Rotork Plc · LSE:ROR
Rotork — Investor Presentation (June 2005)
15 slides from Rotork's investor presentation, Jun 21, 2005
Slide 1: Rotork plc IFRS restated Accounts
Rotork plc IFRS restated Accounts Lucca, 21 June 2005
Slide 2: IFRS Restated Accounts: reported numbers recap
IFRS Restated Accounts To recap – the main reported numbers have been: 2004 2003 £000 £000 Turnover 146,883 135,964 Operating profit 29,854 27,110 Profit before tax and goodwill 31,784 29,473 Profit before tax 30,491 28,168 EPS (before goodwill) 24.7p 23.3p The world leader in actuation solutions
Slide 3: Main impacts of IFRS on Rotork
IFRS Restated Accounts The main impacts on Rotork have been: • Cost of share schemes • Treatment of intangibles • Capitalised development costs • Treatment of exchange gains / losses The world leader in actuation solutions
Slide 4: Cost of share schemes
IFRS Restated Accounts COST OF SHARE SCHEMES IFRS2 – provides a prescriptive methodology for calculating and accounting for these scheme costs Options / SAYE • Rotork does not have a senior executive option scheme • There is a general SAYE scheme applicable to all UK employees • Satisfied by the iss
Slide 5: Treatment of intangibles
IFRS Restated Accounts TREATMENT OF INTANGIBLES IFRS3 – Business Combinations (Changes the treatment of goodwill in the accounts) • New rules on how purchase price is allocated to intangible assets • Goodwill no longer amortised • Stricter application of impairment Effect on the 2004 accounts • No l
Slide 6: Capitalised development costs
IFRS Restated Accounts CAPITALISED DEVELOPMENT COSTS IAS38 – Requires certain development costs to be capitalised as an asset • From the point of technical and commercial feasibility • Amortised over 5 years Effect on the 2004 accounts • Have to go back 5 years to create cumulative Asset and Depreci
Slide 7: Treatment of exchange gains
IFRS Restated Accounts TREATMENT OF EXCHANGE GAINS IAS21 – Changes where exchange movements are reported in the income statement Effect on the 2004 accounts • Exchange gain of £440k is removed from Operating income and credited to Financial income / expenses – Profit from operations reduced by £440k
Slide 8: Profit before tax reconciliation
IFRS Restated Accounts PROFIT BEFORE TAX RECONCILIATION 2004 £000 UK GAAP PBT 30,491 Add back goodwill 1,293 ______ UK GAAP PBT before goodwill 31,784 Share scheme adjustments 12 Amortisation of intangibles (70) Development cost adjustment (220) ______ IFRS basis PBT 31,506 ===== The world leader in
Slide 9: 2004 as reported versus IFRS
IFRS Restated Accounts 2004 2004 As reported IFRS £000 £000 Turnover 146,883 146,883 Operating profit 29,854 30,432 Profit before tax and goodwill 31,784 31,506 Profit before tax 30,491 31,506 EPS (before goodwill) 24.7p 24.5p The total effect on profit before tax is to increase 2004 by £1,015k. Pro
Slide 10: Balance sheet
IFRS Restated Accounts BALANCE SHEET Balance • A complete reshuffle of what goes where • Largely presentational • Issues of substance are: – Dividends no longer accrued for (increases equity £8million) – Goodwill Increases as an asset as it isn’t amortised – IAS 19 numbers now gross not netted off –
Slide 11: Appendices
IFRS Restated Accounts Balance Appendices
Slide 12: Operating profit reconciliation 2004
IFRS Restated Accounts – Appendix 1 OPERATING PROFIT RECONCILIATION 2004 £000 UK GAAP Operating profit 29,857 Add back goodwill 1,293 ______ UK GAAP Operating profit 31,150 before goodwill Share scheme adjustments 12 Amortisation of intangibles (70) Development cost adjustment (220) Currency gains (
Slide 13: Income statement reconciliation
IFRS Restated Accounts – Appendix 2 INCOME STATEMENT RECONCILIATION UK Share Amortisation Capitalised Disclosure Reverse IFRS GAAP based of acquired development of exchange goodwill payments intangibles costs gains write down Revenue 146,883 146,883 Cost of sales (79,030) (17) (50) (79,097) Gross pr
Slide 14: Balance sheet reconciliation: assets
IFRS Restated Accounts – Appendix 3 BALANCE SHEET RECONCILIATION Assets UK Share Intangibles Capitalised Reverse Presentation IFRS GAAP based acquired development goodwill adjustment payments write down Property, plant & equipment 13,877 13,877 Intangible assets 18,174 (70) 772 1,293 20,169 Deferred
Slide 15: Balance sheet reconciliation: liabilities
IFRS Restated Accounts – Appendix 4 BALANCE SHEET RECONCILIATION Liabilities UK Share Intangibles Capitalised Reverse Reverse Presentation IFRS GAAP based acquired development goodwill declared adjustment payments write down dividend Equity 58,135 716 (49) 541 1,293 8,342 (724) 68,254 Interest beari