Imi Plc · LSE:IMI
Imi — Investor Day (October 2013)
123 slides from Imi's investor day presentation, Oct 2, 2013
Slide 1: Capital Markets Presentation: Accelerating Growth
Capital Markets Presentation Accelerating Growth The long term drivers 2 October 2013
Slide 2: Disclaimer
Disclaimer These capital markets day materials include forward-looking content with respect to the markets in which the Group operates. Such content may be affected by a number of risks and uncertainties that can cause results and developments to differ materially from those currently anticipated. I
Slide 3: Welcome and Introduction
Welcome and Introduction Martin Lamb Chief Executive, IMI plc
Slide 4: Strategic convergence: focusing on the sweetspot
Strategic convergence Focusing on the ‘sweetspot’ • Shared progress through Capital Markets series over three years • Drive ‘sweetspot’ convergence to 75% by 2017
Slide 5: October 2011 – Fluid Technologies
October 2011 – Fluid Technologies
Slide 6: October 2012 – Niche Leadership
October 2012 – Niche Leadership 15% CDD Opps Efficiency Frozen Rail HydronicEnergy Sector Conditioning Sector Hydronic 10% Aftermarket Balancing Foodservice Variety, Nuclear Life Sciences Health Food & & Wellness Petrochem Beverage & Refin LNG Fossil Commercial Iron & Vehicle Steel 5% TRV's 0%
Slide 7: October 2013 – Growth Drivers
October 2013 – Growth Drivers • Opportunities arising from mega- trends • Understanding of engineering ‘need’ • Derivation of technology roadmap
Slide 8: Key messages
Key messages • Mega-trends will have a profound impact on our customers and end markets • Prime position to benefit based on market positioning and technologies • Technology roadmaps in place …… and brimming! • Pathway to higher returns clear cut ……execution is key
Slide 9: Agenda
Agenda Welcome & Introduction Martin Lamb Long term growth drivers Roy Twite Mega-trend driven growth opportunities - LNG: New growth opportunities Rob Campbell - Petrochemical: Positive impact of shale gas Metin Gerceker - Commercial Vehicles: Tomorrow’s truck Mark Sealy Break for refreshments Mega
Slide 10: Long Term Growth Drivers
Long Term Growth Drivers Roy Twite Executive Director
Slide 11: Growth drivers – agenda
Growth drivers – agenda 1. Major global trends 2. Creating engineering requirements 3. Driving IMI’s technology road map
Slide 12: Growth drivers – mega-trends
Growth drivers – mega-trends Climate change Urbanisation Resource scarcity Ageing population long term sustainable global
Slide 13: Climate change: greenhouse gas emissions
Climate change “From 1990 to 2030 greenhouse gases are expected to increase by between 25% to 90%” Source: Frost & Sullivan
Slide 14: Climate change: low-carbon energy markets
Climate change “Markets for low-carbon energy products are likely to be worth at least $500bn per year by 2050” Source: Frost & Sullivan
Slide 15: Resource scarcity: energy demand
Resource scarcity “A 40% increase in energy demand is forecast by 2030” Source: Frost & Sullivan
Slide 16: Resource scarcity: energy investment
Resource scarcity “An additional $26trn of investment required to support increasing energy demands” + 50 GW Source: Frost & Sullivan
Slide 17: Resource scarcity: shale gas
Resource scarcity “Shale gas reserves are expected to make the US energy independent by 2020” Source: Frost & Sullivan
Slide 18: Urbanisation: urban population growth
Urbanisation “Between 2009 & 2050, urban population will double to 6.4 billion people” Source: Frost & Sullivan
Slide 19: Ageing population: over 60s
Ageing population “Between 2000 and 2050 the proportion of people over 60 will double from 11% to 22%” Source: Frost & Sullivan
Slide 20: Ageing population: healthcare spending
Ageing population “Two-thirds of healthcare spending goes on people over 65 years old” Source: Frost & Sullivan
Slide 21: Mega-trends to IMI technology roadmap
Mega-trends to IMI technology roadmap Understand the Understand the Understand how mega-trends and customer‘s that translates into sub-trends they engineering new technology drive requirements developments
Slide 22: Our niches
Our niches Future CAGR CDD Opps 15% Efficiency Frozen Rail Sector Hydronic Energy Conditioning Sector Hydronic 10% Aftermarket Balancing Foodservice Variety, Nuclear Life Sciences Health & Food & Wellness Petrochem Beverage LNG & Refin Fossil Commercial Vehicle Iron & Steel 5% TRV's Leadership posit
Slide 23: Niche leadership – LNG
