Avon Technologies Plc · LSE:AVON
Avon Technologies — H1 2024 Earnings Presentation
45 slides from Avon Technologies's earnings presentation, May 21, 2024
Slide 1: A Strong First Half: Transformation Gaining Momentum
A STRONG FIRST HALF: TRANSFORMATION GAINING MOMENTUM 2024 INTERIM RESULTS 21 May 2024
Slide 2: An excellent start to the year, improved outlook for FY 2024
An excellent start to the year . . . . . . improved outlook for FY 2024 2
Slide 3: A reminder of our new business unit names
A reminder of our new business unit names: $156.9m $86.9m 500+ 400+ 3 3 . . . the world leader in mission-critical protection 3
Slide 4: Strong H1 performance
AVON PROTECTION PLC Strong H1 performance
Slide 5: All financial KPIs improving, lots still to do
All financial KPIs improving . . . . . . lots still to do 5
Slide 6: H1 2024 highlights
H1 2024 highlights ▲ ▲ . . . on track for a year of strong progress 6
Slide 7: Avon Protection: strong order intake during H1
Avon Protection ▲ 7 . . . strong order intake during H1
Slide 8: Team Wendy: excellent H2 order book
Team Wendy ▲ . . . excellent H2 order book 8
Slide 9: Operating profit bridge
Operating profit bridge 9 . . . operational gearing drives improved profitability
Slide 10: Cash flow: significant improvement in closing net debt
Cash flow 10 . . . significant improvement in closing net debt
Slide 11: Balance Sheet: successful refinancing of $137m facility
Balance Sheet . . . successful refinancing of $137m facility 11
Slide 12: Transformation investments accelerated
Transformation investments accelerated . . . . . . additional opportunities with strong payback potential 12
Slide 13: Strong first half performance driving improved full year outlook
Strong first half performance . . . . . . driving improved full year outlook 13
Slide 14: Excellent strategic progress
AVON PROTECTION PLC = Excellent strategic progress
Slide 15: Delivering our medium-term goals through our STAR strategy
Delivering our medium-term goals . . . REDUCE COSTS CREATE THE AND IMPROVE PLATFORM FOR WORKING SUPERB EXECUTION CAPITAL TURNS LEVERAGE ORGANICALLY GROW INNOVATION TO THE CORE AND SCALE DRIVE LONG UP EMERGING TERM GROWTH OPPORTUNITIES . . . through our STAR strategy 15
Slide 16: Strengthen: creating a fitter, stronger organisation
Strengthen: creating a fitter, stronger organisation . . . . . . which is capable of transforming and growing 16
Slide 17: Transform: initiatives on track
FY23: Transform: initiatives on track . . . . . . with additional opportunities emerging 17
Slide 18: Transform: milestone achievements in H1
Transform: milestone achievements in H1 . . . • • • • • • • • • • • . . . increase the certainty of transformation benefits 18
Slide 19: Operational KPIs improving
AVON PROTECTION PLC 2 Operational KPIs improving
Slide 20: Four operational metrics
Four operational metrics . . . 25% 60% >5 . . . to help deliver our medium-term financial goals 20
Slide 21: Group operational indicators are all improving
Group operational indicators are all improving . . . . . . but there is much more we can do 21
Slide 22: Strong KPI improvement from Avon Protection
Strong KPI improvement from Avon Protection . . . . . . all moving in the right direction 22
Slide 23: Bottom-up improvement actions
Bottom-up improvement actions . . . • • • • • • • • • Cutting machine Cutting machine . . . give us more confidence we can 23 achieve our financial targets
Slide 24: Order book and pipeline expanding
AVON PROTECTION PLC v ‘ Order book and pipeline expanding
Slide 25: Heightening geopolitical risks, increasing need for protection
Heightening geopolitical risks . . . . . . increasing need for protection 25
Slide 26: Advance: stronger pipeline
Advance: stronger pipeline . . . Progress so far . . . Next steps . . . . . . supporting future growth 26
Slide 27: Advance: ramping up production
Advance: ramping up production . . . Progress so far . . . Next steps . . . . . . to meet strong demand 27
Slide 28: A strong portfolio of long-term contracts
A strong portfolio of long-term contracts . . . . . . with more added since the 28 Capital Markets Day
Slide 29: Avon Protection
£ 5 e 7] £ ° £ 1d NOILOILOUd NOAV a
Slide 30: Revolutionise: securing our long-term future
Revolutionise: securing our long-term future . . . • • • . . . through product and process innovation 30
Slide 31: Risks have reduced
Risks have reduced . . . FY 2023: Opportunity update: • Risk update: • ✓ • ✓ • • • . . . increasing optimism for the full year and beyond 31
Slide 32: On track to deliver our medium-term goals
On track to deliver our medium-term goals . . . . . . transformation funnel and results so far give us 32 confidence
Slide 33: We are making excellent progress
We are making excellent progress . . . 1 2 3 4 5 . . . and are excited by the opportunities 33
Slide 34: Appendix
APPENDIX AVON PROTECTION PLC
Slide 35: Our aim and our mission
AVON PROTECTION PLC on a Our aim is for heroes to survive and thrive - whatever the mission Our mission is to provide unparalleled protection for those who protect us
Slide 36: Get FIERCE - values to live by
Get FIERCE - values to live by . . . Fearlessness Integrity Excellence Resilience Collaboration Execution . . . keeping us on track 36
Slide 37: Supportive markets and leading positions drive growth
Supportive markets and leading positions drive growth . . . • • • • . . . with strong recurring revenue underpin 37
Slide 38: Driving up ROIC is a key financial goal
Driving up ROIC is a key financial goal . . . . . . and our operating model is designed to deliver 38
Slide 39: Capital allocation focused on earnings recovery
Capital allocation focused on earnings recovery . . . . . . drives shareholder value and 39 sustainable top-line growth
Slide 40: Abbreviations
AVON PROTECTION PLC b ° Abbreviations A range of masks based on the proven technology of the M50 mask 50 Series system ACH GEN II Second-generation Advanced Combat Helmet ADF Australian Defence Force APR Air purifying respirator CAGR Compound annual growth rate CBRN Chemical, Biological, Radiologica
Slide 41: Technical Guidance
AVON PROTECTION PLC 5 Technical Guidance FY22 FY23 FY24 guidance $m $m $m Research and development expenditure 10.9 10.2 11-13 Of which customer funded 14 1.2 1-2 Group expenditure 95 9.0 10-11 Capitalised development costs 58 3.1 1 Expensed research & development costs 37 5.9 9-10 Other capital exp
Slide 42: Reported to adjusted reconciliation
Reported to adjusted reconciliation 42
Slide 43: SBU revenue by market
SBU revenue by market Avon Protection Team Wendy 43
Slide 44: Avon Protection Portfolio
Avon Protection Portfolio 44
Slide 45: Team Wendy Portfolio
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