TT Electronics plc · LSE:TTG
TT Electronics — H1 2008 Earnings Presentation
17 slides from TT Electronics's earnings presentation, 2008
Slide 1: 2008 Half-Year Results Presentation
2008 Half-Year Results Presentation 1
Slide 2: Highlights
Highlights Robust performance in difficult trading conditions • Group revenue up 8% to £292m (2007: £270.5m) • Profit before tax of £15m (2007: £16m) • Earnings per share of 7.2p (2007: 7.4p) • Interim dividend maintained • New Group Chief Executive and Finance Director appointed 2
Slide 3: Agenda
Agenda • Group structure • Business review by division • Financial highlights • Outlook and summary • Q and A 3
Slide 4: The Group Today
The Group Today • Balanced portfolio across the Group • Profitability of sensors and electronic systems affected by general trading conditions • Growth in ems business • Secure power and industrial continues to perform well Sensors & electronic Sensors & electronic 23% (25%) 20% (29%) systems system
Slide 5: The Group Today
The Group Today • UK and North American markets slower • China and Middle East markets have shown good growth • Growth in defence and aerospace 19% (14%) UK 9% (8 %) Automotive 18% (21%) 43% (43 %) Europe Telecom & Computer NA Industrial 24% (27%) 35% (35 %) ROW Defence & Aerospace 39% (38%) 13% (14
Slide 6: Sensors and electronic systems
Divisional Analysis Sensors and electronic systems 2008 2007 2007 1st Half 1st Half Full Year £m £m £m Revenue 101.4 90.7 182.3 Operating profit 3.4 5.5 10.0 1ST HALF • German OEM market in line with expectations • North American market for both sensor and systems suffered poor underlying demand • I
Slide 7: Electronic components
Divisional Analysis Electronic components 2008 2007 2007 1st Half 1st Half Full Year £m £m £m Revenue 70.5 67.5 131.2 Operating profit 3.9 4.6 10.0 1ST HALF • Growth in specialist component products • Operating profit affected by redundancy costs and industrial action at a US parts supplier OUTLOOK
Slide 8: Electronic manufacturing services
Divisional Analysis Electronic manufacturing services 2008 2007 2007 1st Half 1st Half Full Year £m £m £m Revenue 52.0 44.5 92.2 Operating profit 3.7 1.9 4.1 1ST HALF • Very successful first half performance • Good revenue growth especially in China • Global footprint giving access to broader end ma
Slide 9: Secure power and industrial
Divisional Analysis Secure power and industrial 2008 2007 2007 1st Half 1st Half Full Year £m £m £m Revenue 68.1 67.8 139.2 Operating profit 6.2 6.9 13.6 1ST HALF • Division has performed well in the 1st half • Secure power operation strong in Mexico and UK • New orders secured in Africa and Middle
Slide 10: Financial Highlights
Financial Highlights 1ST HALF • Resilient underlying sales growth • Encouraging profit performance given economic backdrop • Good cash generation and robust balance sheet OUTLOOK • Continuing focus on improved working capital management 10
Slide 11: Financial Summary
Financial Summary 2008 2007 2007 1st Half 1st Half Full Year £m £m £m Revenue 292.0 270.5 544.9 Operating Profit 17.2 18.9 37.7 Net interest payable (1.8) (2.1) (4.5) Net finance cost on pension schemes (0.4) (0.8) 0.1 Profit before taxation 15.0 16.0 33.3 Taxation (3.9) (4.6) (9.3) Profit after tax
Slide 12: Earnings per share/Dividends
Earnings per share/Dividends 2008 2007 1st Half 1st Half £m £m Profit before tax 15.0 16.0 Tax (3.9) (4.6) Earnings 11.1 11.4 Average number of shares (million) 155.0 154.8 Earnings per share – basic (pence) 7.2p 7.4p Dividends per share (pence) 3.69p 3.69p 12
Slide 13: Pensions
Pensions June June December 2008 2007 2007 £m £m £m Fair value of assets 282.1 286.9 298.2 Liabilities (302.8) (319.9) (315.6) Deficit (20.7) (33.0) (17.4) • UK pension schemes merged in 2007 • Company commitment to eliminate IAS19 deficit by 2014 • Salary freeze and increase in members’ contributio
Slide 14: Cash Flow
Cash Flow 2008 2007 1stHalf 1stHalf £m £m Operating profit 17.2 18.9 Depreciation and amortisation 16.9 15.6 Working capital (10.2) (7.8) Special pension fund payment - (5.5) Other - (3.8) Operating cashflow 23.9 17.4 Tax and interest (3.2) (4.9) Capital and development expenditure (19.6) (20.0) Pro
Slide 15: Balance Sheet
Balance Sheet 2008 2007 2007 June December June £m £m £m Non-current assets 192.3 181.6 174.5 Deferred tax asset 5.2 4.2 8.6 197.5 185.8 183.1 Inventories 97.2 91.0 91.0 Receivables and financial instruments 108.8 95.1 95.9 Cash and cash equivalents 6.5 7.6 5.0 212.5 193.7 191.9 Net assets of dispos
Slide 16: 2008 Outlook and Summary
2008 Outlook and Summary • Robust first half performance • Trading conditions for second half likely to be difficult with weaker demand, particularly for automotive sensors in Europe • Specialist electronic products and secure power more resilient 16
Slide 17: 2008 Half-Year Results Presentation
2008 Half-Year Results Presentation 17