Severfield Plc · LSE:SFR
Severfield — Investor Day (April 2016)
31 slides from Severfield's investor day presentation, Apr 21, 2016
Slide 1: Capital Markets Day
Capital Markets Day 21 April 2016
Slide 2: Introduction
Capital Markets Day Ian Lawson Chief Executive Officer Introduction 2
Slide 3: Presenting / In attendance
Capital Markets Day Introduction Presenting In attendance Ian Cochrane Alan Dunsmore Chief Operating Director Group Finance Director Gary Wintersgill Wayne Barron Managing Director, Severfield (UK) Ltd Production Director Ian Dawson Design Associate Director Martin Kelly Strategic Business Developme
Slide 4: Agenda
Capital Markets Day Agenda • Composite Metal Flooring (CMF) • Adding value for our customers • Operational and IT improvements • Lunch • Introduction to factory tour • Factory tour • Q&A • Transport to station at 4:15pm
Slide 5: We remain well positioned to manage any change in UK steel supply
Capital Markets Day Steel industry update • UK steel remains an important part of our supply chain and is now being supported by UK Government in public procurement projects • Severfield procures three main steel types; sections, plate and tube • Sections are supplied by TATA Long Products, which is
Slide 6: Composite Metal Flooring (CMF)
Capital Markets Day Ian Cochrane Chief Operating Officer Composite Metal Flooring (CMF) 6
Slide 7: Composite Metal Flooring (CMF): The deal
Capital Markets Day Composite Metal Flooring (CMF) The deal • Deal completed on the 16 November 2015 • Severfield plc acquired 50% of the share capital of CMF Limited • Consideration £4.0 million • Plus additional consideration of £2.5 million based on the performance of the business
Slide 8: Composite Metal Flooring (CMF): The product
Capital Markets Day Composite Metal Flooring (CMF) The product Shear Stud connectors
Slide 9: Composite Metal Flooring (CMF): Business rationale
Capital Markets Day Composite Metal Flooring (CMF) Business rationale Severfield annual requirement: Decking – 0.5 million m2 Shear Studs – 2.0 million Current market, approximately: Decking – 4.0 million m2 Shear Studs – 12.0 million CMF volumes before Severfield: Decking – 1.0 million m2 Shear Stu
Slide 10: Composite Metal Flooring (CMF): Combined business
Capital Markets Day Composite Metal Flooring (CMF) Combined business Largest independent manufacturer of metal decking and shear stud connectors in the UK. Severfield plc Stud Welders Limited CMF 50% 50% Additional 500,000 m² 2,000,000 m² 1,000,000 m² usage Capacity Existing usage User and installer
Slide 11: Adding value for our customers
Capital Markets Day Gary Wintersgill Managing Director, Severfield (UK) Ltd Ian Dawson Associate Design Director Adding value for our customers 12
Slide 12: Adding value for our customers
Capital Markets Day Adding value for our customers Value Engineering Design Tender Fabrication Stage Project and Risk Management Early Contractor Involvement Construction (ECI) Performance and Repeat Business 13
Slide 13: Early Contractor Involvement (ECI)
Capital Markets Day Adding value for our customers Early Contractor Involvement (ECI) Early Contractor Involvement Increase plate thicknesses to reduce amount of stiffening in crane beams Increase span of gantry flooring
Slide 14: Project risks
Capital Markets Day Adding value for our customers Project risks Tender Stage • Budgets • Commercial • Design • Interface
Slide 15: Buildability
Capital Markets Day Adding value for our customers Buildability Tender Stage
Slide 16: Buildability
Capital Markets Day Adding value for our customers Buildability Tender Stage
Slide 17: What we can provide: Design
Capital Markets Day Adding value for our customers What we can provide Design Design primarily encompasses the following: • Permanent works design • Temporary works design • Connection design • Specialist lifting equipment design • Temporary stability analysis • Tender stage design/value engineering
Slide 18: How Severfield engineers create value
Capital Markets Day Adding value for our customers How Severfield engineers create value Design Value engineering • New ideas and solutions • Specialist knowledge as structural engineers • Provide a commercial edge • Repeat order business based on trust Fire engineering Behaviour steel in a fire ‘In
Slide 19: Fire engineering
Capital Markets Day Adding value for our customers Fire engineering Design Fabsec design - Value engineering steel floor beams Steel in a fire - How does the steel react in a fire - we do add value Special paint? - Intumescent paint – expands and protects the steel • Minimise steel and the amount of
Slide 20: Design and Build projects
Capital Markets Day Adding value for our customers Permanent works design Design and Build projects Design • Economic steel frame analysis and design • Designed to suit our fabrication process and facilities • Competitive Tender best design solution secures the project
Slide 21: Building The Shard
Capital Markets Day Adding value for our customers Complex temporary works and connection design Design Building The Shard
Slide 22: Connection design
Capital Markets Day Adding value for our customers Connection design Design Connection from primary truss to support towers is a true pin Allows rotation
Slide 23: Specialist temporary works
Capital Markets Day Adding value for our customers Specialist temporary works Design Tennison Road Bridge live launch
Slide 24: Specialist lifts
Capital Markets Day Adding value for our customers Specialist lifts Design Liverpool Football Club, Anfield Stadium 670 tonne tandem lift
Slide 25: Volumetric and specialist fabrication
Capital Markets Day Adding value for our customers Volumetric and specialist Fabrication 26
Slide 26: Sublime to the ridiculous: Construction
Capital Markets Day Adding value for our customers Sublime to the ridiculous Construction
Slide 27: Operational and IT improvements
Capital Markets Day Martin Kelly Strategic Business Development Director Kevin Campbell Business Improvement Associate Director Operational and IT improvements 28
Slide 28: Operational improvements: Current industry wide challenges
Capital Markets Day Operational improvements Current industry wide challenges Design • Complexity that comes from ‘engineered to order’ projects – every steel assembly is unique Manufacturing • Balancing lines for maximum throughput • Pockets of underutilisation within lines and facilities • Configu
Slide 29: Operational improvements: Current position
Capital Markets Day Operational improvements Current position Design process Concept design Detailed design Connection design Fabrication drawing Complex process with numerous information sources Phases Manufacturing process Semi Steel Logistics automated Manual Manual Logistics Site erection procur
Slide 30: Operational improvements: Why are we doing this?
Capital Markets Day Operational improvements Why are we doing this? • More with the same The skills shortage is real, and we need to enable our skilled staff and allow them to increase productivity levels • Remove pockets of underutilisation/inefficiency • Reduce costs per tonne and increase margin
Slide 31: Questions
Questions www.severfield.com