Strategy Delivering Further Strong Growth · 2018. 12. 4. · UK returned to growth in Q2 Cross selling up 17% to £4.9m Higher gross margins (c.+10ppts v CS GM) Note: At constant

Interim results FY19 – 4th December 2018discoverIE Group plc

Interim resultsHalf year ended 30th September 2018

4th December 2018

Strategy Delivering Further Strong Growth


(1) Estimated lifetime sales value of projects

A strong first half

Group sales up 11% Organic D&M excl acquisitions +10%

Record order book +18% (CER)

New project design wins +40%(1)

Underlying operating profit +23%

Underlying EPS +24%

Since the half year end – the acquisition of Cursor Controls for £19m

1

Interim results FY19 – 4th December 2018discoverIE Group plcdiscoverIE Group plc

Since FY13 :

Sales up > 2x

Underlying EPS up > 2x

Operating profits up > 4x

Share price growth 21% CAGR(2)

Dividend growth 7.4% CAGR(3)

(1) Group revenue, excluding disposed businesses(2) Growth from 2009 to Nov 2018(3) Growth from 2010 - 2018

Our aim is to double EPS in 5 years

H1 19 EPS up 24%

We aim to provide investors with

Returns of 15 – 20% pa

A progressive dividend

FY13 FY14 FY15 FY16 FY17 FY18 FY19

SALES(1)

FY13 FY14 FY15 FY16 FY17 FY18 FY19

UNDERLYING OPERATING PROFIT & EPS

Underlying Operating Profit EPS

Growth Company

2


FINANCIAL REVIEW


Higher gross margin Up 0.8ppts to 33.0%

Increasing operating margin Up 0.6ppts to 6.8%

Generating cash 84% operating cash

conversion in the last 12 months (£22.9m)

Growing ROCE Up 1.3ppts to 14.8%

(1) Underlying profits exclude acquisition-related costs and exceptional items (see Appendices I & II)(2) ROCE is underlying operating profit as a percentage of net assets plus net debt (including acquisitions). FY18 ROCE of 15.5% excluded acquisitions

Financial Review

Strong first half performance

4

H1 19 H1 18 GrowthCER

Growth

Revenue £211 .7m £190.2m +11% +12%

Underlying operating profit(1) £14.5m £11.8m +23% +25%

Underlying profit before tax(1) £12.9m £10.4m +24%

Underlying EPS(1) 13 .0p 10.5p +24%

Interim dividend per share 2.80p 2.65p +6%


Revenue up 112% in 5 years (16% CAGR)

Financial Review

Revenue more than doubled in 5yrs

5

£100m£121m

£142m£157m

£190m£212m+20%

+18%+10%

+21%

+11%

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

REVENUE Growth H1 19Organic(1) 7%

Acq 5%

CER 12%

Currency -1%

Actual 11%

(1) Organic growth (excluding acquisitions). Including acquisitions, organic growth was 3% (see Santon p16)


Underlying operating profit(1)

of £14.5m Up £2.7m on H1 18 (+23%, +25% CER)

39% CAGR in 5 years

Underlying operating margin of 6.8% Up 0.6ppts on H1 18

Up 4.0ppts in 5yrs

Progress towards 8.5% target(2)

(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II).(2) Mid term target by Nov 21

Financial Review

Strong increase in profitability

£2.8m

£5.5m

£7.6m£8.8m

£11.8m

£14.5m

2.8%

4.5%

5.4%5.6%

6.2%

6.8%

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

UNDERLYING OPERATING PROFIT & MARGIN

6


Underlying operating profit up 25% CER

Strong revenue growth

Gross margin up 0.7ppts organically

Opex increase mainly D&M related

Santon impacted by Chinese tariff reductions

EBIT drop thru of 20%(2)

(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II).(2) Increase in profits as a percentage of sales growth (Excluding acquisitions)

Financial Review

Profits driven by higher value products and good operating leverage

7

£11.8m

£4.3m

£1.5m(£2.8m)

(£0.1m) (£0.2m)

£14.5m

H1 18 REVENUE GM OPEX ACQS FX H1 19

UNDERLYING OPERATING PROFIT


(1) UOP is underlying operating profit(2) Organic growth excludes acquisitions (D&M)

