Slide 1: 2024 Full Year Results
2024 Full Year Results Twelve months ended 31 December 2024 Nimesh Patel Group Chief Executive Officer Louisa Burdett Group Chief Financial Officer
Slide 2: Overview
Overview 2 Organic growth well ahead of IP and margin stability in a challenging trading environment • Group organic sales growth well ahead of global IP • All three Businesses delivered organic growth; margins in line with expectations • Focused on the controllables, delivering against operational
Slide 3: Global industrial production
Global industrial production 3 Consistent downward revisions to full year and H2 IP forecasts, particularly in key markets IP remained negative in key markets 2024 H1 H2 FY USA (0.3)% (0.4)% (0.3)% Germany (5.3)% (4.0)% (4.7)% France (0.1)% (0.9)% (0.5)% Italy (3.2)% (3.0)% (3.1)% UK (0.1)% (1.2)% (
Slide 4: Biopharm demand
Biopharm demand 4 Double digit growth in orders in 2024; but orders still lower than sales • Sales above new order intake since 2022 • Orderbook normalised by end 2024 • Orders beginning to recover; off low base • Orders and sales growth from end-users • Large OEM demand volatile but improving ~50%
Slide 5: Financial review
Financial review Louisa Burdett Group Chief Financial Officer
Slide 6: Financial summary
Financial summary 6 In line with our expectations 12 months to 31 December (£m) 2024 2023 Reported Organic* Revenue 1,665.2 1,682.6 (1)% 4% Adjusted operating profit 333.9 349.1 (4)% 4% Adjusted operating profit margin 20.1% 20.7% (60)bps 10bps Net finance expense (43.7) (39.9) Adjusted pre-tax prof
Slide 7: Sales bridge
Sales bridge 7 Growth well ahead of IP 1,682.6 1,608.3 1,665.2 2024 2023 Year-on-year organic growth £m £m 2024 H1 2024 H2 2024 FY 2023 FY STS 867.9 910.2 (1)% 3% 1% 8% ETS 404.6 378.5 5% 15% 10% 2% WMFTS 392.7 394.0 3% 3% 3% (19)% Group 1,665.2 1,682.6 1% 6% 4% (1)%
Slide 8: Profit bridge
Profit bridge 8 Margin modestly ahead organically; investing in future growth 333.9 Trading Profit (£m) Organic Change Trading Margin Organic Change 2024 2023 YoY 2024 H1 2024 H2 2024 2023 YoY STS 204.1 224.0 1% 23.5% 23.6% 23.5% 24.6% (10)bps ETS 64.7 59.2 13% 14.7% 17.2% 16.0% 15.6% 50bps WMFTS 99
Slide 9: Adjusted cash flow
Adjusted cash flow 9 Strong cash conversion from working capital management and lower capex 12 months to 31 December (£m) 2024 2023 • Cash conversion ahead of guidance Adjusted operating profit 333.9 349.1 Capital expenditure (net) (83.6) (102.8) • Lower capex due to deferral of two Working capital
Slide 10: Operational drivers and 2025 Business outlook
Operational drivers and 2025 Business outlook 10 Focusing on the controllables in a challenging trading environment • Growth outside China, ahead of IP • Strong growth in Industrial Process • Double-digit growth in Biopharm orders • China lower due to large projects Heating • Order book normalised •
Slide 11: Group outlook
Group outlook 11 Organic growth in sales, profit and margin Revenue Profit Restructuring • Organic revenue growth • Adjusted margin ahead of FX • One-off restructuring costs, consistent with 2024 adjusted 19.6% in 2024 ~£35m (cash) plus ~£5m (non-cash) • Growth well ahead of IP • Mid-single digit or
Slide 12: Medium term margin improvement plan
Medium term margin improvement plan 12 ~200bps organic growth drop-through ~150bps savings >23% ~(100)bps incremental investments 22% - 23% Sales drop-through ETS 20% Investment 19.6% Sales Sales returns (FX-adjusted) drop-through drop-through WM >30% Savings Investments Savings Investments Procurem
Slide 13: Executing our strategy
Executing our strategy Nimesh Patel Group Chief Executive Officer
Slide 14: Together for Growth
Together for Growth 14 Three engines of growth with a Capturing opportunity For long term, common business model through our strategy compounding growth Commercial Excellence Growth > 2x IP Operational Excellence 2,150 direct sales engineers Margins > 23% 60% sales to defensive sectors £17bn Organis
Slide 15: Operational priorities
Operational priorities 15 Focused actions to enhance our effectiveness, efficiency and support investment in growth Commercial Excellence Operational Excellence Organisational Fitness How we drive growth How we improve margins How we become more effective • Increase in customer-facing headcount • Be
Slide 16: Commercial and Operational Excellence
Commercial and Operational Excellence 16 Driving growth from our installed base and through increased manufacturing throughput STS: reshaping commercially in China • Focusing on our significant installed base to drive MRO Growth: • Base mapped to prioritise opportunities • Hired MRO-specialist sales
Slide 17: Investing in our future
Investing in our future 17 How we enhance long term compounding growth Digital and Services Customer relationship Our operations • More frequently connected with • Deeper insight from over over 1,000 customers 10,000 connected assets Our products Direct sales capability • Machine-learning-enabled pu
Slide 18: Summary and key takeaways
Summary and key takeaways 18 Outperforming IP in 2024 in continuing tough markets Focused on controllables and driving operational improvement Decisive action taken to simplify the organisation Focused execution against our operational priorities Targeted investments to support future organic growth
Slide 19: Appendix
Appendix
Slide 20: Appendix I
Appendix I 20 Impact on 2024 reported financial performance if current exchange rates prevailed through 2025 Margin 20.1% Margin 19.6% PACY: Projected Current Year Average
Slide 21: Appendix II: Exchange rate exposure and impacts
Appendix II 21 Exchange rate exposure and impacts Average exchange rates Average 2024 Average 2023 Change US dollar 1.28 1.24 (3)% Euro 1.18 1.15 (3)% Renminbi 9.18 8.80 (4)% Won 1,741 1,626 (7)% Real 6.93 6.22 (11)% Argentine peso 1,169 383 (206)%
Slide 22: Appendix III: Reconciliation of operating profit to adjusted operating profit
Appendix III 22 Reconciliation of Operating profit to Adjusted operating profit The Group uses adjusted figures as key performance measures in addition to those reported under IFRS. The Group’s management believes these measures provide valuable additional information for users of the financial stat
Slide 23: Appendix IV: Additional guidance
Appendix IV 23 Additional guidance (for modelling purposes) 2024 Actual 2025 Guidance Revenue: 5% adverse Revenue: 2% adverse Exchange rate impact Adjusted Operating Profit: 8% adverse Adjusted Operating Profit: 4% adverse Corporate costs £34m £40m Cash costs: ~£35m Middle column restructuring costs
Slide 24: Environmental and social progress
Environmental and social progress 24 Key strategic targets: On track to achieve net zero scopes 1 and 2 GHG emissions by 2030, having achieved 50% reduction (vs. 2019 baseline) ahead of 2025 interim target Targeting 20% reduction (vs. 2019 baseline) in Group energy usage from plant, equipment and bu