Scapa Group plc. Investor presentation October 2014

Transcription

1 Scapa Group plc Investor presentation October 2014

2 Scapa Group

3 Market Segments Becoming contract manufacturer of choice Current trend in Healthcare to outsource B2B partnership strategy Turn-Key solutions capabilities Rapid speed to market Broad technology portfolio Vertical integration and strong manufacturing know-how Single supplier, dual source Trusted quality Focused on Automotive, Cable, Retail and Distribution Focused on sectors with critical mass and leverageable position Address greater share of customer spend by offering solutions not just stand-alone products Position as trusted supply chain partner Customer orientated strategy Start up Asia based strategy Focus and targeted approach Position as credible alternative supplier Acquisitions being targeted Need critical mass

4 Business Breakdown Electronics 5% Electronics -1% Asia 6% Industrial 64% Healthcare 31% Industrial 44% Healthcare 57% North America 49% Europe 45% Revenue Profit Geography

5 5 Year Financial Performance Revenue m Trading Profit m PBT m Share Price

6 Share Price Performance Oct-09 Oct-09 Nov-09 Dec-09 Dec-09 Jan-10 Feb-10 Mar-10 Mar-10 Jan-10 Apr-10 May-10 Jun-10 Jun-10 Apr-10 Jul-10 Jul-10 Aug-10 Sep-10 Sep-10 Oct-10 Oct-10 Nov-10 Dec-10 Dec-10 Jan-11 Feb-11 Mar-11 Mar-11 Jan-11 Apr-11 May-11 Jun-11 Jun-11 Jul-11 Apr-11 Aug-11 Sep-11 Sep-11 Jul-11 Jul 11 Oct-11 Oct-11 Nov-11 Dec-11 Dec-11 Jan-12 Feb-12 Mar-12 Mar-12 Apr-12 Jan-12 Apr-12 May-12 Jun-12 Jun-12 Jul-12 Aug-12 Sep-12 Sep-12 Jul-12 Oct-12 Oct-12 Nov-12 Dec-12 Dec-12 Jan-13 Feb-13 Mar-13 Mar-13 Apr-13 Jan-13 May-13 Jun-13 Jun-13 Jul-13 SCAPA GROUP FTSE 100 FTSE 250 Apr 12 Apr-13 Aug-13 Sep-13 Sep-13 Jul-13 Oct-13 Oct-13 Nov-13 Dec-13 Dec-13 Jan-14 FTSE AIM ALL-SHARE FTSE ALL SHARE FTSE UK TECHNOLOGY Feb-14 Mar-14 Mar-14 Apr-14 Jan-14 May-14 Jun-14 Jun-14 Jul-14 Apr-14 Aug-14 Sep-14 Sep-14 Oct-14 Jul-14 Jul 14

7 Adhesive Landscape The adhesive space is dominated by a few large companies and multiple small companies with Scapa occupying a unique position of being mid-sized, independent and public Select Adhesive Companies Revenue (Last Reported Fiscal Year) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Scapa Group plc Lohmann GmbH ITW (Stockvis) Chase Corp. American Biltrite (Tape Division) Adhesive Research Plasto Technologies Adchem Collano Adhesives AG Coveris Advanced Coatings Advanced Medical Solutions (OEM) Powerband Industries Walco Corporation TapeMark Tape-O Corporation Brite-Line Technologies Smith & Nephew (Gilberdyke) Norgeplaster Loypos Hönle (Adhesives) First Water

8 HEALTHCARE Market Review Diversified Business Portfolio INDUSTRIAL ELECTRONICS

9 Healthcare

10 Healthcare Growth FY12 4% 1.4m FY14 2% 1.5m 45% 17.8m 23% 9.2m 31.5% 21.6m 28% 11.1m 30% 21.0m 36.5% 25.1m Total revenue 39.5m Total revenue 69.2m Medical Devices Consumer Wellness Advanced Wound Care Transdermal / Drug Delivery Calculated at current exchange rates Excludes Asia

