Full YearResults year ended 30 November2017 · Complete Civil Engineering review and implement...
Transcript of Full YearResults year ended 30 November2017 · Complete Civil Engineering review and implement...
31 January 2018
Full Year Resultsyear ended 30 November 2017
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2017 results affected by three principal factors Good sales and profit performance in B&I and I&T
CTT below its potential as production consistency issues impacted margin
Poor performance in Civil Engineering
Review of Civil Engineering in progress and initial actions executed
Cost reductions being implemented across the group
Final dividend maintained at 2.00 pence; total dividend 3.05 pence
Recognise need and plan to reduce net debt
Focused on achieving an overall Group 10% return on sales over the mediumterm, recognising that an individual BU return may be higher/lower
Chairman’s overview
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Going forward
Focus on cash management and net debt reduction
Optimise the organisation and reduce cost
Complete Civil Engineering review and implement actions quickly
Address the production consistency issues in CTT
Continue to invest in growth, especially in B&I and I&T
Philip de Klerk appointed CEO w.e.f. 1 March 2018
Trudy Schoolenberg will lead restructuring of global supply chain until end April 2018
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CEO summary
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Revenue increased* 4.5% to £446.5m
Underlying PBTA decreased* 2.2% to £30.7m with growth from B&I, I&Toffset by significant CE regression and a disappointing final quarter in CTT
Underlying EBITA margin at 8.0% (2016: 8.7%) – impacted by CE inparticular
Capex spend totalled £34m (2016: £22m), with 2017 investment of£16m in new Colback line in China
Net debt at £138m
EPS 6.42p (2016: 6.01p)
Revenue growth, stable profit and higher net debt
* At constant exchange rates 5
Immediate focus areas Address internal issues in Civil Engineering
Improve production consistency in CTT
Focus on cash to reduce net debt
Optimise group operating structure
Reduce cost and improve sales
Continue to support growth initiatives in B&I and I&T
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Financial Review
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Financial summaryYear ended 30 November 2017
Continuingoperations
2017£m
2016£m
Actualy-o-y
Constant currency
y-o-y
Revenue £446.5m £400.0m 11.6% 4.5%
EBITA* £35.5m £34.7m 2.3% (4.6)%
Operating margin* 8.0% 8.7% (70) bps
Net interest (4.8) (5.5) (12.7)% (17.2)%
PBTA* £30.7m £29.2m 5.1% (2.2)%ROCE* (12 months trailing) 11.1% 11.1% -
Non-underlying items (50.4) (3.3)
EPS* (adjusted) 6.42p 6.01p 6.8% (0.8)%
Dividend per share 3.05p 3.00p 1.7%
*underlying 8
Revenue growth* of 4.5%£m
400.0
427.214.1 5.2 446.5
FY 2016 Translation FX Constant FX Volume Price/mix FY 2017
27.2
B&I CEI&T
CTT
3.3% 1.2%
B&I CTTI&T
CE
9*at constant currency
Profit impacted by cost increases£m
29.2
31.430.7
FY 2016 PBTA Translation FX Constant FX Volume Price/RM impact Interest Inflation FY 2017 PBTA
2.2
3.5 (3.1)
0.9 (2.5)
CE B&II&T
CTT CECTT
B&II&T
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Business Unit resultsYear ended 30 November 2017
*underlying from continuing operations, at constant currency
Revenue* Profit* Operating Margin*
2017£m
2016(CER)
£m2017£m
2016(CER)
£m2017 2016
B&I 85.9 78.4 9.6% 12.4 11.7 6.0% 14.4% 14.9%
Civil Eng 102.0 97.2 4.9% 0.1 4.4 (97.7)% 0.1% 4.6%
CTT 138.3 139.3 (0.7)% 9.3 9.2 1.1% 6.7% 6.7%
I&T 120.3 112.3 7.1% 19.1 18.1 5.5% 15.9% 16.1%Central - - (5.4) (6.2) 12.9%TOTAL 446.5 427.2 4.5% 35.5 37.2 (4.6)% 8.0% 8.7%
Interest (4.8) (5.8)
PBTA 30.7 31.4 (2.2)%
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Cost reduction plan being implemented
Remove complexity from matrix structure and optimise organisation
Improve supply chain efficiency and reduce operating cost
c£3m annual cost reduction by FY19; non-underlying restructuring charge in FY18 of c£4m
Close Ivanka plant in FY18 (c£1m non-underlying restructuring charge) and address other cost issues in Civil Engineering
