2016/17 Preliminary Results 8June2017

Nat Rothschild

Daren Morris

1

Volex is

bringing power and connectivity to equipment that is changing how we work and live!

Disclaimer

3

ThisPresenta,ondoesnotcons,tuteorformpartofanyofferorinvita,ontosellorissue,oranysolicita,onofanyoffertopurchaseorsubscribefor,anysecuri,estoanypersoninanyjurisdic,ontowhomorinwhichsuchofferorsolicita,onisunlawful,norshallit(oranypartofit),orthefactofitsdistribu,on,formthebasisof,orbereliedoninconnec,onwithoractasanyinducementtoenterinto,anycontractwhatsoeverrela,ngtoanysecuri,es.Noreliancemaybeplacedforanypurposeonthecompleteness,accuracyorfairnessoftheinforma,onandopinionscontainedinthisPresenta,on.ThisPresenta,onisonlyaddressedto,ordirectedat,personsinmemberstatesoftheEuropeanEconomicAreawhoare“qualifiedinvestors”withinthemeaningofAr,cle2(1)(e)oftheProspectusDirec,ve(Direc,ve2003/71/EC,asamended)(“QualifiedInvestors”).Inaddi,on,intheUnitedKingdom,thisPresenta,onisonlyaddressedto,ordirectedat,(a)QualifiedInvestorswhoarepersonswhohaveprofessionalexperienceinmaTersrela,ngtoinvestmentsfallingwithinAr,cle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromo,on)Order2005(the“Order”)(Investmentprofessionals),(b)QualifiedInvestorswhofallwithinAr,cle49(2)(a)to(d)oftheOrder(Highnetworthcompanies,unincorporatedassocia,onsetc.)or(c)QualifiedInvestorstowhom,oratwhich,itmayotherwisebelawfullymade,suppliedordirected(allsuchpersonsreferredtoabovebeing“RelevantPersons”).Eachrecipientisdeemedtoconfirm,representandwarranttotheCompanythattheyareaRelevantPerson.ThisPresenta,onisnotfordistribu,on,directlyorindirectly,inwholeorinpart,inorintotheUnitedStates,Australia,Canada,Japan,theRepublicofSouthAfricaoranyjurisdic,onwhereitwouldbeunlawfultodoso.Thedistribu,onofthisPresenta,onoranyinforma,oncontainedinitmayberestrictedbylawincertainjurisdic,ons,andanypersonintowhosepossessionanydocumentcontainingthisPresenta,onoranypartofitcomesshouldinformthemselvesabout,andobserve,anysuchrestric,ons.Certainstatements,beliefsandopinionscontainedinthisPresenta,onareormaybeforward-lookingstatements.Forward-lookingstatementscanbeiden,fiedbytheuseofforward-lookingterminology,includingtheterms“believes”,“es,mates”,“an,cipates”,“expects”,“intends”,“plans”,“goal”,“target”,“aim”,“may”,“will”,“would”,“could”or“should”or,ineachcase,theirnega,veorothervaria,onsorcomparableterminology.Theseforward-lookingstatementsincludeallmaTersthatarenothistoricalfacts.Bytheirnature,forward-lookingstatementsinvolverisksanduncertain,esbecausetheyrelatetoeventsanddependoncircumstancesthatmayormaynotoccurinthefutureandmaybebeyondtheCompany’sabilitytocontrolorpredict.Forward-lookingstatementsarenotguaranteesoffutureperformance.Norepresenta,onismadethatanyofthesestatementsorforecastswillcometopassorthatanyforecastresultwillbeachieved.Youarecau,onednottoplaceunduerelianceontheseforward-lookingstatements.Forward-lookingstatementsspeakonlyasofthedateofsuchstatementsand,exceptasrequiredbytheFinancialConductAuthority,theLondonStockExchangeorapplicablelaw,theCompanyundertakesnoobliga,ontoupdateorrevisepubliclyanyforward-lookingstatements,whetherasaresultofnewinforma,on,futureeventsorotherwise.

Introduc2on

4

•  Ayearofmassiveculturalchangewithintheorganiza2on,tocreateabestinclassteam

•  Intenseeffortstoright-sizeourbusinessfoot-print,improveourcost-compe22venessandbegintodiversifyourcustomer-base

•  Volexisungearedattheyear-end,andreadyforgrowth•  Ourstrategyhasbeento

•  exitloss-makingac2vi2es,andreduceourrelianceonourlargestcustomer;

•  andimproveworkingcapitalmanagementwhichhasresultedinverystrongcashgenera2onintheyear

•  Wecon2nuetoimproveoursalesandengineeringeffec2venessandweseeexci2ngopportuni2estogrowanddiversifyourbusinessinthefuture

