Slide 1: 2024 Interim Results
2024 INTERIM RESULTS Robust results, full-year expectations unchanged Interim Results 2024
Slide 2: Agenda and Cautionary Statement
AGENDA Introduction David Squires CEO 2024 Interim Results Bindi Foyle FD Markets, Strategy & Outlook David Squires CEO Cautionary Statement This document has been prepared solely to provide additional information to enable shareholders to assess the Group’s strategy and business objectives and the
Slide 3: 2024 Interim Highlights
2024 INTERIM HIGHLIGHTS Robust trading performance with sales up 7%(1) and adjusted operating profit up 13%(1) Continued growth in order book, book-to-bill of 1.15 Notable new contract wins in both Aerospace and Flexonics divisions Important contract renewals bringing pricing up-to-date St
Slide 4: 2024 Interim Results
2024 INTERIM RESULTS Interim Results 2024
Slide 5: Financial Headlines
FINANCIAL HEADLINES H1 2024 H1 2023 Change Constant currency Book to bill ratio 1.15 1.20 Revenue £501.4m £482.3m +4% +7% Adjusted Operating Profit £25.1m £22.9m +10% +13% Adjusted Operating Margin 5.0% 4.7% +30bps +30bps Adjusted Profit before Tax £18.4m £17.6m +5% +8% Adjusted Earnings per Share 3
Slide 6: H1 2024 Revenue Bridge
H1 2024 REVENUE BRIDGE £m 550 42.1 (10.2) (0.5) 501.4 500 $1.26 (H1 23: $1.23) 482.3 (12.3) 450 H1 2023 Exchange Aerospace Flexonics Eliminations H1 2024 Revenue Reconciliation £m Revenue Reconciliation £m Aerospace (1) Flexonics (1) H1 2023 revenue 296.6 H1 2023 revenue 173.8 Civil aerospace 35.8 L
Slide 7: H1 2024 Adjusted Operating Profit Bridge
H1 2024 ADJUSTED OPERATING PROFIT(2) BRIDGE £m 28 4.6 (1.6) 26 0.2 (0.3) 25.1 $1.26 (H1 23: $1.23) 24 22.9 (0.7) 22 20 18 16 14 12 10 H1 2023 Exchange Aerospace Flexonics Share of JV Central Costs H1 2024 Aerospace (1) H1 2024 H1 2023 Change Flexonics (1) H1 2024 H1 2023 Change £m £m £m £m Revenue 3
Slide 8: Adjusted and Reported Profit
ADJUSTED AND REPORTED PROFIT H1 24 H1 23 £m £m Adjusted operating profit 25.1 22.9 Net finance costs – borrowings, cash (6.1) (4.8) – lease liabilities (IFRS 16) (1.6) (1.5) – retirement benefits 1.0 1.0 Adjusted profit before tax 18.4 17.6 Tax – ETR 20% (H1 23: 17%) (3.7) (3.0) Adjusted profit for
Slide 9: Cash Flow Generation
CASH FLOW GENERATION £m Inventory £(15.0)m Change in Net Debt: £m Receivables £(4.0)m Payables & other £(0.8)m Net cash outflow (18.5) Lease liabilities – additions and (10.3) modifications Exchange variations (0.5) Net debt – opening (203.8) Net debt – closing (233.1) (2) (6) (4) (5) (1) (3) (1) Ad
Slide 10: Financing Arrangements
FINANCING ARRANGEMENTS Credit facilities and headroom Profile of committed credit facilities £350m £350m Fixed rate £300m £300m Net debt (excluding leases) June 2024 - £156.1m Floating rate £250m Headroom £250m Headroom £158.4m £200m £200m £142.4m £150m £150m £100m £100m Net Debt Net Debt £156.1m (1
Slide 11: On Track to Achieve Minimum ROCE Target
ON TRACK TO ACHIEVE MINIMUM ROCE TARGET Min ROCE target Confident in delivering good returns on capital and ≥ 13.5% enhanced shareholder value 11.1% Portfolio optimisation strategy to maximise value creation Ongoing end- market growth across the Group with volume related Strategic focus on IP-rich f
Slide 12: Markets
MARKETS Interim Results 2024
Slide 13: Attractive End Market Exposure
ATTRACTIVE END MARKET EXPOSURE 33% Flexonics Division Aerospace Division 67% (37%) (63%) Power & Energy Civil Aerospace 13% (15%) 46% 78% 22% Land Vehicle (42%) 20% Single aisle, regional and business jets Wide body (22%) 8% Defence (8%) 13% (13%) Other Aerospace (Adjacent Markets)* End markets comp
