Slide 1: Interim Results 2010
INTERIM RESULTS 2010 Interim Results 2010
Slide 2: Agenda
AGENDA Introduction Martin Clark Chairman “Senior has delivered an excellent set of results for the first half of 2010. The benefits of increased volumes, combined with the effects of the cost reduction measures implemented last year and an improved product mix, have enabled the Group to deliver an
Slide 3: Interim Results 2010
2010 INTERIM RESULTS Interim Results 2010
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS H1 2010 H1 2009 Change Revenue £287.7m £275.9m +4% Adjusted Operating Profit £37.7m £28.9m +30% Adjusted Operating Margin 13.1% 10.5% - Adjusted Profit before Tax £32.5m £23.5m +38% Adjusted Earnings per Share 5.94p 4.27p +39% Interim Dividend 1.00p 0.90p +11% Net Borrowings £87
Slide 5: Aerospace Results – constant exchange rates
AEROSPACE RESULTS – constant exchange rates (2) Turnover £m Adj Operating Profit(1) £m Margin on Sales 2010 2009 Change 2010 2009 Change 2010 2009 169.9 165.2 +2.8% 25.3 21.4 +18.2% 14.9% 13.0% Increasing build rates on principal military programmes, plus market share gains Turnover in large commerc
Slide 6: Flexonics Results – constant exchange rates
FLEXONICS RESULTS – constant exchange rates (2) Turnover £m Adj Operating Profit(1) £m Margin on Sales 2010 2009 Change 2010 2009 Change 2010 2009 118.0 107.9 +9.4% 15.2 10.3 +47.6% 12.9% 9.5% Increase in passenger car production in North America, Europe, Brazil and India Increased sales of heavy du
Slide 7: Division Results – constant exchange rates
DIVISION RESULTS – constant exchange rates (2) £m Turnover Adj Operating Profit (1) Margin on Sales 2010 2009 Change 2010 2009 Change 2010 2009 Aerospace 169.9 165.2 +2.8% 25.3 21.4 +18.2% 14.9% 13.0% Flexonics 118.0 107.9 +9.4% 15.2 10.3 +47.6% 12.9% 9.5% Inter-Segment sales (0.2) (0.3) - - - - - -
Slide 8: Geographic Results – constant exchange rates
GEOGRAPHIC RESULTS – constant exchange rates (2) £m Turnover by Origin Adj Operating Profit (1) Margin on Sales 2010 2009 Change 2010 2009 Change 2010 2009 North America 186.5 181.7 +2.6% 27.8 24.9 +11.6% 14.9% 13.7% Rest of Europe 51.8 43.5 +19.1% 1.3 (0.5) - 2.5% -1.1% United Kingdom 29.4 31.8 -7.
Slide 9: Adjusted and Reported Profit
ADJUSTED AND REPORTED PROFIT June June 2010 2009 Change £m £m Adjusted operating profit (1) 37.7 28.9 +30% (2) (2) Net interest payable - borrowings and cash (4.1) (3.2) - retirement benefits (1.1) (2.2) Adjusted profit before tax (1) 32.5 23.5 +38% Tax (2010: 27.1%; 2009: 27.7%) (8.8) (6.5) Adjuste
Slide 10: Earnings per Share and Dividends
EARNINGS PER SHARE AND DIVIDENDS 2010 2009 Change Average number of shares Basic 399.0m 398.1m +0.9m Fully diluted 412.5m 403.3m +9.2m Adjusted earnings per share(1) Basic 5.94p 4.27p +39% Fully diluted 5.75p 4.22p +36% Dividends (pence per share) Interim 1.00p 0.90p (35%) +11% Final 1.70p (65%) Tot
Slide 11: Free Cash Flow Bridge
FREE CASH FLOW BRIDGE £m Adj OP(1) Free Cash 50 9.9 (5.2) Flow Flexonics 45 Discretionary 1.2 (3.9) £(2.5)m (3.7) 10.9 40 Aerospace (6.5) (7.3) 37.7 35 (5.5) Flexonics 30 Aerospace 27.6 25 20 15 10 5 - Adjusted Depreciation Pensions in Inventory Receivables Payables Other Non Net Interest Tax paid N
Slide 12: Change in Net Debt
CHANGE IN NET DEBT June June Dec 2010 2009 2009 £m £m £m Free cash flow 27.6 28.9 60.1 Dividends (6.8) (6.8) (10.4) Deferred consideration received - - 0.5 Share issues 0.1 0.1 0.1 Net cash inflow 20.9 22.2 50.3 Exchange variations (page 29) (6.0) 24.9 21.9 Net debt - opening (102.3) (174.5) (174.5)
Slide 13: Balance Sheet