Niche leadership – LNG The Niche : Severe Service application valves & actuation into LNG plants Niche Size c.£210m Growth CAGR 2012-2017 IMI Share % <10 10-20 20-30 >30 Industry growth Source: IEA, Douglas 6 - 8% Westwood Market 1 Position Niche growth 6 - 8% Key Koso, PBVS, Severn Glocon, Competit
Slide 24: Prioritising projects
Prioritising projects Smart Choices…… • Dragons Den/Shark Tank KAM – Choosing winning :- • End market drivers • Fit with strategy • Customers • Projects • Value proposition Backing winners • Competitive position Fluid Power Dragons Den
Slide 25: Climate change
Engineering Advantage Climate change
Slide 26: Climate change – implications
Climate change – implications ENGINEERING TRENDS REQUIREMENTS Move to combined cycle Control of huge gas in powergen pressure drops Power plant efficiency Higher temperature materials Less flaring Pressure protection systems Climate Commercial Vehicle fuel Waste Heat Recovery change efficiency legis
Slide 27: Climate change – technology roadmap
Climate change – technology roadmap Analytical Zero leakage chromatography seals / fugitive valves for gas emissions analysis monitoring Range of energy District Energy efficient beverage Products coolers Terminal unit Smart Valve and New TRV with balancing & Flow Control Actuator control valves Nuc
Slide 28: Climate change – truck engines
Climate change – truck engines 2006 engine (Eu3) 2018 engine (US) IMI opportunity: €50 per truck €900 per truck
Slide 29: Resource Scarcity
Engineering Advantage Resource Scarcity
Slide 30: Resource scarcity – implications
Resource scarcity – implications ENGINEERING TRENDS REQUIREMENTS More extreme extraction Higher pressure valve e.g. deep sub sea sealing Faster response Gas transportation / LNG compressor control valves Smaller envelope, Floating platforms – lighter weight FPSOs and FLNG Resource cryogenic valves s
Slide 31: Resource scarcity – technology roadmap
Resource scarcity – technology roadmap Redundant Valve District Energy Manifold for ESD Products HIPPS control Smart Valve and system for Actuator upstream Oil & Gas Automated manual CV – Waste Heat Customised transmissions Recovery valves for Catofin Rapid response Optimised valves positioner for C
Slide 32: Resource scarcity – polymers
Resource scarcity – polymers Cracking Dehydrogenation IMI opportunity: £3m per install Up to £18m per install
Slide 33: Urbanisation
Engineering Advantage Urbanisation
Slide 34: Urbanisation – implications
Urbanisation – implications ENGINEERING TRENDS REQUIREMENTS Increased demand for power, energy efficient More precise flow buildings control Increasing freight Lower weights transportation & energy efficiency Increased demand for More reliability, mass transit faster access Urbanisation Increasing c
Slide 35: Urbanisation - technology roadmap
Urbanisation - technology roadmap CV– Bus HVAC valves Emissions control Rail air dryer for off-highway systems vehicles Train door control Terminal unit balancing & CNG valves and District energy systems products control valves regulators Balancing & control calve Automated range Beverage Dispenser
Slide 36: Urbanisation – evolving buildings
Urbanisation – evolving buildings HVAC System 2005 Smart HVAC System 2017 • Balancing and differential pressure control valves • Balancing & control valves • Basic terminal valves • Smart valves & actuators • Full terminal valve offer • Pressurisation and water quality portfolio • Connectivity and m
Slide 37: Ageing population
Engineering Advantage Ageing population
Slide 38: Ageing population – implications
Ageing population – implications ENGINEERING TRENDS REQUIREMENTS Increased demand for Smaller, lighter healthcare Out of hospital Lower Power treatment Increasing patient Ease of use, robustness expectations Prevention vs treatment Reduce sample and reagent Ageing size, micro dosing population More
Slide 39: Ageing population - technology roadmap
Ageing population - technology roadmap Disposables & consumables Laminated Condition manifold monitoring & technology dispense confirmation Chromatography Micro multiport valves & proportional Proportional fittings valves valves for liquids Configurable Separation High flow syringe pump technology (
Slide 40: Ageing population – respiratory care
Ageing population – respiratory care 2003 portable ventilator 2013 portable ventilator Weight: 6.5 KG Weight: 0.5KG IMI opportunity = £200/device IMI opportunity = £250/device .
