Senior Plc · LSE:SNR
Senior — Investor Day (October 2013)
76 slides from Senior's investor day presentation, Oct 23, 2013
Slide 1: Capital Markets Event
Capital Markets Event Capital Markets Event 23rd October 2013 1
Slide 2: Welcome, Q3 IMS and Introduction
Welcome, Q3 IMS and Introduction (Mark Rollins) Capital Markets Event 23rd October 2013 2
Slide 3: Agenda
Agenda 09.00 Welcome, Q3 IMS & introduction Mark Rollins 09.20 Weston history Richard Sutton 09.30 Weston EU overview Bob Brownridge 09.55 Thailand overview & video Richard Sutton 10.20 Factory tour – Structures & Aerofoils All 11.20 Coffee break All 11.40 Fluid Systems scene setting Mark Rollins 11
Slide 4: Q3 IMS
Q3 IMS Performance Q3 underlying trading satisfactory and in line with expectations ……but currency on translation an unexpected head wind £61m net debt at end Q3 – £10m reduction in year Aerospace YTD Boeing/Airbus deliveries up 9.5%. Orders 2.3x deliveries B787 production at 7 per month – going to
Slide 5: Purpose of Today's Event
Purpose of Today’s Event To provide a better understanding of what makes Senior tick: What a Senior acquisition & integration looks like; What a Senior factory looks like; The growing importance of Senior Aerospace Thailand; The Fluid Systems Division’s products, capabilities and facilities; The nat
Slide 6: What is Senior – a reminder
What is Senior – a reminder International manufacturing Group with 30 operations in 13 countries Market-leading engineering solutions provider for OEMs in the worldwide aerospace, defence, land vehicle and energy markets Operates through two reporting (three management) Divisions: Aerospace (Fluid S
Slide 7: Group Markets (H1 2013)
Group Markets (H1 2013) 3% Other Industrial (4%) 2% Heating, Ventilation & Solar (1%) 3% Petrochemical (3%) 7% Power & Energy (7%) 34% Large Commercial Aircraft (33%) 8% Passenger Vehicles (9%) 36% Flexonics (34%) 64% Aerospace (66%) 13% Truck & Off-Highway (10%) 6% Other Aerospace Division (6%) 15%
Slide 8: Senior's Locations
Senior’s Locations UK Rickmansworth H.O Massachusetts Metal Bellows Crumlin BWT (incl. Atlas) H1 2013 split Sales OP Canada Bird Bellows SF Canada N. America 66% 69% Weston EU UK 14% 17% Wisconsin GA Rest of Europe 13% 7% Germany Rest of World 7% 7% Washington SF GmbH AMT Czech Republic Absolute Fra
Slide 9: History of Weston
History of Weston Capital Markets Event 23rd October 2013 9
Slide 10: History of Weston
History of Weston Our company founder Richard Sutton Our workforce circa 1948 Capital Markets Event 23rd October 2013 10
Slide 11: History of Weston
History of Weston Capital Markets Event 23rd October 2013 11
Slide 12: History of Weston
History of Weston Geoffrey Sutton MBE MD 1959 to 1988, Our workforce thereafter Chairman circa 1959 until January 2007 Capital Markets Event 23rd October 2013 12
Slide 13: History of Weston
History of Weston Bugatti 35 The “West Eleven”. 1970 Capital Markets Event 23rd October 2013 13
Slide 14: History of Weston
History of Weston 80 Megabyte HDD 1990 The “Machinery Award” for most innovative design of manufacturing technology. 1996 Weston workforce - 1992 Capital Markets Event 23rd October 2013 14
Slide 15: History of Weston
History of Weston Weston Foulridge sites - 2000 Capital Markets Event 23rd October 2013 15
Slide 16: Weston EU Overview
Weston EU Overview (Bob Brownridge) Capital Markets Event 23rd October 2013 16
Slide 17: Senior Aerospace – Weston Introduction
Senior Aerospace – Weston Introduction Bob Brownridge, MD, SA Weston. •British Citizen, HQ and Operations in Earby Lancashire , England. •30 years of Business Development, Operational and Executive Leadership Experience in the Aerospace Sector: • SA Weston 18 years; Managing Director for 6 years • W
Slide 18: Senior Aerospace - Weston Background
Senior Aerospace - Weston Background • Founded in 1948. • Acquired by Senior in November 2011 • Completed relocation to current facilities in 2013, total floor space 100,000 sq./ft. • 2 Key Customers – Rolls-Royce and Spirit Aerosystems. • 10% of divisional revenues (3rd largest operation) • 337 emp
