Imi Plc · LSE:IMI

Imi — FY2021 Earnings Presentation

26 slides from Imi's earnings presentation, February 2022

  1. Slide 1: 2021 Preliminary Results

    IMI plc 2021 Preliminary Results Roy Twite – Chief Executive Daniel Shook – Finance Director

  2. Slide 2: Key messages

    IMI plc Key messages  Further strategic and operational progress made across the business  7% organic sales growth, 18% organic adjusted operating profit growth  Increased organic revenue, adjusted profits and margins across the divisions  Growth Hub and Sprint Teams delivered £23m orders, momen

  3. Slide 3: Business review

    IMI plc Business review Daniel Shook – Finance Director

  4. Slide 4: Organic revenue and operating profit

    IMI plc Organic revenue and operating profit £m 2021 2020 Adjusted Organic Growth (%) Growth (%)* Revenue  Group organic revenue growth 7% and organic adjusted operating IMI Precision Engineering** 836 813 3% 7% profit growth 18% IMI Critical Engineering** 691 707 -2% 2%  Group adjusted operating

  5. Slide 5: Income statement

    IMI plc Income statement £m 2021 2020 Adjusted operating profit 318.1 284.7  Net interest expense larger due to non- Net interest expense (12.1) (11.0) repeat of one-off credit in 2020, Adaptas funding expected to add £2m interest in Net pension finance income 1.0 0.2 2022 Adjusted profit before ta

  6. Slide 6: Rationalisation plans

    IMI plc Rationalisation plans £m 2021 2022 Future years Restructuring charge (including impairment losses) IMI Precision Engineering (36) (29) (35) IMI Critical Engineering (1) (13) - IMI Hydronic Engineering (3) (1) - Total charge (40) (43) (35) Cash impact (33) (38) (62) £m 2021 2022 Future years

  7. Slide 7: Operating cash flow

    IMI plc Operating cash flow £m 2021 2020 Adjusted operating profit 318 285  Inventory growth to protect supply chains and maintain customer service Depreciation & amortisation 58 65  Debtor increase following growth in the Lease depreciation 28 30 year Adjusted EBITDA 404 380  Capital expenditure

  8. Slide 8: Net cash flow

    IMI plc Net cash flow £m 2021 2020 Adjusted operating cash flow 274 335  Adjusting items primarily reflect £33m of restructuring spend Cash impact of adjusting items (36) (37) Interest (12) (11)  £200m returned to shareholders through buyback Derivatives 26 (23) Tax paid (51) (41)  Net debt / Adj

  9. Slide 9: IMI Precision Engineering operational review

    IMI plc IMI Precision Engineering operational review £m 2021 Acquisition FX Organic 2020 Sales by business Adjusted Adjusted** unit*** Industrial Automation £413m Up 17% Revenue 836 2 (36) 57 813 Precision Fluid OEM £210m Down 18% Organic Growth* 7% -3% Process Control £119m Up 20% Operating Profit

  10. Slide 10: IMI Critical Engineering operational review

    IMI plc IMI Critical Engineering operational review £m 2021 Disposal FX Organic 2020 Order input by sector*** Adjusted Adjusted ** Aftermarket £384m Up 3% Power £146m Up 13% Revenue 691 (4) (27) 15 707 Refining & Petrochemical £104m Up 7% Oil & Gas £52m Up 17% Organic Growth* 2% -4% Nuclear £48m Dow

  11. Slide 11: IMI Hydronic Engineering operational review

    IMI plc IMI Hydronic Engineering operational review £m 2021 FX Organic 2020 Sales by sector Adjusted Adjusted IMI TA £159m Up 13% Revenue 339 (9) 43 305 IMI Heimeier £106m Up 14% Organic Growth 15% -4% IMI Pneumatex £61m Up 25% Operating Profit 68.1 (2.0) 14.4 55.7 Other £13m Down 2% Operating Margi

  12. Slide 12: Group outlook

    IMI plc Group outlook  Based on the strong 2021 results and current market conditions we expect 2022 full year adjusted EPS to exceed 100p  Weighted average number of shares at 259m  Including currency headwind of 1% on sales and profits 12

