A market leader in retail logistics 2016 Interim Results - PowerPoint PPT Presentation

A market leader in retail logistics 2016 Interim Results Presentation 3 December 2015 Logistics evolved: Agility and Ability

Disclaimer This presentation includes statements that are, or may be deemed to be, “forward -looking statements” . These forward- looking statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations. Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections. Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or sell shares in the Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an independent financial advisor authorised by the Financial Services and Markets Act 2000. 2

Agenda 1 Highlights – Steve Parkin 2 Financial review – David Hodkin 3 Operational review – Tony Mannix 4 Summary and Q&A – Steve Parkin 3

Highlights 1

Highlights – Financial Group revenue growth of 26.9% to £141.5m (2014: £111.6.m), driven by strong growth in all divisions Group Adjusted EBIT growth of 18.1% to £6.2m (2014: £5.2m): o e-fulfilment Logistics – EBIT of £3.5m, up 59.2% (2014: £2.2m) o Non e-fulfilment Logistics – EBIT of £5.0m, up 6.0% (2014: £4.7m) o Commercial vehicles – EBIT of £1.1m, up 36.0% (2014: £0.8m) Adjusted EPS of 4.3p, up 19.4% (2014: 3.6p) Interim dividend of 2.0p per share, up 25.0% (2014: 1.6p) 5 Note: The highlights are for the 6 months ended 31 October 2015, as compared to the 6 months ended 31 October 2014

Highlights – Operational Continued transition of retail activity to online driving growth with new and existing customers Click and Collect collaboration with John Lewis Partnership commenced – KPIs consistently attained o Rollout across estate and into third parties, calendar 2016 Commenced several new operations in the period: o E-fulfilment for a major international retailer o Warehousing and returns for Pep&Co o Implemented new contract with Philip Morris o Click and Collect services for John Lewis Continuing strong pipeline of new business opportunities Servicecare acquired December 2014, delivering results in line with expectations Strong performance from commercial vehicles business 6

Financial review 2

Summary Income Statement 6m to 31 £m Change Year to 30 October 2014 2015 % April 2015 • Strong top-line performance in the period driven by all Revenue 111.6 141.5 26.9% 234.8 business units Cost of sales (79.3) (100.0) (165.6) • Key adjusted EBIT metric saw continuing strong Gross profit 32.3 41.5 28.6% 69.2 growth, again driven by all business units Other net gains 0.2 0.3 0.3 • Discontinuing & Exceptional costs in the prior year Admin expenses (27.3) (35.6) (57.5) reflect residual impact of prior ownership structure and IPO Adjusted EBIT 5.2 6.2 18.1% 12.0 Discontinuing costs (0.3) - (0.3) • Finance cost in-line with prior year Exceptional costs (0.7) - (0.8) • Profit before tax ahead by 52.9% to £5.5m (2014 - Operating profit 4.3 6.2 10.9 £3.6m) Net finance costs (0.7) (0.7) (1.4) • Adjusted EPS ahead by 19.4% to 4.3p (2014 - 3.6p) Profit before tax 3.6 5.5 52.9% 9.5 • Interim dividend up 25% to 2.0p (2014 - 1.6p) Income tax (0.8) (1.2) (2.2) Net income 2.7 4.3 7.3 Earnings per share (p) 2.7 4.3 7.3 Adjusted earnings per 3.6 4.3 19.4% 8.4 share 1 (p) Interim dividend per share (p) 1.6 2.0 25.0% - 1. EPS adjusted for discontinuing and exceptional costs and the tax thereon 8

