Spirax Group Plc. · LSE:SPX
Spirax — Spirax-Sarco Engineering — Shareholder Meeting (May 2018)
12 slides from Spirax's shareholder meeting presentation, May 15, 2018
Slide 1: Annual General Meeting
Annual General Meeting Charlton House, Cheltenham 15th May 2018 Bill Whiteley Jamie Pike Clive Watson Trudy Schoolenberg Jane Kingston Peter France Nicholas Anderson Kevin Boyd Neil Daws Jay Whalen Engineering Opportunities 0 Annual General Meeting May 2018
Slide 2: 2017 Results
2017 Results Strong organic growth and two significant acquisitions 2017 2016 Reported Organic⁺ Revenue £998.7m £757.4m +32% +6% Operating profit* £235.5m £180.6m +30% +6% Operating profit margin* 23.6% 23.8% -20 bps +0 bps Pre-tax profit* £229.1m £177.9m +29% EPS* 220.5p 171.5p +29% DPS 87.5p 76.0p
Slide 3: Sales growth 2011-2017
Sales growth 2011-2017 32.0 Organic Acq'n/Disp Exchange Reported 28.0 24.0 20.0 Sales growth % 16.0 12.0 8.0 4.0 0.0 -4.0 -8.0 2011 2012 2013 2014 2015 2016 2017 Engineering Opportunities 2 Annual General Meeting May 2018
Slide 4: Engineering opportunities… through acquisitions
Engineering opportunities… through acquisitions Highly complementary to the Steam Specialties business • Leader in advanced industrial boiler • Market leading provider of electrical control systems; designs and produces solutions for industrial process heating valves and controls for steam and fluid
Slide 5: Expanding our addressable market
Expanding our addressable market Watson-Marlow Steam Specialties market share 19% market Watson-Marlow Steam Specialties market share market Niche pumps and 18% associated equipment market Niche pumps and associated Chromalox equipment market share 6% £1.3bn market £1.3bn £4.5bn New 2016 addressable
Slide 6: Broadening the platform for future organic growth
Broadening the platform for future organic growth 30% Sales 7% CAGR over the 10 £1,000 28% Sales from acquisitions, 2017 years to 2016; step up £900 Reported profit margin from acquisitions in 2017 Margin excluding acquisitions, 2017 26% £800 Margin increased from Sales £ millions 24% £700 Profit ma
Slide 7: Related acquisition
Related acquisition Chromalox: strong strategic fit with long-term potential Group acquisition strategy: Related acquisition: expands addressable market and accelerates 1. Create significant opportunities for growth shareholder value Direct sales business model 2. Increase our addressable Provide
Slide 8: Complementary technologies
Complementary technologies • Thermal Energy Management: electricity and steam have complementary uses • Choice between heating mediums driven by application needs or customer circumstances Engineering Opportunities 7 Annual General Meeting May 2018
Slide 9: Broad product range
Broad product range Product range includes: process heaters, air heaters, radiant heaters, tubular heaters, Pre-fabricated engineered packages for process cartridge heaters, power and temperature heating and temperature management controls, temperature sensors, thermostats and heat trace cables and
Slide 10: Direct sales business model
Direct sales business model Market diversity 1% 1% 1% 12% 17% 21% 2% 35% 33% 3% Routes to Customer 6% Revenue Routes to Opex/Capex by industry 16% market market spend 6% 2017 8% 79% 15% 32% 11% Opex budgets Direct: End Users & Contractors Direct: OEMs Capex budgets Distributors Average Invoice Value
Slide 11: Awards and achievements
Awards and achievements • Spirax-Sarco Engineering plc voted top of its sector (Engineering and Machinery) • Recognised as Britain’s 3rd Most Admired Company • Peer review by senior executives from 230 companies, in 24 sectors, and analysts from leading City investment firms • Criteria include: qual
Slide 12: Questions
Questions Steam Training Centre, Spirax Sarco China Engineering Opportunities 11 Annual General Meeting May 2018
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