Trellidor Holdings Ltd. · JSE:TRL
Trellidor — H1 FY2024 Earnings Presentation
25 slides from Trellidor's earnings presentation, Mar 7, 2024
Slide 1: Welcome - Half Year Results Presentation
Trellidor Holdings Limited 31 December 2023 Half Year Results Presentation 7 March 2024 | 10:00 | Hosted by PSG Capital WELCOME We will begin shortly holdings.trellidor.co.za
Slide 2: Half Year Results for the Six Months Ended 31 December 2023
TRELLIDOR HOLDINGS LIMITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Slide 3: Introduction
INTRODUCTION KEVIN HODGSON Independent Non-Executive Chairperson
Slide 4: Operational Review
OPERATIONAL REVIEW TERRY DENNISON Group Chief Executive Officer
Slide 5: Domestic Market Overview
DOMESTIC MARKET OVERVIEW Challenges • Continued weak economic climate domestically. • High interest rates and constrained disposable income. • Supply chain challenges increasing lead times on imports. • Metal prices remain at high levels but have stabilised. • Consumer uncertainty – elections in May
Slide 6: Salient Features for the Six Months
SALIENT FEATURES FOR THE SIX MONTHS Revenue R 292.2 million (2023: R273.3 million) Operating profit 12.3% margin (2023: 13.1%) Headline earnings 21.4 cents per share (2023: 25.5 cents) Cash from R 39.5 million operations (2023: R 7.0 million) Net debt R 116.8 million (2023: R 140.3 million)
Slide 7: Challenges Faced
CHALLENGES FACED The Group faced two significant challenges through the period: • Declining revenue in the domestic market • High opening debt levels as at 30 June 2023, at higher interest rates. In response to the challenges, the following was achieved: • Revenue from international markets increase
Slide 8: Continued Focus
CONTINUED FOCUS In response to continued ongoing domestic macro-economic challenges, strategies remain focused on: • Restructuring and optimally reducing the current level of net debt. • Further improved working capital management. • Rigorous cost control. • Optimising revenue generation domesticall
Slide 9: Financial Review
FINANCIAL REVIEW DAMIAN JUDGE Group Chief Financial Officer
Slide 10: Group Financial Performance
GROUP FINANCIAL PERFORMANCE Revenue Operating Profit HEPS R 292.3 million R 36.1 million 21.4 c up 6.9% up 0.5% down 16.1% • Strong performance from international divisions, offset by weak demand in South Africa. • Operating profit margin decreased to 12.3% driven by the under-recovery of semi-fixed
Slide 11: Group Segmental Analysis
GROUP SEGMENTAL ANALYSIS Revenue* 5% 6% Trellidor Trellidor 25% Taylor 30% Taylor F24 F23 NMC 64% NMC 70% Operating Profit 3% 8% 14% Trellidor Trellidor 19% Taylor Taylor F24 F23 NMC NMC 73% 83% *Before intersegmental eliminations
Slide 12: Group Segmental Analysis
GROUP SEGMENTAL ANALYSIS Product Source 30% Security Security 35% products products F24 F23 Decorative Decorative products 65% products 70% Geographical Source 2% 18% 9% South Africa South Africa 10% Rest of Africa Rest of Africa F24 F23 Rest of World Rest of World 72% 89%
Slide 13: Trellidor Financial Performance
TRELLIDOR FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 204.0 million R 27.7 million 13.6% up 14.6% up 3.3% from 15.6% • Strong performance from international divisions, offset by weak demand in South Africa. • Disappointingly operating profit only increased by 3.3% primarily as
Slide 14: Taylor Financial Performance
TAYLOR FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 73.8 million R 4.8 million 6.5% down 11.5% down 33.3% from 8.6% • Demand in the market for Taylor’s decorative products was muted. • Reduced demand negatively impacted operating profit due to the under-recovery of fixed and sem
Slide 15: NMC Financial Performance
NMC FINANCIAL PERFORMANCE Revenue Operating Profit Operating Margin R 15.2 million R 1.0 million 6.6% down 14.9% down 68.7% from 17.8% • As with Taylor, NMC has also experienced reduced demand through the period impacting margins. • Volumes from the Gauteng operation are the most significantly impac
Slide 16: Group Financial Position
GROUP FINANCIAL POSITION Net debt Net working capital Cash from operations R 116.8 million R 107.5 million R 39.5 million down 16.8% down 24.7% up 465.3% • On 16 November 2023, the Group advised shareholders that the primary lender had condoned the covenant breaches. • No amendments to the existing
Slide 17: Group Balance Sheet
GROUP BALANCE SHEET HY 2021 FY2021 HY2022 FY2022 HY2023 FY2023 HY 2024 Gam Debt MM Equity ===Interest cover silat TRELLIDOR Feld
Slide 18: Group Net Working Capital
GROUP NET WORKING CAPITAL 65.4 74.6 x 29] — HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 Mmmm Trade andotherreceivables Mlllilnventory MllliTrade and other payables ——NWC silat TRELLIDOR Feld
Slide 19: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW dle ata HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 @ Profit aftertax | Cash from operating activities | Free cash flow silat TRELLIDOR Feld
Slide 20: Q & A
TERRY DENNISON DAMIAN JUDGE GROUP CEO GROUP CFO Q&A holdings.trellidor.co.za
Slide 21: Appendix
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Slide 22: Group Financial Performance
GROUP FINANCIAL PERFORMANCE HY 24 vs 5 YR HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 HY 23 CAGR Revenue 281.6 518.4 283.5 513.2 273.3 502.3 292.2 7% 1% Gross profit 125.6 219.4 113.7 197.2 119.5 193.4 120.3 1% -1% EBITDA 57.8 85.4 46.5 29.3 42.0 41.6 46.7 11% -4% Profit after tax 31.2 4
Slide 23: Earnings Per Share
EARNINGS PER SHARE HY 24 vs HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 HY 23 Profit attributable to ordinary shareholders 30.4 39.8 24.1 0.4 24.3 3.5 20.4 -16% Adjusted for: Profit on disposal of property, plant and equipment (0.0) 0.1 (0.0) (0.0) - 0.5 - Impairment of goodwill - - - -
Slide 24: Group Financial Position
GROUP FINANCIAL POSITION HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 Non current assets Property, plant and equipment 58.2 57.6 60.5 59.9 63.3 69.0 66.9 RoU Assets 20.0 15.4 47.1 42.2 40.0 40.6 39.5 Goodwill and other intangibles 89.6 88.5 94.2 99.4 101.3 105.8 109.0 Deferred Tax 3.2 7.6
Slide 25: Group Cash Flow
GROUP CASH FLOW HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 EBITDA 57.8 85.4 46.5 29.3 42.0 41.6 46.7 Movement in non cash items (incl provisions) (1.4) (2.6) 0.3 31.1 0.6 2.8 (4.2) Net working capital movement 7.5 13.5 (18.4) (21.3) (25.1) (5.3) 8.7 Inventory 6.4 (11.8) (9.5) (15.2) (13