Investor Presentaiton
FREE CASH FLOW
VICTORIA PLC
Warren Buffett acquired Shaw Industries (world's 2nd largest flooring manufacturer) for its free
cash flow
Victoria PLC
Cash flow from operations¹: £64.3 million (full year FY18) = 99% EBITDA conversion
Free cash flow before exceptional items: £35.0 million (full year FY18)
High cash conversion
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Attractive supplier terms
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Good quality debtors
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Plant longevity
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Plant relatively inexpensive
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Consolidate production capability = increased utilisation
Product rationalisation (SKU reduction, increased stock turn)
Benefit
Rapid debt reduction during acquisition phase
High cash returns to shareholders once 'steady state'
Note 1: Cash flow from operations is before interest, tax and exceptional items
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