Presentation is loading. Please wait.

Presentation is loading. Please wait.

2013 Annual Results.

Similar presentations

Presentation on theme: "2013 Annual Results."— Presentation transcript:

1 2013 Annual Results

2 Management Team Jeremy Ben-David Peter Cohen Robert Bell
Management Team Jeremy Ben-David Group Chief Executive Founded Waterlogic Plc in 1992 Responsible for the overall strategic development of the Group Heads Waterlogic Consumer (business-to-consumer) worldwide Peter Cohen Chief Executive – Waterlogic Commercial Joined the Group in August 2012 Previously, CEO of PHS Group Heads Waterlogic Commercial (business-to-business) worldwide Joined the Group in January 2012, appointed as CFO in Oct 2013 Previous experience includes Barclays, Bank of America and the debt-backed purchase of a major rolling stock company from RBS Previously Director of Accounting Robert Bell Chief Financial Officer

3 Group Highlights Summary Overview Financial Highlights
Progress in further strengthening our position as a leader in quality POU water dispensers enhancing future quality of earnings through increasing recurring revenues. Summary Rental and service revenue increased to 40.2% of total revenue (2012: 38.6%) Parts & consumable sales account for a further 25% of revenue New Group CFO, Robert Bell, appointed October 18th 2013 Acquisition of CCW in Australia backed by c.$60m facility with HSBC and Clydesdale Growth in units placed outpaces general market growth (17% over 11%) International trading business delivered healthy growth of 9.9% Overview Revenue increasing by 22.9% from $101.0m to $124.0m Gross margin improving from 60.7% to 63.6% Organic revenue grew by 4.1%, which was 3.5% on a constant currency basis. Adjusted EBITDA grew 41.3% to $19.5m (2012: $13.8m) Adjusted operating profit increased 38.4% to $ 12.3m (2012: $ 8.9m) Adjusted net income for the year increased 2.8% to $ 7.6m (2012: $ 7.4m) Financial Highlights

4 Operational Highlights
Installed base grew by 17.2% to 750,000 MIF (2012: 640,000) Successful international roll out of the WL3 Firewall 9.9% revenue growth in Trading, new distributors in Bulgaria, Italy, Lithuania and Chile Several key reference accounts were acquired in Germany, France, Scandinavia & US Outstanding organic growth 21.9% in Germany Strong performance recovery in France, led by a focus on Firewall technology products Commercial $1.3m revenue in 2013 (2012: $0.5m) Indesit launch in Turkey, Italy units sold in 2013 Signing of Japanese agreement with ALCONIX and E-Commerce launch with Costco Canada Commencement of production at AquaIgnis Consumer Acquisitions Strategic acquisition of Australian market leader in POU with 24% market share Plus two further ‘bolt-on’ acquisitions Waterlogic has continued its international growth through a number of acquisitions and new supply and distribution agreements in 2013.

5 Financials

6 Financial highlights Group revenue increased by 22.9% to $124.0m
Revenue ($m) Recurring Revenue ($m); % of total revenue 2013 acquisition growth (full year basis) - $11.8m in revenue 2013 Organic growth of 4.1% Recurring rental & service revenues grew 27.9% in 2013 recurring revenues run rate now over 42% of total revenue CAGR + 19% CAGR + 29% Adjusted EBITDA ($m) USA improvement off-set by one off costs Scandinavia up $0.5m 2013 acquisition of CCWG added $4.6m Group revenue increased by 22.9% to $124.0m Gross Margin increased to 63.6% Organic growth 4.1% whilst growing recurring revenues which now stands at over 40% of revenue New acquisitions in 2013 contributed $11.8m in revenue CAGR + 19% Adjusted Operating Profit ($m) Amortisation of acquired intangibles up $1.6m CAGR + 18%

