Slide 1: 2023 Interim Results
2023 INTERIM RESULTS Adjusted profit before tax doubles year on year, outlook maintained Interim Results 2023
Slide 2: Agenda
AGENDA Introduction David Squires CEO 2023 Interim Results Bindi Foyle FD Markets, Strategy & Outlook David Squires CEO Cautionary Statement This document has been prepared solely to provide additional information to enable shareholders to assess the Group’s strategy and business objectives and the
Slide 3: H1 2023 Highlights
H1 2023 HIGHLIGHTS Strong trading performance compared to prior year Adjusted profit before tax doubled year-on-year Robust core market demand with a healthy book-to-bill of 1.20 (1) Healthy balance sheet with net debt / EBITDA of 1.6x Spencer acquisition integration progressing well, with sales up
Slide 4: 2023 Interim Results
2023 INTERIM RESULTS Interim Results 2023
Slide 5: Financial Headlines
FINANCIAL HEADLINES H1 2023 H1 2022 Change Constant currency Book to bill ratio 1.20 1.34 Revenue £482.3m £402.2m +20% +16% Adjusted Operating Profit £22.9m £12.6m +82% +71% Adjusted Operating Margin 4.7% 3.1% +160bps +150bps Adjusted Profit before Tax £17.6m £8.8m +100% +87% Adjusted Earnings per S
Slide 6: H1 2023 at a Glance
H1 2023 AT A GLANCE 500 Revenue Bridge 45.0 482.3 £m 450 $1.23 (H1 22: $1.29) 21.6 13.5 402.2 400 350 300 H1 2022 Exchange Price Volume H1 2023 Adjusted Operating Profit (1) Bridge £m 40 21.6 (18.7) 35 30 6.9 0.5 (0.8) 22.9 25 20 15 12.6 0.8 10 5 H1 2022 Exchange Price Cost Inflation Volume Share of
Slide 7: H1 2023 Revenue Bridge
H1 2023 REVENUE BRIDGE £m 500 36.2 (0.2) 482.3 30.6 450 $1.23 (H1 22: $1.29) 13.5 402.2 400 350 300 H1 2022 Exchange Aerospace Flexonics Eliminations H1 2023 Revenue Reconciliation £m Revenue Reconciliation £m Aerospace (1) Flexonics (1) H1 2022 revenue 273.5 H1 2022 revenue 142.4 Civil aerospace 35
Slide 8: H1 2023 Adjusted Operating Profit Bridge
H1 2023 ADJUSTED OPERATING PROFIT(2) BRIDGE £m (0.8) 24 8.3 0.5 22.9 22 20 18 16 $1.23 (H1 22: $1.29) 1.5 14 0.8 12.6 12 10 H1 2022 Exchange Aerospace Flexonics Share of JV Central Costs H1 2023 Aerospace (1) H1 2023 H1 2022 Change Flexonics (1) H1 2023 H1 2022 Change £m £m £m £m Revenue 304.1 273.5
Slide 9: Adjusted and Reported Profit
ADJUSTED AND REPORTED PROFIT H1 23 H1 22 £m £m Adjusted operating profit 22.9 12.6 Net finance costs – borrowings, cash (4.8) (3.2) – lease liabilities (IFRS 16) (1.5) (1.2) – retirement benefits 1.0 0.6 Adjusted profit before tax 17.6 8.8 Tax (3.0) (0.8) Adjusted profit for the period 14.6 8.0 Amor
Slide 10: Cash Flow Generation
CASH FLOW GENERATION £m Change in Net Debt: £m 60 Net cash Outflow (18.1) Inventory £(14.1)m 1.1 (38.5) Receivables £(25.6)m Exchange variations 8.9 50 25.0 Payables & other £1.2m Lease liabilities – additions, (2.4) modifications and disposals 40 Net debt – opening (178.9) 30 Net debt – closing (19
Slide 11: Balance Sheet Strength
BALANCE SHEET STRENGTH Credit facilities and headroom Profile of committed credit facilities £350m £300m Fixed rate £300m £250m Floating rate £250m £200m Net debt (excluding leases) Headroom Headroom June 2023 - £119.4m £200m £179.4m £154.9m £150m £150m £100m £100m Net Debt £50m £50m Net Debt (1) £1
Slide 12: On Track to Deliver Medium Term Minimum ROCE Target
ON TRACK TO DELIVER MEDIUM TERM MINIMUM ROCE TARGET Medium term min ROCE target Confident in delivering ≥ 13.5% good returns on capital and enhanced shareholder value Portfolio optimisation strategy to 11.1% maximise value creation Ongoing end-market Strategic focus on IP-rich fluid recovery across
Slide 13: Markets
MARKETS Interim Results 2023
Slide 14: Attractive End Market Exposure
ATTRACTIVE END MARKET EXPOSURE 37% Flexonics Division Aerospace Division 63% (34%) (66%) Power & Energy Civil Aerospace 15% (15%) 42% 78% 22% Land Vehicles (40%) 22% Single aisle, regional and business jets Wide body (19%) Defence 8% 13% (11%) (15%) Other Aerospace* End markets composition based on
Slide 15: Land Vehicle Markets Growing
