Slide 1: Acquisition of Team Wendy: Creating a global leader in helmets
ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 2: Highlights
Highlights Acquisition of Team Wendy creates a global leader in Military and First Responder helmets Team Wendy is a high-quality complementary business Cash consideration of $130m on a cash and debt free basis, representing 9.7 times FY19 EBITDA Revenue of $44.2m in FY19 generating $13.4m of EBITDA
Slide 3: Agenda
Agenda Strategic rationale Team Wendy Creating a global leader in helmets Attractive financial returns Summary Questions 3 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 4: Strategic rationale
Strategic rationale 4 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 5: Successful execution of strategy
Successful execution of strategy Growing Selective Value the product enhancing core development acquisitions 5 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 6: Has transformed the business into a leading provider of personal protection
… has transformed the business into a leading provider of personal protection New Management team and Acquisition of Helmets & Armor Proposed acquisition of Strategy Team Wendy A leader in next generation ballistic Following the appointment of the new management during helmets and body armor with Cr
Slide 7: Acquisition of Team Wendy
7 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 8: Overview
Overview Family owned business, founded in 1997 in Cleveland, Ohio Focused on designing and manufacturing head protection systems to prevent traumatic brain injury Recognised as market leader in liner and retention systems Experienced management team led by Jose Rizo-Patron CEO since 2011 Entered he
Slide 9: Complementary product portfolio
Complementary product portfolio Helmets Liner and Full range of tactical bump retention systems helmets, ballistic combat helmets Leading liner and retention and search & rescue helmets as system technologies, used in U.S. well as related accessories DOD helmets and Team Wendy product range Provides
Slide 10: Highlights, Customer, Geography, Product
Highlights Customer • Strong brand heritage • Proprietary technology Military • Experienced management team with a track $44.2m record of delivering growth 2019 Revenue First Responder • Diversified international customer base, with products sold in over 50 countries Geography Product 5% Helmets Nor
Slide 11: Financial track record
Financial track record 3 YEAR FINANCIAL PERFORMANCE $m 2019 2018 2017 CAGR (%) Revenue 44.2 29.4 27.2 27.5% EBITDA 13.4 8.2 10.5 13.0% EBITDA % 30.3% 27.9% 38.6% Operating profit 12.1 7.4 9.6 12.3% Net assets 47.5 35.9 29.1 Financial profile consistent with our strategic growth objectives 11 ACQUISI
Slide 12: Creating a global leader in helmets
Creating a global leader in helmets ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 13: Creating a global leader in helmets
Creating a global leader in helmets Existing Helmets & Armor business focussed on next generation ballistic helmets and body armor for the U.S. DOD. Team Wendy adds leading helmet liner and retention systems. Established positions in Rest of World Military and First Responder helmet markets, with pr
Slide 14: A world leading helmet product range
A world leading helmet product range U.S. DOD Existing Ceradyne next generation helmets range A broader Military and First Responder Team Wendy helmet product Rest of ballistic and portfolio with World impact protection Military helmets stronger capabilities and wider routes to market Team Wendy Fir
Slide 15: Our expanded product portfolio
Our expanded product portfolio A leading Respirators Powered Supplied Air Air provider of life critical personal protection systems Broadened Liner & helmet Body Retention range Armor Systems 15 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 16: Attractive financial returns
Attractive financial returns ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 17: Attractive financial returns
Attractive financial returns $130m cash acquisition, meeting our stated financial and commercial criteria Compelling opportunity to reinvest proceeds from the milkrite | InterPuls divestment and replace earnings stream Organic revenue growth, margins and cash conversion in line with our strategic ob
Slide 18: Strong balance sheet to fund future growth
Strong balance sheet to fund future growth Cash consideration of $130m(1) on a cash and debt free basis, plus $8m deal costs; being £106m in total at the current exchange rate Financed by milkrite | InterPuls net proceeds of £140m (1) after deal costs, tax and £20m UK pension contribution Net cash a
Slide 19: Timetable
Timetable Posting of class 1 General Completion milkrite | InterPuls circular Meeting divestment On track with Targeted by Anticipated on Expected completion expected 11 September 28 September Q1 of FY21 Q1 FY21 19 ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 20: Summary
Summary ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 21: Key strategic takeaways
Key strategic takeaways Another significant acquisition, further strengthening our position as a leading provider of personal protection Creating a global leader in Military and First Responder helmets High-quality complementary business, with an experienced management team and a strong record of gr
Slide 22: Questions
Questions ACQUISITION OF TEAM WENDY Creating a global leader in helmets
Slide 23: Disclaimer
Disclaimer This presentation, which has been prepared and issued by and is the sole responsibility of Avon Rubber p.l.c. (the “Company”), is strictly confidential and is being supplied to you solely for information purposes only in connection with the proposed acquisition by a wholly-owned subsidiar