Renishaw Plc · LSE:RSW
Renishaw — FY2018 Earnings Presentation
26 slides from Renishaw's earnings presentation, Jul 26, 2018
Slide 1: Renishaw plc – 2018 results
Renishaw plc – 2018 results 26th July 2018
Slide 2: Chairman’s statement
Chairman’s statement • Record revenue of £611.5m, with growth at constant exchange rates of 18% • Record adjusted profit before tax of £145.1m, an increase of 33% • Statutory profit rose 33% to £155.2m • Healthcare business achieves profit for the first time • Total shareholder return of 48% (18th i
Slide 3: Chief Executive’s review
Chief Executive’s review • Growth in all product lines, with strong revenue growth in our measurement and automation, co-ordinate measuring machine, machine tool, additive manufacturing and neurological product lines • Double-digit growth in all regions • Strength in many sectors, especially electro
Slide 4: Financial highlights (continuing operations)
Financial highlights (continuing operations) 2018 2017 Change Revenue £m £m £m % 700 611.5 600 536.8 Revenue 611.5 536.8 14% 494.7 500 427.2 400 355.5 300 Adjusted profit before tax 145.1 109.1 33% 200 100 0 Statutory profit before tax 155.2 117.1 33% 2014 2015 2016 2017 2018 Tax (22.9) (14.3) 60% P
Slide 5: Group revenue analysis
Group revenue analysis Changes in geographic area Revenue by region £m Change at actual fx Change at constant % fx % 45 Far East 13% 19% 3 Europe 19% 17% 1 Americas 11% 19% 2 UK & Ireland 11% 11% Total 14% 18% 2018 2018 2017 £m % £m Revenue by major countries Average exchange rates 1 Far East 280.8
Slide 6: Group revenue analysis
Group revenue analysis Revenue 2018 2017 Change Revenue – 1st & 2nd half £m £m £m % 350 332.0 Metrology 575.8 503.4 14% 300 296.4 279.5 270.9 Healthcare 35.7 33.4 7% 250 223.8 233.4 240.4 191.5 193.8 Total 611.5 536.8 14% 200 164.0 150 100 50 Adjusted operating profit 0 2014 2015 2016 2017 2018 2018
Slide 7: Income statement
Income statement 2018 2017 Cost of sales £m £m % £m % Change 250 80 Revenue 611.5 100 536.8 100 14% 207.5 200 182.6 157.8 60 % of revenue 145.3 150 125.3 Cost of sales (207.5) 34 (182.6) 34 14% 40 100 Engineering (inc. R&D) (77.4) 13 (68.8) 13 13% 20 50 Gross profit 326.6 53 285.4 53 14% 0 0 2014 20
Slide 8: Adjusted earnings per share and Dividend per share
Adjusted earnings per share and Dividend per share Adjusted earnings per share p Dividend per share p 180 167.5 170.5 70 160 60.0 140 132.4 60 52.0 46.5 48.0 46.0 120 100.4 50 41.2 39.5 100 82.3 40 34.0 35.5 80 29.9 30 60 40 20 11.3 12.5 12.5 12.5 14.0 20 10 0 0 2014 2015 2016 2017 2018 2014 2015 20
Slide 9: Income statement – Engineering costs
Income statement – Engineering costs Engineering costs Engineering costs (total) £m 2018 2017 Change 90 77.4 50 68.8 £m £m % 80 66.1 70 51.8 56.8 40 Total spend 83.6 78.2 7% 60 % of revenue 30 50 Less capitalised net 2.1 2.7 -22% 40 20 Less R&D tax credit 4.1 6.7 -39% 30 20 10 Net R&D 77.4 68.8 13%
Slide 10: Income statement – Distribution costs
Income statement – Distribution costs Distribution costs Distribution costs £m 140 50 121.4 120 112.7 •Continued expansion of global marketing and distribution 93.8 40 100 87.9 infrastructure to support new and existing products. % of revenue 75.3 30 80 60 20 •Distribution costs 20% of revenue (2017
Slide 11: Income statement – Administrative costs and Group employees
Income statement – Administrative costs and Group employees Group headcount (at June) Administrative costs £m 60 56.9 30 52.4 2018 2017 Change 50 25 No. No. No. 41.8 40.2 % of revenue 40 20 31.2 UK 3,045 2,880 165 30 15 20 10 Overseas 1,817 1,650 167 10 5 Total 4,862 4,530 332 0 0 2014 2015 2016 201
Slide 12: Balance sheet
Balance sheet £m June 2018 June 2017 Change % Property, plant & equipment 232.6 228.1 2% Total equity £m 600 548.6 Intangible assets & investments 64.3 61.8 4% 500 428.5 443.8 Deferred tax assets 27.3 25.3 8% 381.4 400 350.8 Long-term loans to ass. & joint vent. 4.2 3.1 35% 300 Derivatives 9.6 3.5 1
Slide 13: Cash flow
Cash flow *Including continuing and discontinued operations
