Vesuvius Plc · LSE:VSVS
Vesuvius — Investor Presentation (March 2021)
36 slides from Vesuvius's investor presentation, March 2021
Slide 1: Company overview
Company overview March 2021 LEADING THE WORLD OF MOLTEN METAL FLOW ENGINEERING
Slide 2: Disclaimer
Disclaimer This presentation (which includes this document, the oral presentation of this document, any question-and-answer session that follows that oral presentation and any other materials distributed at, or in connection with, such presentation), which has been prepared by Vesuvius plc (the “Com
Slide 3: Who we are
Who we are We are a global leader in molten metal flow engineering and technology, primarily serving the global steel and foundry #1 Technological in Steel Flow leader with 53 c.10,300 6 industries. Employees Control Production worldwide & Foundry main R&D sites We offer customised products, solutio
Slide 4: Steel division overview – Flow Control
Revenues(1) Steel division overview – Flow Control 40% 72% 70 Offering: ▪ Our customers are steel producers ▪ Flow Control: Products, systems and services to regulate and protect the flow of steel in the ▪ Structurally growing crude steel production continuous casting process and the above average m
Slide 5: Steel division overview – Flow Control
Revenues(1) Steel division overview – Flow Control 40% 72% 70 Vesuvius Steel Flow Control products are highly specialised products used in the continuous casting part of the steel process Ladle flux Well Nozzle Purge Plug Mechatronics: Vesuvius has Ladle Ladle Gate Ladle Shroud a unique value propos
Slide 6: Steel division overview – Advanced Refractories
Revenues(1) Steel division overview – Advanced Refractories 32% 70% Offering: ▪ We supply specialist refractory materials for ▪ Advanced Refractories: Installation expertise lining steel-making vessels which are and materials that withstand extreme subject to extreme temperatures, corrosion temperat
Slide 7: Steel division overview – Advanced Refractories
Revenues(1) Steel division overview – Advanced Refractories 32% 70% Vesuvius Advanced Refractories products Electric Arc Lining Furnace Lining Ladle Baffles Tundish Smart Robot Dams Working Lining Weirs Tundish Turbostops Safety Lining Mould Note: 1. Based on FY 2020 Revenues page 7
Slide 8: Foundry division overview
Revenues(1) Foundry division overview 28% Vesuvius uses the Foseco brand in the Foundry markets Offering: ▪ We provide a comprehensive range of ceramic and We are a solutions provider for our other consumables used in foundry processes customers, supplying a combination of products, technical advice
Slide 9: Foundry overview – key products
Revenues(1) Foundry overview – key products 28% FEEDING SYSTEMS CRUCIBLES Help avoid shrinkage defects and Containers that can withstand very high improve casting yields, reducing the temperatures, used to melt/store metals amount of non-productive metal FILTERS METAL TREATMENT Remove impurities fro
Slide 10: Foundry division overview
Revenues(1) Foundry division overview 28% Molten Metal Transfer and Metal Treatment Products Sand Binder and Coating Products Filter and Feeding Systems Note: 1. Based on FY 2020 Revenues page 10
Slide 11: A global manufacturing and R&D footprint to serve our customers worldwide
Vesuvius: A global manufacturing and R&D footprint to serve our customers worldwide NAFTA EU 15 Rest of EMEA 1,899 1,735 2,298 53 Production 11 11 8 sites 6 Main R&D Centres Revenue breakdown by geography Operations in Latin America China 41 10% 11% countries on Canada 6 4% India 7% continents USA R
Slide 12: Who our customers are
Who our customers are ▪ Long standing Steel Division Foundry Division partnerships with industry leaders ▪ Average length of relationships: 15+ years ▪ Solid and diversified customer base Customer Concentration Top-10 customers, 24% Other customers, 76% page 12
