Volex Plc · LSE:VLX
Volex — H1 FY2009 Earnings Presentation
13 slides from Volex's earnings presentation, Nov 17, 2008
Slide 1: Interim Results Presentation 17 November 2008
17 November 2008 February 10 1
Slide 2: Content
Content First Half Highlights Financial Overview Income Statement Cash Flow Balance Sheet Banking Facilities Divisional Results Power Products Interconnect Wiring Harness Summary February 10 2
Slide 3: First Half Highlights
First Half Highlights Substantial recovery with operating profits of £2.4m(1) compared to loss of £0.3m in previous six months to 30 March 2008 Strong revenue growth across all three businesses Initial benefit of the aggressive efforts to improve profitability coming through Working capital reduced
Slide 4: Financial Overview
Financial Overview Revenue up 22.8% to £155.1m (2007: £126.3m); in local currency terms revenue increased 16.1% Operating profit of £2.4m (2007: £4.6m)(1) Adjusted(1) pre tax profit of £1.0m and reported pre tax profit of £1.1m (2007: adjusted £3.3m; reported £2.8m) Adjusted earnings per share for t
Slide 5: Income Statement
Income Statement £'m H1 FY09 H1 FY08 FY2008 Revenue 155.1 126.3 259.8 Operating Profit* 2.4 4.6 4.3 Net interest (1.1) (1.0) (2.1) Debt issue costs (0.3) (0.3) (0.5) Adjusted Profit before Tax 1.0 3.3 1.7 Major Restructuring Programme Charge - - (2.7) Share based payment credit / (charge) 0.1 (0.5)
Slide 6: Cash Flow
Cash Flow H1 FY09 H1 FY08 FY2008 £'m £'m £'m Operating cash before restructuring programme 3.1 5.4 7.1 Working capital movement 5.1 (9.6) (9.3) Operating Cash Flow 8.2 (4.2) (2.2) Major Restructuring Programme (1.2) (2.1) (3.9) Capex (1.2) (0.8) (1.9) Net Interest paid (0.4) (0.5) (1.5) Tax paid (0.
Slide 7: Balance Sheet
Balance Sheet H1 FY09 H1 FY08 FY2008 £'m £'m £'m Intangible assets 2.6 2.3 2.5 Tangible assets 8.4 8.4 7.8 Net current assets 45.0 46.2 43.1 Non current liabilities (31.2) (29.3) (30.8) Net Assets 24.8 27.6 22.6 Gearing (%) 74.9% 63.4% 92.8% February 10 7
Slide 8: Banking Facilities
Banking Facilities Principal revolving credit facility with LloydsTSB for $64.3m Improved financial flexibility through addition of €6.8m facility with Bank of Scotland plc Both facilities run until 31 December 2009 All covenants complied with during the year £'m Opening Net Debt (31/03/08) (21.0) C
Slide 9: Operating Profit & Revenue by Division
Operating Profit & Revenue by Division Operating Profit* 6.0 5.1 5.0 4.7 4.0 3.7 3.1 3.0 2.5 H1 FY09 £m 2.0 0.8 H2 FY08 1.0 0.7 H1 FY08 0.0 (1.0) (0.4) (1.1) (2.0) (1.5) (2.0) (2.0) (3.0) Power Products Interconnect Wiring Harness Total H1 FY09 Revenue by Division £53.6 m + 23.8% £21.2 m + 24.2% £80
Slide 10: Power Products
Power Products Continues to deliver exceptional performance with growth of 21.8% (15.7% at constant exchange rates) Japanese accounts continuing to drive growth with increasing market share PC and related segments also showed strong growth but expect demand to decline in the second half Operating ma
Slide 11: Interconnect
Interconnect Significant improvement with a growth of 23.8% (13.4% at constant exchange rates) India grew 250% driven by wireless rollout; Volex supports 5 out of 8 operators High speed in full ramp with strong new business pipeline Design wins at Huawei, ZTE and Datang; the main suppliers of China’
Slide 12: Wiring Harness
Wiring Harness Strategy to focus on selected accounts to drive profitable growth Revenue growth of 24.2% from Rolls Royce and Case New Holland Operating loss stabilized Improved operational performance and customer service The impact of the improvement not yet reflected on the margin Further cost ad
Slide 13: Summary
Summary Substantial recovery in the first half despite signs of slowdown; strong performance across the Group In light of current economic uncertainties, we are cautious in our outlook Expect overall demand will weaken, particularly in relation to consumer products Aggressive cost cutting measures t