Bodycote Plc · LSE:BOY
Bodycote — H1 2007 Earnings Presentation
28 slides from Bodycote's earnings presentation, 2007
Slide 1: 2007 Interim Results
2007 INTERIM RESULTS Bodycote
Slide 2: Financial Highlights H1
Financial Highlights H1 CAGR 21% CAGR 20% 2006 Preliminary results 1 Pre exceptional items and interest and tax on associates. 2 2 Pre exceptional items and tax on associates. 2 2007 Interim results 3 Pre exceptional items and tax settlements in respect of prior year.
Slide 3: Highlights
Highlights 2006 Preliminary results 3 1 At constant currencies. 3 2007 Interim results 2 Pre exceptional items and interest and tax on associates.
Slide 4: Key Performance Indicators
Key Performance Indicators 2006 Preliminary results 4 4 2007 Interim results 1 to 8 see definitions in Appendix page 27
Slide 5: Interim Results
Interim Results 2006 Preliminary results 1 Pre exceptional items and interest and tax on associates. 55 2007 Interim results 2 Pre exceptional items and tax on associates. 3 Pre exceptional items and tax settlements in respect of prior year.
Slide 6: Profit Bridge – Heat Treatment
Profit Bridge – Heat Treatment (In £m) 40.0 +5.6 -4.1 +1.6 -0.9 -1.1 35.0 +4.2 30.0 25.0 20.0 32.9 27.6 15.0 10.0 OP 2006 Price increases Volume growth Cost increases Acquisitions Ionbond exchange OP 2007 Foreign 2006 Preliminary results 6 6 2007 Interim results Operating Profit is stated pre except
Slide 7: Profit Bridge - HIP
Profit Bridge - HIP (In £m) 10.0 +1.8 -0.5 -0.3 +0.5 5.0 6.0 7.5 0.0 OP 2006 Price increases Volume growth Cost increases exchange OP 2007 Foreign 2006 Preliminary results 7 7 2007 Interim results Operating Profit is stated pre exceptional items and interest and tax on associates
Slide 8: Profit Bridge - Testing
Profit Bridge - Testing In £m 15.0 +1.4 -0.6 -1.5 +1.6 -0.6 +1.6 10.0 5.0 9.6 11.5 0.0 OP 2006 Price increases Volume growth Cost increases Acquisitions Infrastructure exchange OP 2007 Foreign 2006 Preliminary results 8 8 2007 Interim results Operating Profit is stated pre exceptional items and inte
Slide 9: Sales and Operating Profit - By Region
Sales and Operating Profit - By Region 2006 Preliminary results 1 Pre exceptional items and interest and tax on associates. 9 * MEM: Materials Testing / Engineering Technology / Measurement Technology. 9 2007 Interim results ** HSE: Health Sciences and Environmental.
Slide 10: YoY Change in Sales / Operating Margins
YoY Change in Sales / Operating Margins 2006 Preliminary results 10 1 At constant currencies. 10 2007 Interim results 2 Pre exceptional items and interest and tax on associates.
Slide 11: Sales By Market
Sales By Market 2006 Preliminary results 11 11 2007 Interim results 1 At constant currencies.
Slide 12: Profit Reconciliation
Profit Reconciliation 2006 Preliminary results 12 12 2007 Preliminary results 1 Pre exceptional items and tax on associates.
Slide 13: Summary Cash Flow and Financial Ratios
Summary Cash Flow and Financial Ratios 2006 Preliminary results 13 1 Pre exceptional items and interest and tax on associates. 13 2007 Interim results 2 Rolling 12 months.