7 Summary Financials 2013 2012 Change Group revenue ($’m) 124.0 101.0
↑ 22.9% Gross profit ($’m) 78.9 61.3 ↑ 28.7% Adjusted EBITDA ($’m) 19.5 13.8 ↑ 41.3% Adjusted operating profit ($’m) 12.3 8.9 ↑ 38.4% Adjusted profit for the year ($’m) 7.6 7.4 ↑ 2.8% Gross margin 63.6% 60.7% ↑ 2.9 bps Adjusted EBITDA margin 15.7% 13.7% ↑ 2.0 bps Adjusted Operating Profit margin 9.9% 8.8% ↑ 1.1 bps Group Revenue growth of 3.5% at constant currencies Direct revenue grew by 62.1% from $16.0m to $25.9m Indirect revenue grew by 4.9% from $46.0m to $48.3m Rental and service revenue grew by 27.9% to 40.2% of total revenue (2012: 38.6%) The Directors use adjusted measures to judge the profitability of the Group to provide them with a consistent basis for comparison of the Group’s results, on a year on year basis. During the years under review, “Adjusted” measures include adjustments for the share based incentives expense, capital reorganisation related costs, acquisition & integration related costs, amortization of acquired intangibles and corporate reorganisation costs. Further details and reconciliations to statutory measures are included in note 5 to the financial information.

8 Revenue & Operating Profit bridge
2012 Revenue restated to 2013 FX Adjusted Operating Profit

9 Revenue Model Analysis
Rental & Service Leasing Filter & Consumable Parts Units Consumer Other Total Revenue FY13 49.8 6.9 23.6 7.0 32.6 1.3 2.8 124.0 FY12 37.0 6.2 18.2 7.4 29.6 0.5 1.9 101.0 Change +34.6 % +11.3% +29.6% -5.4% +10.1% +160% +47.4% +22.9% % of Revenue FY13 40.2% 5.6% 19.1% 5.7% 26.3% 1.0% 2.3% FY12 36.6% 6.2% 18.0% 7.4% 29.3% 0.5% 1.9% Change +3.6% -0.6% +1.1% -1.7% -3.0% +0.5% 0%

10 Consolidated Balance Sheet
2013 2012* 2011* $’m $m Capital and reserves 90.0 89.3 85.5 Non-current assets Non-current liabilities Goodwill 55.2 24.9 11.2 Borrowings 44.0 2.8 4.3 Other intangible assets 35.1 20.3 8.8 Derivative financial instruments 0.2 0.1 Property, plant & equipment 26.3 14.7 9.1 Deferred tax liability 5.6 1.5 0.3 Deferred tax asset 1.2 1.3 0.5 Provisions Investment in joint venture 0.8 0.0 Deferred consideration 1.4 1.9 Financial instruments Total non-current assets 118.8 61.2 29.6 Total non-current liabilities 51.3 5.8 6.6 Current liabilities Trade and other payables 19.4 13.8 3.7 2.9 3.5 Current assets Current tax liabilities 1.6 1.1 Inventories 18.2 13.4 12.5 Trade and other receivables 25.0 23.3 Deferred revenue 6.7 5.5 2.1 Cash and cash equivalents 16.6 30.2 51.1 3.6 Total current assets 59.8 66.8 83.1 Total current liabilities 37.2 33.0 20.6 Total liabilities 88.5 38.7 27.2 Total assets 178.5 128.0 112.7 Total equity and liabilities * restated prior period figures.

11 Consolidated Cash Flow
Year ended 31 December In $ millions 2013 2012* Adjusted operating profit before working capital movements 17.0 10.5 Net effect of working capital movements 0.2 1.9 Cash flow before purchase of rental assets, interest and tax 17.2 12.4 Purchases of rental assets (5.9) (3.1) Proceeds on disposal of rental assets 0.1 Interest paid (1.6) (0.5) Tax paid (2.2) (2.0) Net cash from operating activities 7.5 6.9 Investing activities Interest received Proceeds on disposal of property, plant and equipment 1.2 0.0 Purchases of property, plant and equipment (1.4) Purchases of intangible assets (2.1) Acquisitions including investment in JV and deferred consideration (61.2) (21.1) Net cash used in investing activities (63.4) (24.4) Financing activities New bank loans raised 51.8 1.3 Repayment of bank loans and other financing (8.7) (4.6) Payment of derivative financial instruments (0.4) Net cash from financing activities 42.8 (3.3) Translation differences (0.1) Net (decrease) in cash and cash equivalents (13.2) (20.8) Net cash and cash equivalents at beginning of year 29.8 50.6 Net cash and cash equivalents at end of year 16.6

12 The Business

13 Commercial Operational Update
7 Key Business Drivers for 2013 and 2014 Business Plans Growth through new product innovation and creativity Professional procurement Invest in IT Focus on training and recruitment Acquisitions in key existing markets and one new geographic market Develop e-commerce marketing Develop appropriate pricing strategies