Slide 14: Diversified Aerospace & Defence Platforms
DIVERSIFIED AEROSPACE & DEFENCE PLATFORMS A320 18% (17%) Other 40% (41%) 737 MAX 8% (10%) A220 6% (6%) F-35 5% (4%) 767 2% (2%) A350 5% (4%) G5000/6000 2% (2%) E2 3% (3%) 777 2% A330 3% (2%) 787 3% (3%) C-130 3% (3%) (3%) Based on H1 2024 Aerospace revenue. % in brackets are H1 2023 comparatives. In
Slide 15: Boeing 737 MAX (6% of Group)
Boeing 737 MAX (6% of Group) 737 MAX revenue represents 6% of Group in H1 2024 Boeing’s Renton production facility FAA imposed limit on 737 MAX production rate of 38 per month following Alaskan Airlines incident Boeing steadily increasing production towards rate 38 Expected to achieve that b
Slide 16: Civil Aerospace Market Growth (46% of Group)
CIVIL AEROSPACE MARKET GROWTH (46% of Group) Large commercial aircraft Strong structural growth in air Single aisle OEM order Resurgent long-haul travel deliveries decreased by travel; driven by growing books at record levels supporting widebody growth 14% in H1 2024 due to demand in Asia; supported
Slide 17: Defence Markets Growing (13% of Group)
DEFENCE MARKETS GROWING (13% of Group) Senior’s sales to the Defence Mature programmes such as the Senior is well placed with good sector are primarily focused on C-130J continue in series production content on key growth programmes US military-aircraft programmes such as F-35 and T-7A Red Hawk US d
Slide 18: Other Adjacent Markets (8% of Group)
OTHER ADJACENT MARKETS (8% of Group) Senior’s aerospace businesses supply to other markets e.g., space, semiconductor equipment and medical Semiconductor equipment market Our diversification into other attractive end-markets Low earth orbit satellite market Semiconductor equipment Growth of active
Slide 19: Land Vehicle Markets Growing Through the Cycle
LAND VEHICLE MARKETS GROWING THROUGH THE CYCLE (20% of Group) Global growth in GDP and tighter Global commercial vehicle market is Senior is supporting the transition to a low emissions regulations increase expected to grow at low single-digit carbon economy; providing thermal management demand for
Slide 20: Power & Energy Markets Growing (13% of Group)
POWER & ENERGY MARKETS GROWING (13% of Group) Global demand for oil to grow Electricity generation from Nuclear based generation important 1% in 2024 then <1% p.a. renewable sources will make up role to play in achieving Net Zero untill 2028, when it peaks. over one-third of mix by 2025 targets Worl
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK Interim Results 2024
Slide 22: Strategy Update
STRATEGY UPDATE Focus on fluid conveyance and thermal management continues. − Customers appreciate “one foot in today, one foot in tomorrow” strategy. The Group actively reviews its overall portfolio of operating businesses and evaluates them in terms of their strategic fit in order to grow retu
Slide 23: Continued Progress Made on Sustainability
CONTINUED PROGRESS MADE ON SUSTAINABILITY E S G Awarded the top ‘A’ score by CDP in its We undertook a Global Employee As previously reported two new non- global annual ranking for transparency on Engagement Survey in the first half of financial performance measures were climate change and sup
Slide 24: Group Outlook
GROUP OUTLOOK Senior has delivered a robust set of results that are in line with our expectations For the full-year we still expect to maintain good performance in Flexonics with H1 slightly higher than H2 due to a return to more typical levels of land vehicle demand The Group's diversified po
Slide 25: Any Questions?
