Imi Plc · LSE:IMI

Imi — H1 2022 Earnings Presentation

26 slides from Imi's earnings presentation, 2022

  1. Slide 1: 2022 Interim Results

    IMI plc 2022 Interim Results Roy Twite – Chief Executive Daniel Shook – Finance Director

  2. Slide 2: Continued strong performance

    IMI plc Continued strong performance  7% sales growth, 13% adjusted profit before tax growth  Adjusted operating margin 70bps higher than H1 2021  Order book growth, £22m of Growth Hub orders  Bahr acquisition provides highly scalable electric actuation portfolio  Interim dividend increased by

  3. Slide 3: Business review

    IMI plc Business review Daniel Shook – Finance Director

  4. Slide 4: Organic revenue and operating profit

    IMI plc Organic revenue and operating profit £m Half year Half year Adjusted Organic 2022 2021 Growth (%) Growth (%)*  Group revenue growth of 7% and Revenue adjusted operating profit growth IMI Precision Engineering** 485 412 18% 7% of 12% IMI Critical Engineering** 312 325 -4% -3%  Organic reven

  5. Slide 5: Income statement

    IMI plc Income statement £m 2022 H1 2021 H1  Adjusted profit before tax up 13% Adjusted operating profit 159.8 142.1  One-off £9m charge related to Russia exit Net interest expense (6.6) (5.7)  Acquired intangible amortisation/other Net pension finance income 0.8 0.3 primarily represents PBM, Bim

  6. Slide 6: Rationalisation plans

    IMI plc Rationalisation plans £m 2022 H1 2022 FY Future years  Restructuring benefits of £7m Restructuring charge (including impairment losses) delivered in the first half and IMI Precision Engineering (8) (29) (35) £10m expected for the full year IMI Critical Engineering - (13) (35)  Forecast cas

  7. Slide 7: Operating cash flow

    IMI plc Operating cash flow £m 2022 H1 2021 H1 Adjusted operating profit 160 142  Investment in inventory to secure customer deliveries Depreciation, impairment & amortisation 28 29 Lease depreciation 14 15  Capital expenditure of £40m represents 1.4x depreciation Adjusted EBITDA 202 186 and amort

  8. Slide 8: IMI Precision Engineering operational review

    IMI plc IMI Precision Engineering operational review £m H1 2022 Acquisition FX Organic 2021 H1 Sales by business Adjusted / Disposal Adjusted** unit*** Industrial Automation £226m Up 14% Revenue 485 35 8 30 412 Precision Fluid OEM £150m Up 5% Organic Growth* 7% 8% Process Control £74m Up 21% Operati

  9. Slide 9: IMI Critical Engineering operational review

    IMI plc IMI Critical Engineering operational review £m H1 2022 Disposal FX Organic H1 2021 Order input by sector*** Adjusted Adjusted** Aftermarket £228m Up 17% Power £82m Up 5% Refining & Petrochemical £75m Up 30% Revenue 312 (4) 1 (10) 325 Oil & Gas £30m Up 41% Organic Growth* -3% 5% Nuclear £24m

  10. Slide 10: IMI Hydronic Engineering operational review

    IMI plc IMI Hydronic Engineering operational review £m 2022 H1 Disposal FX Organic 2021 H1 Adjusted Adjusted Sales by sector IMI TA £78m Up 8% Revenue 175 (1) (3) 9 170 IMI Heimeier £61m Organic growth 5% 20% Flat IMI Pneumatex £32m Operating profit 35.5 (0.1) (1.3) 2.7 34.2 Up 14% Other £4m Operati

  11. Slide 11: Group outlook

    IMI plc Group outlook  Based on the strong first half results and current market conditions, we continue to expect 2022 full year adjusted EPS will exceed 100p

  12. Slide 12: Strategy update

    IMI plc Strategy update Roy Twite – Chief Executive

  13. Slide 13: Delivering our strategy

    IMI plc Delivering our strategy £m Last 12 2019 Growth months Revenue 1,931 1,873 +3% Adjusted Operating Margin 17.4% 14.2% +320bps Adjusted Profit Before Tax 324 251 +29% Return on Invested Capital 13.0% 11.4% +160bps The Core Value Engineering & Value Applications today Customer Expertise tomorrow

