Imi Plc · LSE:IMI

Imi — Investor Presentation (June 2021)

50 slides from Imi's investor presentation, June 2021

  1. Slide 1: Accelerating business performance

    IMI plc Accelerating business performance Roy Twite, Daniel Shook & IMI Team – June 2021

  2. Slide 2: Disclaimer

    IMI plc Disclaimer This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and operating margins, market trends and our product pipeline are forward-looking statements. It is believed that the expectations ref

  3. Slide 3: Accelerating business performance

    IMI plc Accelerating business performance Roy Twite, Daniel Shook & IMI Team – June 2021

  4. Slide 4: The Executive Team

    IMI plc The Executive Team Roy Twite Daniel Shook Beth Ferreira Jackie Hu Phil Clifton Group Chief Group Finance Divisional Managing Divisional Managing Divisional Managing Executive Director Director, IMI Precision Director, IMI Critical Director, IMI Hydronic Engineering Engineering Engineering Li

  5. Slide 5: Agenda – over two events

    IMI plc Agenda – over two events June September Part 1 Part 1  Accelerating business performance  Divisional perspective  Key, enabling strategies Part 2 Part 2  Divisional perspective  Divisional perspective 5

  6. Slide 6: Key enabling strategies

    IMI plc Key enabling strategies Roy Twite “IMI is generating strong, much improved returns and I’m increasingly confident of delivering our key objective – sustainable, profitable growth”

  7. Slide 7: November 2019 – Results of strategy review

    IMI pie IMI November 2019 — Results of strategy review 4. Clarity on how we win in the key target markets for each division De Strengthened commercia & customer focus 3, Growth Hub to transform ¢ 4. \M\ Precision complexity re £35m of annual cost savings 5. 20% to 30% of IMI Critical’s lower margin

  8. Slide 8: Key, enabling strategies

    IMI plc Key, enabling strategies Our purpose Business model The Core Value Engineering & Value Applications today Customer satisfaction Expertise Foresight tomorrow Improving returns Talent Teams Continuous Generating growth through greater improvement Development & Growth through market-led custome

  9. Slide 9: Key, enabling strategies

    IMI plc Key, enabling strategies The significant cultural shift that is Growth Hub is already having an impact on results and will drive sustainable, profitable growth 9

  10. Slide 10: The Growth Hub

    IMI plc The Growth Hub Foresight Teams constantly scanning for IMI Growth Advisory Board emerging trends and opportunities Gate 1 Gate 2 Gate 3 Gate 4 Phase 1 Phase 2 Phase 3 Phase 4 Problem Test & learn Develop Scale Identification & Assess Find acute Validate Gain significant Launch & scale custom

  11. Slide 11: 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  Growth funnel expanding  Continued shift in focus to high growth and sustainable markets  Expertise drawn from across the Group – and externally  New transformational growt

  12. Slide 12: IMI Critical Engineering highlights

    IMI plc IMI Critical Engineering highlights 1. Ambitious management team 2. Jewel is Aftermarket in the installed base  5% Aftermarket CAGR over last 3 years, despite COVID  160k installed IMI valves, 280k competitor valves offer further growth 3. New Construction headwinds diminishing 4. Growth o

  13. Slide 13: Coffee Break

    IMI Coffee Break

  14. Slide 14: Value today. Value tomorrow. IMI Critical Engineering

    IMI plc Value today. Value tomorrow. IMI Critical Engineering Jackie Hu & Team

  15. Slide 15: Our Executive Team

    IMI plc Our Executive Team Jackie Hu Divisional Managing Director Wayne Prokop Giuseppe Buscemi Steve Robins Tarak Chhaya Chungduk Suh Roby Buyung President, President, Europe Oil President, Europe Nuclear President, Middle East, Vice President, Divisional Finance Americas & Gas & Power & Marine Afr

