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YEAR END RESULTS December 2017 AGENDA Introduction Financial - PowerPoint PPT Presentation

YEAR END RESULTS December 2017 AGENDA Introduction Financial highlights Strategy Progress Outlook Appendix 3 Year End Results Presentation OUR PRODUCTS OUR LOCATIONS Fleeces Neptune Heavy Layer Nonwoven mono-


  1. YEAR END RESULTS December 2017

  2. AGENDA • Introduction • Financial highlights • Strategy Progress • Outlook • Appendix

  3. 3 Year End Results Presentation OUR PRODUCTS OUR LOCATIONS Fleeces Neptune Heavy Layer Nonwoven mono- Lightweight, ultra-micro material polyester Thermoplastic mass fibre acoustic absorber fleeces with application barriers specific scrims Multi Layer Light Foam Foams Gothenburg, Sweden Layered barriers and NPI centre, materials Low density PUR foam Injection moulded PUR absorbers tuned to manufacturing, assembly & with application specific open/semi-open/closed Nuneaton, UK specific applications conversion operation scrims and heat shields cell foams Group technical centre: e.g. Ozone laboratory & test site Tamworth, UK Materials manufacturing, OUR PROCESSES assembly & conversion Hilden, Germany operation NPI centre, assembly & conversion operation Rugby, UK Materials Conversion and Customer Group HQ, NPI centre, Northampton, UK Manufacturing Support Assembly assembly & conversion JV with Indica Industries operation (India), materials Ultra-micro fibre, low Cutting, sealing, Tooling & component, manufacturing and assembly density PUR foams moulding, welding design & testing

  4. 4 Year End Results Presentation APPLICATIONS - ICE Bonnet liners Light foam with protective covers • Lightweight, acoustic performance, low flame response, high temperature Bumper Heavy layer and PUR • Significant mass used to reduce vibrations and act as a barrier to noise transmission Wheel arches Combination product incl. PET or advanced options • Cost-effective recycled materials, improved acoustic profile Door blankets Neptune in multiple thicknesses • High performance 3D acoustic absorption , thermally efficient Dash mats Multi-layer, advanced options such as Neptune • Material combinations balancing barrier and absorption requirements Battery insulation PET wadding, multi-purpose scrims • High performance specialised coatings, optional barrier films, thermally efficient Transmission undertray Light foam, covers, optional heat shielding • Lightweight, acoustic performance, low flame response, high temperature

  5. FINANCIAL HIGHLIGHTS

  6. 6 Year End Results Presentation FINANCIAL HIGHLIGHTS FY 2017 FY 2016 Change Comment Revenue £26.4m £20.4m +29% Non UK share increased to 12.4% (FY2016: 7.1%) Gross Profit £9.0m £6.5m +38% Margin improved to 34.3% / FY2016: 32.02% Adj. EBITDA £2.0m £1.4m +38% Excludes IPO costs, press repairs and change of CEO Profit after Tax £0.4m £0.3m +35% Earnings per Share 1.82p 2.03p (0.21)p Affected by average no. of shares despite higher PAT Net Cash/(Debt) £(2.0)m £3.3m £(5.3)m Final Dividend 0.8p N/A N/A Total FY2017: 1.2p/share • Strong growth across Group with margins holding up well • Germany and Sweden progressing profitably 29% top line growth Building • Continued investment in key resources / overhead momentum • Cash invested in growth capacity, Neptune and working capital

  7. 7 Year End Results Presentation REVENUE BRIDGE UK Growth £0.88 £26.36 £0.38 • £0.19 Greater tier penetration with £0.54 £0.82 growth on existing OEM base £3.35 • Tooling: OEM platforms due to launch FY2018 • £20.38 Non automotive: end customer growing, with new sales channel in USA Overseas growth • Germany: automotive growth > 100% with new OEM contract being rolled out FY2016 UK Germany Sweden Non Flooring Tooling FY2017 automotive automotive automotive automotive • Repatriation of work back to the UK • Sweden: Volvo tiers Neptune component supply started H2 • Flooring: range extension and new customers secured

  8. 8 Year End Results Presentation Adj. EBITDA BRIDGE £1.72 (£0.18) (£0.83) Volume effect • Top-line growth delivers margin drop through £2.03 £0.66 (£0.65) • Margin enhancement from new products and (£0.17) £0.12 £1.35 processes Growth overhead • Customer facing personnel • Operational excellence FY2016 Grant Sweden Sweden Margin Margin Distribution Growth FY2017 income Margin Overhead Value Volume costs Overheads • Technical centre Others • Grants: lower in FY2017 as large project ended • Sweden: effect of mid year acquisition