BALANCE SHEET June June Dec 2010 2009 2009 £m £m £m Goodwill and other intangible assets 185.9 179.0 180.3 Property, plant and equipment 116.2 117.6 118.0 Other long-term assets 0.8 3.5 0.8 Non current assets 302.9 300.1 299.1 Inventories 70.8 72.0 65.0 Receivables and construction contracts 87.9 82
Slide 14: Working Capital
WORKING CAPITAL Balance Sheet Cash Flow Receivables Working Inventories (and construction Payables contracts) Capital £m £m £m £m 31 December 2009 (page 10) 65.0 79.6 (95.6) Movements in period: Aerospace 0.9 5.8 (4.3) (2.4) Flexonics 2.8 1.5 (6.8) 2.5 Holding companies - - 0.2 (0.2) Cash flow 3.7 7
Slide 15: Markets
MARKETS Interim Results 2010
Slide 16: Senior's Markets – H1 2010
SENIOR’S MARKETS – H1 2010 41% Flexonics Division Other Industrial 4% Aerospace Division 59% (39%) (4% ) (61%) Petrochemical 4% (4%) Power & Energy 5% (8%) 23% Large Commercial Aircraft (25%) Heating, Ventilation & Solar 6% (5%) Truck 6% (6%) Passenger Vehicles 16% (12%) 17% Military/Defence Aerospa
Slide 17: Large Commercial Aircraft (23% of Group)
LARGE COMMERCIAL AIRCRAFT (23% of Group) Shipset Value ($k) H1 Deliveries x Shipset Value ($m ) H1 10 Order Outlook 0 200 400 600 800 1000 1200 0 5 10 15 20 25 30 35 40 2011/12 deliveries book 737 181 2,007 737 777 35 270 777 A318/9/20/21 201 2,237 A318/9/20/21 A330 40 377 A330 A380 7 204 A380 767 6
Slide 18: Regional and Business Jets (9% of Group)
REGIONAL AND BUSINESS JETS (9% of Group) Shipset Value ($k) H1 Deliveries x Shipset Value ($m ) H1 10 Order Outlook 0 50 100 150 200 250 300 350 deliveries book 0 1 2 3 4 5 6 2011/12 G500/550 24 (1) ? G500/550 ERJ 190/195 34 207 ERJ 190/195 CRJ 700/900 14 52 CRJ 700/900 (1) GX/GX5000 8 ? GX/GX5000 G
Slide 19: Military and Defence (17% of Group)
MILITARY AND DEFENCE (17% of Group) Shipset Value ($k) Estim ated Deliveries x Shipset Value ($m ) Estimated Outlook 0 200 400 600 800 1000 H1 10 0 2 4 6 8 10 12 14 16 18 2011/12 deliveries Black Haw k 100 Black Hawk C-130J 9 C-130J V22(Heli) 15 V22(Heli) Eurofighter 25 Eurofighter C17 6 C17 JSF (F3
Slide 20: Land Vehicles (22% of Group)
LAND VEHICLES (22% of Group) European Car Production(1) (11% of Group) (rolling 12 month million vehicles) Passenger Vehicles (16% of Group) 18 EU H1 car sales flat; production 21% 16 NA H1 car sales 13%; production 62% 14 Brazil H1 car sales 6%; production 14% 12 India H1 car sales 31%; production
Slide 21: Industrial (19% of Group)
INDUSTRIAL (19% of Group) Power & Energy (5%) – H1 sales 35% – early signs of renewed activity being seen Petrochemical (4%) – H1 sales 3%; healthy backlog going into 2010 HVAC (4%) – H1 sales 6% – Hargreaves: nuclear solid/ commercial very weak Renewable Energy (2%) – H1 sales 47% (by £1.5m) but su
Slide 22: Outlook
OUTLOOK Interim Results 2010
Slide 23: Near Term Outlook
NEAR TERM OUTLOOK 2010 Aerospace: H2 healthy and overall similar to H1 – large commercial getting gradually stronger towards year end – business and regional jet weak but stabilising – Senior’s military programmes solid Flexonics: H2 satisfactory but weaker than H1 – European cars weaker; North Amer
Slide 24: Longer Term Growth Opportunities (1)
LONGER TERM GROWTH OPPORTUNITIES …....... (1) New Aerospace Programmes 787 A350 CSeries JSF Boeing 737 from 31.5 to 35 per month - early 2012 – considering further increases Increasing Boeing 747-8 from 1.5 to 2.0 per month - mid 2012 Aircraft Boeing 777 from 5.0 to 7.0 per month - mid 2011 Deliveri
Slide 25: Longer Term Growth Opportunities (2)
LONGER TERM GROWTH OPPORTUNITIES …....... (2) Market Recovery Heavy Trucks Passenger Vehicles Business Jets Regional Jets 6% Group Sales 16% Group Sales 5% Group Sales 4% Group Sales Increasing Operational Excellence Customer Focus Product Development Market Share Head of Business Development Group
Slide 26: Any Questions?