Slide 13: Who our competitors are
Who our competitors are Steel Division – Flow Control ▪ Vesuvius is the global leader in Flow Control and Foundry products ▪ In Advanced Refractories Steel Division – Advanced Refractories the market is more fragmented and we are one of the top 5 global producers (Puyang Refractories Group) Foundry
Slide 14: Strategy to deliver long-term sustainable and profitable growth
Strategy to deliver long-term sustainable and profitable growth Four execution priorities drive our In 2020, despite the challenges brought on by profitable growth strategy the Covid-19 crisis, we made meaningful progress on our strategy: 1. Reinforce our technology leadership ― We maintained our in
Slide 15: Focus on value-creating solutions: A few examples
Focus on value-creating solutions: A few examples Business unit The product Key product feature Value creation for customer ▪Improve safety ▪Reduce raw Flow Duraflex Multiple reuse materials and long-lasting Control ladle shrouds consumption refractory material ▪Reduce CO2 emissions Fully-integrated
Slide 16: Experienced senior management team
Experienced senior management team John McDonough CBE Patrick André Guy Young Chairman Chief Executive Chief Financial Officer - Appointed Director and Chairman of Vesuvius on - Appointed Chief Executive in September 2017 - Joined Vesuvius as CFO in November 2015 31 October 2012 - Joined Vesuvius in
Slide 17: Corporate values to deliver our strategy
Corporate values to deliver our strategy Courage I have the courage to decide and do what is right, including when it is difficult, unpopular or not consensual. I am personally accountable for the consequences of my actions. Ownership I demonstrate an entrepreneurial spirit and manage the Group’s mo
Slide 18: Structurally growing end markets
Structurally growing end markets
Slide 19: Structural growth opportunity in steel
Structural growth opportunity in steel World Crude Steel Production (Mt) CAGR 2.5 ‘21 – ‘30 +1.3% CAGR ‘21 – ‘30 2.0 +2.9% Other emerging markets1 +5.6% India 1.5 +0.5% China 1.0 0.5 +0.2% Developed markets2 - '50 '52 '54 '56 '58 '60 '62 '64 '66 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86'88 '90 '92 '94
Slide 20: “High technology steel” is growing faster than crude steel
“High technology steel” is growing faster than crude steel POSITIVE MIX EFFECT SUPPORTS OUTPERFORMANCE OF FLOW CONTROL GROWTH RELATIVE TO CRUDE STEEL PRODUCTION VESUVIUS’ CRUDE STEEL PRODUCTION SEGMENTATION “HIGH TECHNOLOGY STEEL” GROWTH (World crude steel production 2020: 1,829 mt) VS. STEEL PRODUC
Slide 21: “High technology steel” is growing faster than crude steel
“High technology steel” is growing faster than crude steel POSITIVE MIX EFFECT SUPPORTS OUTPERFORMANCE OF FLOW CONTROL GROWTH RELATIVE TO CRUDE STEEL PRODUCTION Examples of applications of HIGH TECHNOLOGY STEEL driving growth Wind turbines require Advanced steel cans are produced Increasing use of “
Slide 22: Foundry Casting production is structurally growing
Foundry Casting production is structurally growing GLOBAL CASTING MARKET IN US$M VESUVIUS FOUNDRY END MARKETS 2021 – 2029 120.000 Forecasts CAGR 2000–20: +2.0% CAGR 21–29: +2.3% Other emerging 100.000 markets1 Medium & +4.6% Other heavy vehicles 21% 13% 80.000 Developed markets2 +1.0% Power generati
Slide 23: Foundry Casting production is structurally growing
Foundry Casting production is structurally growing VESUVIUS OPERATES IN FOUNDRY SEGMENTS GROWING FASTER THAN THE UNDERLYING MARKET COMPLEX • CUSTOMERS REQUIRE MORE CASTINGS VALUE ADDED PRODUCTS AND SERVICES TO MINIMISE STRUCTURAL SHIFT ✓ Cleaner metal METAL LOSS AND DEFECTS IN THE FOUNDRY INDUSTRY •