14 Commercial Review Germany New Products New Contracts Marketing
WL3 successfully established Cube sparkling in development for 2014 launch New Contracts Major new accounts Expansions for 2014 install Certification from German Assn for Hospital Hygiene (DGKH) will support sales in 2014 Continued growth in Austria through selected dealer and FM partners New call centre in Düsseldorf from 2014 for tele-appointing, telesales Marketing Enhanced CRM improving sales pipeline management and administration Acquisition of Eauvell wasserspender service in Kiel / leading bottle cooler company in North Germany  in September 2013 Operations Profitability 28% revenue growth, implemented a price increase and outpaced market growth

15 Commercial Review France New Products New Contracts Marketing
Transition to Firewall products to drive margins and market share Max product has sold over 1000 units by YE 2013 New WL3 launched in Q1 2014 New Products New Contracts Major new accounts and key workplace service partners Marketing Investment in search engine optimisation Outside agency being used to generate and qualify leads Profitability A turnaround year for WLF. c.7% revenue growth, 29% profit growth

16 Commercial Review Scandinavia New Products New Contracts Marketing
Launch of WL3 Firewall Launch of Cube Firewall in online sales channel (web-shop) in Norway & Denmark Re-branded Swedish operation to Waterlogic New Contracts Major new accounts On-line site achieving consistent sales of USD per month Supporting the coffee and water cross selling initiative Scientific report and certification confirms Firewall % bacteria reduction Marketing Operations New CRM and ERP systems making dramatic improvements Recruited more experienced sales people Aqua Service Norway achieved 10 million NOK ($1,67M) in synergies (representing 26% of their 2011 revenue of 38,1 M NOK). Focus on lower margin bottled water customers increasing price or converting to POU Sale of AquaService water source. Profitability

17 Commercial Review USA New Products New Contracts Marketing Operations
WL3 launch providing new sparkling water solution for US markets New Culligan range due for roll-out in Q2 2014 New Contracts Major new accounts Marketing Increased investment in customer prospect data Newly staffed business development centre Reorganised direct selling business units under one national team Completed integration of three companies into the West Coast hub New initiatives include coffee cross selling, new sales productivity measures and incentives and proactive machine upgrade program Operations Profitability Operating loss in the US $1.9m (2012: $1.1m) included one off costs relating to product recall $1.0m and Debtors $0.7m

18 Commercial Review Australia New Products Marketing Operations
Re-branding to Waterlogic Launching a selected Waterlogic range as an additional upgrade to the existing coolers Developing new market channels (Food service, facility management) Launch of Purezza in the HORECA market Promoting the Culligan brand in the residential sector Marketing Operations Outperforming acquisition budget with revenue of $11.3m and operating profit of $1.8m Distribution agreement secured with Pentair to supply the Food Service sector Profitability Six months contribution as acquired 20 Jun 2013

19 Commercial Review Aqua Cure New Products New Contracts Marketing
Launched range of coffee machine cleaning products and water softeners Increasing bakery machine filtration / maintenance offerings New Contracts Major new accounts Bakery sector contracts Marketing Developed and launched several new websites Successfully sold 500 tap systems via QVC shopping channel Operations Loss of 3M contract replaced by a deal with Pentair allowing us to market a competitive range Profitability E-commerce producing good volume, in new channels and at a lower cost per sale

20 Commercial Review Trading New Products Marketing Operations
WL3 successfully established in key markets Made first sales of WL2 Firewall with reverse osmosis Rolling out Waterlogic manufactured filter range to international partners New Products Progress in South America with new distributors to be appointed Key growth opportunities for 2014 in Puerto Rico, Costa Rica, Mexico, Chile and Southern and Eastern Europe Marketing Operations Continued strong growth in UK, Ireland, Benelux, Russia, Czech Republic, Iberia Growth in 2013 from tier 2 and 3 partners improving our customer concentration risk Profitability Product mix improvement (Firewall) and sales growth improves profitability

21 Manufacturing update 110K machines produced and shipped in 2013
units set an all time record Enhancing production (due to commence ‘phase in’ from mid May 2014) to R600a environmental gas for chilling compressors (where market requirements dictate) New Senior R&D Manager recruited First CUBE and EDGE production (container load) confirmed for shipment to Israel end Q1 2014 Firewall met WHO standard for highly protective waters - full certification considered for 2014 Production commenced in India (Aquaignis) Waterlogic Filters Assembly Operation Water Testing Detailed QC Testing