Slide 41: IMI Group technology roadmap
IMI Group technology roadmap Redundant Valve District Energy Manifold for ESD Products HIPPS control Smart ValveZero and leakageDisposables & system CV– Bus forHVAC Analytical consumables Actuator seals / fugitive upstream Oil & valves chromatography Laminated valves for gascontrol emissions Conditi
Slide 42: Filling the technology gaps
Filling the technology gaps • Some technology needs will be met via: • Acquisition, licencing, joint ventures • Potential adjacent markets include: - Sub-sea valves and actuation - Complex controls and electronics - Sensors - Specialist filtration
Slide 43: Group technology roadmap impact
Group technology roadmap impact Adjacencies LNG Nuclear • Underlying growth in niche Fossil markets 5-7% Petrochem Iron & Steel • c.£400m of revenue coming Commercial Vehicle Life Sciences from new products in 2017 Food & Beverage Rail • Incremental growth from Energy new products 2-3% Hydronic Bala
Slide 44: Mega-trend driven growth opportunities
Mega-trend driven growth opportunities • LNG New growth opportunities Rob Campbell • Petrochemical Positive impact of shale gas Metin Gerceker • Commercial Vehicles Tomorrow’s truck Mark Sealy
Slide 45: Mega-trend driven growth opportunities
Mega-trend driven growth opportunities • Life Sciences Healthcare of the future Robert Guerra • Indoor Climate Smart buildings Stefan Seitz • Beverage Restaurant of the future Mike Coombes
Slide 46: LNG: New growth opportunities
LNG New growth opportunities Rob Campbell Sales Director, Northern Europe
Slide 47: Niche leadership – LNG
Niche leadership – LNG The Niche : Severe Service application valves & actuation into LNG plants Niche Size c.£210m Growth CAGR 2012-2017 IMI Share % <10 10-20 20-30 >30 Industry growth Source: IEA, Douglas 6 - 8% Westwood Market 1 Position Niche growth 6 - 8% Key Koso, PBVS, Severn Glocon, Competit
Slide 48: Mega-trends – driving growth in LNG
Mega-trends – driving growth in LNG Mega-trends Sub-trends IMI opportunity Climate Abundant US shale New solenoid change gas valves for ESD Increased demand Coal → Gas HIPPS powergen Economic fuel More compact, light Resource weight valves for scarcity switch FLNG Nuclear → Gas Massive exploration –
Slide 49: Harnessing the growth opportunity
Harnessing the growth opportunity Support global engineering for O&G Majors Redundant Valve Subsea LNG Manifold for ESD valves Optimised valves Fast Trak / Quick for Floating LNG valves for Trak Platforms marine engines Ball valves for oil Safety Integrity Optimised valves Commercial & gas <1000bar
Slide 50: Recent successes in LNG
Recent successes in LNG Recent LNG projects awarded: Australia Pacific LNG 9mtpa Gladstone LNG 3.5mtpa Ichthys LNG 10mtpa Sabine Pass 1 & 2 LNG 10mtpa Prelude (Shell) FLNG 3.6mtpa PNG Papua New Guinea 6.9mtpa Approx. £85m in value
Slide 51: Forthcoming LNG projects
Forthcoming LNG projects LNG projects pipeline Gorgon 4 (Australia) 2014 Yuedong LNG (China) 2014 Mozambique LNG 2014 LNG Carriers S1015-S1017 2014 Petronas (Malaysia) – FLNG 2014 Browse (Australia) now FLNG 2015 India H-Gas LNG gateway 2015 Yamal (Russia) 2015 Cove Point (US) 2013 The opportunity S
Slide 52: Floating LNG
Floating LNG Why Floating LNG? • Addresses environmental constraints • More economical • Can be relocated • More suitable for small gas fields Floating LNG Projects • Shell Prelude • Browse, Australia • Petronas (Malaysia)
Slide 53: New FLNG designs – meeting needs
New FLNG designs – meeting needs Design for • lightweight • streamlined castings • DRAG for low noise characteristic Designs validated by our Valve Doctors and flow capacity and stress analysis using CFD and FEA Original design New design CFD studies
Slide 54: Floating example – Prelude
Floating example – Prelude Prelude – world’s first FLNG • Many valve packages (to date, design not finalised) • Need to be approved/certified by Shell & Technip • IMI has won 75% of all packages for ball and butterfly isolations valves LIQUEFACTION PROCESS VALVE GAS TREATMENT (Cryogenic Process) Top
