ELECTROCOMPONENTS p… · This presentation contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements,

2020 Full-year Results

Internal

ELECTROCOMPONENTS

Full-year results for

the year ended

31 March 2020

2 June 2020


Internal

SAFE HARBOUR

This presentation contains certain statements, statistics and

projections that are or may be forward-looking. The accuracy and

completeness of all such statements, including, without limitation,

statements regarding the future financial position, strategy,

projected costs, plans and objectives for the management of

future operations of Electrocomponents plc and its subsidiaries is

not warranted or guaranteed. These statements typically contain

words such as "intends", "expects", "anticipates", "estimates" and

words of similar import. By their nature, forward-looking statements

involve risk and uncertainty because they relate to events and

depend on circumstances that will occur in the future. Although

Electrocomponents plc believes that the expectations reflected in

such statements are reasonable, no assurance can be given that

such expectations will prove to be correct. There are a number of

factors, which may be beyond the control of Electrocomponents

plc, which could cause actual results and developments to differ

materially from those expressed or implied by such forward-looking

statements. Other than as required by applicable law or the

applicable rules of any exchange on which our securities may be

listed, Electrocomponents plc has no intention or obligation to

update forward-looking statements contained herein.

2

Front cover

Across the year our people have gone above and beyond ‘making amazing

happen’ – our purpose. It remains our customer-centric people and culture

that really differentiate us.


Internal

Lindsley Ruth

CEO

AGENDA

1

2

3

WELL POSITIONED TO EMERGE STRONGLY

OVERVIEW AND COVID-19 UPDATE

4

2020 PERFORMANCE

CURRENT TRADING AND PRIORITIES

3

David Egan

CFO

Lindsley Ruth

CEO


Internal


OVERVIEW AND COVID-19 UPDATE

1

Resilient business well positioned for future opportunities


Internal

OVERVIEW OF 2020

Strong performance in

uncertain marketsContinued revenue

growth and market

share gains in all

three regions

Outperformance in

industrial and RS PRO,

offsetting cyclical

decline in electronics

Adjusted(2) profit

broadly flat including

£14 million of

operating

expenditure on

strategic initiatives

Another step forward

in customer

experience, NPS(1) up

3.1%

Improved offer – RS

mobile-first

responsive website,

range expansion,

value-added

solutions

Strong progress

towards building lean

and scalable

infrastructure to

support growth plan

(1) Rolling 12-month Net Promoter Score – a measure of customer satisfaction.

(2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs,

substantial asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax.

5


Internal

We are balancing the needs of all our stakeholders as we respond to the COVID-19 crisis

RESILIENT BUSINESS IN RESPONSE TO COVID-19

Home working for all roles that can do so

New safety measures in DCs which continue to operate effectively

Setting up our facilities to allow our people to return to work safely

Providing support and wellbeing resources for our people

Not currently accessing UK government support for furloughing

employees

Ensure our people remain safe and healthy >

Providing a reliable service to customers and suppliers

All our DCs are operational and are keeping critical industries running

Committed to paying our suppliers to agreed terms

Investing further to drive a best-in-class experience for our customers

and suppliers

Continue to service our customers and suppliers >

Supporting ventilator manufacture

Launched 3D printing farms in the UK and the Americas to provide

PPE for frontline health workers

Launched ‘Kits for Kids’ to support parents educating kids at home

Supporting broader distribution industry with distributor hotline initiative

Support our communities and play our part >

6

Tactical actions to conserve cash, protect profit and strengthen

balance sheet

Accelerating action to take advantage of short-term opportunities

Commitment to longer-term Destination 2025 growth agenda

Continuing to simplify the way we operate to drive efficiencies

The Board recognises the importance of the dividend, but has

decided it is prudent to defer the final dividend decision until there is

greater clarity on the outlook

Deliver value for our shareholders >


Internal

WELL POSITIONED FOR FUTURE OPPORTUNITIES

We are seeing the benefits of investment in a differentiated and adaptable model

– Broader range & diverse customer base

– Digitally led omni-channel offer demanded by customers

– Global and flexible DC network has ensured supply chain continuity

– Value-added solutions capabilities can meet the need for efficiency & convenience