Slide 19: Weston Products and Applications
Senior Aerospace - Weston Products and Applications www.rolls-royce.com/interactive_games/journey03/index.html Capital Markets Event 23rd October 2013 19
Slide 20: Weston Markets served
Senior Aerospace - Weston Markets served Markets Civil Aerospace - Aircraft/Engine Distribution Marine 1% Industrial Gas Turbine 2% Legacy Defence Aerospace 7% BR710 Spares V2500 Trent 900 A320 Trent 800 A330 A380 A350 Trent 700 Trent 500 Civil Aerospace 90% Long term agreements (LTA’s) in place wit
Slide 21: SA Weston - Structures
SA Weston - Structures Capability Example: • Cost effective ‘hard metal’ machining process co-developed with the AMRC (Advanced Machining Research Centre) • Benefits • Rapid material removal rates • Reduced consumable tooling cost Airbus A330 Pintle (Landing Airbus A320/1 Pintle (Landing Airbus A330
Slide 22: SA Weston - Structures
SA Weston - Structures Capability Example: • Supply of higher level ‘line side kits’; supply chain management; low level assembly and fitting • Benefits • Differentiation – Increased service level • Additional business value • Increased barrier of entry Airbus A320/1 Landing Gear Fixing Kit Airbus A
Slide 23: SA Weston - Aero-Engines
SA Weston - Aero-Engines Capability Example • Compressor blade and vane robotic elliptical leading edge manufacturing capability. Rolls-Royce proprietary fuel saving process. Benefits • Only business in the UK, other than Rolls-Royce, to have this capability. • Additional business development opport
Slide 24: Senior Aerospace - Weston Growth
Senior Aerospace - Weston Growth Growth Strategy: Offer innovative supply solutions to a limited number of strategic aerospace customers, with long-term business development opportunities. Targeted Growth Opportunities: Spirit Aerosystems • Airbus Single Aisle Pylon Brackets • Airbus A350 Track Ribs
Slide 25: Weston SEA Overview
Weston SEA Overview (Richard Sutton) Capital Markets Event 23rd October 2013 25
Slide 26: Thailand Introduction
Senior Aerospace Thailand Introduction Richard Sutton • British Citizen, HQ and Operations in Earby Lancashire , England. • 28 years of Business Development, Operational and Executive Leadership • Joined Weston EU as an apprentice in 1978. • Became Managing Director in 1989, succeeding his late fath
Slide 27: Senior Aerospace - Thailand Background
Senior Aerospace - Thailand Background • Founded in 2008. • Currently 2 facilities providing total factory floor space of 60,000 sq./ft. • Acquired by Senior Plc in November 2011 as a wholly owned subsidiary of Weston EU • 7% of divisional revenues • 160 employees. Capital Markets Event 23rd October
Slide 28: Thailand Products and Applications
Senior Aerospace - Thailand Products and Applications B787 Rib 161Z1832 Business Class Seat V2500 IP Rotor’s & HP Stators Business Class Seat Business Class Seat V2500 IP Rotor Capital Markets Event 23rd October 2013 28
Slide 29: SA Thailand – Structures
SA Thailand – Structures Capabilities • Complex Premium Aircraft seat structure assemblies. • Benefits • Differentiation by utilising low direct labour costs • Increased Value Add Seat Carriage Assembly Seat Pan Assembly Mainframe Assembly Capital Markets Event 23rd October 2013 29
Slide 30: SA Thailand – Structures
SA Thailand – Structures Capability Example: • SE Asia Regional supply of structural sub assemblies direct to OEM lineside assembly. • Benefits • Differentiation – Increased service level • Additional value add • Increases barrier to market entry Capital Markets Event 23rd October 2013 30
Slide 31: SA Thailand – Aero-engines
SA Thailand – Aero-engines Capability Example • Compressor blade and vane robotic elliptical leading edge manufacturing capability. Rolls-Royce proprietary fuel saving process. • Benefits • Differentiation – one of only two external suppliers worldwide to have this capability and the only supplier i
