Slide 1: Full year results to 31 July 2018
Volution Group plc Full year results to 31 July 2018 Excellence in ventilation
Slide 2: Introduction
Introduction Excellence in ventilation Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics, Central Europe and Australasia. >> Introduction to Volution >> Highlights >> Financial Review >> Business update and
Slide 3: Volution Group plc Snapshot
Volution Group plc Snapshot 89+11+M Brands Leading in both the residential and % of Volution Group revenue commercial markets. Ventilation Group 89.0% OEM (Torin-Sifan) 11.0% We operate through two segments: Ventilation Group >> 89.0% of Group revenue (2017: 88.1%). >> The Ventilation Group prim
Slide 4: Our Locations
Our Locations We aim for our products to enhance our UK Nordics customers’ experience of ventilation by reducing energy consumption, improving indoor air quality and design and making them easier to use. Central Europe Our acquisition strategy over the last year has increased the number of our key b
Slide 5: Execution of our Strategy
Execution of our Strategy Revenue growth of 11.1% and adjusted EPS up 6.6%. Three strategic pillars Organic growth Growth through a Development of OEM in our core markets disciplined and value- (Torin-Sifan) range and >> Organic revenue growth of 2.8% (2.4% adding acquisition strategy customer base
Slide 6: Acquisitions completed during the year
Acquisitions completed during the year Four acquisitions completed during the year, strengthening our position in existing regions and broadening our reach into new geographies, with all integration activity progressing well. Simx Limited, acquired in March 2018 Oy Pamon Ab, acquired in July 2018 >>
Slide 7: 2018 Highlights
2018 Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £205.7m £37.1m 18.0% 205.7 35.6 37.1 21.7 22.0 22.6 185.1 21.0 32.5 19.3 29.4 18.0 154.5 26.5 130.2 22.2 120.7 102.3 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 >>
Slide 8: 2018 Highlights continued
2018 Highlights continued Adjusted EPS (basic and diluted) p Adjusted operating cash flow £m Net debt £m 14.5p £34.4m £77.2m 14.5 35.9 172.7 13.6 34.4 12.6 31.1 11.0 27.6 8.8 22.8 20.9 77.2 42.9 37.0 36.1 n/a 21.2 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2
Slide 9: Financial Review
Ian Dew – CFO Financial Review Full year results to 31 July 2018
Slide 10: Financial Highlights
Financial Highlights Financial year ended 31 July 2018 Key highlights Movement >> Revenue growth of 11.1% (11.1% at cc). Organic revenue 2018 2017 Movement % growth of 2.8% (2.4% at cc). Revenue (£m) 205.7 185.1 20.6 11.1% >> Strong growth in adjusted profit before tax of 3.6% Adjusted profit before
Slide 11: Income Statement Summary
Income Statement Summary Financial year ended 31 July 2018 Movement Movement >> Revenue growth of 11.1% (+£20.6 million) (11.1% at cc). 2018 2017 £m % >> Revenue growth would have been £0.1 million lower at cc. Revenue (£m) 205.7 185.1 20.6 11.1% >> 2.8% organic revenue growth (2.4% at cc). Revenue
Slide 12: Adjusted Profit before Tax Reconciled to Reported Profit before Tax
Adjusted Profit before Tax Reconciled to Reported Profit before Tax Financial year ended 31 July 2018 2018 2017 Movement Adjustments £m £m £m >> Exceptional operating costs of £6.4 million were Adjusted profit before tax 35.8 34.6 1.2 £5.0 million higher than FY17 due to: Items excluded from adjuste
Slide 13: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Financial year ended 31 July 2018 31 July 2018 31 July 2017 >> Non-current assets increased by £36.4 million, mainly as £m £m a consequence of four acquisitions in the year offset by Property, plant and equipment 22.6 19.6 depreciation and amortis
Slide 14: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Financial year ended 31 July 2018 2018 2017 >> Adjusted operating cash flow of £34.4 million £m £m (2017: £35.9 million): Opening net debt 1 August (37.0) (36.1) >> Cash conversion of 90% (2017: 99%) 9pp lower than prior year as a result of higher capital expend
Slide 15: Business update and outlook
Ronnie George – CEO Business update and outlook
Slide 16: Growth by Market Segment
Growth by Market Segment 2018 2018 2017 Growth Growth % of Volution Group revenue £m £m (cc) £m % % (cc) Ventilation Group 89% 89+11+M Ventilation Group revenue 183.1 183.2 163.1 12.3% 12.3% OEM (Torin Sifan) 11% OEM (Torin-Sifan) revenue 22.6 22.4 22.0 2.8% 1.8% Total Volution Group revenue 205
Slide 17: Market Sector Review: UK Ventilation Group
Market Sector Review: UK Ventilation Group % of Volution Group 47+53 Total Organic Inorganic Total revenue 2018 2018 (cc) 2017 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % UK Ventilation Group revenue 109.8 109.6 104.8 4.7% 2.8% 1.8% 4.6% UK Residential New Build revenue 25.6 25.6 22.
