Renishaw Plc · LSE:RSW
Renishaw — FY2004 Earnings Presentation
24 slides from Renishaw's earnings presentation, July 2004
Slide 1: 2004 Annual results
apply innovation 2004 Annual results July 2004
Slide 2: Chairman's statement
apply innovation Chairman’s statement I have pleasure in announcing a successful set of results for the 12 months ended 30th June 2004. Turnover rose by 15% to £127.7m (2003 £110.6m), an increase of 19% if measured at constant exchange rates. This represents the highest turnover in the Company’s his
Slide 3: Chairman's statement continued
apply innovation Chairman’s statement continued Capital expenditure Capital expenditure, including that on new manufacturing equipment, amounted to £15.6m (2003 £8.2m), of which £6.5m (2003 £2.7m) was spent on freehold property, with the new offices in Japan costing £5.1m. Further investment was mad
Slide 4: Financial highlights
apply innovation Financial highlights £m Profit before tax 35 2004 2003 change 30 £m £m % 25 20 15 Sales 127.7 110.6 +15% 10 5 0 Operating profit 18.1 15.6 +15% 2000 2001 2002 2003 2004 Profit before interest and currency Interest +FRS17 Currency Profit before tax 20.1 17.8 +13% £m % of sales Cash a
Slide 5: Profit and loss account
apply innovation Profit and loss account R&D 2004 2003 change 2004 2003 £m £m % £m £m 15.5 14.2 Sales 127.7 110.6 +15% Cost of sales 47.1 39.7 +19% R&D (incl Engineering) 22.0 20.2 +9% Engineering costs £m % of sales Gross profit 58.6 50.7 +16% 25 25 Distribution costs 25.2 22.9 +10% 20 20 Administr
Slide 6: Profit and loss account
apply innovation Profit and loss account 2004 2003 £m % £m % Cost of sales (excl. Engineering) £m % of sales Sales 127.7 100 110.6 100 50 40 Cost of sales 47.1 37 39.7 36 40 30 R&D (incl Engineering) 22.0 17 20.2 18 30 Gross profit 58.6 46 50.7 46 20 20 Distribution costs 25.2 20 22.9 21 10 10 Admin
Slide 7: Profit and loss account
apply innovation Profit and loss account Distribution costs •Further investment in emerging markets and new £m % of sales geographic regions 30 25 25 20 •New employees +30 overseas 20 15 15 •New offices to be opened in China and Russia 10 10 5 5 0 0 2000 2001 2002 2003 2004 Distribution costs % of s
Slide 8: Profit and loss account
apply innovation Profit and loss account Administrative expenses, excluding currency profits •Administration expenses, excluding currency gains £m % of sales and redundancy costs (2002) 25 25 20 20 15 15 10 10 5 5 0 0 2000 2001 2002 2003 2004 Administrative expenses % of sales Notes
Slide 9: Profit and loss account
apply innovation Profit and loss account 2004 2003 change £m £m % Operating profit, before currency profits £m % of sales Operating profit (pre-currency) 17.7 12.6 +40% 30 30 Interest income 2.0 2.0 - 20 20 Currency gains 0.4 3.0 -87% FRS 17 - 0.2 - 10 10 Profit before tax 20.1 17.8 +13% 0 0 2000 20
Slide 10: Profit and loss account
apply innovation Profit and loss account Earnings per share Dividend per share 34.0 35 20 18.00 29.1 15.90 16.70 30 15.14 15 13.16 12.39 25 20.9 22.1 10.82 11.36 19.7 10.30 8.95 pence 20 10 pence 5.08 5.34 5.61 15 4.21 4.84 10 5 5 0 0 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 First half Seco
Slide 11: Sales analysis
apply innovation Sales analysis •Highest turnover in the Company’s history Turnover £m •Sales up 15% at actual exchange rates 140 125.3 127.7 120 105.6 104.5 110.6 •Sales would have been up 19% at the previous year’s 100 exchange rates, i.e. £3.8m higher 80 60 40 •All geographical regions showed gro
Slide 12: Sales analysis
apply innovation Sales analysis Other (2%) •Emerging markets and Russia also showed good 2% growth UK (9%) 7% •All product lines grew, especially Digitising (including Dental), Encoders, Calibration and Machine Tool Europe (37%) products 38% America (28%) 26% •Order book continued to grow during the
