Weir Group Plc · LSE:WEIR
Weir — The Weir Group — H1 2009 Earnings Presentation
22 slides from Weir's earnings presentation, Aug 4, 2009
Slide 1: 2009 Interim Results
Excellent Engineering Solutions The Weir Group PLC Analysts’ Presentation 2009 Interim Results London, 4 August 2009
Slide 2: Financial Highlights H1 2009
The Weir Group PLC Excellent Engineering Solutions Financial Highlights H1 2009 (Continuing Operations) Order Input 1 Profit before tax 2 £660.9m down 21% £91.4m Up 12% Earnings Revenue per share 2 £709.8m Up 12% 31.2p Up 13% Operating Profit 2 Cash generated £99.2m Up 17% from Operations £124m Up £
Slide 3: Financial Review
The Weir Group PLC Excellent Excellent Engineering Engineering Solutions Solutions The Weir Group PLC Analysts’ Presentation Financial Review Keith Cochrane
Slide 4: Consolidated Income Statement
The Weir Group PLC Excellent Engineering Solutions Consolidated Income Statement H1 2009 H12008 £m £m Revenue - Continuing Operations 709.8 631.7 Operating Profit from Continuing Operations 1 99.2 84.7 Intangibles Amortisation (8.5) (6.7) Operating Profit from Continuing Operations 90.7 78.0 Net Int
Slide 5: Group revenue £710m - up 12%
The Weir Group PLC Excellent Engineering Solutions Group revenue £710m - up 12% Total Like for Like 2 £m H1 2009 H1 2008 +/- H1 2009 H1 2008 +/- Minerals 1 422.5 383.2 10% 384.1 360.3 7% Oil & Gas 1 149.7 162.5 -8% 142.8 162.5 -12% Power & Industrial 1 117.4 111.7 5% 117.4 111.7 5% Group Companies 1
Slide 6: Operating profit £99m - up 17%
The Weir Group PLC Excellent Engineering Solutions Operating profit1 £99m - up 17% Total Like for Like 4 H1 2009 H1 2008 H1 2009 H1 2008 Minerals 2 68.3 62.8 61.1 59.2 Oil & Gas 2, 3 26.1 36.7 25.0 36.7 Power & Industrial 2 8.3 7.4 8.3 7.4 Group Companies 2 2.2 1.7 2.2 3.4 Central Costs (5.7) (4.3)
Slide 7: Net Interest Expense
The Weir Group PLC Excellent Engineering Solutions Net Interest Expense H1 2009 H1 2008 Variance £m £m Interest Costs (8.0) (7.8) (0.2) Interest Income 1.1 3.7 (2.6) Net Interest Costs (6.9) (4.1) (2.8) Other Finance Income - retirement benefits (0.9) 1.2 (2.1) (7.8) (2.9) (4.9) Interest rate arbitr
Slide 8: Taxation
The Weir Group PLC Excellent Engineering Solutions Taxation Profit before Tax Rate % tax £m £m Continuing Operations: - Before intangibles amortisation 91.4 (25.8) 28.2% - Intangibles amortisation (8.5) 2.7 Reported in Income Statement 82.9 (23.1) 27.9% 8
Slide 9: Operating Cash flow £123.9m, up £59.6m
The Weir Group PLC Excellent Engineering Solutions Operating Cash flow £123.9m, up £59.6m H1 2009 H1 2008 £m £m Operating cash flows - pre working capital 111.3 96.7 Working Capital 12.6 (32.4) Operating cash flows 123.9 64.3 Interest and tax (32.5) (22.5) Net Capex (17.0) (19.4) Other cash flows (5
Slide 10: Net debt
The Weir Group PLC Excellent Engineering Solutions Net debt 2009 £m Net debt at 26 December 2008 (239.9) Free cash flow 39.4 Non Cash movements 0.5 Net debt at 26 June 2009 (200.0) 2009 2008 £m £m Net debt / EBITDA 0.9 1.1 10
Slide 11: Pensions
The Weir Group PLC Excellent Engineering Solutions Pensions Period end net deficit £62.9m (December 2008 net deficit £29.9m) - Movement driven by increased inflation assumption - Adverse effect significantly mitigated by Legal & General policies in place Continuing to reduce investment / mortali
