# TI Fluid Systems plc Strong organic growth, solid profit margins and free cash flow generation

- Link: https://www.directorstalkinterviews.com/ti-fluid-systems-plc-strong-organic-growth-solid-profit-margins-and-free-cash-flow-generation/412770073
- Published: 2019-03-20T07:35:55+00:00
- Author: Charlotte Edwards

**TI Fluid Systems plc** (LON:TIFS) today announced results for the 12 months ended
31 December 2018

TI Fluid Systems plc, a leading global manufacturer of automotive fluid storage,
carrying and delivery systems for light vehicles announces its 2018 results.

**Group Highlights:**

• Successfully executing our hybrid electric vehicle (“HEV”) and electric vehicle(“
EV”) strategy creating organic growth opportunities.

o Significant EV awards and expected additional orders for the design, engineering
and supply of thermal products with two leading high volume European Original Equipment
Manufacturers (“OEMs”)

o Lifetime revenue opportunity of approximately €700 million (customer planning 
volumes)

o Strategic progress in advancing share position of the HEV pressurised fuel tank
market and continuing to win thermal awards on available key EV platforms with Korean
and Chinese OEMs

• Strong financial results in 2018

• Revenue growth of 2.0% year over year (at constant currency) or 3.1% above global
light vehicle production growth volumes

• Solid Adjusted EBIT of €373.5 million and margin of 10.8%

• Profit for the year growth of €24.9 million to €140.1 million

• Adjusted Net Income growth of €19.2 million or 14.1% to €155.2 million with Adjusted
Basic EPS of 29.9 euro cents

• Significant Adjusted Free Cash Flow of €146.2 million

• Final dividend proposal of 5.94 euro cents per share, making 8.96 euro cents for
the full year

• Refinanced borrowing facilities repaying 8.75% senior unsecured notes using cash
and additional term loan reducing interest expense by ~ €10 million per annum

> **William L. Kozyra, Chief Executive Officer and President, commented:**
> “2018 was a great year for TI Fluid Systems. Despite a slight softening in global
> light vehicle production growth, we achieved strong organic growth, solid profit
> margins and free cash flow generation. The excellent progress delivered in executing
> our HEV and EV strategy in 2018, as well as our approach of continued and disciplined
> organic growth has positioned the Group well for 2019 and beyond.
> We continue to work on new design and engineering thermal management and pressurised
> tank opportunities with our existing customers as the electric market continues
> to progress. We are confident that our business model will continue to deliver
> consistent, strong financial performance along with attractive returns.”

**Results presentation**

TI Fluid Systems plc is holding a presentation to analysts and investors at 09:00am
UK time on 20 March 2019 at the offices of FTI Consulting, 200 Aldersgate Street,
London EC1A 4HD.

Analysts wishing to attend should contact FTI Consulting to register. Analysts unable
to attend in person may listen to the presentation live by using the details below.
Questions will only be taken at the event.

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