Segmental performance Revenue £m 6m to 31 October Change 2014 2015 % • Strong growth in all aspects of Logistics: E-fulfilment logistics 27.0 42.6 57.8% Non E-fulfilment logistics 49.0 55.9 14.2% o Continuing organic growth with existing customers, particularly in e-fulfilment (e.g Total logistics 76.0 98.5 29.7% Asos, John Lewis and Superdry) Commercial vehicles 36.2 43.7 20.8% o Full year impact of prior year contract wins Inter-segment sales (0.6) (0.7) (e.g Philip Morris and Flyers) Group total 111.6 141.5 26.9% o New contracts brought on stream (e.g Click & Collect, e-commerce for a major international retailer) Adjusted EBIT o Acquisition in December 2014 of Servicecare £m 6m to 31 October Change Support Services Ltd 2014 2015 % • Investment in central logistics cost, particularly the E-fulfilment logistics 2.2 3.5 59.2% solutions development team and IT Non E-fulfilment logistics 4.7 4.9 6.0% • Commercial vehicle growth driven by both new Central logistics costs (1.8) (2.3) vehicle sales and aftersales Total logistics 5.1 6.1 19.4% Commercial vehicles 0.8 1.1 36.0% Head office costs (0.7) (1.0) Group total 5.2 6.2 18.1% 9

Summary cash flow statement £m 6m to 31 October Year to 30 2014 2015 April 2015 • Limited working capital investment reflective of Adjusted EBIT 5.2 6.2 12.0 positive working capital profile in the business – Depreciation & Amortisation 1.7 1.8 3.6 majority of revenue growth in UK Logistics has been Other non-cash items 1 0.0 0.2 0.1 on open book contract terms Change in working capital (0.4) (0.8) (0.9) Net interest paid (0.6) (0.7) (1.2) • Commercial Vehicles working capital substantially Tax paid (0.5) (0.7) (1.7) funded by manufacturers Net cash flow on non-recurring items 2 (2.3) - (2.3) Net cash flows from operating activities 3.0 6.0 9.6 • Good underlying cash flow and cash conversion as % of Adjusted EBITDA 3 44% 76% 62% • Majority of capex is back-to-back with agreements by customers to repay the capital through open-book Net capital expenditure (0.3) (2.7) (0.0) contract mechanisms. Acquisition of subsidiary - (1.0) (3.7) Net cash flows from investing activities (0.3) (3.7) (3.7) Net repayment to former parent (14.3) - (14.0) Net drawdown of bank loans 10.8 2.8 9.5 Finance leases advanced - 0.4 0.1 Repayment of capital on finance leases (1.2) (1.5) (3.0) Dividends paid (0.3) (3.2) (1.9) Net cash flows from financing activities (5.0) (1.5) (9.3) Net increase / (decrease) in cash & cash (2.3) 0.8 (3.4) equivalents 1. Other non cash items comprise share based payments, exchange differences and movement in fair value of derivatives 2. Cash impact of discontinuing and exceptional costs as detailed on slide 8 10 3. Adjusted EBITDA calculated as Adjusted EBIT plus depreciation and amortisation

Summary balance sheet £m 6m to 31 October Year to 30 2014 2015 April 2015 • Capital efficient balance sheet – low fixed asset and Intangible assets 19.5 24.8 24.8 working capital requirements Property, plant & equipment 15.3 20.7 14.6 • Investment in fixed assets largely to support new Non-current assets 34.8 45.5 39.4 open-book contracts under which capital will be repaid over the term of the contract Inventories 18.7 25.6 21.7 Trade & other receivables 32.9 44.9 33.4 • Net debt £19.7m with further undrawn bank Cash & cash equivalents 3.0 2.7 1.9 facilities of £13.5m Current assets 54.6 73.2 57.0 Trade & other payables 56.4 75.3 61.7 Borrowings 5.0 9.5 5.3 Short term provisions 0.1 0.1 0.1 Current tax liabilities 0.5 1.2 0.7 Current liabilities 62.0 86.1 67.8 Borrowings 12.3 13.0 10.2 Long term provisions 0.7 0.7 0.7 Deferred tax liabilities 0.5 0.5 0.7 Non-current liabilities 13.5 14.2 11.6 Net assets 13.9 18.4 17.0 11

Operational review 3

Overview The Group’s strategy is set around four key principles – all of which have seen positive developments over the period under review: Build on Clipper’s market leading customer proposition and continue to expand the customer base Continue European expansion through our profitable German platform Develop new, complementary products and services Consider complementary acquisition opportunities 13