Bodycote Plc · LSE:BOY

Bodycote — Investor Day (April 2019)

10 slides from Bodycote's investor day presentation, Apr 30, 2019

  1. Slide 1: Bodycote: Growth and resilience

    Bodycote: Growth and resilience Dominique Yates

  2. Slide 2: Agenda

    Agenda  Bodycote – a decade of transformation  The changing shape of Bodycote  New and closed facilities – revenue bridge  AGI Classical Heat Treatment – potential margin progression  Summary 2

  3. Slide 3: Bodycote – a decade of transformation

    Bodycote – a decade of transformation Then - 2009 Now - 2019  No strategically targeted approach to the market  Clear Bodycote target market ̶ Continuous processes ̶ High value-added work ̶ Overflow work ̶ Batch processes ̶ Ideally, exclusivity or guaranteed share  No structured relationship with

  4. Slide 4: Bodycote – a decade of transformation

    Bodycote – a decade of transformation Then - 2009 Now - 2019  207 facilities  162 classical heat treatment facilities, plus 25 dedicated Specialist Technologies’ sites  Developed markets focus  Emerging markets strategy  No capex control (2008 capex spend : £79.5m)  Rigorous control over capex

  5. Slide 5: Number of facilities from 2009 to 2018

    Number of facilities from 2009 to 2018 210 210 190 190 170 170 150 150 130 130 110 110 90 90 70 70 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 Closed Facilities 70 facilities closed or sold since 2009 – more than a third of the original total 5

  6. Slide 6: Number of facilities from 2009 to 2018

    Number of facilities from 2009 to 2018 210 210 190 190 170 170 150 150 130 130 110 110 90 90 70 70 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 Closed Facilities Opened Facilities 50 facilities opened or acquired over the same time frame 6

  7. Slide 7: 2008 to 2018 facilities revenue bridge

    2008 to 2018 facilities revenue bridge £m 91 204 -190 72 729 552 Compound annual revenue growth c4% 7

  8. Slide 8: AGI Classical Heat Treatment potential margin progression

    Automotive & General Industrial (AGI) Classical Heat Treatment potential margin progression  2018 Aerospace CHT margin was 22%  No inherent structural reason why AGI CHT margins shouldn’t reach the same level  There is some required restructuring under way (costs are being absorbed in the P&L) 22

  9. Slide 9: Summary

    Summary Bodycote has come a long way Further benefits are still in the last decade, with a very to be realised from the clear strategy and a radically Group business model and transformed business investments already made In other words… more to come 9

  10. Slide 10: Capital Markets Day 2019

    CAPITAL MARKETS DAY 2019 a

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