Slide 1: Excellence in ventilation
Excellence in ventilation Volution Group plc Full year results to 31 July 2019
Slide 2: Excellence in ventilation
Excellence in ventilation 1. MVHR (Mechanical Ventilation with Heat Recovery) 6 2. dMVHR 5 (Decentralised Mechanical 9 Ventilation with Heat Recovery) 3 4 3. MEV (Mechanical Extract Ventilation) 5 4. PIV (Positive Input 1 Ventilation) 2 5. Single Room Extract Fans 8 6. Inline Fans 7 7. Passive Venti
Slide 3: Introduction
Introduction Excellence in ventilation Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics, Central Europe and Australasia. >> Introduction Ronnie George Andy O’Brien >> Our Refreshed Strategy Chief Executive
Slide 4: At a Glance
At a Glance 90+10+M Brands Leading in residential and commercial % of Volution Group revenue (by segment) markets across two business segments. Ventilation Group 90.0% OEM (Torin-Sifan) 10.0% We operate through two segments: Ventilation Group >> 90.0% of Group revenue (2018: 89.0%). >> The Venti
Slide 5: Our Locations
Our Locations UK Nordics We aim for our products to enhance 34.9% our customers’ experience of ventilation by reducing energy consumption, improving indoor air quality and design and making them easier to use. Our acquisition strategy since IPO has Central Europe Australasia increased the number of
Slide 6: Our Investment Case
Our Investment Case Why invest in Volution Operational Structural Market In many of our markets we have leading brands, products and sales channel access. 15 Growing focus There is increasing global focus on indoor air quality. There will be increasing demand leadership Our business model helps deve
Slide 7: Our Refreshed Strategy
Our Refreshed Strategy Full year results to 31 July 2019
Slide 8: Operational Excellence introduced as one of our three strategic pillars
Our Refreshed Strategy Operational Excellence introduced as one of our three strategic pillars Before After Organic growth in all our markets Organic growth in all our markets >> Now including organic growth in Torin-Sifan Growth through a disciplined and Growth through a disciplined and value-addin
Slide 9: Our Refreshed Strategy – Three Strategic Pillars
Our Refreshed Strategy – Three Strategic Pillars Organic revenue growth (cc) £m Average annual organic growth of 3.2% over five years since listing in 2014 £7.2m Organic growth in all our markets £5.9m 3.5% 4.9% £4.5m >> Continue to grow through a focused sales strategy for each of our market sector
Slide 10: Our Refreshed Strategy – Three Strategic Pillars continued
Our Refreshed Strategy – Three Strategic Pillars continued Inorganic growth (cc) £m Average annual inorganic growth of 11.3% over five years since listing in 2014 £25.0m Growth through a disciplined and 12.2% value-adding acquisition strategy £20.1m 15.6% £19.1m 12.5% £16.0m 8.7% We will continue to
Slide 11: Return on Investments
Return on Investments Growing returns through post-acquisition synergies and performance improvements EBITDA ROIC in first Implied FY19 FY19 return >> The table shows the FY19 adjusted EBIT/EBITDA for multiple at full year post- EBITDA on invested recent acquisitions, expressed as: Acquired business
Slide 12: Our Refreshed Strategy – Three Strategic Pillars continued
Our Refreshed Strategy – Three Strategic Pillars continued Operational Excellence We have re-emphasised our dedication to Operational Excellence. Now that the commissioning of the new Reading facility in the UK has been finalised we can attend more generally to improving efficiency of all of our ope
Slide 13: Financial Review
Andy O’Brien – CFO Financial Review Full year results to 31 July 2019
Slide 14: 2019 Highlights
2019 Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £235.7m £42.1m 17.8% 235.7 42.1 22.0 22.6 21.0 205.7 35.6 37.1 19.3 185.1 32.5 18.0 17.8 29.4 154.5 26.5 H2 H2 130.2 17.5 18.1 120.7 H1 H1 18.5 17.6 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019
Slide 15: 2019 Highlights continued
2019 Highlights continued Adjusted EPS p Adjusted operating cash flow £m Net debt £m 16.0p £36.9m £74.6m 16.0 35.9 36.9 14.5 34.4 13.6 31.1 12.6 27.6 11.0 22.8 8.8 77.2 74.6 42.9 37.0 36.1 21.2 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 >> Adjusted EPS
Slide 16: Financial Highlights
Financial Highlights Financial year ended 31 July 2019 Key highlights Movement 2019 Movement >> Revenue growth 14.6% (15.7% at cc). 2019 2018 % (cc) % >> Revenue growth would have been £2.2 million higher at cc. Revenue (£m) 235.7 205.7 14.6% 237.9 15.7% Adjusted operating profit (£m)1 42.1 37.1 13.