Slide 14: Balance Sheet
Balance Sheet 2006 Preliminary results 14 14 2007 Interim results
Slide 15: Heat Treatment
Heat Treatment H1H1 Revenue Revenue (£m) (£m) / Margin (%) • Sales + 14% 1 £m % 250 219.3 1 20 175.5 18 192.2 • Operating margin 15.6% 200 165.0 16 165.1 14 150 12 10 • ROCE now 9.3% (2006 8.2%) 100 8 6 50 4 • Energy cost increases recovered 2 0 0 2003 2004 2005 2006 2007 • Outsourcing H1 Operating
Slide 16: Hot Isostatic Pressing
Hot Isostatic Pressing H1 Revenue H1 Revenue (£m) (£m) / Margin (%) £m % 25 22.7 1 40 19.7 35 37.0 20 16 30 • Sales + 15.2% 1 13.5 25 15 20 • Operating margin 35.2% 10 15 10 5 5 • ROCE > 20% (2006 >20%) 0 0 2003 2004 2005 2006 2007 • Additional capacity planned H1H1 Operating Operating Profit Profit
Slide 17: Testing
Testing H1 Revenue (£m) (£m) H1 Revenue / Margin (%) £m % • Sales 1 £89.9m (+ 33.4%) 100 89.9 1 20 90 18 80 16 67.4 70 14 • Operating margin 13.5% 60 12 37.0 50 30.5 10 29.7 40 8 30 6 • ROCE now 17% (2006 20%) 20 4 10 2 0 0 2003 2004 2005 2006 2007 • Integrating acquisitions H1H1 Operating Profit Op
Slide 18: Delivering the Strategy
Delivering the Strategy • Increase importance of Testing • Expand the Group into developing manufacturing geographies • Intensify outsourcing initiatives 2006 Preliminary results 18 18 2007 Interim results
Slide 19: Current Trading and Prospects
Current Trading and Prospects • Aerospace, power generation, oil & gas continue to grow • Automotive gaining share • Energy costs steady • Outsourcing initiatives continue to deliver growth • Pipeline of bolt-on acquisitions c.40 prospects/c.£160m sales • Confident in prospects for rest of 2007 and
Slide 20: Appendix
2007 PRELIMINARY RESULTS Appendix
Slide 21: Analysis Of Organic/Acquisition Growth
Analysis Of Organic/Acquisition Growth 2006 Preliminary results 21 21 2007 Interim results 1 Pre exceptional items and interest and tax on associates.
Slide 22: Taxation
Taxation 2006 Preliminary results 22 22 2007 Interim results 1 Pre exceptional and prior period items.
Slide 23: Operational Locations
Operational Locations 2006 Preliminary results 23 23 2007 Interim results
Slide 24: Impact Of Exchange Rates
Impact Of Exchange Rates Sales Operating Profit 1 £m £m 2007 As Reported 317.6 48.2 2007 Using 2006 Rates 331.8 50.1 Impact (14.2) (1.9) 2006 Preliminary results 24 24 2007 Interim results 1 Pre exceptional items and interest and tax on associates.
Slide 25: Acquisitions, Capital Expenditure & Depreciation
Acquisitions, Capital Expenditure & Depreciation £ million Acquisitions Capital Expenditure 51 Depreciatio n 46 44 44 41 38 34 32 34 25 25 23 10 7 3 2003 2004 2005 H1 2006 H1 2007 2006 Preliminary results Capex/Dep 0.8x 0.8x 1.1x 1.1x 1.3x 25 25 2007 Interim results
Slide 26: Financial Highlights H1
Financial Highlights H1 Operating margins 1 EBITDA 1 15.2 14.3 14.5 80 72.8 15 63.2 11.7 53.5 48.6 45.2 % 10.0 10 £m 30 5 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 -20 Dividend Per Share 2 4 2.75 2.50 2.25 2.35 2.10 Pence 2003 2004 2005 2006 2007 2006 Preliminary results -2 1 Pre exceptional
Slide 27: Key performance indicators definitions
Key performance indicators definitions 1. Headline operating profit as a percentage of average capital employed. Capital employed includes tangibles and intangibles assets including all previously amortised/impaired goodwill and all non interests bearing assets and liabilities. Operating profit is s
Slide 28: Bodycote
Bodycote