Slide 1: 2015 Results
2015 Results Volution Group plc Full year results to 31 July 2015
Slide 2: Introduction and Agenda
Introduction Agenda Highlights Financial Review Business Update and Outlook Q&A Presentation Ronnie George Ian Dew Chief Executive Officer Chief Financial Officer Volution Group plc Full year results to 31 July 2015 2
Slide 3: Volution Group is a leading supplier of ventilation products
Volution Group is a leading supplier of ventilation products to the residential and commercial construction market in the UK and northern Europe. Volution Group plc Full year results to 31 July 2015 3
Slide 4: The Volution Group
The Volution Group Leading supplier of ventilation products to the residential and commercial construction market in the UK and northern Europe. Ventilation Group Consists of seven key brands, Vent-Axia, Manrose, Fresh, PAX, inVENTer, Brüggemann and Ventilair, focused primarily on the UK, Swedish, N
Slide 5: 2015 Highlights
2015 Highlights Revenue £130.2m Adj Op Profit £29.4m Adj Op Profit Margin 22.6% 120.7 130.2 22.6 102.3 26.5 29.4 22.2 22.0 21.7 2013 2014 2015 2013 2014 2015 2013 2014 2015 Strong revenue growth in the year 7.9% Adjusted operating profit increased Margin improvement in the year of 0.6 (12.4% c
Slide 6: Financial Review
2015 Results Volution Group plc Full year results to 31 July 2015 Financial Review Ian Dew – CFO
Slide 7: Financial Highlights
Financial Highlights Financial Year ended July 2015 Sales, earnings, net debt and EPS all improved significantly in the year. 2015 2014 Movement Movement Change • Sales growth of 12.4% at constant currency (cc). % Constant • Adjusted PBT grew by 20.6% (29.7% cc). Euro and SEK weaker. Revenue (£m) 13
Slide 8: Income Statement Summary
Income Statement Summary Financial Year ended July 2015 Constant Change Revenue Growth of 7.9% (+£9.5m) (12.4% at cc). 2015 2014 Movement Movement currency Constant £m % £m currency 1.0% organic growth (4.9% at cc). 6.9% inorganic growth (7.5% at cc). Revenue (£m) 130.2 120.7 9.5 7.9% 135.7 12
Slide 9: Adjusted and Pro forma Profit Before Tax Reconciled to Reported Profit/(Loss) before Tax
Adjusted and Pro forma Profit Before Tax Reconciled to Reported Profit/(Loss) before Tax Financial Year ended July 2015 Pro Forma Adjustments FY14 To provide a more meaningful comparison of our 2015 2014 Movement performance in the current period we have presented £m £m £m the prior period includi
Slide 10: Consolidated Statement of Financial Position, Summary
Consolidated Statement of Financial Position, Summary 31/07/2015 31/07/2014 £m £m Property, plant and equipment 16.1 15.9 Non Current Assets decreased due to the amortisation of the Intangible Intangible assets – goodwill 51.7 50.1 Assets - Others (mainly customer base and trademarks). Intangible
Slide 11: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge 2015 2014 £m £m Opening Net Debt (42.9) (172.7) Net Debt reduced from £42.9m to £21.2m largely from improved Movements from normal business operations Adjusted Operating Cash Flow. Adjusted EBITDA 32.1 28.5 Adjusted Operating Cash Flow of £27.6m represented
Slide 12: Business update and outlook
2015 Results Volution Group plc Full year results to 31 July 2015 Business update and outlook Ronnie George – CEO
Slide 13: Growth by Market Sector
Growth by Market Sector FY 15 FY 14 Growth Growth (CC)1 Revenue Growth: £m £m % % The total Group grew by +7.9% (constant currency +12.4%). Ventilation Group 111.5 101.3 10.1% 14.9% • organic +1.0% (constant currency +4.9%). OEM 18.7 19.4 (3.6)% (0.6)% • inorganic +6.9% (constant currency +7.5%). Ve
Slide 14: Market Sector Review – UK Residential RMI
Market Sector Review – UK Residential RMI 2015 2014 UK Residential RMI % change £m £m Revenue 36.6 37.0 (1.1)% UK Residential RMI Private RMI +3.3% Strong growth in “silent” products and expected to continue – silence and aesthetics are the key issues. New Silent Fan launched in June 15 with n
Slide 15: Market Sector Review – UK Residential New Build
Market Sector Review – UK Residential New Build 2015 2014 UK Residential New Build % change £m £m Revenue 17.2 14.6 17.7% UK Residential New Build • Increased unit value per dwelling, as penetration of heat recovery grows and increasing house construction. • Improved margins as we switched away from
Slide 16: Market Sector Review – UK Commercial
Market Sector Review – UK Commercial 2015 2014 UK Commercial % change £m £m Revenue 16.2 16.4 (1.3)% UK Commercial • Energy efficiency legislation driving adoption of higher specification products. • EC/DC Kitchen Axia fan grew strongly in the year. • Focussed more on RMI applications than new comme
Slide 17: Market Sector Review – UK Export
Market Sector Review – UK Export 2015 2014 UK Export % change £m (CC) £m Revenue 8.9 7.1 25.2% UK Export • Significant growth in sales of heat recovery systems mainly in Belgium, Denmark, Eire and Switzerland. • Strong sales in New Zealand where Manrose is the leading brand for residential RMI and n
Slide 18: Market Sector Review – International
Market Sector Review – International 2015 2014 Nordics % change £m (CC) £m Revenue 25.5 22.7 12.5% Revenue growth in Sweden, Norway and Denmark consolidating our leadership position in Sweden for both “trade” and “retail” channels. Significant synergies delivered through the combination of the F
Slide 19: Market Sector Review – International
Market Sector Review – International 2015 2014 Germany % change £m (CC) £m Revenue 12.0 3.5 243.2% Germany • Full year effect of InVENTer acquired April 2014. • Synergies include lower material costs, faster new product development and refocussed sales effort. • Introduction of the new “iv12 SMART
Slide 20: Market Sector Revenue – OEM (Torin-Sifan)
Market Sector Revenue – OEM (Torin-Sifan) 2015 2014 OEM (Torin-Sifan) % change £m (CC) £m Revenue 19.3 19.4 (0.6)% Boiler spares – difficult market environment due to mild winter although improved in H2/15 versus H1/15 performance. New factory commissioned 1st September 2014. Launch of new 3 p
Slide 21: M&A Activity and Update
M&A Activity and Update • Two acquisitions completed in the last 6 months (Brüggemann Energiekonzepte and Ventilair Group (BE/NL). • Considerable ongoing activity, focussing on (mainly) Northern European targets in the ventilation and related market space. • Consistent and strong cash generation, th
Slide 22: Summary and Outlook
Summary and Outlook • The year has started positively with a very strong performance in the Nordics helped by new product launches. • Mixed results in the UK as softness in the residential RMI market was partly offset by growth in residential new build. • We remain focussed on delivering profitable
Slide 23: Thank you Q&A
' @volution group ank you Q&A
Slide 24: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as