Imi Plc · LSE:IMI
Imi — Investor Day (September 2021)
52 slides from Imi's investor day presentation, September 2021
Slide 1: Accelerating business performance
IMI plc Accelerating business performance Roy Twite, Daniel Shook & IMI team September 2021 “IMI is generating strong, much improved returns and I’m increasingly confident of delivering our key objective – sustainable, profitable growth” Roy Twite For information on our Cautionary Statement, please
Slide 2: Agenda
IMI plc Agenda ▪ June recap ▪ IMI Precision Engineering Coffee break ▪ IMI Hydronic Engineering ▪ Improving returns ▪ Summary & closing remarks Q&A 2
Slide 3: The Executive team
IMI plc The Executive team Roy Twite Beth Ferreira Jackie Hu Phil Clifton Group Chief Divisional Managing Divisional Managing Divisional Managing Executive Director, IMI Precision Director, IMI Critical Director, IMI Hydronic Engineering Engineering Engineering Daniel Shook Liz Rose Louise Waldek Gr
Slide 4: Business model
IMI plc Business model ▪ Customer first ▪ Reduce complexity ▪ Market-led innovation 4
Slide 5: Growth Hub
IMI plc Growth Hub Foresight Teams constantly scanning for IMI Growth Advisory Board emerging trends and opportunities Gate 1 Gate 2 Gate 3 Gate 4 ▪ Expertise drawn Phase 1 Phase 2 Phase 3 Phase 4 from across the Problem Test & learn Develop Scale Identification & Assess Group – and externally Find
Slide 6: Group Growth Hub pipeline
IMI plc Group Growth Hub pipeline Phase 1 Phase 2 Phase 3 Phase 4 Problem Test & learn Develop Scale Identification & Assess ▪ Key contributor to growth ambitions ▪ Continued shift toward high growth and sustainable markets ▪ High value add solutions to acute customer problems ▪ 34 patents filed in
Slide 7: Recap: IMI Critical Engineering highlights
IMI plc Recap: IMI Critical Engineering highlights Ambition for 3% to 5% growth at 20% margin ▪ A focus on Aftermarket ▪ Growth opportunities include Marine, Pharma and Hydrogen ▪ New Construction headwinds diminishing 7
Slide 8: IMI Precision and IMI Hydronic highlights
IMI plc IMI Precision and IMI Hydronic highlights 1. Ambitious management team focused on customers and Purpose 2. Attractive end markets with positive growth outlook 3. Excellent applications expertise 4. Investing in growth 5. Strong digital agenda underpinning growth 6. Simplification strategies
Slide 9: Value today. Value tomorrow. IMI Precision Engineering
IMI plc Value today. Value tomorrow. IMI Precision Engineering Beth Ferreira & Team
Slide 10: Our Executive team
IMI Precision Engineering Confidential Our Executive team Beth Ferreira Dibyava Ghosh Martin Maas Chris Prince Jonathan Yuk Divisional Managing Managing Director Managing Director Managing Director Managing Director Director Global Industrial Automation Global Precision Fluid OEM Global Transportati
Slide 11: Our Executive team
IMI Precision Engineering Confidential Our Executive team Beth Ferreira Dibyava Ghosh Martin Maas Chris Prince Jonathan Yuk Divisional Managing Managing Director Managing Director Managing Director Managing Director Director Global Industrial Automation Global Precision Fluid OEM Global Transportati
Slide 12: IMI Precision Engineering overview
IMI Precision Engineering Confidential IMI Precision Engineering overview Specialists in motion and fluid control solutions where precision, reliability and speed are essential £877m EMEA Americas APAC (2020 revenue) 45% 37% 18% Transportation, 20% 12
Slide 13: What has changed
IMI Precision Engineering Confidential What has changed ▪ Purpose-led culture and growth mindset ▪ Customer First programme launched to align to our markets and invest for growth ▪ Optimising footprint to better serve our customers and improve profitability ▪ Market-led innovation through transforma
Slide 14: Transforming to a growing business…