SummaryofFY17Results

5

•  Strategytoreduceunprofitableac2vi2esresultedina13%salesreduc2on,however

•  grossmarginimprovedfrom16.4%to17.4%•  ongoingopera2ngexpensesreducedby13%from$53.2millionto$46.4million

•  Asaresult,preexcep2onalopera2ngprofitincreasedby26%to$9.1million

•  Strongfreecashflowgenera0on– endedtheyearinanetcashposi0onof$11.3million(comparedtonetdebtof$3.2millionattheprioryear-end)

RevenueProgression

6

•  Thetop3customersasapropor2onofthetotalsaleshasreduced:from47%inFY15to40%inFY17

•  Totalsalesdecreasedby13%inFY17asweexecutedourstrategytoexitloss-makingbusinessandtoimprovereturnoncapital

•  Excludingsalestoourlargestcustomer,revenuedeclinedby4%inFY17butrevenuequalityhasimproved

•  InH2sales,excludingsalestoourlargestcustomer,grewby1%.Ourcorebusinessisstar2ngtoreturntogrowthasweregainourcompe22veness

•  Factorynewbusinesshitrateismuchhigherthanintheprevious12months,aswehavefixedourquo2ngprocessandimprovedourefficiency

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

FY15 FY16 FY17

$millions

LargestCustomer OtherCustomers

VolexSales-last3years

Mainac2vi2esinFY17

7

•  StructuralCostReduc0onAc0vi0es•  ShrunkShenzhenfacilityinto2buildings(from4)tocopewithdeclineinrevenuefromour

largestcustomer

•  Closureofloss-makingBrazilfactory•  Reducedofficeandhubfootprint/exitonerousleases

•  LeanImplementa0on•  Completeac2onswithYomoinTijuanaandShenzhenfactories•  SeniorhiresinAsiaandUStoimproveopera2onalperformance

•  Focusonimprovingefficiencyandreducinginventory–clearprogressasevidencedbyimprovementingrossmarginandcashgenera2on

•  ImproveQualityandEnergyofSalesTeam•  LaunchednewSalesIncen2vePlanandincreasedperformance-basedpay

•  AgractedhigherqualitymanagementinEngineeringandSales•  FocusonROCEandjointnewproductdevelopmentwithcustomers

Improvedcompe++venesshasresultedinanumberofsignificantnewcustomerwins

Opportuni2esforVolexinthemediumterm

FY18isallaboutExecu0oninourSalesandOpera0ons

•  Sourcing1–thereisanopportunitytobegerleverageourglobalsourcingspend,andanewChinabasedglobalheadofsourcingstartsinAugust

•  Sourcing2–JVcablecompanyispoisedtowinsafetyapprovalsandshouldaddressastructuralcostdisadvantageinpower

•  Sourcing3–weplantoinvestinanewERPsystemoverthenext36monthswhichcantransformourcompe22veness

•  Asiasalesteamundernewleadership.Ourstrategyistogeneratehigher-qualitysalesmoreefficiently

•  Finally,withinvestment,thereisopportunitytogrowourTijuanaopera2onwhereweseestrongrevenuegrowthyearonyear

8

FinancialSummary

9

•  Grossmarginshaveimprovedduetofactoryra2onalisa2on,improvedefficiency,elimina2onofloss-makingsalesandprocurementefficiencies

•  Con2nuedfocusonopexreduc2onwitha13%reduc2onyearonyear

•  Excep2onalcostsinclude$12.5mof

fixedassetwrite-downs.Cashcostsof$2.4millionrelatedtorestructuringandlean-consultancy

•  Significantimprovementinpre-excep2onalpost-taxearningsandcashgenera2on

$m FY16 FY17 Change

Revenue 367.5 319.6 -13.0%

GrossProfit 60.4 55.5 -8.1%-GrossMargin 16.4% 17.4%

OperatingCosts (53.2) (46.4)

OperatingProfit 7.2 9.1 26.4%-OperatingMargin 2.0% 2.8%

ExceptionalItems/Sharebasedpayments (3.7) (15.6)FinanceCosts (1.9) (1.9)Tax (3.9) 1.5ProfitafterTax (2.3) (6.9)

UnderlyingEPS 1.5 9.5

CashGeneratedbyOperations 12.6 24.9

Net(Debt)/Cash (3.2) 11.3

Excep2onalCosts

10

•  Thelargestexcep2onalitemisanon-cashchargetoimpairthevalueofproduc2onassetsinShenzhen.Weareagemp2ngtoimprovethetermsoftradewithourlargestcustomerandthiswrite-offhighlightstheimportanceofafocusonROCE

•  Restructuringcostsreducedto$1.6mmadeupofcostsassociatedwiththeclosureofac2vi2esinBrazil,Ireland,Aus2n,JapanandJakarta

