Senior Plc · LSE:SNR
Senior — Investor Day (March 2025)
48 slides from Senior's investor day presentation, Mar 3, 2025
Slide 1: Investor Event
Investor Event Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 2: Welcome and agenda
Welcome and agenda 10.00 am Presentation Introduction and Overview David Squires Delivery of Strategy David Squires Fluid Conveyance and Thermal Management (FCTM) David Squires New and improved FCTM Financial Targets Bindi Foyle Conclusion and Summary David Squires 11.15 am Q&A David Squires and Bin
Slide 3: Introduction
Introduction Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 4: Delivery of strategy
Delivery of strategy Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 5: Strategy being delivered
Strategy being delivered Sale process of Aerostructures at an advanced stage Medium-term FCTM targets Positioned to be market leading pure play fluid conveyance and thermal management business At least mid teens Aerospace operating margin 10% - 12% Differentiated products combined with rich IP and e
Slide 6: Aerostructures portfolio
Aerostructures portfolio • Sale process at an advanced stage • Scope – 5 operating businesses, 7 sites • 2024 external revenue £272m, 28% of Group, 2024 operating loss of £6.5m • Well positioned for future growth • Non-core to Senior’s fluid conveyance and thermal management strategy Investor Day 20
Slide 7: Senior plc
Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 8: Financial Profile of Senior
Financial Profile of Senior Senior including Aerostructures Senior excluding Aerostructures Revenue1 Revenue1 2022 £977.1m £938.0m £824.6m £707.4m £694.3m 2023 £660.8m £592.0m £601.4m £539.2m 2024 £391.1m £357.7m £337.5m £317.7m £337.5m £306.5m £317.7m £286.2m £286.2m Margin (%) Aerospace Flexonics
Slide 9: A differentiated Senior with strong fundamentals
A differentiated Senior with strong fundamentals Pure play fluid conveyance and thermal Expertise management business… in fluid conveyance and thermal management …designing and manufacturing bespoke Innovative products and systems… solutions for demanding applications …for applications in attractive
Slide 10: Attractive end market exposure
Attractive end market exposure Aerospace (blue shading) Flexonics (green shading) Power & Energy 18% Aerospace & Defence 47% Power & Energy Aerospace & Defence 13% 61% 64% Civil aircraft Land Vehicle 19% FY 2024 Proforma FY 2024 Including Excluding Aerostructures Aerostructures 34% Military aircraft
Slide 11: Product categories – fluid conveyance and thermal management
Product categories – fluid conveyance and thermal management Aerospace (blue shading) Other Power & Energy Flexonics (green shading) 4% Industrial process control High pressure ducting 14% 24% Other LV components Proforma FY 2024 9% excluding Aerostructures Fluid control 14% Emission control 18% Low
Slide 12: Senior's FCTM locations
Senior’s FCTM locations Group headcount FY 2024 split Sales Employees 10000 N. America 60% 2,223 8000 6000 UK 18% 1,005 4000 Rest of Europe 18% 1,158 2000 0 Rest of World 4% 564 2018 2019 2020 2021 2022 2023 2024 2024 FCTM Flexonics: 11 operating businesses & JV Aerospace: 7 operating businesses Nor
Slide 13: Senior's operating structure – 2015
Senior’s operating structure – 2015 Aerospace division Flexonics division AMT Bird Bellows USA UK Crumlin Kassel UK Germany Damar BWT USA UK New Delhi Lymington P. Eng India UK Jet Products Thermal Eng. USA UK Pathway Olomouc USA Czech Rep. Ketema Calorstat USA France Senior Flexonics Cape Town Cana
Slide 14: Senior's FCTM operating structure
Senior’s FCTM operating structure Aerospace division Flexonics division Divisional CEO - Launie Fleming Divisional CEO - Mike Sheppard Divisional CFO - Rob Hancock Divisional CFO - Tom Baird Divisional BD - Scott Zipse Divisional BD - Shaz Malik Bird Bellows BWT Crumlin Cape Town UK Thermal Eng UK S
Slide 15: Active portfolio management
Active portfolio management Positioning the Group’s portfolio to maximise returns Sold Strategic review Senior Aerospace Aerostructures businesses Composites Sold AMT/Damar Sold Flexonics Blois Sold Jet/Ketema Merged Atlas Composites Flexonics Brazil Aerospace Connecticut SA Thailand Jet/Ketema Aero
Slide 16: Aerospace FCTM portfolio
Aerospace FCTM portfolio Low Pressure Ducting High Pressure Ducting Aerospace Control Parts Non-Aero Control Parts Gas Turbine Engines Engineered Welded Silencer Duct Welded Bellows Duct Assembly Maintenance Free Assemblies Accumulators Typical Wing Duct Products Low Pressure Engine Bleed Ducts, Act
Slide 17: Flexonics FCTM portfolio
