Gooch & Housego Plc · LSE:GHH
Gooch & Housego — Liberum Industrials Conference 2023
24 slides from Gooch & Housego's conference presentation, Jan 12, 2023
Slide 1: Liberum Industrials Conference
Liberum Industrials Conference 12th January 2023 November 2020
Slide 2: Agenda
AGENDA • Photonics – The Future • Company Overview & Markets • 2022 Results Overview • Growth Opportunities Charlie Peppiatt – CEO Chris Jewell - CFO • Summary & Outlook LIBERUM INDUSTRIAL INVESTOR CONFERENCE – 12th JANUARY 2023 PAGE 2
Slide 3: Photonics – The Future
PHOTONICS – THE FUTURE • Photonics is the study and design of systems that depend on the transmission, modulation or amplification of streams of photons, the basic unit of light • Photonics is already transforming manufacturing, aerospace, communications and medicine • Optics and electronics are bec
Slide 4: Who We Are
WHO WE ARE G&H is a world leader in optical design, test and manufacture We work with OEM customers worldwide, providing optical systems, assemblies and components for demanding applications, often for deployment in harsh environments Our vision A better world with photonics Our mission Delivering w
Slide 5: Our World Leading Reach and Expertise
OUR WORLD LEADING REACH AND EXPERTISE Our excellence in engineering and manufacturing is based on the following core technologies: • Acousto-optics • Electro-optics • Fiber optics Ashford • Precision optics and systems St Asaph OSIH MD Keene In addition: Cleveland PO Torquay FO Paris +S • Medical de
Slide 6: Revenue by Sector
REVENUE BY SECTOR 2022 Total Revenue: £124.8M We serve and provide value for three markets: • Aerospace and Defense • Industrial and Telecom • Life Sciences Industrial : and Telecom Aerospace £64.6m and 51% Defense Life £30.6m 22.1 Sciences 25% Percentage 44.8 of revenue by Revenue £29.7m market fig
Slide 7: Industrial Market
INDUSTRIAL MARKET Photonics plays an increasingly important role in industrial manufacturing Laser Material Processing - we design and manufacture products which are used in laser cavities, to steer and control the laser’s beam Printing - In photolithography and micro-lithography Sensing - Fibre opt
Slide 8: Aerospace & Defence Market
AEROSPACE & DEFENCE MARKET Imaging - An array of photonic components, sub-assemblies and systems into imaging applications which include asset surveillance and LIDAR mapping Target Designation and Range-Finding - Photonic targeting and range-finding systems ensure correct deployment of munitions Cou
Slide 9: Life Sciences Market
LIFE SCIENCES MARKET Optical Coherence Tomography (OCT) - We serve most of the world’s leading manufacturers of OCT retinal imaging systems Medical and Cosmetic Laser Systems - G&H is helping develop new laser products which enable less invasive surgical techniques. Applications include cataract rep
Slide 10: 2022 Results Overview
2022 Results Overview • Record order book of £147.7m up 51% reflecting strong end market demand (FY2021: £97.8m) • Revenue of £124.8m unchanged on prior year (FY2021: £124.1m) • Growth in both Industrial and Life Sciences offset by decline in Aerospace and Defence • Adjusted profit before tax declin
Slide 11: Growth Opportunities
GROWTH OPPORTUNITIES • Semiconductor demand from megatrends & ‘Technological Sovereignty’ driving advanced photonics for new generation photolithographic equipment and other advanced microelectronics • Environmental & Space high reliability fibre-optic modules and opto-mechanical systems • Bio-photo
Slide 12: Summary and Outlook
SUMMARY AND OUTLOOK • Well positioned for growth with record order book and robust pipeline • Positive progress addressing operational output challenges • Manufacturing partner producing at volume and additional products being qualified • Supply chain constraints and input cost inflation pressures p