22 Acquisitions Completed in 2013
Aqua Cure Scotland (UK) Water equipment vendor (Perth, Scotland) acquired for $0.5m Profitable, highly complementary ideal ‘bolt-on’ NCI in Aqua Cure (UK) Acquired non-controlling interests Cool Clear Water Group (Australia) Market leader in the Australian POU market with over 26,000 POU coolers installed Only Australian POU provider with a presence in all states Predominantly a rental business Initial Consideration AUD $60.0m (USD $58.5m) Eauvell (Germany) Eauvell Wasserspender Service GmbH acquired for $0.4m Acquired customers, brand and operating assets of the business 2013 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

23 Promotional material (TR)
Indesit Sales growth in Italy and Turkey Plan to expand to additional markets in Europe (to be mutually agreed) Bundling with SodaStream Promotional material (TR) Ecommerce (IT, TR)

24 Japan Currently in 45 department stores + 3 catalogues
Plan to be in 60 locations by end of April Launch to mass distributors planned for Q3 POS materials In-store demonstrations Packaging Draft on-product ‘swing tag’ Draft point of sale display

25 Aquaignis Initial factory pilot test runs completed
Eterniti production underway Expected initial volumes to be of 2 to 2.5k per month Launching the Edge and Tap in other SE Asia and Mid East markets with Forbes International Infiniti Eterniti Reminder of market size Lowering bills of material for group and risk mitigation elements of factory. Aquaignis

26 Costco Canada Middle East EMEA
In Feb we launched the Hybrid in Canada, exclusively for Costco members, on Supporting with a national PR campaign Costco initially indicated sales of 3-5 units per week - so far we have sold over 50 units units in about 5 weeks Middle East Agreed commercial terms with a leading electronics retailer (dominating about 70% of the country’s retail space) Plan to ship over 2,800 Cubes and 1,300 Edges plus other products in Q2 2014 This is the first time we’ve ventured into a relationship with a retailer, and our first attempt at online sales We intend to begin selling the Countertop as well later this year on EMEA Plan to commence product distribution in Southern & Eastern Europe and Middle East in Q with selected distributors and specialist high end consumer products companies.

27 Products / Markets / Customers
Summary Group revenues increased by 23% Continued increase in direct sales and recurring revenues Waterlogic Consumer business still in development Overview Successful launch of WL3 Firewall Focus on the introduction of the new Max Firewall™ technology product in France New commercial distributors in Bulgaria, Italy, Lithuania and Chile Continued development with strategic partners Products / Markets / Customers Strong contribution from the Australian acquisition, six months drag through Targeting organic growth in 2014, with contributions from acquisitions and Waterlogic Consumer product launches Q1 generally strong and in line with budgets. Trading order book looking very healthy 2014 Outlook We need t consider outlook statements and whether or not we are going to make forecasts. I think we still need an acquisition slide that shows the prospects and the two LOIs we have signed. We can explain that we will only pursue these when the timing is right from a BS perspective. Not having anything on future acquisitions is a negative statement in itself. We expect 2014 to be another year of progress through a combination of organic growth, drag through contributions from acquisitions in our core Commercial Division, supported by continued growth in the Consumer Division. 27

28 Appendix

29 About Waterlogic Example customers A leading manufacturer and global operator of Point of Use (“POU”) water purification systems Founded in 1992, the Group predominantly serves the Commercial market and is developing into the Consumer segment An experienced management team with a strong track record of profitable growth through acquisitions and organic growth driven by product and service innovation A 100% owned state of the art manufacturing facility Over 750,000 machines installed globally A market and product innovator, using market leading technology including the in-house development of Firewall™ Key commercial partners Key facts 834 employees Sales in over 50 countries worldwide Low customer churn rate Market leader in the USA, Australia, Norway, Sweden, Germany and the UK 40.2% recurring revenue

30 Commercial Revenue Model Contracted Customers is Core Strategy, Distributor Partnerships Provide Critical Mass Representative Customers Waterlogic Manufacturing and Distribution Rental and service income c.70% margin $35-$80 per month Average contract is 4 years 95% renewal rate 40% of Revenue Waterlogic subsidiaries Direct sales channel Sales and service c.60%-65% margin $800-$1,000 per unit +$15 per month (12 month rolling contract) 21% of YTD 2013 Revenue Indirect sales channel Indirect sales channel $400-$700 per unit c.30% margin 39% of Revenue Country distributors Third parties representing Waterlogic $200-$500 per unit 25% to 40% margin Waterlogic owned Third Parties

