CONDUCTIVE INKJET TECHNOLOGY C u s to m e r F e e d b a c k • R e a d - R a n g e P e rfo rm a n c e – A n te n n a s o f a ro u n d < = 0 .5 m ic ro n C u a p p ro v e d fo r UHF – S a m p le s a s s e s s e d b y le a d in g R F ID p la y e rs • P h y s ic a l P e rfo rm a n c e – E n v iro n m e

  23. Slide 23: Conductive Inkjet Technology

    CONDUCTIVE INKJET TECHNOLOGY

  24. Slide 24: Outlook

    OUTLOOK • Our strategy is clear and it is working • Our medical and optical businesses continue to exploit new opportunities, our businesses in low cost regions continue to grow and are delivering good profit margins and we have increased our investment in new technologies and know how • We continue

  25. Slide 25: Appendix 1: Profit & Loss Account

    APPENDIX 1 PROFIT & LOSS ACCOUNT £000’s 2005 2006 Precision products 22,195 22,586 Technical plastics 58,640 54,031 Discontinued 26,839 11,389 107,674 88,006 Operating profit Precision products 3,028 2,977 Technical plastics 2,280 2,554 Discontinued 710 478 Exceptional bad debt - (375) Rationalisati

  26. Slide 26: Appendix 2: Balance Sheet

    APPENDIX 2 BALANCE SHEET £000’s 2005 2006 Tangible fixed assets (inc. assets held for sale) 36,250 31,977 Intangible fixed assets 15,365 24,868 Investments 10 11 Stocks 13,685 7,634 Debtors 22,193 17,836 Creditors (ex. debt) (21,532) (16,823) Pension deficit (26,559) (22,383) Deferred tax 6,398 4,83

  27. Slide 27: Appendix 3: Cashflow

    APPENDIX 3 CASHFLOW £000’s 2005 2006 Cash flow from operating activities Operating cash flow 2,417 3,210 Depreciation 4,555 3,734 Other (1,548) (3,364) Working capital 879 1,087 6,303 4,667 Servicing of finance Net interest (1,410) (1,371) Dividends (613) (644) 4,280 2,652 Taxation 541 - Proceeds fr

Carclo — FY2006 Earnings Presentation on 6ix