We are demonstrating that our simplified organisation is extremely responsive

– Collaborative – across function / region to focus on new areas of opportunity

– Increased agility and innovation

We have continued to gain market share, outperforming in lockdown markets

– Group revenue down 14% over the last 8 weeks

We are increasingly confident in our Destination 2025 strategy to drive sustained growth

– Strong progress on scalable infrastructure, improved offer and collaboration

– Looking at short-term opportunities to accelerate performance

7

Investment in our

business has made it

more adaptable and responsive


Internal


2020 PERFORMANCE

2

A year of good strategic and operational progress


Internal

Resilient business well positioned for future opportunities

FINANCIAL HIGHLIGHTS

Market outperformance Profitability maintained Robust balance sheet

37.0 37.7

2019 2020 Like-for-like change

Adjusted(2) EPS (p)

0.20.5

0.7

2019 2020

Net debt / adjusted(2) EBITDA (x)

(1) Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2019 converted at 2020 average exchange rates. Revenue

is also adjusted to eliminate the impact of trading days year on year.

(2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, substantial asset write-downs, one-off pension credits or costs, significant tax rate changes

and associated income tax.

> > >

44.5 43.7


Gross margin (%)

(0.8) pts

8.9

1.9 2.2

RS PRO Digital Group

Like-for-like(1) revenue growth (%)

220.3 220.7


Adjusted(2) operating profit (£m)

(0.5)%

9

(1)

(1) (1)

56.3122.4

189.8

2019 2020

Net debt (£m)

1.1%

IFRS 16 impact


Internal

SUMMARY INCOME STATEMENT

(1) Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results,

with 2019 converted at 2020 average exchange rates. Revenue is also adjusted to eliminate the impact of trading days year on year.

(2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, substantial asset write-

downs, one-off pension credits or costs, significant tax rate changes and associated income tax.

Highlights

Revenue saw a benefit from currency (£10.9 million) and extra trading days (£9.3 million)

Gross margin of 43.7%, down 0.8 percentage points due to product mix and OKdo growth

Like-for-like adjusted operating cost growth of 1.6% less than revenue growth of 2.2%

Excluding strategic investment of £14 million underlying adjusted operating costs declined

Adjusted operating profit conversion 25.8% (2019: 26.3%)

Adjusted operating profit margin fell 0.3 percentage points on a like-for-like basis to 11.3% (2019: 11.7%)

Adjusted PBT excludes £15.4 million of substantial asset write-downs, amortisation of acquired intangibles and substantial reorganisation costs

2020 adjusted effective tax rate of 21.8% (2019: 23.6%)

10

£m 2020 2019 ChangeLike-for-like(1)

change

Revenue 1,953.8 1,884.4 3.7% 2.2%

Gross margin (%) 43.7% 44.5% (0.8) pts (0.8) pts

Operating profit 205.3 201.0 2.1% 1.8%

Adjusted2 operating profit 220.7 220.3 0.2% (0.5)%

Adjusted2 operating profit margin (%) 11.3% 11.7% (0.4) pts (0.3) pts

Adjusted2 operating profit conversion (%) 25.8% 26.3% (0.5) pts (0.4) pts

Profit before tax 199.6 195.2 2.3% 1.9%

Adjusted2 profit before tax 215.0 214.5 0.2% (0.5)%

Earnings per share (p) 34.7p 33.4p 3.9% 3.6%

Adjusted2 earnings per share (p) 37.7p 37.0p 1.9% 1.1%


Internal

REGIONAL PERFORMANCE

11

Revenue (£m)Adjusted(2) operating

profit (£m)