Slide 13: Appendices
APPENDICES
Slide 14: Initial Observations by New CEO
INITIAL OBSERVATIONS BY NEW CEO • Dedicated workforce with deep technical skills across the business • Broad blue-chip customer base across all end markets • G&H products are recognised for their superior technical performance and quality • Operational delivery over recent times has not met required
Slide 15: ESG – Responsible Business
ESG – RESPONSIBLE BUSINESS Environment • New solar panels at Ilminster and Ashford facilities became operational in the year • All UK sites now purchasing 100% of their electricity from renewable sources • Achieved 27% reduction in Scope 1 and 2 carbon emissions • On track to achieve target of being
Slide 16: 2022 Summary Income Statement
2022 SUMMART INCOME STATEMENT Year Ended 30 September 2022 2021 % Change • Revenue grew by 0.6%; excluding fx down 3.7% £m £m • Further growth in our industrial laser and Revenue 124.8 124.1 0.6% semiconductor revenue Gross profit 39.1 41.3 (5.5)% • Medical lasers market is strong; A&D revenue decli
Slide 17: 2022 Cashflow
2022 CASHFLOW Year Ended 30 September 2022 2021 £m £m • Increase in working capital of £10.0m in the year, with investment in inventory levels given Net cash flow from operating activities 6.5 16.2 tightness of supply chain Cash flow from investing activities • Total investment in tangible and intan
Slide 18: 2022 Industrial
2022 INDUSTRIAL Financials (51% of revenue) FY22 FY21 Change Revenue £64.6m £55.6m 16.2% Adjusted £8.4m £7.1m 19.1% Operating Profit % Margin 13.0% 12.7% 30bps Order Book £57.5m £36.8m 56.3% • Expansion of semiconductor infrastructure to address megatrends: IoT, AI, 5G, Net Zero and Cloud key growth
Slide 19: 2022 Life Sciences
2022 LIFE SCIENCES Financials (24% of revenue) FY22 FY21 Change Revenue £29.7m £27.4m 8.2% Adjusted £4.0m £4.2m (6.9)% Operating Profit % Margin 13.3% 15.5% (220)bps Order Book £36.6m £26.6m 37.6% • Life Sciences grew year on year by 5.3% at constant currency • New customer programmes for medical di
Slide 20: 2022 Aerospace & Defence
2022 AEROSPACE & DEFENCE Financials (25% of revenue) FY22 FY21 Change Revenue £30.6m £41.1m (25.6)% Adjusted £(2.7)m £3.1m (185.0)% Operating Profit % Margin (8.7)% 7.6% (1630)bps Order Book £53.5m £33.6m 59.1% • Aerospace and Defence revenues declined year on year by 29% at constant currency • Deli
Slide 21: 2023 Expected Financial Calendar
2023 Expected Financial Calendar • 22nd February 2023 AGM Trading Update • 4th April 2023 Half Year Trading Update • June 2023 Interim Announcement • October 2023 Full Year Trading Update • December 2023 Full Year Results Announcement LIBERUM INDUSTRIAL INVESTOR CONFERENCE – 12th JANUARY 2023 PAGE 2
Slide 22: 2022 Other Financial Items
2022 OTHER FINANCIAL ITEMS R&D Spend • The Group’s R&D spend in the year totalled £9.3m (FY2021: £7.9m). This represented 7.4% of revenue (FY2021: 6.4%) • The Group capitalises a portion of its R&D spend in accordance with IFRS. The amount held on the balance sheet is £1.9m (FY2021: £1.8m). Tax • Th
Slide 23: Cautionary Statement
CAUTIONARY STATEMENT ▪ For the purposes of the following disclaimers, references to this ‘document’ shall be deemed to include references to the presenters’ speeches, the question and answer session and any other related verbal or written communications. ▪ This document contains forward-looking stat
Slide 24: How can our expertise enable your success?
SUMMARY How can our expertise enable your success? gandh.com LIBERUM INDUSTRIAL INVESTOR CONFERENCE – 12th JANUARY 2023 PAGE 24
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