Tt Electronics Plc · LSE:TTG
Tt Electronics — H1 2006 Earnings Presentation
29 slides from Tt Electronics's earnings presentation, 2006
Slide 1: 2006 Half-Year Results
2006 HALF-YEAR RESULTS To see comments made by Neil Rodgers, Chief Executive at the 2006 Half Year Results Presentation, place your cursor over the icons. View comments with Adobe Acrobat version 6 or later.
Slide 2: Highlights
HIGHLIGHTS • Strong order intake and increased revenue and operating profit before exceptional items • Electronic and electrical sectors profitability improved • Operating profit before exceptional items up by 10% • EPS before exceptional items up 23% to 7.0p (2005 : 5.7p) • Interim dividend maintai
Slide 3: Financial Summary
FINANCIAL SUMMARY £Ms 2006 2005 2005 2005 1st Half st 1 Half nd 2 Half Full Year Revenue 301.8 286.4 278.9 565.3 Operating profit 17.8 16.2 13.7 29.9 Exceptional items - 5.0 (2.9) 2.1 17.8 21.2 10.8 32.0 Interest to third parties (1.6) (1.6) (1.5) (3.1) Finance cost on pension (0.9) (1.2) (0.9) (2.1
Slide 4: Geographical Analysis of Revenue
GEOGRAPHICAL ANALYSIS OF REVENUE Origin Destination 27% (2005:23%) 35% (2005:36%) 24% (2005:19%) 10% (2005:8%) 14% (2005:16%) 25% (2005:26%) 38% (2005:43%) 27% (2005:29%) United Kingdom Rest of Europe North America Rest of the World
Slide 5: Geographical Analysis of Ongoing Revenue
GEOGRAPHICAL ANALYSIS OF ONGOING REVENUE Origin Destination 2006 2005 2006 2005 1st Half 1st Half 1st Half 1st Half £m % £m % £m % £m % United Kingdom 115.9 38 122.9 43 81.7 27 82.0 29 Rest of Europe 74.9 25 75.3 26 106.1 35 103.7 36 North America 81.9 27 66.4 23 70.7 24 55.8 19 Rest of the World 29
Slide 6: Revenue and Operating Profit by Origin
REVENUE AND OPERATING PROFIT BY ORIGIN Revenue Operating Profit 27% (2005:23%) 38% (2005:36%) 10% (2005:8%) 17% (2005:12%) 25% (2005:26%) 38% (2005:43%) 31% (2005:32%) 14% (2005:20%) United Kingdom Rest of Europe North America Rest of the World
Slide 7: Geographical Analysis of Ongoing Revenue and Operating Profit by Origin
GEOGRAPHICAL ANALYSIS OF ONGOING REVENUE AND OPERATING PROFIT BY ORIGIN Revenue Operating Profit 2006 2005 2006 2005 1st Half 1st Half 1st Half 1st Half £m % £m % £m % £m % United Kingdom 115.9 38 122.9 43 2.4 14 3.3 20 Rest of Europe 74.9 25 75.3 26 5.6 31 5.1 32 North America 81.9 27 66.4 23 6.8 3
Slide 8: Sector Performance
UT: SECTOR PERFORMANCE
Slide 9: Analysis of Revenue by Product
ANALYSIS OF REVENUE BY PRODUCT 2006 2005 2005 2005 1st Half st 1 Half nd 2 Half Full Year £m % £m % £m % £m % Electronic: Sensors and electronic systems 99.0 33 97.4 34 97.6 35 195.0 34 Electronic components 71.2 23 65.9 23 63.7 23 129.6 23 EMS 33.0 11 27.4 10 32.9 12 60.3 11 203.2 67 190.7 67 194.2
Slide 10: Operating Profit by Product
OPERATING PROFIT BY PRODUCT 2006 2005 2005 2005 £Ms 1st Half 1st Half 2nd Half Full Year Electronic: Sensors and electronic systems 5.7 5.3 3.8 9.1 Electronic components 4.6 5.1 3.6 8.7 EMS 2.0 1.5 0.5 2.0 12.3 11.9 7.9 19.8 Electrical: Power systems 2.0 1.8 2.8 4.6 Power transmission 3.5 2.5 3.0 5.