ANY QUESTIONS? Interim Results 2010
Slide 27: Appendices
APPENDICES Interim Results 2010
Slide 28: Group Evolution
GROUP EVOLUTION Revenue (£m) Adjusted Operating Profit (£m) Adjusted Operating Margin (%) 600 70 16 Total after central costs 60 Total after central 14 500 costs 12 50 400 10 40 300 8 30 6 200 20 4 100 10 2 0 0 0 2006 2007 2008 2009 H1 2010 2006 2007 2008 2009 H1 2010 2006 2007 2008 2009 H1 2010 Aer
Slide 29: Exchange Rates
EXCHANGE RATES Profit and Loss Account Balance Sheet Average Rates Period End Rates June June Dec June June Dec 2010 2009 Change 2009 2010 2009 Change 2009 £ : US Dollar 1.54 1.50 -2.6% 1.56 1.52 1.65 +8.5% 1.61 £ : Euro 1.15 1.11 -3.5% 1.12 1.21 1.17 -3.3% 1.13 £ : Rand 11.53 13.52 +17.3% 13.01 11.
Slide 30: Division Results – As Reported
DIVISION RESULTS – AS REPORTED £m Turnover Adj Operating Profit (1) Margin on Sales 2010 2009 Currency 2010 2009 Currency 2010 2009 Impact(2) Impact(2) Aerospace 169.9 169.2 (4.0) 25.3 22.0 (0.6) 14.9% 13.0% Flexonics 118.0 107.0 0.9 15.2 9.6 0.7 12.9% 9.0% Inter-Segment sales (0.2) (0.3) - - - - -
Slide 31: Geographic Results – As Reported
GEOGRAPHIC RESULTS – AS REPORTED £m Turnover by Origin Adj Operating Profit (1) Margin on Sales 2010 2009 Currency 2010 2009 Currency 2010 2009 Impact(2) Impact(2) North America 186.5 185.8 (4.1) 27.8 25.5 (0.6) 14.9% 13.7% Rest of Europe 51.8 45.0 (1.5) 1.3 (0.5) - 2.5% -1.1% United Kingdom 29.4 31
Slide 32: Division Results – Half Yearly
DIVISION RESULTS – HALF YEARLY Turnover Adjusted Operating Profit H1 2010 H2 2009 H1 2009 H2 2008 H1 2010 H2 2009 H1 2009 H2 2008 Aerospace 169.9 150.0 169.2 160.7 25.3 16.8 22.0 22.1 Flexonics 118.0 114.3 107.0 122.0 15.2 16.6 9.6 11.7 Inter-segment sales (0.2) (0.1) (0.3) (0.2) - - - - Central cos
Slide 33: Senior's Products – H1 2010
SENIOR’S PRODUCTS – H1 2010 41% Flexonics Division Aerospace Division 59% (39%) (61%) 15% Engine structures and mountings Expansion joints, bellows, hoses (Ind) 13% (16%) (16%) HVAC ducting (Ind) 6% (5%) Fuel distribution (LV) 6% 13% High pressure ducting (5%) (14%) Emission control (LV) 6% (6%) Exh
Slide 34: Senior's Customers – H1 2010
SENIOR’S CUSTOMERS – H1 2010 41% Flexonics Division Aerospace Division 59% (39%) 7% UTC (61%) (6%) Industrial 19% 7% Boeing (21% ) (7%) all 1% of 4% Spirit (3%) Group or less 3% Rolls Royce (3%) Other Land Vehicle 6% (4%) 3% GKN (2%) Fiat 1% (1%) 3% Goodrich (4%) Renault 2% (1%) 3% Airbus & EADS GM
Slide 35: Free Cash Flow
FREE CASH FLOW June June Dec 2010 2009 2009 £m £m £m Operating profit 35.4 26.5 61.0 Depreciation 9.6 10.5 20.1 Amortisation of intangible assets 2.6 2.7 5.3 Charge for share options 0.8 0.5 0.9 Loss on disposal of fixed assets - - 0.1 Exceptional pension gain - - (6.3) Pension payments above servic
Slide 36: Gross Capital Expenditure
GROSS CAPITAL EXPENDITURE H1 2010 H1 2009 Capex Depn (1) Capex Depn (1) £m £m £m £m Aerospace 3.8 5.6 4.2 5.8 Flexonics 1.8 4.3 1.5 5.0 Holding Companies - - - - Total 5.6 9.9 5.7 10.8 (1) Depreciation excludes amortisation of intangible assets arising on acquisitions of £2.3m (2009: £2.4m) but incl
Slide 37: Net Debt Exchange Variations
