TT Electronics plc · LSE:TTG

TT Electronics — FY2002 Earnings Presentation

26 slides from TT Electronics's earnings presentation, March 2003

  1. Slide 1: 2002 Full-Year Results

    ! Trielectronics ple 2002 FULL-YEAR RESULTS

  2. Slide 2: Continued successful growth in the automotive market

    O Continued successful growth in the automotive market O Improved result from electrical sector O Telecom market remains poor O Strong cash generation with net debt reduced to £55.8 million O Dividend maintained at 10.05p for the year

  3. Slide 3: 2002 Financial Highlights

    2002 FINANCIAL HIGHLIGHTS £Ms 2002 2001 Turnover: Continuing activities 520.3 594.6 Copper rod - 36.1 Discontinued - 27.2 PBT before impairment and 20.4 29.9 goodwill amortisation Earnings per share: Before impairment and goodwill amortisation 10.1p 16.0p Basic and fully diluted 3.6p 12.2p Dividends

  4. Slide 4: Financial Summary

    FINANCIAL SUMMARY 2002 2002 2002 2001 2001 2001 £Ms 2nd Half 1st Half 2nd Half Total Total 1st Half Turnover: Continuing 520.3 255.0 265.3 594.6 273.1 321.5 Copper rod - - - 36.1 14.7 21.4 Discontinued - - - 27.2 1.4 25.8 Total 520.3 255.0 265.3 657.9 289.2 368.7 Operating profit before impairment a

  5. Slide 5: Amortisation, Impairment and Exceptional Item

    AMORTISATION, IMPAIRMENT AND EXCEPTIONAL ITEM £Ms 2002 Goodwill amortisation (2.1) Impairment: Goodwill (2.6) Plant and machinery (7.8) Impairment and goodwill amortisation (12.5) Exceptional item - profit on sale of 1.2 Johnston Group shares

  6. Slide 6: Geographical Analysis of Turnover of Continuing Activities

    GEOGRAPHICAL ANALYSIS OF TURNOVER OF CONTINUING ACTIVITES (excluding copper rod) Origin Destination % % 60 52 % 40 35 % 50 31 % 40 30 21 % 30 22 % 20 20 % 13 % 20 10 10 6% 0 0 UK Rest of Europe North America Rest of the World

  7. Slide 7: Geographical Analysis of Turnover

    GEOGRAPHICAL ANALYSIS OF TURNOVER Origin Destination 2002 2001 2002 2001 £m % £m % £m % £m % United Kingdom 270.9 52 331.9 56 162.4 31 197.1 33 Rest of Europe 112.9 22 105.4 18 180.3 35 196.1 33 North America 106.3 20 119.7 20 109.2 21 115.9 20 Rest of the World 30.2 6 37.6 6 68.4 13 85.5 14 520.3 1

  8. Slide 8: Turnover and Operating Profit of Continuing Activities by Origin

    TURNOVER AND OPERATING PROFIT OF CONTINUING ACTIVITIES BY ORIGIN Turnover Operating Profit % (before impairment and amortisation) 60 52 % 50 % 40 56 % 60 30 22 % 20 % 40 20 25 % 23 % 10 6% 20 0 0 -4 % -20 UK Rest of Europe North America Rest of the World

  9. Slide 9: Geographical Analysis by Origin of Turnover and Operating Profit

    GEOGRAPHICAL ANALYSIS BY ORIGIN OF TURNOVER AND OPERATING PROFIT Operating Profit Turnover (before impairment and amortisation) 2002 2001 2002 2001 £m % £m % £m % £m % United Kingdom 270.9 52 331.9 56 (0.9) (4) 6.4 17 Rest of Europe 112.9 22 105.4 18 12.5 56 10.6 29 North America 106.3 20 119.7 20 5

  10. Slide 10: Sector Performance

    i Trielectronics ple SECTOR PERFORMANCE

  11. Slide 11: Turnover by Sector

    TURNOVER BY SECTOR £Ms 2002 2002 2002 2001 2001 2001 Total 2nd Half 1st Half Total 2nd Half 1st Half Electronic 349.0 172.6 176.4 399.6 176.2 223.4 Electrical 171.3 82.4 88.9 195.0 96.9 98.1 Continuing 520.3 255.0 265.3 594.6 273.1 321.5 Copper rod - - - 36.1 14.7 21.4 Discontinued - - - 27.2 1.4 25

  12. Slide 12: Operating Profit Before Impairment Provisions and Goodwill Amortisation

    OPERATING PROFIT BEFORE IMPAIRMENT PROVISIONS AND GOODWILL AMORTISATION 2002 2002 2002 2001 2001 2001 £Ms Total 2nd Half 1st Half Total 2nd Half 1st Half Electronic 15.7 6.3 9.4 32.9 9.8 23.1 Electrical 6.7 3.0 3.7 3.8 3.2 0.6 Continuing 22.4 9.3 13.1 36.7 13.0 23.7 Discontinued - - - 1.5 (0.1) 1.6

