Slide 1: Interim Results
Severfield Interim Results – 24 September 2022 Interim Results 24 September 2022
Slide 2: Alan Dunsmore, Chief Executive Officer
Severfield Interim Results – 24 September 2022 Alan Dunsmore Chief Executive Officer 2
Slide 3: A compelling investment case
Severfield Interim Results – 24 September 2022 A compelling investment case Built on a platform of All underpinned by a strong Exciting growth prospects operational excellence focus on sustainability • Continued momentum from • Internal roadmap to net zero by • Aligned to sectors with strong growth
Slide 4: Headlines
Severfield Interim Results – 24 September 2022 Headlines • Revenue up 20% to £234.9m reflects increased activity and steel prices • Underlying profit before tax up 17% to £12.1m • Net debt of £15.8m reflects stable H1 working capital position • High quality UK and Europe order book of £464m provides
Slide 5: Adam Semple, Chief Financial Officer
Severfield Interim Results – 24 September 2022 Adam Semple Chief Financial Officer 5
Slide 6: Group income statement
Severfield Interim Results – 24 September 2022 Group income statement 6 months to 6 months to £m 24 Sep 2022 25 Sep 2021 Revenue 234.9 195.9 Underlying operating profit (before JVs and associates) 12.1 10.2 Results of JVs and associates 1.0 0.6 Net finance expense (1.0) (0.5) Underlying profit befor
Slide 7: India income statement
Severfield Interim Results – 24 September 2022 India income statement 6 months to 6 months to 12 months to £m 24 Sept 2022 25 Sept 2021 26 Mar 2022 Revenue 70.3 41.2 100.3 Operating profit 3.9 2.3 5.2 5.6% 5.6% 5.2% Finance expense (2.5) (1.6) (3.3) Profit before tax 1.4 0.7 1.9 Tax (0.2) (0.1) (0.4
Slide 8: Balance sheet
Severfield Interim Results – 24 September 2022 Balance sheet £m 24 Sep 2022 26 Mar 2022 Non-current assets 228.8 230.0 Inventories 17.6 18.0 Current assets Trade and other receivables 118.3 118.5 Current tax asset 1.0 4.2 Total current assets 136.9 140.7 Total assets 365.7 370.7 Trade and other paya
Slide 9: Cash flow
Severfield Interim Results – 24 September 2022 Cash flow Net debt bridge – period ended 24 September 2022 Represents payment of the - deferred consideration from the acquisition of DAM Structures in (2.0) February 2021. (14.5) (4.0) (0.8) (1.6) £ million (6.0) 31.8 (15.8) (8.0) (20.0) (18.4) (7.0) (
Slide 10: Strategy
Severfield Interim Results – 24 September 2022 Strategy 10
Slide 11: Our strategic priorities are unchanged
Severfield Interim Results – 24 September 2022 Our strategic priorities are unchanged • New frameworks and contracts in Nuclear and Infrastructure – green infrastructure and transport • Growing European pipeline post pandemic Drive growth • Development of modular solutions – expansion of CMF and new
Slide 12: Project Horizon
Severfield Interim Results – 24 September 2022 Project Horizon 3 A long-term project to ensure we remain New digitisation project launched in H1 at forefront of technology and innovation as market leaders in the industry 1 Aims to maximise the automation of estimating, design, production and contrac
Slide 13: ESG leadership
Severfield Interim Results – 24 September 2022 ESG leadership Environmental • Top UK construction business in 2022 – FT climate change listing • CDP score of ‘A-’ for leadership on climate change, ‘A’ score in CDP supplier engagement rating • Certified as carbon neutral for manufacturing and constru
Slide 14: Green investment
Severfield Interim Results – 24 September 2022 Green investment Well positioned for green Battery plants Renewable energy growth Low carbon buildings New nuclear Low carbon transport 14
Slide 15: UK and Europe
Severfield Interim Results – 24 September 2022 UK and Europe 15
Slide 16: Divisional structure – UK and Europe
Severfield Interim Results – 24 September 2022 Divisional structure – UK and Europe 16
Slide 17: Market conditions
Severfield Interim Results – 24 September 2022 Market conditions • Some inflationary and supply issues for us and our clients have continued • Inflationary pressures expected to continue for rest of year and beyond • No significant disruption to operations or material profit impact • Cost impact bei
Slide 18: High quality UK and Europe order book
Severfield Interim Results – 24 September 2022 High quality UK and Europe order book Divisional mix (£m) Nov-22 Jun-22 600 Group 464 486 500 486 464 Commercial and 393 397 308 348 400 Industrial 367 318 301 300 Nuclear and 151 136 241 Infrastructure 200 Products and Processing 5 2 100 £m 0 UK 95% 96
Slide 19: Diversified UK and Europe order book
Severfield Interim Results – 24 September 2022 Diversified UK and Europe order book £m Order book sectors 600 500 464 393 400 323 300 287 230 Nuclear Data centres & others 200 Stadia & leisure Industrial & distribution 100 Transport Commercial offices 0 Nov-18 Nov-19 Nov-20 Nov-21 Nov-22 19
Slide 20: Commercial and Industrial
Severfield Interim Results – 24 September 2022 Commercial and Industrial Nov-22 Jun-22 Future trend for Order book £308m £348m Severfield Industrial and distribution 48% 39% Stadia and leisure 24% 33% Commercial offices 22% 26% Data centres and other 5% 2% Health and education 1% — Retail — — TOTAL
Slide 21: Nuclear and Infrastructure
Severfield Interim Results – 24 September 2022 Nuclear and Infrastructure Nov-22 Jun-22 Future trend for Order book £151m £136m Severfield Transport infrastructure 52% 65% Nuclear 46% 33% Power and energy 2% 2% Process industries - - TOTAL 100% 100% Market • Inflation being well managed conditions •
Slide 22: Products and Processing
Severfield Interim Results – 24 September 2022 Products and Processing Consists of Severfield Products & Processing (SPP) and Construction Metal Forming (CMF) Joint Venture SPP • Growing higher margin Severstor and Rotoflo product ranges • Severstor – repeat orders with blue chip clients and growing
Slide 23: India
Severfield Interim Results – 24 September 2022 India 23
Slide 24: India – overview
Severfield Interim Results – 24 September 2022 India – overview • 70% increase in JSSL revenue to £70m and operating profit to £4m reflects continued post- Covid growth • Group share of profit increased to £0.6m • Strong order book of £143m and growing order pipeline reflects expanding range of oppo
Slide 25: India order book
Severfield Interim Results – 24 September 2022 India order book 180 158 160 140 140 143 140 59 120 110 52 98 £m 100 87 95 80 90 60 78 99 91 40 53 20 45 20 20 0 Jun-20 Nov-20 Jun-21 Nov-21 Jun-22 Nov-22 Commercial work Industrial work 25
Slide 26: India – target sectors
Severfield Interim Results – 24 September 2022 India – target sectors Growth is returning post-pandemic – more developers Offices looking at steel Commercial Hospitals Demand is good, stable outlook Data and Increasing demand for data and distribution storage facilities – distribution centres Mumbai
Slide 27: Summary and outlook
Severfield Interim Results – 24 September 2022 Summary and outlook 27
Slide 28: Summary and outlook
Severfield Interim Results – 24 September 2022 Summary and outlook • Results demonstrate growth and resilience: — Profits up 17% — Strong balance sheet is important — Increased interim dividend • Strong, high quality order books provide good visibility of earnings into FY24 • Tendering and pipeline