Slide 1: FY2021 Annual Results: Strengthening capabilities
HALF YEAR RESULTS FY2021 ANNUAL RESULTS Year ended 4 April 2021 Strengthening capabilities NAT ROTHSCHILD Executive Chairman JON BOADEN Chief Financial Officer
Slide 2: Strongest profit performance for 20 years
Strongest profit performance for 20 years 2 • Group revenue up 13.3% year-on-year • Underlying operating profit up 35.8% to $42.9m • Underlying operating profit margin now 9.7% • Acquisition of DE-KA has created the only truly global power cord manufacturer • Final dividend increased by 10% to 2.2 p
Slide 3: Operational Highlights
Operational Highlights 3 • Excellent customer support during a demanding year • Doubled the production space in our Batam, Indonesia facility to 13,200 sqm • Invested in expanding our sales and marketing teams • Focus on product development in growth areas - particularly Electric Vehicles • Achieved
Slide 4: Financial Review
FINANCIAL REVIEW
Slide 5: Financial Performance
Financial Performance 5 Group revenue $443m $m (except where stated) FY21 FY20 Change $391m $372m Revenue 443.3 391.4 13.3% $320m $322m Underlying operating profit 42.9 31.6 35.8% Underlying operating margin 9.7% 8.1% 160 bps Profit before tax 29.4 15.9 84.9% Underlying basic EPS 32.1 cents 18.2 cen
Slide 6: Revenue by customer sector
Revenue by customer sector 6 Electric Vehicles $53m • We are delighted with the progress • As competition increases we we are making in Electric Vehicles continue to optimise our manufacturing capabilities and • We are expanding our customer base We work with leading further lower our costs for thes
Slide 7: Revenue by customer sector
Revenue by customer sector 7 Medical • We worked very closely with our devices because our customers $116m $113m Medical customers where demand could not access hospitals to install was variable equipment We deliver complex assemblies that are used to deliver critical power, • Sales of smaller items
Slide 8: Margin progression
Margin progression 9.8% 9.7% 88 8.1% • Our year-on-year margin improvement reflects the activities we have undertaken in recent years to fix margins 5.8% • Vertical integration for our power business 3.6% • Higher proportion of complex products with a beneficial mix 2.8% effect • Continuous improvem
Slide 9: Group Cash Flow
Group Cash Flow 9 $m FY21 FY20 Underlying EBITDA 50.8 38.1 Net capital expenditure (7.4) (4.4) Underlying working capital (7.6) 20.8 Net interest and tax (3.7) (5.6) Other including pension (0.4) (0.1) Underlying Free Cash Flow 31.7 48.8 Acquisitions (42.2) (25.6) Adjusting items (0.4) (1.4) Dividen
Slide 10: Strategy and Operations
STRATEGY AND OPERATIONS
Slide 11: Covid-19 impact
Covid-19 impact 11 People • Response to Covid-19 started in February 2020 following restrictions in China • We have kept in place best practice measures to protect our people DRAFT Customers • We have been involved in projects to accelerate the provision of ventilators • Worked closely with customer
Slide 12: Investment case
Investment case 12 DELIVERING OPERATIONAL ACQUISITIONS PROFITABLE EXCELLENCE GROWTH Revenue up Margin up 6 acquisitions 13% year- 160bps DRAFT in 3 years on-year year-on-year We are We are We have a focused on committed to strong balance growth areas continuous sheet and an where we can improvement
Slide 13: How we add value
How we add value 13 Design and engineering Manufacturing • Our technical and product experts work • We are committed to delivering the highest closely with customers to create compelling quality products to suit the most demanding products applications • We create our own products and intellectual •
Slide 14: Investing in growth
Investing in growth 14 Targeted investment in areas where we can achieve excellent growth Additional production Customer projects Creating customer value by investing in value-add opportunities capacity in Turkey to meet Supporting our largest customers with specific capabilities to deliver their pr
Slide 15: Acquisition strategy
Acquisition strategy 15 • Experts in connectors and displays • Complex customised with great sales team harnesses with short lead times • Delivering synergies with other • Revived key customer relationship FY2019 parts of the group • Medical experts with excellent • PCB assembly and box builds quali
Slide 16: Update on DE-KA
Update on DE-KA 16 • Business is trading strongly with production at full capacity • We are investing in two additional automated production lines which will be operational in H2 • We have secured a significant new customer as a result of the acquisition which is expected to deliver incremental reve
Slide 17: Outlook
Outlook 17 • We have delivered a strong start to the year with promising customer growth • We remain confident but mindful of the impacts of component shortages and Covid-19 on our customers • We have an exciting pipeline of acquisition opportunities and our strong balance sheet provides flexibility
Slide 18: Questions?
QUESTIONS?
Slide 19: Volex
Volex