Luceco Plc · LSE:LUCE
Luceco — FY2016 Earnings Presentation
25 slides from Luceco's earnings presentation, Apr 3, 2017
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION WELL POSITIONED FOR CONTINUED GROWTH 3 April 2017
Slide 2: Agenda
Luceco plc | Full year results presentation 2016 AGENDA ¥ Introduction and overview John Hornby ¥ Financial review David Main ¥ Strategic progress and outlook John Hornby ¥ Questions 1
Slide 3: 2016 Overview
Luceco plc | Full year results presentation 2016 2016 OVERVIEW Extremely Continued strong 140 new Additional Expansion double digit products Continued LED performance manufacturing in Spain and revenue brought to growth across all capacity Hong Kong growth market segments ¥ Strong delivery across al
Slide 4: Financial Highlights
Luceco plc | Full year results presentation 2016 FINANCIAL HIGHLIGHTS Revenue Gross profit Adjusted profit after tax1 (£m) (£m) (£m) 133.8 47.8 12.3 103.1 33.8 5.8 2015 2016 2015 2016 2015 2016 Gross margin EPS1 ROCE1 Adjusted Revenue profit after growth 2015: 32.8% 2015: 4.2p 2015: 21.2% tax growth
Slide 5: Well Positioned for Continued Growth
Luceco plc | Full year results presentation 2016 WELL POSITIONED FOR CONTINUED GROWTH 1 New Product 2 Manufacturing Innovation agility and efficiency 5 Ethical 3 High quality treatment of products at employees competitive prices 4 Flexible distribution 4
Slide 6: Financial Overview
Luceco plc | Full year results presentation 2016 FINANCIAL OVERVIEW 5
Slide 7: Highlights
Luceco plc | Full year results presentation 2016 HIGHLIGHTS 2016 2015 Growth Revenue £133.8m £103.1m 29.8% Gross profit £47.8m £33.8m 41.4% Gross margin 35.7% 32.8% 2.9ppt Adjusted operating profit1 £17.6m £11.5m 53.0% Adjusted operating margin1 13.2% 11.2% 2.0ppt Adjusted profit after tax1 £12.3m £
Slide 8: Profit After Tax Bridge
Luceco plc | Full year results presentation 2016 PROFIT AFTER TAX BRIDGE 1,882 (3,239) 2,674 (4,559) 10,069 (570) 218 12,292 (2,635) 9,657 5,817 Profit after Growth Product mix Cost Overhead Investment Stock Interest and Adjusted Exceptional Profit after tax 2015 engineering/ including to support pr
Slide 9: Segmental Performance
Luceco plc | Full year results presentation 2016 SEGMENTAL PERFORMANCE ¥ 20 new products LED Lighting Wiring Accessories ¥ Further penetration of successfully launched for the Group’s product sale in all territories Revenue £33.0m Revenue £62.2m range into the existing customer base ¥ Further penetr
Slide 10: Summary Consolidated Income Statement
Luceco plc | Full year results presentation 2016 SUMMARY CONSOLIDATED INCOME STATEMENT 2016 2015 £000 £000 ¥ Revenue growth of £30.7m (29.8%), Revenue 133,753 103,055 £22.8m (22.1%) on a constant currency basis Gross profit 47,826 33,834 Operating profit before exceptional IPO costs 17,645 11,451 ¥
Slide 11: Summary Consolidated Balance Sheet
Luceco plc | Full year results presentation 2016 SUMMARY CONSOLIDATED BALANCE SHEET 2016 2015 ¥ Non-current assets increased due £000 £000 Non-current assets 33,698 27,452 to investment in further manufacturing capacity Current assets 71,946 52,807 ¥ Increase in current assets due Total assets 105,6
Slide 12: Cash Flow
Luceco plc | Full year results presentation 2016 CASH FLOW 2016 2015 £‘m £‘m Adjusted EBITDA 20.8 14.0 ¥ Funds tied up in working capital increased by £14.6m to £37.7m. £5.8m increase due to Adjusted Operating Cash flow 6.6 8.3 currency. Working capital major focus for 2017 Cash conversion 31.7% 59.
Slide 13: Strategic Progress
Luceco plc | Full year results presentation 2016 STRATEGIC PROGRESS 12
Slide 14: Overview
Luceco plc | Full year results presentation 2016 OVERVIEW ¥ Fully integrated model – Wholly-owned Chinese manufacturing with local know-how and expertise Number of – High quality, low-cost manufacturing; supply chain aligned to client needs employees c2000 ¥ Established routes to market – Highly reg
Slide 15: Well Positioned for Future Growth
Luceco plc | Full year results presentation 2016 WELL POSITIONED FOR FUTURE GROWTH n 2 M atio anu ov fac t Inn tur ing duc o ag Pr ili t w Ne ya • On-going pipeline of • Wholly-owned facility nd new products suitable to • Investment in automation 1 eff multiple channels and process efficiency icie •
Slide 16: Product Innovation
Luceco plc | Full year results presentation 2016 PRODUCT INNOVATION ¥ Recessed Architectural Panel ¥ Emergency Exit lights, for safe ¥ Continuous Linear Light for typical office and school and legal lighting during power system for corridors, schools ceilings. outages. and offices ¥ Eco Warehouse li
Slide 17: Growth Drivers – LED
Luceco plc | Full year results presentation 2016 GROWTH DRIVERS – LED Compelling benefits of LED provides once in a generation disruptive technology Global LED lighting market and size Efficacy by lighting technology, Lumens/Watt ¥ Rapidly growing LED market: office and industrial applications will
Slide 18: Growth Drivers – LED
Luceco plc | Full year results presentation 2016 GROWTH DRIVERS – LED … with Luceco ideally positioned to outperform the market Key market growth drivers… … and how Luceco takes advantage ¥ Technology disruption creates market entry ¥ LED provides only upside opportunity both in terms of product and
Slide 19: Geography
Luceco plc | Full year results presentation 2016 GEOGRAPHY Group Revenue by location (%) UK 86% Middle East 4% Customers Europe 4% across Rest of world 6% 75 countries 1. Research and development (“R&D“). 18
Slide 20: Acquisition Strategy
Luceco plc | Full year results presentation 2016 ACQUISITION STRATEGY UK Expansion International Expansion ¥ Consolidation of UK market ¥ Chinese manufacturing ¥ Access to overseas markets facilities ¥ Fragmented domestic ¥ Allows existing products to be electricals manufacturing ¥ Consolidation of
Slide 21: China Update – Facility's Competitive Advantage
Luceco plc | Full year results presentation 2016 CHINA UPDATE – FACILITY’S COMPETITIVE ADVANTAGE LUCECO’S MAIN MANUFACTURING FACILITY CHINESE SUBSIDIARY TURNOVER GROWTH1 (m) ¥ Wholly-Owned Foreign Enterprise (“WOFE”) based in ¥461 ¥511 Jiaxing, near Shanghai ¥362 ¥ Decision taken by management in 20
Slide 22: Summary and Outlook
Luceco plc | Full year results presentation 2016 SUMMARY AND OUTLOOK 21
Slide 23: 2016 Summary
Luceco plc | Full year results presentation 2016 2016 SUMMARY Extremely Continued strong 140 new Additional Expansion double digit products Continued LED performance manufacturing in Spain and revenue brought to growth across all capacity Hong Kong growth market segments ¥ Strong delivery across all
Slide 24: Outlook
Luceco plc | Full year results presentation 2016 OUTLOOK ¥ Trading in the new financial year has started stronger than expected ¥ Group continues to grow market share in the UK and other, newer markets, at margins in line with expectations. ¥ Growth forecasts for 2017 underpinned by – A strong order
Slide 25: Disclaimer
Luceco plc | Full year results presentation 2016 DISCLAIMER This presentation and information communicated verbally to you may contain certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Luceco plc. Thes