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Working capital increase and capex resulted in higher net debt£m
111.0
(56.2)
11.0 138.4
FY 2016 TranslationFX
EBITDA beforenon-recurring items
Workingcapital
Capitalexpenditure
Tax/interestpaid
Pensionpayments
Disposals/acquisitions
Dividends/other
FY 2017
3.1 34.4
14.9 4.4
(3.8)
19.6
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Clear focus on debt reduction in FY18FY17 actual FY18 forecast
Working capital movement £19.6m outflow £10-15m inflow
Capital expenditure focus £34.4m spend £20-25m spend
Ivanka closure proceeds n/a £3-5m
Bonar Natpet n/a £(1-2)m
Restructuring costs & provisions n/a £(5-6)m
Year end net debt forecast to reduce by minimum of £15m in constant currency
Inventory will increase with seasonality: benefits will come through in H2
Debt sensitivity
Reported debt increases by c£1m for every 1 cent fall in the £/€ rate 14
Inventory inflated by slow Q4 sales, poor Civil performance, higher RM prices (c£3m)
TWC/Sales 23.6% (FY16 25.8%) Improvement in working capital
efficiency key priority going forward
Free cash flowYear ended 30 November 2017 2017
£m2016£m
Operating profit – continuing ops 35.5 34.7Depreciation / amortisation 19.6 16.6Non-cash pension charges 1.1 1.0EBITDA 56.2 52.3Working capital movements (19.6) (15.1)Other 0.7 0.6Operating cash inflow 37.3 37.8Capital expenditure (34.4) (22.2)Proceeds from disposals 7.2 21.7Cost of acquisitions (3.4) -Interest paid (4.8) (5.3)Non-underlying items (cash cost) (0.9) 0.7Pension payments (4.4) (4.6)Tax paid (10.1) (10.8)Free cash flow (13.5) 17.3
2017£m
2016£m
H&S 0.2 0.5
Replacement 2.1 1.4
Capability 3.8 3.5
Capacity 22.9 13.1
Software 5.0 2.9
Other 0.4 0.8
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Net cash flow
2017£m
2016£m
Free cash flow (13.5) 17.3Dividends (10.0) (9.2)
Dividends to minority interest (1.0) (0.3)
Proceeds from share issues 0.2 0.2
FX (3.1) (16.9)
Movement in net debt (27.4) (8.9)Net debt brought forward (111.0) (102.1)Net debt carried forward (138.4) (111.0)
Year ended 30 November 2017
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M&A/disposals update
Bonar Natpet disposal agreement signed in January
£1.4m (2016: £1.3m) provision held for potential costs
Sale of Lokeren agro-textile plant in October, net proceeds of £4.2m
Acquisition of Walflor completed in the US
Profit contribution of £0.5m on sales of £1.1m
Consideration paid £3.2m, further c£0.3m payable in H1 FY18
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Non-underlying costs relating to continuing operations
Civil Engineering value in use impairment charge (non-cash) applied to: goodwill (£19.4m) intangible assets (£0.9m) PPE (£6.6m)
Irregularities with custom duties identified at a former sales office, provision covers best estimate of liability
2017£m
2016£m
Civil Engineering impairment charge 26.9 -Ivanka site impairment charge 4.7 -Loss on sale of Agro-textile business 12.7 -Provision for custom duties 1.7 -Profit from land sale - (1.1)Pension - MUBI - 0.2
- Data cleanse 0.2 0.1Acquisition-related costs 0.5 0.1
46.7 (0.7)
Year ended 30 November 2017
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Actuarial gain on pension schemes of£9.8m
Available facilities of £215m; refinancing for RCF underway
Covenants: Interest Cover 7.9 (> 3.0) Net debt / EBITDA 2.4 (< 3.0)
Balance sheetYear ended 30 November 2017
2017£m
2016£m
Property, plant and equipment 144.5 150.3Trade working capital 105.4 103.3Prepayments and accruals (14.4) (12.5)Operating capital emp1 loyed 235.5 241.1Other working capital 6.5 1.4Intangible assets 91.7 104.8Pension deficit (2.2) (15.0)Net debt (138.4) (111.0)Net assets held for sale (1.4) (1.3)Other (11.4) (17.6)Net assets 180.3 202.4
LCY £mRCF (July 2019) €165m 145
PP (Sept 2022-2026)
€60m 53
RMB loans (June 2020)
RMB150m 17
Core funding 215
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Operational review
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Disappointing year following strong 2016
Delays to expected projects
Build up of stock and higher input costs
Lower margin on traditionally higher margin specification sales
Softer end market and increase in low cost competition
Poor demand forecasting
Operational execution