ANY QUESTIONS? Interim Results 2024
Slide 26: Appendices
APPENDICES Interim Results 2024
Slide 27: Our Purpose
OUR PURPOSE We help engineer the transition to a sustainable world for the benefit of all our stakeholders. We do this by: Technology Customer Climate expertise transition action Using our technology expertise in fluid Enabling our customers, who operate in Staying at the forefront of climate convey
Slide 28: Investment Case: Positioned for Growth
INVESTMENT CASE: POSITIONED FOR GROWTH Our Purpose: We help engineer the transition to a sustainable world for the benefit of all of our stakeholders Clear strategy to maximise shareholder value Focus on IP-rich Aerospace fluid conveyance & Leading thermal Focused Long-term Flexonics Differentiated
Slide 29: Our Business Model
OUR BUSINESS MODEL Our vision is to be a trusted and collaborative high value-added engineering and manufacturing company delivering sustainable growth in operating profit, cash flow and shareholder value Our purpose: We help engineer the transition to a sustainable world for the benefit of all our
Slide 30: Strategic Priorities
STRATEGIC PRIORITIES Considered and Autonomous and Competitive Cost High Performance Focus on Growth Effective Capital Talent Development Collaborative Sustainability Country Strategy Operating System Deployment Business Model Outgrow our end The executive team Skilled workforce and Empowerment En
Slide 31: Focus on IP-Rich Technology and Manufacturing
FOCUS ON IP-RICH TECHNOLOGY AND MANUFACTURING 69% Fluid Conveyance and Fluid Conveyance and Thermal Management Thermal Management Product and System Design & Manufacturing IP UK North America Asia & Africa Europe Cape Town India GmbH H1 2024 revenue Mexico Structures Complex Machining and Manufactur
Slide 32: Highly Engineered Products in Attractive End-Markets
HIGHLY ENGINEERED PRODUCTS IN ATTRACTIVE END-MARKETS Fluid conveyance and thermal management technology embedded in our IP-rich products Semiconductor Medical Power & Energy Land vehicle Defence Aerospace Equipment Fuel cell energy Composite ducting Solar Additive manufacturing Petrochemical Hybrid
Slide 33: Future Proofing Business as We Transition to Low Carbon World
FUTURE PROOFING BUSINESS AS WE TRANSITION TO LOW CARBON WORLD 2010s 2020s 2030s 2040s Launch of more efficient Urban Air Mobility (UAM) More widespread use of SAF EIS and production of Aerospace aero engines services to start from 2024 in commercial aircraft* hydrogen-powered aircraft We are working
Slide 34: Product Development Strategy Compatible with Our Focus on ESG
PRODUCT DEVELOPMENT STRATEGY COMPATIBLE WITH OUR FOCUS ON ESG End-market evolution to achieve Net Zero Aerospace - Airbus envisions using multiple pathways including use of hydrogen and sustainable aviation fuels to reduce emissions Land vehicle - More efficient diesel engines and accelerating hydro
Slide 35: Fluid Conveyance & Thermal Management Capability Highlights
FLUID CONVEYANCE & THERMAL MANAGEMENT CAPABILITY HIGHLIGHTS 1 2 3 4 5 World class fluid Industry leading Component & Thin-wall metal Additive conveyance & edge-welded and system level manufacturing manufacturing thermal management formed bellows simulation & analysis expertise expertise system desig
Slide 36: Strategic Progress: IP, Technology & Manufacturing
