Renishaw plc · LSE:RSW
Renishaw — FY2011 Earnings Presentation
29 slides from Renishaw's earnings presentation, Jul 27, 2011
Slide 1: 2011 results
efg 2011 results 27th July 2011
Slide 2: Chairman's statement
Chairman’s statement I am delighted to announce record group results in terms of both revenue and profit for the year ended 30th June 2011. Total group revenue for the year was £288.7m (including £8.9m revenue from acquisitions during the year (2010 £nil)), 59% ahead of the £181.6m for last year and
Slide 3: Chairman's statement (continued)
Chairman’s statement (continued) Balance sheet Expenditure for the year on property, plant and equipment was £16.5m, of which £5.4m was in respect of property and £11.1m was in respect of plant and equipment. Expenditure on property included: - The refurbishment of our Charfield premises, purchased
Slide 4: Financial highlights
Financial highlights £m Adjusted profit before tax 2011 2010 change % of sales £m £m % 100 50 80.4 80 40 Revenue 288.7 181.6 +59% 60 30 41.7 40 32.7 28.7 20 Adjusted operating profit 78.9 28.1 +182% 20 8.8 10 0 0 Adjusted profit before tax 80.4 28.7 +180% 2007 2008 2009 2010 2011 Year Adjusted earni
Slide 5: Income statement
Income statement 2011 2010 change £m % £m % % Sales 288.7 100 181.6 100 +59% Cost of sales (91.3) (31) (65.3) (36) +40% Cost of sales (excl. Engineering) Engineering (incl R&D) (37.1) (13) (28.6) (16) +30% £m Gross profit 160.3 56 87.7 48 +83% 100 91.3 60 80 74.2 50 Distribution costs (52.1) (18) (3
Slide 6: Income statement – Engineering costs
Income statement – Engineering costs £m Engineering costs % of sales •Engineering costs (including R&D): 50 40 2011 2010 40.0 40 35.4 35.9 31.1 30.9 30 •Total spend £40.0m £30.9m 30 20 •Less capitalised £2.9m £2.3m 20 10 •Remaining in P&L £37.1m £28.6m 10 0 0 •Gross increase +29% 2007 2008 2009 2010
Slide 7: Income statement – Distribution & Admin costs
Income statement – Distribution & Admin costs £m Distribution costs % of sales •Group headcount at year end: 60 52.1 40 50 41.5 2011 2010 39.7 30 40 32.9 35.7 •UK 1,867 1,358 30 20 20 •Overseas 808 741 10 10 •Total 2,675 2,099 0 0 2007 2008 2009 2010 2011 •Business acquisitions increased headcount b
Slide 8: Income statement – Operating profit
Income statement – Operating profit Adjusted operating profit % of sales •Currency effects on profit £m 78.9 80 40 •Revenue increased by £2.5m, when comparing current year’s results at previous year’s exchange 60 30 rates. Profit before tax increased by £3.0m. 37.3 40 29.7 28.1 20 20 10 6.0 •Adjuste
Slide 9: Earnings per share & Dividend per share
Earnings per share & Dividend per share Adjusted earnings per share Dividend per share 100 88.0 40 35.0 80 30 25.4 24.7 22.9 60 45.9 17.6 17.6 35.9 20 15.8 31.6 13.6 40 10.3 10 7.1 7.8 7.8 7.8 20 9.3 4.0 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Year Year First half Second half Year tota
Slide 10: Group revenue analysis
Group revenue analysis Revenue £m 288.7 •Revenue up 59% at £288.7m, and up 43% compared with 300 highest previous year (2008) of £201.2m 250 201.2 200 180.9 171.2 181.6 150 100 50 •Segmental analysis 0 2011 2010 change 2007 2008 2009 2010 2011 £m £m % Year •Metrology 267.0 162.1 +65% •Healthcare 21.
