Weir Group Plc · LSE:WEIR
Weir — The Weir Group — H1 2003 Earnings Presentation
24 slides from Weir's earnings presentation, Aug 19, 2003
Slide 1: 2003 Interim Results
Excellent The Weir Group PLC Analysts Presentation Engineering London, 19 August 2003 Solutions 2003 Interim Results
Slide 2: Agenda
The Weir Group PLC Excellent Engineering Solutions Agenda § Introduction & Financial Highlights Mark Selway § Financial review Ian Boyd § Operational review Mark Selway § Outlook Mark Selway § Questions and Answers All
Slide 3: Financial highlights
Excellent The Weir Group PLC Excellent The Weir Group PLC Engineering Engineering Solutions Solutions 2003 Interims Results Financial highlights
Slide 4: Interim Financial Highlights 2003
City Presentation 2001 The Weir Group PLC Excellent Engineering Solutions Interim Financial Highlights 2003 Group Results 2003 Turnover – Continuing Operations * £’m Turnover Operating profit (1) Pre-tax profit (1) 450 £m £393.7 £26.7m £23.6m 400 350 359 420 390 394 Down 7.6% Up 0.5% Down 7.8% 300 2
Slide 5: Financial review
Excellent The Weir Group PLC Excellent The Weir Group PLC Engineering Engineering Solutions Solutions 2003 Interims Results Financial review
Slide 6: Consolidated Profit & Loss
The Weir Group PLC Excellent Engineering Solutions Consolidated Profit & Loss First half 2003 First half 2002 Before Before amortisation of Amortisation of amortisation of Amortisation of goodwill & goodwill & goodwill & goodwill & exceptional items exceptional items Total exceptional items exceptio
Slide 7: Consolidated Profit & Loss
The Weir Group PLC Excellent Engineering Solutions Consolidated Profit & Loss First half 2003 First half 2002 Before amortisation of Before amortisation of goodwill & goodwill & At exceptional items exceptional items constant Turnover £000 £000 Change rates Group Continuing Operations 342,857 339,52
Slide 8: Profit before tax, exceptionals and goodwill amortisation
The Weir Group PLC Excellent Engineering Profit before tax, exceptionals and Solutions goodwill amortisation The pre tax profit for the first half year amounts to £23.6m compared to the 2002 results of £25.6m. An approximate bridge between these numbers is as follows: £m 2002 Results 25.6 Increased
Slide 9: Divisional Split
The Weir Group PLC Excellent Engineering Solutions Divisional Split Turnover Operating Profit(1) Margin % 2003 2002 2003 2002 2003 2002 H1 H1(2) H1 H1(2) H1 H1 £m £m £m £m Engineering Products 217.3 210.0 16.9 12.9 7.8% 6.2% Engineering Services 89.7 71.1 7.7 7.1 8.6% 10% Techna 35.8 52.3 (1.3) 0.9
Slide 10: Operating cash flow reconciliation
The Weir Group PLC Excellent Engineering Solutions Operating cash flow reconciliation 2003 2002 H1 H1 Operating profit 18.0 19.0 Depreciation, goodwill amortisation and grant credits 11.3 12.6 Surplus on disposal of tangible assets and investments (0.2) (0.6) Funding of pension and post retirement c
Slide 11: Cash Flow Statement (£m)
The Weir Group PLC Excellent Engineering Solutions Cash Flow Statement (£m) 2003 2002 H1 H1 Cash from operations (2.2) 31.9 Interest and other income (1.5) (1.7) Taxation (3.4) (3.5) Capital expenditure (8.0) (7.1) Sale of assets 0.2 2.0 Acquisitions/disposals 2.4 4.4 Dividends (17.9) (17.1) Issue o
Slide 12: Tax, EPS and Dividend
The Weir Group PLC Excellent Engineering Solutions Tax, EPS and Dividend 2003 2002 Change H1 H1 Tax rate(1) 23% 23% - Earnings per share FRS 3 basic (p) 7.2 7.9 -8.9% Adjust: Goodwill amortisation 1.7 1.7 Exceptional items - 0.1 Pre Goodwill amortisation and exceptionals (p) 8.9 9.7 -8.2% Average no
Slide 13: Operational Review
The Weir Group PLC Analysts Presentation Excellent Engineering London, 19 August Solutions Operational Review
Slide 14: The journey to excellence
The Weir Group PLC Excellent Engineering Solutions The journey to excellence 2001 A WATERSHED YEAR PHASE 1 STRATEGIC & MARKET REVIEW Markets size Competitive Opportunities and scope landscape to Grow
Slide 15: The journey to excellence
The Weir Group PLC Excellent Engineering Solutions The journey to excellence 2001 2002 A PROGRAMME OF TRANSITION 1 2 3 4 A watershed year: • Market review • Common business agenda Restructure Fix the Drive Develop • Business focus & develop under- operational customer products performing excellence
Slide 16: The journey to excellence
The Weir Group PLC Excellent Engineering Solutions The journey to excellence 2001 2002 2003 BUILDING ON POTENTIAL A watershed year: • Market review • Common business agenda • Business focus A programme of transition: • Structure and competency • Improved competitive position • Organic growth strateg
Slide 17: Half Year 2003 Weir Minerals Division
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Weir Minerals Division First Half Input Strategic Activities By Sector By Geography • Strategies and structure implemented to deliver global 7.5 9.9 0.1 2.5 12.3 market growth in all core product offerings 4.4 • New product plan appro
Slide 18: Half Year 2003 Weir Clear Liquid Division
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Weir Clear Liquid Division First Half Input Strategic Activities By Sector By Geography • On-time and on-budget launch of first products from 6.6 8.3 Weir Pumps and Salt Lake City with good market 17.6 reception. Balance to be launche
Slide 19: Half Year 2003 Weir Services Division
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Weir Services Division First Half Input Strategic Activities By Sector By Geography • High powered divisional team assigned to Middle 19.7 8.1 38.1 East rebuild potential. • Greenfield service centres strategy in the USA 24.1 41.5 pro
Slide 20: Half Year 2003 Weir Valves & Controls Division
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Weir Valves & Controls Division First Half Input Strategic Activities By Sector By Geography 0 0.2 • Global marketing strategy with strengthened 6.5 4.6 9.4 team and focused markets. 2.1 • Positive early results from new product entri
Slide 21: Half Year 2003 Weir Techna Division
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Weir Techna Division First Half Input Strategic Activities By Sector By Geography Defence & Nuclear 2.8 0.2 7.1 • Defence and waste handling business realigned to 0.6 report through Weir Services and leverage potential 1.7 1.3 16.9 ge
Slide 22: Half Year 2003 Operational Review Building on potential
The Weir Group PLC Excellent Engineering Solutions Half Year 2003 Operational Review Building on potential Order Input 120 H1 2003 vs H1 2002 100 £368.4m £352.2m 80 By Division Achievements £m 60 • Good profit generation despite difficult 40 20 0 market conditions Minerals Clear Liquid Services Valv
Slide 23: Outlook
The Weir Group PLC Excellent Engineering Solutions Outlook § We have strong momentum behind our productivity improvement activities and expect the benefits to offset the effects of increased costs of pensions and other known costs in the second half of the year. § Services division produced successi
Slide 24: The journey to excellence
The Weir Group PLC Excellent Engineering Solutions The journey to excellence 2001 2002 2003 2004 2005 2006 A watershed year: • Market review • Common business agenda • Business focus “I remain convinced Weir A programme of transition: is capable of producing • Structure and competency • Organic grow