NET DEBT EXCHANGE VARIATIONS By Currency Total $ € Other £m £m £m £m June 2010 Exchange on opening net debt (5.9) (6.2) 0.2 0.1 Exchange on movements in the year (0.1) (0.1) - - Total exchange variation in net debt (6.0) (6.3) 0.2 0.1 June 2009 Exchange on opening net debt 15.8 15.7 0.2 (0.1) Exchan
Slide 38: Usage of Credit Facilities – June 2010
USAGE OF CREDIT FACILITIES – June 2010 Headroom of £128m on committed facilities Usage by Currency Facility Usage £ $ € Other £m £m Private placements: US $ 20.0m (Oct 2020) 13.2 13.2 - 13.2 - - US $ 75.0m (Oct 2018) 49.3 49.3 - 49.3 - - US $ 30.0m (Jan 2017) 19.7 19.7 - 19.7 - - US $ 25.0m (Oct 201
Slide 39: Maturity Profile of Credit Facilities
MATURITY PROFILE OF CREDIT FACILITIES £m 220 Aug £128m headroom 200 180 July 160 140 120 Oct 100 Oct Net debt Jun 10 - £87m 80 Jan 60 40 Oct 20 Oct 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Committed facilities: Fixed rate Floating rate Interim Results 2010 Page 31
Slide 40: Covenants
COVENANTS Dec 2008 June 2009 Dec 2009 June 2010 Net Debt £174.5m £127.4m £102.3m £87.4m Net interest (1) £6.8m £3.2m £7.2m £4.1m EBITDA (1) £37.5m £46.5m £81.7m £76.0m EBITDA - rolling 12 months £77.8m £85.0m Interest cover (to exceed 3.5 times) 12.0 x 11.7 x 10.6 x 11.3 x Net Debt to EBITDA (not to
Slide 41: Pensions – Deficit Movement
PENSIONS – DEFICIT MOVEMENT 6 Months 2010 2009 UK USA Various Total Total Funded Funded Unfunded £m £m £m £m £m IAS19 Scheme deficit at 31 Dec 2009 (39.6) (3.8) (4.7) (48.1) (51.2) Service cost (0.4) (0.2) (0.1) (0.7) (1.7) Total employer cash contributions 5.6 0.3 0.1 6.0 21.3 Interest cost of liab
Slide 42: Pensions – UK Plan Funding
PENSIONS – UK PLAN FUNDING Actuarial Valuations Last valuation 6 April 2007 (6 April 2010 valuation ongoing) Scheme assets/(liabilities) at valuation £143.0m / (£178.9m) Funding level 80% IAS 19 Valuations June 2010 Dec 2009 Dec 2008 £m £m £m Scheme Assets Equities 49.3 62.5 49.5 Active currency - -
Slide 43: Aerospace – Operations
AEROSPACE – OPERATIONS Operation Location Senior Aerospace AMT Seattle, USA Senior Aerospace SSP Los Angeles, USA Senior Aerospace Ketema San Diego & Mexico Senior Aerospace Jet Products San Diego, USA Senior Aerospace Metal Bellows Boston, USA Senior Aerospace Sterling Machine Enfield, CT, USA Seni
Slide 44: Aerospace – Orders and Deliveries
AEROSPACE – ORDERS AND DELIVERIES Large Deliveries Net Orders Order Book Commercial Aircraft H1 H1 June Dec Dec Dec 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 Boeing 222 481 375 441 151 142 662 1,413 3,304 3,375 3,714 3,427 Airbus 250 498 483 453 117 271 777 1,341 3,355 3,488 3,715
Slide 45: Aerospace – Products
AEROSPACE – PRODUCTS 25% of Senior Aerospace sales are in 22% of Senior Aerospace sales are in engine structures and mounting systems metallic ducting systems Intermediate engine cases Environmental conditioning system feed duct Engine mounting ring Bleed duct gimbal Jet engine impingement Auxiliary
Slide 46: Aerospace – Products