11 Skin Friendly Turn-Key Solutions Logistics & Service Sterilization Services Printing & Packaging Converting & Assembly Coating Design & Project Management Scapa Soft-Pro Skin Friendly Adhesives Bioflex Performance Materials / Film Extrusion

12 Strategic Building Blocks Advanced Wound Care Consumer Wellness Medical Devices Trans-dermal Drug Delivery Move Up the Value Chain Promote value proposition Business Development / Acquisitions to fill gaps Improve Strategic Account Management Innovation Operational Efficiency Margin Improvement Highly skilled and dedicated Healthcare sales team C Suite sales Antimicrobials Actives MEDIFIX mobile device fixation platform Fanatically reduce COGS Continuous profit improvement World Class HC Quality System One Global Healthcare QMS (SAP QMS Software validation) Global cgmp compliance plan Skin Friendly Turn-Key Solutions

13 New Product Development Portfolio Map Combination products drive growth Portfolio Initiatives SILICONE PLATFORM POLYURETHANE PLATFORM ACRYLIC PLATFORM High tack variants Antimicrobials Actives High tack variants Antimicrobials Actives Actives Anti-fungal MEDIFIX Extended Wear Consumer AWC Consumer Med Device AWC Consumer Consumer Consumer Consumer Med Device Consumer Consumer Consumer AWC Med Device AWC AWC Drug Delivery Drug Delivery MARKETS Capability Enhancement on-going Substrate Evaluation on-going Deliver Sustainable Profitable Growth

14 Home Health Revolution Wearable technology sectors Wearable Technology Sectors Relevant Wearable Technology Sectors Emerging market with large growth potential Medical Wellness Sport/ Fitness Broad appeal across markets Growth driven by monitoring and treatment of chronic conditions Vital Signs Monitoring Chronic Disease Management Physiological Monitoring Weight/ Energy Monitoring Sports Performance Fitness Monitoring Consumers taking more responsibility for own health Pharmaceutical/ Drug Delivery Posture Correction Heating/ Cooling Deliver Sustainable Profitable Growth

15 MEDIFIX Solutions Wearable Medical Device Fixation Stand alone e.g. Glucose, cardiac or oxygen monitor, athlete training device Electrical Lead e.g. EKG monitor, pulse oximetry MEDIFIX Solutions Enabling devices that live with you Works across multiple technologies Scapa Healthcare is the interface between the technology and the person. Drug delivery e.g. Insulin pump Scapa Healthcare understands the diversity of the user base and designs to incorporate their needs. Complex materials and adhesive designs for simple solutions, compatible with all wearable fixation constructions Aligns with the Healthcare value proposition and vertical integration Identifies unique users Showcases Scapa s expertise and capabilities in a new explosive market Opens new client base Design considerations guide success Deliver Sustainable Profitable Growth Ease of Use Comfort Activity Wear-Time Safety

16 Industrial

17 Industrial Revenue Total revenue FY m Gen. Ind. 20.0m Auto 22.9m Distribution 54.4m Retail 30.5m Cable 17.9m Europe 92.3m North America 53.4m Segment Geography

18 Segment Focus and Strategy Retail Leverage strong brands and distribution networks Expand additional POS across geography and categories Expand the product range beyond core tapes to adjacent items to increase our shelf space Broaden and exploit our digital strategy Automotive Focus on wiring harness, protection, assemblies and seat heating Maximise our current market and design position at 20 OEMs including Peugeot, GM, Audi, Chrysler and VW. Focus on product development aligned with fast changing design requirements Focus on strategic solutions selling through a dedicated global organisation aligned with our customers footprints. Distribution Address broad and fragmented market across many markets and applications Focus on areas where we have critical mass and competitive positioning Maximise profitability through product portfolio management and operational efficiency Multi-tiered engagement model to increase our services level Leverage inside sales and digital strategy to lower cost to serve Cable Focus on submarine, high voltage and fibre optics segments of the market which requires high reliability and carries significant cost of failure Leverage strong reputation and market position in a very niche and concentrated customer base and competitive landscape Leverage global footprint to service global supply chain Focus on strategic solution selling through dedicated global organisation Broaden product and service offerings to offer one stop solution

