Schroders Plc · LSE:SDR
Schroders — H1 2020 Earnings Presentation
24 slides from Schroders's earnings presentation, Aug 1, 2020
Slide 1: Renishaw plc – 2020 interim results
Renishaw plc – 2020 interim results 30 January 2020
Slide 2: Summary
Summary • First half revenue of £259.4m (2019: £296.7m); a decrease at constant exchange rates of 14%. • Reductions in all regions, with APAC seeing a 20% decrease at constant exchange rates. • Metrology revenue decreased by 13% to £241.5m • Subdued market demand for Industrial Metrology products. •
Slide 3: Summary (continued)
Summary (continued) • Adjusted profit before tax of £14.3m (2019: £59.6m), a decrease of 76% • Adjusted operating profit for Metrology of £17.4m (2019: £52.2m); adjusted operating loss of £1.5m for Healthcare, compared to break even for the same period last year. • Statutory profit decreased 84% to
Slide 4: Summary (continued)
Summary (continued) • Capital expenditure of £28.4m, of which property expenditure for future growth totalled £20.8m. • Strong balance sheet, with end of period cash of £71.3m. • Interim dividend maintained at 14.0p per share. • All Board directors have waived their rights to the interim dividend wh
Slide 5: Financial summary
Financial summary 2020 2019 Change Revenue £m £m £m % 350 296.7 300 279.5 Revenue 259.4 296.7 -13% 238.1 259.4 250 198.5 200 Adjusted profit before tax 14.3 59.6 -76% 150 100 50 Statutory profit before tax 9.9 61.6 -84% 0 2016 2017 2018 2019 2020 Tax (2.5) (9.6) Profit after tax 7.4 52.0 -86% Adjust
Slide 6: Adjusted profit before tax bridge
Adjusted profit before tax bridge
Slide 7: Income statement
Income statement 2020 2019 £m % £m % Change Cost of sales £m 120 80 Revenue 259.4 100 296.7 100 13% 100.8 98.4 95.4 100 84.8 60 71.5 % of revenue Cost of sales (98.4) (38) (100.8) (34) 2% 80 60 40 Engineering (inc. R&D) (46.1) (18) (47.8) (16) 4% 40 20 Gross profit 114.9 44 148.1 50 22% 20 0 0 Distr
Slide 8: Income statement (continued)
Income statement (continued) Engineering costs £m Administrative costs £m 60 50 35 31.9 30 46.1 29.0 50 47.8 40 30 25 39.1 24.6 24.1 36.4 25 % of revenue % of revenue 40 20.5 20 33.3 30 20 30 15 20 15 20 10 10 10 10 5 5 0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Administrative costs £
Slide 9: Balance sheet
Balance sheet £m Dec 2019 Dec 2018 June 2019 Property, plant & equipment 272.2 240.0 263.4 Total equity Dec, £m Intangible assets & investments 72.1 71.3 73.0 Right of use assets 13.0 - - 700 589.9 Deferred tax assets 21.2 29.0 29.8 600 558.8 490.7 Derivatives 13.2 2.0 1.3 500 403.3 Total non-curren
Slide 10: Cash flow
Cash flow *Including continuing and discontinued operations
Slide 11: Capital expenditure
Capital expenditure 2020 2019 Capital expenditure £m £m £m 40 Capital expenditure 28.4 19.6 35 Property 30 17.8 - in the UK, ongoing construction of a 94,000 sq ft extension to our Renishaw Innovation Centre which is 25 7.6 nearing completion 20 - in India, acquisition of a property in Pune to provi
Slide 12: Industrial metrology - market drivers
Industrial metrology - market drivers Weaker current investment levels, including machine tool sector Same market drivers exist Increasing component complexity and closer tolerances – new performance monitoring equipment Measurement at point of manufacture – shop floor measurement Increased need for
Slide 13: Industrial metrology: performance monitoring
Industrial metrology Performance monitoring To produce complex parts with tight tolerances requires consistently capable machines. The new XK10 alignment laser system is used during the build and alignment of machine tools, replacing the need for expensive artefacts. It can also be used to diagnose
Slide 14: Industrial metrology: shopfloor measurement
Industrial metrology Shopfloor measurement Cutting tools and components remain in situ on the machine tool and automatically checked using an inspection probe (e.g. RMP400 RMP400) or contact/laser-based tool setting probe (e.g. new APCS-45 or new NC4+ Blue). Featuring industry-first, blue laser tech
Slide 15: Industrial metrology: automation
Industrial metrology RFP1 fringe probe Automation There is increasing use of automated changing between different sensor types for the REVO® measuring head for co- ordinate measuring machines (contact, optical, surface finish and new RFP1 fringe probe). The new probe is suited to the measurement of
Slide 16: Position measurement – market drivers
Position measurement – market drivers Some positive indications of recovery in the semiconductor market. Market drivers are size, accuracy, speed, ease of use. Opportunities due to increased utilisation of our encoders and new application areas. Positive trends include new flat panel display technol
Slide 17: Position measurement
Position measurement ATOM DX™ encoder series • Our smallest incremental encoder, with digital output direct from the readhead, eliminating the need for bulky interfaces. • A high-performance encoder that features resolutions down to 2.5 nm, low Sub-Divisional Error (SDE) and low jitter. • Can be use
Slide 18: Position measurement: functional safety
Position measurement Functional safety Certain machinery safety functions that ensure that operators are protected in the event of hardware failure or human error, require the encoder feedback to be functionally safe (FS). For safety critical applications, including medical robots and collaborative
Slide 19: Additive manufacturing – market drivers
Additive manufacturing – market drivers Our systems are based on laser powder bed fusion technology for high-value metal part production. Market drivers include machine productivity, lower cost-per-part, process stability and part quality. Opportunities in multiple markets, with greater maturity in
Slide 20: Additive manufacturing: recent collaboration
Additive manufacturing Recent collaboration • In December we signed a Memorandum of Understanding with BAE Systems (UK) to work together on the development of additive manufacturing capability for the aerospace and defence sector, designed to help improve performance, reduce costs and speed up manuf
Slide 21: Healthcare - Raman spectroscopy
Healthcare - Raman spectroscopy Market applications We are focussing on new application areas to address existing and new markets for our Raman systems. Our current areas of interest include healthcare (cancer and infectious disease diagnosis) and environmental (microplastics and green energy). The
Slide 22: Brexit
Brexit • The Board continues to oversee the work of the Brexit steering group in identifying the key risks arising from a no-deal Brexit and implementing mitigation plans. New warehouse in Ireland Mitigation plan • New warehouse established in Ireland to direct ship to 3rd parties within the EU. • G
Slide 23: Outlook - summary
Outlook - summary • Trading conditions expected to remain challenging through the remainder of this financial year. • We remain confident in the long-term prospects for the Group due to the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and
Slide 24: 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