Slide 1: Healthy air, sustainably – Interim results to 31 January 2022
New image to be supplied Healthy air, sustainably Volution Group plc Interim results to 31 January 2022
Slide 2: Agenda
Agenda Overview Financial Review Business Review and Strategy Summary and Outlook Ronnie George Chief Executive Officer Q&A Andy O’Brien Chief Financial Officer Volution Group plc Interim results to 31 January 2022 1
Slide 3: Overview
Ronnie George – CEO Overview Interim results to 31 January 2022 Testing facility, Löberschütz, Germany
Slide 4: H1 2022 summary
H1 2022 summary Early and decisive action on supply chain management and pricing delivers strong revenue and profit growth Revenue Adjusted operating profit Reported profit Strong growth +13.6% +15.0% +46.0% £149.6m £31.9m £23.3m Strategic investment Cash conversion Acquisition spend Leverage in inv
Slide 5: Our Sustainability strategy
Our Sustainability strategy Progress with our sustainability initiatives Product Engineer sustainable solutions Our Sustainability strategy We are committed to a low-carbon future with the health and wellbeing of people and the planet at its core Planet People Improve Connect environmental people pe
Slide 6: KPI – product
KPI – product Target 70% of our sales revenue from low-carbon Product products by the end of 2025 2020 59.0 2021 62.1 H1 2022 65.1 Engineer sustainable solutions 2025 target 70.0 ClimaRad Ventura Heat Recovery unit • Low-carbon revenue streams are growing fastest. • Recent acquisitions are low-carbo
Slide 7: KPI – planet
KPI – planet Target 90% of the plastic that we process in our Planet own factories to be from recycled sources by the end of 2025 2020 56.0 2021 59.7 Recycled plastic injection Improve environmental moulding in Reading, UK H1 2022 58.0 performance 2025 target 90.0 • The start of H1 2022 was problema
Slide 8: KPI – people
KPI – people Target zero reportable accidents People • In the first half of 2022 we have advanced our people reporting framework and agreed a range of new KPIs that will be introduced in the 2022 Annual Report and Accounts. • Six reportable accidents in H1 2022. Reportable incident frequency rate of
Slide 9: Financial Review
Andy O’Brien – CFO Financial Review Interim results to 31 January 2022 Aluminium plate production, Bitola, North Macedonia
Slide 10: Financial highlights
Financial highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £149.6m £31.9m 21.3% +13.6% +16.9%cc +15.0% +0.2pp 2022 149.6 2022 31.9 2022 21.3 2021 131.7 2021 27.7 2021 21.1 2020 118.8 2020 21.8 2020 18.3 2019 114.8 2019 20.2 2019 17.6 2018 98.7 2018 18.3 2018 18.5
Slide 11: Revenue
Revenue Revenue growth 13.6% (+16.9% at cc) Organic revenue growth 5.1% (+7.9% at cc) 160 11.9 149.6 150 2.8 140 3.7 131.7 3.9 130 (4.4) 120 £m 110 Organic growth +7.9% cc Inorganic 100 growth +8.5% 90 80 H1 2021 FX UK Europe Australasia Inorganic H1 2022 Volution Group plc Interim results to 31 Jan
Slide 12: Group operating profit margin up 0.2pp to 21.3%
Group operating profit margin up 0.2pp to 21.3% Target 20% Group H1 2022 21.3% • GROUP margins +0.2pp to 21.3% from 21.1%. H1 2021 21.1% H1 2020 18.3% United Kingdom H1 2022 19.9% • UK margins -1.6pp to 19.9% from 21.5%. H1 2021 21.5% H1 2020 18.9% Continental Europe H1 2022 25.8% • CONTINENTAL EURO
Slide 13: Net debt and cash flow
Net debt and cash flow (53.8) (79.2) 0 10 36.3 (16.5) 20 30 (3.6) (1.4) (6.3) 40 Movement in (1.7) Capital Interest (8.7) working capital expenditure £m 50 paid Tax paid Payment 0.9 (24.4) EBITDA of lease 60 1 Aug 21 Dividend FX and liabilities other 70 80 Acquisition 31 Jan 22 90 Cash conversion 50
Slide 14: Business Review and Strategy
Ronnie George – CEO Business Review and Strategy Interim results to 31 January 2022 Injection moulding, Reading, UK
