2020 Interim Results 5 August 2020 Derek Muir Chief Executive Officer Hannah Nichols Chief Financial Officer Delivering intelligent protection solutions Stock Code HILS
Key messages HY20 Results 5 August 2020 ▪ Sa Safety, he heal alth an and well ellbeing of of ou our em employees s rem emain ou our key pr priority ▪ Resi esilient H1 1 pe performance − Strong Q1 performance; Q2 impacted by COVID-19 related disruption − All divisions remained profitable throughout the period − US businesses delivered organic revenue and profit growth − Progressive recovery in Group trading since April ▪ Rob obust fin financial posi osition − Strong cash generation supported by cash preservation actions − Net debt to EBITDA 1.7 times, £193m facilities headroom ▪ Interim div dividend of of 9.2p .2p dec declared ▪ Paul aul Sim Simmons s to o joi join as as CEO ▪ Wel ell posi positioned for or rec ecovery and and furt further gr growth - Outlook for infrastructure spend remains positive 2
COVID-19 Update HY20 Results 5 August 2020 ▪ Ope perating a a COVID sec secure en environment − Group following all public health and safety guidelines − Social distancing measures have minimal impact on production output ▪ Cos ost control & cas ash pr preservation acti actions − Businesses acted quickly and decisively to limit discretionary spend − Continued focus on driving local efficiency plans − Tight control of working capital and capital expenditure − Withdrawal of 2019 final dividend ▪ Government sup support sch schemes − Government furlough schemes accessed to preserve jobs (£3.6m) − No plans to utilise beyond July 2020 (inc. UK Job Retention Bonus) − £7.4m deferral of tax payments until 2021 ▪ Continue to focu ocus on on gr growth op opportunities 3
Results summary HY20 Results 5 August 2020 Organic ^ H1 1 H1 1 Rep eported FX FX 2020 2020 2019 2019 +/ +/- +/ +/- imp mpact Revenue (£m (£m) 315.6 339.5 -7% -10% + £3.1m Operating pr Ope profi ofit (£m (£m) 26.8 .8 40.2 -33% -35% + £0.6m Ope Operatin ing mar margin in (%) (%) 8.5 11.8 -330bps Profi ofit be befor ore tax (£m (£m) 22.8 36.9 -38% -40% Ear arnin ings per per sha hare (p) (p) 23.1 37.5 -38% -40% Di Divid idend (p) (p) 9.2 10.6 -13% ^ Adjusted for the effect of acquisitions, disposals and foreign exchange movements 4
H1 2020 at a glance HY20 Results 5 August 2020 Revenue by y seg egment: £315.6m Operating Profit it by se segment: £ £26.8m ROADS & SECURITY 16% GALVANIZING 27% ROADS & SECURITY GALVANIZING 41% 53% UTILITIES 31% UTILITIES 32% A A well ell bala balanced bus busin iness: pr products, ma markets an and geog eographie ies Revenue by end market geography: £ £315.6m Operating Profit by plant location: £ £26.8m UK 23% UK & RoW RoW -5% 18% US UK 44% 38% US Europe 16% 82% RoW 18% 5
Roads & Security HY20 Results 5 August 2020 H1 H1 H1 Organic Ope peratin ing £m £m Revenue Profi ofit 2020 2020 2019* Change H1 H1 20 2019 19* 12 128.9 8.9 10.7 10 Revenue (£m) 12 128.2 8.2 128.9 -9% F/X 0.5 0.1 Operating profit (£m) 4.3 .3 10.7 -59% M&A 10.3 (0.1) Operating margin 3.4% 3.4% 8.3% Organic (11.5) (6.4) ▪ UK Roa oads H1 H1 20 2020 20 128.2 12 8.2 4. 