Financial Review

CUSTOM SUPPLY

DESIGN & MANUFACTURING

Profit growth across both divisions…

Operating profit up 22% CER Margin up 0.2ppts to 11.1%

Operating profit up 18% CER Margin up 0.6ppts to 4.6%

8

£m

D&M 127.8 14 .2 11 . 1% 106.7 11.6 10.9% 18% 20% 10% 22%

Custom Supply 83.9 3 .9 4.6% 81.9 3.3 4.0% 2% 2% 2% 18%

Unallocated (3 .6) (3.3)

Total (CER) 211 .7 14 .5 6.8% 188.6 11.6 6.2% 11% 12% 7% 25%

FX 1.7 0.2

Total (reported) 211 .7 14 .5 6.8% 190.2 11.8 6.2%

Revenue UOP (1 )

UOP

growth

%

Revenue growth

Organic (2 )% Actual CER

H1 18 (CER)

Revenue UOP (1 ) %

H1 19


Underlying PBT up 24%

Underlying EPS up 24% Up c.170% in 5 yrs (22% CAGR)

(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II).

Financial Review

… driving further EPS growth

9

4.8p6.5p

7.7p 8.5p10.5p

13 .0p+35%

+18%+10%

+24%

+24%

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

UNDERLYING EPS

£m H1 19 H1 18

Underlying operating profit(1) 14.5 11.8

Finance costs(1) (1 .6) (1.4)

Underlying PBT(1) 12.9 10.4

Effective tax rate 25% 24%

Underlying PAT 9.7 7.9

Fully diluted shares (m) 74.5 75.0

Underlying EPS (p) 13.0p 10.5p


Operating cash flow(1) of £22.9m over last 12 months (LTM)

£22.9m for LTM, up 5% 84% of underlying operating profit 100% average conversion rate over

the last 6 years.

Net debt at 30 Sep 18 of £62.6m

£2.3m reduction since last year (ex acquisitions)

Gearing ratio(2) of 1.85x (target range 1.5x – 2.0x)

Revolving credit facility of £120m

Plus £30m accordion; term to Jul 21

Available for acquisitions and working capital

(1) Operating cash flow defined as EBITDA less working capital and capex – see Appendix III(2) Net debt at 30 Sep 18 as a ratio of adjusted EBITDA (Group underlying EBITDA for last 12 months adjusted for a full year of the underlying EBITDA from acquisitions).

OPERATING CASH FLOW(1)in last 12 months (£m)

Financial Review

Financing and cash flow

10

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19 Target

100% 104% 106% 107% 95% 84% 85%% Underlying

Operating Profit

6. 1

9.9

16.5

18.6

21 .9

22.9


Similar WC/sales ratio to last year 17.3% of annualised Q2 sales (v 16.7% LY) Reflects increasing proportion of D&M

(D&M WC at 22% of sales, CS WC at 13% of sales)

WC up £5.3m organically in LTM Strong organic growth in Q2 of 9%

(£36m annualised sales) = 14% WC rate below Group average

£2-3m Brexit stock building H2 Customer committed inventory

Working capital increases to support growth

Financial Review

(1) Cash to cash cycle (C2C) is the average net number of days from remitting cash to suppliers to receipt of cash from customers (stock days – creditor days + debtor days)(2) Working capital is defined as net inventory, trade & other receivables and trade & other payables. Unallocated working capital is not represented in this chart.

11

£22mC2C 54

£23mC2C 44

£21mC2C 53

£24mC2C 48

£33mC2C 91

£38mC2C 100

£47mC2C 97

£55mC2C 86

16 .1% 17.4% 16.7% 17.3%

46%

52%57%

60%

H1 16 H1 17 H1 18 H1 19

WORKING CAPITAL(2)

CS D&M Group SWC% Sales D&M Sales%


Interim dividend up 6% 77% growth FY dividend in 8yrs

7.4% CAGR

Maintaining progressive policy 2 to 3x cover (underlying basis)

FY18: 2.5x cover (underlying) and 1.8x cover (reported)

