Slide 1: Healthy air, sustainably
Healthy air, sustainably Volution Group plc Interim results 2021
Slide 2: Agenda
Agenda Overview Financial Review Business Review and Strategy Ronnie George Andy O’Brien Summary and Outlook Chief Executive Officer Chief Financial Officer Q&A Volution Group plc Interim results to 31 January 2021 1
Slide 3: Overview
Ronnie George – CEO Overview Interim results to 31 January 2021
Slide 4: Delivering well against our strategy, strong performance in H1
Delivering well against our strategy, strong performance in H1 Successfully managing challenges of Covid-19 with our dedicated employees Organic growth across all geographic regions >20% margin target achieved 6 months earlier than anticipated Largest acquisition to date with a pipeline that remains
Slide 5: H1 2021 summary
H1 2021 summary Organic Adjusted Adjusted Operating cash Group’s largest Net debt revenue growth operating EPS growth flow conversion acquisition to adjusted margin to date EBITDA ratio ClimaRad +7.5%cc 21.1% +23.2% 104.5% £37.1m 1.4x Strong revenue and profit growth, operating margin 21.1% Volution
Slide 6: Sustainability KPIs
Sustainability KPIs Targets and measurements H1 update Focus area Target FY 2020 H1 2021 In support of the United Nations Sustainable Development Goals Target 70% of our sales 59% 62.1% revenue from low-carbon Product products¹ by the end of FY2025. Target 90% of the plastic 56% 63.1% that we proces
Slide 7: Financial Review
Andy O’Brien – CFO Financial Review Interim results to 31 January 2021
Slide 8: Financial highlights
Financial highlights • Revenue Revenue £m Adjusted EPS pence Strong revenue growth of 10.9% (8.6% at constant currency), organic revenue growth £131.7m 10.1p of 9.8% (7.5% at cc) and inorganic revenue 2021 131.7 2021 10.1 growth of 1.1% (1.1% at cc) as a result of the acquisition of ClimaRad BV in t
Slide 9: Financial summary
Financial summary H1 2021 H1 2020 Movement Revenue (£m) 131.7 118.8 10.9% Revenue (cc) (£m) 129.0 118.8 8.6% Gross margin (%) 48.4 47.8 0.6pp Adjusted operating profit (£m)1 27.7 21.8 27.4% Adjusted operating margin (%)1 21.1 18.3 2.8pp Adjusted profit before tax (£m)1 26.1 20.5 27.1% Adjusted EPS (
Slide 10: Reconciliation of adjusted to reported profit
Reconciliation of adjusted to reported profit H1 2021 H1 2020 Movement • Acquisition-related costs: £m £m £m Adjusted profit before tax 26.1 20.5 5.6 • £0.4 million (H1 2020: £nil) of professional fees for the acquisition of 75% of ClimaRad Items excluded from adjusted measures: BV in December 2020.
Slide 11: >20% operating margin
>20% operating margin Target 20% Group H1 FY19 17.6% • GROUP margins +2.8pp to 21.1%. H2 FY19 18.1% H1 FY20 18.3% H2 FY20 12.2% H1 FY21 21.1% United Kingdom H1 FY19 17.4% • UK margins +2.6pp to 21.5% supported H2 FY19 18.2% by streamlining programme in H2 FY20. H1 FY20 18.9% H2 FY20 7.3% H1 FY21 21.