Slide 11: Group revenue analysis
Group revenue analysis •Changes in geographic areas: Revenue by region At act fx At p/y fx •Far East +61% +65% 2011 2010 2011 2010 5% 6% Other 2% 3% UK •Europe +64% +64% •Americas +57% +58% Americas Far East •UK & Ireland +39% +39% 2011 2010 2011 2010 23% 23% 40% 39% •Revenue by major countries: 201
Slide 12: Group revenue by region
Group revenue by region 2011 2010 change at p/y fx change change Average fx rates £m £m % £m % fx (£m) 2011 2010 Far East 114.5 71.1 +61% 117.0 +65% (2.5) JPY/USD USD 1.60 1.58 JPY 132 143 Continental Europe 85.8 52.1 +64% 85.3 +64% 0.5 EUR EUR 1.16 1.14 Americas 65.1 41.5 +57% 65.6 +58% (0.5) USD A
Slide 13: Group revenue - Metrology
Group revenue - Metrology 2011 2010 change Revenue by region £m £m % Far East 106.7 64.2 +66% 2011 2010 2011 2010 Other 3% 3% UK 5% 5% Continental Europe 79.4 46.9 +69% Americas Far East Americas 60.6 38.0 +60% 2011 2010 2011 2010 22% 23% 40% 40% UK & Ireland 12.7 8.0 +58% Other regions 7.6 5.0 +53%
Slide 14: New product releases - Metrology
New product releases - Metrology High accuracy, self-adhesive tape scales for TONiC and RESOLUTE encoders RoLin miniature incremental linear and 12 bit absolute magnetic rotary magnetic encoder chip, with added encoders functionality including uvw outputs, programmable zero, tacho outputs, all combi
Slide 15: New product releases - Metrology
New product releases - Metrology Equator™, a radical new alternative to traditional dedicated gauging Slide 15
Slide 16: New investments - Metrology
New investments - Metrology Compact laser scanner maps underground voids •Metrology investment - MDL •£2.3m investment in July 2010 for 29% shareholding in Measurement Devices Limited (“MDL”) •£0.8m further investments in each of December 2010 and January 2011, raising total shareholding to 49% Lase
Slide 17: New investments - Metrology
New investments - Metrology •Metrology investment – MTT •£3.8m investment in April 2011 for 100% shareholding in MTT Investments Ltd (“MTT”) •Based in Stone, Staffordshire, UK, with 40 Vacuum metal casting employees – Non ferrous Injection moulding Prototype and low •Products and services: volume pr
Slide 18: New investments - Metrology
New investments - Metrology •Metrology investment – IP purchase from Aberlink •Assets purchased were: •Calibration technology software •Optical technology IP •£6.0m investment in June 2011, of which £3.0m is payable in two years •Metrology investment – Diameter •£0.3m investment in July 2010 for 55%
Slide 19: Group revenue - Healthcare
Group revenue - Healthcare 2011 2010 change £m £m % Revenue by region Far East 7.8 6.8 +16% 2011 2010 2011 2010 5% 7% Other Continental Europe 6.3 5.3 +20% 9% 13% UK Americas 4.6 3.5 +30% Far East 2011 2010 Americas UK & Ireland 2.0 2.6 -22% 2011 2010 36% 35% 21% 18% Other regions 1.0 1.3 -26% Europ
Slide 20: New product releases - Healthcare
New product releases - Healthcare RenDx™ RUO multiplex assay system, a research use only system, providing a highly sensitive and flexible tool to screen for multiple targets in a single analysis Notes Slide 20
Slide 21: New product releases - Healthcare
New product releases - Healthcare WiRE 3.3 – latest software release for the inVia Raman spectrometer. New features include: Microsoft® Windows® 7 compatible; Japanese language support; even higher resolution fast mapping. StreamLineHR image of mid-section of a nematode (Steinernema kraussei) showin
Slide 22: Awards
Awards AMB award for the PH20 at Maschinen Market Awards in Germany Renishaw’s 14th Queen’s Award. Awarded for the TRS2 tool recognition system Best Technology award at the Sir David McMurtry received the General plc awards, for TRS2 tool Pierre Nicolau Award from the Institute of Award for Equator
Slide 23: Cash flow from operating activities
Cash flow from operating activities 2011 2010 £m £m Profit before tax 82.1 27.0 Cash from operating activities Depreciation & amortisation 18.6 14.5 £m Financial income & expenses (0.7) (0.2) 80 Share of profits from associates (0.8) (0.5) 58.8 DB pension fund contributions (0.7) - 60 46.9 Impairmen
Slide 24: Cash flow
Cash flow 2011 2010 £m £m Cash from operating activities 58.8 24.5 Bank balance Interest received less paid 0.2 0.1 £m Dividends paid (17.4) (2.9) 38.2 40 34.6 Fixed assets purchased (net) (16.4) (2.7) 31.1 30 Intangible assets acquired (1.2) (0.2) 20.8 20.5 20 Development costs capitalised (10.1) (
Slide 25: Balance sheet
Balance sheet June June 2011 2010 change £m £m % Property, plant & equipment 82.3 70.5 +17% Intangible assets & investments 54.5 33.8 +61% Deferred tax assets 23.8 20.1 +18% Derivatives 0.7 4.0 -82% Total non-current assets 161.3 128.4 +26% Inventory 49.8 30.9 +61% Debtors 73.0 53.6 +36% Cash 34.6 3
Slide 26: Capital expenditure – Tangible fixed assets
Capital expenditure – Tangible fixed assets Capital expenditure •Total Tangible fixed asset spend £16.5m (2010 £2.9m), of which £5.4m was on property, £9.6m on plant and £1.5m on vehicles £m 20 16.5 •Tangible fixed asset additions of £1.6m at net book value through 15 9.7 11.0 business acquisitions
Slide 27: Capital expenditure - Property
Capital expenditure - Property Pune extension, India Slide 27
Slide 28: Capital expenditure - Property
Capital expenditure - Property Charfield property Spanish property Slide 28
Slide 29: Capital expenditure - Property
Capital expenditure - Property Newly purchased site – Miskin, South Wales Slide 29