  14. Slide 14: Good progress towards financial objectives

    IMI plc Good progress towards financial objectives Target: 5%+ CAGR 3-5% CAGR 5%+ CAGR  Attractive, growing core markets Organic  Expanding the Aftermarket opportunity  Higher growth from Green initiatives  Leveraging our brands and expertise growth  Leveraging our brands and expertise  Levera

  15. Slide 15: IMI Growth Hub pipeline

    IMI plc IMI Growth Hub pipeline Phase 1 Phase 2 Phase 3 Phase 4 Problem Test & learn Develop Scale Identification & Assess  £22m orders won  Better world focus  Transformational growth culture Growth Hub teams working at speed

  16. Slide 16: Enhancing the Portfolio through M&A

    IMI plc Enhancing the Portfolio through M&A  Criteria:  Recent acquisitions:  Better World fit  Attractive markets  Strong customer-pull  Scalable  High barriers to entry / IP  Financials: ROIC > WACC by year 3 Compounding growth through disciplined acquisitions 16

  17. Slide 17: Acquisition of Bahr Modultechnik

    IMI plc Acquisition of Bahr Modultechnik  Acquisition of Bahr completed on 9 June 2022  Adds differentiated electric linear motion systems offering  Highly attractive Better World markets and applications  Transaction EV of €98m (£83m) Multi-axis systems  Significant growth synergy potential 

  18. Slide 18: ESG: Living our Purpose

    IMI plc ESG: Living our Purpose  ‘Breakthrough Engineering for a Better World’ purpose a unifying driver  MSCI “AA” rated, member of FTSE4Good  Science-based Net Zero targets for Scope 1 & 2 Environmental highlights Social highlights Governance highlights  Remain on track to halve CO2e  82% of

  19. Slide 19: Key takeaways

    IMI plc Key takeaways  Our purpose led strategy is delivering  Strong first half results  2022 outlook unchanged 19

  20. Slide 20: Cautionary statement

    IMI plc Cautionary statement By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to be bound by the limitations and conditions set out in this Cautionary statement. This presentation is for your information only and contains fo

  21. Slide 21: Q&A

    IMI Q&A

  22. Slide 22: Appendices

    IMI Appendices

  23. Slide 23: H1 2021 IMI Precision Sales Reclassification

    IMI plc H1 2021 IMI Precision Sales Reclassification IMI Precision Sales Reclassification excluding Energy £m New H1 2021 Industrial Precision Process Life Transport Commercial Rail Energy Segmentation: Total Automation Fluid OEM Control Sciences Vehicle Transferred to Old Segmentation: IMI Critical

  24. Slide 24: H1 2021 IMI Critical Orders and Sales with Energy

    IMI plc H1 2021 IMI Critical Orders and Sales with Energy Orders including Energy Sales including Energy £m H1 2021 Energy Transfer Restated H1 2021 Energy Transfer from Restated Total from IMI Precision H1 2021 Total Total IMI Precision H1 2021 Total Refining & Petrochemical 55 1 56 44 1 45 Power 7

  25. Slide 25: Foreign exchange

    IMI plc Foreign exchange HY 2022 HY 2021 Change Average Rates Euro 1.19 1.15 3% Ready Reckoner for translation impact of movement in FX rates on 2022 FY Performance US Dollar 1.30 1.39 -6% Sensitivity to +/- 1 cent Adjusted Jun-22 Dec-21 Change move in: Revenue Operating Profit Closing Rates Euro +/

  26. Slide 26: Pensions

    IMI plc Pensions £m Jun Dec 2022 2021 Total Position: Liabilities (470) (657) Assets 552 720 Surplus/(deficit) 82 63 UK Schemes: Liabilities (343) (503) Assets 467 632 Surplus 124 129 Overseas Schemes: Liabilities (127) (154) Assets 85 88 Deficit (42) (66) 26

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