AEROSPACE – PRODUCTS 20% of Senior Aerospace sales are 6% of Senior Aerospace sales are in airframe and other structural parts composite ducting systems Air distribution ducting Wing ribs Higher value added Fuselage ducting and assemblies insulation Sundry structural parts such as for Auxiliary powe
Slide 47: Aerospace – Products
AEROSPACE – PRODUCTS 9% of Senior Aerospace sales are in 4% of Senior Aerospace sales are in fluid helicopter machined parts control systems Titanium spindle Hydraulic distribution pitch control shaft system Titanium carrier – Active clearance control planetary assembly system main gearbox Hydraulic
Slide 48: Aerospace – Products
AEROSPACE – PRODUCTS 14% of Senior Aerospace sales are to non- aerospace markets Medical Control bellows for medical drug dispenser implant Power Generation Exhaust collector for land turbine Semi-conductor PRIME MOVER actuators for semi-conductor wafer production Interim Results 2010 Page 36/4
Slide 49: Aerospace – Customers
AEROSPACE – CUSTOMERS Sales as % of total Customer H1 2010 H1 2009 UTC 12 10 Boeing 12 11 Spirit 7 5 Rolls-Royce 6 5 GKN 5 4 Goodrich 5 6 Airbus + EADS 5 5 Bombardier 5 7 GE 3 4 General Dynamics 2 2 Honeywell 2 3 Lockheed Martin 2 2 Triumph 2 2 Lam Research 2 - Safran Group 2 2 Caterpillar (Solar Tu
Slide 50: Flexonics – Operations
FLEXONICS – OPERATIONS Operation Location Senior Flexonics Bartlett Chicago, USA Senior Flexonics Pathway San Antonio, USA Senior Flexonics Kassel Germany Senior Automotive Blois France Senior Flexonics Cape Town South Africa Senior Flexonics Sao Paulo Brazil Senior Hargreaves Bury, UK Senior Flexon
Slide 51: Flexonics – Products
FLEXONICS – PRODUCTS 24% of Senior Flexonics sales are of 16% of Senior Flexonics sales are of flexible mechanisms for exhaust systems cooling system, emission control and other automotive pipework Exhaust gas recirculation Flexible exhaust connector cooler Picture 16 Flexible exhaust connector Turb
Slide 52: Flexonics – Products
FLEXONICS – PRODUCTS 14% of Senior Flexonics sales are of fuel 14% of Senior Flexonics sales are HVAC system distribution pipework and ducting and expansion joints for the subsystems construction industry and solar applications Nuclear – waste handling, High-pressure diesel decommissioning, and tube
Slide 53: Flexonics – Products
FLEXONICS – PRODUCTS 12% of Senior Flexonics sales are expansion joints, control bellows and hoses for the power and boiler market, 10% for the oil and gas and chemical processing industries and 10% for other industrial markets Metal expansion joints Fabric expansion joints On-site services Connecto
Slide 54: Flexonics – Customers
FLEXONICS – CUSTOMERS Sales as % of total End Customer H1 2010 H1 2009 PSA 10 8 Ford 8 6 Cummins (Heavy duty diesel) 8 9 General Motors 6 5 Renault 4 3 Schott (Industrial) 3 2 CTEP (Industrial) 2 - Fiat 2 3 Freightliner (Daimler) (Heavy duty diesel) 2 2 Caterpillar (Heavy duty diesel) 2 2 Volkswagen
Slide 55: Index
INDEX Presentation Appendices Financial highlights 1 Group evolution 20 Aerospace results - constant exchange rates 2 Exchange rates 21 Flexonics results - constant exchange rates 3 Division results - as reported 22 Division results - constant exchange rates 4 Geographic results - as reported 23 Geo