Smiths Group Plc · LSE:SMIN
Smiths — Investor Presentation (May 2005)
20 slides from Smiths's investor presentation, May 26, 2005
Slide 1: Smiths Aerospace Presentation to Investors
Smiths Aerospace Presentation to Investors by Dr John Ferrie Group Managing Director Cheltenham – Thursday 26th May 2005
Slide 2: So why is Aerospace attractive?
US defence spending flattening The civil aerospace industry is recovering Airline customers are still making huge losses So why is Aerospace attractive? Underlying demand for air transport as strong as ever Defence remains high priority Leadership positions still rewarding Smiths Aerospace 05/05 JF
Slide 3: Capabilities on military transports
Capabilities on military transports (Applications: C-130AMP, C-130J, C-17, C-27, P-8A MMA, B767 Tanker…) Cargo Door Drive/Actuator Flight Control Actuators Engine Components (Tailpipe/Shrouds) Primary flight controls Aerial Refuelling Pods Aerial Refuelling System and Components Gust lock Engine Com
Slide 4: Capabilities on fighters
Capabilities on fighters (Applications: JSF, F-22, F-18, Eurofighter, Hawk, F-16…) Battery Charging System Variable Speed Power Supplies Constant Frequency Prognostics and Health Power Generation Monitoring System Regulated/Transformer Fuel Dump Rectifier Unit Primary Flight Control Airbrake Actuato
Slide 5: Capabilities on UAVs
Capabilities on UAVs (Applications: X-47, X-45…) Fuel and Hydraulic Tubes/Hoses Variable Speed Constant Frequency Generator Cable Harnesses And Connectors Power Distribution System Regulated/Transformer Rectifier Unit Composite Structures Utilities Computer Remote Input/Output Flight Control Actuati
Slide 6: Capabilities on large commercial aircraft
Capabilities on large commercial aircraft (Applications: B737, A320, B777, A330/340, B787…) Fuel Systems High-lift Systems Fuel and Hydraulic Tubes/Hoses Airframe Components Primary Flight Control Actuators Remote Input/Output Primary Flight Control Actuators Power Generation Cable Harnesses and Con
Slide 7: Boeing 787 Dreamliner
Boeing 787 Dreamliner Major Systems won by Smiths Programme Status Common Core Firm Orders = 64 High Lift Options = 24 Landing Gear Entry into Service = 2008 Trend to systems integration, but each customer is different Smiths Aerospace 05/05 JF Investors Briefing 7
Slide 8: Airbus A380
Airbus A380 Major Systems won by Smiths Programme Status High Lift Firm Orders = 139 Landing Gear Options = 70 Entry into Service = 2006 Smiths Aerospace 05/05 JF Investors Briefing 8
Slide 9: What are we?
What are we? Aerospace Systems Engine Components Growth fueled by Competitiveness Delivering Integrated Solutions Northrop Grumman selects Smiths Smiths expands Aircraft for J-UCAS Landing Gear System Engine Facility in China 1st 8th February 2005 November 2004 Smiths Aerospace 05/05 JF Investor
Slide 10: Smiths Aerospace Business Dimensions
Smiths Aerospace Business Dimensions Electronic systems FY04 Sales: £1,006m Mechanical systems Military / Civil split ~ 60% / 40% Engine components Sales Split R&D/Sales Recent Additions Company Funded DGT acquired for £57m in mid ’04 (expense to profit) 8% Integrated Aerospace acquired for
Slide 11: Where are we?
Where are we? Electronic Systems Customer Services RoW China Poland Mechanical Systems Engine Components Australia Singapore Total employees: circa 11,000 Smiths Aerospace 05/05 JF Investors Briefing 11
Slide 12: Smiths Aerospace on Major Platforms
Smiths Aerospace on Major Platforms Typical programme revenues Boeing 787: $2.6b Airbus A380: $1b common core landing gear system, landing gear extension & retraction and high lift system, actuators, high actuation systems, lift actuation, flight recorder wing components Airbus 320: $650m JSF: $3b E
Slide 13: Competitors
Competitors Electronic Systems Mechanical Systems Honeywell Moog Rockwell Collins Cobham Hamilton Sundstrand Goodrich Goodrich Thales Liebherr Parker Engine Components Customer Services Barnes Group Primes in-house capabilities Third Party Repair Centres GKN Carlton Magellan Operators in-house capab
Slide 14: Aeroengine Component supplier
Aeroengine Component supplier Civil Military Engine side wall GE/CFM Fabricated Pratt & Whitney Mixers Rolls Royce/Eurojet Machined Shafts Machined Combustors Flash Welded Rings Smiths Aerospace 05/05 JF Investors Briefing 14
Slide 15: Business Dimensions - Aftermarket
Business Dimensions - Aftermarket Total Service Based Integrated Support Performance PBL / 2005 Sales Based Logistics Support Aftermarket Original Equipment Usage based Rate per hour Cost Based Fixed Price Cost driven Time & Material Reactive Smiths Aerospace 05/05 JF Investors Briefing
Slide 16: How are we performing?
How are we performing? Smiths Aerospace performance in H1 2005 Aerospace £m H1 2005 at constant currency Sales 514 +17% Operating Profit 39 +24% Contribution to Smiths Group operating profit Margin 8% US 101 Eurofighter Boeing 787 Delivered first system for Airbus A380, F-35 JSF, C-130 AMP Devel
Slide 17: Smiths Aerospace: Sales Trends
Smiths Aerospace: Sales Trends Civil OE Military OE Aftermarket 2005 (expected) 2005 sales Commercial OE 2004 Military OE Aftermarket 2003 10% 20% 10% 10% (underlying growth, excluding acquisitions at constant currency) Smiths Aerospace 05/05 JF Investors Briefing 17
Slide 18: The Future: Our view of the Global Military market
The Future: Our view of the Global Military market 30 Actuals Forecast 25 Aircraft Production Value $bn 20 15 10 5 0 2006 2007 2005 2008 2012 2004 2009 2010 2011 2003 2001 2002 Military Helicopters Other Fixed-Wing Light Fighter/Attack/Trainer Heavy Fighter Smiths increasing market share while marke
Slide 19: The Future: Our view of the Global civil market
The Future: Our view of the Global civil market 100 Actuals Forecast 80 Aircraft Production Value $bn 60 40 20 0 2006 2007 2005 2008 2012 2004 2009 2010 2011 2003 2001 2002 Civil Helicopters Exec/Utility Turboprops Business Jets Regional Transports Commercial Jets Smiths increasing market share Oppo
Slide 20: Growing as anticipated
Growing as anticipated US defence spending flattening The civil aerospace industry is recovering Airline customers are still making huge losses So why is Smiths so confident? We have strong platform positions – gaining market share Supported by increased R&D Engine Components business delivering pla