Slide 1: Annual Results Presentation
Year ended 2 April 2023 ANNUAL RESULTS PRESENTATION 22 JUNE 2023 NAT ROTHSCHILD Executive Chairman JON BOADEN Chief Financial Officer 1
Slide 2: Delivering ahead of our ambitious five-year plan
Delivering ahead of our ambitious five-year plan Another record performance • Strong revenue growth due to robust demand and improved component availability • Underlying operating margin enhanced to 9.3% with robust pricing Continued strength in our chosen markets • Significant step up in Medical an
Slide 3: Global footprint, supporting localisation trends
Global footprint, supporting localisation trends 3 North America Europe Asia 5 acquisitions since FY2018 4 acquisitions since FY2018 2 acquisitions since FY2018 Optimisations Optimisations Optimisations PCBa capability Entered domestic appliance market Launched EV business Investment in automation C
Slide 4: Developing a path to net zero by 2035
Developing a path to net zero by 2035 We are committed to enhancing sustainability, doing what is right and making a positive impact on our communities. We will become net zero by 2035 by reducing our scope 1 and 2 emissions, through decarbonisation of energy supply. Completed In progress Future pri
Slide 5: Financial and Operational Review
FINANCIAL AND OPERATIONAL REVIEW 5
Slide 6: Strong financial performance
Strong financial performance Underlying Underlying Revenue operating margin operating profit $722.8m +17.6% $67.3m 9.3% +20bps +19.8% FY2022: $614.6m FY2022: $56.2m FY2022: 9.1% Organic revenue Profit before tax Total dividend per growth share 11.4% $45.8m 3.9 pence +26.5% +8.3% FY2022: $36.2m FY202
Slide 7: Excellent progress in Electric Vehicles
Excellent progress in Electric Vehicles FY2023 FY2022 Change % of Group revenue Revenue $138.3m $104.2m 33% 19% Organic growth 33% 96% FY2023 highlights Strategic progress Strong demand continued in FY2023 • High growth sector Sector revenue mix across a widening product range and • Customer diversi
Slide 8: Volumetric growth in Consumer Electricals
Volumetric growth in Consumer Electricals FY2023 FY2022 Change % of Group revenue Revenue $261.8m $262.4m 0% Organic growth (3%) 14% 36% FY2023 highlights Strategic progress Volumes low single digits higher • Vertical integration with power despite multiple macroeconomic cable extrusion operations S
Slide 9: Strong growth in Medical
Strong growth in Medical FY2023 FY2022 Change % of Group revenue Revenue $145.0m $128.3m 13% Organic growth 16% 13% 20% FY2023 highlights Strategic progress Medical market saw further growth • Continued focus on market- in FY2023 driven by the backlogs leading quality and customer Sector revenue mix
Slide 10: Significant expansion in Complex Industrial Technology
Significant expansion in Complex Industrial Technology % of Group revenue FY2023 FY2022 Change Total revenue $177.7m $119.8m 48% 25% Organic growth 19% (2%) FY2023 highlights Strategic progress Our Complex Industrial Technology • Research and development of end market has grown significantly 400Gbps
Slide 11: Group Cash Flow
Group Cash Flow $m FY23 FY22 Working capital movements Underlying EBITDA 81.6 66.1 Net capital expenditure (18.2) (14.5) ($16.3m) Underlying working capital (7.3) (35.9) Net interest and tax (13.8) (8.0) Other including pension (2.0) (1.6) Underlying Free Cash Flow 40.3 6.1 Acquisitions (12.5) (56.0
Slide 12: Strategic Update
STRATEGIC UPDATE 12
Slide 13: Track record of value creation
Track record of value creation Revenue ($m) Underlying operating profit ($m) 15% CAGR 722.8 67.3 614.6 40% CAGR 56.2 443.3 42.9 372.1 391.4 319.6 322.4 31.6 21.6 9.1 11.5 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Underlying operating margin (%) Underlying basic EPS1 (c) 9
Slide 14: Successful acquisition strategy
Successful acquisition strategy Additional value Strategic add capabilities geographic location Deep customer Industry we Attractive valuation relationships understand well Strong track record of acquisitions $4m GTK (UK) $18m Deka $85m Irvine $15m Prodamex & $19m MC Electronics 2.3x Limited 6.5x El
Slide 15: Acquisition of Murat Ticaret
ACQUISITION OF MURAT TICARET 15
Slide 16: Agreed acquisition of Murat Ticaret for up to €178.1m
Agreed acquisition of Murat Ticaret for up to €178.1m • Leading manufacturer of complex wire harnesses • Headquartered in Turkey with an international manufacturing footprint • Significant global exposure to the off-highway manufacturing market • Excellent customer relationships and a strong managem
Slide 17: Murat Ticaret – business overview and investment highlights
Murat Ticaret – business overview and investment highlights ✓ ✓ ✓ ✓ ✓ ✓ Track record of Opportunity to Experienced Market leading Diverse and long- Strong regional profitable growth expand capacity management team wire harnessing term customer footprint and strong to meet expected committed to the m
Slide 18: Murat Ticaret – product and end market overview
Murat Ticaret – product and end market overview Agricultural Commercial Construction Industrial 17% Revenue 43% 43% 9% breakdown CY221 20% • Buses, minibuses, coaches, trams, road • Telescopic handlers, backhoe loaders, • Material handling equipment e.g. fork End applications • Tractors, harvesters,
Slide 19: Excellent track record and financial profile
Excellent track record and financial profile Financial overview Revenue (€m) EBITDA (€m) Cash conversion % • Revenue has doubled in the last three years YoY% +46% +39% Margin 21% 20% 21% due to strong customer demand for agile and competitive manufacturing solutions €158m €33m 78.4% 82.3% 79.8% • EB
Slide 20: Compelling strategic rationale and growth opportunity from combination
Compelling strategic rationale and growth opportunity from combination Access to new, fifth growth market - broader product offer and customer base • Diversifies and unlocks combined customer base 19% • High single digit growth rates anticipated in end markets 16% • Adding non-competing, complementa
Slide 21: Summary and Outlook
SUMMARY AND OUTLOOK 21
Slide 22: Performance ahead of our five-year plan targets
Performance ahead of our five-year plan targets 22 5-year plan to FY2027 Revenue Underlying Revenue from operating margin acquisitions $1,200m By end of FY2027 9-10% $200m • Revenue growth firmly ahead of plan • Murat Ticaret acquisition blends up underlying operating margins • After the Murat Ticar
Slide 23: Summary and outlook
Summary and outlook Record performance, strong profitable growth and cash generation Performance ahead of the five-year plan Murat Ticaret acquisition provides entrance with scale into the attractive off-highway sector driving diversification Positive start to FY2024, with good levels of demand from
Slide 24: Appendices
APPENDICES BaF i
Slide 25: Capital allocation to deliver sustainable growth
Capital allocation to deliver sustainable growth Capital expenditure Invest to drive organic growth focused on high-growth Payback in 2 years for areas many projects Target net debt to Enhance capability, grow EBITDA of Acquire and integrate customer base, acquire at 1.5x-2.0x attractive businesses
Slide 26: Balance sheet
Balance sheet $m FY2023 FY2022 Goodwill and intangible assets 124.1 129.9 Property, plant and equipment 84.6 62.8 Investments 2.6 1.5 Inventories 120.5 119.3 Trade and other receivables 155.5 138.2 Trade and other payables (151.0) (147.7) Pensions and provisions (3.9) (5.6) Taxation (net) 4.0 5.4 Le
Slide 27: Volex
Volex