Spirax Group Plc. · LSE:SPX
Spirax — Shareholder Meeting (May 2023)
24 slides from Spirax's shareholder meeting presentation, May 2023
Slide 1: Annual General Meeting 2023: Engineering our difference
Annual General Meeting 2023 Engineering our difference Annual General Meeting 2023 Engineering our difference… Nicholas Anderson Group Chief Executive Group 1
Slide 2: Group structure 2022
Annual General Meeting 2023 Group structure 2022 Three world-leading niche businesses Group Pro-forma Revenue 28% Thermal Energy Management £1,734m 22% 50% industrial and commercial steam electrical process heating and niche peristaltic pumps and systems temperature management associated fluid path
Slide 3: Our Group in numbers
Our Group in numbers 10,400+ 2,100+ 146 People Sales and service engineers Operating Units 165 1,700+ 110,000 Countries served Core product lines Direct buying customers Group 3
Slide 4: What makes us ONE Group?
Annual General Meeting 2023 What makes us ONE Group? Our Group is greater than the sum of the parts Our Purpose is to create sustainable value for all our stakeholders as we engineer a more efficient, safer and sustainable world. Group 4
Slide 5: We share common values, business model, strategic framework
Annual General Meeting 2023 We share common… Values Business Model Strategic Framework Competition based upon system economics: Complementor lock-in, competitor lock-out, Proprietary Standard SYSTEM LOCK-IN Dominant Exchange Proprietary Standard Exclusive Channel Customer Horizontal Bonding Low Cost
Slide 6: Business model: direct sales, low ticket, critical items
Annual General Meeting 2023 Business model: direct sales, low ticket, critical items Sales by value driver* 85% Maintenance and repair sales that maintain existing systems, supported by the end users’ opex of Group revenue is driven by budgets, with a typical invoice value customer’s maintenance and
Slide 7: 20 years of compounding sales growth
Annual General Meeting 2023 20 years of compounding sales growth Group 7
Slide 8: Outperforming Industrial Production growth
Annual General Meeting 2023 Outperforming Industrial Production growth 2009 2020 Group 8
Slide 9: Profit growth and strong margin expansion
Annual General Meeting 2023 Profit growth and strong margin expansion Group 9
Slide 10: Steady annual growth in Ordinary Dividends
Annual General Meeting 2023 Steady annual growth in Ordinary Dividends Group 10
Slide 11: In 2022 we created value through three acquisitions
Annual General Meeting 2023 In 2022 we created value through Three important acquisitions to underpin next decade of growth Group 11
Slide 12: Spotlight on ETS acquisitions
Annual General Meeting 2023 Spotlight on ETS acquisitions Vulcanic and Durex Industries contributions to our Group • Expands ETS 2022 pro-forma sales by over 70%; ETS now 22% of Group • Increases ETS 2022 addressable market by 5% to £3.9bn • Expands ETS 2022 pro-forma market share from 6% to 10% Lea
Slide 13: In 2022 we launched TargetZero
Annual General Meeting 2023 In 2022 we launched TargetZero New solutions to decarbonise critical industrial processes SteamVolt SteamBattery LV & MV First Fit Boiler Solution Thermal storage capable of generating OEM Boiler electric heat and control technology steam from renewable / off peak electri
Slide 14: Drivers of decarbonisation opportunities
Annual General Meeting 2023 Drivers of decarbonisation opportunities • Governments/legislation Drivers • Stakeholder sentiment CO2 Heat contributes 40% • Energy intensity of industrial processes of global CO2 emissions Only 5% of industrial heat generated from electricity Represents 50% Industry • I
Slide 15: Slide 15
Slide 16: Achievements so far
Annual General Meeting 2023 22,000+ colleague Achievements so far… volunteering hours 97 in 2022 biodiversity initiatives completed 41% reduction in Greenhouse gas emissions* £1 million donated to 51 projects by Group Education Fund with £15 million targeted by 2030 57% of electricity from green sou
Slide 17: Our plan for inclusive and equitable workplaces
Our plan for inclusive and equitable workplaces. Our ten Group Inclusion Commitments apply to everyone who works in our Group. They are our way of making a positive difference to the lives of all our colleagues around the world. Group 17
Slide 18: Focus on women in senior leadership
Annual General Meeting 2023 Focus on women in senior leadership Group Executive Committee and their direct reports Our ambition is to reach a minimum of 40% women in senior leadership roles by the end of December 2025 Group 18
Slide 19: Digital for Growth, Productivity, Sustainability
Annual General Meeting 2023 Digital for Growth, Productivity, Sustainability Group Digital Strategic Initiatives Supply Chain Enhanced Customer Efficiency Innovation and Agility Experience Enhanced Life Cycle Orchestrated Enterprise Customer Value Platform Group 19
Slide 20: Delivering for all stakeholders
Annual General Meeting 2023 Delivering for all stakeholders… …including our colleagues …delivering for customers …creating shareholder value …protecting the environment …building stronger …collaborating with suppliers communities Group 20
Slide 21: The next decade
Annual General Meeting 2023 The next decade One Group, three growth engines • Improving upon what we already do well: • Direct sales to enhance self-generated growth • Focused on faster growing industrial sectors • Pricing discipline to protect margins • Re-investment of operational efficiencies • L
Slide 22: Positioned for long-term sustainable growth
Annual General Meeting 2023 Positioned for long-term sustainable growth Group 22
Slide 23: Engineering our difference
Annual General Meeting 2023 Engineering our difference • Strong historic performance • Leading to a stronger, more balanced Group Engineering • Investing to create value for all stakeholders our difference… • Well positioned for the future • Focused on sustainable growth which delivers our Purpose G
Slide 24: Thank you
Thank you Questions Group 24