Adjusted(2) operating

profit margin (%)Highlights

2020Like-for-

like(1)

change2020

Like-for-like(1)

change2020

Like-for-like(1)

change

EMEA 1,239.8 2.2% 197.0 2.1% 15.9 (0.1) pts

Strong performance driven almost entirely by share gains

Like-for-like revenue growth of 2.2% (H1: 5.4%; H2: (0.7)%)

Continued growth in profit driven by share gain and efficiency

Americas 515.7 2.1% 57.8 (10.2)% 11.2 (1.7) pts

Like-for-like revenue growth of 2.1% (H1: 3.4%; H2: 0.8%)

Profit impacted by lower gross margin and investment

New leadership focused on driving improved performance

Asia Pacific 198.3 2.7% 3.7 23.3% 1.9 0.4 pts

Growth improved in H2 driven by rebound in Greater China

Like-for-like revenue growth of 2.7% (H1: 1.7%; H2: 3.4%)

Significant step up in H2 profit

Central costs - - (37.8) 1.6% - -

Group 1,953.8 2.2% 220.7 (0.5)% 11.3 (0.3) pts

COVID-19 impact in March in all regions reduced Group like-for-

like revenue growth by around one percentage point

Resilient profit performance including investment in Destination

2025 strategy

(1) Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2019 converted at 2020 average exchange rates.

Revenue is also adjusted to eliminate the impact of trading days year on year.

(2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, substantial asset write-downs and one-off pension credits or costs.


Internal

CASH FLOW

Highlights £m 2020 2019

EBITDA 256.2 232.9

Add back impairments and (profit) / loss on disposal of

non-current assets0.1 2.3

Movement in working capital (51.2) (64.8)

Movement in provisions (5.3) 5.9

Other 3.4 7.9

Cash generated from operations 203.2 184.2

Net interest paid (6.2) (6.1)

Income tax paid (49.9) (50.8)

Net cash from operating activities 147.1 127.3

Net capital expenditure (74.7) (50.8)

Free cash flow 72.4 76.5

Add back cash effect of adjustments(2) 8.5 8.0

Adjusted free cash flow 80.9 84.5

(1) Adjusted operating cash flow conversion is adjusted free cash flow before income tax and net interest paid as a percentage of adjusted

operating profit.

(2) Adjusted excludes the impact of substantial reorganisation cash flows.

Free cash flow marginally lower driven

by accelerated strategic investment

We have invested in inventory

– Repositioned electronics and

launched OKdo

– Expanded RS PRO range

Inventory turn reduced to 2.6 times

(2019: 2.7 times)

Higher capex with over two thirds

focused on strategic initiatives

– DC expansion in Americas and EMEA

– New enhanced product and

content technology

Adjusted operating cash flow

conversion(1) 62.1% (2019: 64.2%)

12


Internal

ROBUST BALANCE SHEET

13

We enter this period of

uncertainty in a strong

financial position with a

cash generative

business model

Net debt on 31 March was £189.8 million (including £56.3 million of lease liabilities)

The Group’s financial metrics remain strong, with net debt to adjusted EBITDA of 0.7x and

EBITA to interest of 33.6x

This leaves significant headroom to the Group’s banking covenants of net debt to

adjusted EBITDA < 3.25 times and EBITA to interest of > 3 times

At 31 March 2020, the Group had committed debt facilities and loans (excluding lease

liabilities) of £350.0 million, of which £189.2 million was undrawn. These debt facilities

comprise of:

– £189.6 million syndicated multi-currency bank facility which has a maturity of August

2022

– £160.4 million of private placement loan notes with maturities ranging between

October 2026 and October 2031

Since the year end, to increase liquidity, the Group is securing additional contingency

funding facilities which include:

– New short-term finance facilities with the Group’s relationship banks

– Eligibility to participate in the Bank of England CCFF

These additional contingency facilities have not been included in our viability stress tests


Internal


CURRENT TRADING AND PRIORITIES

3

Driving efficiency and scalability as we continue to focus on managing our cash flow and liquidity


