Renishaw Plc · LSE:RSW
Renishaw — FY2014 Earnings Presentation
34 slides from Renishaw's earnings presentation, Jul 23, 2014
Slide 1: 2014 results
2014 results 23rd July 2014 Renishaw plc 1
Slide 2: Chairman’s statement
Chairman’s statement • Record revenue of £355.5m (2013: £346.9m), with a record quarterly revenue of £107.0m achieved in final quarter. • Strong demand for our 3D metal additive manufacturing, measurement automation and encoder products. • New product releases during the period include the SPRINT™ h
Slide 3: Financial highlights
Financial highlights 2014 2013 Change £m £m % Revenue £m Revenue 355.5 346.9 +2% 400 346.9 355.5 350 331.9 Operating profit 70.4 79.1 -11% 288.7 300 250 Adjusted profit before tax 70.1 79.2 -11% 181.6 200 Tax 10.7 15.0 -29% 150 100 Adjusted profit after tax 59.4 64.2 -7% 50 0 2010 2011 2012 2013 201
Slide 4: Income statement
Income statement 2014 2013 £m % £m % Change Cost of sales £m 140 125.3 100 110.0 116.0 120 Revenue 355.5 100 346.9 100 +2% 80 100 91.3 % of revenue 80 60 65.3 Cost of sales (125.3) 35 (116.0) 33 +8% 60 40 40 Engineering (inc. R&D) (53.3) 15 (48.7) 14 +9% 20 20 0 0 Gross profit 176.9 50 182.2 53 -3%
Slide 5: Income statement – Adjusted operating profit
Income statement – Adjusted operating profit Operating profit - segmental Adjusted operating profit £m 90 83.2 60 2014 2013 Change 79.3 79.1 80 70.4 50 £m £m % 70 60 40 % of revenue Metrology 74.4 84.5 -12% 50 30 40 Healthcare (4.0) (5.4) -26% 28.1 30 20 Total operating profit 70.4 79.1 -11% 20 10 1
Slide 6: Income statement – Quarterly results
Income statement – Quarterly results Revenue - quarterly Quarterly revenue £m 120 107.0 2014 2013 Change 100 95.9 90.8 85.0 81.9 84.5 £m £m % 79.0 78.3 80 Quarter 1 79.0 95.9 -18% 60 40 Quarter 2 85.0 78.3 +9% 20 Quarter 3 84.5 81.9 +3% 0 Quarter 4 107.0 90.8 +18% Q1 Q2 Q3 Q4 2013 2014 Total 355.5 3
Slide 7: Income statement – Engineering costs
Income statement – Engineering costs Engineering costs Engineering costs (total) £m 60 56.8 50 2014 2013 Change 51.8 47.9 £m £m % 50 40.0 40 % of revenue 40 Total spend 56.8 51.8 +10% 30.9 30 30 Less capitalised 3.5 3.1 +13% 20 20 Income statement 53.3 48.7 +9% 10 10 0 0 2010 2011 2012 2013 2014 201
Slide 8: Income statement – Distribution costs
Income statement – Distribution costs Distribution costs Distribution costs £m 80 75.4 50 69.4 •Expansion of global marketing and distribution infrastructure 70 62.2 to support new and existing products with the recruitment of 60 52.1 40 % of revenue 108 sales, marketing and application engineering
Slide 9: Income statement – Administrative costs and Group headcount
Income statement – Administrative costs and Group headcount Group headcount (at June) Administrative costs £m 40 30 2014 2013 Change 33.7 35 31.5 31.2 25 28.9 No. No. No. 30 % of revenue 20 25 19.9 UK 2,314 2,157 +157 20 15 15 Overseas 1,178 1,078 +100 10 10 5 Total 3,492 3,235 +257 5 0 0 2010 2011
Slide 10: 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 95.6 38.5 40.0 41.2 88.5 88.9 82.3 35.0 28.2 28.7 29.9 24.7 32.3 17.6 13.6 11.3 11.3 10.3 10.3 4.0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Interim Final Total Full year dividend +127% +99%
Slide 11: Group revenue analysis
Group revenue analysis Changes in geographic area Revenue by region £m Change at Change at actual fx % constant fx % 4 5 Far East -3% +2% 1 3 Europe +4% +5% Americas +8% +13% 2 UK & Ireland +15% +15% Total +2% +6% 2014 2014 2013 £m % £m Revenue by major countries 1 Far East 134.6 38 138.8 2014 2013
Slide 12: Group revenue analysis
Group revenue analysis Revenue Revenue – 1st & 2nd half £m 2014 2013 Change 250 £m £m % 191.5 200 184.8 164.0 174.2172.7 Metrology 326.6 317.9 +3% 156.5 147.1 150 132.2 Healthcare 28.9 29.0 -1% 107.7 100 73.9 50 Total 355.5 346.9 +2% 0 2010 2011 2012 2013 2014 •Record revenue, up 2% at actual exchan
Slide 13: Group revenue analysis - Metrology
Group revenue analysis - Metrology Revenue Revenue by region £m 2014 2013 Change £m £m % 4 5 Metrology 326.6 317.9 +3% 1 3 Changes in geographic area Change % 2 Far East -3% Europe +5% Americas +8% 2014 2014 2013 £m % £m UK & Ireland +12% 1 Far East 124.8 38 128.7 2 Continental Europe 91.8 28 87.3 R
Slide 14: Metrology highlights
Metrology highlights •Good growth in 3D metal additive manufacturing, measurement automation and encoder product lines. •Increased R&D investment. •Introduction of SPRINT™ high speed contact scanning system for machine tools. •Launch of ultra-compact ATOM™ readhead, an innovative optical linear and
Slide 15: New product releases / Metrology
New product releases / Metrology PH10M-iQ PLUS probe head – new version of PH10 SPA3 – high with “inferred qualification”, ideal for “body in powered, compact white” inspection. CMM amplifier. RSP2 V2 – new improved version of the REVO 2D scanning probe with lower laser classification. UCCsuite 4.6
Slide 16: New product releases / Metrology
New product releases / Metrology On-machine verification software – updated to improve reporting of GD&T and sections. Process control software - updated to include support for Multi-Task Machines. Launch of new offering in conjunction with CNC Software – integration of Productivity+ into MasterCAM.
