interim report 2006/07 4th december 2006 presentation to analysts and investors

INTERIM REPORT 2006/07

4th December 2006

Presentation to Analysts and Investors

Group sales up 38% to £67.8m (2005: £49.1m)

Adjusted profit* before tax up 64% to £7.4m (2005: £4.5m)

Reported profit before tax £5.1m (2005: £3.7m)

Basic earnings per share 4.60p (2005: 3.55p)

Interim dividend up 10% at 2.2p (2005: 2.0p)

Major acquisition completed in 1st half

Order book of £141m, of which £49m is related to the acquisition

Overview

*Profit before amortisation of acquired intangibles, voluntary severance payments, share based payment charges, integration costs and non-recurring costs associated with the acquisition.

© e2v technologies plc

Sensors and Semiconductors• Organic sales growth of 5% to £24m (2005: £22m)• Acquisition provided additional sales of £13m (2 months contribution)

Electronic Tubes• Strong sales growth of 15% to £31m (2005: £27m)• Driven by radiotherapy and defence applications

Other Matters• SAP roll out continuing to production planning phase• Anticipate formally launching Lincoln site marketing in 2nd half• Planning approved to redevelop Chelmsford ‘front of house’

Overview (Cont’d)


New divisional Director in place and relocated

Management and workforce stabilised – leadership conference well received

Sales post acquisition up 10.5% compared with last year

Half year sales growth of 12%

So far, so good - no surprises !

Grenoble Overview


Medical and Science

Electronic tubes

Business Overview

Sensors and semiconductors

Aerospace and Defence

Commercial and Industrial

£36.8m (+38%)

£10.2m (+50%)

£31.0m (+15%)

£14.7m (+208%)

£11.4m (+31%) £7.6m (+21%) £12m (+1%)

£11.9m (+43%)


Sales by Product Group and Market Sector

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

04/05 05/06 06/07

Sensors and Semiconductors Tubes Total

£23.3m £22.3m

£22.2m

Aerospace & Defence

(2005 : 18.7m)

Medical & Science

(2005 : £13.4m)

Commercial & Industrial

(2005 : £17.0m)

First half sales - £’000


Medical & Science (Sales at £11.9m - 2005: £8.3m)

• Strong performance in life science – 22% year on year growth

• Continued strong demand overall for dental sensors, though OEM performance is variable

• £3.4m of sales from Grenoble

Aerospace & Defence (Sales at £14.7m - 2005: £7.1m)

• Recovery of solid state microwave sales – 37% year on year growth

• Strong sales in space imaging as anticipated – 47% year on year growth

• Supplemented by £4.9m of sales in high reliability microprocessors and broadband data convertors from Grenoble

Commercial & Industrial (Sales at £10.2m - 2005: £6.8m)

• Organic sales declined by 20% year on year in fire and automotive sectors

• Augmented by £4.8m of sales from Grenoble, primarily ASICs and industrial cameras

Business Overview Sensors and Semiconductors


Business Overview – Electronic Tubes

Medical & Science (Sales at £11.4m - 2005: £8.7m)

• 31% year on year growth

• Driven by radiotherapy products

Aerospace & Defence (Sales at £7.6m - 2005: £6.3m)

• 21% year on year growth

• Specific programme for modulators

• Strong performance from RF subsystems to the UK and other national defence agencies

Commercial & Industrial (Sales at £12.0m - 2005: £11.9m)

• Marine radar continues to grow

• UHF TV and others generally flat


Geographic Sales Split – First Half

Europe £38.2m + 42% (Grenoble £8.3m)

Asia Pac £6.0m + 38%(Grenoble £1.2m)

M. East + Africa £1.1m(Grenoble £0.4m)

Americas £22.5m + 27%(Grenoble £3.2m)


Capital Expenditure

Financial Summary

6 months ended30 September 2006

£m

49.1

3.7

9.6

1.81

1.47

4.0


£m

Sales

Profit before tax and net finance costs

Cash generated by operations

Average exchange rates

US $

€

Year ended31 March 2006

£m

Adjusted Profit* before tax and net finance costs 4.5

* Adjusted profit is before tax and net finance costs, amortisation, voluntary severance payments, share based payment charges and non-recurring acquisition expenses.

