Slide 1: Accelerating Globalisation: 2012 Full Year Results
Accelerating Globalisation 2012 Full Year Results 14 March 2013 ©2013 TT electronics plc 1
Slide 2: Summary
Summary • Improved operating profit margin • Wholly focused electronics business • Strengthened global footprint • Increasing new product development capacity • Strong cash generation and balance sheet • Focusing on ‘Sensing and Control’ December 2012: Full Year Results ©2013 TT electronics plc 2
Slide 3: Performance
Performance Revenue1 Operating Net (debt)/cash (£m) profit margin1,2 (£m) 600 7.0% 6.2% 70 509.6 476.9 5.6% 46.7 500 470.3 6.0% 50 5.0% 30 15.2 400 4.0% 4.0% 10 300 3.0% -10 200 2.0% -30 (9.9) 100 1.0% -50 0 0.0% -70 2010 2011 2012 2010 2011 2012 2010 2011 2012 1 continuing operations 2 before excep
Slide 4: Financial Summary: Key financials
Financial Summary Key financials 2012 2011 Continuing operations £m £m Change Revenue 476.9 509.6 (4.1)%1 Operating profit2 29.4 28.7 2.4% Operating profit margin 6.2% 5.6% 60 bps Profit before tax2 26.7 24.5 9.0% Earnings per share (pence)2 12.6p 11.4p 10.5% Underlying operating cash flow2 45.4 61.
Slide 5: Financial Summary: Operating profit before exceptionals
Financial Summary Operating profit before exceptionals (£m) 35 30 28.7 8.6 29.4 (0.9) (4.3) 25 (2.7) 20 15 10 5 0 Operating Foreign Sales Inflation on SG&A Productivity, pricing & Operating profit profit 2011 exchange change margin 2012 December 2012: Full Year Results ©2013 TT electronics plc 5
Slide 6: Financial Summary: Exceptional items
Financial Summary Exceptional items 2012 2011 Full Year Full Year £m £m Reduction in UK pension liabilities - 7.5 Restructuring costs (3.2) (5.2) Negative goodwill on business acquisition 0.3 - Acquisition costs (0.4) - Total (3.3) 2.3 December 2012: Full Year Results ©2013 TT electronics plc 6
Slide 7: Financial Summary: Group cash flow
Financial Summary Group cash flow (£m) 50 (24.8) 37.5 (3.0) 20.5 45 (7.3) 40 (5.8) 35 31.5 30 29.4 (3.5) 25 (4.1) 20 (3.7) 15 (3.7) 10 5 0 Operating Working Depreciation & Capital Exceptional Pension fund Tax & interest Disposals Acquisitions Dividends Other Net cash profit capital amortisation inve
Slide 8: Global Reach and Growth Markets
Balance Global Reach Growth Markets Rest of World Central & 1% 1% South America Defence and Other Asia aerospace 13% North America Other 12% 5% 20% transportation United 9% Kingdom 16% Medical 7% Passenger car 41% 49% 26% Industrial Rest of Europe Revenue by geography Revenue by market December 2012
Slide 9: Divisional Review: Components
Divisional Review Components 2012 2011 £m £m Revenue 226.0 242.7 Operating profit 14.8 14.8 Operating profit margin 6.5% 6.1% • Increased share and added new customers • New wins included commercial aviation, satellite and transport applications • Operational improvement and cost control contributed
Slide 10: Divisional Review: Sensors
Divisional Review Sensors 2012 2011 £m £m Revenue 148.2 166.9 Operating profit 8.4 8.8 Operating profit margin 5.7% 5.3% • Robust performance from top three OEMs, weaker demand from other auto and truck customers • 40 bps improvement in margin, whilst investing to support future growth • Commenced t
Slide 11: Divisional Review: IMS
Divisional Review IMS 2012 2011 £m £m Revenue 102.7 100.0 Operating profit 6.2 5.1 Operating profit margin 6.0% 5.1% • Good level of new business won in a challenging market • Target operating profit margin met • Acquisition of ACW Technology completed, expected to add c.£25m sales in 2013 • First b
Slide 12: Group Progress and Future Direction
Group Progress and Future Direction The image part with relationship ID rId3 was not found in the file. Accelerating globalisation … December 2012: Full Year Results ©2013 TT electronics plc 12
Slide 13: Value Creation
Value Creation 2009 2012 Revenue £499.6m Revenue c.£500m* Margin 1.3% Margin 6.2% Net Debt £113.2m Net Cash £46.7m Components 38% Components 45% Sensors 21% Secure Power & General Industrial sold; Sensors balance sheet 30% IMS 15% strengthened Secure Power 12% IMS General 25% Industrial 14% *Include
Slide 14: Accelerating Globalisation
Accelerating Globalisation Focus Investment Value ©2013 TT electronics plc 14
Slide 15: Value Creation
Value Creation 2009 2012 Revenue £499.6m Revenue c.£500m* Margin 1.3% Margin 6.2% Net Debt £113.2m Net Cash £46.7m Components 22% Components 38% Components 45% Sensing Sensors Secure Power Investment for & Control 21% & General growth; drive 53% Industrial sold; Sensors shareholder balance sheet 30%
Slide 16: 'Sensing and Control'
‘Sensing and Control’ Sensor: Controller: Converts physical Processes inputs and variable into an sends instruction to electronic signal system Intelligence Software and Integrated Circuits Harsh Environment Packaging Integration “Sensing and Control” December 2012: Full Year Results ©2013 TT electr
Slide 17: Transportation
