Autins Group PLC · LSE:AUTG
Autins — FY2018 Earnings Presentation
26 slides from Autins's earnings presentation, March 2019
Slide 1: Autins Group – FY18 Results
Autins Group – FY18 Results March 2019
Slide 2: Agenda
Agenda • INTRODUCTION • OPERATIONAL HIGHLIGHTS • THE OPPORTUNITY • FINANCIAL REVIEW • SUMMARY • APPENDIX Autins Group Plc Annual Results 2017/18 2
Slide 3: Building a broad platform for growth
Building a broad platform for growth • A year of significant progress, despite market challenges • Financial performance unsatisfactory • Strategic progress very encouraging: • Group sales: +45% in 2 years • Winning new customers and reducing customer concentration • Europe growth accelerates: +60%
Slide 4: Operational Highlights
Section 01 Operational Highlights
Slide 5: Delivering the Strategy
Delivering the Strategy Customer concentration reduced • New customer wins in UK with Aston Martin, Auria, Bentley, Grupo Antolin and Toyota Geographic expansion • German sales: +67% to £3.4m • Swedish sales: +38% to £1.1m • New automotive wins with BMW, Dr Schneider, Magna, Porsche, Seat, Skoda, Vo
Slide 6: Sales growth accelerates in Germany
Sales growth accelerates in Germany • Established in 2014 • 2018 sales +67% to €4.1m • No longer reliant on inter-company sales • Automotive: • 15 major automotive customers including VW, Porsche, Skoda and Seat • Neptune approved by every targeted OEM • BMW wrote a new specification in recognition
Slide 7: Neptune builds momentum
Neptune builds momentum • Every targeted customer has approved Potential Neptune Fleece Sales Neptune – it is a winner Development • Production started Q1 2018 • Strong sales pipeline growth • £6m of Neptune product in production or booked • Production volume +88% in last 6 mths • Pipeline growth +3
Slide 8: Decisive actions for recovery
Decisive actions for recovery Thorough review of the Group strategy with refocused priorities for 2019 • Rigorous analysis of forecasts and prudent targets set • Focus brought on profitability and working capital for cash generation to reduce debt levels • Operational management structure changed •
Slide 9: Financial Overview
Financial Overview • Revenue +10.9% to £29.2m • H1 +29% YoY • H2 -5% YoY • Adjusted EBITDA loss of -£0.3m (FY 17: +£2.0m) • Net Debt £4.2m (FY17: £2.0m) • EPS -6.14p per share (FY 17: 1.82p) • Reprofiling of existing bank facilities post Year End • KPI’s: • New Product & Customer sales +5.5%pts to 1
Slide 10: The Opportunity
_ 02 | The Opportunity autins
Slide 11: A real growth opportunity
A real growth opportunity Only 45% 4% 94% 83% growth in 2 growth in 2 market share in of years sales are in years Europe UK New markets (sales £m’s) 2.5 2.0 0.8 1.5 1.0 0.4 1.4 95% growth in 2 0.5 0.8 years - 2016 2018 Flooring Building and Industrial Autins Group Plc Annual Results 2017/18 11
Slide 12: Key Drivers for Autins’ growth
Key Drivers for Autins’ growth • Recognised NVH specialist in automotive • Market leading performance materials • Established European manufacturing and technical support • Track record of winning new OEM and Tier 1 customers • New market growth accelerating Autins Group Plc Annual Results 2017/18 1
Slide 13: Adding value – expertise and service
Adding value – expertise and service BUSINESS STRATEGY FOCUS MODEL • Conversion of sales pipeline to • Innovative production Technology • Accelerate sales • Promote sales of • Specialist in automotive Neptune material Technical Support to converters • Expand into new • Continuous areas • Reduce cost
Slide 14: Aligned direction and approach
Aligned direction and approach Our Vision To be the preferred European supplier of acoustic and thermal solutions to our customers Values and Culture in the automotive industry and segments where we can deliver value Teamwork Accountability Strategy for profitable growth Expertise • Leverage our NVH
Slide 15: Financial Review
js - “aN ection autins 03 Financial Review
Slide 16: Revenue Bridge
Revenue Bridge • UK Auto – largest customer sales up £0.8m, new Tier 1 work £0.7m, other OEMs £0.1m • UK non automotive continues growth with new product performing well – R&D asset to be amortised in FY19 • Flooring growth primarily in Germany with new product launch and new customer secured in yea
Slide 17: Gross Profit Bridge
Gross Profit Bridge • Gross profit volume: represents effect of growth at FY17 margin • OEM sourcing: support for mature platforms to UK OEM • Neptune adoption: incentive provided to key Tier to effect running change on current platforms • Labour efficiency: excess costs vs planned (and FY17) perfor
Slide 18: Adjusted EBITDA Bridge
Adjusted EBITDA Bridge • Gross profit: benefit from volume outweighed by margin reduction • Overhead salary largely represents growth investment to meet originally forecast higher trading levels and process standardisation • Bad debt provision related to aged overdues – continuing to pursue, but slo
Slide 19: Cashflow bridge
Cashflow bridge • Losses funded from ID facility with additional drawdowns in the period • Working capital largely neutral • Inventory • £0.2m additional tooling stock from delayed launches • £0.5m higher raw material offset by £0.2m lower finished goods – a function of demand drop in Q4 • Raw mater
Slide 20: Summary
Section 4 Summary
Slide 21: Regaining Momentum
Regaining Momentum • Large addressable market • We have a strong and credible value proposition • European footprint now established and delivering growth • Neptune is a “best in class” material • Decisive actions taken to address cost base and profitability • A team aligned behind a common vision a
Slide 22: Appendix
Section A Appendix
Slide 23: Our locations are close to our customer base
Our locations are close to our customer base Deliver to over 160 Different customer locations 1.5km to Volvo Sweden UK TAMWORTH GOTHENBURG Material’s manufacturing, New product introduction assembly & conversion centre, material’s manufacturing, operation assembly & conversion operation UK NUNEATON
Slide 24: Consolidated statement of income
Consolidated statement of income FY18 FY17 FY16 Revenue 29,243 26,357 20,378 Gross Profit 7,247 9,030 6,533 Gross margin % 25% 34% 32% Exceptional costs 234 550 182 EBITDA (922) 874 918 (Loss)/profit before taxation (1,734) 207 186 Taxation 376 196 112 (Loss)/profit after taxation (1,358) 403 298 Au
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet FY18 FY17 FY16 Total non-current assets 15,624 15,108 12,720 Inventories 2,553 1,967 1,565 Trade and other receivables 6,763 7,378 4,955 Cash and cash equivalents 91 1,625 6,449 Total current assets 9,407 10,970 12,969 Total assets 25,031 26,078 25,689 Trade and other paya
Slide 26: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows FY18 FY17 FY16 Profit after tax (1,358) 403 298 Depreciation & amortisation 913 765 616 Income taxes (376) (196) (112) Financing 118 92 558 Other operating items (200) (137) (528) Change in working capital (54) (1,829) (159) Operating Cashflow (957) (902) 673 Inv