IMI Precision Engineering Confidential Transforming to a growing business… Strong Foundation Optimising for our Customers Better World Growth 20% OP Margin through cycle Growth Hub unlocking adjacent markets 16.2% 17.5% 5%+ CAGR Customer First realignment OP Margin* OP Margin potential and investmen
Slide 15: ...with margin delivery through complexity reduction and growth
IMI Precision Engineering Confidential ...with margin delivery through complexity reduction and growth Strong Foundation Optimising for our Customers Better World Growth £36m future c.22% restructuring top of cycle benefit Growth c.18% bottom of cycle 16.2% 17.5% Customer OP Margin First SG&A Margin
Slide 16: Building on our strong foundation
IMI Precision Engineering Confidential Building on our strong foundation Strong Foundation Optimising for our Customers Better World Growth Deep applications knowledge and engineering expertise Strong product portfolio and market reputation Attractive end markets that support growth 16
Slide 17: Simplifying the business and preparing for growth
IMI Precision Engineering Confidential Simplifying the business and preparing for growth Strong Foundation Optimising for our Customers Better World Growth 1 Customer First Programme Simplify Remove Consolidate Reinvest for management complexity and automate growth structure 2 Fit for Growth Footpri
Slide 18: Aligning the organisation around our Customers
IMI Precision Engineering Confidential Aligning the organisation around our Customers Strong Foundation Optimising for our Customers Better World Growth APAC Global Global Global Industrial Precision Transportation Automation Fluid OEM Americas EMEA Factory Automation Commercial Life Sciences Vehicl
Slide 19: Investing for growth
IMI Precision Engineering Confidential Investing for growth Strong Foundation Optimising for our Customers Better World Growth Growth Hub Digital Sales Effectiveness Product Management 19
Slide 20: Growth Hub pipeline September 2020
IMI Precision Engineering Confidential IMI Precision Growth Hub pipeline September 2020 Strong Foundation Optimising for our Customers Better World Growth FORESIGHT Scan across sectors for IMI Growth Advisory Board opportunities in attractive markets Gate 1 Gate 2 Gate 3 Gate 4 Phase 1 Phase 2 Phase
Slide 21: Growth Hub pipeline today
IMI Precision Engineering Confidential IMI Precision Growth Hub pipeline today Strong Foundation Optimising for our Customers Better World Growth FORESIGHT Scan across sectors for IMI Growth Advisory Board opportunities in attractive markets Gate 1 Gate 2 Gate 3 Gate 4 Phase 1 Phase 2 Phase 3 Phase
Slide 22: Growth Hub pipeline today
IMI Precision Engineering Confidential IMI Precision Growth Hub pipeline today Strong Foundation Optimising for our Customers Better World Growth FORESIGHT Scan across sectors for IMI Growth Advisory Board opportunities in attractive markets Gate 1 Gate 2 Gate 3 Gate 4 ▪ Fuller and higher quality Ph
Slide 23: Key growth markets aligned with our purpose
IMI Precision Engineering Confidential Key growth markets aligned with our purpose Strong Foundation Optimising for our Customers Better World Growth H2 Automation Transportation Life Sciences Hydrogen Warehouse and factory Solutions that help Truck Flow control components for Flow control solutions
Slide 24: Automation
IMI Precision Engineering Confidential Automation Strong Foundation Optimising for our Customers Better World Growth Adjacent market opportunities in Industrial Automation ▪ Traditional Workholding market ripe for disruption ▪ Robotics End of Arm Tooling market growing at 9%+ CAGR Why we win ▪ Deep
Slide 25: Adaptix™ case study
IMI Precision Engineering Confidential Adaptix™ case study Strong Foundation Optimising for our Customers Better World Growth The industry problem ▪ Customisation demanded by end users creates changeover inefficiencies ▪ Absence of flexible work-holding options in CNC machining The solution ▪ Patent
