Renishaw Plc · LSE:RSW
Renishaw — Q2 2023 Earnings Presentation
16 slides from Renishaw's earnings presentation, Feb 2, 2023
Slide 1: Transforming Tomorrow Together – 2023 interim results
Transforming Tomorrow Together 2023 interim results 2 February 2023
Slide 2: Financial summary – FY2023 H1
Financial summary – FY2023 H1 Half-year revenue £m 400 350 Revenue growth of 7% to £347.7m 300 69.1 79.2 83.6 67.0 65.4 • Record revenue for a half year, 1% growth at constant exchange rates 250 67.2 63.6 54.7 51.7 95.5 110.3 102.4 200 • Strong growth in multi-laser AM machines, 5-axis CMM inspectio
Slide 3: Manufacturing technologies and analytical instruments overview
Manufacturing Analytical instruments End market technologies and medical devices overview1 Industrial Metrology Position Measurement Additive Manufacturing Spectroscopy Neurological 100% Other, 5% Agriculture & construction, 2% 90% Healthcare, 4% Research, 6% 80% Energy & mining, 5% Aerospace, 12% 7
Slide 4: H1 revenue growth drivers
H1 revenue growth drivers Growth driven by strategy execution ▲ Price rises introduced last year starting to come through – expecting 2% run rate impact by end of FY23 ▲ Strong USD was a net benefit in H1, weakening more recently Virsa™ modular Raman ▲ Continuing to gain market share with key custom
Slide 5: Market review: semiconductor manufacturing
Market review: semiconductor manufacturing Market situation: • Record global semicon fabrication plant (fab) construction activity in 2022 and 2023 driven by new technology, government incentives and supply chain security1 • Continuing strong demand for our highest accuracy laser encoders for front-
Slide 6: Market review: additive manufacturing
Market review: additive manufacturing Market situation: • Metal AM equipment revenue expected to grow rapidly over the next decade • Demand for productive, multi-laser machines is growing faster than the general market How we are enhancing our market position: • We remain focused on minimising cost
Slide 7: Market review: machine tools
Market review: machine tools SpinCo™ machine spindle sensor (left) and FORTiS™ Market situation: enclosed encoder for machine linear axes (right) • Sustained demand for 5-axis machine tools • Weaker recent demand for standard machines from ‘job shops’1 How we are enhancing our market position: • Our
Slide 8: Market review: shop-floor metrology systems
Market review: shop-floor metrology systems Market situation: • Shop-floor measurement is the fastest growing metrology market segment • Growing demand for multi-sensor metrology for comprehensive inspection and process feedback How we are improving our market position: • Focused on high value solut
Slide 9: De-globalisation presents new opportunities
De-globalisation presents new opportunities Manufacturing moving to new locations is not a ‘zero sum’ game • Growing trend by US and European firms to reduce dependence on Chinese supply chain due to geopolitics and impact of recent supply chain disruption • Increasing investment in other Asian coun
Slide 10: Financial highlights
Financial highlights Revenue £m 2023 H1 2022 H1 Change 800 % 671.1 £m £m 700 611.5 574.0 565.6 600 510.2 Revenue 347.7 325.2 7% 500 345.9 332.0 277.3 400 310.5 250.8 Adjusted profit before tax 73.5 84.2 -13% 300 Adjusted profit before tax % of revenue 21% 26% 200 325.2 347.7 279.5 296.7 259.4 255.1
Slide 11: Income statement
Income statement Adjusted profit before tax bridge £m 2023 2022 H1 H1 % % Change £m £m Revenue 347.7 100 325.2 100 7% Cost of sales (126.4) (36) (115.5) (36) 9% Engineering (inc. R&D) (46.1) (13) (37.8) (12) 22% Gross profit 175.2 51 171.9 53 2% Distribution costs (66.8) (19) (55.8) (17) 20% Adminis
Slide 12: Sources and uses of cash & deposits (H1)
Sources and uses of cash & deposits (H1) £m UPDATE Slide 12 CONFIDENTIAL
Slide 13: Investment in the future
Investment in the future Capital expenditure £m 60 56.8 55 People Capital Expenditure 50 45 25.4 38.7 • We are investing to attract, develop and retain • Forecast £65m capex in FY23, 40 34.9 35 30.8 skilled employees, benchmarking our pay and including new production 30 10.0 increasing salaries by c
Slide 14: Outlook
Outlook • Our results so far this year have benefited from products H2 range released in recent years and the relationships we have 2023 H2 2023 H1 Change been building with new customers. These relationships, £m £m % new products and the expected improvement in Lower 342 (2%) Revenue 348 semiconduc
Slide 15: Our investment case
Our investment case • A market leader with significant growth opportunities from global trends • Innovation is core to our business with a substantial IP portfolio that supports growth and builds barriers for competitors • A long-term approach to business: • patient investment building strong market
Slide 16: Disclaimer
Disclaimer This document contains statements about Renishaw plc that are or may be forward-looking statements. These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Renishaw plc. They involve known and unknown risks, uncertainties a