Flexonics FCTM portfolio Automotive emission control Industrial process control Vacuum Seal Bellows Metal Expansion Joints EGR Coolers/Heat Exchangers Common Rails CSP - Solar Troughs Power Inverter Chill Plate RotationFlex ® Hydrogen fuel cell components Petrochemical, Refineries, & Steel Mills Tub
Slide 18: Breadth of product portfolio
Breadth of product portfolio Standard Parts Bespoke components Aerospace high pressure hydraulic Lightweight compressor for Squeeze duct for X-59 EGR cooler aerospace applications fluid fitting Aerospace Flanges Exhaust flex for Heavy Trucks Medical tool for open heart surgery Investor Day 2025 18
Slide 19: Breadth of product portfolio
Breadth of product portfolio Sub-system assemblies System design Expansion joint used in T-duct for bleed air systems Low-pressure ducting systems for High-pressure ducting system for oil-refinery in commercial aircraft rotorcraft commercial aircraft Typical wing duct products High Pressure / Bleed
Slide 20: Bellows technology at heart of Senior's differentiated products
Bellows technology at heart of Senior’s differentiated products A bellows is a zero leakage dynamic seal capable of a range of motion Made from a range of materials Investor Day 2025 20
Slide 21: Diverse end use applications
Diverse end use applications No-one does bellows smaller, bigger or better! Investor Day 2025 21
Slide 22: Competitive positioning – right to win
Competitive positioning – right to win Senior Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Senior’s strengths Products/Capabilities • Operational Track Record Low-pressure ducting ✓ ✓ ✓ ✓ • Best in Class safety High-pressure ducting ✓ ✓ ✓ ✓ ✓ • Quality Edge-Welded Bellows ✓ ✓ ✓ •
Slide 23: Why Senior wins - Deutsche Aircraft GmbH ecoprop case study
Why Senior wins - Deutsche Aircraft GmbH ecoprop case study • Senior awarded life of programme contract – For the design, development and manufacture of the Bleed Air System and the Engine Build Up (“EBU”) system for the D328eco aircraft. • Senior’s excellent design and manufacturing capabilities se
Slide 24: New and improved FCTM financial targets
New and improved FCTM financial targets Experts in fluid conveyance and thermal management Investor Day 2025
Slide 25: Medium-term FCTM financial targets
Medium-term FCTM financial targets Strategy to deliver enhanced shareholder value underpinned by new medium-term financial targets Expand Group adjusted Deliver increased returns Cash conversion* operating profit margins on capital Achieve at least… Double digit >85% 15%-20% Aerospace: Flexonics: …t
Slide 26: Through cycle revenue growth
Through cycle revenue growth Aim to outgrow end markets by 50% through the cycle … Aerospace & Defence Land Vehicles Power & Energy Market growth rates* of… Market growth rates* of… Market growth rates* of… 3-4% 2%-3% 2% driven by… driven by… driven by… Passenger traffic growth, fleet Transport volu
Slide 27: Aerospace adjusted operating profit margins
Aerospace adjusted operating profit margins Target At least mid-teen margins in the medium term Historical context Drivers of higher margins 16% 14% 12% 10% 8% 6% 4% 2% 0% 2018 2019 2020 2021 2022 2023 2024 Aerospace division (including Aerostructures) Fluid Systems FY2024 Pricing Volume Operational
Slide 28: Aerospace – achieving at least mid-teen margins: Pricing
Aerospace – achieving at least mid-teen margins Pricing Disciplined pricing management • Majority of improved pricing on LTAs is already agreed • Benefits multiply as volumes increase • Systemic approach to value-based pricing ‒ key skillset • Maintaining our pricing and return on capital discipline
Slide 29: Aerospace – achieving at least mid-teen margins: Volume
Aerospace – achieving at least mid-teen margins Volume Leveraging volume growth to expand margins • Increased capacity utilisation as OEMs continue to increase aircraft production rates • Building our standard parts business by broadening our product portfolio • Increased diversification into space,
Slide 30: Aerospace – achieving at least mid-teen margins: Operational efficiency
Aerospace – achieving at least mid-teen margins Operational Efficiency Delivery of cost savings - Senior Operating System • SOS - lean manufacturing key to improving efficiency and increasing margins • Simplified operational footprint reduces overhead • Headcount always aligned to revenue • Continue
Slide 31: Senior high-performance operating system