Slide 17: New product releases / Metrology
New product releases / Metrology Laser encoder RLI20 interface. XCal-View analysis software. ATOM linear and rotary systems. XR20-W 90 degree bracket. Quarryman® Pro laser scanner. Renishaw plc 17 2014 results
Slide 18: Group revenue analysis - Healthcare
Group revenue analysis - Healthcare Revenue Revenue by region £m 2014 2013 Change £m £m % 5 4 Healthcare 28.9 29.0 -1% 1 Changes in geographic area 3 Change % 2 Far East -3% Europe -3% Americas +17% 2014 2014 2013 £m % £m UK & Ireland +35% 1 Far East 9.8 34 10.1 2 Continental Europe 8.4 29 8.7 Resul
Slide 19: Healthcare highlights
Healthcare highlights •Further sales of the neuromate® surgical robot. Neuromate® surgical robot. •In the USA, the US Food and Drug administration (FDA) issued clearance to market the neuromate frameless Gen II stereotactic robotic system. The USA is the largest global market for medical devices and
Slide 20: Healthcare highlights
Healthcare highlights •Potential healthcare applications of surface enhanced inVia Raman microscope. Raman scattering (“SERS”) – the detection method behind Renishaw Diagnostics Limited's RenDx® technology – have recently been described in two high profile UK publications. The papers, which have att
Slide 21: Healthcare highlights
Healthcare highlights •Encouraging interest in our 3D metal additive AM produced dental structures. manufacturing system for dental applications and maxillofacial restorations. AM produced maxillofacial guides and implants. Image courtesy of PDR. Realistic translucent zirconia - high translucency al
Slide 22: Other awards
Other awards •Renishaw was amongst the first five businesses to achieve the new Carbon Trust Waste Standard, which was launched on 5th November 2013. The world's first international standard for organisational waste reduction, it is awarded to businesses able to demonstrate that they are measuring,
Slide 23: Other awards
Other awards •Sir David McMurtry received The Daily Telegraph Award for a Decade of Excellence in Business at the 2013 UK National Business Awards, held at London's Grosvenor House Hotel on Tuesday 12 November 2013. Sir David was the unanimous choice of the Advisory Board for this prestigious award
Slide 24: Cash flow
Cash flow Change in cash balance for the period £m 0 20 40 60 80 100 120 140 160 180 b/fwd June 2013 26.6 adjusted PBT 70.1 Delcam receipt 32.0 depreciation and amortisation 23.0 fx changes 3.7 working capital (19.7) R&D capitalisation (11.8) capital expenditure (net) (38.4) dividends paid (28.9) ta
Slide 25: Balance sheet
Balance sheet £m June 2014 June 2013 Change % Total equity £m Property, plant & equipment 140.9 117.9 +20% 400 350.8 Intangible assets & investments 58.8 63.5 -7% 350 Deferred tax assets 16.2 18.3 -11% 300 276.7 242.4 250 201.7 Derivatives 18.6 8.0 +132% 200 158.6 150 Total non-current assets 234.5
Slide 26: Capital expenditure
Capital expenditure 2014 2013 £m £m Capital expenditure £m 45 Capital expenditure 39.2 28.0 39.2 40 •Property 35 30.3 28.0 •Nearing-completion of 153,000 sq ft building at New 17.9 30 Mills. 25 •Purchase of adjoining premises at Renishaw GmbH, 16.7 Germany, giving an additional 116,000 sq ft. 16.5 2
Slide 27: Capital expenditure - property
Capital expenditure - property Renishaw plc, New Mills. Renishaw plc 27 2014 results
Slide 28: Capital expenditure - property
Capital expenditure - property Acquired properties in Germany. Acquired offices in Shanghai. Renishaw plc 28 2014 results
Slide 29: Miskin plans
Miskin plans existing buildings Renishaw has submitted a planning application for 1.74 million sq ft of development in South Wales. The proposal has the potential to create hundreds of jobs, generated by Renishaw's own expansion and the new businesses that would be attracted to the 77 hectare site.
Slide 30: Outlook
Outlook The new financial year has started well and, with the ever growing range of products, processes and applications and our skilled and experienced employees, your directors remain confident in the prospects for the Group. Renishaw plc 30 2014 results
Slide 31: Questions ?
Questions ? Renishaw plc 31 2014 results
Slide 32: Cash flow from operating activities
Cash flow from operating activities 2014 2013 Cash from operating activities £m £m £m 90 79.6 80 67.1 Adjusted profit before tax 70.1 79.2 70 58.8 59.8 60 50 Depreciation and amortisation 23.0 21.1 40 30 24.5 Financial income and expenses 1.1 0.9 20 Share of profits from associates (1.0) (1.3) 10 0
Slide 33: Cash flow
Cash flow 2014 2013 Cash balance £m £m £m 60 53.1 Cash from operating activities 59.8 79.6 50 37.6 34.5 32.6 9.5 40 30 10.8 11.0 Interest received less paid 0.5 0.8 11.5 20 43.6 Dividends paid less received (28.9) (28.5) 31.1 26.6 10 23.7 21.1 Fixed assets purchased (net) (38.4) (27.7) 0 Intangible
Slide 34: 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