Internal

CURRENT TRADING

15

Summary

Group like-for-like revenue growth declined

14% over first eight weeks of year

At a Group level the rate of revenue

decline moderated slightly during May as

lockdown restrictions began to ease in

some of our key markets

We continue to focus on measures to

stabilise and improve gross margin

The drop through impact of lost revenue to

adjusted operating profit for our business is

typically in the mid-thirties, pre mitigating

actions

Like-for-like change

Northern Europe (19)%

Southern Europe (21)%

Central Europe (13)%

Emerging markets (12)%

EMEA (18)%

Americas (10)%

Asia Pacific (2)%

Group (14)%


Internal

KEY PRIORITIES – EFFICIENCY AND SCALABILITY

Short term – we will proactively manage our cost base

– Tight control of discretionary costs while protecting core business to take advantage of market opportunities

– Not currently accessing UK government support for furloughing employees

– We will ensure we take the best practice of new ways of working under COVID-19 to ensure we remain efficient and nimble

Longer term our work continues to drive a market–beating disruptive offer and a lean and scalable operating model

– During the year we made progress with our regions now aligned around a common go-to-market approach

– This aligned approach allows us to accelerate progress and remove duplication

– Ongoing simplification in operating model to allow us to move faster and drive further significant savings

16

We will proactively

manage our cost base,

while continuing to

advance our strategy to

simplify and scale

50%

20%

10%

20%People

Variable

Discretionary

Fixed

Approximate operating costs break down:


Internal

KEY PRIORITIES – LIQUIDITY AND CASH

Sufficient liquidity under demanding stress test scenarios

We have performed stress tests under a range of potential scenarios of different duration and severity – relating to COVID-19

The additional contingency facilities and CCFF have not been included in our stress test analysis

Our stress tests show that even in the event that a second wave of COVID-19 strikes during H2 of our financial year, we will continue to operate within our current banking facilities and financial covenants

We are taking actions to conserve cash and manage our liquidity

Working capital: closely monitoring receivables collection and carefully managing inventory levels

Capex: Reducing 2021 capex from the £80 million previously planned to around £60 million

Dividend: The Board believes it is prudent to defer the decision on the final dividend for the year ended 31 March 2020 until it has greater visibility. It will review making an additional interim payment related to 2020 at the half-year results in November 2020

17

We are highly focused

on managing cash

flow and liquidity


Internal


WELL POSITIONED TO EMERGE STRONGLY

4

We remain focused on growing market share


Internal

EMERGING THEMES IN A POST COVID-19 WORLD

19

Businesses

working digitallyIncreased focus on

convenience and efficiency

Supply chain continuity

even more critical

Safety in the

workplace

£1.2bn digital business Value-added solutions

Building scalable infrastructure Range expansion


Internal

WELL POSITIONED – EXECUTING UPON A CLEAR STRATEGY

We are driving a differentiated offer

– More choice – RS PRO, OKdo, range expansion, solutions capabilities

– Improving user experience – RS mobile-first responsive website to

launch H1

We are making good progress on building a scalable infrastructure

– Automation and expansion of DCs in Americas and Germany

– Global shared business services and automation strategy

– Product and content technology

Greater collaboration across our regions is enabling us to move faster

and extract benefits of scale in areas such as

– Customer segmentation

– Go-to-market approach

– Product and supplier

20

Strong progress to date

on Destination 2025


Internal

WELL POSITIONED – A LEADER IN DIGITAL

21

£1.2 billion digital business

We have invested to transform online

experience and build a strong talent pool

Digital is a unique differentiator versus our

traditional offline competitor base

Competitor 1 Competitor 2 Competitor 3

63% 18% 64% 14%

Digital as a percentage of revenue versus key listed competitors

Electrocomponents digital revenue as a percentage of Group revenue

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Our current position

Moving forward

Ongoing enhancement in experience

– Rebuilt RS mobile-first responsive website

will drive step change in EMEA / Asia

Pacific

– New digital leader driving improvement

programme in the Americas

Improve conversion

– New technologies to optimise acquisition

– Maximise returns with a focus on

customer value

Step change personalisation &

customer retention marketing

– Increase AOV and retain new customers

% o

f re

ve

nu

e


Internal

WELL POSITIONED – TARGETED RANGE EXPANSION

22


Moving forward Pivoting our offer to expand in high growth areas such as PPE, janitorial and education