Financial Review

Increasing dividend

1 .69p 1.69p 1.82p 1.82p 1.82p2.20p 2.33p 2.45p

2.65p 2.80p

3.40p 3.74p3.99p

4.36p4.98p

5.40p5.72p

6.05p6.35p

5.09p5.43p

5.81p6.18p

6.80p

7.60p8.05p

8.50p9.00p

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

12


OPERATING REVIEW


Strong organic growth Sales (excl acqs) +10% Orders (excl acqs) +13%

Operating profit up 24% Operating leverage (23% EBIT

drop thru)

Enlarged production facilities now operational (5.5ksqm, +11%) Magnetics – Bangalore, India Fibre optics – Bratislava, Slovakia Shielding – Seoul, Korea

Expansion in China underway Magnetics (+3.6k sqm)

Flexible production minimises effects of tariffs into USA

Note: At constant exchange rates (CER)

Operating Review

Design & Manufacturing division

14

Growth H1 19

Organic 10%

Acquisitions 10%

CER 20%

Currency -2%

Actual 18%

£2. 1m

£5.3m

£8.9m

£10.4m£11.6m

£14.2m

43%

61%

75%85%

78%78%

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

Underlying Operating Profit% Group profit contribution

£18m

£41m

£76m£86m

£107m

£128m

19%

34%

46%

52%

57%

60%

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

Sales% Group total


Widespread, strong organic growth

(1) Sales destination, excluding acquisitions(2) D&M organic growth excluding acquisitions

Operating Review

Strong D&M organic growth

15

UK15%

Germany11%

Nordic27%

R.O.E.20%

N. America9%

Asia18%

REVENUE BY REGION

UK Germany Nordic R.O.E. N.America

Asia Total

4%

14%

7% 7%

11%

25%

10%

ORGANIC GROWTH BY REGION(1)

9% 9%

14%

11% 11% 11%

10%

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

QUARTERLY ORGANIC SALES GROWTH(2)


DC & AC switching for electronic & electrical applications

Solar & energy storage

Transport – rail & electric vehicles

Industrial

High performance products with significant potential c.€25m sales p.a. 2 divisions – Solar, Industrial

Solar inverter market Slowed in H1, will recover Changes to solar subsidy in China

Transportation and Industrial Growing strongly

Santon acquisition - high performance switching

Operating Review

16


(1) Sales growth excluding acquisitions. Target markets are renewable energy, transportation, medical and industrial connectivity

Operating Review

Target markets leading growth

Up from 56% @ year end

17

Target Markets

£78m61%

D&M REVENUE FROM TARGET MARKETS

(% of total Group revenue)

13%

6%

10%

Target Markets

Other Markets

Total

ORGANIC GROWTH BY MARKET(1)

13%


Good organic growth

Sales +2% (despite a large one-off prior year shipment)

Underlying sales +6%

Operating profit up 18% Operating leverage (30% EBIT drop through)

Performance driven by Germany, Italy & Netherlands UK returned to growth in Q2

Cross selling up 17% to £4.9m Higher gross margins (c.+10ppts v CS GM)

Note: At constant exchange rates (CER)

Operating Review

Custom Supply division

£2.8m

£3.4m

£3.0m

£1.9m

£3.3m

£3.9m

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

UNDERLYING OPERATING PROFIT

18

£76m £79m£88m

£79m £82m £84m

£6m£8m

£1m

H1 14 H1 15 H1 16 H1 17 H1 18 H1 19

REVENUE

Ongoing Discontinued


£131m record order book

CER +18% v H1 18

Organic +13% v H1 18

High proportion of recurring revenues

Driven by

New project design wins

Repeat revenue growthFY13 FY14 FY15 FY16 FY17 FY18 FY19

Operating Review

Record order book underpins H2

19

£52m £50m

£65m£73m

£85m

£109m

£124m£131m


Focused on growth markets Technology revolution driving new product development

Global trends underpinning structural growth

Applications necessitating increased electronic content

Essential customers requirement for application-specific solutions

Transportation MedicalRenewable

EnergyIndustrial

ConnectivityAutomotive circuit sales

expected to rise CAGR 13.4% (2016- 2021) IC Insights

Medical electronics to grow CAGR 6.8% (2017 -2022)

Research+Markets

Two thirds global investment in power

generation to 2040 will be into renewable energy

World Energy Outlook 2017

Overall market size for global machine-to-machine

connections to rise 13.2% CAGR (2016-2021)

