Tricorn Interim ResultsFor period ended 30th September 2009

Nick Paul, ChairmanMike Welburn, Chief Executive

Phil Lee, Finance Director

10 December 2009

Agenda

• Background• Results Overview• Financial Review• Business Performance• Summary and Outlook

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Background

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• Tricorn Group plc – AIM listed in 2001– Specialists in Global Tube Solutions– Energy, Transportation, Aerospace and Utilities Segments

• Experienced Board– Strong track record of delivering profit and revenue growth

• Nick Paul CBE - Non Executive Chairman - Appointed 2001– Previously Deputy Chief Executive of IMI

• Mike Welburn - Chief Executive - Joined 2003– Previously Director of Global OEM Strategy for IMI’s Fluid Power Division

• Phil Lee - Group Finance Director - Joined January 2009– Previously Finance Director of Distributed Generation Systems (Rolls-Royce

Energy Business)

Company and People

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Business Segments• Energy

– Fabricated tubular assemblies for diesel engines and radiator sets used in power generation, mining and oil and gas

• Transportation– Nylon, rigid and hybrid pipe assemblies for engines, brake

systems, fuel sender sub systems used in both on and off highway applications

• Aerospace– Rigid pipe assemblies for civil and military aerospace

applications

• Utilities– Patented jointing solution for multi layer and single layer pipe

systems used in the water and gas markets

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Business Segments

Energy

Transporation

Aerospace

Utilities

Sales to 30th September 2009

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Results Overview

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Results Overview H1 2009/10 £’000

H1 2008/9 £’000

H2 2008/9 £’000

Sales revenue 6,965 12,103 10,142

EBITDA* 369 1,125 684

Net Debt 1,049 2,471 2,064

Cash and equiv 901 440 713

Gearing** 22.2% 53.3% 44.1%

*Before restructuring costs, amortisation and fair value adjustments

**Total net debt to equity

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Results Overview

• Short term strategy as outlined at time of preliminary announcement focussed on 3 key areas– Rapid capacity alignment– Reduction in overheads– Cash optimisation

• Significant progress in all areas

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Results Overview

– Rapid capacity alignment• Short time working has retained skills in the businesses• Productivity gains despite volume reductions generating

improved margins over 2nd half of previous year• Better positioned to respond as markets improve

– Reduction in overheads• Administration costs down £1,029k (36.4%) including a

29.6% reduction in indirect headcount• Improved operational gearing

– Strengthened balance sheet• Net debt reduced by £1,015k to £1,049k• Cash and cash equivalents up 26.3% to £901k

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Financial Review

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Headlines £’000 2009/10 2008/09 Change

Sales 6,965 12,103 (42.5)%

Admin & distribution costs (2,077) (3,380) 38.5%

EBITDA* 369 1,125 (67.2)%

Profit before tax* 105 821 (87.2)%

Adjusted EPS 0.26p 1.83p (85.8)%

Net debt 1,049 2,471 57.5%

Total headcount 228 330 30.9%

* Before amortisation and fair value adjustments.

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Balance Sheet£’000 2009/10 2008/09 Change

Total Fixed Assets 2,656 2,904

Inventory 3,235 4,088 20.9%

Trade & other receivables 3,120 5,090

Trade & other payables (2,500) (4,117)

Net working capital 3,855 5,061 23.8%

Corporation tax (343) (498)

Deferred tax (301) (346)

Financial liabilities at fair value (96) (12)

Net Debt (1,049) (2,471) 57.5%

Net Assets 4,722 4,638 1.8%

Gearing (total debt/equity) 22.2% 53.3%

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251

1,015

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PBIT Depreciation & Amortisation

£’ m

Components of cashflowHalf year to September 2009

118

Cashflow

582

142

Inventory reduction

Other working capital

movements

Taxation

(72)

Net interest paid

(21)

Capital expenditure

Banking Facilities£’000 2009/10 2008/09

Cash & cash equivalents 901 440

Invoice discounting (1,019) (1,555) Renewed in November 2009

Term Loan (824) (1,150) To be repaid in 2012

Finance leases (107) (206)

Closing net debt (1,049) (2,471)

Banking covenants

Interest cover (EBITA/Interest)

4.6 times Hurdle 2.5 times

Cashflow cover 2.0 times Hurdle 1.1 times

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Business Review

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Energy Segment

• Impacted late in the economic downturn

• Order levels now increasing

• Productivity improvements despite low volumes

• Market share gains

£’000 H1 2009 H1 2008 Change

Sales 2,147 4,517 (52.5%)

PBT* (37) 344 (£381k)

*excludes amortisation, corporate recharges, swap valuation and restructuring costs

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Transportation Segment

• Productivity gains despite low demand levels

• September sales highest since November 2008

• Factory lay out being developed to accommodate new business wins

£’000 H1 2009 H1 2008 Change

Sales 1,971 3,823 (48.4%)

PBT* (24) 117 (£141k)

*excludes amortisation, corporate recharges, swap valuation and restructuring costs

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Aerospace Segment

• Some market softening

• Significant improvement in profitability despite lower sales

• Still significant scope for operational improvements

£’000 H1 2009 H1 2008 Change

Sales 2,625 2,891 (9.2%)

PBT* 103 (59) £162k

*excludes amortisation, corporate recharges, swap valuation and restructuring costs

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Utilities Segment

• Relationships with existing blue chip customers remain strong

• Housing market still weak and activity suppressed with move to AMP 5

• Low overhead base ensures business remains profitable

£’000 H1 2009 H1 2008 Change

Sales 222 872 (74.5%)

PBT* 34 212 (83.9%)

*excludes amortisation, corporate recharges, swap valuation and restructuring costs

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Outlook

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Outlook

• Revenues in Q2 in line with Q1 as markets stabilised

• Some evidence that destocking is now close to completion

• A modest growth in revenues for second half anticipated

• Overall performance in line with expectations

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DisclaimerThe information contained in this presentation, and upon which this presentation is based, has been produced by Tricorn Group plc (“the Company”). This presentation

is confidential and is solely for the use of the directors of the Company in connection with the Company’s interim results for the period ended 30 September 2009. Neither the whole nor any part of the information in this presentation may be disclosed to, or used or relied upon by, any other person or used for any other purpose and, in particular, should not be distributed outside the United Kingdom, without the prior written consent of the Company. The material contained herein may include unpublished price sensitive information, the misuse of which may result in criminal and/or civil proceedings against you.

 

None of the information on which this presentation is based has been independently verified. Accordingly, neither the Company nor any of its connected persons accepts any liability or responsibility for the accuracy or completeness of, nor makes any representation or warranty, express or implied, with respect to, the information on which this presentation is based or that this information remains unchanged after the issue of this presentation.

 

No duty of care or otherwise is owed by the Company or any of its connected persons to any other person in relation to this presentation.

 

This presentation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Company or any of its connected persons to any recipient of the presentation in relation to the Company’s interim results for the year ended 30 September 2009. No person has been authorised to give any information not contained in this presentation.

 

Nothing in this presentation is, or should be relied on as, a promise or representation as to the future. Any projection, estimate or statement as to future performance contained in this Presentation contains significant assumptions and subjective judgements by such persons concerning anticipated results and may or may not prove to be correct and there can be no assurance that any predicted results are attainable or will be realised.

 

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