STRATEGIC PROGRESS: IP, TECHNOLOGY & MANUFACTURING IP Technology Manufacturing Maintained focus on IP-rich technology and Developing novel solutions for low and Capabilities supported by a strong body of manufacturing zero carbon applications design and manufacturing process intellectual property an
Slide 37: Acquisition Framework
ACQUISITION FRAMEWORK More Likely Less Likely Aerospace & Defence Semiconductor Equipment Market Power & Energy (clean energy) Volume Automotive Land Vehicle (electrification) Medical Fluid Conveyance Products Structures / Machining Product Thermal Management Products Own design / IP products Commod
Slide 38: Our Locations
OUR LOCATIONS UK Rickmansworth H.O. HY 2024 split Sales Employees Massachusetts Metal Bellows Crumlin Lymington N. America 58% 2,904 Canada BWT SF Canada Maine (part of UK 17% 1,426 Pathway) Bird Bellows Thermal Rest of Europe 14% 983 Wisconsin Weston EU GA Rest of World 11% 1,528 Germany Washington
Slide 39: Our Customers
OUR CUSTOMERS 33% Flexonics Division Other Industrial 12% Boeing 9% (8%) Aerospace Division 67% (37%) (12%) (63%) SLB 1% Spirit 7% (7%) (3%) Other LV 8% (9%) Rolls-Royce 7% (6%) Daimler 3% (3%) Caterpillar Airbus 6% (5%) 3% (4%) Cummins 6% (6%) RTX 5% (3%) Safran 3% (3%) Bombardier 2% (2%) Lockheed
Slide 40: Our Products
OUR PRODUCTS 33% Flexonics Division Other machined parts 3% (5%) Aerospace Division 67% (37%) (63%) Industrial flexible parts 10% High Pressure ducting 15% (10%) (14%) Fuel distribution (LV) 1% (1%) Off-highway hydraulics (LV) 2% (3%) Exhaust flexes (LV) 4% (4%) Airframe structural parts 15% (15%) E
Slide 41: Group Evolution
GROUP EVOLUTION Revenue (£m) Adjusted Operating Profit (£m) Adjusted Operating Margin (%) 50 12 1200 45 40 10 1000 35 Total after central costs 8 800 30 Total after central costs 25 6 600 20 400 15 4 10 200 2 5 0 0 0 2020 2021 2022 2023 HY 2024 2020 2021 2022 2023 HY 2024 2020 2021 2022 2023 HY 2024
Slide 42: Balance Sheet
BALANCE SHEET £m June 2024 Dec 2023 June 2023 FX Impact from Dec 2023 Goodwill and other intangible assets 226.2 226.4 226.8 £m Investment in JV 4.2 5.1 4.6 Non current assets (1.0) Property, plant and equipment 284.0 284.7 283.1 Working capital (0.2) Other long-term assets 24.4 21.5 12.8 Net debt (
Slide 43: Usage of Credit Facilities – June 2024
USAGE OF CREDIT FACILITIES – JUNE 2024 Usage by Currency Interest Facility Usage £ $ € Other % £m £m US Private placements: $25.0m (Feb 2030) 6.26% 19.8 19.8 - 19.8 - - $25.0m (Feb 2030) 6.26% 19.8 19.8 - 19.8 - - $30.0m (Sep 2028) 4.18% 23.8 23.8 - 23.8 - - €28.0m (Feb 2027) 1.51% 23.7 23.7 - - 23.
Slide 44: Aerospace Division
AEROSPACE DIVISION Interim Results 2024
Slide 45: Aerospace Division: A Summary
AEROSPACE DIVISION: A SUMMARY HY 2024 HY 2023(1) Change 14 Operations Revenue £338.7m £296.6m +14.2% NAFTA 6 France 2 Adjusted Operating Profit(2) £16.2m £11.6m +39.7% UK 4 Adjusted Operating Margin(2) 4.8% 3.9% +90bps ROW 2 Markets Customers Boeing 14% Other 13% Other 29% Spirit 10% Defence 19% Nor
Slide 46: Flexonics Division
FLEXONICS DIVISION Interim Results 2024
Slide 47: Flexonics Division: A Summary
FLEXONICS DIVISION: A SUMMARY HY 2024 HY 2023(1) Change 11 Operations & JV NAFTA 4 Revenue £163.6m £173.8m -5.9.% EU 2 Adjusted Operating Profit(2) £17.9m £19.5m -8.2% UK 2 ROW 3 Adjusted Operating Margin(2) 10.9% 11.2% -30bps China JV 1 Other Markets Markets Customers 16% Cummins 17% Other 32% Cate