Volex plc · LSE:VLX

Volex — H1 2008 Earnings Presentation

15 slides from Volex's earnings presentation, November 2007

  1. Slide 1: Volex Group plc First Half Results 2007/08

    Volex Group plc First Half Results 2007/08

  2. Slide 2: Agenda

    Agenda ‰First Half Highlights ‰Financial Summary ‰New Business Opportunities for H2 ‰Divisional Performance ‰Outlook Interim Results FY2008 2

  3. Slide 3: First Half Highlights

    First Half Highlights ¾ Restructuring programme on track and near conclusion; cost benefits from restructuring will impact second half by £2.1m (annualised £4.2m). ¾ Acceleration of revenue growth during first half; sequential growth from second half last year of 4.4% (8.7% in local currency terms).

  4. Slide 4: Financial Summary

    Financial Summary ¾ Revenue was £126.3m (2006: £127.7m); in local currency terms, revenue increased 4.4% ¾ Operating profit of £4.6m (2006: £5.0m)(1) after incurring additional restructuring related operating costs of £1.6m. ¾ Adjusted (1) pre tax profit of £3.3m (2006: £3.4m) ¾ Adjusted earnings pe

  5. Slide 5: FY08 Group P&L

    FY08 Group P&L £'m H1 FY08 H1 FY07 FY2007 Revenue 126.3 127.7 248.7 Operating Profit 4.6 5.0 9.6 Major Restructuring Programme Charge - 1.1 (2.0) Net interest (1.0) (1.1) (2.1) Debt Issue costs (0.2) (0.5) (2.4) Share Based Payment Charge (0.5) - (0.4) Pre-tax Profit 2.9 4.5 2.8 Adjusted Pre-Tax Pro

  6. Slide 6: Cash Flow

    Cash Flow H1 FY08 H1 FY07 FY2007 £’m £’m £’m Operating Cash before Working Capital 5.4 6.5 12.2 Working Capital Movement (9.6) (4.3) (1.5) Operating Cash Flow (4.2) 2.2 10.7 Major Restructuring Programme (2.1) (1.4) (4.1) Capital Expenditure (0.8) (1.6) (2.3) Net Interest Paid (0.5) (0.9) (1.8) Tax

  7. Slide 7: Balance Sheet

    Balance Sheet H1 FY08 H1 FY07 FY2007 £’m £’m £’m Intangible Assets 2.3 2.3 2.4 Tangible Assets 8.4 10.3 9.2 Net Current Assets 46.2 44.6 43.3 Non Current Liabilities (29.3) (30.0) (28.8) Net Assets 27.6 27.2 26.1 Gearing % 63.4% 50.4% 36.8% £m Opening Net Debt (01/04/07) (9.6) Cash Flow (7.7) Exchan

  8. Slide 8: Working Capital

    Working Capital H1 FY08 H1 FY07 FY07 £'m £'m £'m Inventory 39.1 34.6 32.1 Debtors 57.8 56.3 50.9 Creditors -49.9 -49.1 -44.6 Working Capital 47.0 41.8 38.4 Included above: Buffer inventory for reorganisations 3.5 Interim Results FY2008 8

  9. Slide 9: FY08 Expectation

    FY08 Expectation £'m H1 Operating Profit 4.6 H2 at H1 run rate 4.6 9.2 Reorganisation cost savings: Interconnect 0.7 Wiring Harness 1.4 Interconnect growth 0.5 - 1.0 Full Year expectation 11.5 - 12.0 Interim Results FY2008 9

  10. Slide 10: New Business Opportunities for H2

    New Business Opportunities for H2 Power Products ¾ Apple I-Phone UK and European Launch ¾ Sky Roll Out of Digital Set-Top Boxes in Brazil and Mexico ¾ Significant Market Share Win at Dell Interconnect ¾ India BSNL Ramp Up ¾ Fibre Production in India ¾ RF Sub Assemblies for Market Leading MRI Medical

  11. Slide 11: Divisional Performance

    Divisional Performance Interim Results FY2008 11

  12. Slide 12: Power Products

    Power Products Segment Highlights: Power Products H1 FY08 H1 FY07 FY07 £'m £'m £'m ¾ Revenue grew by 2.8%. In local currencies terms, grew 11.2%. Revenue 65.9 64.1 123.3 ¾ Performance was strong in terms of both revenue and Operating Profit/ (Loss) 4.8 3.5 6.2 profit. ¾ Experienced growth across all

  13. Slide 13: Interconnect

    Interconnect Segment Highlights: Interconnect H1 FY08 H1 FY07 FY07 ¾ Revenue declined 8.3% as we repositioned the business. £'m £'m £'m ¾ Revenue growth of 4.0% relative to the second half of last Revenue 43.3 47.2 91.3 year (in local currencies terms) reflecting the benefit of the build-up of the n

  14. Slide 14: Wiring Harness

    Wiring Harness Wiring Harness H1 FY08 H1 FY07 FY07 Segment Highlights: £'m £'m £'m ¾ Revenue increased 4.3%. Revenue 17.1 16.4 34.1 ¾ Transferred a significant portion of UK operations to Operating Profit/ (Loss) (1.2) 0.1 (3.5) Croatia. ¾ Redundancies completed and expect profitability during secou

  15. Slide 15: Outlook

    Outlook ¾ Restructuring near conclusion with cost benefits arising in second half of £2.1m ¾ Building strong pipeline of new businesses across all divisions ¾ Expect conversion into incremental revenue in second half ¾ Developments in technologies expanded addressable market at the key customers ¾ P

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