  16. Slide 16: Our Executive Team

    IMI plc Our Executive Team Jackie Hu Divisional Managing Director Wayne Prokop Giuseppe Buscemi Steve Robins Tarak Chhaya Chungduk Suh Roby Buyung President, President, Europe Oil President, Europe Nuclear President, Middle East, Vice President, Divisional Finance Americas & Gas & Power & Marine Afr

  17. Slide 17: Our Executive Team

    IMI plc Our Executive Team Jackie Hu Divisional Managing Director Wayne Prokop Giuseppe Buscemi Steve Robins Tarak Chhaya Chungduk Suh Roby Buyung President, President, Europe Oil President, Europe Nuclear President, Middle East, Vice President, Divisional Finance Americas & Gas & Power & Marine Afr

  18. Slide 18: Divisional overview

    IMI plc Divisional overview  Highly specialised valves, actuators and controls for steam, gas and liquids in the world’s £659m harshest environments 2020 order intake From Up to New construction - 253ºC to 1,000 bar 48% + 1,650ºC  Consistent and profitable aftermarket business Aftermarket  Renown

  19. Slide 19: Agenda – IMI Critical Engineering

    IMI plc Agenda – IMI Critical Engineering  Value today  A trusted partner in transitioning markets  The importance of Aftermarket  Value tomorrow  Identifying and solving acute customer problems  A focus on markets exposed to structural growth Value Value today tomorrow 19

  20. Slide 20: The Aftermarket opportunity

    IMI plc The Aftermarket opportunity  Serve our installed base  160,000 assets in >12,000 plants  A significant expansion opportunity  Wider market opportunity  Est. 280,000+ non-IMI valves in severe service  Growth Hub Value  Accelerating growth through Digital today  Ease of doing business

  21. Slide 21: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin 16.6% OP Margin £23m +360 bps New Markets 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  22. Slide 22: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin 16.6% OP Margin £23m +360 bps New Markets 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  23. Slide 23: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin 16.6% OP Margin £23m +360 bps New Markets 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  24. Slide 24: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  25. Slide 25: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  26. Slide 26: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  27. Slide 27: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  28. Slide 28: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  29. Slide 29: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23m 23 £57m 4% 57 9% New Construction Total 97 New Construction 89 -9% £

  30. Slide 30: Evolution of the Critical Engineering business

    IMI plc Evolution of the Critical Engineering business CAGR Chart Title CAGR 20% OP Margin Overall growth Order Intake Order Intake potential £658m £659m 3% - 5% Margins 35% 13.0% OP Margin +360 bps 16.6% OP Margin New Markets £23.3m 23 £57.1m 4% 57 9% New Construction Total 97 New Construction 89 -

  31. Slide 31: Critical Growth Hub pipeline

    IMI plc Critical Growth Hub pipeline Foresight teams across 10 sectors scanning for IMI Growth Advisory Board opportunities in attractive markets Gate 1 Gate 2 Gate 3 Gate 4  Defending / extending the core Phase 4 Phase 1 Problem Phase 2 Test Phase 3 Develop Scale  Pursue adjacent products Identif

  32. Slide 32: Retrofit3D case study

    IMI plc Retrofit3D case study Value today The industry problem  Plants cycling more often  Control valves degradation and premature failure  Significant and costly unplanned maintenance and downtime The solution  Valve Doctor® and applications engineering expertise  Unique, complex and 3D-print

  33. Slide 33: Video section

    IMI plc For best user experience please use the toggle above to make the video full screen for this section. 33

  34. Slide 34: EroSolve case study

    IMI plc EroSolve case study Value today The industry problem  Erosion of the valve trim due to wet steam requires frequent repairs and affects plant efficiency The solution  EroSolve designed to delay erosion and extend the valve life Customer benefits  Improved plant efficiency and ROI  Allevia

  35. Slide 35: Video section

    IMI plc For best user experience please use the toggle above to make the video full screen for this section. 35

  36. Slide 36: A focus on markets exposed to structural growth

    IMI plc A focus on markets exposed to structural growth Value tomorrow H2 Marine Pharma Hydrogen NATO & Defence Longer life & health Key enabler of reviews driving care driving new drug energy storage replacement boat demand supporting programs transition to net zero Established Early platform Futur

