Strix Group Plc · LSE:KETL
Strix — H1 2018 Earnings Presentation
20 slides from Strix's earnings presentation, 2018
Slide 1: Strix Group Plc Interim Results 2018
Strix Group Plc Safer by design INVESTOR PRESENTATION INTERIM RESULTS 2018
Slide 2: The Journey of Strix
The Journey of Strix Key history and development aqua Optima
Slide 3: Highlights
Highlights Safer by design 3
Slide 4: Highlights
Highlights Solid trading performance in line with market expectations • Revenues up 1.5% (c.4% on a constant currency basis) and Adjusted EBITDA up 4.3% • Gross Profit increased by 3.5% to £16.3m versus H1 2017 Continued strong cash flow and improved net debt position • Cash conversion at 97%, with
Slide 5: Financial Review
Financial Review Safer by design 5
Slide 6: Financial Highlights
Financial Highlights 5.4% pro-rata yield3 Note: 1 Adjusted results exclude exceptional items which includes share based payment costs, is a non- GAAP metric used by management and is not an IFRS disclosure. 6
Slide 7: Profit and Loss Summary
Profit and Loss Summary £m H1 2018 H1 2017 % Change3 Revenue 42.9 42.2 +1.5% Gross profit 16.3 15.7 +3.5% Other operating costs - before exceptional (4.5) (4.7) +3.5% Other operating costs - after exceptional (6.9) (5.6) -23.3% Adjusted EBITDA1 14.8 14.2 +4.3% Adjusted PBT1 11.0 11.2 -1.9% Adjusted
Slide 8: Cash Flow
Cash Flow Commentary: £m H1 2018 H1 2017 Inventory: £1.0m outflow (H1 2017: £0.6m outflow) linked to business phasing and holding of price-sensitive raw materials. Adjusted EBITDA1 14.8 14.2 Inventories (1.0) (0.6) Receivables: £0.8m outflow (H1 2017: £0.3m inflow) increase in receivables result
Slide 9: Net Debt
Net Debt Net debt at 30 June 2018 RCF balance at 30 June 2018 £37.9m £48.0m £45.9m at 31 December 2017 £56.0m at 31 December 2017 Revolving credit facility Facility headroom at 30 June 2018 £55.0m £7.0m with facility termination date of July 2022 available to draw down if required ND/EBITDA ratio at
Slide 10: Progress Update
Progress Update Safer by design 10
Slide 11: Strix maintains 38% share in H1 2018
Strix maintains 38% share in H1 2018 REGULATED LESS REGULATED CHINA Market growth slightly softened to 3% from 5% in Market growth slightly softened to 8% from 12% in Market growth recovered to 6% from -6% in 2017 2017 but remains well ahead of the 5 year CAGR 2017 Strix share broadly static
Slide 12: Progress Update: Aqua Optima
Progress Update: Aqua Optima Aqua Optima total H1 value share of the UK market has grown to >20% in a market of c.£63m. Aqua Optima own brand now has 8.7% of the UK market, from <4% in 2016. Tracked volume sales of the Aqua Optima Evolve filter during the same period have grown 76% vs PY and A
Slide 13: Growth Strategy
Growth Strategy “Shaping a safer future in the design and supply of innovative hot water and filtration systems which provide enhanced convenience and functionality to the global consumer” Safer by design 14
Slide 14: Business Strategy
Business Strategy Metrics: Global dashboard aligned to improvements in EE and / or EPS Certification: ISO 14001, 9001 and 45001; OHSAS 18001; IEC17025 plus relevant ongoing product approvals Customer: Regular internal and external customer surveys to ensure continuous improvement and customer focus
Slide 15: Current Trading and Outlook
Current Trading and Outlook 19
Slide 16: Future Strategy and Outlook
Future Strategy and Outlook NPD focus on HWoD and baby sector. New EK control to launch H2 2018. Aqua Optima launch in China in H2 2018 with new Chiller to launch in H1 2019. Recycling initiative to be launched in H1. Key commodities secured for remainder of 2018 in line with purchasing policy
Slide 17: Appendices
Appendices Safer by design 21
Slide 18: Board of Directors
Board of Directors Highly experienced Board Mark Bartlett – Chief Executive Officer Raudres Wong – Chief Financial Officer BACKGROUND: BACKGROUND: Joined in 2006 as Sales Director, then became CCO and Joined as CFO in 2011, with over 20 years of progressed through to CEO in 2015. international e
Slide 19: Kettle Controls
Kettle Controls Strix’s speciality and market share/position in kettle controls provide a significant barrier to entry CONTROLS IN THE CONTEXT OF A FINISHED KETTLE STRIX PRODUCT STRENGTHS 2 Strix designs and manufactures high quality products – USPs include: 1 Underfloor heating system heats water
Slide 20: Disclaimer
Disclaimer This presentation has been prepared by Strix Group Plc (the “Company”) and comprises the following presentation slides (the “Slides”) for the sole use at a presentation concerning the Company. The Slides contain statements that are or may be deemed to be “forward-looking statements”, whic