Weir Group PLC · LSE:WEIR
Weir — The Weir Group — H1 2005 Earnings Presentation
27 slides from Weir's earnings presentation, Aug 18, 2005
Slide 1: 2005 Interim Results
Excellent The Weir Group PLC Analysts Presentation Engineering London, 18 August 2005 Solutions 2005 Interim Results
Slide 2: Agenda
The Weir Group PLC Excellent Engineering Solutions Agenda Introduction & Financial Highlights Sir Robert Smith Financial review Chris Rickard Input and Operational review Mark Selway Outlook Mark Selway Questions and Answers All 2
Slide 3: Interim Financial Highlights 2005
The Weir Group PLC Excellent Engineering Solutions Interim Financial Highlights 2005 Group Results H1 2005 - Continuing Operations (3) 2005 Variance Consolidated £m % Order Input (2) 445.0m Up 10.1% Revenue 354.1m Up 9.7% Profits from Operations (1) 25.9m Up 3.9% Pre-tax profit (1) 24.4m Up 1.5% Ear
Slide 4: 2005 Interim Results
Excellent The Weir Group PLC Analysts Presentation Engineering London, 18 August 2005 Solutions 2005 Interim Results
Slide 5: Consolidated Profit and Loss
The Weir Group PLC Excellent Engineering Solutions Consolidated Profit and Loss £m First Half First Half 2005 2004 Revenue – Continuing Operations 354.1 322.7 Group Operations 22.5 22.3 JVs / Associates 3.4 2.7 Profit from Continuing Operations 25.9 25.0 Restructuring Costs (18.0) - Operating Profit
Slide 6: Discontinued Operations Profit and Loss
The Weir Group PLC Excellent Engineering Solutions Discontinued Operations Profit and Loss First Half 2005 First Half 2004 £m £m Discontinued Discontinued Revenue 34.2 15.2 Operating Loss (0.8) (1.1) Net Interest & Other Income (0.1) 0.1 Loss before tax (0.9) (1.0) Tax (0.1) 0.2 Loss after tax (1.0)
Slide 7: Divisional Split
The Weir Group PLC Excellent Engineering Solutions Divisional Split Revenue Operating Profit (1) (2) (2) Continuing Operations H1 H1 H1 H1 2005 2004 2005 2004 £m £m £m £m Engineering Products 231.2 204.7 16.1 13.7 Engineering Services 91.9 95.8 6.0 9.8 Defence, Nuclear & Gas 31.0 26.1 3.1 1.7 Centra
Slide 8: Reconciliation of Tax Rate
The Weir Group PLC Excellent Engineering Solutions Reconciliation of Tax Rate June June 2005 2004 Profit before tax 6.4 24.0 Adjustments Restructuring costs 18.0 - JV and associate tax 1.3 1.1 Discontinued loss before tax (0.9) (1.0) Adjusted profit before tax 24.8 24.1 Tax 5.0 4.9 Adjustments JV an
Slide 9: Cash Flow
The Weir Group PLC Excellent Engineering Solutions Cash Flow H1 2005 H1 2004 £m £m Operating profit - continuing operations 22.5 22.3 Operating loss - discontinued operations (0.8) (1.1) Depreciation 8.2 7.5 Working capital (17.7) (12.7) Other 1.9 0.8 Cash generated by operations 14.1 16.8 Exception
Slide 10: Cash Flow
The Weir Group PLC Excellent Engineering Solutions Cash Flow H1 2005 H1 2004 £m £m Net Cash generated from Operations (0.6) 0.2 Net Interest (1.9) (1.9) Net Dividends paid (19.3) (17.3) Net Purchase of property, plant & equipment and intangibles (10.3) (9.9) Acquisitions / Disposals 0.9 (0.1) Purcha
Slide 11: Balance Sheet
The Weir Group PLC Excellent Engineering Solutions Balance Sheet H1 2005 Dec 2004 £m £m Net Tangible Assets 254.4 237.0 Goodwill 109.7 111.0 Gross Pension Deficit (93.9) (95.3) Net (Debt) / Funds (26.3) 12.6 Net Assets 243.9 265.3 Share Capital & Reserves 243.9 265.3
Slide 12: Exchange rates
The Weir Group PLC Excellent Engineering Solutions Exchange rates H1 2005 H1 2004 average rate average rate Movement Currency USD 1.86 1.82 +2.4% AUD 2.42 2.48 -2.5% EUR 1.47 1.49 -1.6%
Slide 13: Re-Organisation 2005
The Weir Group PLC Excellent Engineering Solutions Re-Organisation 2005 H1 2005 H1 2004 1. Trading Performance £m £m Turnover 39.1 47.9 Operating Loss (8.1) (4.8) 2. Restructuring Costs £m £m P&L Charge 18.0 - Cash Utilisation 8.2 - Non Cash Costs 3.8 - Provision remaining 6.0 - Employee Nos Employe
Slide 14: 2005 Interim Results
Excellent The Weir Group PLC Analysts Presentation Engineering London, 18 August 2005 Solutions 2005 Interim Results
Slide 15: Order Input by Division - Continuing Operations
