HY 2019 RESULTS 2 ND AUGUST 2019 AGENDA 1. HY 2019 Summary & - - PowerPoint PPT Presentation
Investor Presentation HY 2019 RESULTS 2 ND AUGUST 2019 AGENDA 1. HY 2019 Summary & Performance Review - Paul Forman 2. HY 2019 Financial Review - Lily Liu 3. Stability Update - Paul Forman 4. Portfolio Simplification & FY 2019
2ND AUGUST 2019
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7.7 9.4
4 8 12 H1 '16 H2 '16 H1 '17 H2 '17 H1 '18* H2 '18* H1 '19*
0.1 1.3 1.5 3.7
4 H1 '16 H2 '16 H1 '17 H2 '17 H1 '18* H2 '18* H1 '19* % %
1 Like-for-like
* Like-for-like, adjusted for the closure of the Kilmarnock and Largo consumer packaging sites
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12.9 11.1 8.2 8.2 8.5 9.2 9.5 2 4 6 8 10 12 14 H1 '16 H2 '16 H1 '17 H2 '17 H1 '18 H2 '18 H1 '19 %
1 Adjusted to exclude intangible amortisation and exceptional operating items
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* At constant FX
Launch of new EssentraComponents.com website Investment in enhanced logistics capability in the US and Germany
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* At constant FX
Further Design Hub collaboration with customers, to provide value-added solutions Continued product development to meet industry trends
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* At constant FX
Scientific Services expansion into Indonesia Further new product development to meet trend for innovative special filters in both combustibles and NGP
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* At constant FX
Rebranding of Industrial Supply to Reid New business wins with custom printed tapes for food applications
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* As at 30 June 2019
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1 Continuing operations 2 Adjusted to exclude intangible amortisation and exceptional operating items
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1 At constant exchange rates, adjusted for the acquisition of Hertila from 5 July 2018 until 8 February 2019 2 At constant exchange rates, adjusted for the disposal of Pipe Protection Technologies on 14 January 2019 and the disposal of Extrusion on 11 June 2019 3 At constant exchange rates, adjusted for the acquisition of Hertila, the divestment of Swiftbrook trade and assets from 3 September 2018 and the disposals of Pipe Protection Technologies and
Extrusion as per 1 and 2
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1 Adjusted to exclude intangible amortisation and exceptional operating items 2 2018 operating margin is at constant exchange rates
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1 Adjusted to exclude intangible amortisation of £11.1m and an exceptional pre-tax credit of £22.9m
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1 Other exceptional items primarily relate to £5.9m of credits relating to the release provisions with regard to certain site closures and £0.9m of external consultants’ costs incurred in relation to a
review and investigation currently in progress of certain Group companies’ export activities with US laws
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1 Adjusted to exclude intangible amortisation and exceptional and other adjusting items 2 Being depreciation of £18.0m, right-of-use asset depreciation of £5.2m and Share Option Expense / Other Movements of £3.0m 3 Excludes £0.3m of exceptional property, plant and equipment (“PPE”) disposal proceeds realised during site closures
48.3 22.6 26.2 36.6 (14.9) (23.0) (7.4) (6.2) (0.4) 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0
Operating profit Non-cash items Working capital Net capex Operating cash flow Tax Interest paid Pensions Free cash flow
£m
1 2 1 1 3
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NOTE: Negative numbers denote a cash inflow, positive numbers a cash outflow
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10.8 8.6 9.6 10.2 0.0 4.0 8.0 12.0 FY 16 FY 17 FY 18 LTM 19* %
* After applying IFRS 16
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6.3 6.3 6.3 6.3 6.3 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 HY 15 HY 16 HY 17 HY 18 HY 19 pence
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10 20 30 40 50 60 70 January February March April May June July August September October November December Reporting period
2017 - Group 2018 - Group 2019 - Group
NOTE: Data covers sites owned by Essentra as at 30 June 2019 (2017 and 2018 figures restated accordingly)
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development
model trials
initiatives
programme
upstream Scope 3 emissions
safety
Community engagement policy
KYS processes as part of BPR project
auditing
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NOTE: Specialist Components OTIF is like-for-like arithmetic average of performance of the three remaining businesses at the end of HY 2019 (Tear Tapes, Card Solutions and Industrial Supply)
89.8% 90.4% 92.4% 93.3% 85% 87% 89% 91% 93% 95% 2016 2017 2018 HY19
92.9% 95.9% 95.6% 96.2% 90% 92% 94% 96% 98% 2016 2017 2018 HY19
92.7% 95.2% 98.5% 98.5% 90% 92% 94% 96% 98% 100% 2016 2017 2018 HY19
92.8% 92.8% 95.3% 85% 87% 89% 91% 93% 95% 97% 2017 2018 HY19
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NOTE: Indexed complaint rate – 2016 = 100 for Components, Packaging and Filters: 2017 = 100 for Specialist Components Specialist Components quality metric is like-for-like arithmetic average of performance of the three remaining businesses at the end of HY 2019 (Tear Tapes, Card Solutions and Industrial Supply)
100 75 72 57 50 60 70 80 90 100 2016 2017 2018 HY19
100 74 58 55 50 60 70 80 90 100 2016 2017 2018 HY19
100 58 34 27 20 40 60 80 100 2016 2017 2018 HY19
100 96 83 50 60 70 80 90 100 2017 2018 HY19
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0% 20% 40% 60% 80% 100% 120% 2017 2018 2019*
* Annualised for 2019
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1,036 348 176 200 400 600 800 1,000 1,200 H1 2018 H2 2018 H1 2019
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* Rounded figures are based on FY 2018, other than gross proceeds / (outlay)
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NOTE: 2018 movement in Components (reported 2018 vs pro forma 2018) reflects the transfer out of the Speciality Tapes distribution sites into Specialist Components as of 1 January 2019 (subsequently divested on 28 June 2019) and the transfer in of the Industrial Supply (Reid) business
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2ND AUGUST 2019