Markets-and-Markets

20

Operating Review


Essential products into growth markets

Medical

Renewable Energy

Industrial Connectivity

Charging Sensing systems Power control Cabin monitoring &

control

Increasing scale of wind turbines

Diversification of solar systems

Wireless telematics Fibre optic connectivity AI communication Wireless robotics control

Monitoring & control Automation & robotics Advanced surgery

Electric vehicles Mass transit & route

vehicles Autonomous vehicles High speed railTransportation

discoverIEsolutionsMarket driversMega trends

Decarbonisation & Diversification

Electrification & Autonomous

vehicles

Connectivity & Industrial

Internet of Things

Artificial intelligence, sensing & analytics

Power inductors Turbine blade pitch

control Airflow measurement

Embedded diagnostics Interface device & cabling Power systems

Automation & robotics ‘Smart factories’ Artificial intelligence

Technology integration

Decarbonisation ‘Safety-centric’ agenda Mass transit & route

vehicles

Proactive & preventative medicine

Technological & biological fusion

Predictive analytics

Geopolitical consensus Growing public awareness Legislative and regulatory

regimes Cost of energy

Operational efficiency and flexibility

Quality control Competition from

Technology companies

21

Operating Review


Case study: Our unique solutions for Renewable energy

Power inductors

Pitch controllerAirflow measurement

Strong and trusted customer relationships across supply chain

Providing innovation-led, bespoke solutions to essential customer requirements

Multi-year design cycles provide strong visibility & recurring revenues

Complementary technologies create cross-selling opportunities

Operating Review

22


Renewable energy

Transportation

DESIGN WINS

Creating future growth£126m in new project wins

(est lifetime value or ELV)

+40% increase on prior year

c.80% in target markets

(1) Estimated lifetime sales value of projects, - estimate

Operating Review

23

Medical

Industrial Connectivity

£40m

£52m

£70m

£57m

£90m

£100m

£126m

H1 16* H2 16* H1 17 H2 17 H1 18 H2 18 H1 19

Design wins - ELV(1) (£m)


Operating Review

Consistent, proven strategy

Sales growth well ahead of GDP over the economic

cycle

Move up the value chain into higher margin products

Acquire businesses with attractive growth prospects

and strong operating margins

Internationalise the business

24


(1) As a percentage of Group revenue(2) Mid-term is a 3 to 5 year period starting in Nov 16(3) Growth excluding acquisitions; 3% with acquisitions. (4) Annualised sales(5) Based on last 12 months

Repeat the performance of the last 5 years

Key Strategic Indicators Mid termTarget (2)

1. Increase share of Group revenue from D&M(1) 18% 37% 48% 52% 57% 61% 75% 85%

2. Increase underlying operating margin 3.4% 4.9% 5.7% 5.9% 6.3% 6.8% 8.5% 10%

3. Build sales beyond Europe(1) 5% 12% 17% 19% 23% 30% 40%

Key Performance Indicators 3 yr target(FY20)

1. Sales growth(1)

CER 17% 36% 14% 6% 11% 13%

Organic 2% 3% 3% -1% 6% 4%

2. Increase cross-selling £0.3m £0.9m £3.0m £4.6m £8.8m £9.7m(3) £10m p.a.

3. Underlying EPS growth 20% 31% 10% 13% 16% 22% >10%

4. Dividend growth 10% 11% 6% 6% 6% 6% Progressive

5. ROCE(4) 15.2% 12.0% 11.6% 13.0% 13.5%(5) >15%

6. Operating cash flow(4) 100% 104% 100% 136% 85% >85% of Op

profit

Long term

ambit ion

Well ahead

of GDP

H1 19

H1 19

FY17 FY18

FY16 FY17 FY18

FY14 FY15 FY16

FY14 FY15

Operating Review

Good progress towards targets

25

Key Strategic Indicators Mid termTarget (2)

1. Increase share of Group revenue from D&M(1) 18% 37% 48% 52% 57% 60% 75%

2. Increase underlying operating margin 3.4% 4.9% 5.7% 5.9% 6.3% 6.8% 8.5%

3. Build sales beyond Europe(1) 5% 12% 17% 19% 19% 20% 30%

Key Performance Indicators 3 yr target(FY20)

