SIG plc 2000 Annual Results

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SIG plc2000 Annual Results

• 9 March 2001

2
SIG Continued Growth

• Sales up 11
• Operating Profits pre goodwill up 17
• PBT up 14
• EPS up 13.5
• Dividends up 10

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Profit Loss (m)

• 2000 1999 Change
• Turnover Continuing Operations 903.8 841.3 7.4
  
• Acquisitions 28.1
• 931.9 841.3 10.8
• Operating Continuing Operations 49.2
  44.2 11.3
• Profit Acquisitions 1.7
• 50.9 44.2 15.2

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Operating Profit (m)

• 2000 Organic
• Organic Acquired Total growth
• UK 40.4 0.6 41.0 11.7
• Europe 11.4 0.8 12.2 9.3
• ROW 1.8 0.3 2.1 126
• 53.6 1.7 55.3 13.1
• Parent (3.0)
• Goodwill (1.4)
• 50.9

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Profit Loss (m)

• 2000 1999 Change
• Turnover 931.9 841.3 10.8
• Operating Profit 50.9 44.2 15.2
• Interest (2.7) (1.9) 47.4
• Profit before tax 48.2 42.3 13.9
• Taxation (15.2) (13.2)
• Profit after tax 33.0 29.1 13.4
• Interest cover 19 x 23 x

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Earnings and Dividend

• 2000 1999 Change
• Basic earnings per share (p) 27.7 24.4 13.5
• Dividend per share (p) 10.2 9.3 9.7
• Dividend cover 2.7 x 2.6 x

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Balance Sheet (m)

• 2000 1999
• Fixed assets 95.2 66.0
• Net current assets 77.6 82.8
• Provisions and (29.4) (26.3)
• Liabilities over 1 year
• Shareholders funds 143.4 122.5
• Net Debt 72.4 51.3
• Gearing 51 42

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Stocks (m)

• 2000 1999 Change
• UK 37.0 33.0 12
• Europe 25.0 21.4 17
• ROW 8.2 7.3 12
• 70.2 61.7 14
• Stock Turn 10 x 10 x

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Debtors (m)

• 2000 1999
• Trade debtors 164.8 145.6
• Debtor days 55 54

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Creditors (m)

• 2000 1999
• Trade Creditors 60.4 52.8
• Bills Payable 6.7 7.9
• 67.1 60.7
• Creditor days 30 30

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Cashflow (m)

• . 2000
• Cash inflow from trading 64.3
• Less
• Change in working capital
• Stocks (3.2)
• Debtors (10.4)
• Creditors 2.4 (11.2)
• 53.1
• Fixed assets purchased (net) (17.9)
• Taxation (10.7)
• Interest (2.7)
• Dividends (11.3) (42.6)
• Operating cash inflow c/f 10.5

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Cashflow continued (m)

• . 2000
• Operating cash inflow b/f 10.5
• Less Non-trading items
• Acquisitions (29.5)
• New loans (1.1)
• Exchange rate differences (1.0) (31.6)
• Net increase in borrowing (21.1)

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Operating Businesses
SIG
UK
Europe
USA
Insulation Related Products
Ceilings Partitioning
Roofing Products
Personal Protective Equipment
Insulation Related Products
Ceilings Partitioning
Personal Protective Equipment
Insulation Related Products
Personal Protective Equipment
Sheffield
Knight
Litt
CDL
Asphaltic
SDL
Ouest Isol
Ouest Isol
DI / BI
Insulations
Supply
Warren
CP
Protec
BWI
FRANCE
Coleman
DIPS
Insulation
Supplies
Kitsons
Komfort
Formerton
Nouwens
Miller
Cleveland
Screenbase
HOLLAND
UMB
Pattison
Mayplas
Shropshire
WKT
WKT
Golinski
Golinski
GERMANY
ABS
WKT Polska
Canon Artis
POLAND
15
Sales Growth Constant Exchange Rates ()
59
59
35
34
7
6
16
Operating Profit Growth Constant Exchange Rates
()
76
74
23
22
3
2
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Construction Markets - 2000

• . Public Comm
• Housing works /Ind. R M I Total
• UK 7.0 1.5 1.5 3.0 2.5
• Germany -6.5 -3.0 -1.5 0 -2.5
• Poland 10.0 -10.0 6.5 1.5 2.0
• France 3.5 -0.5 11.5 6.5 6.0
• USA n/a n/a 1.0 3.0 2.0

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SIG Markets - 2000

• . SIG Sales
• Price Volume Total (organic)
• UK IRP -2.5 4.0 1.5 7.2
• C P -2.5 2.5 0 9.6
• Roofing 2.0 0.5 2.5 15.8
• PPE 0 1.0 1.0 15.0
• Eur. Germany -2.0 -4.5 -6.5 1.0
• Poland 6.0 2.0 8.0 90.0
• France (IRP) -1.0 1.0 0 1.2
• France (CP) 2.0 3.0 5.0 29.0
• ROW USA 1.0 1.0 2.0 31.0

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UK (m)

• . 2000 1999 Change
• Sales 560.0 495.8 12.9
• Operating Profit 41.0 36.2 13.3
• Margin 7.3 7.3

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UK - Insulation Related Products

• Stable market conditions
• Good organic growth in sales and profits
• Penetration of industrial and commercial market
• Expansion of added value products
• New facilities in London Ireland
• Improved operating efficiencies

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UK - Ceilings Partitioning

• Excellent overall performance
• Price deflation in core ceiling products
• New IT system
• Central services established
• Investment in design and sales capability

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UK - Roofing Products

• Modest market growth
• Strong sales and profit improvement
• 1999 and 2000 acquisitions contributed
• Improved UK coverage

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UK - Personal Protective Equipment

• Sales and profits improvement across all sectors
• Flat market conditions
• Investment in sales and marketing resources
• Protec-direct.co.uk trading well

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Europe (m)

• . 2000 1999 Change
• Sales 301.0 294.6 2.5
• Operating Profit 12.2 10.4 17.3
• Margin 4.1 3.5

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Europe - Germany

• Difficult market conditions
• Good organic profit growth
• Operating margins improved
• Enhanced operating efficiencies
• Growth in specialist activities
• Focus on sales and marketing

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Europe - Poland

• Branch network extended
• Strong sales growth
• Positive operating contribution

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Europe - France

• Good organic sales growth
• Ceilings and partitioning activities expanded
• Flat industrial market, positive ceilings market
• 5 new ceilings branches

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Europe - Holland

• Extension of core activity
• Entry into the Dutch CP market
• 2 small businesses acquired

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ROW USA (m)

• . 2000 1999 Change
• Sales 71.1 50.8 40
• Operating Profit 2.1 0.8 163
• Margin 2.9 1.6

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ROW - USA

• Oil related markets difficult
• Good Recovery
• Strong sales performance
• Introduction of central services

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E-Commerce

• 3 active trading sites in operation
• protec-direct.co.uk
• sheffins.co.uk
• knightsafety.com
• Further sites being developed

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Acquisitions

• 12 small bolt-on acquisitions including
• UK IRP Mayplas
• UK Roofing Formerton
• Holland C P Nouwens
• UK Roofing Shropshire
• UK C P Screenbase
• UK Roofing Cleveland Roofing
• Holland C P UMB
• Germany C P ABS
• Total Consideration - 29.5m

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Prospects

• Market conditions similar to 2000
• Continued organic growth
• Contribution from small bolt-on acquisitions
• Positive start to the year

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