Gooch & Housego PLC · LSE:GHH
Gooch & Housego — FY2008 Earnings Presentation
18 slides from Gooch & Housego's earnings presentation, November 2008
Slide 1: Investor Presentation November 2008
INVESTOR PRESENTATION November 2008 Gooch & Housego PLC - A Global Technology Business POSITIONED TO EXPLOIT THE ADOPTION OF PHOTONICS in Industrial & Research Aerospace & Defence Biomedical & Life Sciences Chairman: Dr Julian Blogh CEO: Gareth Jones CFO: Peter Quinn
Slide 2: Global Locations
Global Locations Norderstedt, Cleveland, Torquay Hamburg Ohio Ilminster San Francisco, California Boston, Moorpark, Hong Kong Massachusetts California Denver, Colorado Orlando, Florida Melbourne, Founded in Ilminster 1948 Florida Lakewood, New Jersey Total Number of Employees: 525 8 Facilities 4 Sal
Slide 3: The Technology is Photonics
The Technology is PHOTONICS “Photonics is the science of harnessing light…. and its utilisation for the benefit of mankind” Pierre Aigrain, 1967 “Just as the technological breakthroughs of the 20th century were enabled by the utilisation of the electron, the 21st century will likely prove to be the
Slide 4: Achievements in 2008
Achievements in 2008 - Reorganised, re-positioned and re-branded Gooch & Housego - Established new corporate & divisional structures – more tax efficient - Created new management team and strengthened board - Created global sales organisation; opened 4 new sales offices - Completed state-of-the-art
Slide 5: 2008 Overview
2008 Overview Semiconductor and microelectronics Acousto Optics - sales down Downturn kicked in at the start of the year No sign of a recovery Healthcare and Life Sciences Fibre Optics - sales up Roll out of ophthalmic imaging systems at point-of-care Optical techniques in diagnostics and biomedical
Slide 6: Financial Impact
Financial Impact - Total revenues up by 8.8%. - helped by first full year contribution from fibre optics acquisition - Revenues of core business down by 5.5% - due to downturn in semiconductor business - Change in product mix - reduced sales of higher margin acousto-optic products - increased sales
Slide 7: Market Opportunities
Market Opportunities Industrial & Research Fibre Lasers - optical isolator - fused fibre combiners - fibre coupled Q-Switches Semiconductor Lithography - Today: quartz crystal optics for 193nm systems - Tomorrow: EUV reflective optics for 13.5nm Laser induced nuclear fusion - research into zero-carb
Slide 8: Market Opportunities
Market Opportunities Aerospace & Defence - Navigation & guidance systems - Directional Energy Weapons Systems - High bandwidth communications systems - Remote Sensing - Counter Measures - Range Finding - Target Designation - Aircraft data and control systems
Slide 9: Market Opportunities
Market Opportunities Instrumentation & Life Sciences - Microscopy - Ophthalmic Imaging - High throughput screening - Live animal imaging - Diagnostics - Remote Sensing - Process control - Hazard Detection
Slide 10: Financial Highlights – Income Statement
Financial Highlights – Income Statement - Revenue - Up 8.8% to £33.4m (2007: £30.7m) including first full year contribution from Fibre Optic business acquired in May 2007. - Operating profit - £5.4m (2007: £6.5m) - down 17.0% - Before amortisation of acquired intangible assets £5.7m (2007: £7.0m) -
Slide 11: Financial Highlights – Income Statement
Financial Highlights – Income Statement - Order book - Order book of £15.7 million (2007: £12.8m) up 21% over 30 September 2007 - Gross profit - £15.9m or 47.6% (2007: £16.0m or 52.2%) reflects changing business mix - EBITDA - £6.8m million or 20.3% (2007: £7.7m or 25.1%) despite adverse first quart
Slide 12: Income Statement - Summary
Income Statement - Summary Year to Year to Change 30/09/2008 30/09/2007 2008 vs 2007 £000 £000 % Revenue 33,369 30,675 8.8% Gross profit 15,890 16,024 -0.8% Operating expenses (10,233) (9,023) -13.4% Operating profit before amortisation of 5,657 7,001 -19.2% acquired intangible assets Amortisation a
Slide 13: Divisional Financial Highlights
Divisional Financial Highlights Years to 30 September 2008 & 2007 Components & Materials and Instrumentation & Life Sciences Excluding Head Office 2008 2007 Change £m £m % Revenue 33.4 30.7 + 8.8% EBITDA 9.0 8.8 +2.0% EBITDA margin % 27.0% 28.8% - 1.8% Operating profit before amortisation acquired i
Slide 14: Financial Highlights – Balance Sheet/Cash Flow
Financial Highlights – Balance Sheet/Cash Flow Non-current assets - Up 14.9% to £25.0m (2007: £21.7m) reflecting primarily - Investment to complete Dowlish Ford facility - Reduction in carrying value of deferred taxation assets on share options Working capital - Up 42.5% to £8.6m (2007: £6.0m) refle
Slide 15: Cash Flow - Summary
Cash Flow - Summary Year to Year to Change 30/9/2008 30/9/2007 2008 vs 2007 £000 £000 % Net cash flows from operating activities 4,094 3,856 6.2% - Income statement 6,625 8,097 -18.2% - Working capital & taxation (2,531) (4,241) 40.3% Net cash flows from investing activities (4,922) (6,187) 20.4% -
Slide 16: Balance Sheet - Summary
Balance Sheet - Summary Non-current assets - Tangible & Intangible assets 23,816 19,314 23.3% - Other 1,152 2,408 -52.2% Total 24,968 21,722 14.9% Current assets - Inventories 5,929 5,081 16.7% - Trade & other receivables 8,441 6,854 23.2% - Cash & cash equivalents 3,901 5,428 -28.1% - Other - 357 -
Slide 17: General Optics - Financial Impact
General Optics - Financial Impact Financial Performance – FY 2007 – Revenue $11.7m (£5.9m) & EBITDA $2.8m (£1.4m) Pro-forma Impact on Gooch & Housego FY 2008 – Revenue £33.4m plus £5.9m = £39.3m - Up 17.7% – EBITDA £ 7.7m plus £1.4m = £ 9.1m - Up 18.2% Impact on Normalised EPS FY 2008¹ – Basic 20.0p
Slide 18: Key Issues for 2009
Key Issues for 2009 - Semiconductor market unlikely to recover in 2009 - Prolonged economic uncertainty could affect other sectors - General Optics will help sustain growth despite the challenging market conditions - Several important new product launches scheduled High Power Fibre Fibre Q Coupled I