Slide 24: Vesuvius operates in Foundry segments growing faster than the underlying market
Vesuvius operates in Foundry segments growing faster than the underlying market COMPLEX CASTINGS REQUIRE INNOVATIVE PRODUCTS FROM VESUVIUS’ FOUNDRY DIVISION Examples of applications in the foundry industry driving growth Increasing demand for complex Development of more sophisticated Increased use o
Slide 25: Vesuvius’ technological leadership enables outperformance of underlying markets
Vesuvius’ technological leadership enables outperformance of underlying markets • R&D reinforces our product pipeline with new innovative products and solutions which will support our future organic growth • We are focused on combining developments in robotics, automation and data analytics capabili
Slide 26: Vesuvius’ technological leadership enables outperformance of underlying markets
Vesuvius’ technological leadership enables outperformance of underlying markets Selected examples of Vesuvius’ advanced products and solutions LASERS MATERIAL SCIENCE ROBOTICS COMPUTATIONAL Scanned image of a basic oxygen New generation of Vesuvius Combined (robotics and FLUID DYNAMICS furnace creat
Slide 27: Group Sustainability Initiative
Group Sustainability Initiative
Slide 28: Sustainability at Vesuvius
Sustainability at Vesuvius Objective to reach NET ZERO carbon footprint by 2050 at the latest Progress follow-up: Intermediate Targets ▪ 9 intermediate targets Energy Energy CO2e 1 consumption 2 emissions 3 Wastewater ▪ 56 KPIs monitored Recovered & ▪ Establishment of the Vesuvius 4 Solid waste 5 re
Slide 29: Positive momentum on our intermediate ESG targets
Positive momentum on our intermediate ESG targets KPI Target Progress in 2020 SDG Supported Energy Consumption 10% reduction by 2025 -3.4% Energy consumption per metric tonne of product packed for shipment (vs 2019) CO2 Emission 10% reduction by 2025 -3.9% Energy CO2e emissions per metric tonne of p
Slide 30: We help our customers improve their sustainability performance
We help our customers improve their sustainability performance Our area of expertise The product Key product feature Value creation for customer ▪ Improve safety Multiple reuse Material Duraflex and long-lasting ▪ Reduce raw materials Science ladle shrouds consumption refractory material ▪ Reduce CO
Slide 31: Performance update
dns - | — 5 il a ol, VD) uel 2020 Performance update VESUVIUS ace a
Slide 32: 2020 operational highlights: ready for growth
2020 operational highlights: ready for growth Safety: our top priority ▪ Our best year ever with an LTIFR of 1.12 ▪ Goal remains to become a zero injury company Optimised plant network geared for growth after successful restructuring ▪ £20.6m of recurring savings in 2020 with a further £4.3m to be r
Slide 33: Group Financial Performance FY 2020
Group Financial Performance FY 2020 Revenue Headline earnings per share Divisional Performance £1,458.3m 23.2p 2019: £1,710.4m 2019: 45.1p Foundry 28% Flow Control Trading profit Group full-year dividend 40% £101.4m 17.4p 2019: £181.4m 2019: 6.2p Advanced Refractories Return on Sales Adjusted Operat
Slide 34: Regional Profiles FY2020
Regional Profiles FY2020 Americas EMEA Asia-Pacific £437.8m £578.5m £442.0m Revenue Revenue Revenue 46% Flow control 38% Flow control 40% Flow control 35% Advanced Refractories 33% Advanced Refractories 27% Advanced Refractories 19% Foundry 29% Foundry 33% Foundry 16 1 19 3 18 2 Production sites R&D
Slide 35: Vesuvius
VESUVILUS pte
Slide 36: For further information, please contact
For further information, please contact: Euan Drysdale Group Head of Corporate Finance euan.drysdale@vesuvius.com Pamela Antay Head of Investor Relations pamela.antay@vesuvius.com LEADING THE WORLD OF MOLTEN METAL FLOW ENGINEERING