31 Waterlogic China (100% exporter)
Supply chain – B2C Waterlogic China (100% exporter) Waterlogic Trading Waterlogic Germany Online sales direct to customers and staff (pilot study yet to commence) Direct sales Indirect sales Distributors Alconix (Japan) CostCo (Canada) Other distributors in pipeline Third party sales OEM Partners Indesit (Italy, Turkey, plus other European countries being explored) Forbes International (Middle East & Africa) Etc. Waterlogic owned Third Parties

32 Supply chain – Aquaignis
10% of Net Income in P&L gets distributed to the JV Partners. Aquaignis JV Aquamall (JV partner) Eureka Forbes (parent) India Indirect sales Africa and Middle East (most likely end of 2014 or 2015) Forbes International Waterlogic Trading Waterlogic subsidiaries Rest of world (most likely 2015) Direct sales Waterlogic owned Third Parties

33 The Market USA 5.48 million water coolers in US (2013)
79% bottled coolers, but in decline. Growth in mains water point-of-use coolers has accelerated to over 10% a year. Waterlogic growth is just over 11%* “Water coolers are now an essential service for staff in many businesses, but bottled water coolers have lost out to mains water point-of-use coolers due to a combination of cost, convenience and perceptions of environmental impact,” Zenith Regional Research Co-ordinator Cecilia Martínez. Europe 2.78 million coolers in West Europe and 1.7million in East Europe 58% in W. Europe are bottled coolers but in decline (66% in E. Europe) Overall market growth is 6% in W. Europe and 5% in E. Europe Waterlogic growth is 11%* * Zenith US Coolers Report 2013 * Zenith West Europe and East Europe Coolers Report 2013 * Internal data confirmed in Zenith report.

34 Market overview The global water cooler market is estimated to be worth $14 billion annually Prior to creation of Waterlogic Commercial, the company competed in the $2 billion Commercial (Europe / US) segment of this Significant trend away from bottled water coolers to POU; c.77% of new installations between were POU**. In the same period: The overall market grew 26% The POU market grew 175% Further market shift from bottled water to POU expected. Driven by cost and environmental concerns Waterlogic Consumer The consumer market is estimated to be worth $12bn with a c.11% CAGR Water quality is an additional driver for the consumer Developing countries (in particular China and India) demand driven by distrust of tap and bottled water Developed world (in particular the US) significant questions over tap water quality reflected in the high-prevalence of water filters Source: Zenith International, Director estimates 2009 Global RWT Market Source: Piper Jaffray POU Research Report February 2010 *POU = “Point of entry” where water is purified where the mains supply enters a property **Source: Zenith International, Director estimates 34 Source: F&S markets research, trigger foresight analysis

35 Waterlogic’s Market Position
Market Leadership Between 2005 and 2012* The Group’s installed base grew by 255% The Group’s share of the POU market grew from 22% to 29% Globally the POU market is fragmented on a country by country basis The Group is in a market-leading position in most of its key territories. Waterlogic’s market position in its key territories* Country Market ranking USA 1st Norway Sweden UK Germany Australia 35 * Source: Zenith International, Director estimates

36 Operations in over 50 countries across the world
Global Presence Factory Support / Trading Offices (UK & Ireland) Operational Businesses (Australia, US, Germany, France, Norway, Sweden, Denmark and UK) Core markets – existing strong business Developing markets – new distributors / strong prospects in development Undeveloped markets Operations in over 50 countries across the world 36

