Weir Group PLC · LSE:WEIR
Weir — The Weir Group — H1 2007 Earnings Presentation
22 slides from Weir's earnings presentation, Aug 21, 2007
Slide 1: 2007 Interim Results
Analysts Presentation Excellent The Weir Group PLC Engineering London, 21 August 2007 Solutions 2007 Interim Results
Slide 2: Interim Financial Highlights 2007
The Weir Group PLC Excellent Engineering Solutions Interim Financial Highlights 2007 Group results H1 2007 (continuing operations) Order Input (1) Revenue Operating Profit (2) £547.6m £458.7m £44.2m Up 1% Up 13% Up 33% Profit Earnings Cash generated before tax(2) per share(2) from Operations £45.4m
Slide 3: Financial review
The Weir Group PLC Analysts Presentation Excellent Engineering London, 21 August 2007 Solutions 2007 Interim Results Financial review
Slide 4: Consolidated Income Statement
The Weir Group PLC Excellent Engineering Solutions Consolidated Income Statement H1 2007 H1 2006 £m £m Revenue - Continuing Operations 458.7 406.4 Profit from Continuing Operations 44.2 33.2 Exceptional Items – (1.8) Operating profit from Continuing Operations 44.2 31.4 Net Interest & Other Finance
Slide 5: Revenue Up £52.3m
The Weir Group PLC Excellent Engineering Solutions Revenue Up £52.3m Continuing Operations H1 2007 H1 2006 £m £m Engineering Products (1) 294.8 238.7 + 23% Engineering Services (1) 111.2 101.0 + 10% Defence, Nuclear & Gas (1) 52.7 48.3 + 9% 458.7 388.0 + 18% Foreign Exchange - 18.4 Group Operations
Slide 6: Operating Profit Up £11.0m
The Weir Group PLC Excellent Engineering Solutions (1) Operating Profit Up £11.0m Continuing Operations H1 H1 H1 H1 2007 2006 Variance 2007 2006 £m £m £m % % Engineering Products (2) 34.6 23.6 11.0 11.7 9.9 Engineering Services (2) 8.2 5.8 2.4 7.4 5.8 Defence, Nuclear & Gas 4.1 4.1 - 7.7 8.4 Central
Slide 7: Discontinued Operations
The Weir Group PLC Excellent Engineering Solutions Discontinued Operations 2006 Full Year H1 2007 H1 2006 £m £m £m Trading Results (After Tax) 3.2 Weir Pumps 3.1 1.0 8.1 DML 3.3 3.5 11.3 6.4 4.5 Exceptional Items – Gain on Sale (After Tax) - Weir Pumps 23.8 - - DML 54.9 - - 78.7 - 1.4 Previous years
Slide 8: Taxation
The Weir Group PLC Excellent Engineering Solutions Taxation Profit Before Tax Tax Rate £m £m % Continuing Operations: - before Joint Ventures 43.8 (12.6) 29% - Joint Ventures 1.8 (0.2) 11% 45.6 (12.8) 28% Joint Ventures (0.2) 0.2 Reported in Income Statement 45.4 (12.6) 8
Slide 9: Cash Flow and Net Debt – Continuing Operations
The Weir Group PLC Excellent Engineering Solutions Cash Flow and Net Debt – Continuing Operations 2007 £m 2006 £m Operating cash flows – pre working capital 51.3 40.5 Working Capital 0.6 4.7 Operating cash flows 51.9 45.2 Interest and tax (12.8) (7.6) Net Capex (11.1) (9.5) Dividends paid (22.4) (20
Slide 10: Net Assets Up £100m
The Weir Group PLC Excellent Engineering Solutions Net Assets Up £100m £m As at 29 December 2006 371.9 Profit for the period 117.9 Dividend Paid (22.4) Actuarial gain 10.3 Other movements (5.2) As at 29 June 2007 472.5 10
Slide 11: Financial Summary
The Weir Group PLC Excellent Engineering Solutions Financial Summary 3 Operating profit of £44.2m, up £11.0m (33%). (1) 3 Operating cash flow of £51.9m, up £6.7m. (1) 3 EPS – 15.8p (up 35%). (1) 3 Dividend 4.15p per ordinary share, up 11%. 3 Net funds of £124.0m, up £131.1m. (1) From Continuing Oper
Slide 12: 2007 Interim Results
The Weir Group PLC Analysts Presentation Excellent Engineering London, 21 August 2007 Solutions 2007 Interim Results