1. Sales growth

CER 17% 36% 14% 6% 11% 12%

Organic 2% 3% 3% -1% 6% 7%(3)

2. Increase cross-selling £0.3m £0.9m £3.0m £4.6m £8.8m £9.7m(4) £10m p.a.

3. Underlying EPS growth 20% 31% 10% 13% 16% 24% >10%

4. Dividend growth 10% 11% 6% 6% 6% 6% Progressive

5. ROCE(5) 15.2% 12.0% 11.6% 13.0% 13.5% 14.8% >15%

6. Operating cash flow(5) 100% 104% 100% 136% 85% 84% >85% of Op

profit

FY15

FY15

FY16

FY18

FY18 H1 19

H1 19

Well ahead

of GDP

FY14

FY16

FY17

FY17FY14


12 D&M acquisitions, £170m spend since 2011

EBIT ROI of D&M acquisitions(1) of 20%, up from 18% LY (v 15% target)

Consistent profitable growth from earlier acquisitions

Organic growth with operating leverage

Organic sales growth of 6% pa

Organic profit growth of 9% pa

Acquisitions performing well

(1) ROI defined as annualised H1 19 operating profit attributable to the business over acquisition cost comprising up-front consideration, acquisition expenses, earn-out (once earned), and integration costs

(2)Percentage growth since FY18 (3)Excludes Santon as less than one year since acquisition

Operating Review

26

90%

66%

32% 32%23% 22% 21%

14% 13% 11%20%

+13% +4% +8% +18% +3% +1% +10% +1% +6% -8% +3%A B C D E F G H I J Overall

EBIT ROI(1) % of H1 19

Target 15%

(2)


Business fundamentals

• Growth markets

• Designed-in products, difficult to replace

• Distinct business, competitive advantage

• Low customer concentration

• Good gross margin

• Low capital investment requirements

• Acquisitions at the right price

Attractive rewards

• GDP++ organic growth

• High levels of repeating revenue

• Sustainable margins

• Reduced risk

• Cash generative

• Self-funding growth

• Earnings accretion

Our business

Operating Review

27


Operating Review

Outlook

H2 has started well with further strong growth , and the fundamentals are in place for this to continue Record order book High level of design wins

On track to deliver full year performance in line with our expectations

Healthy acquisition pipeline

28

APPENDICES


Management believe the adjustments enable a better understanding of the underlying performance of the business

Adjustments made to IFRS results are:

Acquisition/disposal related costs (transaction costs, earn-outs, amortisation of acquired intangibles, gain or loss on acquisition or disposal, IAS 19 pension charge related to legacy scheme)

Exceptional items (restructuring, integration, one offs)

Appendix I

Underlying to IFRS reconciliation

30

H1 19 (£m) UOP Excep. Acqs Amort IAS19 IFRS

Gross profit 69.9 69.9

S&D costs (27.8) (27.8)

Admin expenses (27.6) (2.9) (0.4) (2.9) (0.2) (34.0)

Operating profit 14.5 (2.9) (0.4) (2.9) (0.2) 8.1

Net finance costs (1.6) (0.1) (1.7)

Profit before tax 12.9 (2.9) (0.4) (2.9) (0.3) 6.4

Taxation (3.2) 0.8 0.7 (1.7)

Profit after tax 9.7 (2.1) (0.4) (2.2) (0.3) 4.7


EPS 13.0p 6.3p

H1 18 (£m) UOP Excep. Acqs Amort IAS19 IFRS

Gross profit 61.2 61.2

S&D costs (26.4) (26.4)

Admin expenses (23.0) - (1.1) (2.2) (0.1) (26.4)

Operating profit 11 .8 - (1 .1) (2.2) (0.1) 8.4

Net finance costs (1.4) (0.1) (1.5)

Profit before tax 10.4 - (1.1) (2.2) (0.2) 6.9

Taxation (2.5) 0.5 (2.0)

Profit after tax 7.9 - (1 .1) (1 .7) (0.2) 4.9


EPS 10.5p 6.5p


UNDERLYING ADJUSTMENTS (£m) NET ASSETS (£m)

Appendix II

Underlying adjustments & net assets

31

Net Assets

At 31 March 2018 129.3

Net profit after tax 4.7

Dividend paid (4.7)

