Rotork Plc · LSE:ROR
Rotork — H1 2006 Earnings Presentation
30 slides from Rotork's earnings presentation, Aug 2, 2006
Slide 1: Rotork plc Interim Results 2nd August 2006
Rotork plc Interim Results 2nd August 2006
Slide 2: Financial Highlights
INTERIM RESULTS - 2006 Financial Highlights • Turnover increased by 29% to £101.3m (2005: £78.3m) • Order intake 28% higher than first half 2005 • Profit before tax increased by 38% to £22.5m (2004: £16.3m) • EPS 17.6p up 39% (2005: 12.7p) • Record order book up 24% since December 2005 • Interim div
Slide 3: Turnover by division
INTERIM RESULTS - 2006 Turnover by division 2006 2005 £m £m Electrics up 26.0% 73.4 58.2 Gears up 24.9% 11.7 9.3 Fluid system up 43.8% 19.1 13.3 Intersegmental elimination (2.9) (2.5) _____ _____ Total up 29.3% 101.3 78.3 The world leader in actuation solutions
Slide 4: Currency translation effect
INTERIM RESULTS - 2006 Currency translation effect 2006 2005 2005 2004 2003 H1 H1 FY FY FY Average rate US$ 1.80 1.85 1.80 1.83 1.66 €uro 1.45 1.46 1.46 1.46 1.44 US$ €uro 1.95 1.52 1.9 1.5 1.85 1.48 1.46 1.8 1.44 1.75 1.42 1.7 1.4 Dec Jan Feb Mar Apr May Jun Dec Jan Feb Mar Apr May Jun 2006 2005 20
Slide 5: Currency translation effect on turnover
INTERIM RESULTS - 2006 Currency translation effect on turnover 2006 2005 2005 2004 2003 H1 H1 FY FY FY Average rate US$ 1.80 1.85 1.80 1.83 1.66 €uro 1.45 1.46 1.46 1.46 1.44 Effect on turnover US$ increased turnover by £ 1.1 m Canadian $ increased turnover by £ 0.7 m €uro increased turnover by £ 0.
Slide 6: Operating profit
INTERIM RESULTS - 2006 Operating profit 2006 2005 £m £m Electrics up 29.3% 18.8 14.5 Gears up 21.8%* 2.2 1.9 Fluid system up 150.3%* 2.0 0.8 Unallocated (1.0) (1.0) _____ _____ Total up 35.8% 22.0 16.2 Group return on sales 21.8% 20.7% * After deduction of intangible amortisation under IFRS 3 The wo
Slide 7: Income Statement – currency effect
INTERIM RESULTS - 2006 Income Statement – currency effect 2006 2005 £m £m Operating profit +35.8% 22.0 16.2 Translation impact (0.4) - Transaction impact (0.6) - _____ _____ Operating profit at 2005 rates +29.1% 21.0 16.2 The world leader in actuation solutions
Slide 8: Income Statement
INTERIM RESULTS - 2006 Income Statement 2006 2005 £m £m Turnover as reported +29.3% 101.3 78.3 Operating profit +35.8% 22.0 16.2 Profit before tax +38.5% 22.5 16.3 Earnings per share +38.6% 17.6p 12.7p Effective tax rate: 2006 H1 32.6% 2005 FY 32.9% Dividend 6.50p 5.90p The world leader in actuation
Slide 9: IFRS3 Write Down
INTERIM RESULTS - 2006 IFRS3 Write Down 2006 2005 Underlying IFRS3 As Underlying IFRS3 As trading intangible reported trading intangible reported £m £m £m £m £m £m Turnover as reported 101.3 - 101.3 78.3 - 78.3 Profit from operations 22.1 (0.1) 22.0 16.4 (0.2) 16.2 Profit before tax 22.6 (0.1) 22.5
Slide 10: Dividend
INTERIM RESULTS - 2006 Dividend Payments in 2006 Total cost • May 2006 9.9p £8.5m 2005 final dividend • July 2006 5.8p £5.0m 2006 add’l dividend • Sept 2006 6.5p £5.6m 2006 interim dividend • Dec 2006 5.8p £5.0m 2006 add’l dividend Plus • May 2007 To be announced with 2006 results 2006 final dividen
Slide 11: Inventory
INTERIM RESULTS– 2006 Inventory 35,000 30,000 25,000 Value £000's 20,000 15,000 10,000 5,000 0 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Components WIP / FGS The world leader in actuation solutions
Slide 12: Cash flow – major issues and timing
INTERIM RESULTS - 2006 Cash flow – major issues and timing One-off outflows in 2006 include First half • February £1.6m acquisition of Omag Srl (purchase price plus debt) • March £2m additional pension contribution • June £2m additional pension contribution Second half • July £5m additional dividend
Slide 13: Cash flow Summary
INTERIM RESULTS - 2006 Cash flow Summary 2006 2005 £m £m Operating profit 22.0 16.2 Depreciation 1.2 1.4 Capital expenditure (1.2) (0.7) Working capital movement (2.7) (1.8) Non cash IFRS adjustments (0.1) (0.4) Currency on cash held (0.3) (0.7) _____ _____ Operating cash flow 18.9 14.0 Operating ca
