Strix Group Plc · LSE:KETL
Strix — FY2019 Earnings Presentation
28 slides from Strix's earnings presentation, March 2020
Slide 1: Investor Presentation Final Results
Investor Presentation Final Results Period ended 31 December 2019 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. The designs and concepts herein are p
Slide 2: Operational and Strategic Highlights
Operational and Strategic Highlights Investor Presentation - Final Results 2
Slide 3: 2019 Operational and Strategic Highlights
2019 Operational and Strategic Highlights Operational Strategic Automation continues to Maintained global market value improve production efficiency to 98% share % of the kettle controls market Maintained at c.54% despite ongoing macro-economic headwinds New U90 Automation line achieved 80% labour a
Slide 4: Tackling COVID-19
Tackling COVID-19 Precaution measures in place • An emergency response team set up locally during • Daily reports implemented to assess the status and Chinese New Year to prepare for the factory opening. conduct risk assessment via wechat for all staff Key decision making led by the COO and CEO • Fa
Slide 5: Financials
Financials Period ended 31 December 2019 Investor Presentation - Final Results 5
Slide 6: Financial Highlights
Financial Highlights Revenue £m Adjusted Gross Profit1 £m Adjusted EBITDA1 £m +3.3% HaloSource +1.8% HaloSource Losses +1.5% Halosource Losses 2019 96.9 0.5 2019 39.6 1.1 2019 36.9 1.4 2018 93.8 2018 38.9 2018 36.4 2017 91.3 2017 37.2 2017 35.1 Risen by 3.3% as a result of maintaining Excluding the
Slide 7: Profit and Loss Summary
Profit and Loss Summary £m 2019 2018 % Change2 Commentary Revenue 96.9 93.8 +3.3% Revenue: £3.1m increase as a result of maintaining market value share Adjusted Gross profit1 39.6 38.9 +1.8% in a growing market Adjusted operating profit1: £0.7m increase Other operating costs: (8.7) (8.4) +2.9% due t
Slide 8: Cash Flow
Cash Flow FINANCING & Commentary TAX NET WORKING CAPITAL Net working capital: £0.4m outflow EXCEPTIONAL & OTHER (2018: £0.6m outflow) increase in prepayments to suppliers to secure material prices Financing & Tax: £3.5m outflow CAPEX (2018: £1.8m outflow) includes £1.3m of lease liability payments f
Slide 9: Capital Allocation
Capital Allocation Prudent Capital Allocation Model with 4 core priorities 01 Operating Capital Expenditure Capital Expenditure 02 Value Accretive Acquisitions Acquisitions £m Land & Factory £m Exceptional Costs Free Cash Flow 2019 9.4 6.0 2019 1.0 1.0 2018 7.6 2018 £m H1 H2 2017 6.0 2017 2019 4.6 1
Slide 10: Net Debt £26.3m 0.7x
Net Debt Net debt Net debt/adjusted EBITDA Net working capital draw at 31 December 20191 ratio at 31 December 2019 from trough to peak £26.3m 0.7x £5.8m £27.5m at 31 December 2018. 0.8x at 31 December 2018. Intra year for 2019 representing 6% of revenue. Cash and facility headroom Bank covenant requ
Slide 11: Project Update / Timeline
Project Update / Timeline Investor Presentation - Final Results 11
Slide 12: New Factory
New Factory Milestones • All the underground work will be • Trial run and clean up in November and completed by end of March December 2020. • The main build construction will be • Target to complete all the construction completed in July work and decoration and obtain • Electronic installation and i
Slide 13: Kettle Control Category
Kettle Control Category Investor Presentation - Final Results 13
Slide 14: Kettle Control Business
Kettle Control Business Strix continues to hold a strong value share of the global kettle control market at c.54%. It is estimated that the value of the global kettle control market grew by 3% to c.£160m in 2019. Exhibiting continued growth potential as global penetration of electric kettles increas
Slide 15: Appliances Category
Appliances Category Investor Presentation - Final Results 15
Slide 16: Hot Water on Demand (HWoD)
Hot Water on Demand (HWoD) The HWoD category is a natural extension to the Strix core business offering, and is valued at retail at over £2.4 Billion globally. The market is growing out of consumers’ increasing need for convenience, speed, and energy efficiency. Hot Taps: £250M 2019 Highlights • Suc
Slide 17: Baby Care
Baby Care The Global Baby Care Category is valued at retail at over £150 Billion. Strix plans to expand from a UK, to a Global footprint in this resilient category, focusing on solutions which offer enhanced convenience and safety. 2019 Highlights Europe China • TT Perfect Prep “Day & Night”, a Stri
Slide 18: Water Category
Water Category Investor Presentation - Final Results 18
Slide 19: Water Category
Water Category The water filtration category is valued at retail at over £8 Billion. With our current 20.9% market share in the UK market, we will leverage technology innovation, product design and acquisitions to drive growth in our key markets. 2019 Highlights • Acquisition of HaloSource (astrea &
Slide 20: Water Category Overview
Water Category Overview Strix is well positioned to maximise the growing opportunities in the health and wellness space through the diverse and innovative range of products our three brands offer in the water category. Astrea Halopure Aqua Optima • Partnered with Aquashield to develop • Includes pat
Slide 21: Investment proposition
Investment proposition Aligned to important ESG ‘mega-trends’ that are reshaping the global economy, business and society 01 Water filtration / cleanliness 02 Reduction in the use of plastics • HaloSource acquisition in 2019 built on our • Launch of AstreaOne reusable water bottles existing Aqua Opt
Slide 22: Short Term Roadmap and Outlook
Short Term Roadmap and Outlook Investor Presentation - Final Results 22
Slide 23: Outlook 2020
Outlook 2020 In spite of continuing global volatility driven by Brexit, COVID-19 and USA/China trade tensions, the Group will continue to focus on our key strategic objectives whilst continuing to deliver on our strategy to create value for our shareholders. New product Factory 2020 launches constru
Slide 24: Disclaimer
Disclaimer This presentation, which comprises the presentation slides (the “Slides”) and any information communicated during any delivery of the presentation whether orally or in writing, including talks given by the presenters, any question and answer session and any documents or materials distribu
Slide 25: Appendices
Appendices Investor Presentation - Final Results 25
Slide 26: Balance Sheet
Balance Sheet £000s Reported 2019 Reported 2018 • Property, plant & equipment has increased by £14.4m. £4.3m relates to right of use assets (IFRS 16 leases), £1.7m Property, plan and equipment – net 25.5 11.1 relates to land use rights, and £6.7m relates to capital expenditure under construction. In
Slide 27: Cash Flow
Cash Flow £m 2019 2018 Commentary Cash inflow/ (outflow) from operating activities 35.3 35.4 Net working capital: £0.4m outflow (2018: £0.6m outflow) increase in Purchase of property, plant and equipment (12.6) (5.7) prepayments to suppliers to secure material prices Capitalised development costs (2
Slide 28: IFRS 16 Analysis
IFRS 16 Analysis Investor Presentation - Final Results 28