Avon Technologies Plc · LSE:AVON
Avon Technologies — Avon Rubber p.l.c. — H1 2014 Earnings Presentation
28 slides from Avon Technologies's earnings presentation, 2014
Slide 1: www.avon-rubber.com
www.avon-rubber.com
Slide 2: 2014 Interim Results
2014 Interim Results 2
Slide 3: Avon Rubber p.l.c. presenters
Avon Rubber p.l.c. Peter Slabbert Andrew Lewis Chief Executive Group Finance Director David Evans Sarah Matthews-DeMers Chairman Group Financial Controller 3 delivering our strategy
Slide 4: Highlights
Highlights 140 Financial highlights 120 Revenue £’m 100 80 • Operating profit growth of 41% and profit before tax up 45% H2 60 H1 • Return on sales (EBITDA divided by revenue) improved 4% 40 from 14% to 18% 20 0 • Diluted earnings per share up 53% 2010 2011 2012 2013 2014 • 137% conversion of operat
Slide 5: Delivering our strategy
Delivering our strategy 5 delivering our strategy
Slide 6: Andrew Lewis, Group Finance Director
Andrew Lewis Group Finance Director 6 delivering our strategy
Slide 7: Group income statement
Group income statement 2014 Interim 2013 Interim 2013 Full Year (Unaudited) (Restated*) (Restated*) £’m £’m £’m Revenue 3% 61.5 59.6 124.9 EBITDA 33% 11.1 8.4 20.0 Depreciation and amortisation (2.9) (2.6) (5.8) Operating profit before amortisation of acquired intangibles and exceptional items 41% 8
Slide 8: Protection & Defence
Protection & Defence Financials Revenue £’m 2014 2013 2013 Interim Interim Full Year 100 £’m £’m £’m 80 60 H2 Revenue 5% 45.6 43.5 93.2 40 Adjusted 20 H1 EBITDA 40% 9.2 6.6 16.1 0 Adjusted 2010 2011 2012 2013 2014 operating profit 57% 6.8 4.3 11.0 Operating Profit £’m Performance drivers 15 Growth
Slide 9: Protection & Defence market
Protection & Defence market 2014 H1 2013 H1 2013 FY 21% 13% 17% 27% 8% 6% £45.6m 8% 53% £43.5m 49% £93.2m 26% 28% 44% EMEA/NA LE Fire DOD masks and filters AEF/DOD Spares Growth in non-DOD revenue in line with strategy and includes delivery of the 52,000 C50s order won in 2013 Sales of mask syst
Slide 10: DOD contract summary
DOD contract summary Mask systems Filter spares (pairs) Sole Source Contract Vehicle Delivered 3000 Orders 2500 1,200,000 Total Service Requirement 1,000,000 2000 800,000 1500 600,000 1000 400,000 500 200,000 0 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 10
Slide 11: Dairy
Dairy Financials Revenue £’m 2014 2013 2013 40 Interim Interim Full Year £’m £’m £’m 30 Revenue 2% 15.9 16.1 31.7 20 H2 10 H1 EBITDA 10% 3.2 2.9 5.8 Operating 0 Profit 6% 2.7 2.6 5.2 2010 2011 2012 2013 2014 Operating profit £’m Performance drivers Higher milk prices and lower feed costs led to mo
Slide 12: Impact of US$ translation – slight headwind
Impact of US$ translation – slight headwind Group Protection & Defence 2013 Year 2013 Constant 2014 restated at 2013 Constant 2014 restated at 2013 currency Interim 2014 rates Interim currency Interim 2014 rates Interim growth £’m £’m £’m growth £’m £’m £’m Revenue 7% 61.5 57.5 59.6 Revenue 9% 45.6
Slide 13: Cashflow
Cashflow 2014 Interim 2013 Interim 2013 Year £’m £’m £’m Cash generated from operations 11.3 7.7 15.3 Tax (1.8) (0.9) (2.2) Interest 137% (0.1) (0.1) (0.4) O P E R A T I N G Payments to pension scheme P R O F I T (0.2) (0.3) (0.6) C O N V E R T E D Capital expenditure T O C A S H (3.1) (4.5) (11.1)
Slide 14: Summary balance sheet
Summary balance sheet 2014 Interim 2013 Interim 2013 Year £’m £’m £’m Intangible assets 16.3 15.6 16.6 Property, plant and equipment 19.8 19.6 20.4 Current assets 31.8 36.0 34.3 Current liabilities (23.2) (27.1) (23.4) Non-current liabilities (5.1) (5.0) (5.0) 39.6 39.1 42.9 Net debt (5.5) (9.9) (10
Slide 15: UK retirement benefit scheme
UK retirement benefit scheme IAS19R 2014 Accounting deficit moved from £11.3m at 30 Sept 2013 to £5.8m at 31 March 2014 due to strong asset performance from return-seeking assets while liabilities remained constant The movement from an asset of £1.8m at March 2013 to a deficit arose because the