Launching RS PRO kits in areas of high demand such as safety in the workplace

Collaborating across the Group to identify sourcing for in-demand products

Using Group data to identify new adjacent segments we can disrupt

Expanding Allied's range into higher margin MRO using RS's supply chain

Greater collaboration across the Group to:

– Extend supplier relationships

– Extract best practice and benefits of scale on purchasing

– Provide a more joined up approach to our strategic suppliers

Broad offer appealing to wide customer and sector spread

Strong supplier relationships

High inventory availability with over £400 million of inventory in stock across our global network

Fast growing own-brand business, RS PRO offering value and choice

Strong data and insights

Enhanced product and content capabilities

We are collaborating

across the Group,

pivoting our offer to take

advantage of new

opportunities


Internal

WELL POSITIONED – VALUE-ADDED SOLUTIONS

23

Grow Evolve Innovate

VendStockTM

ScanStockTM

ConnectPointTM

Showpad

eProcurement

Purchasing ManagerTM

RS Local branches

Laboratory services

eProcurement

Purchasing ManagerTM

Laboratory services

We have improved existing services and evolved offering – with a renewed focus on value-added solutions.

Launched in Q4 FY20

Launched in Q3 FY20

Launched 18 months ago

Launched 2 years ago

RS Plus

To be launched

FY21

Well positioned in an environment where

customers need to reduce costs and lower

total cost of ownership

Complete suite of solutions across design,

procurement, inventory management and

maintenance


Moving forward

We will move at pace to rollout our

solutions globally

Accelerating activity to develop an IESA-

like service, RS Plus for RS and Allied

customers

– Combines the strengths of IESA’s cloud-

enabled proprietary marketplace

solution, MyMRO, with RS value-added

solutions


Internal

SUMMARY

A year of good strategic and operational progress during 2020

Rapid COVID-19 response to support the needs of all stakeholders

Business model proving highly adaptable and resilient

Taking the right short-term actions to protect performance

Strong balance sheet and sufficient liquidity under range of

demanding stress tests

We are making good progress on Destination 2025

The investments we have made over the last five years position us

well to win in the current environment

Well positioned to emerge from current downturn strongly with

enhanced share

24

Well positioned to

continue to drive

sustainable growth and

superior returns for

shareholders


Internal


Q&A

5

Thank you for your continued interest in Electrocomponents


Internal


APPENDIX

6


Internal

BASIS OF PREPARATION

Unless otherwise stated:

Figures have been prepared using International Financial Reporting Standards as adopted by the European Union

Adjusted measures of profitability and cash flow exclude amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, substantial asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax

Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2019 converted at 2020 average exchange rates. Revenue is also adjusted to eliminate the impact of trading days year on year

Changes in profit, cash flow, debt and share-related measures such as earnings per share are, unless otherwise stated, at reported exchange rates

A net charge of £15.4 million (2019: £19.3 million) was reported for items excluded from adjusted profit before tax

27


Internal

FOUR KEY REASONS TO INVEST

28

1UNIQUELY POSITIONED IN ATTRACTIVE MARKET▪ Global player in large fragmented marketplace‒ Market valued at c. ￡400 billion‒ Market typically grows at GDP+‒ Top 50 players account for c. 30% of the global

market▪ Uniquely positioned to take market share‒ Global scale and distribution network‒ Customer-centric people and expertise‒ Strong supplier relationships‒ Broad range and value-added solutions

proposition‒ Leader in digital

2DRIVING MARKET SHARE GAINSWe aim to grow at greater than two times the market, driving share gains by:▪ Growing customer count‒ Become first choice; grow promoter base‒ Drive more traffic to websites‒ Increase online conversion by improving

experience▪ Selling more to existing customers‒ First choice customers spend 25% more‒ Scale range and add new product categories‒ Roll out value-added solutions proposition‒ Sell the full offer; improve sales effectiveness