Slide 55: Other growth opportunities in LNG
Other growth opportunities in LNG • Noise – manned floating platforms • Lightweight but maintain CV (capacity) • Fast response, precise control
Slide 56: Summary: LNG Opportunity
Summary LNG Opportunity • The mega-trends are driving growth in LNG of 6-8% • Sub-trend towards Floating • Terminal process reversal in US • Niche leadership in Severe Service valves in LNG is captured through • Valve Doctor & engineering expertise • Design Partnership – Key LNG & EPC players • Surg
Slide 57: Petrochemical: Positive impact of shale gas
Petrochemical Positive impact of shale gas Metin Gerceker Managing Director, Zimmermann & Jansen
Slide 58: Niche Leadership – Petrochemical
Niche Leadership – Petrochemical The Niche: Severe service in several key applications; Delayed Coking (DC), Fluid Catalytic Cracking (FCC), Ethylene/Propylene (Catofin) and Purified Terephthalic Acid (PTA) Niche Size c.£180m Growth CAGR 2012-2017 10- Industry growth 2 - 4% IMI Share % <10 20-30 >30
Slide 59: Mega-trends – driving growth in Petrochemical
Mega-trends – driving growth in Petrochemical Mega-trends Sub-trends IMI opportunity Shale & LNG Climate demand reduced High temperatures change gas costs US investing in Highly corrosive new petrochem materials plant Duplicated safety Resource Increased valve systems scarcity demand for plastics Fr
Slide 60: Harnessing the growth opportunity
Harnessing the growth opportunity Every product is Variable orifice engineered to order valves Butterfly valves Double disc Partial stroking through conduit solenoid valves Through conduit New ball valves valves for processes Hydraulic Fugitive Goggle valves actuation for emissions Catofin valves mo
Slide 61: Recent successes in Petrochemical
Recent successes in Petrochemical Recent Petrochemical projects awarded: Enterprise Catofin® (US) Reliance PTA (India) PDVSA (Venezuela) TANEKO (Russia) Wood River (US) TongYi (China) Hengli Petrochemical (Dalian, China – PTA) Project value c.£55m
Slide 62: Forthcoming Petrochemical projects
Forthcoming Petrochemical projects Selected Petrochem projects pipeline Atyrau Kazakhstan Refinery PetroPeru Talara Coking EIL – BPCL Kochi Refinery, India FCC & Coker SK Gas S. Korea Catofin® KPI Kazakhstan Catofin® GS Trakreer Refinery, India FCC Petrologistics/JGC Catofin® Shangdong II China Cato
Slide 63: Winning in Petrochemical
Winning in Petrochemical Catofin dehydrogenation • Converts feedstock (propane) into plastic (propylene) for commercial use • Severe service valves: − Air inlet and outlet − Steam purge − Hydrocarbon inlet/outlet − Evacuating • Up to £18m per plant Delayed Coker Units • Thermal cracking to produce h
Slide 64: Winning in Petrochemical
Winning in Petrochemical Fluid Catalytic Cracking • Converts heavy gas oil into gasoline and diesel • Severe service valves: − Sliding gate valves around the fractionator (c50-60 tonnes) − Goggle valves around precipitator − Turbo expander butterfly valves • Up to £3.5m per plant
Slide 65: Meeting the Severe Service valve needs
Meeting the Severe Service valve needs Unique needs of FCC & Delayed Coker • Very high temperature – 750 to 1,650°C • Extremely corrosive environment • Maximum reliability – install for 25 year life
Slide 66: Delayed Coker – Severe Service
Delayed Coker – Severe Service GDP growth leads to demand – e.g. Rosneft, Russia Double Disc Through Conduit slide gate valves Typical Coking plant & goggle valves
Slide 67: Catofin plant – Severe Service
Catofin plant – Severe Service • Air inlet & outlet valves • Hydrocarbon inlet & outlet valves • Hydraulic actuators, control system
Slide 68: Summary: Petrochemical Opportunity
Summary Petrochemical Opportunity • The mega-trends and sub-trends are driving growth in Petrochemical of 2 – 4%% • Niche leadership in Severe Service valves in Petrochemical are captured through: • Engineering know-how & expertise • Bespoke solutions • Proven track record of reliability over a larg