Slide 13: Group sales
apply innovation Group sales 2004 2003 change at p/y fx change fx effect £m £m % £m % + - Continental Europe 49.0 41.6 +18% 48.0 +15% 1.0 EUR Far East 34.1 26.4 +29% 35.8 +36% 1.7 JPY/USD America (North & South) 33.3 31.2 +7% 36.4 +17% 3.1 USD ROW 2.5 1.7 +40% 2.5 +41% UK & Ireland 8.8 9.7 -9% 8.8 -
Slide 14: Capital expenditure
apply innovation Capital expenditure •Total capital spend £15.6m (2003 £8.2m), of which £6.5m spent on property, £8.2m on plant and £0.9m on vehicles Capital expenditure £m 20 •Property additions - 15 •Continuing refurbishment of production 10 facilities at Woodchester, Phase 2 now complete. Woodche
Slide 15: Capital expenditure
apply innovation Capital expenditure •Further investment in manufacturing plant and New property in Japan equipment •Additional expenditure on IT systems to support design, marketing and management information systems and group IT infrastructure Assembly operations at Woodchester New Surface mount t
Slide 16: Organisation
apply innovation Organisation •Headcount now 1,754 (June 2003 1,639), an increase of 115 people, including 68 in manufacturing and 30 overseas •Awards received during the year - •Queen’s Award for Enterprise for the OMP40 spindle probe •Metalworking and Production award for SP25 Presentation of Quee
Slide 17: New product releases
apply innovation New product releases Signum intelligent encoder systems Piccolo 2.1 which adds extra functionality and has the ability to scan dental abutments Magnetic rotary encoder product range UCC2 and SPA2 controllers
Slide 18: New product releases
apply innovation New product releases OMP 40 compact NC4 non-contact laser system spindle probe for high speed tool setting and tool breakage detection RMP60/RMI radio system using FHSS (Frequency hopping spread spectrum) Productivity+ - integrates probing into CAM software.
Slide 19: New product releases
apply innovation New product releases InVia reflex raman microscope combined with a Leica confocal scanning microscope Release of new laser software, Windows 2000/XP compatible, incorporating Taiwanese and Korean languages. Also, Russian and Czech language versions of Ballbar 5 HPS software released
Slide 20: Balance sheet
apply innovation Balance sheet £m Working capital 70 66.5 66.8 66.5 61.2 61.9 2004 2003 change 60 £m £m % 50 40 Fixed assets 58.5 50.8 30 +15% 20 10 Stock 22.3 20.2 +10% 0 2000 2001 2002 2003 2004 Debtors 32.8 29.6 +11% Cash 32.8 37.2 -12% Shareholders' funds Creditors (26.0) (20.5) +27% £m 120 109.
Slide 21: Cash flow from operating activities
apply innovation Cash flow from operating activities 2004 2003 £m £m Operating profit 18.1 15.6 £m Cash inflow from operating activities Depreciation 6.8 6.3 30 26.0 Additional pension contributions (0.6) (1.5) 24.5 25 22.2 20.5 (Increase)/decrease in stock (2.1) 1.9 18.3 20 (Increase) in debtors (4
Slide 22: Cash flow
apply innovation Cash flow 2004 2003 £m £m £m Bank balances Cash from operating activities 22.2 20.5 39.7 39.3 40 35.7 37.2 35 32.8 Interest received 2.0 1.9 30 Tax paid (3.1) (1.4) 25 Dividends paid (12.4) (11.8) 20 Fixed assets purchased (net) (14.7) (8.0) 15 Fx changes 1.6 0.3 10 5 Total cash mov
Slide 23: Future business plans
apply innovation Future business plans •Renishaw continues to develop key technologies and processes in each of its business areas to support continued sales growth and to remain the market leader. •These include include further growth in our traditional markets as well as continued emphasis in the
Slide 24: Key objectives
apply innovation Key objectives •Renishaw fundamentally believes that success comes from innovative and patented products and processes, low cost, high quality manufacturing, and the ability to provide excellent local customer support in all our markets. Notes