3BUILDING A LEAN AND SUSTAINABLE MODEL▪ We have made good progress to date‒ Stabilising gross margin‒ Improving adjusted operating profit margin

from 6.7% in 2015 to 11.3% in 2020▪ We aim to drive sustainability and scalability and

lower our cost to serve by:‒ Simplifying our technology estate‒ Building a sustainable and scalable supply chain‒ Rolling out global shared services and

automation▪ Long-term aspiration to achieve a mid-teen

adjusted operating profit margin

4STRONG BALANCE SHEET AND ATTRACTIVE CASH FLOW▪ We have a strong balance sheet▪ Cash generative▪ We will reinvest cash to drive faster share gains▪ Accelerate strategy via disciplined value-accretive

bolt-on acquisitions to:‒ Drive market share gains‒ Add new product categories‒ Accelerate value-added solutions offer

c. £400bnmarket opportunity

>2xmarket growth rate target

Mid-teenadjusted operating profit margin target

> 80%*

adjusted operating cash flow conversion target

* Our aim post-investment in strategic initiatives.


Internal

IMPACT OF ADOPTION OF IFRS 16

29

The Group adopted IFRS 16 ‘Leases’ on

1 April 2019 with no restatement of

comparatives

Definition of net debt has been updated

to include lease liabilities

No impact on the covenants of the

private placement loan notes and bank

facilities that existed at 1 April 2019 as

they are on frozen GAAP

No impact on net cash flow

– Payment of lease liabilities has

moved from operating activities to

financing activities

£0.2 million net increase to PBT

– £1.3 million increase in operating profit

– £1.1 million increase in finance costs

£16.9 million increase in EBITDA

– £15.6 million of depreciation of

right-of-use assets

Income statement

Balance sheet

>

£56.3 million increase in net debt

0.2 increase in net debt to adjusted EBITDA

1.2 percentage point reduction in return on capital employed

Cash flow

£14.8 million increase in free cash flow

and adjusted free cash flow

6.9 percentage point increase in

adjusted operating cash flow conversion

>

>


Internal

GUIDANCE POINTS

Trading days

Expect around £2.8 million negative

impact on revenue from fewer trading

days in the year to March 2021

Other guidance points

Capex – lowered capex for 2021 to £60

million versus the £80 million previously

planned, as we defer some projects

Dividend

– The Board believes it is prudent to defer

the decision on a final dividend until we

have greater visibility

– We recognise the importance of our

progressive dividend policy to

shareholders and will therefore review

making an additional interim dividend

payment relating to the year ended 31

March 2020 at the Group’s half-year

results in November 2020

Foreign exchange

Foreign exchange rates (average for the period)

2020 rates 2019 rates 2021 rates*

Euro 1.144 1.134 1.125

USD 1.271 1.313 1.234

* 2020 adjusted profit before tax converted at 2021 forecast average rates, using 26 May 2020 closing rates extrapolated for rest of year.

30

Currency movements increased 2020 adjusted profit before tax by

£0.4 million

If May rates persist we would expect around a £4.3 million benefit to

adjusted profit before tax in the full year *


Internal

Like-for-like adjusted operating cost growth of 1.6%, less than revenue growth of 2.2%. Stripping out investment in strategic

initiatives of £14 million, underlying adjusted operating costs modestly declined

Adjusted operating costs as a percentage of revenue fell to 32.4% (2019: 32.8%), adjusted operating profit conversion 25.8%

(2019: 26.3%), operating profit margin fell 0.4 percentage points to 11.3% (2019: 11.7%)

