Renishaw Plc · LSE:RSW
Renishaw — H1 2022 Earnings Presentation
16 slides from Renishaw's earnings presentation, Feb 3, 2022
Slide 1: 2022 interim results
2022 interim results 3 February 2022
Slide 2: Financial summary
Financial summary • Revenue growth of 27% to £325.2m Key metrics • Record level of demand as key market sectors recover and 2022 H1 2021 H1 Change £m £m % semiconductor and electronics remain strong Revenue 325.2 255.1 27% • Strong growth in all regions, continuing the trend seen in 2021 H2 Adjusted
Slide 3: Manufacturing technologies and end market overview
Manufacturing technologies1 End market overview 2 Agriculture & construction Others Healthcare 2% 5% 3% Research Precision 3% manufacturing Power generation & 29% resource extraction 5% Aerospace 12% 2022 H1 2021 H1 Change £m £m % Automotive Revenue 308.7 236.9 30% 14% Electronics Adjusted operating
Slide 4: Analytical instruments and medical devices and end market overview
Analytical instruments and medical devices1 End market overview 2 Automotive Others 1% 10% Energy 5% Electronics 6% Research 52% 2022 H1 2021 H1 Change £m £m % Healthcare 26% Revenue 16.5 18.3 -10% Adjusted operating profit 1.6 2.3 -33% • Strong spectroscopy order intake in H1; revenue constrained b
Slide 5: Group revenue by region
Group revenue by region Strong growth in all regions as post-pandemic recovery takes hold: Half-year revenue £m 350 • APAC saw smallest pandemic impact and recovered first, now maintaining a solid growth trend, with 28% year-on-year growth 300 69.1 • Sustained encoders growth to semicon and electron
Slide 6: Financial highlights
Financial highlights Revenue £m 2022 H1 2021 H1 Change 700 611.5 £m £m % 574.0 565.6 600 510.2 Revenue 325.2 255.1 27% 500 332.0 277.3 400 310.5 250.8 300 Adjusted profit before tax 84.2 43.4 94% 200 296.7 325.2 279.5 259.4 255.1 100 FV gains / (losses) on ineffective FX cash (2.9) 20.5 0 flow hedgi
Slide 7: Income statement
Income statement Adjusted profit before tax bridge £m 2022 2021 H1 H1 % % Change £m £m Revenue 325.2 100 255.1 100 27% Cost of sales (115.5) (36) (90.8) (36) 27% Engineering (inc. R&D) (37.8) (12) (37.2) (15) 2% Gross profit 171.9 53 127.1 50 35% Distribution costs (55.8) (17) (54.3) (21) 3% Adminis
Slide 8: Sources and uses of cash & deposits (H1)
Sources and uses of cash & deposits (H1) £m Slide 8
Slide 9: Capital expenditure
Capital expenditure Capital expenditure £m • Additions totalled £12.2m in H1, including £3.7m on 60 56.8 our new distribution facility 55 in South Korea, providing 50 demonstration capability for our capital goods lines 45 25.4 38.7 40 • Planning to increase 34.9 Miskin 35 manufacturing expenditure
Slide 10: A sustainable future
A sustainable future • From 2015 to 2021 we reduced our GHG emissions (scopes 1, 2 and measured scope 3) by 39% • 80% of our global electricity use is from renewable sources, of which 11% is self-generated • Committed to a science-based Net Zero emissions target with an initial target date of 2050,
Slide 11: Responding to rising demand
Responding to rising demand Order book trends (unaudited) £m • Investing in increased manufacturing capacity 180 160 • Huge effort to ramp up supply and keep pace with demand 140 • During H1 we grew our manufacturing headcount by 10% 120 100 • Working closely with vendors to increase supply of criti
Slide 12: Commercial strategy highlights
Commercial strategy highlights Focused on strengthening our market position: • Capturing OEM business with ‘design wins’ for our latest products • Long adoption cycle (typically several years from design-in to ramped up production) but critical to long-term growth • Strong start with FORTiS™ enclose
Slide 13: Engineering and research
Engineering and research Engineering costs £m We continue to pursue our core strategy of organic growth through 100 89.8 87.3 innovative new products 90 77.4 80 72.0 • 70 42.1 Investing for long-term growth in attractive markets 60 38.3 41.2 34.8 50 • After focusing engineering efforts and reducing
Slide 14: People
People Workforce expansion by over 300 employees in H1: • Majority of recruitment to support manufacturing capacity expansion • Ongoing targeted growth in technical / professional headcount, including an increased intake of 127 graduates and apprentices • Headcount at Dec 31 was 4,975 We are also fo
Slide 15: Outlook
Outlook • Our markets are currently performing strongly, we expect H2 range demand from the semiconductor and electronics sectors 2022 H2 2022 H1 Change to remain strong, and that the recoveries in the machine £m £m % tool and co-ordinate measuring machine markets will Lower 325 0% Revenue 325 conti
Slide 16: Disclaimer
Disclaimer This document contains statements about Renishaw plc that are or may be forward-looking statements. These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Renishaw plc. They involve known and unknown risks, uncertainties a