Slide 1: Trellidor Holdings Limited Annual Results for the Year Ended 30 June 2021
TRELLIDOR HOLDINGS LIMITED ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Slide 2: 2021 Salient Points
2021 SALIENT POINTS 40.8 cents Headline earnings (2020: 13.8 cents) per share TERRY DENNISON R96 million Cash from operations GROUP CEO (2020: R55 million) for the year R518 million Revenue for the (2020: R422 million) year 21.0 cents Total dividends (2020: 8.0 cents) declared per share R12 million
Slide 3: Strategic Objectives for 2021
STRATEGIC OBJECTIVES FOR 2021 The Group prioritised its key strategies for F21 as follows: • Enhancement of route to market in South Africa and abroad to facilitate growth TERRY DENNISON GROUP CEO • Cash preservation and generation • Focus on improving operational efficiencies and active cost manage
Slide 4: Strategic Objectives Update
STRATEGIC OBJECTIVES UPDATE Enhancement of route to market in South Africa and abroad to facilitate growth • The Durban and Johannesburg West branches are now fully integrated, and the results have been excellent TERRY DENNISON GROUP CEO • Comparative sales through the Trellidor branches have increa
Slide 5: Strategic Objectives Update
STRATEGIC OBJECTIVES UPDATE Cash preservation and generation: • Cash generation has been excellent • Cash from operation is up 75% to R96m from R55m in the prior year TERRY DENNISON GROUP CEO • Particularly pleasing the improvement in Taylor’s cash generation, which is also up 75% year-on-year Focus
Slide 6: Strategic Objectives Update
STRATEGIC OBJECTIVES UPDATE Introduction of new products both locally and abroad • 4 new products were launched through the second half of H2 F21 to meet changing customer needs, and improve market penetration in certain sectors, primarily being TERRY DENNISON GROUP CEO gated estates • An extension
Slide 7: Prospects
PROSPECTS The continued Covid-19 restrictions, the third wave and the looting and riots has subdued demand in late F21 and early F22. This is also reflected by a decline in housing transaction TERRY DENNISON volumes following the sharp recovery post the National lockdown GROUP CEO Source: Lightstone
Slide 8: Prospects
PROSPECTS • Sales in July and August are in line with prior year with the impact of the looting and riots being mitigated by improved performance by our UK operation as the UK economy starts TERRY DENNISON to unlock with the relaxing of Covid-19 restrictions GROUP CEO • Our UK branch is now fully st
Slide 9: Prospects
PROSPECTS • We anticipate a recovery in our Africa markets, and have increased investment in marketing and management support for these markets TERRY DENNISON • Product innovation remains a key strategy for both Trellidor and Taylor. Trellidor will be GROUP CEO launching additional product configura
Slide 10: Prospects
PROSPECTS • The impact of significant raw material and freight cost increases, in particularly steel and aluminium, will put pressure on margins and will be responded to through selling TERRY DENNISON price increases through H1 F22 to partially offset the impact GROUP CEO • Dividend − A final divide
Slide 11: Group Financial Performance
GROUP FINANCIAL PERFORMANCE
Slide 12: Group Financial Performance
GROUP FINANCIAL PERFORMANCE FY 21 vs FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 FY 20 CAGR Revenue 539.0 286.2 514.9 274.8 421.5 281.6 518.4 23% -1% Gross profit 245.9 128.9 231.9 122.5 175.5 125.6 219.4 25% -3% DAMIAN JUDGE EBITDA 103.5 55.7 81.2 49.1 11.6 57.8 85.4 638% -5% GROUP CFO
Slide 13: Sales Analysis – Geographical Presence
SALES ANALYSIS – GEOGRAPHICAL PRESENCE Trellidor revenue has increased by 23% 7% Main centres (DBN, CPT, GP) • Main centres' contribution up 6% to 37% 15% Outlying regions 37% driven mainly by the 46% growth in the (RSA) Trellidor branches Africa DAMIAN JUDGE GROUP CFO • The International contributi
