Filtronic Plc · LSE:FTC
Filtronic — H1 2022 Earnings Presentation
24 slides from Filtronic's earnings presentation, February 2022
Slide 1: Interim Results for Financial Year to 30 November 2021
Interim Results for Financial Year to 30 November 2021 Richard Gibbs, CEO Michael Tyerman, CFO
Slide 2: Agenda
1. Executive Overview 2. Financial Review 3. Operational Review 4. Strategy & Growth Update 5. Summary 2
Slide 3: Enabling the future of RF Microwave and mmWave communications
Enabling the future of RF Microwave and mmWave communications Creating value for our stakeholders through technology leadership 3
Slide 4: Executive Overview
Qfiltronic Innovation in RF technology Executive Overview filtronic.com
Slide 5: Overview
Overview Filtronic plc is a designer and manufacturer of advanced RF communications products serving five core markets: Telecommunications Aerospace & Critical Transport & Space / Infrastructure (X‐Haul) Defence Communications Private Networks *HAPS/LEO • HAPS: High Altitude Pseudo Satellites • LEO:
Slide 6: Half Year Highlights
Half Year Highlights Revenue • Strong performance from core business operations relative to H1 2021 £8.0m (+12%) • Healthy cash position will drive investment in product development to deliver growth in target markets Adjusted EBITDA* £1.1m (+83%) • Served core markets showing signs of recovery with
Slide 7: Financial Summary
Financial Summary filtronic.com © filtroni Innovation in RF technol logy
Slide 8: Revenue: 12% Growth H1 2022 vs H1 2021
Revenue: 12% Growth H1 2022 vs H1 2021 Revenue in line with internal forecasts Key strategic objective: Group revenue £8.0m (2021: £7.1m) Develop customer base outside of top three customers • Recovery of critical communication products with investment back into infrastructure projects. • Aerospace
Slide 9: Third Consecutive year of Adjusted EBITDA growth
Third Consecutive year of Adjusted EBITDA growth Adjusted EBITDA in line with internal forecasts • Stronger sales mix from higher margins within aerospace & defence and critical communications markets. COGS 4% lower on 12% revenue increase. • Further yield and process efficiency improvements deliver
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights Capital expenditure needs still low Good cash generation Strongest net cash position expected for 4 years • £0.1m capex in H1 as well kitted for current • £0.6m cash generation from operating requirements. activities in H1. • £2.2m net cash when excluding IFRS16 • Capex spen
Slide 11: Operational Summary
Operational Summary filtronic.com iltronic Ofiltr F technology
Slide 12: Business Development Highlights
Business Development Highlights • £800k initial production order from new test equipment customer following delivery of prototypes • £1.3m Battlefield radio communications equipment order transitioned from design into low run rate production • “Best‐in‐class” Tower Top Amplifier achieving anticipate
Slide 13: Building Momentum
Building Momentum • UK Government investment in sovereign Telecommunications Infrastructure (including the OneWeb) continues to build momentum and opportunity • UK defence primes making decisions regarding technology and UK manufacturing capability for next generation radar platforms • Global 5G inf
Slide 14: Strategy & Growth
Qfiltronic Innovation in RF technology Strategy & Growth filtronic.com
Slide 15: Strategy & Growth – markets / applications update
Strategy & Growth – markets / applications update Vertical Market & Application Progress in 1st year Target mid term Interim Update Target long term Aerospace • TRM + filter development • Tx Rx Module + filter • 8 separate filter programmes • Qualification of prototypes for contracts for AESA radar.
Slide 16: Strategy & Growth – operations / capability update
Strategy & Growth – operations / capability update Business Function Progress in 1st year Target near term Interim Update Target long term Sales & • Build the roster of sales reps • Expand UK defence sales and • Full roster of sales reps • Bring Channel Management in North America business developme
Slide 17: Key Investments in FY2022
Key Investments in FY2022 Business Key Investments Interims Update Activity Sales and • Development of direct sales channels with senior hire • Executive search firm engaged to strengthen direct sales channels marketing • Expansion of rep network in the USA and Europe • Most of North America covered
Slide 18: Summary
Summary filtronic.com © filtronic Innovation in RF technology
Slide 19: Summary
Summary • Filtronic is evolving • Focused on four strategic pathways (X‐haul / defence communication / aerospace and space) – positions us in markets where we can differentiate, add real value and command sustainable margins: • Strengthening the sales and engineering functions to open the aperture o
Slide 20: Filtronic contact details
Q filtronic Innovation in RF technology UK Office NETPark Plexus 1, Thomas Wright Way, Sedgefield, County Durham, TS21 3FD T: +44 1740 618 800 E: [email protected] USA Office 700 Marvel Road, Salisbury, Maryland, 21801 USA T: +1 410 202 8811 E: [email protected] filtronic.com
Slide 21: Appendices
Appendices © filtroni Innovation in RF technol logy filtronic.com
Slide 22: Income statement
Income statement H1 2022 H1 2021 Variance H2 2021 Variance £000 £000 £000 £000 £000 Revenue from goods and services 7,428 6,710 718 7,665 (237) Revenue from non‐recurring engineering (NRE) 576 438 138 743 (167) Revenue 8,004 7,148 856 8,408 (404) Material costs of goods sold 2,584 2,713 129 2,749 16
Slide 23: Balance sheet
Balance sheet Nov‐21 May‐21 £m £m Goodwill and intangible assets 1.6 1.7 Right of use assets 2.1 2.3 Property, plant and equipment 1.0 1.0 Deferred tax 1.3 1.2 Non‐current assets 6.0 6.2 Inventory 2.4 2.2 Trade and other receivables 4.1 3.3 Cash and cash equivalents 3.0 2.9 Current Assets 9.5 8.4 Tr
Slide 24: Cash flow statement
Cash flow statement Nov‐21 Nov‐20 £m £m Net cash generated from operating activities 0.6 0.5 Net cash used in investing activities (0.1) (0.1) Net cash used in financing activities (0.4) (0.7) Movement in cash and cash equivalents 0.1 (0.3) Currency exchange movement 0.0 (0.1) Opening cash and cash