Carclo Plc · LSE:CAR
Carclo — Investor Presentation (January 2017)
32 slides from Carclo's investor presentation, Jan 31, 2017
Slide 1: Presentation to Institutions
Presentation to Institutions 31 January 2017
Slide 2: Agenda
2 Agenda • Carclo Overview • Technical Plastics (CTP) • LED • Aerospace • Group Balance Sheet
Slide 3: Carclo Overview
3 Carclo Overview Carclo is a leading global manufacturer of fine tolerance parts for the Medical, Industrial, Aerospace and Luxury and Supercar Lighting markets Global contract manufacturer to medical market Leading designer and manufacturer of luxury and supercar LED Lighting Leading supplier of a
Slide 4: Technical Plastics
Technical Plastics Contents • Scale and strategy • Capabilities • Success factors • Medical focus • PTD acquisition • Future direction
Slide 5: Technical Plastics - Strategy
Technical Plastics - Strategy • Continue to develop medical focused global business • Leverage existing customer base for growth • Improve customer perceptions via: - increase in scale and capabilities - addition of value add services - improvement in site aesthetics • Focus on automation developmen
Slide 6: Technical Plastics - Scale
Technical Plastics - Scale Location USA UK India Czech China Republic Production 4 1 2 1 1 sites Sales £35.1m £17.5m £6.3m £8.6m £3m (31 March 2016 ye) Employees 356 191 268 204 83 Medical % 96% 97% 0% 11% 62% No. of 106 65 25 (+ other 71 20 moulding Manufactu machines ring equip)
Slide 7: Technical Plastics – Success factors
Technical Plastics – Success factors • Market size - Global injection moulding market - $200 billion (CAGR - 5.1%) - Medical represents $25 billion (CAGR - 10%) • Leading global competitors typical profile - Over $0.5 billion in revenues - Global / Multi-site - Integrated offerings including design
Slide 8: Technical Plastics – Medical focus
Technical Plastics – Medical focus Medical moulding emphasis • Good growth and extremely stable demand (high future visibility-usually single sourced supplier) • High investment from CTP and customers for product validation • Expensive and complex for customers to move work • Continuous new product
Slide 9: Technical Plastics – PTD Acquisition
Technical Plastics – PTD Acquisition • Acquisition of Precision Tool & Die (“PTD”) was completed in October 2016 • Initial consideration of $5.5 million (approximately £4.5 million) in cash plus further deferred consideration of up to $1.0 million (approximately £0.8 million) in cash • Located near
Slide 10: Technical Plastics - Future direction
Technical Plastics - Future direction • Integration of PTD and look to implement the prot0typing model outside USA within in medium term • Develop Global customers within Chinese market from existing seeds • Develop further medical capabilities in Czech Republic • Utilise facility capacity in China,
Slide 11: LED
LED Contents • Division Structure • Carclo Optics – summary of business • Wipac - Capabilities - Products - Example projects - Success Factors - Market Sectors - Typical Contracts - 3 year Strategy
Slide 12: LED Technologies - structure
LED Technologies - structure
Slide 13: Carclo Optics – Summary of business
Carclo Optics – Summary of business • Design and manufacture of LED secondary optics, light guides, clusters • Primarily used in Industrial/Commercial lighting products • Largest customers are Philips, Thorn, Trilux, Nordeon • Carclo have their own ‘catalogue’ range of optics but have increasingly m
Slide 14: Wipac - today
Wipac - today Facility Market/Products Customers The only 1st Tier supplier dedicated to the design & manufacture of prestige vehicle LED lighting • Based in Buckingham, 50km north of London • 10,000 sq.m site, 300+ employees • Vertically integrated Headlamps 30% • Design • Manufacturing Rearlamps •
Slide 15: Wipac - Our products
Wipac - Our products carclo
Slide 16: Wipac - Design capabilities
Wipac - Design capabilities Mechanical & FEA Optical & photometric Electronics • Ray tracing - Breault ASAP • Schematic/layout - Pulsonix • 2D/3D CAD - CATIA V5 • Road simulation - Lucidshape • SPICE simulation • Thermal/CFD - Ansys • 30m Photometric laboratory • Electronics lab/EMC • Drive-in light
Slide 17: Wipac - Manufacturing capabilities