LAND VEHICLE MARKETS GROWING (22% of Group) Global growth in GDP and tighter Global commercial vehicle market is Senior is supporting the transition to a low emissions regulations increase expecting to grow at low single digit carbon economy; providing thermal management demand for Senior’s land veh
Slide 16: Power & Energy Markets Improving
POWER & ENERGY MARKETS IMPROVING (15% of Group) Higher activity levels in Global demand for oil to grow Electricity generation from Nuclear based generation important upstream oil & gas and 2% in 2023 then 1% p.a. till renewable sources will role to play in achieving net zero renewables 2028 make up
Slide 17: Diversified Aerospace & Defence Platforms
DIVERSIFIED AEROSPACE & DEFENCE PLATFORMS A320 17% (17%) Other 39% (41%) 737 MAX 10% (9%) A220 6% (5%) A350 4% G5000/6000 2% (4%) (2%) 777 2% F-35 4% (6%) (2%) 767 2% C-130 3% (2%) (5%) G7500 2% A330 3% (1%) E2 3% (2%) 787 3% (2%) (2%) Based on H1 2023 Aerospace revenue. % in brackets are H1 2022 co
Slide 18: Civil Aerospace Market Growth
CIVIL AEROSPACE MARKET GROWTH (42% of Group) Large commercial aircraft Strong structural growth in air Single aisle OEM order Resurgent long-haul travel deliveries increased by travel; driven by growing books at record levels supporting widebody growth 15% in H1 2023, now 18% demand in Asia; support
Slide 19: Defence Markets Growing
DEFENCE MARKETS GROWING (13% of Group) Senior’s sales to the Defence Mature programmes such as the C- Senior is well placed with good sector are primarily focused on 130 transport aircraft continue in content on key growth programmes the US defence market series production such as F-35 and T-7A Red
Slide 20: Other Markets
OTHER MARKETS (8% of Group) Senior’s aerospace businesses supply to other markets e.g., space, semi-conductor equipment and medical Low earth orbit satellite market Our diversification into other attractive end-markets Growth of active satellites (1957 - 2022) Market revenue CAGR (2023 – 2028) Spa
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK Interim Results 2023
Slide 22: Our Renewed Purpose
OUR RENEWED PURPOSE We help engineer the transition to a sustainable world for the benefit of all our stakeholders. We do this by: Technology Customer Climate expertise transition action Using our technology expertise in fluid Enabling our customers, who operate in Staying at the forefront of climat
Slide 23: Great Progress Made on Sustainability
GREAT PROGRESS MADE ON SUSTAINABILITY E S G In February 2023, CDP awarded Senior the Lost Time Injury Rate reduced to 0.28 for HY In June 2023, employees received refresher highest ‘A’ leadership status in its annual 2023, an improvement from 0.38 at FY 2022. training on Senior’s Code of Condu
Slide 24: Highly Engineered Products in Attractive End-Markets
HIGHLY ENGINEERED PRODUCTS IN ATTRACTIVE END-MARKETS Fluid conveyance and thermal management technology embedded in our IP-rich products Semiconductor Medical Power & Energy Land vehicles Defence Aerospace Equipment Fuel cell energy Composite ducting Solar Additive manufacturing Petrochemical Hybrid
Slide 25: Future Proofing Business as We Transition to Low Carbon World
FUTURE PROOFING BUSINESS AS WE TRANSITION TO LOW CARBON WORLD 2010s 2020s 2030s 2040s Launch of more efficient Application of more advanced More widespread use of EIS and production of Aerospace aero engines production methods SAFs in commercial aircraft* hydrogen-powered aircraft New additive Our e
Slide 26: Active Portfolio Optimisation
ACTIVE PORTFOLIO OPTIMISATION Actively review overall portfolio of operating businesses and evaluate their strategic fit within the Group As indicated previously, we continue to consider the best time to relaunch the Aerostructures potential divestment process to ensure we optimise value for shareho
Slide 27: Group Outlook
GROUP OUTLOOK • Strong trajectory with good growth across both divisions. • Overall, the Board’s expectations of strong growth for the Group in 2023 are unchanged. • We expect to see year on year growth in the Flexonics division in H2, though we are mindful of the commentary around some potential so
Slide 28: Any Questions?