Slide 69: Commercial Vehicles: Tomorrow's truck
Commercial Vehicles Tomorrow’s truck Mark Sealy Global Technical Director CV Sector
Slide 70: Niche Leadership – Commercial Vehicle
Niche Leadership – Commercial Vehicle The Niche; robust, precise pneumatic and fluids control for heavy duty commercial vehicles – engine valve control, transmission automation and chassis cab applications Niche Size c.£580m Growth CAGR 2012-2017 IMI Share % <10 10-20 20-30 >30 Industry growth 3 - 5
Slide 71: Mega-trends – driving growth in Commercial Vehicles
Mega-trends – driving growth in Commercial Vehicles Mega-trends Sub-trends IMI opportunity Emissions Clean engine Climate control legislation development change Environmental After treatment control <CO2 Improved fuel Waste Heat Resource consumption Recovery scarcity Freight efficiency Reduce rollin
Slide 72: Harnessing the growth opportunity: strategic value
Harnessing the growth opportunity Amplify Strategic value New throttle Prop Waste Heat pneumatic Electric AIT ISIS UTHV 2 Wastegate Growth Digital pair FormFit Seat Water valves Asia Trans Air prep Fuel Mechanical CNG/LNG pneumatic Axle mgmt Tyre inflate Cab switches ERHC Evaluate ZF, Eaton Sustain
Slide 73: Recent successes
Recent successes Norgren emissions technologies to address pollution and climate change Proportional pneumatic Electric Throttle Urea tank Wastegate heating Purge air
Slide 74: Increasing vehicle sophistication = more potential
Increasing vehicle sophistication = more potential 2006 engine 2018 engine 74
Slide 75: Extending our technology into emerging markets
Extending our technology into emerging markets e.g. Level 4 emissions & secondary braking legislation in BRIC Retarder & shift assist Wastegate control Gearbox Interlock EGR control 75
Slide 76: The road to 2020 – CO2 reduction imperative
The road to 2020 – CO2 reduction imperative • US 2012 legislation requires 17% less CO2 for Class 8 trucks (for a freight-ton-mile) by 2018 • Europe to reduce greenhouse gases from the transport sector by 20% between 2008 and 2030 Typical CO2 output
Slide 77: CO2 reduction – every aspect of fuel usage examined
CO2 reduction – every aspect of fuel usage is examined Over 50% of the fuel is wasted directly as heat Every facet will be improved Exhaust 22% s
Slide 78: CO2 reduction – what it means by 2020
CO2 reduction – what it means by 2020 • 10 - 30% of commercial vehicles will have converted to natural gas • Rankine cycle waste heat recovery will be deployed • Advanced & active aerodynamics will be common • Super single tyres will pervade with inflation management • Auxiliary Power Units will be
Slide 79: Conversion from diesel to natural gas is accelerating
Conversion from diesel to natural gas is accelerating
Slide 80: Natural gas presents several fluid control opportunities
Natural gas presents several fluid control opportunities
Slide 81: Waste Heat Recovery – a strategic new opportunity
Waste Heat Recovery – a strategic new opportunity Typical operating conditions • 350Kw engine > 100Kw waste heat > 30Kw can be recovered > 5% real life fuel saving • 200g/sec flow rate, -40ºC to 300°C, 30 Bar Ethanol (vacuum sealed for life)
Slide 82: We have made good progress in 12 months
We have made good progress in 12 months • Market potential for valves in Europe and US > £100M • 100% sweet spot convergence • 4 OEM customer programmes > strategic co-developments • 4 differentiated valve solutions > 3 significant patents • Deep collaboration between Fluid Power & Severe Service •
Slide 83: Summary: Commercial Vehicle opportunity
Summary Commercial Vehicle opportunity • The mega-trends will continue to drive growth in the CV niche by 4 to 6% • Niche leadership in CV is captured through • Proven range of products that operate in extreme environments (temperature & vibration, long life expectancy) • Proven track record creatin
