Smiths Group Plc · LSE:SMIN
Smiths — Paris Airshow 2005
21 slides from Smiths's conference presentation, June 2005
Slide 1: Meetings with investors at the Paris Airshow
Smiths Aerospace Meetings with investors at the Paris Airshow June 2005 Smiths Group
Slide 2: Why is Aerospace attractive?
Smiths Aerospace US defence procurement expected to level off Commercial aerospace growing strongly Airline sector is not profitable Why is Aerospace attractive? Approx. proportion of Smiths’ total sales • Defence continues to be a high priority • Strong underlying demand for air travel • Lead
Slide 3: Capabilities on military transports
Capabilities on military transports (Applications: C-130AMP, C-130J, C-17, C-27, P-8A MMA, B767 Tanker…) Cargo Door Drive/Actuator Flight Control Actuators Engine Components (Tailpipe/Shrouds) Primary flight controls Aerial Refuelling Pods Aerial Refuelling System and Components Gust lock Engine Com
Slide 4: Tier One supplier on military platforms
Smiths Aerospace is a Tier One supplier on military platforms Capabilities on fighters: (Applications: F-35, F-22, F-18 E/F, F-16, Eurofighter, Hawk) Battery charging system Variable speed constant Power supplies Frequency power generation Prognostics and health Regulated/transformer rectifier unit
Slide 5: Capabilities on UAVs
Capabilities on UAVs (Applications: X-47, X-45…) Fuel and Hydraulic Tubes/Hoses Variable Speed Constant Frequency Generator Cable Harnesses And Connectors Power Distribution System Regulated/Transformer Rectifier Unit Composite Structures Utilities Computer Remote Input/Output Flight Control Actuati
Slide 6: Strong position with Boeing and Airbus
Smiths Aerospace has a strong position with Boeing and Airbus Capabilities on large commercial aircraft (Applications: Boeing: 737, 777, 787 Airbus: 320, 300/340, 380) Fuel systems High-lift systems Fuel and hydraulic tubes/hoses Airframe components Primary flight control actuators Remote input/outp
Slide 7: Boeing 787 Dreamliner
Boeing 787 Dreamliner Major Systems won by Smiths Programme Status Common Core Firm Orders = 64 High Lift Options = 24 Landing Gear Entry into Service = 2008 Trend to systems integration, but each customer is different Smiths Group PARIS 2005 7
Slide 8: Airbus A380
Airbus A380 Major Systems won by Programme Status Smiths Firm Orders = 139 High Lift Options = 70 Landing Gear Entry into Service = 2006 Smiths Group PARIS 2005 8
Slide 9: What are we?
What are we? Aerospace Systems Engine Components Delivering Integrated Solutions Growth fueled by Competitiveness Northrop Grumman selects Smiths for J- Smiths expands Aircraft Engine UCAS Landing Gear System 8th Facility in China 1st November 2004 February 2005 Smiths Group PARIS 2005 9
Slide 10: Aerospace Business Dimensions
Smiths Aerospace Business Dimensions FY04 Sales: Electronic systems £1,006m Mechanical systems Engine components Military / Civil split Sales Split 60% / 40% R&D/Sales Recent Additions Company Funded • DGT acquired for £57m in (expense to profit) 8% mid ’04 • Integrated Aerospace acquired Custom
Slide 11: Where are we?
Where are we? RoW Electronic Systems Customer Services China Poland Australia Mechanical Systems Engine Components Singapore Total employees: circa 11,000 Smiths Group PARIS 2005 11
Slide 12: Aerospace on Major Platforms
Smiths Aerospace on Major Platforms: Typical programme revenues Boeing 777: $800m electrical power, utilities, hydraulics, engine components Boeing 787: $2.6b Eurofighter: $600m common core system, landing avionics, utilities, hydraulics, gear and high lift actuation Airbus A380: $1bn engine compone
Slide 13: Competitors
Competitors Electronic Systems Mechanical Systems Rockwell Collins Honeywell Moog Cobham Hamilton Sundstrand Parker Goodrich Thales Goodrich Liebherr Engine Components Customer Services GKN Carlton Barnes Group Third Party Repair Centres Primes in-house capabilities Magellan Operators in-house capab
Slide 14: Aeroengine Component supplier
Aeroengine Component supplier Civil Military GE/CFM Pratt & Whitney Rolls Royce/Eurojet Flash Welded Rings Machined Combustors Machined Shafts Fabricated Mixers Engine side wall Smiths Group PARIS 2005 14
Slide 15: Business Dimensions: Aftermarket
Business Dimensions: Aftermarket Total Service Based Integrated Support Performance PBL / Based Logistics Support 2005 Sales Aftermarket Original Equipment Usage based Rate per hour Cost Based Fixed Price Cost driven Time & Material Reactive Smiths Group PARIS 2005 15
Slide 16: How are we performing?
How are we performing? Smiths Aerospace performance in H1 2005 £m H1 2005 at constant currency Sales 514 +17% Operating Profit 39 +24% Contribution to Smiths Margin 8% Group operating profit US 101 Eurofighter Boeing 787 Delivered first system for Airbus A380, F-35 JSF, C-130 AMP Development wor
Slide 17: Aerospace: Sales Trends
Smiths Aerospace: Sales Trends Civil OE Military OE Aftermarket 2005 (expected) 2005 sales Commercial OE 2004 Military OE Aftermarket 2003 10% 20% 10% 10% (underlying growth, excluding acquisitions at constant currency) Smiths Group PARIS 2005 17
Slide 18: Global military market
Smiths Aerospace: Continuing strong performance in the defence sector Global military market Actuals Forecast 30 25 Aircraft production value $bn 20 15 10 5 (Smiths projections) 0 2001 2002 2004 2005 2007 2010 2003 2006 2008 2009 2011 2012 Military helicopters Other fixed-Wing Light fighter/attack/t
Slide 19: Global commercial market
Smiths Aerospace: Significant growth in the commercial aircraft sector Global commercial market 100 Actuals Forecast Aircraft production value $bn 80 60 40 20 (Smiths projections) 0 2007 2006 2008 2004 2005 2009 2003 2002 2012 2010 2011 2001 Civil helicopters Exec/Utility turboprops Business jets Re
Slide 20: So why is Smiths so confident?
Growing as anticipated US defence spending flattening The civil aerospace industry is recovering Airline customers are still making huge losses So why is Smiths so confident? We have strong platform positions - gaining market share Supported by increased R&D Engine Components business deliveri
Slide 21: Smiths Aerospace
Smiths Aerospace Smiths Group