Slide 12: Net debt and cash flow
Net debt and cash flow Net debt bridge 100 (37.1) (92.0) 90.0 80.0 (74.2) 70.0 60.0 (4.8) (4.1) 0.6 £m 50.0 (0.9) Acquisition (2.5) Lease liabilities (0.6) FX and other Interest Tax paid 40.0 31.6 Working Capital paid expenditure capital (organic) EBITDA 30.0 20.0 10.0 0 1 Aug 20 31 Jan 21 Cash conv
Slide 13: Business Review and Strategy
Ronnie George – CEO Business Review and Strategy Interim results to 31 January 2021
Slide 14: Operating segments
Operating segments 34.9% United Kingdom Continental Europe Australasia % of Volution Group revenue (by segment) United Kingdom (50.5%) Continental Europe (34.3%) Australasia (15.2%) £66.5m (up 3% cc) £45.1m (up 12% cc) £20.1m (up 24% cc) Volution Group plc Interim results to 31 January 2021 13
Slide 15: Geographic market diversification
Geographic market diversification 34.3++15.250.5Q 20+15+16101145Q 34.3 OEM OEM Export 4.3% Nordics 4.9% 19.5% UK Export 4.0% Continental UK Europe Commercial 34.3% 11.1% UK 50.5% Central UK Europe New Build 14.8% Australasia 9.6% 15.2% UK RMI Australasia 16.6% 15.2% Volution Group plc Interim result
Slide 16: UK
UK 34.3++15.250.5O 34.3 Total H1 2021 H1 2020 growth (cc) % of Volution Group revenue £m £m % UK revenue 66.5 64.5 2.7% Residential RMI 21.8 20.0 9.3% Residential New Build Commercial 12.6 14.7 13.1 15.3 (3.5)% (4.1)% 50.5% Export 5.3 4.8 7.1% OEM 12.1 11.3 5.7% Adjusted operating profit 14.3 12.2 1
Slide 17: Continental Europe
Continental Europe 34.3++15.250.5O 34.3 Total % of Volution Group revenue H1 2021 H1 2020 growth (cc) £m £m % Continental Europe revenue 45.1 38.4 12.3% Nordics 25.7 21.4 13.8% Central Europe 19.4 17.0 10.3% 34.3% Adjusted operating profit 11.6 8.4 30.0% Adjusted operating profit margin % 25.7% 22.0
Slide 18: Australasia
Australasia 34.3++15.250.5O 34.3 Total % of Volution Group revenue growth H1 2021 H1 2020 (cc) £m £m % Australasia revenue 20.1 15.9 23.9% Adjusted operating profit Adjusted operating profit margin % 4.4 22.0% 2.3 14.9% 82.3% 7.0pp 15.2% • Operating profit almost double the prior year. • Operating m
Slide 19: Value-adding acquisitions: ClimaRad
Value-adding acquisitions: ClimaRad Acquisition terms Acquired 75% of the business for a cash consideration of £37.1 million, an approximate multiple of 10.4x the 31 December 2020 EBITDA. Remaining 25% to be acquired on or before 28 February 2025 for a multiple of 13x EBITDA of 31 December 2024. Cli
Slide 20: Regulatory drivers and indoor air quality
Regulatory drivers and indoor air quality We have seen increasing commitment to achieving net zero carbon by 2050. With many of our geographies now committed in law or in proposed legislation we will continue to see the regulatory underpinning positively influence our markets. Reducing carbon emissi
Slide 21: Summary and Outlook
Summary and Outlook Interim results to 31 January 2021
Slide 22: Summary and outlook
Summary and outlook Summary Outlook • Strong revenue growth of 10.9% (8.6% at cc). • In the first half of FY21 the Group has been working with industry wide supply chain inefficiency and although this is likely to continue, • Significant adjusted operating profit margin expansion of 2.8pp to we beli
Slide 23: Thank You Q&A
Thank You Q&A Interim results to 31 January 2021
Slide 24: Appendix
Appendix Interim results to 31 January 2021
Slide 25: Consolidated statement of financial position summary
Consolidated statement of financial position summary ClimaRad ClimaRad 31 January 31 July 31 January 31 January 31 July 31 January 2021 2020 Movement 2021 2021 2020 Movement 2021 £m £m £m £m £m £m £m £m Non-current assets Current liabilities Property, plant and Trade and other equipment 24.3 21.5 2.
Slide 26: Cash flow/net debt
Cash flow/net debt 31 January 31 January 2021 2020 Movement Movement £m £m £m % Adjusted EBITA (A) 28.4 22.4 6.0 26.8 Depreciation 3.2 3.2 — Adjusted EBITDA 31.6 25.6 6.0 23.4 Change in net working capital (0.6) (0.9) 0.3 Share-based payments 1.1 — 1.1 Net investment in fixed assets (2.5) (2.4) (0.1
Slide 27: Cautionary statement
Cautionary statement 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