Preliminary Results 2014/ March 2015

Transcription

1 Preliminary Results 2014/15 19 March 2015

2 Agenda Highlights Financial & business review Laurence Bain Mark Whiteling Strategy update & outlook Q&A Laurence Bain All 2

3 Transforming Premier Farnell 1. Strategic vision: Build the global destination for electronics 2. Global organisation: Become one global element14 team 3. Optimising performance: Focus on gross margin s & operating costs

4 2014/15 Financial highlights 1 Sales growth momentum, notably in core element14 business Adjusted operating profit flat Gross margin s grew 1.4% SG&A down 40bps as % of sales Earnings growth impacted by foreign exchange Full year dividend maintained at 10.4p per share 4

5 2014/15 Strategic highlights Proposed plans completed for new global element14 structure New web platform live globally Development kit sales growth of over 20% Built a small volume production proposition Over 90 projects completed by Embest & AVID 5

6 Financial highlights m FY 2014/15 FY 2013/14 Growth % 1 Revenue % Gross profit % Adjusted operating profit % Adjusting items (4.9) (1.5) Total operating profit % Adjusted profit before tax % Total profit before tax % Adjusted EPS 13.8p 14.3p -3.5% Basic EPS 12.9p 14.0p -7.9% 6

7 Cash flow m H2 2014/15 H2 2013/14 FY 2014/15 FY 2013/14 Adjusted operating profit Depreciation and amortisation Additional pension scheme funding (2.0) (0.9) (3.9) (2.6) Other non-cash items (0.3) Working capital (0.7) (1.4) (15.1) (23.7) Adjusted cash generated from continuing operations Adjusted operating cash flow conversion 111.5% 115.6% 97.5% 93.1% Net capital expenditure (10.6) (9.6) (20.7) (17.5) Interest and preference dividends (6.4) (6.5) (12.5) (15.5) Tax (9.0) (8.7) (17.4) (17.5) Adjusted free cash flow Adjusted free cash flow % to revenue 4.5% 5.9% 3.7% 3.7% 7

8 Net debt m 2014/ /14 EBITDA (before adjusting items) Net debt (including preference shares) Net debt: EBITDA Maturity profile of loans (including preference shares) Due within 1 year Between 1 and 2 years Between 2 and 5 years After 5 years

9 Divisional performance Sales growth ROS% Change Adj. operating profit growth Europe & 4.2% 13.1% -70 bps 0.7% Asia Pacific Americas 1.1% 5.9% +20 bps 4.3% CPC & MCM 7.9% 10.0% -100 bps -3.3% Akron Brass 1.3% 18.6% Unch 1.5% Group 3.3% 9.2% -40 bps -0.1% All divisions delivered sales per day growth in 2014/15 Europe & APAC, Americas and Akron Brass all grew operating profit Head office costs up by 1m, reflecting investment in global programmes and increased levels of global working. 9

10 Trading trends Including Raspberry Pi Excluding Raspberry Pi Q3 14/15 Q4 14/15 Q3 14/15 Q4 14/15 element14 Europe 1.0% 4.6% 1.6% 6.1% APAC 13.6% 13.6% 13.1% 13.5% Americas 1.8% 0.8% 3.9% 2.1% 2.5% 3.8% 3.7% 5.0% CPC & MCM 9.2% 9.0% 5.6% 4.4% Akron Brass -5.8% -1.9% -5.8% -1.9% Group 2.7% 4.0% 3.1% 4.4% 10

11 Gross margin 38.0% 37.5% 0.2% 37.0% 36.5% 0.2% 0.5% 0.2% 37.5% 36.0% 36.8% 35.5% 35.0% FY 2014/15 Customer mix Product mix Geographic mix Price positioning FX FY 2015/16 11

12 Building the global electronics destination We are focused on three high-level customer segments: Components manufacturers Design services of development boards Supporting launch of new technologies Engineering customers Time critical distribution of electronic components, tools and equipment Software: an increasingly important product Manufacturing customers Scheduled distribution of electronic components for small volume production 12

13 Strategic priorities Objective Strategic priority KPI 2014/15 Become the recognised technology experts of design services and new product introduction for global components manufacturers 6% sales growth 3.3% Growth Build and leverage technical expertise to attract engineering customers at the cutting edge of technology 4% ACB growth 2.1% Grow our business with engineering and manufacturing customer base, especially in the emerging markets 10% emerging markets growth 13.1% Efficiency Evolve our operating model into a more efficient and effective global, function based structure Develop attractive ecommerce channels that enable automation of processes >30% RONA 70% ecommerce 29.6% 49.3% Profitability Optimise our business through effective management of gross margin and costs 10% 12% ROS% 9.2% Cash Optimise use of cash in the business and distribution of funds to shareholders through the cycle 6% FCF to sales 3.7% 13

14 We are building a better Premier Farnell

15 Executing our strategy for engineering customers in 2014/15: Rolled out new web platform Development kits up >20% Launched element14 Design Center Launched Raspberry Pi2

16 Executing our strategy for manufacturing customers in 2014/15: Built a competitive small volume production proposition: - inventory - packaging options - date & lot traceability -pricing

17 Executing our strategy for component manufacturers in 2014/15: Acquired & integrated AVID Expanded customer base to 20 semiconductor manufacturers 3x more sales in H2 than H2 2013/14 Significant opportunity pipeline

18 Executing our strategy in 2015/16: Key initiatives and who benefits Engineering customers Manufacturing customers Component manufacturers Design Center phase 2: Software store Leverage new technology launch opportunities Globalise element14 business Raspberry Pi 2 launch Web: mobile experience upgrade Web: production proposition Web user and search enhancements

19 Summary & outlook 2014/15 was a year of transition Continue to drive strategic priorities with intense focus on costs and transformation We will deliver enhanced financial performance Expectations for 2015/16 are unchanged 19

20 Q&A

21 Notes 1. Throughout this presentation, in order to reflect underlying business performance, sales growth is based on sales per day for continuing businesses at constant exchange rates and for like periods, and growth in gross profit, costs and operating profit is calculated at constant exchange rates, unless otherwise stated. 2. Current year adjusted operating profit, profit before tax, and earnings per share in the table above exclude restructuring costs of 5.1m, acquisition costs of 0.1m related to the purchase of AVID Technologies and net gain on US property disposal of 0.3m. In the prior year, adjusted operating profit, profit before tax, and earnings per share excluded restructuring costs of 3.9m, a net gain on US property disposal of 1.6m and a gain on the re measurement of the fair value of contingent consideration of 0.8m. 3. Free cash flow comprises total cash generated from operations, excluding cash flows related to adjusting items, less net capital expenditure, interest, preference dividends and tax payments. 21