Slide 1: Interim Results Announcement
Interim Results Announcement Six months to 30 June 2008
Slide 2: Contents
Contents Melrose results for six months to June 2008 FKI early review Questions 2
Slide 3: Melrose PLC Summary Financial Performance
Melrose PLC Summary Financial Performance
Slide 4: Financial results: Income statement
Financial results Income statement Six months ended 30 June 2008 6 months ended 6 months ended 30 June 2008 30 June 2007 £’m £’m Sales 177.7 172.9 Headline operating profit¹ 13.5 11.4 Profit before tax 12.3 12.0 Tax (3.2) (2.3) Profit after tax 9.1 9.7 Headline/Proforma EPS 7.5p¹ 6.7p¹ ² Basic EPS 6
Slide 5: Financial Results by division
Financial Results 2008 v 2007 headline results for the Group – by division 2008 (£’m) 2007 (£’m) Sales EBIT ROS% Sales EBIT ROS% Dynacast 126.2 18.0 14.3% 117.6 13.8 11.7% MVC 22.6 (2.4) (10.6)% 29.5 (0.2) (0.7)% MPC 28.9 2.8 9.7% 25.8 1.6 6.2% Central Costs – Corporate — (3.2) — (2.8) Central Cost
Slide 6: Financial Results: Cash flow
Financial Results Cash flow Period ended 30 June 2008 £’m Headline operating profit 13.5 Depreciation and computer software amortisation 5.7 Working capital movement (8.3) Net capital expenditure (7.7) Non-cash operating charges - LTIPS 1.7 Net interest and tax paid (3.7) Pension contributions (4.0)
Slide 7: Other Financial Highlights
Other Financial Highlights Tax – 26% headline rate but will increase post-FKI Exchange Average Closing 2008 2007 2008 2007 Euro 1.29 1.48 1.26 1.49 US Dollar 1.97 1.97 1.99 2.00 – Exchange gain in the period of £1.9m Pensions – Accounting deficit £20.4m (2007 year end: £25.2m) – Calculation of defic
Slide 8: Summary of Operating Divisions
Summary of Operating Divisions
Slide 9: Dynacast
Dynacast Period Ended 30 June 2008 EBIT Growth % 2008 Headline Results 2007 Headline Results (17%*) (23%*) (15%*) (17%*) Sales EBIT¹ ROS¹ Sales EBIT¹ ROS¹ £’m £’m % £’m £’m % North America 42.2 4.6 10.9 38.7 3.5 9.0 Europe 55.6 9.6 17.3 53.6 7.3 13.6 Far East 28.4 3.8 13.4 25.3 3.0 11.9 Total 126.2
Slide 10: MPC
MPC Period Ended 30 June 2008 Sales By Sector 2008 Headline Results 2007 Headline Results Sales EBIT¹ ROS¹ Sales EBIT¹ ROS¹ £’m £’m % £’m £’m % Stamford Bridge 9.5 1.4 14.7 7.7 0.7 9.1 Pickering 13.6 0.9 6.6 13.5 0.6 4.4 Other 5.8 0.5 8.6 4.6 0.3 6.5 Total 28.9 2.8 9.7 25.8 1.6 6.2 ¹ Before exceptio
Slide 11: MVC
MVC Period Ended 30 June 2008 Locations 2008 Headline Results 2007 Headline Results Sales EBIT¹ ROS¹ Sales EBIT¹ ROS¹ Staples £’m £’m % £’m £’m % Troy Newberry 8.1 1.4 17.3 7.4 1.5 20.3 Nicholasville 14.0 (2.2) (15.7) 21.9 0.6 2.7 Nicholasville MT&E Newberry 0.5 0.1 20.0 0.2 - - (Tooling) Head Offic
Slide 12: FKI Acquisition Update
| FKI Acquisition Update
Slide 13: Shape of Group
Shape of Group Melrose PF Group Sales: £1,712m PF Group EBIT (prior to central costs): £164m Lifting Energy Dynacast Logistex Hardware McKechnie Sales (£’m) 452.1 429.2 244.5 315.2 166.6 104.3 EBIT (£’m) 67.5 46.7 33.1 8.1 6.4 2.4 ROS (%) 14.9 10.9 13.5 2.6 3.8 2.3 % of Group EBIT 41.1% 28.4% 20.2%
Slide 14: Actions to Date
Actions to Date FKI divisions Investment being increased Overall strategic plan agreed Detailed operational strategy in place by the end of October Logistex sale progressing Hickory sale/closure announced Cost reduction London and Loughborough head offices closed USA and China head offices being red
Slide 15: Questions
| Questions
Slide 16: Appendices
| Appendices
Slide 17: Energy and Lifting
| Energy and Lifting
Slide 18: Energy
Energy Energy Sales By Company Sales By Geography £m Mar YE 2008 2007 Turnover 429.2 344.4 EBITDA 52.9 30.2 EBITDA margin 12.3% 8.8% Operating profit 46.7 24.2 Operating margin 10.9% 7.0% Key Points Sectors Included Grow market share Turbo: (year to March 2008 sales: £276.1m) – Brush, Harrington and
Slide 19: Lifting
Lifting Lifting Sales By Company Sales By Geography £m Mar YE 2008 2007 Turnover 452.1 434.2 EBITDA 76.5 67.4 EBITDA margin 16.9% 15.5% Operating profit 67.5 57.7 Operating margin 14.9% 13.3% Key Points Sectors Included Expand globally Bridon: (year to March 2008 sales: £216.3m) – Wire ropes for hea