37 Major Moments in Waterlogic History
1992 Company established 1993 First UK sales 1995 Production commences in Korea 1999 US Market entry 2000 WL UK sold to PHS Waterlogic launches in Russia 2004 China manufacturing operation commences Two (NOR) acquisitions Waterlogic Denmark commenced operation 2005 Acquisition of Innowave, (USA), CoolerSmart (USA), Elan (NOR) 2012 Acquisition of, DSK (NOR), Prisme (FRA), Aqua Service (Nor & Swe), Taylor Made (USA), Aqua Prix (USA) Creation of Waterlogic Commercial and Waterlogic Consumer. Appointment of Peter Cohen as CEO Commercial. Supply agreement with Indesit JV with Eureka Forbes 2010 Firewall Launch Acquisition of, NewTech (DEN), Cool Chili (NOR), Frangart (GER) and Health Concepts (USA) Admission to AIM 2001-’03 2004-’05 2006-’09 2010 2011 2012 2013 2001 Acquired Korean manufacturing facilities from JV partner Waterlogic launches JV in Germany 2002 Acquisition of NewTech (NOR), Water Pure (FRA) 2006 Acquired Water Works (DEN) 2007 Acquired ESCOWA (SWE) 2009 Major Factory Expansion 2011 Launch of own filters line Acquisition of AquaCure (UK), InnoTech (USA) and cooler-base of BWT (FRA) 2013 Acquisition of Cool Clear Water in Australia Plus Aqua Cure Scotland (UK) and Eauvell (GER) Manufacturing operations commenced in 1995 with Korean partner Sold UK subsidiary to PHS Group in 2000, entering 25 year distribution agreement. Disposal provided capital to expand manufacturing facilities and enter expanding markets including US Manufacturing operations in PRC trebled expansion between 2004 to In 2009, the Group undertook a major factory expansion increasing production by a further 30% p.a. 2011/2012 acquisitions and contracts with Indesit and Eureka Forbes Acquisition of Cool Clear Water in Australia in 2013 Key Highlights

38 Drinking Water Evolution
Technology Evolution Bottles Converted Bottles Filtration Only Filtration & UV Firewall™ 1980 2014 Growth Drivers Consumer Branding Cost Taste, Convenience Health Benefits & Environmental 38

39 What is Firewall™? Until now, advanced POU water dispensers have utilised UV technology to kill bacteria and pathogens in the tank. Whilst very effective, this was not designed to eliminate back contamination via the tap from outside the machine affecting the water dispensed In 2010, Waterlogic unveiled a technology to address this issue which delivers a level of water purification previously unseen in POU In the time taken for the water to flow through the spiral (0.8 seconds) the water dispensed is % pure Interior view of Firewall™ chamber showing UV effect at all points Waterlogic WL4 ‘Firewall’ model water dispenser 5,000 independent tests prove water is % pure 100% of the time

40 Firewall Developments
Strategic positioning of the Edge: Hybrid Firewall Drink Pure Messaging: Crowded markets: Natural/ Healthy Un-crowded markets: Purity + Safety Dr. Gerba – renowned expert, currently testing Firewall against other taps and specifically the efficacy of Firewall against the WHO standard for “Highly Protective Waters” (results to go public later in 2013) Initial report states that: “The Waterlogic WL 250 easily met the removal requirements for the USEPA and NSF for a microbiological water purifier, and the WHO requirements for “protective”.” “…all of the oocysts observed in the effluent were inactivated achieving the WHO classification of the system as “highly protective”.” Ghost image of the Waterlogic Edge Hybrid Purifier showing the Firewall Charles P. Gerba, Ph.D. is an internationally recognized environmental microbiologist and Professor of Environmental Microbiology in the Departments of Microbiology and Immunology, and Soil, Water and Environmental Science, at the University of Arizona Dr. Gerba has authored more than 400 articles including several text books in environmental microbiology and pollution science He is a member of the U.S. EPA's Science Advisory Board Committees on Drinking Water and Research Strategies

41 The problem still remains … back contamination
Technology (pre-Firewall™) Removes most contaminants, insecticides and pesticides Removes chlorine and water borne tastes and odours Improves water taste WQA Gold Seal approved Options to suit local water conditions Filtration Harnesses the power of ultra violet light for water purification – no chemicals added to water Features a UV lamp in the centre of the cold tank Destroys the growth of bacteria by destroying its DNA core Effective against all bacteria and pathogens Waterlogic technology incorporates unique Automatic Purification Monitoring System which triggers an alarm should UV lamp fail In-tank UV Protects the plastic surfaces and surrounding the dispensing of Waterlogic units A second defence hygiene mechanism after Filtration and UV Bacteria which come into contact with BioCote® protected surfaces, breakdown rendering them unable to reproduce and further causing them to die Exclusive to Waterlogic BioCote The problem still remains … back contamination 41

42 Patents and Certifications
Patent pending technology: published on 5 May 2011 means technology is “prior art” International certifications prove the highest levels of quality and safety at Waterlogic and create a market barrier to entry Waterlogic is recognised by the US Water Quality Association as being able to use the term “water purifier” in connection with its products (WQA NSF P231) The Company’s technology is the only one certified as able to guarantee % pure water 100% of the time (WQA NSF/ANSI) Highest levels of quality and certification provide a barrier to entry and give Waterlogic a competitive advantage