Slide 17: Adjusted Profit Before Tax Reconciled to Reported Profit Before Tax
Adjusted Profit Before Tax Reconciled to Reported Profit Before Tax Financial year ended 31 July 2019 2019 2018 Movement Adjustments £m £m £m >> Exceptional operating costs: Adjusted profit before tax 39.9 35.8 4.1 >> Acquisition-related costs reduced (£0.5 million). Items excluded from adjusted mea
Slide 18: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Financial year ended 31 July 2019 31 July 2019 31 July 2018 >> Non-current assets decreased by £2.3 million, mainly as £m £m a consequence of depreciation and amortisation offset Property, plant and equipment 23.8 22.6 by £5.8 million of capital e
Slide 19: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Financial year ended 31 July 2019 2019 2018 >> Increasing adjusted operating cash flow of £36.9 million: £m £m >> Increase in inventories partly to mitigate supply chain Opening net debt at 1 August (77.2) (37.0) risks as a consequence of Brexit uncertainty. Mov
Slide 20: Business Update and Outlook
Ronnie George – CEO Business Update and Outlook
Slide 21: Growth by Market Segment
Growth by Market Segment 2019 2019 2018 Growth Growth % of Volution Group revenue (by segment) £m £m (cc) £m % % (cc) Ventilation Group 90% 90+10+M Ventilation Group revenue 212.1 214.2 183.1 15.8% 17.0% OEM (Torin-Sifan) 10% OEM (Torin-Sifan) revenue 23.6 23.7 22.6 4.5% 4.8% Total Volution Grou
Slide 22: Market Sector Review: UK Ventilation Group
Market Sector Review: UK Ventilation Group % of Volution Group 53+47+M Total Organic Inorganic Total revenue 2019 2019 (cc) 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % UK Ventilation Group revenue 111.9 112.0 108.5 3.2% 3.3% — 3.3% UK New Build Residential Systems 27.8 27.8 25.6
Slide 23: Market Sector Review: Nordics
Market Sector Review: Nordics % of Volution Group 80+20+M Total Organic Inorganic Total revenue 2019 2019 (cc) 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Nordics revenue 47.0 48.7 36.7 28.1% (2.3)% 34.9% 32.6% 19.9% Nordics >> Sales increase of 28.1% (32.6% at cc) with an organ
Slide 24: Market Sector Review: Central Europe
Market Sector Review: Central Europe % of Volution Group 87+13+M Total Organic Inorganic Total revenue 2019 2019 (cc) 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Central Europe revenue 31.0 31.1 28.5 8.9% 9.3% — 9.3% 13.1% Central Europe >> Organic revenue growth of 8.9% (9.3% a
Slide 25: Market Sector Review: Australasia
Market Sector Review: Australasia % of Volution Group 91+9+M Total Organic Inorganic Total revenue 2019 2019 (cc) 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Australasia revenue 22.2 22.5 8.2 171.0% 8.8% 165.7% 174.5% 9.5% Australasia >> Sales grew by 171.0% (174.5% at cc) drive
Slide 26: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review: OEM (Torin-Sifan) % of Volution Group 90+10+M Total Organic Inorganic Total revenue 2019 2019 (cc) 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % OEM (Torin-Sifan) revenue 23.6 23.7 22.6 4.5% 4.8% — 4.8% 10.0% OEM (Torin-Sifan) >> Revenue was £23.6 million (20
Slide 27: Summary and Outlook
Summary and Outlook Three strategic pillars >> Strong revenue growth in the year of 14.6% (15.7% at cc). >> Organic revenue growth of 2.6% (3.5% at cc). Before >> Ventair Pty Limited was acquired in the year (March 2019) and is integrating well. Organic growth in all our markets >> The ventilation m
Slide 28: Our Business Model
Our Business Model WE LISTEN We listen to our customers and end users to help them Employees solve their ventilation Volution Group is founded upon and problems and meet their WE INNOVATE underpinned by the excellence of its regulatory obligations. We continue to innovate people. The experience, kno
Slide 29: Thank You Q&A
Thank You Q&A Volution Group plc Full year results to 31 July 2019
Slide 30: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as