Volex plc · LSE:VLX
Volex — H1 FY2011 Earnings Presentation
19 slides from Volex's earnings presentation, November 2010
Slide 1: Half Year Results for 26 weeks ending 3 October 2010
Half Year Results for 26 weeks ending 3 October 2010
Slide 2: Highlights
Highlights 1. Continued strong year on year revenue growth across all end market sectors and across 3 key geographies (Asia, Europe, Americas). 2. Outperforming the sector 3. 5 and 7 consecutive quarters of revenue and profit growth respectively 4. New account wins in all sectors 5. Increased Volex
Slide 3: Consolidated Group Financials
Consolidated Group Financials November 2010
Slide 4: Financial summary
Financial summary 1. Revenues of £157.0m versus £110.2m in prior year – H1 up 43% year over year, with Q2 up 9% over Q1 2. Gross margins stable at 19.6% versus 20.1% – internal improvements offset by external factors 3. Operating profit1 up 136% from £3.5m to £8.4m 4. Profit before tax up 310% from
Slide 5: Strong revenue growth across all sectors
Strong revenue growth across all sectors Quarterly revenue (ongoing operations) by Sector, £m 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Consumer Telecoms / Datacoms Healthcare Industrial £m H1 2010 H1 2009 Growth Consumer 99.6 65
Slide 6: Broad geographic revenue growth
Broad geographic revenue growth Quarterly revenue (ongoing operations) by geographic region, £m 90 80 70 60 50 40 30 20 10 0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Asia Americas Europe India > Asia, Americas and Europe have all grown by greater than 50% in H1 FY11 compared t
Slide 7: Gross margins increasing with margin % holding
Gross margins increasing with margin % holding Quarterly gross margin (ongoing operations) £ Quarterly gross margin (ongoing operations) % 16.0 20.9% 21.4% 14.8 19.9% 19.2% 19.7% 19.6% 19.1% 12.8 12.4 15.0% 11.8 11.6 10.4 10.0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 09 Q4 09 Q1 10 Q2 10 Q
Slide 8: Strong delivery of profits
Strong delivery of profits Quarterly adjusted operating profit, £ Adjusted quarterly operating profit1, % 4.4 4.0 3.8 6.3% 5.9% 3.4 5.6% 5.5% 5.4% 5.4% 3.0 3.1 2.7 3.7% 2.0 2.6% Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 • Reported operating profi
Slide 9: Paying down debt
Paying down debt Quarterly net debt, £ Net working capital efficiency (as % sales) 23.0 17.8 19.2% 18.5% 17.6% 14.8 16.5% 16.9% 16.0% 15.1% 11.2 11.3 12.7% 10.1 7.6 5.0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 • Net debt has increased quarter ov
Slide 10: Individual Sector Performance
Individual Sector Performance November 2010
Slide 11: Consumer sector surging
Consumer sector surging Consumer revenues, £m 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Asia Americas Europe India > Revenue in H1 FY2011 up 53% year on year > Gross margins of 18.2%, down from 22.1% in FY2010 due to increased labour and materi
Slide 12: Telecoms / Datacoms recovering
Telecoms / Datacoms recovering Telecoms / Datacoms revenue, £m 25.0 20.0 15.0 10.0 5.0 0.0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Asia Americas Europe India > Revenue in H1 FY2011 up 10% year on year. Excluding India, year on year revenue growth amounts to 64%. India continu
Slide 13: Healthcare steady progress
Healthcare steady progress Healthcare revenue, £m 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Asia Americas Europe India > Revenue in H1 FY2011 up 26% year on year > Gross margins of 27.6%, up from 21.6% in FY2010, achieved by increasing Volex cont
Slide 14: Industrial demonstrating strong growth
Industrial demonstrating strong growth Industrial revenues, £m 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Asia Americas Europe India > Revenue in H1 FY2011 up 188% year on year > Gross margins of 23.5%, up from 22.7% in FY2010 > Strong growth in telem
Slide 15: Conclusions and outlook
Conclusions and outlook > Successful performance in 1st half > Significant work remains to upgrade internal processes and systems > 2nd half will see consolidation of current revenue basis with focus on margin improvement and cash generation > 2nd half expected to see improved performance in Indian
Slide 16: Appendices: Abridged financial statements
Appendices Abridged financial statements
Slide 17: A. Abridged income statement
A. Abridged income statement H1 2010 (£m) H1 2009 (£m) Revenue 157.0 110.2 Cost of sales (126.1) (88.0) Gross margin 30.9 22.2 Operating expenses (ex. non-recurring items and share based payments) (22.5) (16.1) Operating profit (b/f non-recurring items and share based payments) 8.4 6.1 Non-recurring
Slide 18: B. Abridged statement of financial position
B. Abridged statement of financial position H1 2010 (£m) H1 2009 (£m) Goodwill 1.9 1.9 Property, plant and equipment and intangible assets 8.5 7.7 Other non-current assets 0.5 0.7 Total Non-current Assets 10.9 10.3 Inventories 34.8 23.2 Trade receivables 69.3 50.9 Other receivables 8.6 7.9 Cash and
Slide 19: C. Abridged statement of cash flows
C. Abridged statement of cash flows H1 2010 (£m) H1 2009 (£m) Operating cash flow before working capital and non-recurring items 8.3 5.2 Movement in working capital (5.0) 3.7 Cash generated by operations before non-recurring items 3.3 8.9 Tax and interest payments (3.2) (1.6) Purchases of tangible a