Strix Group Plc · LSE:KETL
Strix — H1 2021 Earnings Presentation
34 slides from Strix's earnings presentation, September 2021
Slide 1: Investor Presentation Interim Results
Investor Presentation Interim Results Period ended 30 June 2021 Please consider the environment before This document is the property of Strix Ltd and the information contained is CONFIDENTIAL. The drawings and information may not be reproduced or used without the prior written consent of Strix Ltd.
Slide 2: Financial, Operational and Strategic Highlights
Financial, Operational and Strategic Highlights
Slide 3: Highlights
Highlights Another Resilient Performance Financial Operational Strategic • Revenue increased by 57.6% versus • Launching of sustainability report • Remain on track to deliver medium- prior year and 24.6% versus 2019 and “Sustainable. Innovative. term targets to double the Group's Dependable.” strate
Slide 4: Medium Term Targets
Medium Term Targets Remain on track to secure medium term objectives set out in 2020 Objectives Updates ✓ Significant growth in revenue versus both 2020 and Double revenues by 2025 primarily through organic 1 growth in Water and Appliance Categories 2019 through underlying organic growth and LAICA a
Slide 5: Financials & New Factory
Financials & New Factory
Slide 6: Financial Highlights
Financial Highlights Revenue £m Adjusted Gross Profit1 £m Adjusted EBITDA1 £m 57.6% 48.6% 27.9% 2021 54.7 2021 20.5 2021 17.4 2020 34.7 2020 13.8 2020 13.6 2019 43.9 2019 16.7 2019 14.9 Strong revenue growth driven by recovery of Underlying gross margins remained stable Increase in costs attributed
Slide 7: Profit and Loss Summary
Profit and Loss Summary Change %2 Change %2 £m H1 2021 H1 2020 H1 2019 21-20 21-19 Commentary Revenue 54.7 34.7 43.9 57.6% 24.6% Revenue: increased by 57.6% versus last year and 24.6% against 2019 driven a Adjusted Gross profit1 20.5 13.8 16.7 48.6% 22.8% recovery of a pandemic affected first half l
Slide 8: Gross Margin Analysis
Gross Margin Analysis • Stable margin in highly profitable Kettle Controls business despite headwinds, providing cash flow security for the Group and ensuring dividend sustainability 1 Kettle Controls +0.1% • • Margin growth driven by significant regulated market sales growth and product mix Margin
Slide 9: Cash Flow
Cash Flow Commentary Financing & Tax: £2.3m outflow (H1 2020: £1.4m outflow) includes bank interest, IFRS16 lease payments and tax payments Net working capital: £0.4m outflow (H1 2020: £2.8m outflow) driven by higher stocks held at year-end to meet increased demand in H2 Exceptional & Others: £2.6m
Slide 10: Net Debt
Net Debt Net debt Net debt/adjusted EBITDA ratio at Net working capital draw from at 30 June 20211 30 June 2021 trough to peak £46.0m 1.1x £4.7m £37.2m at 31 December 2020 1.0x at 31 December 2020 Intra year for 2021 Cash and facility headroom Bank covenant requirement: Maximum intra year 2021 at 30
Slide 11: New Factory Completed
New Factory Completed Key statistics Completed on +80% c.£19.95m time and on Increase in Total cost budget production capacity 750 73% 3.65m/week Employees Assembly lines Production volume transferred automated per week 11
Slide 12: Capital Allocation
Capital Allocation The earnings stability of the Strix business model allows us to continue to invest to realise full growth potential • Operating capital expenditure of £8.5m in H1 2021 demonstrates Strix’s continued investment In its manufacturing and development assets to support our strategic gr
Slide 13: Kettle Control Category
Kettle Control Category 13
Slide 14: Kettle Controls Category
Kettle Controls Category Market rebounds coupled with strong trading resulted in +1% overall value share growth Overview of the Kettle Market Highlights The global Covid-19 pandemic has had significant impacts on the Kettle Market over the past 18 months ▪ Specification gains at European Discounters
Slide 15: Kettle Controls Category Product Roadmap
Kettle Controls Category Product Roadmap 2021 2022 2023 Onwards U90 11A – Range expansion to Tactical adaptations to address Next Generation Integrated Control optimise pricing strategy emerging customer needs & opportunities Next Generation Split Switch Control U90 flying lead SKU – reduced system
Slide 16: Kettle Control Category - Growth
Kettle Control Category - Growth Strong year on year H1 growth due to start of pandemic in 2020 and bounce back in 2021 2020 – 2025 2020 H1 – 2021 H1 2020 – 2021 FY FORECAST CAGR: c.3% Growth: 35% Growth: c.8% 2020 2025 H1 '20 H1 '21 2020 2021 Sept Forecast 2021 H1 growth “bounced back” following sl