Review of options to restore profitabilityundertaken
Civil Engineering
Tunnelling Construction21
Conclusions of the first stage review:
Close the loss-making weaving plant in Slovakia (Ivanka site): announced 31 Jan 18
Combine the profitable Enkamat business with our B&I business: transitioning in Feb 18
For two business components we have concluded we need to focus on fixing first:
In NPNW this is about fixing costs and sales execution
In Construction fibres, this is about fixing technology issues and thereby cost
The second phase of the review will deal on whether to keep or sell these business longer term
The outcome will depend on what improvement self help can bring
We aim to announce our conclusions by July
Civil Engineering review
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Mix improvement with growth in Architectural sales
Fundamentally a very strong business where progress was made in resolving delivery issues..
.. however, production consistency impacted sales and margin, resulting in a slower Q4
Looking forward
Simplify organisational structure to create focus and reduce cost
Resolve production consistency issues
Simplify the product portfolio and reduce stock levels
New Global Business Director appointed
Coated Technical Textiles
Tarpaulins Stadium membrane 23
Building & Industrial High quality operation with good prospects
Constant currency revenue growth of 9.6%
Continued strong performance throughout theyear
Targeted investments were made to accelerate new business development
Good progress in all geographic areas with Walflor trading well
Completed the Lokeren (Agro-Textile) disposal
Looking forward
Continuing to grow client footprint and enhance solutions
Outlook is positive – notwithstanding continued raw material headwinds
Green roofsBuildingFiltration 24
Interiors & Transportation
Modular carpets Wall to Wall Dust control
mats
Another year of good progress for I&T with solid sales and profit growth
Changzhou plant continues to perform well
Second Colback line in Changzhou now operational, commercial production due in Q1 18
Strong Interiors performance, driven by China, offset slower growth in Transportation
Raw material price drag continued in the second half – selling prices adjusting slowly
Looking forward
Outlook remains encouraging with increased capacity to benefit the 2nd half of 2018
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Priorities for 2018Operational Excellence Resolve execution issues notably in Civil; production consistency in CTT Optimise group operating structure Focus on cash and improve working capital to reduce net debt
Commercial Execution Further strengthen B&I and I&T sales success via segment approach Continue to focus on customer intimacy Resolve sales forecasting issues in Civil
Technology Differentiation Continue innovation, co-developing with our customers and partners
Invest in sustainable growth Investments for sustainable growth in B&I and I&T to continue
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AppendixYear ended 30 November 2017
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What we do
We take polymers and convert them into yarns, fibres and coated fabrics
From these we produce a mixture of woven, non-woven and composite materials that we sell into many different end markets and applications that affect everyday life
We use our process technology and know-how to produce performance materials that provide our customers with enhanced functional value
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CivilInfrastructure projects
including road & rail building, land reclamation, waste
management, coastal defence
I&TResilient tiles
Decorative productsTransportation
Interior carpeting
CTTStadia architecture, tents,
truck tarpaulins, solar protection, industrial
covers & solutions, flexible containers, print billboards, boats
& pools
B&ISupplies building, roofing,
air & water filtration
QUALITY OF LIFE Aesthetics & design Healthier environments Better quality/safety
POPULATION GROWTH Rapid urbanisation Increased transportation
& infrastructure Clean air, water
LIMITEDRESOURCESMaterials efficiency &
durability Reuse and recycle
What Drives Our Markets?