19 Industrial Focus Clear focus and strategy Organisation and resources re-aligned to the new focus areas and strategy Strategic engagement with key customers across their global footprint is yielding immediate return Developing a solid pipeline of new opportunities

20 Acquisition Strategy

21 Roadmap Considerations Any acquisition should be accretive, diversify the service offering, allow Scapa to build high barriers to entry and leverage the global infrastructure. Healthcare Industrials Electronics Focus Consolidate converting landscape Highly fragmented, dominated by family-owned small businesses Opportunities for back-office synergies Expand Advanced Wound Care and Consumer Wellness customer base Expand capabilities Adhesive technology (e.g. medical grade hot melt, UV) Materials (e.g. hydrocolloids, oral soluble film, electrodes, implantable polymers) Expertise (welding (RF, impulse, thermal, ultrasonic), injection moulding, Rx/DEA controlled substance handling) Consolidate coating and converting landscape Assets tend to be larger and sit within larger companies Opportunity for back-office and manufacturing synergies Expand product offerings (e.g. surface protection, foams) Innovative technologies with high barriers to entry Gain scale Opportunities pre-dominantly in Asia OEMs increasingly focused on healthcare, particularly mobile monitoring devices Objective Diversify customer base Further penetrate chosen healthcare segments Offer turn-key solutions across all healthcare segments (e.g. medical device assembly, trans-dermal) Increase importance to customers Increase footprint efficiency Improve operating profit margins Diversify customer base Increase importance to customers Reduce sensitivity to cycles Drive growth and improve margins

22 Healthcare: Landscape Scapa s healthcare segments contain diverse, addressable and fast growing markets Segment Wound Care Medical Device Consumer Wellness Drug Delivery Select Sub- Segments Traditional Advanced NPWT Ostomy Regenerative Pulse Oximetry Implantables Point of Care Diagnostics OTC Point of Care Diagnostics - Rx First Aid Respiratory Scar / Burns OTC Trans-Dermal Oral Care Foot Care Infusion Sets Rx / DEA Trans-Dermal Illustrative Customers Coloplast ConvaTec Covidien J&J KCI / Systagenix S&N Alere CareFusion J&J Masimo Medtronics St. Jude Medical Bayer GSK J&J P&G Reckitt Benckiser Unilever GSK J&J Roche Medtronics Novartis Sanofi aventis Select Components Foams Hydrogels Hydrocolloids Alginates Antimicrobials Bioabsorable polymers Cable Electronics Hydrocolloids Oral soluble films Actives Films Microneedles Key Capabilities Coating Converting Labelling Sterilisation Coating Converting Welding Injection moulding Sterilisation Coating Converting Labelling Coating Converting Labelling Sterilisation Rx / DEA World Class Bonding Solutions

23 Industrials Considerations Meaningful scope for expansion within existing segments Automotive Application Primary application today is wire harness for OEM manufacturing External usage After-market Geography Relationship with major Tier 1 suppliers Technology Water-based versus PVC Cable Building & Construction General Geography Primarily within Europe and Asia Geography Primarily in France (Retail) Channel to market Retail and distributors; limited OEMs Potential for growth but lacks scale and presence Flexographic printing Reflective Surface protection (ski tape) Sports (hockey) White goods World Class Bonding Solutions

24 Period End Update Scapa Group plc (AIM: SCPA), a global supplier of bonding materials and solutions, is today providing a period end update for the six months ended 30 September Group revenue and trading profits* have seen good growth over the same period last year, despite currency headwinds, which have reduced since our trading update on 22 July. The trading profit* margin continues to improve and the Group delivered strong operating cash flow, contributing to a healthy balance sheet. Scapa is well positioned to make further good progress this year and the Board remains confident about the Group s outlook. The Group expects to announce its interim results on 25 November *operating profits before exceptional items and amortisation