ANY QUESTIONS? Interim Results 2023
Slide 29: Appendices
APPENDICES Interim Results 2023
Slide 30: Investment Case: Positioned for Growth
INVESTMENT CASE: POSITIONED FOR GROWTH Our purpose: We help engineer the transition to a sustainable world for the benefit of all of our stakeholders Clear strategy to maximise shareholder value Focus on IP-rich Aerospace fluid conveyance & Leading thermal Focused Long-term Flexonics Differentiated
Slide 31: Focus on IP-Rich Technology and Manufacturing
FOCUS ON IP-RICH TECHNOLOGY AND MANUFACTURING 69% Fluid Conveyance and Fluid Conveyance and Thermal Management Thermal Management Product and System Design & Manufacturing IP UK North America Asia & Africa Europe Cape Town India GmbH H1 2023 revenue Mexico Structures Complex Machining and Manufactur
Slide 32: Fluid Conveyance & Thermal Management Capability Highlights
FLUID CONVEYANCE & THERMAL MANAGEMENT CAPABILITY HIGHLIGHTS 1 2 3 4 5 World class fluid Industry leading Component & system Thin-wall metal Additive conveyance & edge-welded and level simulation & manufacturing manufacturing thermal management formed bellows analysis expertise expertise system desig
Slide 33: Our Business Model
OUR BUSINESS MODEL Our vision is to be a trusted and collaborative high value-added engineering and manufacturing company delivering sustainable growth in operating profit, cash flow and shareholder value Our purpose: We help engineer the transition to a sustainable world for the benefit of all our
Slide 34: Strategic Progress: IP, Technology & Manufacturing
STRATEGIC PROGRESS: IP, TECHNOLOGY & MANUFACTURING IP Technology Manufacturing Maintained focus on IP-rich technology and Developing novel solutions for low and Capabilities supported by a strong body of manufacturing zero carbon applications design and manufacturing process • Senior designs, develo
Slide 35: Strategic Priorities
STRATEGIC PRIORITIES Considered and Autonomous and High Performance Competitive Cost Focus on Growth Effective Capital Talent Development Collaborative Operating System Sustainability Country Strategy Deployment Business Model Outgrow our end The executive team Skilled workforce and Empowerment Enha
Slide 36: Product Development Strategy Compatible with Our Focus on ESG
PRODUCT DEVELOPMENT STRATEGY COMPATIBLE WITH OUR FOCUS ON ESG End-market evolution to achieve net zero Aerospace - Airbus envisions using multiple pathways including use of hydrogen and sustainable aviation fuels to reduce emissions Land vehicles - More efficient diesel engines and accelerating hydr
Slide 37: Acquisition Framework
ACQUISITION FRAMEWORK More Likely Less Likely Aerospace & Defence Semi-conductor Equipment Market Power & Energy (clean energy) Volume Automotive Land Vehicles (electrification) Medical Fluid Conveyance Products Structures / Machining Product Thermal Management Products Own design / IP products Comm
Slide 38: Our Locations