  9. 9 Year End Results Presentation CASHFLOW BRIDGE £0.96 (£2.40) Working capital • Debtors increased £0.15 in line with top line growth £0.54 (£0.27) (£4.27) • Inventory • Tooling stock £0.3m lower • Trade creditors (inc. JV) up £0.8m £0.43 • Accruals £1.1m lower after settlement of IkSung capex (£4.86) Other cash items Operating Trade Other JV dividend Taxation & Capex Financing Cash activities debtors working income dividends outflow • Capex includes £0.35m capital intangibles & £1.4m Neptune accrued FY2016 • JV distributing 50% of profits

  10. STRATEGY PROGRESS

  11. 11 Year End Results Presentation BUSINESS MODEL Market Intelligence Product Offering Expertise and experience translated into specialised Research and product Operational know-how. Macro level development plans that trends and micro level deliver improved acoustic Excellence customer challenges and thermal performance combine to provide the through lightweight insight to inform our specialist materials development N Materials manufacturing Supply chain P management I Conversion & assembly Engaged Employees Core Capability One company in everything Acoustic and thermal we do, harnessing our Customer insulation design, group-wide knowledge to engineering, test, coupled Support identify opportunities for with advanced improvement and providing manufacturing and NPI an advantage to the ability customer

  12. 12 Year End Results Presentation STRATEGY Strategic Intent Market Led  Growth agenda built on best-in-class differentiated products Strategic Market Drivers  Specialist applications and materials, research & product development  Broader market and customer  Large target addressable market coverage - common drivers across OEMs  Premium vehicle growth especially SUVs Operational Excellence - changing NVH needs, lighter materials  Competitive advantage built around  Regulatory: emissions, VOC, engines advanced manufacturing & SCM - changing NVH needs, lighter materials  Vertically integrated, mixed model  Electric vehicle growth assembly, product introduction centres  Better position and operational - changing NVH, thermal, lighter materials footprint  New interior demands, technologies, materials - multi-layer, thickness, weight, function Performance Driven  Customer focused capabilities harnessing experience & expertise  Group-wide business processes with one face to market  One company in everything we do

  13. 13 Year End Results Presentation STRATEGIC PROGRESS Strategic Intent Strategic Progress 2017 Market Led  New wins: Volvo, Aston Martin, London Taxi  Growth agenda built on best-in-class  Neptune OEM approvals continue differentiated products  Specialist applications and materials,  MIRA technical centre, team fully in place research & product development  3-Horizon research & product development plan  Broader market and customer coverage Operational Excellence  New wins: VW, Porsche, Bentley  Competitive advantage built around advanced manufacturing & SCM  Multiple tier collaborations: working & winning  Vertically integrated, mixed model  Launched Autins Operating System assembly, product introduction centres  Indica Automotive JV performing well  Better position and operational footprint Performance Driven  Strengthening core leadership and management  Customer focused capabilities  Recruitment & investment in key staff harnessing experience & expertise  Group-wide business processes with  Group shared services, key account management one face to market  One company branding introduced  One company in everything we do

  14. OUTLOOK

  15. 015 Year End Results Presentation OUTLOOK Our view ahead • Confident of continued strong growth across the current year • Near term results will be weighted to second half • Important year as we re-shape financial performance of the Group Our view beyond • Accelerate operational excellence – Autins Operating System • Establish operation in Eastern Europe • Research & product development across 3 Horizons • Penetrate major European OEMs • Partner with key Tier 1s Detailed plans in place Building momentum

  16. APPENDIX • Financials: • Consolidated statement of Income, Financial Position, Cash Flows

  17. 17 Year End Results Presentation PROGRESSION – LAST 3 YEARS Group sales Group gross profit 15,000 6,000 14,000 5,000 13,000 12,000 4,000 External sales (£000s) Group profit (£000s) 11,000 10,000 3,000 9,000 2,000 8,000 7,000 1,000 6,000 5,000 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Automotive Non automotive Tooling

  18. 18 Year End Results Presentation CONSOLIDATED STATEMENT OF INCOME FY 2017 FY 2016 FY2015 £000s £000s £000s Revenue 26,357 20,378 19,781 Gross Profit 9,030 6,533 6,044 Gross Margin % 34% 32% 31% Exceptional costs 550 182 - EBITDA 874 918 1,774 Profit Before Taxation 207 186 899 Taxation 196 112 (182) Profit After Taxation 403 298 717

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