  37. Slide 37: Marine

    IMI plc Marine Value tomorrow Market opportunity in Marine  Naval marine market growing at 5%+ CAGR  Desire to maintain fleet capability and flexibility  £0.8bn global market for naval valve systems Why we win  Deep domain knowledge and specialist design  Cumulative 3 million years of faultless

  38. Slide 38: Marine

    IMI plc Marine Value tomorrow Our ambition is to achieve £50m+ of additional revenue by 2030 Market opportunity in Marine  Naval marine market growing at 5%+ CAGR  Desire to maintain fleet capability and flexibility  £0.8bn global market for naval valve systems Why we win  Deep domain knowledge

  39. Slide 39: Pharmaceutical

    IMI plc Pharmaceutical Value tomorrow Market opportunity in Pharma  Market growing at high single digit CAGR  Rising living standards, increased life expectancy, improved therapies  £400m global market for critical valves and actuators Why we win  Consistent attainment of demanding industry stan

  40. Slide 40: Pharmaceutical

    IMI plc Pharmaceutical Value tomorrow Our ambition is to achieve £75m+ of additional revenue by 2030 Market opportunity in Pharma  Market growing at high single digit CAGR  Rising living standards, increased life expectancy, improved therapies  £400m global market for critical valves and actuator

  41. Slide 41: Hydrogen

    IMI plc Hydrogen Value tomorrow Market opportunity in Hydrogen • Hydrogen up to c.20% of energy mix by 2050 Our Solution Today and Competency for Tomorrow • Requires over $11 trillion of investment • EU committed to 400x increase in capacity by 2030 Why we win  Deep experience in compressor anti-su

  42. Slide 42: Hydrogen

    IMI plc Hydrogen Value tomorrow Our ambition is to achieve £100m+ of additional revenue by 2030 Market opportunity in Hydrogen • Hydrogen up to c.20% of energy mix by 2050 Our Solution Today and Competency for Tomorrow • Requires over $11 trillion of investment • EU committed to 400x increase in cap

  43. Slide 43: Summary – IMI Critical Engineering

    IMI plc Summary – IMI Critical Engineering  Growth hub well underway  Momentum in early orders  £6m 2020 / targeting £20m 2021  Culture of innovation and pace Value Value  Aftermarket expansion today tomorrow  Clear strategy for growth  Targeting key attractive markets 43

  44. Slide 44: Improving returns

    IMI plc Improving returns Daniel Shook 44

  45. Slide 45: May 2021: increased sustainable margin targets

    IMI plc May 2021: increased sustainable margin targets 20% through the cycle 20% 20%+ Prev. guidance: Prev. guidance: Prev. guidance: 20% at the top of the cycle 17% to 20% 20% 2020: 2020: 2020: 17.3% (+100bps) 16.6% (+280bps) 18.3% (+30bps) 45

  46. Slide 46: May 2021: increased sustainable margin targets

    IMI plc May 2021: increased sustainable margin targets Target: 20% through the cycle Target: 20% Target: 20%+ 2020 margin: 17.3% 2020 margin: 16.6% 2020 margin: 18.3%  £35m annualised benefits from  £43m annualised benefits from  £3m annualised benefits from footprint optimisation footprint optim

  47. Slide 47: Closing remarks

    IMI plc Closing remarks Roy Twite 47

  48. Slide 48: Key take-aways

    IMI plc Key take-aways  Strategy  Solving industry problems in attractive markets, at pace  Sustainable Value Today and Value Tomorrow  Culture  Breakthrough Engineering for a better world  Sharpened customer focus and innovation  Outcome  Improving returns  Sustainable, profitable growth 4

  49. Slide 49: Video section

    IMI plc For best user experience please use the toggle above to make the video full screen for this section.

  50. Slide 50: Q&A

    IMI Q&A

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