Slide 14: Sales Analysis – Product Type
SALES ANALYSIS – PRODUCT TYPE Trellidor’s traditional retractable range continues 12% Traditional Trellidor to be the primary contributor to the topline 5% 2% Clear Guard • Retractable’s contribution has declined 1% Rollerstyle year-on-year as a result of reduced demand 14% Polycarbonate Bar DAMIAN
Slide 15: Trading Margin
TRADING MARGIN 53.2% 53.8% • At a group level, margins have improved to 42.3% in 50.8% 52.2% 51.6% F21 9.1% 9.9% 9.9% 9.4% 10.2% • This included once-off restructuring costs in Trellidor 10.0% 10.5% 10.6% 10.7% and the restructuring of commission costs in Taylor 15.0% DAMIAN JUDGE • Raw Material cos
Slide 16: EBITDA
EBITDA 70.2 • The group’s EBITDA has increased 638% to 63.1 60.2 R85.4m from R11.6m in F20 which was 30.7 24.7 42.1 24.2 obviously significantly impacted by the 7.1 DAMIAN JUDGE national lockdown GROUP CFO • F20 included a R37.4m impairment in Goodwill 36.0 39.5 38.4 35.0 in Taylor which resulted in
Slide 17: Group Financial Position
GROUP FINANCIAL POSITION GEMED TAVECR HB. THE @iXSeexe.9 GROUP
Slide 18: Group Balance Sheet
GROUP BALANCE SHEET 350.0 35.0x Debt/Equity ratio of 48% (F20: 61%) – 300.0 231.5 214.2 30.0x change driven by a 11% increase in 226.7 188.6 25.0x 250.0 179.1 equity and a decrease in debt by 13% 161.2 Interest cover 20.0x 200.0 DAMIAN JUDGE 15.0x Interest cover ratio of 7.8x (F20: -0.8x) – 150.0 10
Slide 19: Group Net Working Capital
GROUP NET WORKING CAPITAL • Increase in inventory is necessary to 110.6 107.1 107.6 mitigate the current supply chain 93.1 93.1 89.7 challenges DAMIAN JUDGE • Payables have increased due to 64.8 62.4 57.2 56.5 63.5 65.5 GROUP CFO (34.6) increased inventory and the Trellidor (55.0) (52.4) (43.2) (47.
Slide 20: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW 68.2 70.5 69.9 59.6 58.5 DAMIAN JUDGE 49.6 49.6 GROUP CFO 43.0 43.5 44.9 40.4 40.3 37.0 32.6 31.8 31.8 31.2 25.0 26.8 17.5 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 -24.5 Profit after tax Cash from operating activities Free cash flow
Slide 21: Capital Allocation
CAPITAL ALLOCATION • Return to shareholders − F20 Postponed Interim dividend of R8m was paid − F21 Interim dividend of R10m was distributed − R12m spent on the buy-back of 4 993 776 shares at an average price of R2.35 per share DAMIAN JUDGE GROUP CFO • Debt Servicing − Paydown interest bearing liabi
Slide 22: Capital Allocation
CAPITAL ALLOCATION • UK Franchise Acquisition − 100% of the shares in UK Franchise was acquired for R33.0m − The purchase price net of cash is R17.5m − R12m was deployed from SA cash reserves to part fund the first and second purchase price instalments DAMIAN JUDGE GROUP CFO • H1 F22 Capital Allocat
Slide 23: Additional Information
ADDITIONAL INFORMATION
Slide 24: Earnings Per Share
EARNINGS PER SHARE FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 FY 21 vs FY 20 Profit attributable to ordinary shareholders 58.8 32.1 42.9 26.3 -21.3 30.4 39.8 287% Adjusted for: DAMIAN JUDGE Profit on disposal of property, plant and equipment (0.1) - 0.2 0.5 (0.1) (0.0) 0.1 GROUP CFO Imp
Slide 25: Group Summarised Balance Sheet
GROUP SUMMARISED BALANCE SHEET FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 Non current assets Property, plant and equipment 61.2 66.1 64.9 57.2 56.8 58.2 57.6 RoU Assets - - - 21.0 19.6 20.0 15.4 Goodwill and other intangibles 116.8 116.4 113.5 111.7 82.7 89.6 88.5 Deferred Tax 3.4 2.6 1
Slide 26: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 EBITDA 103.5 55.7 81.2 49.1 11.6 57.8 85.4 Movement in non cash items (incl provisions) 3.4 1.1 3.1 (1.9) 45.4 (1.4) (2.6) Net working capital movement 0.1 (16.0) (13.6) (0.6) (2.0) 7.5 13.5 Inventory (12.3) (4.2) (2.
Slide 27: Thank You
TERRY DENNISON DAMIAN JUDGE GROUP CEO GROUP CFO THANK YOU holdings.trellidor.co.za