Severfield Plc · LSE:SFR
Severfield — Severfield-Rowen — Investor Day (April 2014)
22 slides from Severfield's investor day presentation, Apr 25, 2014
Slide 1: Welcome to Severfield-Rowen plc Capital Markets Day
Welcome to Severfield-Rowen plc Capital Markets Day 25 April 2014
Slide 2: The team here today
The team here today • Ian Lawson, Chief Executive Officer • Ian Cochrane, Chief Operating Officer • Alan Dunsmore, Finance Director • Steven Day, Deputy Managing Director – Severfield Watson Structures • Paul Hulme, Associate Director
Slide 3: Your day
Your day 1130-1200 Health and safety briefing and collect protective gear 1200 Lunch and presentation by CEO Ian Lawson and senior operational management 1330-1445 Tour of the Lostock facility 1500 Transport to Manchester Piccadilly Station 1555 Train departs Manchester Piccadilly Station
Slide 4: Why we are here
Why we are here Thameslink Borough Viaduct Bridge Titanic Signature Building, Belfast The Place, London Bridge Leeds Arena
Slide 5: What we are
What we are • Severfield is the UK's premier structural steel company • We are the largest structural steel business in the UK and one of the biggest in Europe • We are a business built on pride, passion, projects and quality people
Slide 6: Where we are
Where we are Dalton, Thirsk Lostock, Bolton Sherburn, Scarborough Enniskillen, N. Ireland Mumbai, India
Slide 7: What sets us apart
What sets us apart • What we do • Our markets and position in them • Our capability and people • Our stability and capacity • International operation • A strong platform for growth
Slide 8: What we do — design
What we do — design mis Severfield-Rowen Plc
Slide 9: What we do — fabrication
What we do — fabrication Severfield-Rowen Plc
Slide 10: What we do — site erection
What we do — site erection is Severfield-Rowen Plc
Slide 11: Bringing it together: Manchester City - a case study
Bringing it together: Manchester City - a case study
Slide 12: Bringing it together: Manchester City - a case study
Bringing it together: Manchester City - a case study Existing stadium • Originally constructed for 2002 Commonwealth • Converted following Commonwealth Games Games • Lower Tier and North stand added • With running track and no lower tier • Opened as home for Manchester City Football Club in August 2
Slide 13: The UK market (2013)
The UK market (2013) • Current estimated UK capacity – 1,000,000 tonnes • Total UK production of constructional steelwork – 848,000 tonnes • SFR potential capacity – 150,000 tonnes • SFR plc share of UK market – 90,000 tonnes Source: BCSA
Slide 14: Current tonnage outputs (2013) – Top companies
Current tonnage outputs (2013) – Top 12 companies Top 12 BCSA Membership – current UK market outputs 90,000 80,000 70,000 60,000 Output (tonnes) 50,000 40,000 30,000 20,000 10,000 0 BCSA Member Source: BCSA
Slide 15: Our sectors
Our sectors Sector Market tonnage in SFR market 2013 (000s) share (estimated) Industrial & Warehousing 350 42% 5-10% Commercial Offices 88 10% 30-40% Education 88 10% <5% Power & Energy 37 4% 20-30% Agriculture 35 4% 0% Healthcare 31 4% 5-10% Leisure 31 4% 20-30% Bridges 25 3% <5% Retail 20 2% 40-50
Slide 16: UK consumption of constructional steelwork – historical and projected – 2009-2017
UK consumption of constructional steelwork – historical and projected – 2009-2017 Source: BCSA (historical data)
Slide 17: Platform for growth
Platform for growth • Creating a sustainable business • Growing margin • Increasing market share • Capitalising on improving economy • Developing new markets
Slide 18: India – our investment to date
India – our investment to date • Equity invested by SFR since 2009: £11.9m • Equity invested by JSW since 2009: £11.9m • Equity has financed one third of factory cost, and trading losses to date • Factory cost: £26m • Debt within JV: £22m, a mixture of term debt and working capital debt • Term debt
Slide 19: India – overview
India – overview • Challenging market • Forthcoming elections • Views in the market • Our partner JSW • Current strategy 1. Self help 2. Business development 3. Debt reduction
Slide 20: Proud of our past: Positioning for our future
Proud of our past: Positioning for our future • A new company name • A new and dynamic brand • A new website • A proactive programme of internal and external communications
Slide 21: A strong platform for growth
A strong platform for growth • The business is in a much improved state from 12 months ago • We have unrivalled capabilities which puts us in prime position as the economy starts to improve • Our facilities are the best in the UK and possibly Europe • In the UK there are areas and sectors of the mar
Slide 22: Questions
Thank you Questions mis Severfield-Rowen Plc