TRANSFORMATIVE TECHNOLOGIES High strength, low weights Internet of Things/Smart
fabrics
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Our applications in everyday life
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Building & Industrial
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Business model based on strong market research, customer intimacy and alignment with global mega trends – Energy Efficiency, Health and Safety, Environment - Clean Air & Water, Sustainability.
Colback & Enkamat deliver high value-add composite solutions for several applications such as green roofs, filtration and acoustics for the building industry. Colback in particular offers superior strength, pleatability, air flow and pressure drop performance, branded colours and seamless materials.
Partnership with leading OEM and Branded Manufacturers to help them deliver more technically advanced and lower cost components and solutions to their markets.
The acquisition of Walflor established a west coast manufacturing and distribution base to allow for more effective and efficient access to the growing western USA and Canadian markets, particularly in acoustics, drainage, and green roofing. It also strengthened the business unit’s competitive position in this region by providing improved service to major acoustics customers.
Looking ahead:
We benefit from diversity of markets and applications
High quality differentiated products sold by focused teams
Success with core customers and in core markets enabling business to reinvest to expand in new markets and geographies, where there is significant potential for growth (organic and inorganic).
Global success story: Building & Industrial Significant competitive advantage
Market backdrop
Energy consumption and sustainability, urbanisation & health awareness are global trends. Morestringent regulations driving highest quality standards and higher specifications.
Our customers’ customers are demanding higher end products. Benefits from global expansion into new markets such as Korea and China and, new applications
such as wall cladding.
Superior in-house
technology
Colback provides superior qualities such as high tensile strength, thermal stability(less shrinkage on roof and scrim glass reinforcement), open structure (enablinghigh, quickly modified bitumen saturation & adhesion) thermal binding (no chemicalfumes) and high tear and nail holding strength.
Benefits
Colback has proven its value by enabling penetration of coatedmembrane markets where Colback is used as a value addedreinforcement material.
It is preferred by producers because its easy processability results inhigher efficiency; less down-time; better end products and productioncost savings. For contractors it’s easier to use with faster installation,better roofing work and fewer claims.
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Case study Industrial: Filter Media, China Significant competitive advantage
Market backdrop
China very fast growing market for air and liquid filter media driven by global trends such as mobility,urbanization & health awareness. More stringent standards drive need for high quality filters and highefficiency media.
Filtration market in China is foreseen to grow at 7% CAGR in the coming years; L&B has about 2% and20% market share in support layers for cabin air and room air purifier filters in China and EU respectively.
Many EU and US filter manufacturers have operations in China, want to source filter media locally.
Superior in-house
technology
Colback technology has proven its value as support layer for interior filters in automotiveand clean air systems in residential and commercial buildings.
Moving to manufacturing of filter media will create a unique and superior portfolio ofproducts serving the key segments in air and liquid filtration with design flexibility forfuture demands.
Strategic approach
Benefits Colback-based filter media’s reduced pressure drop and
increased dirt holding capacity addresses need for lowerenergy consumption and longer filter life.
