Bodycote Plc · LSE:BOY

Bodycote — Investor Day (April 2019)

10 slides from Bodycote's investor day presentation, Apr 30, 2019

  1. Slide 1: Emerging Markets

    Emerging Markets Barış Telseren

  2. Slide 2: Agenda

    Agenda  Where we are  Markets served  Key success factors  Expansion strategy  Developing our business  Sales growth  Summary 2

  3. Slide 3: Emerging Markets: Where we are

    Emerging Markets Where we are 24% 46% Eastern Europe 30% Mexico Asia 23 plants in 7 countries – 9% of Group sales 3

  4. Slide 4: Market positioning

    Market positioning It’s NOT about low cost production Partnering with global tier-1 and tier-2 component manufacturers requiring services to Western quality standards 4

  5. Slide 5: Key success factors

    Key success factors  Partnership with Western customers  Long-term agreements (LTA), anchor customer  Global knowledge  Technology transfer  Bodycote management system  Quality accreditations Right: Rzeszow, Poland 5

  6. Slide 6: Expansion strategy

    Expansion strategy Hub & Spoke  Build a hub greenfield plant supported by an LTA  £5m invested in Eastern Europe equates to £15m invested in the UK *  Develop and prove process capability  Run initial production in hub  Build the business  Build new satellite plant  Move customers from hub to

  7. Slide 7: Developing our business

    Developing our business Turkey / Poland / Czech Republic China / Mexico Hungary / Romania  Well positioned  LTAs with OEMs  Different stage of development  Good profitability  High-value-added processes  Increased focus  Fill recently added capacities  Fill recently added capacities  Wester

  8. Slide 8: Sales growth

    Sales growth (£'000) 70,000 60,000 50,000 40,000 Greenfield Facilities 30,000 Existing Facilities 20,000 10,000 0 2014 2015 2016 2017 2018 Left: Prague, Czech Republic 8

  9. Slide 9: In summary…

    In summary… Today:  23 plants in 7 countries  Good profits  High growth Ahead:  Continue with our successful hub and spoke strategy  Many opportunities for Growth in Emerging Markets 9

  10. Slide 10: Capital Markets Day

    CAPITAL MARKETS DAY 201 J oO

Bodycote — Investor Day (April 2019) on 6ix