43 Product Line-up Commercial Consumer

44 Waterlogic Hybrid Purifier- Excellent Design & Colour Range
3 litre reservoir

45 Waterlogic revenue model
Rental and service revenue Waterlogic rents water dispensers and other products, often with a service contract, direct to end-user businesses This channel represented 40.2% of Group Revenue in 2013, 2012: 38.6% Direct revenue Waterlogic makes an outright sale of its water dispensers and other products (typically signing an additional maintenance contract) direct to similar end-user businesses This channel represented 20.9% of Group Revenue in 2013, 2012: 15.9% This includes direct sales of units, parts, consumables, filters and leasing Indirect revenue Waterlogic sells to dealers and distributors who then supply products to the end customer Sales are made either to sub-dealers in direct markets, or direct to partners in other countries (some of whom Waterlogic may produce an OEM product) This channel represented 38.9% of total Group Revenue in 2013, 2012: 45.5% This includes indirect sales of units, parts, consumables, filters and Consumer Division

46 Financial summary Revenue grew by 22.9% to $124.0m (2012: $101.0m) and 41.3% adjusted EBITDA growth to $19.5m (2012: $13.8m) This was achieved through: Launching new products based on its proprietary Firewall technology Achieving organic growth of 3.5% Acquisitions, including CCWG in Australia, Aqua Cure in Scotland and Eauwell in Germany Securing consumer distribution agreements with ALCONIX in Japan and an E-commerce launch with Costco in Canada Adding commercial distribution channels in Bulgaria and Italy and entering new territories in Lithuania and Chile, with International Trading revenue growing by 13.9% Delays in launching the Consumer Division - specifically with roll-out delays with Indesit, our Latin American partner, and our partner in the Middle East. These delays are being resolved and should provide significant additional revenue in 2014, providing further upside One-off costs relating to the USA, including debtor impairment costs of $0.7m and product related issues of $1.0m

47 Multi-Currency Credit Facility
Arranged with HSBC and Clydesdale banks 5 year committed amortising term loan AUD 16.6m (AUD 0.8m repaid in Dec 13) NOK 51.6m (NOK 2.6m repaid in Dec 13) 5 year committed revolving credit facility AUD $38.0m Uncommitted incremental facility USD $15.0m Leverage margin up to 2.75%

48 Disclaimer The materials being provided to you in connection with this presentation are strictly confidential and intended only for informational purposes and convenient reference and should not be copied or reproduced in any way. These materials do not constitute or form part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities of Waterlogic in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or investment decision in relation thereto. Recipients of these materials who intend to purchase or subscribe for shares in Waterlogic are reminded that any such purchase or subscription must only be made solely on the basis of information contained in a formal offer document or circular relating to Waterlogic or an RNS announcement. The distribution of these materials in jurisdictions other than the United Kingdom may be restricted by law and persons into whose possession these materials come should inform themselves about and observe any relevant restrictions. In particular, these materials are not for publication or distribution, directly or indirectly, in, into or from the United States of America, Canada, Australia, the Republic of South Africa or Japan. Any failure to comply with the above restrictions may constitute a violation of such securities laws. Neither Waterlogic nor any of its affiliates or advisers, makes any representation or warranty, express or implied as to the accuracy, completeness or verification of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance. In giving this presentation, neither Waterlogic nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. These materials are only addressed to and directed at persons in member states of the European Economic Area who are “qualified investors” within the meaning of Article (2)(1)(e) of the Prospectus Directive (Directive 2003/71/EC). This document is for distribution in the United Kingdom only to persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 or to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, (all such persons together being referred to as, "relevant persons"). This document is directed only at relevant persons. Other persons should not act or rely on this document or any of its contents. These materials include statements that are, or may be deemed to be, “forward-looking statements” which are based on current expectations and projections about future events. In some cases, these forward-looking statements may be identified by the use of forward-looking terminology, including the terms “targets”, “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout these materials and include statements regarding the intentions, beliefs or current expectations of Waterlogic and/or its directors concerning, among other things, the trading performance, results of operations, financial condition, liquidity, prospects and dividend policy of Waterlogic. By their nature, these forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. A number of important factors could cause actual results or outcomes to differ materially from those expressed, projected or implied in any forward-looking statements. No one undertakes publicly to update or revise any such forward-looking statement. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to verification, completion and change without notice. By attending the presentation you agree to be bound by the foregoing limitations.

Download ppt "2013 Annual Results."

Similar presentations

Ads by Google