Local for Local: Short lead times, better serving our customers. Cost efficiency through the value chain.
£0.5m investment in filtration lab and testing capabilities in April 2017to support development of special filtration media.
£5m investment for high efficiency filter media in China plant. Targetlaunch Q2 2019.
This capability could enable market share growth in China to 10% in 5years.
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The Civil Engineering GBU provides products and solutions to major infrastructure projectsfor soil and concrete improvement including erosion control, filtration, protection, drainage,separation and reinforcement. Our products are sold into applications such as road, rail,building, land reclamation, waste management, coastal defence, mining and tunnelling.
The GBU draws on several technology categories from non-woven, woven, composites,geo-grids to construction fibres
Civil Engineering
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Sharp price increase in most polymers in H1, pricing largely sustained through H2
Pass-through slower in CE
Net pricing drag in 2017 of £3.5m (CE £2.4m)
Continuing tomanage pricingimpact
Polymer prices – 2 yearsYear ended 30 November 2017
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Spot rates
Rates FY 17average
Jan 18 spot
Euro 1.14 1.13USD 1.28 1.39CZK 30.26 28.79RMB 8.69 8.92
FX impactYear ended 30 November 2017
Translation impact vs Jan 18 spot rates
£m0.1
(1.0)0.1
(0.1)(0.9)
In broad terms, a 1 cent movement equates to c£90k ($) and c£120k (€) change in reported £ profits on full year basis
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Location of customer
Loca
tion
of s
ellin
gen
tity UK Europe N America Middle
EastAsia / ROW
Total
UK 3% 1% - - - 4%
Europe 2% 57% - 3% 5% 67%
N America - - 21% - - 21%
MiddleEast - - - 1% - 1%
Asia / ROW - - 1% - 6% 7%
Total 5% 58% 22% 4% 11% 100%
Geographic Sales – naturally hedgedYear ended 30 November 2017
5% of sales in UK (2% imported from Europe)
Most regions naturally hedged
Financial covenants based on average FX rates, currency borrowings matched with currency earnings
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UK scheme gain caused by a higher than expected asset returns and shorter assumed life expectancies.
Triennial actuarial valuation due to complete by 30 June 2018
Net overseas deficit: US £3.4m; Germany£8.9m; Others net £nil
Six schemes; all closed except one German and one Belgian scheme
DB Pension schemesYear ended 30 November 2017
UK£m
Overseas£m
Total£m
Liabilities (183.4) (23.2) (206.6)Assets 193.3 10.9 204.2Net deficit 9.9 (12.3) (2.4)Movement in year:
Actuarial gain 8.9 0.9 9.8Net interest - (0.2) (0.2)Current service cost - (0.4) (0.4)Contributions 4.1 0.2 4.3Administration costs (0.7) - (0.7)FX - (0.2) (0.2)
Net change 12.3 0.3 12.6
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Discontinued OperationsYear ended 30 November 2017
Non-underlying loss on disposal 2017£m
2016£m
Grass Yarns loss 0.9 3.3Adjustment to Bonar Natpet exit cost provision 0.3 1.3Tax credit on Grass Yarns loss (0.2) (0.9)
1.0 3.7
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Pre-disposal trading profit 2017£m
2016£m
Pre-disposal profit from Grass Yarns business - (0.6)Tax on pre-disposal Grass Yarns profit - 0.1
- (0.5)
Total 2017£m
2016£m
Loss for the year from discontinued operations 1.0 3.2
Ivanka site impairment chargeYear ended 30 November 2017
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Book value
£m
Impairment charge
£m
Recoverableamount
£m
PPE 7.4 (3.4) 4.0Intangible assets 0.3 (0.3) -Inventories 2.8 (1.0) 1.8Total FY17 charge 10.5 (4.7) 5.8Closure costs (FY18) (1.0)Recoverable amount 4.8
Manufacturing site in Ivanka pri Nitre, Slovakia acquired in September 2013 for £16m.
