Smiths News Plc · LSE:SNWS
Smiths News — FY2022 Earnings Presentation
23 slides from Smiths News's earnings presentation, Nov 9, 2022
Slide 1: Preliminary Results
Preliminary Results 9 November 2022
Slide 2: Headlines
Jon Bunting Chief Executive Officer Headlines
Slide 3: Headlines: Good performance driven by focus
Headlines Performance ahead of expectations Adjusted Operating Profit of £38.1m down 3.8% Adjusted profit before tax of £31.1m, up 0.6% Free cash flow of £48.2m up 100.8% Good Bank net debt of £14.2m, an improvement of 73% Cost planning and resilient sales underpinning results performance Early acti
Slide 4: Financial performance
Paul Baker Chief Financial Officer Financial performance
Slide 5: Financial headlines
Financial headlines £1,089m £40.7m £38.1m -1.8% -4.5% -3.8% Revenue Adj EBITDA (ex IFRS16) Adj Operating Profit £48.2m £14.2m £49.9m 100% -73% -40% Free cash flow Bank net debt Average net debt 4.15p +152% Dividend per share 5
Slide 6: Adjusted income statement
Adjusted income statement £m Adjusted FY 2022 FY 2021 Operating profit -£1.5m Revenue 1,089 1,109 Impact of inflation, offset by better wholesale margin, and ancillary EBITDA (ex. IFRS16) 40.7 42.6 revenue. Operating profit 38.1 39.6 Profit before tax +£0.2m Net finance charges (7.0) (8.7) Profit be
Slide 7: Revenue year on year
Revenue year on year Revenue £1,083m (-1.8%) Newspapers (-3.3%) Lower end of historic range (3%-5%) Newspapers Magazines One Shots Magazines (-2.6%) -3.3% -2.6% +43% Better than historic range (5%-6%) OneShots +43% Pokémon trading cards, improved OneShots as % of net income football collections 10%
Slide 8: Movement in bank net debt since FY 2021
Movement in bank net debt since FY 2021 Operating cashflow All cash flow excluding share 53.2 8.1 purchases and dividends 14.0 FY2021 was £22m due to higher adjusting item costs last year 26.1 (6.1) Average net debt (3.1) Reduced by 40% to £49.9m 14.2 Takes account of intra-month FY21 Pension Tuffne
Slide 9: Modelling guidance
Modelling guidance Change of headline • Adjusted operating profit – maintain performance performance measure Newdividends • Cash flow – consistent underlying cash flows stable allowing debt reduction and measure from FY2023 No change to underlying profit • Net debt – reducing with consistent operati
Slide 10: Headline performance measure
Headline performance measure £m FY 2022 FY 2021 Change of headline performance measure Adjusted EBITDA (pre IFRS16) 40.7 42.6 New measure from FY2023 Add back IAS17 rent 7.9 7.7 No change to underlying profit drivers Depreciation and amortisation (owned assets) (3.6) (4.3) IFRS16 depreciation (lease
Slide 11: Enhancing the core
Jon Bunting Chief Executive Officer Enhancing the core
Slide 12: Close management of performance
Year at a glance Lockdown Impact Sales revenue -1.8% Close Cost inflation Net impact £2.1m management Additional revenues Tactical and ancillary gains of performance Cash one-offs £24.1m drivers Dividends 1.4p 2.75p New 35% secured contracts 2022 Q1 Q2 Q3 Q4 2023 Q1 12
Slide 13: Delivering priorities; staying on track
Priorities FY2022 Service and efficiency Inflationary pressures Delivering Sales development Sustainability priorities; People staying Tactical revenues Capital Management on track Dividends Securing the future 13
Slide 14: Core business generating tangible value
Strong business model Service and efficiency • Service in line with KPI targets • Inflation impacting in line with forecasts • Ongoing network and process efficiencies Core business Sales and markets • Stabilised after tumultuous two years generating • Improved margin mix sustained • Price increases
Slide 15: Strategy and outlook
Strategy and outlook 15
Slide 16: Guiding principles of our strategy
Industry trends Opportunity assessment Future Transferable requirements skills Guiding Consumer behaviour principles of Guiding principles for opportunity assessment our strategy Grow from the core Founded on partnerships Adaptative and agile Capital prudence 16
Slide 17: A spectrum of adjacent opportunities
Future direction Service expansion Leveraging capabilities Logistics services A spectrum of adjacent Supply chain integration opportunities Direct to consumer Moving up the value chain Categories and data 17
Slide 18: A range of initiatives underway
Opportunity assessment Service expansion Logistics services A range of initiatives Supply chain integration underway Direct to consumer Categories and data 18
Slide 19: Clear plans and priorities for FY2023
Priorities FY2023 Sustaining the core Controlling costs Clear plans Renewing contracts and priorities Investing in capability for FY2023 Growing new revenues Maintaining strong returns 19
Slide 20: Well placed to grow shareholder value
Summary and outlook A solid core business • Large, resilient and predictable markets • Embedded skill in delivering service with efficiency Well placed • Contracts renewals giving future security Tangible value creation to grow • Financial strength and flexibility • Delivering for all stakeholders s
Slide 21: Any questions?
Any questions? é
Slide 22: Cautionary statement
Cautionary statement This document contains certain forward-looking statements with respect to Smiths News plc’s financial condition, its results of operations and businesses, strategy, plans, objectives and performance. Words such as ‘anticipates’, ‘expects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’
Slide 23: smiths
smiths