Currency net assets - translation impact 2.7

Gain on defined benefit scheme 0.5

Shares issued 0.1

Share-based payments (incl tax) 0.4

At 30 September 2018 133.0

H1 19 H1 18

Acquisition costs (0.4) (1.1)

Exceptional items (2.9) -

Amortisation of acquired intangibles (2.9) (2.2)

Legacy pension - IAS19 (0.3) (0.2)

Underlying adjustments (6.5) (3 .5)

Tax impact of adjustments 1.5 0.5

After tax adjustments (5.0) (3 .0)


(1) Non-cash items are depreciation, amortisation and share based payments.(2) Operating cash flow as a percentage of underlying operating profit.(3) Free cash as a percentage of underlying profit after tax.

Appendix III

Cash flow & net debt

NET DEBT (£m) CASH FLOW (£m)

32

H1 19 H1 18

Opening net debt (52.4) (30.0) (37.6)

Free cash flow 2.1 - 16.7

Acquisition related cash flow (2.3) (0.4) (27.3)

Executive options issuance (1.1) - (1.1)

Net settlement expense - - (1.5)

Exceptional payments (2.9) (0.7) (4.0)

Legacy pension (0.9) (0.8) (1.8)

Dividends (4.7) (4.3) (6.6)

Foreign exchange impact (0.4) (1.4) 0.6

Net debt at 30 Sept (62.6) (37.6) (62.6)

Last 12

mths H1 19 H1 18

Underlying profit before tax 12.9 10.4 24.4

Finance costs 1.6 1.4 2.8

Non cash items(1) 3.0 2.2 5.6

Underlying EBITDA 17.5 14.0 32.8

Working capital (10.2) (9.0) (5.3)

Capital expenditure (1.9) (1.6) (4.6)

Operating cash f low 5 .4 3.4 22.9

Finance costs (1.6) (1.4) (2.8)

Taxation (1.7) (2.0) (3.4)

Free cash 2.1 - 16.7 Target

Operating cash flow %(2) 84% 85%

Free cash flow %(3) 91% 90%

Last 12

mths


Translation effects

Sterling weakened significantly in FY17 and FY18 but rose slightly overall in H1 19 impacting the Group on translation of overseas results into Sterling by c1%.

c.85% of Group revenues are non-UK (mainly € and Nordic).

Translation impact for H1 19: Sales £1.7m Underlying operating profit £0.2m

(1) Nordic rate is a weighted average combination of £/NOK, £/SEK and £/DKK rates based on Group sales in each territory.

Operational effects

Sterling weakened significantly against US$ in FY17. Although strengthening throughout FY18 and H1 19, it still remains well below the FY16 average rate.

Approximately 90% of UK cost of goods are non-Sterling, so impacts on purchase pricing .

The Group hedges material transactional exposures for around six months. Protects GM at FX rate at time of order.

Appendix IV

Foreign exchange effects

£/€ £/Nordic (1)

H1 19 v H1 18 -1% 4%

FY18 v FY17 -5% -2%

FY17 v FY16 -13% -12%

33

£/$ €/$

H1 19 v H1 18 3% 4%

FY18 v FY17 1% 6%

FY17 v FY16 -13% -0.5%


Opex %

Gross margin %

Operating costs up 0.2ppts

Investment in D&M to fund growth (in H1 and in the future)

Operating margin % Operating margin of 6.8%

0.6ppts improvement from H1 18

Up 3.8ppts in 5 years

Towards target of 8.5%

H1 14

H1 15

H1 16

H1 17

H1 18

H1 19

29.9%

30.9%

31.5%

32.9%

32.2%

33.0%

H1 14

H1 15

H1 16

H1 17

H1 18

H1 19

26.9%

26.5%

26.1%

27.3%

26.0%

26.2%

H1 14

H1 15

H1 16

H1 17

H1 18

H1 19

3.0%

4.4%

5.4%

5.6%

6.2%

6.8%

Efficiency drives operating margin

34

GM back to its highest level

Impact of weaker sterling v $ rates on import costs in H1 18, reversed with better pricing

Appendix V

Documents

Strategy Delivering Further Strong Growth · 2018. 12. 4. · UK returned to growth in Q2 Cross selling up 17% to £4.9m Higher gross margins (c.+10ppts v CS GM) Note: At constant