Laird PLC. Investor presentation October 2012

Transcription

1 Laird PLC Investor presentation October 2012

2 Q3 2012: IMS Revenue up 10% YOY in Q3; up 2% on organic basis Following pick-up in revenue in Q2 over Q1, have seen a further increase in revenue in Q3 Month of September has shown double digit growth year-on-year Year-to-date, revenue up 3% YOY; 2% lower on organic basis Operating margin has improved Planned capacity expansion now on stream Internal expectations for the full year are unchanged Markets: Demand for smartphones remains strong Telecoms market remains subdued Robust demand from automotive in N America Public safety market remained strong Industrial and transportation customers remain cautious 2

3 Sequential improvement in revenue throughout the year % % Continued innovation Q1 Q2 Q3 3

4 Existing MARKET New Growth responsibilities Company Roles & Responsibility Market Development New segments to Laird New geographies to Laird Adjacent segments Cross Business Unit Division enables BU and Company and Cross-BU interaction Mergers & Acquisitions New Laird business New geographic expansion Business Unit strategic Business Unit Customer and product focused growth Technology Development Organic business development New Business Unit products Business Unit Roles & Responsibility Existing PRODUCT New 4

5 Laird Strategic Differentiation Customer Mindshare RELIABLE FULFILMENT SPEED INNOVATION 5

6 Our Business

7 Performance Materials Division Overview Performance Material products: EMI: board level shields, fabric over foam, fingerstock, conductive elastomers Thermal: thermal interface materials, thermoelectric assemblies Signal integrity: ferrite cable cores, chip inductors Growth drivers: Increased electronic content in devices requiring more EMI and Thermal Green markets e.g. electric vehicles, LED market, rechargeable lithium batteries More complex heat and EMI management required as devices get smaller, faster and more powerful Key Characteristics: Critical for efficient performance of electronic devices Materials, components, sub-systems and systems Specified with OEMs Invisible to the end-market user Our businesses: Well established across Asia, the US and Europe Strong customer relations sometimes supplying next generation products on sequential programmes Leading positions in EMI and Thermal Short life cycles Developed with Corporate Research Laboratory 7

8 Performance Materials Division Performance Good demand for smartphones and tablets throughout 2012 New product launches expected in Q4 in the IT/consumer market Telecoms market remains subdued 8 8

9 Performance Materials has benefitted from strength in certain key markets BY PRODUCT SEGMENT * 24% 9% 67% EMI Thermal Signal Integrity EMI Shielding Supplying the IT, telecoms, consumer, automotive and military sectors H REVENUE 152.2m BY MARKET SEGMENT * Thermal Solutions Supplying the IT, telecoms, automotive, consumer, medical & military sectors IT/Datacom 34% 41% Handset Signal Integrity 6% 19% Consumer Other Supplying the IT, consumer & automotive sectors * excluding Handset Antennae and Mechanisms 9

10 Wireless Systems Division Overview Wireless Systems products: Telematics/M2M : antennae systems and M2M modules and solutions Wireless Automation and Control Solutions: remote control systems Infrastructure Antennae: wireless (WLAN), RFID Key Characteristics: Components or comprehensive solutions Solutions sold direct to OEM, end users or distribution Long life cycles Enable connectivity for wired, wireless and remote control systems Developed within businesses, with service and aftermarket support Growth drivers: Proliferation of connectivity and requirement for wireless infrastructure. Increasing bandwidth Green markets e.g. Smart meters Increased connectivity and data transmission for information flows Customers requiring more value add in solutions and ease of use Our businesses: Leading presence across North America and growing presence in Asia and Europe Increasing abilities to produce combined software and hardware systems, offering two-way information flows and manipulation Leading positions in Telematics/M2M and Wireless remote control and Antennae systems 10

11 Wireless Systems Division Performance Strong demand from North American automotive market for our telematics products and solutions Public safety market remains buoyant with customers requiring our portable radio Ongoing demand for our wireless connectivity solutions Some caution still seen from Industrial and Transportation customers 11

12 Continued growth in Wireless Systems BY PRODUCT SEGMENT * Telematics & "M2M" 21% WACS 21% 58% Infrastructure & other antennae Telematics / M2M Supplying the automotive, infrastructure & retail sectors H REVENUE 97.4m Wireless Automation & Control Solutions BY MARKET SEGMENT * Supplying the rail, industrial & mining sectors 15% 30% 6% Automotive Industrial 49% IT/Datacom Other Infrastructure Antennae Supplying the infrastructure, municipal, telecoms/data & security sectors * excluding Handset Antennae and Mechanisms 12

13 Growing the business

14 Well positioned for the proliferation of connected devices Planned new product introductions Market improvements expected in near-term Strong customer base Good improvement in margins Ongoing innovation Well positioned in structural growth markets Capacity expansion in place 14

15 Appendix

16 Our markets BY MARKET SEGMENT* (%) BY PRODUCT SEGMENT* (%) 10% 5% 8% 6% 12% 30% 8% 41% 14% 21% 22% 23% IT / Datacom Transportation EMI Shielding Telematics / Wireless Modules Industrial/Medical/Military Handsets Thermal Wireless & Automation Controls Other Consumer Other Antennae Signal Integrity Based on H revenue of 249.6m * excluding Handset Antennae and Mechanisms 16

17 I N D E X Margin trajectory model Economies of scale from organic revenue growth Rev 100 IO 26 PBIT 12 Rev 133 IO 31 PBIT % RoS 15.0% ASSUMPTIONS No change in product mix 70% of costs variable, 30% fixed Variable moves with revenue, fixed with inflation MODEL OUTPUT Profit drop through 25% on incremental revenue Revenue growth >30%; PBIT growth >60% REV: Revenue IO: Indirect overheads PBIT: Profit before interest & tax 17

18 Margin performance and results translated in US$m Performance Materials & Wireless Systems Half Year to 30 June 2012 US$m Half Year to 30 June 2011 US$m Revenue Cost of sales (240.7) (244.4) Gross margin 38.8% % SG&A (80.9) (80.2) Gross R&D (26.8) (24.9) Net capitalised development Operating profit 12.4% % 46.1 before exceptionals, amortisation of acquired intangibles, gain or loss on disposal of businesses, deferred tax on acquired intangible assets and goodwill, fair valuing of financial instruments and acquisition transaction costs 18

19 Cash Flow m Half Year to 30 June Full Year Operating cash flow Finance costs (3.6) (3.3) (7.0) Tax (5.6) (5.9) (9.5) Trading cash flow Dividends (14.1) (11.2) (18.4) Acquisitions / disposals (31.1) (20.8) (21.0) Exceptionals (8.7) (6.6) (22.6) Other (17.1) (21.6) (15.8) Exchange on cash and borrowings (0.3) Increase in net borrowings (17.4) (19.1) (14.1) 19

20 Balance Sheet m 30 June 31 December Shareholders equity Net borrowings Capital employed Interest cover (covenant basis) Net borrowings / EBITDA Healthy financial position minimum of 3.0 times required by Group s loan facilities maximum of 3.5 times required by Group s loan facilities 20