Slide 14: Capital expenditure
Capital expenditure 2018 2017 £m £m Capital expenditure £m Capital expenditure 34.9 42.6 60 55 53.0 48.4 50 •Property 45 42.6 39.2 40 The main property additions were: 34.9 35 11.1 35.6 18.4 - in the UK, acquisition of additional premises in Edinburgh and Exeter; 30 17.9 25 - in Mexico, completion o
Slide 15: Property
Property Below: new Solutions Centre in Germany. Above: new premises constructed in Apodaca, Mexico.
Slide 16: Market drivers and new product releases
Market drivers and new product releases • Increasing component complexity and closer tolerances require: • Increased capability • Improved measurement performance • Cost down pressures requires increased speed of operation and lower scrap/rework • Global skills shortages require: • Easier to use sol
Slide 17: New product releases - metrology
New product releases - metrology Equator™ 500 gauging system • The new larger Equator 500 system, has all the benefits of the proven Equator 300 system, but enables the gauging of larger parts, with a working volume of 500 mm in diameter and up to 400 mm in height. • The base supports workpiece and
Slide 18: New product releases - metrology
New product releases - metrology SupaScan v3 with surface condition monitoring • Combines with SPRINT technology to offer surface condition monitoring to rapidly detect surface defects such as those caused by worn and blunt tooling, mismatches between cutters, and step-over errors. • Automating thes
Slide 19: New product releases - metrology
New product releases - metrology Enhanced MP250 high-accuracy probe for grinding machines • The world's first strain gauge based inspection probe for grinding machines has been enhanced with improved configurability options. • New HIS-C interface allows dynamic switching between three modes of opera
Slide 20: New product releases - metrology
New product releases - metrology RenAM 500Q additive manufacturing (AM) system • Four high-power 500 W lasers, with each able to access the whole powder bed surface simultaneously. • Significantly improves productivity in the most commonly used machine platform size. • Offers a substantial reduction
Slide 21: New product releases - metrology
New product releases - metrology InfiniAM Spectral • Works with Renishaw's LaserVIEW and MeltVIEW hardware, to provide feedback on energy input and emissions from the AM build process. • Process feedback is essential in understanding component quality throughout the build process, monitoring laser a
Slide 22: New product releases - metrology
New product releases - metrology InfiniAM Central • Enables near real-time insight into live AM builds and access to analyse historic builds. • System sensor and build information is displayed in graphic form to enable intuitive in-depth analysis. • Also available as an app for smartphones.
Slide 23: New product releases - metrology
New product releases - metrology QUANTiC encoder series • New encoder family for linear axes which offers exceptionally wide installation tolerances and axis speeds of up to 24 m/s • Integrates Renishaw's filtering optics design and interpolation technology to create a high performance, super-compac
Slide 24: Healthcare highlights
Healthcare highlights FDA clearance • The USA’s Food and Drug Administration (FDA) has cleared the combined use of the neuromate stereotactic robot with neuroinspire™ planning software, having earlier in the year approved neuroinspire as standalone software. Clinical study underway • In Sweden and F
Slide 25: Outlook
Outlook The Group is in a strong financial position and continues to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world. We have experienced strong growth in 2018 and, whilst noting ongoing unc
Slide 26: Disclaimer
Disclaimer This document contains statements about Renishaw plc that are or may be forward-looking statements. These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Renishaw plc. They involve known and unknown risks, uncertainties a