Wipac - Manufacturing capabilities Injection moulding Finishing Assembly • 6 axis robot gluing • 20 presses • Vacuum metallising • Hot plate welding • 80T-800T (Kolzer & Balzer) • IR non-contact welding • 2K/3K capability • UV Hardcoating • Vibration welding • 6 axis robots • Anti-fog coating • Ultr
Slide 18: Wipac - Quality capabilities
Wipac - Quality capabilities Certification Metrology Testing • Climate controlled • Full climate controlled • ISO/TS 16949 environmental test facility • ISO 14001 laboratory • 6 x CMM’s • VW ‘A’ rated • Full 25m Photometric • 3D laser scanner laboratory with LMT Goniometer & reflex cell • Drive-in f
Slide 19: Wipac - Example project - Bentley Mulsanne 17MY
Wipac - Example project - Bentley Mulsanne 17MY All exterior lighting • Headlamps, full LED with AFS • Rear lamps • Signal lamps
Slide 20: Wipac - Example project - Bentley Bentayga
Wipac - Example project - Bentley Bentayga All rear lighting • LED rear lamps with homogenous ‘B’ signature
Slide 21: Example project - McLaren 570s
Example project - McLaren 570s All exterior lighting • Headlamps, full LED with Hyperlite system • Rear lamps • Signal lamps
Slide 22: Example project - Aston Martin DB11
Example project - Aston Martin DB11 All exterior lighting • Headlamps, full LED with hyperlite system and low speed cornering • Rear lamps • Signal lamps
Slide 23: Wipac - Success Factors
Wipac - Success Factors • Wipac are the only remaining OEM lighting designer/manufacturer in the UK • Focus is exclusively premium vehicles/high technology products • Facilities are well invested and aligned with customer/product focus • Design team now c50 people, reputation within industry for del
Slide 24: Wipac - Market Sectors
Wipac - Market Sectors Low Volume Medium Volume (Supercar/luxury car) (Premium/Sports car) • Market targeted since 2015 • Main market segment for Wipac to date • Volumes 10k to 50k PA • Volumes <10k PA, can be as low as 100 PA • VW Phaeton 2010 was first medium volume contract • Dominant position wi
Slide 25: Typical Contract – Low Volume
Typical Contract – Low Volume Contract Value Payment Profile £12,000,000 £1,800,000 £1,600,000 £10,000,000 £1,400,000 £8,000,000 £1,200,000 £6,000,000 £1,000,000 £800,000 £4,000,000 £600,000 £2,000,000 £400,000 £200,000 £0 Low Volume £0 Production (5 Years) £7,500,000 Year 1 Year 2 Year 3 Year 4 Yea
Slide 26: Typical Contract – Medium Volume
Typical Contract – Medium Volume Contract Value Payment Profile £35,000,000 £6,000,000 £30,000,000 £5,000,000 £25,000,000 £4,000,000 £20,000,000 £3,000,000 £15,000,000 £10,000,000 £2,000,000 £5,000,000 £1,000,000 £0 Low Volume £0 Production (5 Years) £25,000,000 Year 1Year 2Year 3Year 4Year 5Year 6Y
Slide 27: Wipac - Strategy – 3 years
Wipac - Strategy – 3 years Low Volume Medium Volume (Supercar/luxury car) (Premium/Sports car) • Continue as the market leader in the • Target one medium volume project win sector per year • Work together with key customers to • Products predominantly rear lamps, align technology to future vehicle i
Slide 28: Wipac - Factory Extension
Wipac - Factory Extension • Wipac own the land to the side of the building • Maximum extension can increase space by 1/3 of current (likely to be constructed in 2 phases) • Timescales : – Planning submission – Feb 2017 – Start build – Jan 2018 – Completion – Jan 2019
Slide 29: Aerospace - Strategy
Aerospace - Strategy • Maintain business profitability and cash flows with minimum capital investment • Continue to secure replacement machine component work (new- build and spare parts) to offset decline in cable demand • Continue to use cash generation to offset group pension payments
Slide 30: Group balance sheet - debt
Group balance sheet - debt • Group debt forecast to be around £25 million at 31 March 2017 post placing last year which raised cash of £3 million over and above the PTD acquisition cost • This equates to a net debt to EBITDA ratio of 1.45x • Our medium term net debt to EBITDA target was 1.5x • Debt
Slide 31: Group balance sheet - pensions
Group balance sheet - pensions • Net IAS19 pension deficit at 30 September 2016 was £42.6 million • The significant increase since 31 March 2016 related to the post EU referendum collapse in corporate bond yields • This material increase in the deficit extinguished the PLC’s distributable reserves t
Slide 32: End
End Forward looking statements - Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future events o