Slide 11: Analysis of Revenue by Market
ANALYSIS OF REVENUE BY MARKET 2006 2005 2005 2005 1st Half st 1 Half nd 2 Half Full Year £m % £m % £m % £m % Electronic: Automotive 117.2 39 112.2 39 114.6 41 226.8 40 Telecom and Computer 37.0 12 32.4 12 34.2 12 66.6 12 Industrial 49.0 16 46.1 16 45.4 17 91.5 16 203.2 67 190.7 67 194.2 70 384.9 68
Slide 12: Sensors and Electronic Systems
SENSORS AND ELECTRONIC SYSTEMS Highlights z German volumes maintained z Further new business won utilising Autopad® technology z New orders for electronic systems from US OEM for China manufacture z Contract awarded for semi intelligent accelerator pedals by Japanese OEM
Slide 13: Electronic Components
ELECTRONIC COMPONENTS Highlights z Strong order intake z High demand for tanfilm specialist precision products z Eurofighter orders released with further intake expected z Higher profitability in microcircuit business
Slide 14: Electronic Manufacturing Services
ELECTRONIC MANUFACTURING SERVICES Highlights z TTeis China continues strong performance z Malaysian EMS facility ramping up production z Rationalisation of UK EMS underway z Further business wins in defence and aerospace
Slide 15: Power Systems and Transmission
POWER SYSTEMS AND TRANSMISSION Highlights z Profitability improvement z Export genset business highly successful z Accessories and connection systems order intake strong z T45 Destroyer cable contracts commence manufacture
Slide 16: Our Ongoing Strategy: Automotive
OUR ONGOING STRATEGY AUTOMOTIVE • Build upon the success of Autopad® (specifically chassis, powertrain and cockpit applications) • Continued rationalisation of electronic systems manufacturing (1 plant per region: Europe, North and South America, Asia) • Expand low cost manufacturing capability (Eas
Slide 17: Our Ongoing Strategy: Components
OUR ONGOING STRATEGY COMPONENTS • Establish third party resale product range sourced in China (testing complete, first orders placed) • Increase sales in Far Eastern region (ongoing) • Continue to develop visible LED lighting business (progress maintained) • Increase pace of new product launches to
Slide 18: Our Ongoing Strategy: Electronic Manufacturing Services
OUR ONGOING STRATEGY ELECTRONIC MANUFACTURING SERVICES • Consolidate UK operations (loss making Northern England facility closure recently announced) • Continue transfer of work to low cost Chinese and Malaysian facilities (telephone system build transferred to Malaysia) • Expand customer base in Ch
Slide 19: Our Ongoing Strategy: Power Systems/Transmission
OUR ONGOING STRATEGY POWER SYSTEMS/TRANSMISSION • Develop low cost third party sources of supply (ongoing) • Move accessories and cable manufacturing progressively to low cost economies (accessories business will commence manufacture in China October 2006) • Expand genset/UPS service offering follow
Slide 20: Slide 20
Slide 21: Cash Flow
‘electronics ple CASH FLOW
Slide 22: Cash Flow from Operations
CASH FLOW FROM OPERATIONS £Ms 2006 2005 2005 2005 1st Half 1st Half 2nd Half Full Year Profit for the period 10.8 11.5 1.5 13.0 Finance costs 2.5 3.2 2.9 6.1 Taxation 4.5 4.9 0.3 5.2 17.8 19.6 4.7 24.3 Depreciation and amortisation 16.0 17.2 20.0 37.2 Gain on sale of fixed assets (2.0) (7.7) (4.3) (
Slide 23: Cash Flow from Operations
CASH FLOW FROM OPERATIONS £Ms 2006 2005 2005 2005 1st Half 1st Half 2nd Half Full Year Operating cash flow before 30.8 26.9 9.3 36.2 movements in working capital Decrease in property - 0.1 - 0.1 Decrease / (Increase) in inventories - 1.5 3.6 5.1 (Increase) / Decrease in (13.0) (6.4) 19.2 12.8 receiv
Slide 24: Group Cash Flow
GROUP CASH FLOW £Ms 2006 2005 2005 2005 1st Half 1st Half 2nd Half Full Year Cash inflow from operations 14.6 20.9 28.7 49.6 Capital expenditure (9.2) (6.8) (8.8) (15.6) Development expenditure (4.9) (5.2) (3.5) (8.7) Proceeds of sale of property, plant and equipment and grants received 4.4 17.4 3.9
Slide 25: Group Balance Sheet
GROUP BALANCE SHEET £Ms 2006 2005 2005 June December June Non-current assets 176.1 186.2 192.8 Deferred tax asset 22.6 30.0 23.0 198.7 216.2 215.8 Inventories 93.9 93.9 100.2 Receivables and financial instruments 108.3 95.1 115.7 Cash and cash equivalents 22.2 24.0 18.0 224.4 213.0 233.9 Current pay
Slide 26: Slide 26
Slide 27: The Future
‘electronics ple THE FUTURE
Slide 28: Outlook
OUTLOOK • Continue to develop low cost manufacturing in China and Malaysia • Grow visible light emitting diodes component, inductive sensor and new component businesses • Build upon success of new product introductions • Continue to explore substantial acquisition opportunities • Well positioned for
Slide 29: A World Leader in Sensor and Electronic Component Technology
A World Leader in Sensor and Electronic Component Technology