Slide 84: Life Sciences: Healthcare of the Future
Life Sciences Healthcare of the Future Robert Guerra President, Norgren Americas
Slide 85: Niche Leadership – Life Sciences
Niche Leadership – Life Sciences The Niche: providing application specific solutions for the most critical precision fluidic applications in medical devices, diagnostics and analytical equipment. Niche Size c.£520m Growth CAGR 2012-2017 IMI Share % <10 10-20 20-30 >30 Industry growth 4 - 6% Source:
Slide 86: Mega-trends – driving growth in Life Sciences
Mega-trends – driving growth in Life Sciences Mega-trends Sub-trends IMI opportunity High flow proportional Climate Rising costs of valves change healthcare Electronic pressure & flow Point of care / control fast results Chromatography Resource multiport valves scarcity Food / drug / Configurable en
Slide 87: Analytical Flow Products (AFP) acquisition
Analytical Flow Products (AFP) acquisition Analytical Flow Products (AFP) acquisition -A strategic fit for Life Sciences
Slide 88: Life Sciences technology roadmap
Life Sciences technology roadmap Laminated manifold technology Chromatography Micro 6mm multiport valves & solenoid valves fittings Configurable DC & closed- High flow looped intelligent syringe pump proportional valve pumps technology Analytical Analytical Miniature media proportional gas/liquid se
Slide 89: Analytical technologies' impact on healthcare
Analytical technologies’ impact on healthcare Analytical technologies will impact the future of healthcare • Drug discovery • Pre-Symptomatic diagnostics • Personalised therapy • Pharmacogenomics • Personalised medicine Norgren opportunity • Genomics-Microarray equipment • Genomics-DNA amplification
Slide 90: Norgren LMT for Genomic OEMs
Analytical technologies’ impact on healthcare Norgren LMT for Genomic OEMs Laminated Manifold Technology (LMT) enables Genomic OEMs Laminated the ability to accurately move Ageing Genomics / Manifold small samples and multiple population Microarray Technology reagents at high speeds. Life Sciences t
Slide 91: Norgren FAS solenoid valve technology for Genomic OEMs
Analytical technologies’ impact on healthcare Norgren FAS solenoid valve technology for Genomic OEMs Miniature Media Separated Solenoid Valves. FAS solenoid valves help the Miniature media OEM reduce the overall footprint of their Ageing Genomics / separated instrument, use less reagents, and popula
Slide 92: Case study – single cell genomics
Case study – single cell genomics Laminated Manifold Ageing Genomics / Technology population Microarray Miniature Media Separated Valves Customer: » Leading single cell genomics manufacturer Trend: » Prevention vs. treatment, personalised medicine Opportunity: » Precision fluidic assembly for single
Slide 93: Case study – digital Polymerase Chain Reaction
Case study – digital Polymerase Chain Reaction Laminated Manifold Ageing Genomics / Technology population Microarray Miniature Media Separated Valves Customer: » Leading digital Polymerase Chain Reaction manufacturer Trend: » Prevention vs. treatment, personalised medicine Opportunity: » Air-over li
Slide 94: Summary: Life Sciences opportunity
Summary Life Sciences opportunity • The mega & sub-trends are driving growth in Life Sciences of 4 - 6% • Niche leadership in Life Sciences is captured through • Providing application-specific solutions for the most critical precision fluidic applications in medical, analytical, and diagnostic marke
Slide 95: Smart Buildings
Smart Buildings Stefan Seitz VP Business Development, TA Hydronics
Slide 96: Niche Leadership – Indoor Climate Hydronics
Niche Leadership – Indoor Climate Hydronics Hydronic Balancing, Hydronic Conditioning & Thermostatic Control • Critical to the overall performance and energy consumption of HVAC system • We are unique in our combined offer European Balancing c.£170m GLOBAL CAGR 2012-2017 IMI Share % <10 10-20 20-30
Slide 97: Building's evolution