Slide 18: Market Sector Review: Nordics
Market Sector Review: Nordics % of Volution Group 82+18 Total Organic Inorganic Total revenue 2018 2018 (cc) 2017 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Nordics revenue 36.7 37.1 30.8 19.0% 2.9% 17.3% 20.2% 17.8% Nordics >> Sales in the Nordics sector increased by £5.9 million,
Slide 19: Market Sector Review: Central Europe
Market Sector Review: Central Europe % of Volution Group 86+14 Total Organic Inorganic Total revenue 2018 2018 (cc) 2017 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Central Europe revenue 28.5 27.7 27.5 3.7% 1.0% 0.0% 1.0% 13.8% Central Europe >> Organic revenue growth of 3.7% (1.0%
Slide 20: Market Sector Review: Australasia
Market Sector Review: Australasia % of Volution Group 96+4 Total Organic Inorganic Total revenue 2018 2018 (cc) 2017 growth growth (cc) growth (cc) growth (cc) 4.0% £m £m £m % % % % Australasia revenue 8.2 8.8 0.0 n/a n/a n/a n/a Australasia >> Sales in Australasia were £8.2 million since the acquis
Slide 21: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review: OEM (Torin-Sifan) % of Volution Group 89+11 Total Organic Inorganic Total revenue 2018 2018 (cc) 2017 growth growth (cc) growth (cc) growth (cc) 11.0% £m £m £m % % % % OEM (Torin-Sifan) revenue 22.6 22.4 22.0 2.8% 1.8% 0.0% 1.8% OEM (Torin-Sifan) >> Revenue was £22.6 million (2
Slide 22: Volution Group plc: Operations Update
Volution Group plc: Operations Update >> During the year we completed the move from our previous manufacturing facilities in Slough and Reading into a new purpose built injection moulding, ducting extrusion and unitary fan assembly plant in a new location in Reading. >> The project was completed on
Slide 23: Volution Group plc: Operations Update continued
Volution Group plc: Operations Update continued >> The Senior Management Team continues to be strengthened ensuring we have the capability and resource to drive the business forward as Volution Group continues to expand. >> Significant investment in new product development in the year across the Ven
Slide 24: Summary Outlook
Summary >> Good revenue growth in the year of 11.1% (11.1% at cc). UK >> Organic revenue growth of 2.8% (2.4% at cc). >> Four acquisitions completed in the year, all are integrating well. >> The ventilation market remains highly fragmented and we will continue to pursue acquisition opportunities. Ce
Slide 25: Volution Group plc Snapshot
Volution Group plc Snapshot 89+11+M Brands Leading in both the residential and % of Volution Group revenue commercial markets. Ventilation Group 89.0% OEM (Torin-Sifan) 11.0% We operate through two segments: Ventilation Group >> 89.0% of Group revenue (2017: 88.1%). >> The Ventilation Group prim
Slide 26: Thank You Q&A
Thank You Q&A
Slide 27: Appendix
Appendix
Slide 28: Our Recent History
Our Recent History 2014 2015 2016 2017 2018 Assets and business Brüggemann NVA Services Limited VoltAir System Simx Limited acquired of Öko-Haustechnik Energiekonzepte (trading as National AB acquired inVENTer GmbH GmbH acquired Ventilation and Airtech) Oy Pamon Ab acquired acquired acquired Ventila
Slide 29: Revenue
Revenue Financial year ended 31 July 2018 Revenue bridge FY17 to FY18 210.0m 8.2 205.7 200.0m 0.8 4.5 1.8 4.5 0.8 190.0m 185.1 180.0m 170.0m 160.0m 150.0m FY17 revenue Organic growth FX on organic Breathing VoltAir full Acquisitions in Acquisition FY18 revenue growth Buildings full year impact the N
Slide 30: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as