Slide 16: Peter Slabbert, Chief Executive
Peter Slabbert Chief Executive 16 delivering our strategy
Slide 17: Protection & Defence roadmap
Protection & Defence roadmap Manufacturing Brand Technology Excellence DOD Global military NA Law Enforcement Fire Industrial and first Deltair SCBA (Mining, Oil, Gas, • JSGPM M50/M61 responder Thermal imaging Medical) • JSAM MM53 markets camera Escape products • Special forces M53 Rebreathe
Slide 18: Protection & Defence innovation
Protection & Defence innovation Product Strategy Delivers: Unique modular approach to respiratory protection Multi-community interaction through common Avon products Total market coverage for all Fire, Military and First Responder communities Filter Products FM54 & Law Enforcement SCBA MilCF50 & CBR
Slide 19: Protection & Defence opportunities
Protection & Defence opportunities Market Environment Growth Drivers • Budgets stabilised • Personal protection remains a priority • Funding line for JSGPM project still intact DOD • JSAM new programme start ($70m opportunity) • EEBD ($140m opportunity) • Navy rebreather programme ($15m opportunity)
Slide 20: Dairy roadmap
Dairy roadmap Manufacturing Brand Technology Excellence Expansion into Technology and margin Own brand developing markets enhancements in growth in Europe China mature US markets South America India 20 delivering our strategy
Slide 21: Dairy market
Dairy market The emergence of 3 billion Our revenue split middle-class consumers 3% 20,000 Source: OECD / McKinsey. 2011 datapoint based on UN statistics 15,000 EU 31% 25% 10,000 66% 5,000 NA 3.9 71% 2.2 0 0.8 FY11 FY11 FY12 FY12 FY13 FY13 FY14 1 1 1 H1 H2 H1 H2 H1 H2 H1 US EU China 2011 2020 2030 O
Slide 22: Dairy opportunities
Dairy opportunities Market Environment Growth Drivers • Farm profitability improving with • Cluster exchange higher milk price and lower input costs • ImpulseAir US • Farm consolidations (Mega farms) • Full cluster offering • Farm consolidations • Milkrite market share • Quota/subsidy reductions • I
Slide 23: Protection – other technologies / opportunities
Protection – other technologies / opportunities Industrial respiratory and PPE markets Future soldier programmes “ Avon Protection Systems is a customer-driven world leader of advanced CBRN/respiratory protection systems delivering Training and through-life quality, reliability, performance maintena
Slide 24: Dairy - other technologies/opportunities
Dairy - other technologies/opportunities Sensor technology Milkrite is a market-leading brand and telemetry of innovative high technology Vacuum pumps consumable products supplying Pulsators the growing dairy industry around the globe Cluster exchange service Claws Shell Tubing Liners Russia China E
Slide 25: Outlook statement
Outlook statement Our strategy of diversifying into broader protection and non-US defence markets has resulted in growth and supports the Board’s confidence that the Group can continue to make progress in the second half of the financial year. The Protection & Defence business is expected to continu
Slide 26: Wrap up
Wrap up We have been successful in the first half of 2014, delivering growth in revenue and earnings. 2014 H2 focus:- Protection & Defence Fusion JSAM Deltair launch Commercial activities Successful relocation of Lawrenceville facility Dairy Cluster exchange continued rollout Milkrite
Slide 27: Safe harbour statement
Safe harbour statement Avon Rubber p.l.c. (the ‘Group’) is providing the following cautionary statement. This document contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of the Group. These statements are sometim
Slide 28: Download our iPad app
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