Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — Pressure Technologies — Shareholder Meeting (February 2016)
19 slides from Chesterfield Special Cylinders's shareholder meeting presentation, Feb 17, 2016
Slide 1: AGM Presentation
AGM Presentation 17 February 2016 Presented by Alan Wilson, Chairman John Hayward, Chief Executive Officer
Slide 2: Agenda
Agenda • Formalities • Oil and gas market conditions • Group overview • Focus on Alternative Energy • Lunch • Tour of Chesterfield Special Cylinders 2
Slide 3: Formalities
Formalities AL Pressure . “If Technologies 3
Slide 4: Resolutions
Resolutions Ordinary business • Resolution 1: Approval of Annual Report and • Resolution 6: Reappointment of auditor and Financial Statements fixing of remuneration • Resolution 2: Remuneration report • Resolution 7: Authority for Directors to allot shares • Resolution 3: Confirmation of Joanna Alle
Slide 5: Oil and gas market
Oil and gas market AL Pressure . “If Technologies 5
Slide 6: Too much oil…
Too much oil… Oil production • In 2014, the USA, Russia & Saudi 14,000 Arabia produced over 38% of the world’s total oil supply 12,000 10,000 • In the preceding ten years, oil production from these countries (Kbbls/day) 8,000 increased by 160%, 116% and 110% respectively 6,000 4,000 • Despite US & U
Slide 7: Key indicators…
Key indicators… 600,000 • US crude oil stocks have increased by 500,000 US Crude Oil Stocks Excl. SPR 30% since January 2015 400,000 (bbls) 300,000 200,000 100,000 - 2000 2004 2008 2012 09-01-15 06-02-15 06-03-15 03-04-15 01-05-15 29-05-15 26-06-15 24-07-15 21-08-15 18-09-15 16-10-15 13-11-15 11-12-
Slide 8: Consequences
Consequences • Unprecedented oil company balance sheet restructuring: $112bn 2014-15 • Considerable banking uncertainty prevails, particularly in the USA • The S&P500 energy sector ended 2015 down 24%, with Q4 earnings expected to decline nearly 70% year-on-year • Half of US shale drillers may go ba
Slide 9: Global fundamentals…2014-40
Global fundamentals…2014-40 • World’s population grows by 25% • OECD32 grows by about 65%, but share of • India rises to 1.6bn by 2040, surpassing China global GDP shrinks by almost 15% • Economic growth drives energy demand • China rises to almost 20% of world GDP, close • Global GDP will more than
Slide 10: Global fundamentals…2014-40
Global fundamentals…2014-40 • Oil fuels about 95% of transportation • Commercial transportation driven by • Demand for diesel & jet fuels grow 45% & 55% economic growth and trade respectively • Asia Pacific accounts for 50% of commercial • Trade & economic growth spur close to 55% transport energy g
Slide 11: Group overview
Group overview AL Pressure “If Technologies 11
Slide 12: A specialist engineering group supplying niche products & services to the global oil and gas markets
A specialist engineering group supplying niche products & services to the global oil and gas, defence, industrial gases and AE markets Pressure Technologies plc 2015 - Revenue £55.6m Adjusted Operating Profit £3.3m Precision Machined Engineered Products Cylinders Alternative Energy Components Revenu
Slide 13: Since IPO the group has delivered on its medium/long-term strategy
Since IPO the group has delivered on its medium/long-term strategy to widen the range of activities • At IPO the Company’s medium and long-term strategy was defined as: “..widening the range of the Company’s activities, as well as enhancing the profit margin by introducing better working practices.
Slide 14: Precision Machined Components Division
Precision Machined Components Division Almost 100% focus on oil and gas market Revenue £18.8m Market share maintained through cost down initiatives +45% and short delivery lead-times without compromising Adjusted operating profit product quality £4.5m +50% Wear parts and consumable tooling sales hol
Slide 15: Engineered Products Division
Engineered Products Division Division has seen the most marked impact in the oil and gas sector Revenue £8.5m Core high-pressure pump products impacted by reductions -23% in maintenance spend and higher asset utilisation by customers Adjusted operating loss £(0.4)m Rental model offering opportunitie
Slide 16: Cylinders Division
Cylinders Division Division performing in line with expectations Revenue Current order book underpinned by defence contracts £14.3m -33% US sales office making steady progress Adjusted operating profit Further progress with Integrity Management £2.1m Good pipeline of potential orders mostly outside
Slide 17: Alternative Energy Division
Alternative Energy Division Restructuring was completed last year Revenue Driver for sales is incentives and not oil and gas prices £14.0m +£66% Two contract wins in January and significant pipeline across Europe, North America and China Adjusted operating loss Timing of contract wins is important b
Slide 18: Summary & Outlook
Summary & Outlook Oil and gas market remain challenging but underlying medium to long-term prospects for the Group remain very positive Market conditions mask the Group’s strengths in product and service quality and strong customer relationships Major restructuring carried out across the Group to cu
Slide 19: Disclaimer
Disclaimer This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constitute o
Pressure Technologies — Shareholder Meeting (February 2016) on 6ix