DRIVING OPERATIONAL EFFICIENCY A

dju

ste

d o

pe

ratin

g c

ost

(£

m)

Cost discipline

Modest underlying decline in adjusted operating costs – with efficiencies from global shared business services strategy and lower incentive costs more than offsetting increases in volume, wage inflation, talent and digital advertising costs

31

Strategic operating expenditure of c.£14 million in areas such as IT, talent, training and software to support strategic initiatives

Change 2.2% 1.2% (1.4)%0.2% (2.1)%1.0%0.4% 0.6% 0.5%

550.0

575.0

600.0

625.0

650.0

675.0

700.0

FY19 FX Acquisitions Strategic Inflation Volume People Digital

advertising

Incentives Other FY20


Internal

KEY PERFORMANCE INDICATORS

KPI changes

This year, we have included five

additional non-financial KPIs to help

measure progress against our strategy.

The additional KPIs are focused on

areas of key importance to our

stakeholders and include our people

and the environment alongside our

existing safety and customer-related

non-financial KPIs.

FINANCIAL 2020 2019 Change

Like-for-like revenue growth (%) 2.2 8.3

Adjusted operating profit conversion (%) 25.8 26.3 (0.5) pts

Adjusted operating profit margin (%) 11.3 11.7 (0.4) pts

Adjusted EPS (p) 37.7 37.0 1.9%

Return on capital employed (%) 22.9 27.7

Adjusted operating cash flow conversion (%) 62.1 64.2

32

NON-FINANCIAL 2020 2019 Change

Group rolling 12-month Net Promoter Score 55.7 54.0 3.1%

Employee engagement 72 71 1.4%

All Accidents (per 200,000 hours) 0.69 0.88 (21.6)%

CO2 emissions (tonnes CO2e / £m revenue) 5.3 5.6 (5.4)%

Packaging (tonnes / £m revenue) 2.48 2.74 (9.5)%

Waste (tonnes / £m revenue) 1.51 1.58 (4.4)%

Percentage waste to landfill 7% 10% (3.0) pts


Internal

£m 2020 2019

Net debt at 1 April (122.4) (65.0)

Lease liabilities at 1 April 2019 on adoption of IFRS 16 (53.3) -

Adjusted free cash flow(1) 80.9 84.5

Acquisition of businesses (0.2) (34.6)

Cash and cash equivalents acquired with businesses - 1.3

Loans and finance leases acquired with businesses - (42.1)

Cash effect of adjustments(1) (8.5) (8.0)

Equity dividends paid (68.5) (58.9)

New shares issued 2.0 2.6

Purchase of own shares by Employee Benefit Trust (0.9) (2.3)

New leases (18.4) -

Disposal of leases 0.7 -

Translation differences (1.2) 0.1

Net debt at 31 March (189.8) (122.4)

NET DEBT MOVEMENTS

Strong balance sheet

Net debt rose to £189.8 million, due

primarily to the inclusion of lease

liabilities of £56.3 million as a result of

the adoption of IFRS 16

Net debt: adjusted EBITDA 0.7x

(2019: 0.5x)

Pension

Group net deficit £55.8 million

(March 2019: £83.6 million)

(1) Adjusted excludes the impact of substantial reorganisation costs.

33


Internal

IMPACT OF FOREIGN EXCHANGE

Translation Exposure

Reported profit sensitivity to a one

cent movement in:

– Euro: £1.4 million

– USD: £0.5 million

Transaction Exposure Group Treasury maintains 3-7 month hedging to smooth impact of currency

movements

Key exposures: net buyer of US dollars, net seller of euros and other currencies

Gross margin impacted over time from weakening in sterling versus:

– USD: negative impact

– Euro and other currencies: positive impact

34

1.00

1.10

1.20

1.30

1.40

1.50

Euro and USD movements to Sterling € to £ $ to £

Documents

ELECTROCOMPONENTS p… · This presentation contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements,