Michelmersh Brick Holdings PLC · LSE:MBH
Michelmersh Brick — H1 2022 Earnings Presentation
34 slides from Michelmersh Brick's earnings presentation, November 2022
Slide 1: 2022 Interim Results
0 2022 Interim Results Dudden Hill London
Slide 2: Disclaimer
Michelmersh Interim Results 2022 1 Disclaimer ▪ The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in an
Slide 3: Presentation Team
Michelmersh Interim Results 2022 2 Presentation Team Frank Hanna Britain’s Brick Specialist Joint Chief Executive Officer Ryan Mahoney Michelmersh strives to be a well-invested, long term, Chief Financial Officer sustainable and environmentally responsible business dedicated to delivering quality pr
Slide 4: Michelmersh Brick Holdings plc
3 Michelmersh Interim Results 2022 Michelmersh Brick Holdings plc 125m+ Strong core market Manufacturer of diverse RMI, Housing,Commercial, premium brick products UrbanRegeneration, Specification 2 3 lifetime Robust distribution revenue sources policy 1 3 • Bricks Pioneering Select • Landfill Order
Slide 5: Highlights
Michelmersh Interim Results 2022 4 Highlights Positive H1 2022 performance and confidence in outlook ▪ Revenue of £34.0m (up 13.7%) and Gross Profit £12.8m (up 6.7%) (2021: £29.9m and £12.0m) ▪ Adjusted* EBITDA of £8.1m with an EBITDA margin at 23.8%, broadly in line with medium-term margin target ▪
Slide 6: HY22 Financial Highlights
Michelmersh Interim Results 2022 5 HY22 Financial Highlights HY21 Comparative Turnover Gross Margin Adjusted EBIT £34.0m 37.7% £6.2m £29.9m 40.1% £5.7m Adjusted Cashflow from EBITDA Profit Before Tax operations £8.1m £5.6m £8.0m £7.6m £5.0m £6.7m Basic EPS Adjusted EPS NAV per share 4.64p 5.12p 89.0
Slide 7: HY22 Operational Highlights
Michelmersh Interim Results 2022 6 HY22 Operational Highlights ▪ Positive performance in H1, with results for the period ahead of record 2021 comparison ▪ Resilient business fundamentals expected to continue due to diversified end customers covering multiple channels ▪ Input and haulage cost pressur
Slide 8: HY22 Sustainability Highlights
Michelmersh Interim Results 2022 7 HY22 Sustainability Highlights Our goal is always to reduce, then seek alternatives and finally offset any Net Zero by 2050 remaining carbon emissions. Potential project reduction timeline ▪ Remain committed to delivering against our strategy laid out in our 2021 S
Slide 9: Financial Review
Michelmersh Interim Results 2022 8 Financial Review University of Winchester, Winchester
Slide 10: Income statement
Michelmersh Interim Results 2022 9 Income statement Compared to 2021 half year, which was a record period for the business ADJUSTED ADJUSTED Change H1 2022 H1 2021 £M £M Revenue 34.0 29.9 13.7% Gross profit 12.8 12.0 6.7% Gross margin 37.7% 40.1% (2.4%) Central costs1 (6.6) (6.6) - Other income - 0.
Slide 11: Balance Sheet
Michelmersh Interim Results 2022 10 Balance Sheet Strong balance sheet position provides financial resilience and flexibility to pursue strategic initiatives and acquisition opportunities 2022 2021 30 Jun £M 30 Jun £M Intangible fixed assets 19.7 20.8 Tangible fixed assets 63.8 61.3 Net working capi
Slide 12: Cash Flow
Michelmersh Interim Results 2022 11 Cash Flow Consistent quality of the fundamental cash generating ability of the business with adjusted EBITDA cash conversion of 98.8% 2022 2021 £M £M Net cash generated by operations 8.0 6.7 Tax paid (1.3) (1.1) Interest paid (0.1) (0.1) Purchase of property, plan
Slide 13: Net Cash/Debt Year Profile
Michelmersh Interim Results 2022 12 Net Cash/Debt 10 Year Profile Strong Group cash position of £9.9m and undrawn committed RCF of £20m underpin financial resilience, strategic optionality and flexibility to pursue acquisition opportunities 2017 Carlton 2019 Floren Acquisition Acquisition 10 2.0 5 -
Slide 14: Sector Review
Michelmersh 13 Interim Results 2022 Sector Review Geraint Thomas House London
Slide 15: Market Fundamentals
Michelmersh Interim Results 2022 14 Market Fundamentals UK Housing Dynamics Strong demand for new housing • Government and opposition parties committed to the fundamentals of the requirement to support the construction of new homes • Positive housing market expected to continue despite economic back
Slide 16: UK Brick Manufacturing – Current Trends
Michelmersh Interim Results 2022 15 UK Brick Manufacturing – Current Trends Strong and consistent demand for bricks over the last 12 months has kept stocks at historic lows 2022 & 2021 Cumulative output and excess over output • Current UK brick industry stocks remain at or around all time lows (Sour
Slide 17: UK Residential Market Update
Michelmersh Interim Results 2022 16 UK Residential Market Update Stable projections for housing starts and completions, with positive RM&I output expected over the medium term Actual 2019 to Forecast 2023 Housing Starts and Completions Actual 2019 to Forecast 2023 RM&I Output (Source;MHCLG, ONS, CPA
Slide 18: Market Structure
Michelmersh Interim Results 2022 17 Market Structure UK brick manufacturers Market Share OTHERS 3% UK brick manufacturing highly concentrated MICHELMERSH 5% FORTERRA 28% WIENERBERGER 21% Current UK capacity c. 1.95 Billion Source: Published statistics and IBSTOCK 43% management estimates UK Brick wo
Slide 19: Clay Brick Industry
Michelmersh Interim Results 2022 18 Clay Brick Industry Market presence and influence • 84% (over 205,000) of new homes in the UK were built using clay brick in 2021. • c.1.95 Billion clay bricks UK manufacturing capacity. • c. 2.50 Billion clay bricks used annually in the UK • 150-200 years minimum
Slide 20: Why Brick?
Michelmersh Interim Results 2022 19 Why Brick? Why brick is the UK’s external façade material of choice:
Slide 21: Why Brick?
Michelmersh Interim Results 2022 20 Why Brick? Why brick is the UK’s external facade material of choice: The Cost of Comparative Cladding Materials’ by the RICS Building Cost Information Service (BCIS) Material cost comparison: The Group has invested over £7.7m since 2016 on efficiency and sustainab
Slide 22: Outlook
Michelmersh Interim Results 2022 21 Outlook Industry • Continued UK housing dynamics of short supply to meet strong demand • Brick continues to be the façade material of choice • Resilient demand across diverse end markets • Capital intensive and complex barriers to entry Michelmersh • Positive trad
Slide 23: Appendices
Michelmersh Interim Results 2022 22 Appendices Student Accommodation Bournemouth
Slide 24: Good corporate citizen Michelmersh Core Values - IRIS
Michelmersh Interim Results 2022 23 Good corporate citizen Michelmersh Core Values - IRIS Using modernised production methods that emphasise sustainable building solutions and adhere to the most stringent production requirements, Michelmersh guarantees high quality product standards with a low ecolo
Slide 25: Sustainability
Michelmersh Interim Results 2022 24 Sustainability Shaping Genuine Sustainability The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degr
Slide 26: Michelmersh announces Hybrick – world's first 100% hydrogen fired clay bricks
Michelmersh Interim Results 2022 25 Michelmersh is proud to announce Hybrick™ – The world’s first 100% hydrogen fired clay bricks..
Slide 27: Education Sector
Michelmersh Interim Results 2022 26 Education Sector The Oaks Student Accommodation, Coventry & Royal Birmingham Conservatoire
Slide 28: Public
Michelmersh Interim Results 2022 27 Public Devon & Cornwall Police Headquarters, Exeter
Slide 29: Volume Housing
Michelmersh Interim Results 2022 28 Volume Housing Westoe Crown Village, Tyne & Wear
Slide 30: Affordable Housing
Michelmersh Interim Results 2022 29 Affordable Housing Temple Gardens, St. Annes, Port Loop, Larner Road
Slide 31: Urban Regeneration
Michelmersh Interim Results 2022 30 Urban Regeneration St.Bedes Mews, London
Slide 32: Luxury Developments
Michelmersh Interim Results 2022 31 Luxury Developments Poundbury, Dorchester
Slide 33: High-end Individual Housing Specification
Michelmersh Interim Results 2022 32 High-end Individual Housing Specification Corner House, London
Slide 34: Interim Results 2022
Michelmersh 33 Interim Results 2022 Freshfield Lane Danehill Haywards Heath Sussex Sugar House Lane, London RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
Michelmersh Brick Holdings — H1 2022 Earnings Presentation on 6ix