OUR LOCATIONS UK Rickmansworth H.O HY 2023 split Sales Employees Massachusetts Metal Bellows Crumlin N. America 57% 2,789 Lymington Canada BWT UK 18% 1,395 SF Canada Bird Bellows Rest of Europe 14% 937 Thermal Wisconsin Weston EU Rest of World 11% 1,498 GA Germany Washington SF GmbH AMT & Damar Czec
Slide 39: Our Customers
OUR CUSTOMERS 37% Flexonics Division Aerospace Division 63% Boeing 8% (34%) Other Industrial 12% (7%) (66%) (13%) Spirit 7% SLB 3% (7%) (2%) Rolls Royce 6% Other LV 9% (7%) (7%) Airbus 5% (5%) Daimler 3% (2%) RTX 3% Caterpillar (3%) 4% (4%) Safran 3% (3%) Bombardier 2% Cummins 6% (2%) (6%) MTU 2% (2
Slide 40: Our Products
OUR PRODUCTS 37% Flexonics Division Other machined parts 5% Aerospace Division 63% (34%) (4%) (66%) Industrial flexible parts 10% Airframe structural parts (11%) 15% Fuel distribution (LV) 1% (14%) (1%) Off-highway hydraulics (LV) 3% (2%) Exhaust flexes (LV) 4% (4%) High Pressure Ducting 14% (15%) E
Slide 41: Group Evolution
GROUP EVOLUTION Revenue (£m) Adjusted Operating Profit (£m) Adjusted Operating Margin (%) 100 12 1200 90 80 10 1000 70 Total 8 800 60 after Total after central costs 50 central costs 6 600 40 400 30 4 20 200 2 10 0 0 0 2019 2020 2021 2022 HY 2023 2019 2020 2021 2022 HY 2023 2019 2020 2021 2022 HY 20
Slide 42: Balance Sheet
BALANCE SHEET £m June 2023 Dec 2022 June 2022 FX Impact from Dec 2022 Goodwill and other intangible assets 226.8 235.9 161.4 £m Investment in JV 4.6 4.4 4.2 Non current assets 23.3 Property, plant and equipment 283.1 307.2 304.1 Working capital (7.4) Other long-term assets 12.8 11.3 8.8 Net debt 8.9
Slide 43: Maturity Profile of Committed Credit Facilities
MATURITY PROFILE OF COMMITTED CREDIT FACILITIES £m 340 320 300 280 Jun - £37.4m 260 (floating Net debt (excluding leases) maturity) 240 Jun 2023 - £119.4m 220 Jan - £27.0m + 200 Oct £47.2m (fixed maturity) £155m 180 headroom 160 140 120 Nov - 100 £115m (floating 80 maturity) 60 Feb - £24.1m 40 (fixe
Slide 44: Usage of Credit Facilities – June 2023
USAGE OF CREDIT FACILITIES – JUNE 2023 Usage by Currency Interest Facility Usage £ $ € Other % £m £m US Private placements: $30.0m (Sep 2028) 4.18% 23.6 23.6 - 23.6 - - €28.0m (Feb 2027) 1.51% 24.1 24.1 - - 24.1 - $60.0m (Oct 2025) 3.75% 47.2 47.2 - 47.2 - - £27.0m (Jan 2025) 2.35% 27.0 27.0 27.0 -
Slide 45: Aerospace Division
AEROSPACE DIVISION Interim Results 2023
Slide 46: Aerospace Division: A Summary
AEROSPACE DIVISION: A SUMMARY H1 2023 H1 2022(1) Change 14 Operations Revenue £304.1m £273.5m +11.2% NAFTA 6 France 2 Adjusted Operating Profit(2) £11.6m £10.1m +14.9% UK 4 Adjusted Operating Margin(2) 3.8% 3.7% +10bps ROW 2 Markets Customers Boeing 13% Other 13% Other 33% Spirit 11% Defence 21% IR
Slide 47: Flexonics Division
FLEXONICS DIVISION Interim Results 2023
Slide 48: Flexonics Division: A Summary
FLEXONICS DIVISION: A SUMMARY H1 2023 H1 2022(1) Change 11 Operations & JV NAFTA 4 Revenue £178.6m £142.4m +25.4% EU 2 Adjusted Operating Profit £20.2m £11.9m +69.7% UK 2 ROW 3 Adjusted Operating Margin 11.3% 8.4% +290bps China JV 1 Other Markets Markets Customers 16% Cummins 16% Other 27% Caterpill