Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2016 Earnings Presentation
22 slides from Gooch & Housego's earnings presentation, Nov 29, 2016
Slide 1: Preliminary Results Year Ended 30 September 2016
PRELIMINARY RESULTS YEAR ENDED 30 SEPTEMBER 2016 CEO: Mark Webster / CFO: Andrew Boteler
Slide 2: Operational & Financial Highlights
Highlights Operational & Financial Highlights Excellent performance from our fibre-based business, driven by telecoms and fibre sensing. Strong second half performance with good momentum going into FY2017. Two highly complementary acquisitions completed in the Aerospace & Defence sector. Sub
Slide 3: Revenue & Order Book Phasing
Highlights Revenue & Order Book Phasing Revenue £’m 2016 2015 60 50 40 30 20 10 0 H1 H2 Challenging first quarter market conditions in our Industrial Lasers business. H2 revenue weighting of 55% compared with 51% for the same period last year. Full year results are testament to active policy o
Slide 4: Financial Overview: Income Statement
Financial Overview Income Statement Key points: Year Ended 30 September 2016 2015 % Change £’000 £’000 Group revenue for the year was a record Revenue 86,051 78,702 9.3% £86.1m, 9% higher. Gross profit 32,299 31,043 4.0% Excluding the impact of foreign exchange, Operating expenses (18,041) (17,9
Slide 5: Financial Overview: Cash Flow
Financial Overview Cash Flow Year Ended 30 September 2016 2015 Key points: £’000 £’000 Cash flow from operating activities 12,573 13,625 Net cash £11.7m as at 30 Cash flow from investing activities September 2016 (2015: £17.3m), after investing: Acquisition of subsidiary (5,687) - £5.7m in acqui
Slide 6: Financial Overview: Balance Sheet
Financial Overview Balance Sheet Key points: As at 30 September 2016 2015 £’000 £’000 Non-current assets Tangible assets 32,384 24,915 Strong balance sheet maintained Intangible assets 29,916 20,155 Comparative balance sheet positions Other 2,674 2,552 impacted by the acquisitions and FX. 64,974
Slide 7: Financial Track Record
Financial Overview Financial Track Record Key points: Revenue £’m H1 H2 Adjusted PBT £’m 100 16 The business has delivered 90 14 profitable growth over an eight 80 12 year period. 70 10 60 8 50 13% CAGR in revenues since 40 6 FY2009. 30 4 20 2 10 24% CAGR in adjusted PBT 0 0 since FY2009. 29
Slide 8: Markets & Applications: Industrial
Technology, Products & Markets Markets & Applications Markets Applications Industrial • Fibre lasers Revenue: • Solid state lasers Micro-electronics & light £54.3m manufacturing • Semi-conductor equipment (2015: £46.1m) • Inspection equipment Adjusted Operating Profit: • Perimeter sensing £10.8m •
Slide 9: Markets & Applications: Aerospace & Defence
Technology, Products & Markets Markets & Applications Markets Applications Aerospace & Defence Revenue: Target designation & • Aircraft platforms £20.0m range finding • Missile systems (2015: £19.8m) • Ring laser gyroscopes Navigation systems Adjusted Operating Profit: • Fibre gyroscopes £1.5m •
Slide 10: Markets & Applications: Life Sciences
Technology, Products & Markets Markets & Applications Markets Applications Life Sciences Revenue: Optical coherence • Ophthalmic imaging £7.9m tomography (OCT) • Cardiovascular (2015: £9.0m) Adjusted Operating Profit: • Prostate surgery Laser surgery • Cosmetic surgery £1.6m • Tattoo removal (20
Slide 11: Markets & Applications: Scientific Research
Technology, Products & Markets Markets & Applications Scientific Research Revenue: £3.9m Markets Applications (2015: £3.9m) • National Ignition Facility Internal confinement • Laser Mega Joule Adjusted Operating Profit: fusion £0.7m (2015: £0.7m) Scientific • Research institutes instrumentation
Slide 12: Acquisitions
Acquisitions Two strategic acquisition completed in the year • Strategy to create a critical mass in A&D – this business sector provides opportunities for growth and more scope than industrials to provide system level products. • Kent Periscopes • UK based supplier of periscopes, vehicle sights and
Slide 13: Our Strategy
Our Strategy Remains “Diversify” & “Move up the Value Chain” Diversify Exploit high-growth opportunities for photonics technology across multiple sectors to provide balance and reduce cyclicality. FY2016 demonstrated the value of this policy and the resilience that is built into the business. Establ
Slide 14: Performance Improvement Plan
Performance Improvement Plan Progress to date • Operational excellence - established a number of globally focused teams representing the key manufacturing disciplines. Lean manufacturing principles introduced to all sites with demonstrable benefits in FY2016. • Investment in facilities - Completion
Slide 15: Summary & Outlook
Summary & Outlook • During FY2016 G&H has: • made good progress on strategic goals of further diversification and moving up the value chain; • met its financial objectives; • made a number of strategically important investments; and • acquired two highly complementary companies. • Committed to furth
Slide 16: Appendices
Appendices dm Gooch & Housego ENABLING PHOTONIC TECHNOLOGIES
Slide 17: About us
About us Gooch & Housego is a photonics technology business headquartered in Ilminster, Somerset, UK, with operations in the USA and Europe. A world leader in its field, the company researches, designs, engineers and manufactures advanced photonic systems, components and instrumentation for applicat
Slide 18: G&H photonics – part of our everyday lives
G&H photonics – part of our everyday lives You probably use G&H photonics every time you use the internet or make a transatlantic phone call Your smartphone or tablet was manufactured and tested using G&H photonic components: Lasers containing G&H acousto- and electro-optics are used in virtually
Slide 19: Our Vision
Our Vision Our vision is of a world in which photonics becomes ubiquitous Photonics is already transforming manufacturing, aerospace, communications and medicine Photonics provides the human interface for digital information In a future where optics and electronics become inextricably linked all sys
Slide 20: New Products & Capabilities introduced in 2016
New Products & Capabilities introduced in 2016 Key: Technology New products Precision Acousto/Electro Fibre Systems & 21 introduced in FY2016 (2015: 18) Optics Optics Optics Instrumentation Markets Aerospace & Defence 1 2 1 Industrial 6 4 3 Life Sciences 2 2 Scientific Research “G&H sees the continu
Slide 21: Growth through diversification
Growth through diversification The newer markets of Aerospace & Defence and Life Sciences, together with new application areas within our Industrial market, offer the potential for significant growth through their rapid adoption of photonic technologies INDUSTRIAL AEROSPACE & DEFENCE 2016 2008 £86.1
Slide 22: Key Customers
Key Customers Seica ie TRUMPF NORTHROP GRUMMAN aa a Pa) GS Ti as 5 SELEX GALILEO PHOTONICS AMS _ : Honeywell | acon PE ndope , TO p CO n ( L3) “© optos: HANS LASE: ae 8 a COHERENT. ao JPL CED) lt kaenee Livermore 20 vc RENISHAW.4 ENABLING PHOTONIC TECHNOLOGIES