Slide 12: Financial Summary
The Weir Group PLC Excellent Engineering Solutions Financial Summary 3 Operating profit of £99m, up £15m (17%) 1 3 Operating cash flow of £124m, up £60m 3 EPS - 31.2p (up 13%) 1 3 Net debt of £200m 3 Dividend 4.8p per ordinary share, up 3% 1 From Continuing Operations and before intangibles amortisa
Slide 13: Operational Review
Excellent Engineering Solutions The Weir Group PLC Analysts’ Presentation Operational Review Mark Selway 13
Slide 14: Input comparison H1 2009 vs H1 2008
The Weir Group PLC Excellent Engineering Solutions Input comparison H1 2009 vs H1 2008 Total H1 H1 H1 H1 H1 H1 H1 H1 Var £m 2009 2008 2009 2008 2009 2008 2009 2008 % OE 152 242 68 92 53 92 273 426 -36% Spares 184 196 42 37 22 19 248 252 -2% Service 27 18 45 46 64 66 136 130 +5% Total 1 363 456 155 1
Slide 15: Minerals Division
The Weir Group PLC Excellent Minerals Solutions Minerals Division Financial Highlights 250 Input comparison Service Consolidated H1 2009 H1 2008 1 Var 200 7% £m £m % 150 £m Order input 362.6 456.0 -20% 100 OE 50 42% Revenue 422.5 383.2 +10% Spares 0 51% Operating profit 68.3 62.8 +9% OE Spares Servi
Slide 16: Oil & Gas Division
The Weir Group PLC Excellent Oil & Gas Solutions Oil & Gas Division 100 Financial Highlights H1 2009 Input comparison Consolidated H1 2009 H1 2008 1 Var 75 £m £m % Service £m 50 29% Order input 154.6 174.9 -12% Revenue 149.7 162.5 -8% 25 OE Operating profit2 26.1 36.7 -29% 44% 0 OE Spares Service Ma
Slide 17: Power & Industrial Division
The Weir Group PLC Excellent Power & Industrial Solutions Power & Industrial Division 100 Financial Highlights H1 2009 Input comparison 75 Spares Consolidated H1 2009 H1 2008 1 Var £m £m % 16% £m 50 Order input 139.4 176.5 -21% 25 OE Revenue 117.4 111.7 +5% 38% 0 Operating profit 8.3 7.4 +12% OE Spa
Slide 18: Scorecard : H1 2009 performance
The Weir Group PLC Excellent Engineering Solutions Scorecard : H1 2009 performance Financial Highlights Weir H1 Input vs peer groups Consolidated H1 2009 H1 2008 Var Minerals Oil & Gas Power & Industrial £m £m % 0 Order input1 660.9 840.8 -21% -10 Revenue 709.8 631.7 +12% -20 Oil & Gas Minerals Powe
Slide 19: Outlook
The Weir Group PLC Excellent Engineering Solutions Outlook First half performance clearly demonstrates the effectiveness of the Group’s operational platform. We remain confident in our ability to deliver sector leading performance in the second half of 2009. Minerals Division will be Upstream – we h
Slide 20: Appendices
The Weir Group PLC Excellent Engineering Solutions The Weir Group PLC Analysts’ Presentation Appendices 20
Slide 21: Foreign Exchange
The Weir Group PLC Excellent Engineering Solutions Foreign Exchange 2008 Revenue 2008 Operating Profit Published FX Restated Published FX Restated Minerals 339.6 43.6 383.2 53.4 9.4 62.8 Oil & Gas 128.8 33.7 162.5 27.8 8.9 36.7 Power & Industrial 99.8 11.9 111.7 6.2 1.2 7.4 Group Companies 63.5 1.7
Slide 22: Foreign Exchange
The Weir Group PLC Excellent Engineering Solutions Foreign Exchange 2008 Revenue 2008 Operating Profit At 2008 FX At 2009 At 2008 FX At 2009 rates rates rates rates US $ 177.6 59.3 236.9 41.5 13.8 55.3 Canadian $ 55.8 6.2 62.0 6.4 0.7 7.1 Australian $ 69.8 0.7 70.5 10.7 0.2 10.9 Euro € 94.4 14.8 109