Building’s evolution Smarter Building, Building Eco-District performance Building controls “final” Oil crisis??? Building •Sustainable buildings End of Asia crisis => and eco-cities envelope strong econ. growth •De-central, 2nd Gulf War: •Improvement of regenerative energy system efficiencies genera
Slide 98: Mega-trends – driving growth in Hydronics
Mega-trends – driving growth in Hydronics Mega-trends Sub-trends IMI opportunity District Energy to North America Climate grow 25%+ change Emerging Markets Comfort & productivity Measurement & Diagnostics Focus shift to “greening” existing Resource buildings Pre Fab Systems scarcity From eco-efficie
Slide 99: Indoor Climate technology roadmap
Indoor Climate technology roadmap Equalizer Control TA SCOPE Valve (USA) upgrade (measuring Terminal Unit valve for device) Emerging markets Apartment USA Potable Next Generation prefab stations Water Valve Braincube for (Heating & Pressurisation Cooling) EcoEfficient De- (water quality) Gassing Uni
Slide 100: At the heart of what we do: Energy Insights
At the heart of what we do Energy Insights When comparing a non balanced with a balanced system, electrical pumping and energy costs can be significantly reduced whilst enhancing comfort: Indoor Climate projects proven energy savings: • Hammarplast Consumer factory, Sweden (61%) • Tianjin Saixiang H
Slide 101: At the heart of what we do: Energy Insights
At the heart of what we do Energy Insights • In heating systems, the room temperature being 1°C too high costs 6% to 11% of the annual plant energy consumption • ICG Renovation Project: MOL, Hungary (27% Energy saving) • In cooling systems, the room temperature being 1°C too low costs 12% to 18% of
Slide 102: Driving energy efficiency in buildings
Driving energy efficiency in buildings • Small things can make a BIG difference The use of accurate thermostatic radiator valves can provide energy savings of up to 28% compared to the use of manual valves* • Consideration of a single Thermostatic control valve (vs manual valve) • Saving on consumpt
Slide 103: Driving energy efficiency in buildings
Driving energy efficiency in buildings • There are an estimated 600 million manual valves still used in Europe today. • Example Europe: converting all manual to thermostatic control valves • Saving on consumption – oil (gas) 42 billion litres (m³) /yr • Cost reduction 32 billion EUR /yr • Payback 1
Slide 104: Winning in the Niche: BBVA HQ
Winning in the Niche BBVA HQ • Occupancy from Sept 2013 (multi phase development) • 6000 employees • 7 buildings (inc a 22 storey tower) • £1m opportunity for ICG • Energy saving target of 30% • LEED accreditation sought • Proven results
Slide 105: Summary: Hydronics Opportunity
Summary Hydronics Opportunity • The Mega Trends are driving growth in Hydronics with the sub trends creating specific opportunities • Niche leadership in Hydronics is captured through • Translating trends into customer value • Global infrastructure • Our Technology development delivers: • Energy eff
Slide 106: Beverage Dispense: Restaurant of the Future
Beverage Dispense Restaurant of the Future Mike Coombes Commercial Director, North West Europe IMI Cornelius
Slide 107: Niche leadership – Beverage
Niche leadership – Beverage The Niche: Foodservice operators are investing in new BEVERAGE dispensers that will drive both incremental sales through variety; better for you choices and increase profitability from store efficiencies Niche V,E, H&W Op Eff Niche V,E, H&W Opp Eff Niche Size c.£130m c.£4
Slide 108: Mega-trends are impacting restaurants
Mega-trends are impacting restaurants Mega-trends Sub-trends Impact Climate Energy $2bn Efficiency Annual Energy bill for change McDonald's Restaurants globally Resource Labour 10.5% Wage increases scarcity Savings expected in emerging markets by end of 2013 Right sized $1,500 Urbanisation Equipment
Slide 109: Global restaurant market