Senior high-performance operating system SOS will drive cost savings • Roadmap for continuous lean improvement success Operational Excellence Lean Tool Kit • Strategy deployment across Group, Divisions and Value Stream Operating Businesses using best practice ‘A3 x- Mapping TPM 5S + Safety matrix’ m
Slide 32: Flexonics adjusted operating profit margins
Flexonics adjusted operating profit margins Target 10% – 12% in the medium term Historical context Drivers of maintaining double-digit margins 12% 11% • Outgrowing end markets with our leading technology 10% and operational excellence 9% • Continual focus on lean manufacturing 8% • Benefiting from o
Slide 33: Group adjusted operating profit margins
Group adjusted operating profit margins Target At least double-digit in the medium term Historical context Drivers of margin expansion 10.0% • Focus on higher margin fluid conveyance and 8.0% thermal management portfolio • Improved pricing 6.0% • Leveraging volume growth 4.0% • Disciplined investmen
Slide 34: Cash conversion
Cash conversion Target >85% cash conversion rate through the cycle Good record of cash conversion Attractive characteristics • Senior’s business model is intrinsically cash 140% generative 120% • Better working capital efficiency with focus on lean 100% manufacturing as well as Sales, Inventory and
Slide 35: ROCE
ROCE Target 15% - 20% in the medium term Historical context Drivers of increased ROCE 20% • Operating margin expansion and profitable growth 18% • Lower capital intensity 16% 14% • Improved working capital efficiency 12% • Focus on IP-rich fluid conveyance and thermal 10% 8% management portfolio 6%
Slide 36: Capital allocation
Capital allocation Positioning the Group’s portfolio to maximise returns Capital allocation Objective How Invest 2% to 3% of revenue into R&D, Organic growth Outgrow end markets, improve cost efficiency Capex / depreciation of 1.1x Dividends Continue progressive dividend policy Maintain earnings cov
Slide 37: Conclusion
Conclusion Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 38: Strategy being delivered
Strategy being delivered Sale process of Aerostructures at an advanced stage Medium-term FCTM targets Positioned to be market leading pure play fluid conveyance and thermal management business At least mid teens Aerospace operating margin 10% - 12% Differentiated products combined with rich IP and e
Slide 39: Any questions?
Any questions? Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 40: Appendix
Appendix Senior plc Experts in fluid conveyance and thermal management Investor Day 2025
Slide 41: Notes
Notes (1) FCTM – fluid conveyance and thermal management. (2) Adjusted operating profit divided by revenue. We measure an adjusted basis, which excludes items that do not directly reflect the underlying trading performance in the period. (3) Operating cash flow divided by adjusted operating profit.
Slide 42: Purpose
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 Staying at the forefront of climate conveyance an
Slide 43: Financial profile of Senior
Financial profile of Senior Senior including Aerostructures 2024 2023(2) 2022(1) Senior excluding Aerostructures 2024 2023(2) 2022(1) Revenue £977.1m £938.0m £824.6m Revenue £707.4m £694.3m £592.0m Aerospace Revenue £660.8m £601.4m £539.2m Aerospace Revenue £391.1m £357.7m £306.5m Flexonics Revenue
Slide 44: Through Cycle End Market Growth Drivers
Through Cycle End Market Growth Drivers End market growth supports ambitious financial targets Civil Aerospace - RPKs: 3%-4% Land Vehicles (Class 8 trucks, k)*: 2%-3% 844 797 792 745 710 696 2024 2025 2026 2027 2028 2029 Source: IATA Sustainability and Economics, Tourism Economics (December 2024 rel
Slide 45: Aerospace FCTM platforms
Aerospace FCTM platforms A320 10% A220 9% 8% F-35 FY2024 excluding Other 53% Aerostructures 5% B737-MAX 4% 4% E2 3% C-130J 2% 2% G5000/6000 A350 A330 Embedded across all major civil aerospace and defence platforms Based on FY2024 revenue. Investor Day 2025 45
Slide 46: FCTM customers
FCTM customers Airbus 7% RTX Other Industrial 18% 4% Safran 4% Boeing 3% Lockheed 3% 2% Bombardier Other LV 11% Proforma FY 2024 excluding Aerostructures 4% Daimler Truck 5% 32% Caterpillar Other 7% Cummins On a derived basis: Airbus:Boeing ratio 66:34 Based on FY2024 revenue. Investor Day 2025 46
Slide 47: Lean Toolkit
Lean Toolkit • Seven primary tools to expose and eliminate waste • Four secondary tools used depending on the nature of Operational Excellence Lean Tool Kit the process Value Stream Mapping TPM 5S + Safety • Tools are taught and used in team-based Kaizen events Error Operational Standard proofing Wo
Slide 48: Acquisition framework
Acquisition framework Investor Day 2025 48