Judges Scientific plc AIM:JDG UHV Design 2011 Quorum 2014 Scientifica 2014 Scientifica 2012 GDS 2011 19 September 2017
Disclaimer The document attached hereto and the presentation of which it forms part (together the “Materials”) have been prepared by Jud ges Scientific plc (“Judges” or the “Company”) and are confidential and personal to you and the Materials are furnished to you as background information to provide a basis for potential investors to consider whether to pursue an acquisition of shares in the Company and do not constitute an offer or invitation for the sale or purchase of any securities, nor do they, nor do they purport to, set out or refer to all or any of the information an investor might require or expect in making a decision as to whether or not to deal in shares in the Company. 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Management team Alex Hambro, Non-Executive Chairman Experienced adviser to private equity and VC funds and family office investors David Cicurel, Chief Executive Founded Judges in 2002; Turnaround specialist and veteran deal-maker Brad Ormsby, Group Finance Director Previously CFO of Kalibrate Technologies plc; PwC trained Chartered Accountant David Barnbrook, Chief Operating Officer Chartered Engineer with over 20 years’ senior management experience in industry Owners of 19% of equity 3
Overview • Group involved in the buy and build of scientific instrument businesses • Sixteen acquisitions since May 2005; buying sustainable companies at sensible prices • Continued opportunities for consolidation in fragmented market • Long-term profitability and cash generation Share performance LSE: JDG FTSE: ASX 2500 5 Queen’s Awards 2000 for design 1500 excellence and p 1000 export 500 0 4
H1 2017 Highlights • Record revenues of £32.7m (H1 2016: £27.3m); 14% organic growth • Organic order book 16.5 weeks at 1 July 2017 (1 July 2016: 11.2 weeks); HY organic orders up 28% • Adjusted operating profit: £4.6m (H1 2016: £3.2m); up 43% • Adjusted basic EPS: 54.8p (H1 2016: 33.2p), up 65% • Cash generated from operations of £4.4m (H1 2016: £2.4m) • Interim dividend of 10.0p; 11% increase (2016 Interim: 9.0p) • Adjusted net debt of £5.8m at 30 June 2017 (Dec 2016: £9.9m) • July 2017 acquisition of Oxford Cryosystems for £4.5m and 24.5% increase in Bordeaux shareholding to 75.5% 5
Our Business Model • Long term drivers of growth: – Global higher education – Optimisation • Acquisition attributes: – Strong exporters in their global niche markets; solid EBIT margins – Generate sustainable profits and cashflows – Pay 3 to 6 times EBIT according to size – Borrow up to 2.5 times EBITDA @ 2 to 4% • Post acquisition: – Create environment for businesses to thrive; implement robust financial controls – Support and advice for entity management teams – Repay debt and reinvest in further acquisitions 6
12½ Year Financial History b c d e f g h i j k l m n o p q r s t u v w x y z aa Revenues and Profits b c d e f g h i j k l m n o p q r s t u v w x y z aa EPS and Dividends 70.0 10.0 120.0 30.0 9.0 60.0 100.0 25.0 8.0 50.0 7.0 80.0 20.0 6.0 Revenues £m 40.0 Profits £m Dividends (p) Adj. EPS (p) 5.0 60.0 15.0 30.0 4.0 40.0 10.0 3.0 20.0 2.0 20.0 5.0 10.0 1.0 - - - - Revenue £m - half year Revenue £m Adjusted operating profit - half year Adjusted operating profit Adjusted EPS - half year Adjusted EPS Dividend Dividend - half year Annual debt repaid + dividends paid from cashflow 7.0 6.0 5.0 CAGR 8.6% for Focus on debt H1 4.0 past 9 years repayment £'m 3.0 2.0 1.0 - Dividends Repayment of borrowings 7
Operational results drivers • Organic revenue – public sector funding – foreign exchange rates – macroeconomic environment • Cost – high fixed cost base – investment in R&D – impact of production issues ongoing • Other – impact of oil/commodity prices alleviating 8
Positive growth £000s Profit bridge 6,000 5,000 4,000 3,000 2,000 1,000 0 2016 H1 Organic growth Organic fall Acquisitions 2017 H1 contribution contribution 9
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