Luceco Plc · LSE:LUCE
Luceco — FY2017 Earnings Presentation
21 slides from Luceco's earnings presentation, May 2018
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION MAY 2018
Slide 2: Agenda
Luceco plc | Full year results presentation 2017 AGENDA Introduction and overview John Hornby Financial review Matt Webb Questions 2
Slide 3: Introduction: Who we are
Luceco plc | Full year results presentation 2017 INTRODUCTION Who we are Luceco is a rapidly growing manufacturer and distributor of high quality and innovative LED lighting products, wiring accessories and portable power products for a global £167.6m Established customer base 2016: £133.7m UK and
Slide 4: Overview
Luceco plc | Full year results presentation 2017 OVERVIEW Operational Financial Broad‐based revenue growth across all Revenue increased in the year by 25.4% to product categories £167.6m (2016: £133.7m) Continuing investment in higher margin sales On a constant currency basis, revenue grew o
Slide 5: Well Positioned for Continued Growth
Luceco plc | Full year results presentation 2017 WELL POSITIONED FOR CONTINUED GROWTH 5
Slide 6: Financial Overview
Luceco plc | Full year results presentation 2017 FINANCIAL OVERVIEW 6
Slide 7: Income Statement
Luceco plc | Full year results presentation 2017 INCOME STATEMENT Adjusted1 Adjusted1 Prior year co‐operatives restated2 – explained later £m 2017 2016 Revenue 167.6 133.7 Continued strong revenue growth of 25.4% Growth % 25.4% 29.8% 140 bps reduction in gross margin due to input cost Gross pr
Slide 8: 2017 Revenue Growth
Luceco plc | Full year results presentation 2017 2017 REVENUE GROWTH By year By country % 62.7% 29.8% 25.3% 25.3% 25.4% 50.0% 38.8% 21.1% 25.4% 2014 2015 2016 2017 UK Europe Middle East Rest of World Total By component By segment % 25.5% 25.4% 3.1% 8.2% 3.7% 41.1% 33.8% 25.4% 17.3% 18.6% 13.6% H1 20
Slide 9: Gross Margin
Luceco plc | Full year results presentation 2017 GROSS MARGIN Gross margin bridge Copper price per tonnes % Copper price USD per tonne 7,500 +21.4% 35.8% (5.5%) 7,000 6,500 6,000 5,500 5,000 H1 H2 30.3% (0.4%) 2017 2017 (0.6%) USD:CNY (0.4%) 7.0 28.9% 6.9 6.8 ‐4% 6.7 6.6 6.5 6.4 H1 H2 2017 2017 9
Slide 10: Segmental Performance
Luceco plc | Full year results presentation 2017 SEGMENTAL PERFORMANCE LED Lighting Wiring Accessories Chg ’17 Chg ’17 £m 2017 2016 v '16 Chg % £m 2017 2016 v '16 Chg % Revenue 47.4 33.6 13.8 41.1% Revenue 72.7 64.0 8.7 13.6% Adjusted operating profit 2.3 2.5 (0.2) (8.0)% Adjusted operating profit 1
Slide 11: Segmental Performance
Luceco plc | Full year results presentation 2017 SEGMENTAL PERFORMANCE Portable Power Ross and other Chg ’17 Chg ’17 £m 2017 2016 v '16 Chg % £m 2017 2016 v '16 Chg % Revenue 41.6 31.1 10.5 33.8% Revenue 5.9 5.0 0.9 18.0% Adjusted operating profit 2.0 2.2 (0.2) (9.1)% Adjusted operating profit 0.1 0
Slide 12: Prior Year Restatement and Cost Reclassification
Luceco plc | Full year results presentation 2017 PRIOR YEAR RESTATEMENT AND COST RECLASSIFICATION Two types of adjustment made to 2016 Previously comparatives: reported Inventory Interco Sub total Reclass Restated £m 2016 allocation rec 2016 of costs 2016 Revenue 133.7 133.7 133.7 – Correction of
Slide 13: Kingfisher Lighting Acquisition
Luceco plc | Full year results presentation 2017 KINGFISHER LIGHTING ACQUISITION Nationwide UK supplier of exterior lighting products: – Road and street LED lighting systems and controls – High mast LED luminaires – Provider of installation and maintenance services Kingfisher Lighting acquired f
Slide 14: Balance Sheet
Luceco plc | Full year results presentation 2017 BALANCE SHEET Chg '17 Chg % £m 2017 2016 v '16 Kingfisher Lighting acquired for £9.7m, including Non‐current assets £8.9m of intangibles Intangible assets 23.7 12.9 10.8 83.7% Tangible assets 23.5 20.6 2.9 14.1% Modest growth in working capital re
Slide 15: Cash Flow
Luceco plc | Full year results presentation 2017 CASH FLOW Chg '17 Cash conversion >100% due to improved £m 2017 2016 v '16 Chg % working capital efficiency Adjusted EBITDA 19.1 17.7 1.4 7.9% Increase in capex to expand Chinese Adjustments (0.5) (2.6) 2.1 19.2% manufacturing capacity and maintai
Slide 16: 2018 Will Be a Year of Improvement
Luceco plc | Full year results presentation 2017 2018 WILL BE A YEAR OF IMPROVEMENT Challenges: Opportunities: UK retail (25% of Group revenue): UK non‐retail: – destocking – Trade – underlying demand – Projects USA Rest of World excluding USA Full year effect of FX / Copper headwinds Pr
Slide 17: Summary & Outlook
Luceco plc | Full year results presentation 2017 SUMMARY & OUTLOOK 2017: A challenging year Competitive position remains strong & strategy unchanged 2018: Single‐digit revenue growth Improvement in profit and margins likely to be back‐end weighted. One off costs from investment in finance
Slide 18: Questions
Luceco plc | Full year results presentation 2017 QUESTIONS 18
Slide 19: Appendix
Luceco plc | Full year results presentation 2017 APPENDIX 19
Slide 20: Income Statement – Adjusted & Statutory
Luceco plc | Full year results presentation 2017 INCOME STATEMENT – ADJUSTED & STATUTORY Adjusted Reported Adjusted Reported The Group uses Alternative £m 2017 Adjs 2017 2016 Adjs 2016 Performance Measures to provide a Revenue 167.6 167.6 133.7 133.7 more meaningful understanding of the Growth % 2
Slide 21: Disclaimer
Luceco plc | Full year results presentation 2017 DISCLAIMER This presentation and information communicated verbally to you may contain certain projections and other forward‐looking statements with respect to the financial condition, results of operations, businesses and prospects of Luceco plc. Thes