Transportation Small car: 10-20 sensors & control points Braking & Suspension 6-8 sensing & control points Premium car: 100+ sensors & control points - ABS speed - Smart chassis height & position - Brake fluid level and pressure Steering & Throttle 4-6 sensing & control points - Electronic power ste
Slide 18: Transportation
Transportation Small car: 10-20 sensors & control points Premium car: 100+ sensors & control points Engine performance Control unit analyses sensor inputs and provides output signals to: − Improve performance Pump Controller − Reduce emissions − Increase reliability − Increase service intervals − Im
Slide 19: Industrial Automation
Industrial Automation Modern conveyor systems: 15-35 sensors & control points Air compressors: 10-50 sensors & control points CNC machines: 25-40 sensors & control points CNC Machine 25-40 Sensors & Control points: - Cutter position - Water/oil/air pressure Compressor - Tool wear module 10-50 Sensor
Slide 20: Aerospace
Aerospace Business Aviation: 50-100 sensors & control points Commercial Aviation: 150-250 sensors & control points Military Aviation: 50-85 sensors & control points Doors* 25-45 Sensors & Control points: – Actuator control – Position sensors Flight Controls – Pressure sensors 30-40 Sensors & Control
Slide 21: Sensing and Control
Sensing and Control Market Access Major OEM accounts Global sales/operations reach Value Proposition Innovation Reputation Core sensing & control Known for excellence technologies Deep domain expertise Packaging & integration Trusted partner Control electronics Innovative Solutions Global Capabiliti
Slide 22: Summary and Outlook
Summary and Outlook • Resilient 2012 performance • Enhanced focus with disposals • Continuing self help actions • Strengthened operational footprint • Disciplined approach to acquisitions • Positioning for future growth and improved margins Focusing on Sensing and Control December 2012: Full Year Re
Slide 23: Analyst & Investor Day June 2013
Analyst & Investor Day 25 June 2013 Haberdashers Hall, London December 2012: Full Year Results ©2013 TT electronics plc 23
Slide 24: Appendices
Appendices December 2012: Full Year Results ©2013 TT electronics plc 24
Slide 25: Income Statement
Income Statement 2012 2011 Continuing operations £m £m Revenue 476.9 509.6 Operating profit1 29.4 28.7 Net interest payable (2.2) (3.2) Net finance cost on pension schemes (0.5) (1.0) Profit before taxation1 26.7 24.5 Exceptional items (3.3) 2.3 Taxation (6.2) (5.3) Profit after taxation 17.2 21.5 H
Slide 26: Impact of FX
Impact of FX Sales Components Sensors IMS Group As published 226.0 148.2 102.7 476.9 FX impact (adverse) / favourable (3.0) (10.5) 1.7 (11.8) At 2011 rates 229.0 158.7 101.0 488.7 Operating Profit As published 14.8 8.4 6.2 29.4 FX impact (adverse) / favourable - (1.1) 0.2 (0.9) At 2011 rates 14.8 9.
Slide 27: Taxation – Continuing Operations
Taxation – Continuing Operations 2012 2011 £m £m Tax charge Underlying 7.0 6.9 Exceptional items (0.8) (1.6) 6.2 5.3 Effective tax rate Underlying 26.2% 28.2% • Further progress in reducing effective rate due to proactive tax planning • Cash tax repayment received in USA of $4m relating to 2011 Dece
Slide 28: Earnings Per Share
Earnings Per Share 2012 2011 £m £m Profit before tax and exceptional items 26.7 24.5 Tax (7.0) (6.9) Underlying earnings 19.7 17.6 Average number of shares (million) 156.1 154.9 Headline earnings per share (pence) 12.6p 11.4p Basic earnings per share (pence) Continuing operations 11.0p 13.9p Total 1
Slide 29: Working Capital
Working Capital 180.0 30% 160.0 25% 140.0 120.0 20% 100.0 15% 80.0 £m 60.0 10% 40.0 5% 20.0 - 0% Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012 Dec 2012 Total trade working capital Working capital / sales % December 2012: Full Year Results ©2013 TT electronics plc 29
Slide 30: Banking Facilities
Banking Facilities • Re-financing of existing three year £60m club facility completed in August 2012 • New committed revolving credit facility of £70m agreed with 6 relationship banks – HSBC, RBS, Santander UK, Fifth Third Bank, Barclays Bank and Comerica going out 5 years to August 2017 • Terms gen
Slide 31: Pensions
Pensions 2012 2011 IAS 19 valuation £m £m Fair value of assets 387.5 378.0 Liabilities (424.3) (413.5) Deficit (36.8) (35.5) • UK defined benefit scheme closed to future accrual in 2010 • Deficit recovery plan in place: contributions of £3.7m in 2012, increasing by £0.2m each year to £4.5m in 2016 •
Slide 32: Discontinued Operations
Discontinued Operations 2012 2011 £m £m Revenue 68.8 94.1 Operating profit 3.1 5.5 Net finance costs (0.4) (0.5) Exceptional items (0.6) - Profit on disposal 6.8 0.5 Taxation (2.6) (2.0) Profit from discontinued operations 6.3 3.5 • Includes Secure Power division in 2012 and 2011 (disposed of in 201
Slide 33: Balance 2011
Balance 2011 Growth Markets Growth Markets Central & South America Defence and Other 1% aerospace Asia North America Other 12% 7% 14% transportation 20% 9% United Kingdom 16% Medical 7% 41% Passenger car 24% 49% Industrial Rest of Europe Revenue by geography Revenue by market December 2012: Full Yea