Slide 17: Water Category
Water Category 17
Slide 18: Water Category
Water Category Strong start of the 5-year Strategic Plan with H1 sales up 98% vs. prior year including Laica integration; full year outlook is positive with the launch of the new products and continued expansion into NAM Residential POU Market Size ($bn) and Growth (%) by Region (2019-24)1 Highlight
Slide 19: Water Category Product Roadmap
Water Category Product Roadmap 2021 2022 2023 Onwards • Launch of Universal & Evolve filters • Expansion of USA & Canada Market with introduction of • Extended range of sustainable Jugs in the USA & Canada Aqua Optima & Laica Branded Ranges & Dispensers • Launch of Tap Filter Platform • New premium
Slide 20: Water Category - Growth
Water Category - Growth Financial Performance 2020 – 2025 2020 H1 – 2021 H1 2020 – 2021 FY FORECAST CAGR: 27% Growth: 98% Growth: c. 100% 2020 2025 H1 '20 H1 '21 2020 2021 Sept Forecast 2021 growth driven by addition of Laica, and expansion of existing products into new markets Next stage of growth
Slide 21: Appliances Category
= ao) Appliances Category
Slide 22: Small Domestic Appliances Category
Small Domestic Appliances Category Acceleration of Strix’s appliances range on track with Strix and Laica proving to be a strategic success as consumers adapt to “the new normal” Overview of the Small Domestic Appliances Market Highlights The global Covid-19 pandemic has had significant impacts on t
Slide 23: Small Domestic Appliances Product Roadmap
Small Domestic Appliances Category Product Roadmap 2021 2022 2023 Onwards • Aurora across UK & WEUR under • Aurora launch in USA • New innovative formula prep machine Aqua Optima Brand with key Baby Care Partner in UK/EU & • Expand Aurora range, incl. Filter NAM • Beverage Station launched with Coff
Slide 24: Small Domestic Appliances Category - Growth
Small Domestic Appliances Category - Growth Financial Performance 2020 – 2025 2020 H1 – 2021 H1 2020 – 2021 FY FORECAST CAGR: 25.5% Growth: 876% Growth: c. 250% 2020 2025 2020 H1 2021 H1 2020 2021 Sept Forecast Strong 2021 growth largely as a result of the strategic acquisition of Laica Continued gr
Slide 25: ESG
INNOVATIVE TECHNOLOGY
Slide 26: ESG – Scope 1 & 2 to Be Net Zero by End 2023
ESG – Scope 1 & 2 to Be Net Zero by End 2023 Industry leading and ambitious decarbonisation target demonstrates our commitment to our sustainability agenda Scope 1 & 2 emissions • Solar array in China to supply over 10% of electricity 7,000 80 requirements 6,000 70 Intensity tCO2e/£m 60 Emissions (t
Slide 27: Adoption of key KPIs
Adoption of key KPIs yy \ | Climate action ] Y : : ) Resource intensity } \ A) ] Waste & recycling y ) Clean water and / sanitation ) Health & safety \ Gender equality |) ( Wi 7 and employees J Innovation vth in revenues from FY 2019 to FY 2020 Performance Scope 1,283 emissions: 5,376 tCOz¢; -11.9%
Slide 28: Outlook
—Strix INNOVATIVE TECHNOLOGY
Slide 29: Outlook 2021
Outlook 2021 Strix reiterates confidence in executing on its medium term strategy and delivering against its five year targets Resilient Business Model Going for Growth Continued strong financial performance & Strix will continue to invest in compelling growth operational progression despite signifi
Slide 30: Compelling Investment Proposition
Compelling Investment Proposition Reliable. Innovative. Sustainable. ✓ Strix has successfully delivered significant growth in adjusted profit after tax in the first half of this year versus both the pandemic affected 2020 as well as 2019 ✓ A high quality, resilient and robust business model which be
Slide 31: Appendices
Appendices 31
Slide 32: Total Shareholder Return
Total Shareholder Return Since IPO Strix’s share price has risen by 246% Share price (GBp) 450 400 350 300 250 200 150 100 50 0 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Strix share price Peer Group (rebased to Strix) FTSE AIM (rebased to Strix) FTSE 250 (rebased to Strix) Note:
Slide 33: Balance Sheet Summary
Balance Sheet Summary £m 2021 2020 Commentary Property, plant and equipment - net 40.4 37.2 Intangible assets - net 31.6 29.7 Property, plant & equipment has increased by net £3.2m. The net increase is due to increase from additions of c.£9.7m (£5.1m attributable to completion of the new factory wit
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Strix Group Plc (the “Company”) and comprises the following presentation slides (the “Slides”) for the sole use at a presentation concerning the Company. The Slides contain statements that are or may be deemed to be “forward-looking statements”, whic