Slide 26: Transportation
IMI Precision Engineering Confidential Transportation Strong Foundation Optimising for our Customers Better World Growth Market opportunity in Transportation ▪ Number of vehicles continues to grow in line with global GDP ▪ Transition away from fossil fuels presents opportunity for innovation Why we
Slide 27: Life Sciences
IMI Precision Engineering Confidential Life Sciences Strong Foundation Optimising for our Customers Better World Growth Market opportunity in Life Sciences ▪ Strong established position and leader in precision fluid control ▪ Future growth opportunities in Biotechnology, Diagnostics and Analytical s
Slide 28: Life Sciences
IMI Precision Engineering Confidential Life Sciences Strong Foundation Optimising for our Customers Better World Growth Market opportunity in Life Sciences ▪ Strong established position and leader in precision fluid control ▪ Future growth opportunities in Biotechnology, Diagnostics and Analytical s
Slide 29: Hydrogen
IMI Precision Engineering Confidential Hydrogen Strong Foundation Optimising for our Customers Better World Growth Global market opportunity in Hydrogen ▪ Hydrogen up to 20% of energy mix by 2050 ▪ Requires over $11 trillion of investment ▪ EU committed to 400x increase in capacity by 2030 Why we wi
Slide 30: Summary – IMI Precision Engineering
IMI Precision Engineering Confidential Summary – IMI Precision Engineering Strong Foundation Optimising for our Customers Better World Growth ▪ Solid positions in growing markets ▪ Simplifying the business ▪ Identifying and solving acute customer problems ▪ Well known brands and reputation for ▪ Res
Slide 31: Coffee Break
IMI Coffee Break
Slide 32: Value today. Value tomorrow. IMI Hydronic Engineering
IMI plc Value today. Value tomorrow. IMI Hydronic Engineering Phil Clifton & Team
Slide 33: IMI Hydronic Executive team
IMI Hydronic Engineering Confidential IMI Hydronic Executive team Phil Clifton Peter Agneborn Amy Cole Assane N’Diaye Enrico Milanesi Divisional Managing Director Sales & Marketing Director President North America Operations & Supply Chain Director R&D and Purchasing Director Alex Hunt Jaime Ferreir
Slide 34: IMI Hydronic Engineering overview
IMI Hydronic Engineering Confidential IMI Hydronic Engineering overview ▪ Premium supplier of products & solutions for hydronic heating and cooling systems £305m Europe Americas APAC across residential & commercial sectors (2020 Revenue) 88% 7% 5% ▪ Provide energy efficiency, ease of installation an
Slide 35: What has changed
IMI Hydronic Engineering Confidential What has changed Environmental drivers Growth Hub Digital Complexity reduction ▪ Culture and mindset, the whole company embracing our values and our purpose ▪ Market-led innovation pipeline through transformational Growth Hub ▪ Environmental and structural tailw
Slide 36: Ambition to deliver sustainable 5%+ growth at 20%+ margins
IMI Hydronic Engineering Confidential Ambition to deliver sustainable 5%+ growth at 20%+ margins Environmental drivers Growth Hub Digital Complexity reduction Overall growth potential Sales Sales 5%+ >20% OP Margin £306m* £331m* ▪ Legislation and Margin 10%+ incentives support 15.9% OP Margin +380 b
Slide 37: Environmental drivers
IMI Hydronic Engineering Confidential Environmental drivers Environmental drivers Growth Hub Digital Complexity reduction A more sustainable, de-carbonised world starts with buildings 35% of resources used, 40% of energy usage, 40% of carbon emissions 80% of the buildings of 2050 are here today Addr
Slide 38: Accelerating Growth
IMI Hydronic Engineering Confidential Accelerating Growth Value today Environmental drivers Growth Hub Digital Complexity reduction ▪ Keeping the customer at the core ▪ Continue to shift our business into higher growth markets where we can win (Organic/M&A): ▪ Leveraging our expertise of the hydroni
