Slide 1: 2016 H1 Results
2016 H1 Results Volution Group plc Half year results to 31 January 2016
Slide 2: Agenda
Introduction Agenda Highlights Financial Review Business Update and Outlook Q&A Presentation Ronnie George Ian Dew Chief Executive Officer Chief Financial Officer Volution Group plc Half year results to 31 January 2016 2
Slide 3: Strong results in line with expectations; Three Strategic Pillars
Strong results in line with our expectations. Interim dividend up 14%. Three Strategic Pillars Organic growth in our core markets Growth through a disciplined and value adding acquisition strategy Development of OEM (Torin-Sifan) range and customer base Volution Group plc Half year results to 31 Jan
Slide 4: 2016 Half year highlights
2016 Half year highlights Revenue £70.1m Adj Op Profit £15.2m Adj Op Profit Margin 21.7% 64.3 70.1 15.2 22.5 21.7 21.7 58.2 14.0 13.1 2014 2015 2016 2014 2015 2016 2014 2015 2016 Strong revenue growth in the period Adjusted operating profit increased Margin consistent with 2015 despite initial
Slide 5: Financial Review
2016 H1 Results Volution Group plc Half year results to 31 January 2016 Financial Review Ian Dew – CFO
Slide 6: Financial Highlights
Financial Highlights Half year results to 31 January 2016 Sales, earnings, and EPS all improved significantly in the half year to 31 January 2016. 6 months to 6 months to Movement • Sales growth of 13.0% at constant currency (cc). Jan 2016 Jan 2015 Movement Movement in Constant • Adjusted PBT grew b
Slide 7: Income Statement Summary
Income Statement Summary Half year results to 31 January 2016 6 months 6 months Constant Movement Revenue Growth of 9.0% (+£5.8m) (13.0% at cc). to Jan 2016 to Jan 2015 Movement Movement currency in Constant Revenue growth would have been £2.6m higher at £m £m £m % £m currency constant currency.
Slide 8: Adjusted Profit Before Tax Reconciled to Reported Profit before Tax
Adjusted Profit Before Tax Reconciled to Reported Profit before Tax Half year results to 31 January 2016 H1 2016 H1 2015 Movement Adjustments for exceptional items: £m £m £m Exceptional items: For the period H1 2016 all exceptional items Adjusted Profit before Tax 14.6 12.7 1.9 relate to acquisi
Slide 9: Consolidated Statement of Financial Position, Summary
Consolidated Statement of Financial Position, Summary 31/01/2016 31/07/2015 £m £m Property, plant and equipment 18.0 16.0 Non Current Assets increased by £18.5m, mainly as a consequence of acquisitions Intangible assets – goodwill 62.3 51.7 and FX Intangible assets – others 106.8 100.9 Deferred ta
Slide 10: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge 6 months 6 months to Jan to Jan 2016 2015 £m £m Net Debt increased to £39.0m: three acquisitions in the period. Opening Net Debt (21.2) (42.9) Adjusted Operating Cash Flow of £11.4m. Movements from normal business operations Cash conversion of 74.6% (2015:
Slide 11: Business update and outlook
2016 H1 Results Volution Group plc Half year results to 31 January 2016 Business update and outlook Ronnie George - CEO
Slide 12: Growth by Market Sector
Growth by Market Sector Revenue Revenue Growth: H1 2016 H1 2015 Growth Growth (CC)1 £m £m % % The total Group grew by +9.0% (constant currency +13.0%). Ventilation Group 59.7 54.4 9.7% 14.0% • organic -1.1% (constant currency +2.1%). OEM 10.4 9.9 5.2% 8.0% • inorganic +10.1% (constant currency +10.9
Slide 13: Market Sector Review – UK Residential RMI
Market Sector Review – UK Residential RMI H1 2016 H1 2015 UK Residential RMI % change £m £m Revenue 17.0 17.9 (5.0)% UK Residential Private RMI -2.4% Destocking by two major customers in H1/16 Upsell initiative of silence continues to gain momentum assisted by high end “app” controlled fan lau
Slide 14: Market Sector Review – UK Residential New Build
Market Sector Review – UK Residential New Build H1 2016 H1 2015 UK Residential New Build % change £m £m Revenue 8.3 7.8 7.1% UK Residential New Build Revenue growth was only 7.1% although order intake growth was >10% over same period prior year. Continued investment in product portfolio with the
Slide 15: Market Sector Review – UK Commercial
Market Sector Review – UK Commercial H1 2016 H1 2015 UK Commercial % change £m £m Revenue 8.3 8.0 3.6% UK Commercial • Benefited from the acquisition of Diffusion on 21 Dec 2015 increasing exposure to attractive new build market. • Integration is progressing in line with our expectations. • Synergie
Slide 16: Market Sector Review – UK Export
Market Sector Review – UK Export H1 2016 H1 2015 UK Export % change £m (CC) £m Revenue 3.0 3.9 (23.7)% UK Export • Key markets • Eire • New Zealand • Rest of Europe • Sales decline of 2.0% at cc (excluding Ventilair sales – now consolidated) • Significant increase in sales of heat recovery in Eire c
Slide 17: Market Sector Review – International (Nordics)
Market Sector Review – International H1 2016 H1 2015 Nordics % change £m (CC) £m Revenue 13.7 11.6 18.3% Wall inlet grill Strong growth particularly in Sweden due to the government stimulus for RMI ending Dec 15 (includes some OEM business which will not repeat). Growth in both the high end fan
Slide 18: Market Sector Review – International (Central Europe)
Market Sector Review – International H1 2016 H1 2015 Central Europe % change £m (CC) £m Revenue 11.7 5.3 122.7% This sector benefited from the acquisition of Bruggemann in April 15 and Ventilair on 5 August 2015. (Consists of sales from BE, NL and DE) Ventilair successfully integrated and market
Slide 19: Market Sector Revenue – OEM (Torin-Sifan)
Market Sector Revenue – OEM (Torin-Sifan) H1 2016 H1 2015 OEM (Torin-Sifan) % change £m (CC) £m Revenue 10.7 9.9 8.0% Internal promotion of new MD improving the commercial focus of the business. Significant service and financial benefits from the factory opened in 2014. EC/DC revenue continues
Slide 20: M&A Activity and Update
M&A Activity and Update • Three acquisitions completed in the 6 month period (Ventilair Group, Welair and Diffusion). • M&A focus will continue to be residential and commercial ventilation in Europe. • Our continued strong cash generation will support these activities. • Following seven acquisitions
Slide 21: Summary and Outlook
Summary and Outlook • Confident of delivering against our full year expectations. • Broadening base of activities. • Acquisitions continue to add to our growth. • Public RMI remains weak but there are early signs of improvement in Private RMI in the UK. Volution Group plc Half year results to 31 Jan
Slide 22: Thank you Q&A
@volution group Vent-Axia Tie we Thank you Q&A
Slide 23: Appendix
2016 H1 Results Volution Group plc Half year results to 31 January 2016 Appendix
Slide 24: Volution Group plc snapshot
Volution Group plc snapshot VENTILATION GROUP 85% of Revenue A leader in: > UK residential ventilation products market > Swedish residential refurbishment ventilation products market A leading supplier of ventilation products to the residential and commercial construction market in > German decentra
Slide 25: Volution Group is a leading supplier of ventilation products
Volution Group is a leading supplier of ventilation products to the residential and commercial construction market in the UK, Nordics and Central Europe. Volution Group plc Half year results to 31 January 2016 25