Slide 14: Cash flow Summary
INTERIM RESULTS - 2006 Cash flow Summary 2006 2005 £m £m Operating cash flow 18.9 14.0 Tax paid (4.8) (3.9) _____ _____ 14.1 10.1 Dividends (8.5) (8.3) Additional pension contribution (4.0) - Acquisitions (1.6) (7.3) Financing (0.3) 0.9 _____ _____ Non operating spend (14.4) (14.7) Net cash inflow (
Slide 15: Rotork plc Interim Results 2nd August 2006
Rotork plc Interim Results 2nd August 2006
Slide 16: Order input and order book
INTERIM RESULTS – 2006 Order input and order book •Input £119m +28% •Order book £ 79m •On 1st Jan 2006 +24% •On 30th June 2005 +26% The world leader in actuation solutions
Slide 17: Input per Quarter from 2003
INTERIM RESULTS - 2006 Input per Quarter from 2003 70 60 50 40 £m 30 20 10 0 Q1 2003 Q2 Q3 Q4 Q1 2004 Q2 Q3 Q4 Q1 2005 Q2 Q3 Q4 Q1 2006 Q2 The world leader in actuation solutions
Slide 18: Rotork Electric
INTERIM RESULTS – 2006 Rotork Electric • Order Input + 24% • Order Book + 16% [on 1.1.2006] • Revenue + 26% • Operating Profit + 29% • Profit Margin 25.6% The world leader in actuation solutions
Slide 19: Electric Actuator Unit Input by Industry
INTERIM RESULTS - 2006 Electric Actuator Unit Input by Industry Note 2006 Units are up 15% on 2005 Misc. 8% Power H/Carbons 34% 33% Misc. 9% Power 32% H/Carbons 38% Water/Waste Water 25% Jan to June 05 Water/Waste Water 21% Jan to June 06 The world leader in actuation solutions
Slide 20: Electric Actuator Unit Input by Final Destination
INTERIM RESULTS - 2006 Electric Actuator Unit Input by Final Destination Asia/Far East Americas 54% 17% UK 8% Asia/Far East Americas 47% 17% UK Europe 13% 9% M.East/Africa 8% Jan to June 2005 Europe 14% M.East/Africa 13% Jan to June 2006 The world leader in actuation solutions
Slide 21: Shanghai Factory
SHANGHAI FACTORY The world leader in actuation solutions
Slide 22: Pakscan
INTERIM RESULTS - 2006 Pakscan 3 •Major upgrade to Rotork’s proprietary Pakscan system to be rolled out during Q3 2006 •Backwards compatible with earlier dual redundant network •Fully integrated web support allowing remote system monitoring and upgrade •Enhanced user interface •Prepares the way for
Slide 23: Rotork Fluid System
INTERIM RESULTS - 2006 Rotork Fluid System • Order Intake +36% • Order Book +36% [on 1.1.2006] • Revenue +44% • Operating profit +150% • Profit margin 10.3%
Slide 24: GP350 pipeline shutdown actuator, Lucca, Italy
INTERIM RESULTS - 2006 “Largest to date” the GP350 pipeline shutdown actuator at Rotork Fluid System’s factory in Lucca, Italy.
Slide 25: Rotork Gears
INTERIM RESULTS - 2006 Rotork Gears Excl Gears Srl •Order Intake +46% +16% •Order book +99% +46% •Revenue +25% +12% •Operating Profit +22% +12% •Profit Margin 19.4% 19.9% The world leader in actuation solutions
Slide 26: Large Gearboxes
INTERIM RESULTS - 2006 Large Gearboxes
Slide 27: Outlook
INTERIM RESULTS - 2006 OUTLOOK The level of business has exceeded our expectations in the first half of the year. Most of our markets continue to be healthy with significant levels of investment planned for the future. With buoyant markets and record order books we anticipate delivering a strong per
Slide 28: Appendices
Rotork plc Interim Results 2nd August 2006 Appendices
Slide 29: Cashflow Slide reconciliation
INTERIM RESULTS - 2006 Cashflow Slide 1 reconciliation June to cash June flow June June 2006 2006 2005 2005 £000 £000 £000 £000 Profit for the year 15,189 10,905 Financial income (2,774) (2,169) Financial expenses 2,265 2,116 Income tax expense 7,350 5,372 Operating profit 22,030 16,224 Depreciation
Slide 30: Cashflow Slide reconciliation to cash flow
INTERIM RESULTS - 2006 Cashflow Slide 2 reconciliation to cash flow June June June June 2006 2006 2005 2005 £000 £000 £000 £000 Operating cash flow 18,903 13,999 Income taxes paid (4,791) (3,933) Pension lump sum (4,000) 0 Dividends on ordinary shares (8,537) (8,342) Acquisition of subsidiary net of