Slide 39: IMI Hydronic Growth Hub September 2020
IMI Hydronic Engineering Confidential IMI Hydronic Growth Hub September 2020 Value tomorrow Environmental drivers Growth Hub Digital Complexity reduction Foresight teams across sectors scanning for opportunities in IMI Growth Advisory Board attractive markets Gate 1 Gate 2 Gate 3 Gate 4 Phase 1 Phas
Slide 40: IMI Hydronic Growth Hub today
IMI Hydronic Engineering Confidential IMI Hydronic Growth Hub today Value tomorrow Environmental drivers Growth Hub Digital Complexity reduction Foresight teams across sectors scanning for opportunities in IMI Growth Advisory Board attractive markets Growth Hub Gate 1 Gate 2 Gate 3 Gate 4 ▪ Improved
Slide 41: HyInsight case study
IMI Hydronic Engineering Confidential HyInsight case study Value tomorrow Environmental drivers Growth Hub Digital Complexity reduction The industry problem Web-based ▪ Lack of transparency on how buildings operate results in tenant discomfort, energy inefficiencies and unexpected system downtimes p
Slide 42: Digital as an enabler
IMI Hydronic Engineering Confidential Digital as an enabler Value tomorrow Environmental drivers Growth Hub Digital Complexity reduction Our vision “Bring Digital Innovation to our customers & employees, solving their problems anytime, anywhere whilst creating tremendous value and protecting our pla
Slide 43: Complexity reduction
IMI Hydronic Engineering Confidential Complexity reduction Value tomorrow Environmental drivers Growth Hub Digital Complexity reduction Manufacturing & Supply Chain Simplification Improved Simplify and Efficiency Service Improve Savings flexibility Benefits delivered: for Customers ▪ Improved delive
Slide 44: Summary – IMI Hydronic Engineering
IMI Hydronic Engineering Confidential Summary – IMI Hydronic Engineering Environmental drivers Growth Hub Digital Complexity reduction ▪ Structural and legislative ▪ Group-wide cultural ▪ Digital a key innovation ▪ Simplification projects tailwinds supporting the change and growth driver for our bus
Slide 45: Improving returns
IMI plc Improving returns Daniel Shook 45
Slide 46: Key messages – 2021 first half results
IMI plc Key messages – 2021 first half results ▪ 8% organic sales growth, 24% profit growth ▪ Return on sales improved by 170 bps ▪ Increased revenue, profits and margins across all three divisions ▪ Growth Hub and sprint teams delivering early orders and sales ▪ £101m delivered to shareholders via
Slide 47: Sustainable margin targets
IMI plc Sustainable margin targets Target: 20% through the cycle Target: 20% Target: 20%+ 2020 margin: 17.3% 2020 margin: 16.6% 2020 margin: 18.3% ▪ £39 million of restructuring ▪ £18 million of restructuring ▪ £4m of restructuring benefits to benefits to deliver post-2020 benefits to deliver post-2
Slide 48: Clear plans driving improved Group performance
IMI plc Clear plans driving improved Group performance Ambition: 5%+ CAGR 3-5% CAGR 5%+ CAGR Attractive, growing core markets Expanding the Aftermarket opportunity Higher growth from Green initiatives Organic Leveraging our brands and expertise Leveraging our brands and expertise Leverag
Slide 49: Closing remarks
IMI plc Closing remarks Roy Twite 49
Slide 50: Key take-aways
IMI plc Key take-aways ▪ Strategy ▪ Customer First ▪ Reduce complexity ▪ Market-led innovation ▪ Culture ▪ Purpose driven, sharpened customer focus and innovation ▪ Ambition ▪ Sustainable, profitable growth ▪ Improving returns, to 18% - 20% Group margin 50
Slide 51: Cautionary statement
IMI plc Cautionary statement By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to be bound by the limitations and conditions set out in this Cautionary statement. This presentation is for your information only and contains fo
Slide 52: Q&A
IMI Q&A