Investor presentation
December 2021
Introduction to discoverIE
- International specialist electronic engineering firm
- Designing and manufacturing customised electronic components
- Highly differentiated products
- Supplying Original Equipment Manufacturers (OEMs)
- Essential products, repeating revenue
- Sustainable growth markets
- Renewable energy, transportation, medical, industrial & connectivity
- Continuing revenue of £303m, operating profit(1) of £30.9m
- Operating in 24 countries
- Acquisitive
- Fragmented market - 19 D&M acquisitions in last 11 yrs
- Underlying profit for y/e 31 Mar 21 (continuing business)
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Sustainable growth Company, resilient in tough conditions
We aim to provide investors with
◼ Returns of 15 - 20% pa +23% CAGR(1)
- A progressive dividend +6% CAGR(1)
Since FY18 our aim has been to double underlying EPS in 5 years again
- FY19 + FY20 op profits up 78%
- FY19 + FY20 EPS up 62%
- Covid actions + effective supply chain management minimise impacts
In 5yrs to FY18:
◼ | Sales | up > 2x |
◼ | Underlying EPS | up > 2x |
◼ | Operating profits | up > 4x |
- Share price and dividend growth from Apr 12 to Sep 21
- All historical figures have been restated to exclude Custom Supply distribution business
- Consensus estimates at 22 Nov 2021 of 6 analysts. The estimates have factored in the discontinuation of the Custom Supply division
discoverIE Group plc
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Our business
Business fundamentals | Attractive rewards |
▪ Growth markets | ▪ |
▪ Designed-in products, difficult to replace | ▪ |
▪ Distinct business, competitive advantage | ▪ |
▪ Low customer concentration | ▪ |
▪ Design, not price led | ▪ |
▪ Low capital requirements | ▪ |
▪ Multiple manufacturing sites & technologies | ▪ |
▪ Acquisitions at the right price | ▪ |
GDP++ organic growth
High levels of repeating revenue
Sustainable margins
Reduced risk
Increasing margins
Cash generative
Reduced risk
Earnings accretion
Underpinned with high standards of Environmental, Social & Governance for a better world
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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
- Further internationalise the business
- Generate strong cash flows and long term sustainable returns while reducing impact on the environment
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discoverIE Group plc published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 09:10:06 UTC.