4.3 − UK Government confirmed commitment to RIS 2 spend: £27.4bn (2020-25) − Temporary rental barrier business operated with minimal disruption 2020 H1 H1 Rev even enue − Strong demand for permanent barriers driven by release of new RIS 2 schemes £128. £128.2m Dow own 9% 9% organic ically lly − Other permanent road product businesses impacted by COVID-19 related delays − RIS 2 Smart Motorway schemes to commence 2021 UK Roads dow own 7% 7% £51m £5 ▪ UK Securit ity UK Security down 33 dow 33% £2 £22m − Security fencing and access cover businesses temporarily closed, reopened in May US Roads up up 7% 7% £3 £31m − Security bollard and HVM projects impacted by customer delays and Middle East uncertainty International dow down 10 10% £24m £2 − Low demand for security barrier rental due to cancellation of public gatherings − Outlook for data centre security solutions encouraging Re Reven venue e by by end nd geog eograph phy ▪ US Roa oads − Strong performance, good demand for product range including crash attenuators and barrier 25% − Good prospects for further growth UK ▪ Other Internatio ional l Roa oads US 53% − Sweden restructuring progressing to plan under new management Rest Of Europe − France impacted by COVID-19 lockdown measures Rest of the World 19% − Improved trading performance in Australia 3% * Where noted throughout this presentation, 2019 has been restated to reflect the Group’s revised segmental structure effective 1 January 2020 6
Utilities HY20 Results 5 August 2020 H1 H1 H1 Organic Ope peratin ing £m £m Revenue Profi ofit 2020 2020 2019* Change H1 H1 2019* 11 112. 2.3 9.2 9. Revenue (£m) 101.4 101 .4 112.3 -7% F/X 1.5 0.2 Operating profit (£m) 8.2 8.2 9.2 -16% M&A (4.6) 0.3 Operating margin 8.1% 8.1% 8.2% Organic (7.8) (1.5) ▪ UK UK H1 H1 2020 10 101.4 1.4 8.2 8. − Building products business temporarily closed, reopened in April − 2020 20 20 H1 H1 Revenue Industrial flooring remained open £101 £101.4m − Dow own 7% 7% organic ically lly Gradual recovery in activity but H2 outlook uncertain ▪ US US UK down 28 dow 28% £27m £2 − Businesses deemed ‘essential’ and allowed to remain open US up 11 up 11% £54m £5 − Strong organic growth in both composites and utility transmission Pipes (US/India) down 10 dow 10% £2 £20m − Key growth drivers: upgrade of ageing power infrastructure and increasing acceptance of composite systems for infrastructure projects Reven Re venue e by by end nd geog eograph phy − Good order books for H2 69% ▪ Pip ipe Sup Supports UK − US: business awarded ‘essential’ status and continued to operate US − India: COVID-19 forced shutdown impacted H1 trading; H2 focus on managing Rest Of Europe order backlog Rest of the World 26% 2% 3% 7
Galvanizing HY20 Results 5 August 2020 Ope peratin ing H1 H1 H1 Organic £m £m Revenue Profi ofit 2020 2020 2019 Change H1 20 H1 2019 19 98 98.3 20 20.3 Revenue (£m) 86.0 86 .0 98.3 -13% F/X 1.1 0.3 Operating profit (£m) 14 14.3 .3 20.3 -31% Organic (13.4) (6.3) Operating margin 16.6% 16.6% 20.7% H1 20 H1 2020 20 86 86.0 14.3 14 ▪ Ov Overal all − H1 trading impacted by COVID-19 related closure and slowdown in volumes 2020 20 20 H1 H1 Revenue − Progressive volume recovery since April supported by wide sectoral spread of £86 £86.0m Dow Down 13 13% % organic ically lly customers ▪ UK: UK: 79k 79k tonnes s 19% 19% UK dow down 16 16% £2 £27m − All plants remained opened to support essential work, albeit with lower activity US dow down 9% 9% £36m £3 − Gradual recovery with June volumes similar to prior year France dow down 16 16% £2 £23m ▪ US: US: 75k 75k tonnes 7% 7% − All plants awarded ‘essential’ status and continued to operate Reven Re venue e by by end nd − Slowdown in activity due to COVID-19 customer delays; gradual recovery with geog eograph phy June volumes ahead of prior year 42% − New York plant operational January 2020 with baseload of new customers UK ▪ Fr France: 57 57k tonnes s 10 10% − Strong start to the year US − Forced closure of all plants in mid March; volumes now recovering after France 27% 31% reopening at end April − June volumes in line with prior year 8
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