Volex Plc · LSE:VLX
Volex — H1 FY2022 Earnings Presentation
19 slides from Volex's earnings presentation, October 2021
Slide 1: Focused on growth
HALF YEAR RESULTS FY2022 H1 RESULTS 6 months ended 3 Oct 2021 Focused on growth NAT ROTHSCHILD Executive Chairman JON BOADEN Chief Financial Officer
Slide 2: Delivering robust revenue growth
Delivering robust revenue growth 2 • Group revenue up 44.5% year-on-year including acquisitions • Underlying operating profit up 31.3% to $27.3m • Underlying operating profit margin of 9.3% • Agreed three strategic acquisitions since last year end • Interim dividend increased by 9.1% to 1.2 pence pe
Slide 3: Operational Highlights
Operational Highlights 3 • Continuing to meet customer expectations with a proactive approach to supply chain challenges • Delivering further vertical integration in high-growth and strategically significant areas • Our focus on product development in growth areas is securing new customer projects f
Slide 4: Financial Review
FINANCIAL REVIEW
Slide 5: Financial Performance
Financial Performance 5 Group revenue $m (except where stated) H1 FY22 H1 FY21 Change $293m Revenue 292.7 202.5 44.5% $241m $196m $196m $203m $182m $190m Underlying operating profit 27.3 20.8 31.3% $161m $161m Underlying operating margin 9.3% 10.3% (100) bps Profit before tax 19.4 14.4 34.7% Basic e
Slide 6: Revenue by customer sector
Revenue by customer sector 6 Electric Vehicles • We are continuing to make excellent • As competition increases, we $45m progress in electric vehicles continue to optimise our We work with leading manufacturing capabilities and manufacturers in the Electric • We work with leading OEMs either further
Slide 7: Revenue by customer sector
Revenue by customer sector 7 Medical • We have seen a strong return of • We benefit from a diverse customer $62m $54m demand for assemblies used in large base who buy a wide variety of We deliver complex assemblies that medical devices during the period assemblies giving us the flexibility to are us
Slide 8: Margin progression
Margin progression 88 10.3% 9.3% • Our year-on-year margin improvement reflects the activities we have 8.1% undertaken in recent years to optimise margins. H1 2021 margins benefitted from favourable input costs and product mix 5.4% • Vertical integration for our power business 3.4% • Higher proporti
Slide 9: Group Cash Flow
Group Cash Flow 9 $m H1 FY22 H1 FY21 Underlying EBITDA 31.8 24.3 Net capital expenditure (4.9) (2.5) Underlying working capital (19.2) (11.0) Net interest and tax (3.9) (2.0) Other including pension (0.8) (0.6) Underlying Free Cash Flow 3.0 8.2 Acquisitions (10.8) (1.1) Adjusting items (0.6) (0.2) D
Slide 10: Strategy and Operations
STRATEGY AND OPERATIONS
Slide 11: Investment case
Investment case 11 DELIVERING OPERATIONAL ACQUISITIONS PROFITABLE EXCELLENCE GROWTH Revenue up Optimising 3 acquisitions 44.5% year- margins as DRAFT announced on-year we grow this year We are We are We have a focused on committed to strong balance growth areas continuous sheet and an where we can i
Slide 12: Strategy
Strategy 12 • Work with customers to understand • Alert to technological developments Product requirements • R&D team concentrating on EV and Development • Enhance reputation for quality high-speed cable developments • Put customer at the heart • Enhancing sales team to ensure deep Customer understa
Slide 13: Focus on Electric Vehicles
Focus on Electric Vehicles 13 EV revenue • We have grown our customer base in EV where we offer a range of EV charging products $45m $38m • We have invested in vertical integration to optimise our cost base and maintain our competitive pricing position $15m $8m $10m • In addition to our market leadi
Slide 14: Investing in growth
Investing in growth 14 Targeted investment in areas where we can achieve excellent growth Customer projects Creating customer value by investing in value-add opportunities Automation to support new Supporting our largest customers with specific capabilities to deliver their projects, often customer
Slide 15: Acquisition update
Acquisition update 15 • Leading power cord and wiring • Provides us with global reach in harness supplier for European power cords and access to white domestic appliance market goods customers Announced 12 Nov 2020 Completed 18 Feb 2021 • Highly automated production with • Cross sales opportunities
Slide 16: Acquisition update
Acquisition update 16 • Strategically located manufacturer of • This deal gives us an additional site wiring harnesses for the domestic in Mexico that can deliver higher- Announced 8 Oct 2021 appliances market volume requirements which Completion expected Q3 FY2022 Plant in Central Mexico • Excellen
Slide 17: Outlook
Outlook 17 • Robust first half and strong demand puts us on track to deliver on full-year expectations • We are working closely with our customers to deal with component shortages and, at present, our facilities are running at high utilisation levels • We have an exciting pipeline of acquisition opp
Slide 18: Questions?
QUESTIONS?
Slide 19: Volex
Volex