Manufactures PE and PP woven reinforcement fabrics.
PE market commoditising and low margin, site loss making and unlikely to improve in foreseeable future.
Site closure announced January 2018, expected to conclude during 2018.
Usable looms transferred to China, remaining property, plant and equipment written down to market value and will be sold.
Non-underlying impairment charge of £4.7m in FY17, further £1m expected in FY18.
Net cash proceeds estimated at £3-5m.
Disposal of Agro-textile business
Sale of Agro-textile business in Lokeren, Belgium announced in July 2017, completed in October 2017.
Agro-textiles formed part of B&I, FY17 at breakeven on sales of £18.4m.
Cash inflow on disposal (net of costs) of £4.2m, £3.9m received in FY17, £0.3m received in December 2017.
Non-underlying loss on disposal of £12.7m before tax, £8.4m after tax.
Year ended 30 November 2017
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2017
£m
2017 H1 estimate
£mTotal consideration 6.1 6.1Paid on completion 5.8Received December 2017 0.3
FV of assets transferred:PPE (6.5) (6.6)Intangible assets (0.4) (0.4)Inventory (10.3) (9.6)Transaction costs (1.6) (1.0)Loss before tax (12.7) (11.5)Tax credit on disposal 4.3 1.5
Loss on disposal (8.4) (10.0)
Return on capital employed
2017£m
2016£m
YoY%
Net assets 180.3 202.4 (10.9)Net debt 138.4 111.0 24.7Capital employed 318.7 313.4 1.7Operating profit before NUI 35.5 34.7 2.3ROCE 11.1% 11.1% -
Year ended 30 November 2017
Target is 12%; ROCE impacted by higher than usual stock build and net debtCapital employed excludes goodwill written off to reserves
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NCI relates to 40% minority stake in Yihua Bonar
Dilution relates to outstanding shareoptions
Earnings per share – continuing operationsYear ended 30 November 2017
2017£m
2017£m
YoY%
YoY CER
Underlying PBTA 30.7 29.2 +5.1% -2.2%Tax (8.9) (8.8) +2.3% -6.3%PAT 21.8 20.4 +6.9% -0.5%NCI (0.6) (0.6) - -Earnings 21.2 19.8 +7.1% -0.5%
Tax Rate 29.0% 30.4% (140)bps
Number of shares:- Basic 329.4 329.0 +0.2%- Dilutive 5.6 3.3 (46.8%)
Underlying EPS- Basic 6.42 6.01 +6.8% -0.8%- Diluted 6.32 5.95 +6.2% -1.5%
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Tax rate reconciliation
Profit mix driven by lower proportion of US profits
US tax rate reductions will reduce rate further from 1 January 2018
Ongoing reduction in effective Group rate of c1%
One-off non-cash benefit of c£1.4m
2017%
2016%
Prior year underlying rate 33.2 28.9Profit mix effect (2.1) 4.3Current year underlying rate
31.1 33.2
Innovation box (1.8) (1.9)Effective rate 29.3 31.3Prior year adjustments (0.3) (0.9)Reported rate 29.0 30.4
Year ended 30 November 2017
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8090
100110120130140150160
Net debt
Net debt and gearing
Gearing
Gearing Covenant
Net debt (£m)
Net debt at constant currency
1
1.5
2
2.5
3
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Financial Calendar
Q1 update and AGM 13 April 2018
Interims - half year results 11 July 2018
Q3 update 26 September 2018
Prelims – full year results 30 January 2019
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Four Global Business Units
Building & Industrial Civil Engineering
Coated Technical Textiles Interiors & Transportation
Building & Industrial
19%
Civil Engineering
23%
Coated Technical Textiles
31%
Interiors & Transportation
27%
With our leading proprietary technologies, we design and manufacture a wide range of polymer products which add value to, and improve the performance of, our customers’ products.