Slide 13: Order Input by Division - Continuing Operations
The Weir Group PLC Excellent Engineering Solutions Order Input by Division - Continuing Operations (1) Consolidated H1 2007 H1 2006 Variance £m £m % Engineering Products 374.3 305.5 +23% Engineering Services 131.1 130.8 +0.3% Defence, Nuclear & Gas 42.2 103.4 -59% Total 547.6 539.7 +1% Engineering P
Slide 14: Order input by sector
The Weir Group PLC Excellent Engineering Solutions Order input by sector (1) (Continuing operations) H1 H1 Variance 2007 First Half 2007 2006 % Input £m £m Water & waste Minerals processing 205.5 158.4 +30% water Power generation 5% Naval & marine Oil & gas 119.1 107.8 +10% 17% 7% General industrial
Slide 15: Engineering Products Division
The Weir Group PLC Excellent Engineering Solutions Engineering Products Division Input by sector Financial Highlights Water Oil Oil 5% 15% H1 2007 H1 2006 Var General Consolidated £m £m % Industrial 14% Power Power 15% Order input 374.3 305.5 +23% 81% Revenue 294.8 238.7 +23% Operating profit 34.6 2
Slide 16: Minerals – H1 2007 performance
The Weir Group PLC Excellent ORDER INPUT: £263.1m Up 34% Engineering Solutions Weir Engineering Products Division Minerals – H1 2007 performance 180 160 Sector Summary 140 120 Geographic Summary 140 100 120 80 £m 100 60 £m 80 40 60 20 40 20 0 Europe & Mideast & 0 Americas Australia Indo Pacific UK M
Slide 17: Clear Liquid – H1 2007 performance
The Weir Group PLC Excellent ORDER INPUT: £73.8m Up 5% Engineering Solutions Weir Engineering Products Division Clear Liquid – H1 2007 performance 40 40 Sector Summary 30 Geographic Summary 30 £m 20 £m 20 10 10 0 Mideast & Europe & 0 Americas UK Indo Pacific Other Oil Water Gen Ind Minerals Other Af
Slide 18: Valves & Controls – H1 2007 performance
The Weir Group PLC Excellent ORDER INPUT: £37.4m Down 2% Engineering Solutions Weir Engineering Products Division Valves & Controls – H1 2007 performance 25 12 20 Sector Summary 10 Geographic Summary 8 15 £m £m 6 10 4 2 5 0 0 Europe & Indo Pacific Mideast & Americas UK Power Oil & Gas Gen Ind Other
Slide 19: Engineering Services Division H1 2007 performance
The Weir Group PLC Excellent ORDER INPUT: £131.1m Up 0.3% Engineering Solutions Weir Engineering Services Division H1 2007 performance 50 Sector Summary 60 Geographic Summary 40 40 £m 30 £m 20 20 10 0 0 General Mideast & Indo Oil Power Minerals Naval Water Americas UK Australia Other Industrial Afri
Slide 20: Defence, Nuclear & Gas Division H1 2007 performance
The Weir Group PLC Excellent ORDER INPUT: £42.2m Down 59% Engineering Solutions Weir Defence, Nuclear & Gas Division H1 2007 performance Sector Summary Geographic Summary 100 40 75 £m 20 £m 50 25 0 Mideast & Indo Pacific 0 Europe UK Americas Naval & marine Oil Power Gen Industrial Africa & Australia
Slide 21: H1 2007 scorecard
The Weir Group PLC Excellent Engineering Solutions H1 2007 scorecard 9 Increased sales, profit and Financial scorecard cash generation Consolidated H1 2007 H1 2006 Var £m £m % 9 Services restructuring on Order input £547.6m £539.7m Up 1% track Revenue £458.7m £406.4m Up 13% Operating profit £44.2m £
Slide 22: Outlook
The Weir Group PLC Excellent Engineering Solutions Outlook Engineering Products Engineering Services Defence, Nuclear & Division Division Gas Division Expected to deliver Will continue to benefit Expected to produce growth in revenue and from last year’s results broadly profit when compared to restr