  13. Slide 13: Analysis of Turnover by Product

    ANALYSIS OF TURNOVER BY PRODUCT £Ms 2002 2001 £m % £m % Electronic: Sensors and electronic systems 139.0 27 131.0 21 Electronic components 148.8 29 182.0 29 Magnetics 17.8 3 27.7 4 EMS 43.4 8 58.9 9 349.0 67 399.6 63 Electrical: Power systems 52.7 10 60.0 10 Power and data transmission 118.6 23 135.

  14. Slide 14: Analysis of Turnover by Market

    ANALYSIS OF TURNOVER BY MARKET Power Transmission 23 Auto ELECTRICAL 33% 40 Power Generation 10 ELECTRONIC 67% 6 Computer 7 14 Industrial Telecom

  15. Slide 15: Turnover Analysis by Market

    TURNOVER ANALYIS BY MARKET 2002 % 2001 % Electronic: Automotive 205.5 40 201.0 32 Telecom 38.0 7 65.5 10 Computer 28.4 6 43.5 7 Industrial 77.1 14 89.6 14 349.0 67 399.6 63 Electrical: Power generation 52.7 10 60.0 10 Power transmission 118.6 23 135.0 21 Copper rod - - 36.1 6 171.3 33 231.1 37 520.3

  16. Slide 16: 2003 Key Action Items for Growth

    2003 KEY ACTION ITEMS FOR GROWTH O Continue to build on our automotive success O Despite the current downturn look for the next generation telecom opportunities O Follow the computer manufacturers into China O Develop new products for the general industrial market especially medical and defence O Im

  17. Slide 17: Cash Flow

    :electronics ple CASH FLOW

  18. Slide 18: Cash Flow from Operations

    CASH FLOW FROM OPERATIONS £Ms 2002 2002 2002 2001 2001 2001 2nd Half 1st Half 2nd Half 1st Half Total Total Operating profit 9.9 (2.1) 12.0 36.0 11.8 24.2 Non-cash items - Depreciation 26.0 12.3 13.7 31.7 15.4 16.3 - Amortisation 2.1 1.0 1.1 2.2 1.1 1.1 - Impairment 10.4 10.4 - - - - - Other (6.9) (

  19. Slide 19: Group Cash Flow

    GROUP CASH FLOW £Ms 2002 2002 2002 2001 2001 2001 2nd Half 1st Half 2nd Half 1st Half Total Total Cash inflow from operations 42.6 19.6 23.0 76.6 54.7 21.9 Interest paid (3.2) (1.5) (1.7) (8.1) (2.6) (5.5) Taxation paid (2.9) (3.4) 0.5 (7.4) (1.6) (5.8) Capital expenditure (26.5) (13.6) (12.9) (35.4

  20. Slide 20: Capital Investment in 2002

    CAPITAL INVESTMENT IN 2002 £Ms Full Year 2nd Half 1st Half CapEx Depn CapEx Depn CapEx Depn Electronic 22.3 20.4 11.7 9.8 10.6 10.6 Electrical 4.2 5.6 1.9 2.5 2.3 3.1 Total 26.5 26.0 13.6 12.3 12.9 13.7

  21. Slide 21: Group Balance Sheet

    GROUP BALANCE SHEET £Ms 2002 2002 2001 December June December Fixed assets 177.4 199.5 202.0 Property 2.0 3.2 4.0 Stocks 98.2 101.0 99.1 Debtors 109.7 110.8 111.0 Investments 0.1 0.1 0.1 Cash 5.1 9.7 8.8 215.1 224.8 223.0 Creditors falling due within one year (121.0) (134.0) (132.6) Net current asse

  22. Slide 22: Slide 22

  23. Slide 23: Acquisition

    ACQUISITION O On 14 March TT electronics acquired the business of Demo Tableaux de Commande O Activity - Automotive climate control systems O Locations - Le Mans, France; Sao Paulo, Brazil O Turnover - 17.6m euros O Consideration - 3.7 million euros payable over 2 years O Employees - 136 France; 15

  24. Slide 24: Continuing growth from automotive sales

    O Continuing growth from automotive sales O Tight cost and balance sheet controls ensure that TT electronics is financially healthy O TT electronics can respond rapidly to any improvements in the marketplace O Seeking further acquisitions

  25. Slide 25: A World Leader in Sensor and Resistor Technology

    A World Leader in Sensor and Resistor Technology

  26. Slide 26: Slide 26

TT electronics — FY2002 Earnings Presentation on 6ix