The Weir Group PLC Excellent Engineering Solutions Order Input by Division - Continuing Operations (1) Consolidated H1 2005 H1 2004 Variance £m £m % Engineering Products 267.7 242.1 +10.6% Engineering Services 99.4 105.6 -5.8% Defence, Nuclear & Gas 77.9 56.6 +37.5% Total 445.0 404.3 +10.1% Engineer
Slide 16: Order input by geographic location
The Weir Group PLC Excellent Engineering Solutions Order input by geographic location (1) (Continuing Operations) H1 2005 H1 2004 Variance £m £m % Americas 144.8 129.9 +11.5% United Kingdom 70.2 82.0 -14.4% Europe & FSU 37.6 43.1 -12.7% Middle East / Africa 59.4 39.4 +50.4% Indo Pacific 86.4 74.1 +1
Slide 17: Order input by sector
The Weir Group PLC Excellent Engineering Solutions Order input by sector (1) (Continuing operations) H1 H1 Variance 2005 First Half 2005 2004 % Input £m £m Naval & marine General General industrial 72.3 75.7 -4.5% 16% industrial Water & 17% Minerals processing 128.0 106.3 +20.4% waste water 7% Oil &
Slide 18: Engineering Products Division
The Weir Group PLC Excellent Engineering Solutions Engineering Products Division Engineering Engineering Products Products Input Input by by Sector Sector Shared Shared Systems Systems Project Omega Consolidated H1 2005 H1 2004 Variance Water £m £m % Power Minerals PROJECT DEFINITION RATING INDEX WE
Slide 19: Weir Engineering Products Division Minerals - H1 2005 performance
The Weir Group PLC Excellent ORDER INPUT Engineering Solutions Weir Engineering Products Division £162.2m Minerals - H1 2005 performance Up 26.6% Sector Sector Summary Summary Geographic Geographic Summary Summary Other New Products Power Australia £8.2m Minerals £30.9m Indo Pacific £20.5m £111.6m M
Slide 20: Weir Engineering Products Division Clear Liquid - H1 2005 performance
The Weir Group PLC Excellent ORDER INPUT Engineering Solutions Weir Engineering Products Division £77.1m Clear Liquid - H1 2005 performance Down 6.2% Sector Sector Summary Summary Geographic Geographic Summary Summary Weir Pumps, Cathcart Minerals General Indo Pacific Europe, £8.5m Industrial £9.9m
Slide 21: Valves & Controls - H1 2005 performance
The Weir Group PLC Excellent ORDER INPUT Engineering Solutions Weir Engineering Products Division £28.4m Valves & Controls - H1 2005 performance Down 10.4% Sector Sector Summary Summary Geographic Geographic Summary Summary P R O J E C T D E F IN IT IO N R A T IN G IN D E X W E IR V A L V E S & C O
Slide 22: Weir Engineering Services Division
The Weir Group PLC Excellent ORDER INPUT Engineering Solutions Weir Engineering Services Division £99.4m H1 2005 performance Down 5.8% Sector Sector Summary Summary Geographic Geographic Summary Summary Weir in the Middle East Water General Other Americas £9.5m Industrial £3.5m £46.0m Power £40.1m D
Slide 23: Weir Defence, Nuclear & Gas Division
The Weir Group PLC Excellent ORDER INPUT Engineering Solutions Weir Defence, Nuclear & Gas Division £77.9m H1 2005 performance Up 37.5% Sector Sector Summary Summary Geographic Geographic Summary Summary Disposal UK, Africa & Naval & Disposalofof Mideast Marine water watertreatment treatment compani
Slide 24: H1 2005 Weir Group Scorecard
The Weir Group PLC Excellent Engineering Solutions H1 2005 Weir Group Scorecard 9 Improvement in input, revenue & profits 9 Restructuring of UK operations: Clear & Valves INPUT INPUT up up 10.1% 10.1% REVENUE REVENUE up up 9.7% 9.7% PROFITS PROFITS up up 3.9% 3.9% 9 Disposal of Techna water treatmen
Slide 25: Market share
The Weir Group PLC Excellent Engineering Solutions Pompe Gabbioneta SpA Historic Historic Sales Sales Sales Sales by by Geography Geography Market Market Share Share Market Size (USD) $592m $603m $425m $1620m 35 Eastern 100% 30 Europe America 90% 25 Italy 6% 2% 80% Weir Market share 20 Middle East 7
Slide 26: Outlook
The Weir Group PLC Excellent Engineering Solutions Outlook Engineering Products Division: Minerals – good momentum in mining markets, lower spares will reduce margins but net profits will grow. Clear – improved second half on marginally lower revenue. Progress in niche businesses and improved re
Slide 27: 2005 Interim Results
Excellent The Weir Group PLC Analysts Presentation Engineering London, 18 August 2005 Solutions 2005 Interim Results