Revenue split
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Proprietary technology capabilitiesBuilding & Industrial
Civil Engineering
Coated Technical Textiles
Interiors & Transportation
Overview Produce and supply high-quality non-wovens, woven, three-dimensional polymeric mats and composites
Produce and supply high-quality non-wovens, woven, grids, knitted fabrics, 3D polymeric mats, construction fibres and composites
Supply a range of technical coated fabrics with aesthetic & design capabilities and performance & protection properties
Produce and supply clients with a unique, non-woven technical fleece fabric for the manufacture of premium flooring, carpeting& automotive products
Brands BonarBuilt, BonarPure, Xeroflor
Adfil, EnkaSolutions Mehgies Colback
Markets Building & Roofing products and Industrial applications (e.g air and water filtration)
Geosynthetics and Construction Fibres
Building products (e.g. architecture and tent applications), Sport & Leisure markets, Transport and Industrial applications
Interiors (e.g carpet tiles and mats), Transportation (e.g. moulded car carpets)
Locations Netherlands, Germany, USA and China
Netherlands, Belgium, Germany, Hungary, Slovakia, USA and China
Germany and Czech Republic, plus distribution companies across 11 countries
Netherlands, USA andChina
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Financial position(£m) 2013 2014 2015 2016 2017
Group Revenue 403.1 410.6 395.8 400.0 446.5
Building & Industrial 63.0 62.7 61.7 73.4 86.0
Civil Engineering 93.4 94.6 85.4 90.8 102.0
Coated Technical Textiles 124.7 128.2 120.4 129.8 138.2
Interiors & Transport 89.2 88.9 90.0 106.0 120.3
Underlying EBITA 31.4 31.7 32.8 34.7 35.5
Operating Margin (%) 7.8% 7.7% 8.3% 8.7% 8.0%
Underlying PBTA 25.3 25.2 26.6 29.2 30.7
Free cash flow 10.4 1.1 (10.6) 17.3 (13.5)
ROCE (%) 11.2% 11.4% 12.0% 11.1% 11.1%
Underlying earnings per share (p) 5.98p 5.46p 5.61p 6.01p 6.42p
Dividend per share (p) 2.60p 2.70p 2.78p 3.00p 3.05p
Net Debt/EBITDA 1.9x 1.9x 2.2x 2.0x 2.4x49
FY18 planning assumptions
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FY17 actual
FY18 forecast FY18 notes
Effective tax rate on underlying PBTA 29% 26%
Impact of US Tax Cuts & Jobs Act reducing US Federal Corporate Income Tax rate from 35% to 21%- Ongoing reduction in Group effective rate of c3%
and an one-off FY18 non-cash benefit of c£1.4m
Working capital £19.6m cash outflow
£10-15mcash inflow Targeted inventory reduction
Capital expenditure £34.4m £20-25m Bonar Changzhou completed Q1 FY18
Cash spend on restructuring costs and provisions
£nil c£5-6m Annualised savings of c£3m by FY19
Acquisitions/ disposals Net £3.8m inflow
Net £1.6-3.6m inflow
Disposals:Ivanka proceeds £3-5mAgro-textile proceeds £0.3mBonar Natpet related cost c£(1.4)mAcquisitions:Walflor deferred consideration c£(0.3)m
The material in this presentation has been prepared by Low & Bonar PLC (“the Company”) and is general background information about the Company`s activities current as atthe date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financialinformation, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or otherfinancial products or instruments. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations withrespect to the Company`s businesses and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and riskmanagement practices. Readers are cautioned not to place undue reliance on these forward looking statements. The Company does not undertake any obligation to publiclyrelease the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipatedevents. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts andhypothetical examples are subject to uncertainty and contingencies outside the Company`s control. Past performance is not a reliable indication of future performance.
Low & Bonar PLC, One Connaught Place, London W2 2ET, United Kingdom Tel:: +44 207 535 3180
Disclaimer