Slide 1: Full Year Results
FY2022 Full Year Results Presented by Stewart Gilliland, Paul Bal & Lance Burn 28 June IG DESIGN GROUP PLC2022 2021 FULL YEAR 1 RESULTS PRESENTATION
Slide 2: FY2022 Developments
FY2022 DEVELOPMENTS FY2022 Results Customers, Channels, Product Americas Turnaround • 11% organic revenue • Customers relationships • Immediate focus growth strengthened • Turnaround plan focuses on • Margins and profits hit • Some post-pandemic shifts reducing complexity, by unprecedented • Strong
Slide 3: FY2022 Financial Summary
FY2022 FINANCIAL SUMMARY Revenue ($m) Adjusted PBT1 ($m) Adjusted EBITDA ($m) Net cash ($m) 35.8 35.7 76.5 73.3 965.1 32.8 873.2 59.8 26.2 52.4 46.8 624.3 578.4 38.3 34.5 438.9 30.2 22.2 6.2 -1.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 • Re
Slide 4: Profit & Loss
PROFIT & LOSS 2022 2021 Reported Adjusting Adjusted Reported Adjusting Adjusted Items Items $m $m $m $m $m $m Revenue 2022 2021 Growth $m $m % Revenue 965.1 - 965.1 873.2 - 873.2 Americas 659.0 614.0 7% Gross profit 122.2 (2.5) 119.7 153.8 (1.0) 152.8 International 307.9 265.3 16% 12.7% 12.4% 17.6%
Slide 5: Adjusted Operating Profit Evolution
ADJUSTED OPERATING PROFIT EVOLUTION Note that the credit/charge associated with share-based payments is no longer treated as an Adjusting Item and therefore appears within both the reported and adjusted results. Prior years have been re-presented to include the impact of this change in accounting pr
Slide 6: Cost Headwinds
COST HEADWINDS FY2022 experience Our response Current status • Sea freight: • Broadened network of suppliers • Sea freight: ─ +500% cost at some points, and • Accessed major customers capacity ─ Prices stabilised but still higher than averaged +26% to +212% across Units through joint efforts to sust
Slide 7: Cashflow
CASHFLOW Working capital analysis 2022 2021 2022 2021 $m $m $m $m Adjusted EBITDA 38.3 73.3 Total Total Receivables 0.1 (9.9) Add back for share based payment (credit)/charge (0.8) 4.2 Inventory (56.9) 4.1 Movements in working capital (31.7) (9.1) Creditors 25.1 (3.3) Adjusted cash generated by oper
Slide 8: New Financing Arrangements
NEW FINANCING ARRANGEMENTS Previous Facilities – to June 2023 Revised Facilities – to March 2024 Facilities: Facilities: Fixed limit RCF $95m Fixed limit RCF $90m Variable limit RCF £130m (max) Variable limit RCF £92m (max) Hong Kong Receivables $18m (max) Hong Kong Receivables $18m (max) Facility s
Slide 9: DG Americas Update
DG AMERICAS UPDATE Commercial • 7% revenue growth – slightly ahead of proforma pre Covid-19 levels • Driven by: Christmas, stationery, goods-not-for-resale and creative play categories; offset by decline in craft • Significant supply chain issues and cost inflation significantly impacted margins, as
Slide 10: Re-programming Our Americas Business
RE-PROGRAMMING OUR AMERICAS BUSINESS Simplification Efficiency Margin • Category-focused • Streamline and align • Focus on higher margin Commercial Teams end-to-end operations business • SKU rationalisation and to better support the • Raise prices to cover inventory control Commercial Teams inflatio
Slide 11: DG International Update
DG INTERNATIONAL UPDATE Commercial • 16% revenue growth, now ahead of pre Covid-19 levels • Strong growth in Europe and Australia • UK yet to fully recover • Significant efforts to re-engineer product portfolios helped mitigate the significant cost inflation and supply chain issues • Focus on sustai
Slide 12: Sustainability
SUSTAINABILITY Helping design a better future Product Sustainable by design • Sustainable sourcing • Sustainable product and packaging Fully recyclable product ranges Fully recyclable packaging 44% 66% Definition: The proportion of Definition: The proportion of Design Group single-use Design Group c
Slide 13: Our Strengths
OUR STRENGTHS Relationships - with the biggest global retailers • Consistently serving household names through recent global challenges • Continued demand for our products • Top 20 customers: 68% of revenues, at $621m • Walmart ‘Seasonal supplier of the year’ for 3 years Scale – the largest player i
Slide 14: Strategic Priorities
STRATEGIC PRIORITIES • The year demonstrated the need for a more resilient business model • Group strategy is being revisited with the following objectives: ─ reducing complexity and better leveraging expertise and scale, and improving mix ─ improving margins ─ a more resilient supply chain ─ loweri
Slide 15: Summary and Outlook
SUMMARY AND OUTLOOK Summary • FY2022 provided supply chain and cost shocks exposing weaknesses in the Americas business in particular • Investment in customer service and relationships impacted margins • Group remained cash positive despite increased working capital levels • Strengthened Board and s
Slide 16: Appendix
APPENDIX 16. IG DESIGN GROUP PLC 2022 FULL YEAR RESULTS PRESENTATION
Slide 17: Sustainability
SUSTAINABILITY Helping design a better future In 2021 we launched our sustainability framework ‘helping design a better future’ to help shape the Group’s approach to sustainability. This year we have continued to make good progress as we begin to track our performance in each of the three pillars. W
Slide 18: Sustainability
SUSTAINABILITY Helping design a better future Planet Innovating to lower our negative impact • Reducing our environmental footprint • Design with the environment in mind Waste sent to landfill 29% Definition: The proportion of waste sent to landfill across our Solar panels at Anchor BV in the Nether
Slide 19: Largest Shareholders
LARGEST SHAREHOLDERS(a) Hedlund Family(b) Octopus Fidelity Canaccord WM 23.53% 11.63% 8.65% 7.26% Tellworth Rowan Dartington Chelverton Asset Close Brothers 6.69% 5.96% 2.97% 2.61% (a) Information taken from Equiniti Share Register Analysis 31 May 2022 (b) In addition to the Hedlund Family’s benefic
Slide 20: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES A full reconciliation between our Adjusted and reported results is provided below: FY2022 FY2021 $m $m Reported operating profit 7.7 19.9 Depreciation and impairment of property, plant and equipment 13.4 13.6 Depreciation and impairment of right of use assets 15.3 24