Filtronic plc · LSE:FTC
Filtronic — FY2019 Earnings Presentation
23 slides from Filtronic's earnings presentation, 2019
Slide 1: Investor Presentation Final Results FY2019
Investor Presentation Final Results FY2019
Slide 2: Contents
Contents 1. Executive Summary 2. Financial Results 3. Strategy 4. Markets, Applications and Positioning 2
Slide 3: 1. Executive Summary
(f Filtronic | Together we build a stronger connection 1. Executive Summary www.filtronic.com
Slide 4: FY2019 Highlights
FY2019 Highlights Filtronic plc is a designer and manufacturer of advanced RF communications products supplying a number of market sectors, including mobile telecommunications infrastructure, defence and aerospace and public safety. 5G Backhaul demand is growing and with a strong order book for tran
Slide 5: 2. Financial Results
IF \, Filtronic | Together we build a stronger connection 2. Financial Results www.filtronic.com
Slide 6: Profit and Loss Statement – continuing business
Profit and Loss Statement – continuing business FY 2019 FY 2018 • Group revenue £15.9m (2018: £21.6m). year to 31 May 19 year to 31 May 18 w Sales revenue decrease of 26% due to Audited Audited planned strategic withdrawal from OEM filters and one-off public safety £’000 £’000 programme in 2018. Rev
Slide 7: Balance Sheet
Balance Sheet FY 2019 FY 2018 • Deferred tax assets recognised in the UK year to 31 May 19 year to 31 May 18 and USA entities to reflect forecast Audited Audited profits. £'000 £'000 Goodwill and other intangibles 1,247 3,904 • Net assets held for sale of £2.8m - stated Property, plant and equipment
Slide 8: Cash Flow Statement
Cash Flow Statement FY 2019 FY 2018 Currency year to 31 May 19 year to 31 May 18 • Natural hedging, predominantly USD. Audited Audited £’000 £’000 Cash Position and Cashflows Net cash (used in)/ from operating (20) 1,761 activities • Cash outflow from operating activities Net cash used in investing
Slide 9: 3. Strategy
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Slide 10: Objectives and Strategy
Objectives and Strategy Filtronic’s objective is to grow profitably and to achieve this by being an embedded partner to our customers for technically advanced Radio Frequency (RF) components and sub-systems on “long tail” projects of strategic value to our clients. We will focus on markets and appli
Slide 11: Organisational overview
Organisational overview Our locations are: • Leeds, UK – Head office and engineering. • Sedgefield, UK – mmWave engineering, manufacturing, sales and central services. • Salisbury, MD, USA – Sales, repair and service and public safety manufacturing. Our objectives are: • To maximise productivity and
Slide 12: 4. Markets, Applications and Positioning
4. Markets, Applications and Positioning
Slide 13: Applications
Applications Filtronic serves challenging, growing markets that require technically innovative, high quality, durable products that are often required to work in harsh environments and to demanding specifications. Core applications: • 5G backhaul. • Public safety. • Defence and aerospace. Potential
Slide 14: 5G Backhaul – The Market
5G Backhaul – The Market • Backhaul represents the various connections between the edge of network, remote radio heads and the core fibre network. • Approximately 65% of backhaul connections (excl. China, Japan and South Korea) are sub 23GHz wireless. • 5G deployment leading to a significant push to
Slide 15: 5G Backhaul – Our Position
5G Backhaul – Our Position • Filtronic designs, manufactures and supplies class- leading transceivers to OEMs for integration into their Outdoor radio Units (ODUs). w This allows customers to concentrate on their core competence of software and modem design. w Plug-and-play design results in reduced
Slide 16: Public Safety – The Market
Public Safety – The Market • Public safety networks are communications networks operated for or by emergency services. • Two main international standards have been adopted world-wide: w The US Standard - Project 25 (“P25”). w The European Standard – TETRA. w Other countries (notably China) have esta
Slide 17: Public Safety – Our Position
Public Safety – Our Position • Filtronic has traditionally focussed on the North American P25 market, where we supply into the largest OEM in the market. • Closer engagement with our core customer has improved our profile and enabled us to identify new opportunities: w We have recently been awarded
Slide 18: Public Safety – Our Position (continued)
Public Safety – Our Position (continued) • Onshoring of manufacturing to our facility in Maryland, USA from China. w Expected to transition in H2 FY2020. • The rationale for this is: w ‘Made in America’ for a market that is increasingly security conscious and increasingly restricting foreign product
Slide 19: Defence and Aerospace – The Market
Defence and Aerospace – The Market • Increasing geopolitical tensions leading to increased defence spending by national governments. The focus is on agility and intelligent capability rather than “boots and bombs”. • Sophisticated, resilient, high performance communications and radar systems are cor
Slide 20: Defence and Aerospace – Our Position
Defence and Aerospace – Our Position • Defence and aerospace is a traditional market for Filtronic. we have been working hard to rebuild a position in this market. • Major contract wins to supply Transmit Receive Modules for an airborne radar application has given us a good position to further penet
Slide 21: Other Growth Markets – the rationale
Other Growth Markets – the rationale • Spending on telecoms infrastructure tends to be “generational” (3G, 4G, 5G) and consequently experiences significant peaks and troughs. • Alternative network technologies and topologies are more challenging technically but present an opportunity for Filtronic t
Slide 22: Other Growth Applications – the targets
Other Growth Applications – the targets We have been commercially active in each of the following application fields during FY2019 and are looking to build on this initial success over the coming two years. • Low Latency Private Networks: Principally for financial markets as radio waves travel faste
Slide 23: For further information, please visit our website
For further information on our range of products and services, please visit our website: www.filtronic.com Contact Us: investor.relations@filtronic.com UK Sweden USA China Filtronic House NETPark Plexus Antennvägen 6A 700 Marvel Road RM 802 3 Airport West Thomas Wright Way 18766 Salisbury Block 1 La