Slide 15: Operating segments
Operating segments 34.9% United Kingdom Continental Europe Australasia % of Volution Group revenue (by segment) United Kingdom (46.7%) Continental Europe (38.4%) Australasia (14.9%) £69.8m (+5.8% cc) £57.4m (+34.7% cc) £22.4m (+13.8% cc) Volution Group plc Interim results to 31 January 2022 14
Slide 16: Continued geographic diversification
Continued geographic diversification Non-UK revenue 53.3% of Group (H1 2021: 49.5%) 38.4++14.946.7Q 18.1+20.3+14.916.08.010.53.84.04.4Q 38.4 % of Volution Group plc revenue % of Volution Group plc revenue (by sector) OEM OEM UK Export 4.4% 4.0% Nordics UK Export 18.1% 3.8% Continental UK Europe Comm
Slide 17: UK
UK 38++1547O 38 Total H1 2022 H1 2021 growth (cc) £m £m % % of Volution Group plc 46.7% revenue UK revenue 69.8 66.5 5.8 Residential RMI 23.8 21.8 9.3 Residential New Build 12.0 12.6 (5.2) • Revenue grew by 5.0% (5.8% at cc) with adjusted operating profit of £13.9 million, a slight decrease on the p
Slide 18: Continental Europe
Continental Europe 38+15+47O 38 Total H1 2022 H1 2021 growth (cc) % of Volution Group plc £m £m % 38.4% revenue Continental Europe revenue 57.4 45.1 34.7 Nordics 27.0 25.7 10.8 • Revenue in Continental Europe was £57.4 million, with growth Central Europe 30.4 19.4 66.1 of £12.3 million, an increase
Slide 19: Australasia
Australasia 38++1547O 38 Total H1 2022 H1 2021 growth (cc) £m £m % % of Volution Group plc 14.9% revenue Australasia revenue 22.4 20.1 13.8 Adjusted operating profit 4.9 4.4 11.4 Adjusted operating profit margin % 22.1% 22.0% 0.1pp • Revenue in Australasia was £22.4 million, growing by 10.9% (13.8%
Slide 20: Summary and Outlook
Summary and Outlook Interim results to 31 January 2022 Injection moulding, Växjö, Sweden
Slide 21: Summary and Outlook
Summary and Outlook Summary Outlook • Early and decisive action on supply chain • The macroeconomic and geo-political management and price increases across all backdrop resulting from the devastating invasion of our markets has helped deliver: of Ukraine by Russia has created substantial • Strong re
Slide 22: Thank You Q&A
Thank You Q&A Interim results to 31 January 2022
Slide 23: Appendix
Appendix Interim results to 31 January 2022
Slide 24: Financial summary
Financial summary H1 2022 H1 2021 Movement Revenue (£m) 149.6 131.7 13.6% Revenue (cc) (£m) 154.0 131.7 16.9% Gross margin (%) 47.7 48.4 (0.7)pp Adjusted operating profit (£m)1 31.9 27.7 15.0% Adjusted operating margin (%)1 21.3 21.1 0.2pp Adjusted profit before tax (£m)1 30.0 26.1 14.7% Adjusted EP
Slide 25: Reconciliation of adjusted to reported profit
Reconciliation of adjusted to reported profit H1 2022 H1 2021 Movement • Acquisition-related costs: £m £m £m Adjusted profit before tax 30.0 26.1 3.9 • £0.1 million (H1 2021: £0.4 million) of professional fees in respect of the Items excluded from adjusted acquisitions during the year. measures: Acq
Slide 26: Consolidated statement of financial position summary
Consolidated statement of financial position summary 31 January 31 July 31 January 31 July 2022 2021 2022 2021 £m £m £m £m Non-current assets Current liabilities Property, plant and equipment 27.7 23.9 Trade and other payables (43.0) (47.4) Right-of-use assets 24.0 24.5 Refund liabilities (11.8) (10
Slide 27: Cash flow/net debt
Cash flow/net debt 31 January 31 January 2022 2021 Movement Movement £m £m £m % Adjusted EBITA (A) 32.6 28.4 4.2 14.9% Depreciation 3.7 3.2 0.5 Adjusted EBITDA 36.3 31.6 4.7 14.7% Change in net working capital (17.5) (0.6) (16.9) Share-based payments 1.0 1.1 (0.1) Net investment in fixed assets (3.6
Slide 28: Cautionary statement
Cautionary statement 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