Babcock International Group Plc · LSE:BAB
Babcock International — Corporate Update (September 2010)
23 slides from Babcock International's corporate update, Sep 29, 2010
Slide 1: Pre-close trading update and pro forma segmental analysis
Babcock International Group PLC Pre-close trading update and pro forma segmental analysis 29 September 2010 www.babcock.co.uk
Slide 2: Disclaimer
Disclaimer This document has been prepared by Babcock International Group PLC (the “Company”) solely for use at a presentation in connection with the Company's Pre-close Trading Statement. For the purposes of this notice, the presentation that follows (the “Presentation”) shall mean and include the
Slide 3: Agenda
Agenda • Introduction Pre-close trading statement Peter Rogers • Pro forma segmental analysis Peter Rogers Bill Tame • Questions Trading update and segmental analysis 3 www.babcock.co.uk 29 September 2010
Slide 4: Pre-close trading statement
Pre-close trading statement Peter Rogers www.babcock.co.uk
Slide 5: Current trading
Current trading • Good progress in first half of 2010/11 – trading, financial and operational performance all strong – overall no significant changes to market conditions • Active dialogue with Government and MoD – to help them achieve savings in both short and medium-term – business model and track
Slide 6: Divisional overview
Divisional overview • Marine – performing strongly – delivering significant cost savings to MoD – aircraft carrier programme continues as contracted – international presence strengthening • Defence and Security – markets stable, resource focused on front line operations – current contracts performin
Slide 7: Divisional overview cont
Divisional overview cont • Support Services – no change in market conditions, budgets remain constrained – current contracts and frameworks performing in line with our expectations – exploring opportunities to take advantage of enhanced strength and breadth of capabilities within division – to provi
Slide 8: Financial position
Financial position • First half cash generation has been strong • Net debt to EBITDA on completion 2.8 x – below 2.9 x anticipated at start of acquisition process • Net debt at 30 September 2010 will show further improvement • Secure financial position – comfortably within covenanted debt levels Tra
Slide 9: Order book and outlook
Order book and outlook • Order book £12 billion – ongoing, steady flow of contracts from bid pipeline into order book – majority of this year’s revenue already contracted and high proportion for 2011/12 – all contracts performing as planned • Bid pipeline remains healthy at £5 billion – some slow-do
Slide 10: Pro forma segmental analysis
Pro forma segmental analysis www.babcock.co.uk
Slide 11: Group operating and reporting structure
Group operating and reporting structure Peter Rogers Defence and Support International Marine Security Services Peter Rogers Archie Bethel John Davies Kevin Thomas • Simpler, clearer reporting structure • Combined Babcock and VT businesses within divisions – maximising opportunities created by acqui
Slide 12: Marine
Marine • The UK’s leading naval support business with a unique role supporting the Royal Navy Marine 2009/10 revenue £1,014.6 m Equipment Naval bases Submarines Warships Intec (16%) (29%) (18%) (25%) Support (12%) HMNB Clyde Fleet time Class output Design and Procurement Astute training support mana
Slide 13: Marine Key activities and contracts
Marine Key activities and contracts 2009/10 Pro forma Group Joint Total Babcock VT £m Babcock VT Ventures £m £m Revenue 973.8 40.8 1,014.6 - - - 1,014.6 Operating profit 116.5 2.6 119.1 - - - 119.1 Key activities Future opportunities • Warships • Terms of Business Agreement (ToBA) scope – class outp
Slide 14: Defence and Security
Defence and Security • A major support provider to all three armed forces delivering training and equipment support Defence and Security 2009/10 revenue £615.6m* Training and Air (30%) Support (70%) Military Flying Training System Land Training Naval Training (MFTS) Ascent jv - RSME (Chatham, - Flag
Slide 15: Defence and Security Key activities and contracts
Defence and Security Key activities and contracts 2009/10 Pro forma Group Joint Total Babcock VT £m Babcock VT Ventures* £m £m Revenue 74.1 431.7 505.8 13.8 96.0 109.8 615.6 Operating profit 9.1 59.2 68.3 0.7 17.6 18.3 86.6 Key activities Future opportunities • Future Strategic Tanker Air (FSTA) • D
Slide 16: Support Services
Support Services • Delivers a broad range of training and equipment and infrastructure support to civil government, local authority and blue-chip companies Support Services 2009/10 revenue £1,045.4m* Critical Education Nuclear Infrastructure Rail Assets and Training Waste (16%) (25%) (15%) (30%) (14
Slide 17: Support Services Key activities and contracts
Support Services Key activities and contracts 2009/10 Pro forma Group Joint Total Babcock VT £m Babcock VT Ventures* £m £m Revenue 673.4 331.3 1,004.7 14.1 26.6 40.7 1,045.4 Operating profit 35.8 29.6 65.4 0.1 0.4 0.5 65.9 Key activities Future opportunities • Regional Prime contracts for MoD/Defenc
Slide 18: International
International • United States - a range of support services to US DoD • South Africa – power generation and transmission engineering support – plant and equipment distribution • Middle East - targeting engineering and infrastructure support across defence and civil sectors International 2009/10 reve
Slide 19: International Key activities and contracts
International Key activities and contracts 2009/10 Pro forma Group Joint Total Babcock VT £m Babcock VT Ventures £m £m Revenue 174.2 325.1 499.3 - - - 499.3 Operating profit 10.9 15.7 26.6 - - - 26.6 Key activities Future opportunities South Africa South Africa • Volvo construction equipment and oth
Slide 20: Questions?
Questions? www.babcock.co.uk
Slide 21: Appendix
Appendix www.babcock.co.uk
Slide 22: 2009/10 pro forma segmental analysis
2009/10 pro forma segmental analysis Group Joint Ventures* Total £m £m £m Revenue Marine 1,014.6 - 1,014.6 Defence & Security 505.8 109.8 615.6 Support Services 1,004.7 40.7 1,045.4 International 499.3 - 499.3 Total 3,024.4 150.5 3,174.9 Operating Profit Marine 119.1 - 119.1 Defence & Security 68.3
Slide 23: www.babcock.co.uk
www.babcock.co.uk babcock trusted to deliver™ 23
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