•  $0.8mspentonmanufacturingconsultancytocontributetoimprovedprofitmargin

$m FY16 FY17

Impairment/Productportfoliorealignment 1.5 12.5Restructuringcosts 2.7 1.6Manufacturingoptimisationconsultancy - 0.8Movementinonerousleaseprovision 1.1 0.3Provisionforhistoricsalestaxclaims -0.6 -Totalnon-recurringitems 4.7 15.2

CashimpactofExceptionalCosts 4.5 5.7

CableAssemblies

11

•  Salesdeclinedduetoendoflifeforinternalassembliesonlaptopswithourlargestcustomerandcon2nueddeclineofsalestoalargeEuropeantelecomcustomer(produc2onminiaturisa2onandreduceddemand)

•  Thisdeclinemasksstronggrowth,par2cularlyinourhighspeedbusinesswhichsellscablestosupportdatacentresandcloudstorage

•  Marginshaveincreasedduringtheyear,largelyduetoopexsavings

$m FY16 FY17 Change

Revenue 137.3 131.3 -4.4%GrossProfit* 30.6 27.9

GrossMargin* 22.3% 21.2%

OperatingCosts (20.8) (17.4)

OperatingProfit* 9.8 10.5 7.1%OperatingMargin* 7.2% 8.0%

*UnderlyingmeasurebeforeShareBasedPaymentsandExceptionalItems

PowerCords

12

•  Reduc2oninsalesmainlyduetothereduc2onofsalestoourlargestcustomer,togetherwiththedeliberateexitfromlowmargincustomers

•  Wereducedourfactorycoststoincreaseourgrossmargin.Inaddi2onloweropex

deliveredanincreaseinopera2ngprofit•  Steptakentoupgrademanagementofsales,engineeringandopera2onsinthe

PowerCorddivision

$m FY16 FY17 Change

Revenue 230.2 188.3 -18.2%GrossProfit* 29.8 27.5GrossMargin* 12.9% 14.6%

OperatingCosts (27.5) (24.3)OperatingProfit* 2.3 3.2 39.1%OperatingMargin* 1.0% 1.7%

*UnderlyingmeasurebeforeShareBasedPaymentsandExceptionalItems

CashGenera2on

13

-$5

$0

$5

$10

$15

$20

$25

$30

FY16NetDebt CashGenerated

fromOpera0ons

Cashu0lisedbynonrecurringitems

InterestandTax

Capex Other FY17NetCash

Sales($m)

Significantimprovementinouryear-endcashposi2onLloydsandHSBCcon2nuetosupportthegroupwitha$30mrevolvingcreditfacilityextendedtoJune2019

ReturnonCapital

14

•  Astherevenuehasdeclined,inventoryandtradereceivableshavereduced,genera2ngcashtoreducedebt

•  Thebusinesshasgeneratedsignificantcashflowduringtheyearandpaiddownthelongtermborrowingsbyover$10million

•  PPEhasreducedduetotheimpairmentofassetsinShenzhen.Thisreduc2oninassetshasdrivenanimprovementinthereturnonassets

•  Volexhasacleaner,leanerbalancesheetandsufficientcapitalresourcestopursueorganicgrowthinFY18

•  Taxlossesb/fof$139million•  Pensiondeficit$4.4million

$m FY16 FY17

Goodwill&Intangibles 3.7 3.0Property,PlantandEquipment 33.3 18.1Other 2.4 3.8Non-currentAssets 39.5 24.9Inventories 41.5 36.0Trade&otherreceivables 64.1 62.0Cashandbankbalances 30.7 29.6CurrentAssets 136.3 127.6Trade&otherpayables 74.6 76.2Overdraft 5.2 0.0Taxliabilities 6.2 5.3Other 2.6 1.1CurrentLiabilities 88.6 82.6Borrowings 28.8 18.2Provisions 1.9 0.1Other 5.1 5.4Non-currentLiabilities 35.8 23.7

NetAssets 51.4 46.2

ROCE(asatyearend) 13.2% 26.1%

Outlook

15

•  Currentexpecta2onsarethatrevenueswillshowarecoveryinFY18

•  PowerCordexpectedtoshowasmalldeclinewithimprovedmargin

•  CableAssembliespipelineisencouraging

•  Grossmargin%tobeconsolidatedatFY17levels

•  Opera2ngexpensesshouldshowasmallreduc2onasfullyearrun-ratesavingsarerealised

•  Cashgenera2ontoprovidefundstoinvestinfuturegrowth

Additional Information

Telecom Datacom

Transporta/on Industrial

Consumer

Our customers

Healthcare

8 world class manufacturing sites

Volex Chennai, India – 288pax

Volex Hanoi, Vietnam – 283pax

Volex Zhongshan, Guangdong – 1388pax

Volex Batam, Indonesia – 1200pax

Volex Heng Gang, Shenzhen – 1745pax

Volex de Mexico, Tijuana – 503pax

Volex Suzhou, China – 587pax Volex Poland, Bydgoszcz – 323pax