Melrose Industries Plc · LSE:MRO
Melrose Industries — Investor Presentation (June 2012)
15 slides from Melrose Industries's investor presentation, Jun 12, 2012
Slide 1: Lifting
Lifting 53% of Jonathan Templeman – Chief Executive Lifting 22% of Melrose
Slide 2: Products overview
Products overview Oil & Gas Mining Crane and industrial Specialist fibre and steel rope High quality steel wire ropes High performance wire ropes Mooring, drilling, pipe laying and crane ropes for Shaft mining, surface mining and cable-belt ropes Construction (cranes) and general engineering /
Slide 3: Locations overview
Locations overview Global reach - 11 manufacturing and 12 distribution / sales locations worldwide Big Hydra rope - Take Pre - form head on up stand closer machine Frigerio wire drawing machine Large closer Galvanising International Site Services machine 11 manufacturing locations 12 distribution/sa
Slide 4: Financial performance
Financial performance Revenue Headline³ operating profit growth (%) Cash conversion £259m £246m £238m £237m +35% +7% (15%) +3% (4%) +9% +21% 104% Average headline³ operating profit conversion to cash (pre capex) in Melrose ownership 1,2 2008 2009 2010 2011 2007 2008 2009 2010 2011 2011 revenues ah
Slide 5: Sales by end market and geography
Sales by end market and geography Sales breakdown by end market, 2011 Sales breakdown by geography, 2011 8% 6% 18% 8% 31% 4% 32% Oil & Gas and Mining (52%) 28% 32% 21% 2% 10% Oil and Gas Mining Asia North America Industrial Structures Oceania South & Central America Fishing & Marine Wire Europe & ME
Slide 6: Competitive position
Competitive position Wire rope sector – c.1,800k tonnes¹ Served by sector Sector suppliers c.550k tonnes 9% 15% 2% 44% Served c.5 50k 46% 12% t o nn es 26% 12% 2% 7% 3% 5% 17% KisWire Bridon WireCo Usha Oil & Gas Mining Industrial Haggie Redaelli WWW Other Structures Fishing Key customers Note ¹ Sec
Slide 7: Medium term growth prospects
Medium term growth prospects Strong, continued growth in the world’s oil & gas demand World energy demand by fuel World Demand Demand move from West to East 18000 16000 Higher oil prices enable exploitation of more 14000 12000 challenging reserves 10000 8000 IEA forecasts annual oil demand gro
Slide 8: Medium term growth prospects
Medium term growth prospects Increased global mining demand Steel consumption per capita (kg/year) Emerging Countries Metals demand in India is predicted to double in five years and remain robust for a decade (Bloomberg Analyst) Increase of consumption of steel per capita driving demand for coki
Slide 9: Key developments under Melrose ownership
Key developments under Melrose ownership Culture change Technology leadership Awaking the sleeping giant! Solutions Strategic direction and leadership Technical expertise Performance management system New product development – process, 3D design and FEA From “Blame” to “Game for” Eng
Slide 10: Investment and growth phase
Investment and growth phase Key investment overview Newcastle – new facility – New manufacturing facility – c. £20m investment in 2011 and 2012 – 9,000 tonnes of additional capacity – Will produce the next generation of ropes, the biggest and most capable in the world Doncaster – Investment in o
Slide 11: Global technology leadership
Global technology leadership Significant investment for the future: Project Neptune Overview State-of-the-art manufacturing facility Heavy lift transportation Leading rope technology Logistical flexibility Supporting ultra deep challenges Installation expertise World leading capacities
Slide 12: Global technology leadership
Global technology leadership At the forefront of technology: technology centre Overview Towards being the global technological leader Leading edge testing equipment Support to our new product development, leading to innovative products Artist’s impression 12 Global technology leadership
Slide 13: Global technology leadership: new products launched in 2011
Global technology leadership 7 new products launched in 2011, and strong pipeline New products BriStar Core for Large Diameter Winch and Crane Ropes VIV Strakes on Sheathing of Deep Water Mooring Cables 24LS Dyform Non-Rotating Hoist Rope Extruded and Sheathed Round Balance Rope 23 Global technology
Slide 14: Global technology leadership: future developments
Global technology leadership 7 new products launched in 2011, and strong pipeline Future developments Multistrand Rope Development for Neptune High Strength Light Weight Hybrid Ropes 23 Global technology leadership
Slide 15: Concluding remarks
Concluding remarks 1 Continued investment under Melrose’s ownership Investing in innovative new products that will deliver real benefits for our customers Investing to create the world’s leading rope manufacturer A pipeline of projects - new facility in Newcastle coming on-line next year 2 Cle
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