Global restaurant market Global restaurant industry will generate $1.8 trillion revenue by end of 2015 ‒ Fast-food sector $240b in 2014, a 19% increase during last 5 years ‒ QSR’s represent largest segment, with 71% of global market value ‒ Competing for consumer footfall and up selling opportunitie
Slide 110: Beverages generate high profit potential
Beverages generate high profit potential Gross margins 20% - 40% higher than food Source: Technomic
Slide 111: Global foodservice market trends for Beverage
Global foodservice market trends for Beverage Beverages are central to Beverage day part growth opportunity successful strategy 500 450 Beverages drive consumer 400 traffic throughout the day 350 Specialty beverages provide 300 incremental day part 250 opportunities 200 150 Variety above all 100 50
Slide 112: Opportunities for IMI to grow in the Beverage niche
Opportunities for IMI to grow in the Beverage niche Mega-trends Sub-trends IMI opportunities Climate Energy HFC-free gases change Efficiency Automation Miniaturisation Emerging Markets Resource Labour scarcity Fit for purpose Savings Health & Wellness Social Media Urbanisation Right sized Hot & cold
Slide 113: Driving IMI's beverage technology development
Driving IMI’s beverage technology development IMI opportunities Technology roadmap HFC free gases Cooling Remote Cooling Valves Cooling Automation Microdosing Rack Refrigeration Cooling Miniaturization HFC-free Emerging Markets Merchandising Modular Valves Fit for purpose Self Cleaning Merchandising
Slide 114: Creating new product development opportunities
Creating new product development opportunities Product roadmap Emerging Markets all in one Systems Digital Display Towers Self Serve Towers – Batch Carbonator for Consumer Engagement organic sodas Enhanced Water Fountain Touch Screen Dispensing Automated Beverage Residential carbonated System Multip
Slide 115: Key projects
Engineering Advantage
Slide 116: Helix blended ice drinks system
Helix blended ice drinks system Opportunity | A fully automated blend-in-cup blended ice drinks system for QSR Te c h no l ogy Result S u b Tr e n ds t o C u s t o me r Va l ue R i ght -s ized e qui pm ent Ratio & blending technology ~10% smaller in footprint ~50% more ice capacity Optimized
Slide 117: Automated Beverage System (ABS)
Automated Beverage System (ABS) Opportunity |Next generation fully automated beverage delivery system that can specifically for drive through QSR’s... in US markets drive through sales account for up to 70% of revenue Te c h no l ogy Result S u b Tr e n ds t o C u s t o m e r Va l ue R i g h t - s i
Slide 118: Batch carbonator for hand-crafted sodas
Batch carbonator for hand-crafted sodas Opportunity | To enable an operator to uniquely hand-craft and batch carbonate a variety of soda’s on a compact footprint Te c h no l ogy Result S u b Tr e n ds t o C u s t o m e r Va l ue R i g h t - s i z e d e q u i pm e nt Batch Carbonation Compact and
Slide 119: Summary: Beverage Opportunity
Summary Beverage Opportunity • The mega trends are driving growth in Beverage Dispense of 5% - 7% • Sub trends creating specific growth opportunities with global chains as well as with beverage brand owners. • Niche leadership in Beverage Dispense is captured through • Customer intimacy with beverag
Slide 120: Summary and Conclusions
Summary and Conclusions Martin Lamb
Slide 121: Driving sweetspot convergence
Driving sweetspot convergence 2013 H1 sweetspot 60% Higher underlying market growth Supported by favourable mega-trends and sweetspot niches +3% strong emerging markets growth EM sales to increase from 24% to 35% Directed by detailed technology roadmaps Growth and market share gains Supported by acc
Slide 122: Key messages
Key messages • Mega-trends will have a profound impact on our customers and end markets • Prime position to benefit based on market positioning and technologies • Technology roadmaps in place …… and brimming! • Pathway to higher returns clear cut ……execution is key
Slide 123: Questions and Answers
Questions and Answers Executive Directors