3.3

7.4

5.1

1.46

4.5

67.8

1.84

26.5

15.4

13.8

1.46

7.8

112.3

1.78


Consolidated Income Statement

49.1

(33.6)

15.5

(11.0)

4.5

(0.5)

(0.9)

2.8

(0.8)

2.0

31.6%


£m


£m

(0.2)

3.7

(0.1)


£m

Revenue

Cost of Sales

Gross profit

Net operating expenses

Adjusted profit before tax and net finance costs

Net finance charges

Profit/(loss) before taxation

Tax on profit/(loss) on ordinary activities

Costs associated with acquisition

Voluntary severance payments

Gross margin

Profit/(loss) for the period/year attributable to shareholders

Share based payment charges


Amortisation of intangible assets arising on acquisitions

31.6%

(46.4)

21.4

(0.3)

(14.0)

-

67.8

(1.6)

(1.1)

(1.5)

3.7

2.6

5.1

33.6%

(74.5)

37.8

(0.4)

(22.4)

(0.8)

112.3

(0.4)

7.4

(0.4)

15.4

-

13.8

1.9

11.9

3.8

8.1


22.2

26.9

2.3

2.8

(0.1)

(0.5)

4.5

Turnover


Electronic tubes


Electronic tubes

Administrative expenses

Adjusted profit

Central Overheads

Difference on exchange

Profit before central overheads


£m

10.5%

%

10.5%


£m %


£m %

Exceptional items


(0.8)

3.7

Results by Activity

36.8

31.0

4.0 10.8%

3.3 10.8%

0.8

(0.7)

7.4

(2.3)

5.1

50.2

62.1

10.0 20.0%

(0.6)

15.4

(1.6)

13.8

7.3 11.8%

(1.3)


Intangible assets

Property, plant and equipment

Inventories

Trade and other receivables

Total Assets

Current liabilities

Non-current liabilities

Cash

Net Assets

21.1

20.8

22.2

24.2

95.4

(27.9)

(29.6)

5.5

37.9

Deferred tax assets 0.6

31 March 2006£m

30 September 2006£m

30 September 2005£m

Summarised Balance Sheet

88.2

33.3

38.6

33.0

208.9

(46.6)

(105.2)

12.5

57.1

3.3

22.4

21.3

20.8

25.6

100.2

(33.0)

(23.5)

8.1

43.7

2.0



Depreciation, amortisation and other non cash items

Capex

Taxation

Acquisitions

Other Investing activities

Working capital

Dividends paid

Cash generated by operations

Net Cash from operating activities

3.7

3.6

7.5

(5.0)

(0.4)

(4.0)

2.3

(2.1)

9.6


£m


£m


£m

(2.1)

Bank loans and other financing activities

Net increase/(decrease) in cash

6.3

1.4

Cash Flow

5.1

7.3

0.4

(64.6)

(1.0)

(4.5)

(9.1)

3.3

(2.3)

(2.9)

77.6

4.5

13.8

7.7

23.2

(5.0)

(1.3)

(7.8)

5.0

26.5

(3.2)

(3.3)

(0.2)

4.0

Net interest payable (0.9)(1.1) (1.7)


Good performance in first half

Strong order book of £141m (2005: £79m) underpins second half

Integration of Grenoble based activity proceeding to plan

Active cost reduction programme neutralising inflationary pressures

Organic development on track and we continue to assess potential acquisitions

Summary and Outlook


interim report 2006/07 4th december 2006 presentation to analysts and investors

Documents

half sales

year half year sales

year growth strong sales

group sales

additional sales

sales post acquisition

geographic sales split

year growth specific