  13. Slide 13: Strategy update

    IMI plc Strategy update Roy Twite – Chief Executive

  14. Slide 14: Key enabling strategies

    IMI plc Key enabling strategies Our purpose Business model The Core Value Engineering & Applications today Expertise Value Improving returns through greater Customer satisfaction Talent Growth tomorrow customer intimacy, Development Hub Generating growth Continuous faster scaling improvement & Emplo

  15. Slide 15: IMI Growth Hub pipeline

    IMI plc IMI Growth Hub pipeline Phase 1 Phase 2 Phase 3 Phase 4 Problem Test & learn Develop Scale Identification & Assess  £23m orders won  Pipeline building  Better world focus  Transformational growth culture Diverse teams working at speed 15

  16. Slide 16: ESG: Living our Purpose

    IMI plc ESG: Living our Purpose  ‘Breakthrough Engineering for a Better World’ purpose a unifying driver  80% of employees would recommend IMI  Significant improvement to communications and engagement  Focus on Inclusion & Diversity  43% of Exec now women  On track to halve carbon dioxide inte

  17. Slide 17: Clear divisional plans to improve financial metrics

    IMI plc Clear divisional plans to improve financial metrics Target: 5%+ CAGR 3-5% CAGR 5%+ CAGR  Attractive, growing core markets Organic  Expanding the Aftermarket opportunity  Higher growth from Green initiatives  Leveraging our brands and expertise growth  Leveraging our brands and expertise

  18. Slide 18: Key takeaways

    IMI plc Key takeaways  Strategy  Customer First, reduce complexity, market-led innovation  Culture  Purpose driven, sharpened customer focus and innovation  Outlook  Based on current market conditions we expect 2022 full year adjusted EPS to exceed 100p  Ambition  ~5% growth through cycle 

  19. Slide 19: Cautionary statement

    IMI plc Cautionary statement By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to be bound by the limitations and conditions set out in this Cautionary statement. This presentation is for your information only and contains fo

  20. Slide 20: Q&A

    IMI Q&A

  21. Slide 21: Appendices

    IMI Appendices

  22. Slide 22: Energy Transfer Historical Results

    IMI plc Energy Transfer Historical Results Pre-Energy Transfer Post-Energy Transfer IMI Precision 2019 H1 2019 FY 2020 H1 2020 FY 2021 H1 2021 FY 2019 H1 2019 FY 2020 H1 2020 FY 2021 H1 2021 FY £m Revenue 463 907 430 877 440 899 431 841 399 813 412 836 Operating 74.8 148.0 72.9 151.4 76.6 158.0 68.8

  23. Slide 23: 2020 IMI Precision Sales Reclassification

    IMI plc 2020 IMI Precision Sales Reclassification IMI Precision Sales Reclassification excluding Energy £m New 2020 Industrial Precision Process Life Transport Commercial Rail Energy Segmentation: Total Automation Fluid OEM Control Sciences Vehicle Transferred to Old Segmentation: IMI Critical Motio

  24. Slide 24: 2020 IMI Critical Orders and Sales with Energy

    IMI plc 2020 IMI Critical Orders and Sales with Energy Orders including Energy Sales including Energy £m Energy Energy 2020 Transfer Restated 2020 Restated Reclassification Reclassification Transfer from Total from IMI 2020 Total Total 2020 Total IMI Precision Precision Refining & Petrochemical 90 9

  25. Slide 25: Foreign exchange

    IMI plc Foreign exchange 2021 2020 Change Average Rates Euro 1.16 1.13 3% Ready Reckoner for translation impact of movement in FX rates on 2021 FY Performance US Dollar 1.38 1.28 8% Dec-21 Dec-20 Change Sensitivity to +/- 1 cent Adjusted move in: Revenue Operating Profit Closing Rates Euro 1.19 1.12

  26. Slide 26: Pensions

    IMI plc Pensions £m Dec Dec 2021 2020 Total Position:  UK scheme remains in surplus following £203m buy-in exercise, further de-risking Liabilities (657) (741) the position Assets 720 719  Proactive management of overseas Deficit 63 (22) schemes, discount rate increases reduced the deficit UK Sche

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