Slide 32: Senior Aerospace - Thailand Growth
Senior Aerospace - Thailand Growth Growth Strategy: Provide total in-house capability which supports our strategic aerospace customers requirements to source volume programs within the largest aerospace growth market, SE Asia. Targeted Growth Opportunities: Spirit Aerosystems • 787 Fixed Leading Edg
Slide 33: Customers Served (100% Civil Aerospace)
Senior Aerospace - Thailand Customers Served (100% Civil Aerospace) Customers 2013 Customers 2016 Safran Zodiac Spirit 8% seating 0.7% MTU 12% Zodiac seating 3% 31.3% RR 46% Spirit 31% RR 68% Key growth platforms: A320, A350, and Boeing 787 Presence in Seating sector on all current Airbus and Boeing
Slide 34: Thailand Programmes
Senior Aerospace - Thailand Programmes Programmes 2013 Programmes 2016 Others 12% Others: B737 A330,A340 2% A380, B777 B747, B767 31.3% A350 B787 14% 35% B787 A320 0.7% 68% A320 37% Capital Markets Event 23rd October 2013 34
Slide 35: Site Tour
Site Tour Capital Markets Event 23rd October 2013 35
Slide 36: Fluid Systems Division Scene Setting
Fluid Systems Division Scene Setting (Mark Rollins) Capital Markets Event 23rd October 2013 36
Slide 37: Group Markets (H1 2013)
Group Markets (H1 2013) 3% Other Industrial (4%) 2% Heating, Ventilation & Solar (1%) 3% Petrochemical (3%) 7% Power & Energy (7%) 34% Large Commercial Aircraft (33%) 8% Passenger Vehicles (9%) 36% Flexonics (34%) 64% Aerospace (66%) 13% Truck & Off-Highway (10%) 6% Other Aerospace Division (6%) 15%
Slide 38: Aerospace Markets (H1 2013)
Aerospace Markets (H1 2013) Space & Non Military Helicopter 2% Other Non Aerospace 5% Regional Jets 2% Business Jets 4% Large Commercial Aircraft 73% Military/Defence Aerospace 14% Fluid Systems Division Other Non Aerospace 14% Space & Non Military Military/Defence Helicopter 3% Aerospace 36% Region
Slide 39: H1 2013 Group Performance
H1 2013 Group Performance H1 2013 H1 2012 Change Revenue £399.3m £377.2m +6% Adjusted Operating Profit £53.3m £50.7m +5% Adjusted Operating Margin 13.3% 13.5% - Revenue Operating Profit Headcount (6,368) 11.5% ROS 14.1% ROS 36% 29% 38% 36% 31% 41% 33% 30% 26% 19.0% ROS Aerospace – Structures Aerospa
Slide 40: Aerospace Fluids Overview
Aerospace Fluids Overview (Launie Fleming) Capital Markets Event 23rd October 2013 40
Slide 41: Fluid Systems Facility Locations
Senior Aerospace Fluid Systems Facility Locations Atlas, Ilkeston UK BWT, Adlington UK Composites, Wichita Kansas Bird Bellows, Congelton UK SSP, Burbank California Bosman, Rotterdam The Netherlands Ermeto, Blois France Metal Bellows, Sharon Mass Calorstat, Dourdan France Capital Markets Event 23rd
Slide 42: Fluid Systems Markets & Customers
Senior Aerospace Fluid Systems Markets & Customers Markets Customers UTC, 6.3% Military, GKN, 7.9% Boeing, 5.3% 36% Airbus/EADS, 8.4% Lockheed, 5.1% General Dynamics, Large 4.8% Comm, 23% Safran Bombardier, Group, 4.2% 8.7% Lam Research, 3.1% Embraer, Non Aero, 2.9% 18% Other, 43.3% Business Helicop
Slide 43: Fluid Conveyance: Low Pressure Ducting
Senior Aerospace Fluid Systems Fluid Conveyance: Low Pressure Ducting Business Aircraft Rotary Wing Regional Aircraft Ram Silencer / Muffler EE Bay ECS Avionics Various Composite Inlet Systems Ducting Distribution System Cooling Duct Products Manifold Main Operations: Atlas, BWT, SA Composites Main
Slide 44: Fluid Conveyance: High Pressure Ducting
Senior Aerospace Fluid Systems Fluid Conveyance: High Pressure Ducting HP bleed air duct HP Bleed air duct Pressure valve capsule Typical bizjet engine bleed ducting Typical wing duct products Bombardier C Series High Pressure ducting layout Main Operations: Calorstat, Bird Bellows, SSP Main Custome
Slide 45: Engine System Components
Senior Aerospace Fluid Systems Engine System Components Anti Ice Engine Oil Systems Pressure Sensors Heat shield Active Clearance Control Instrumentation Seals Shroud assy Engine Nacelle Honeycomb seals Seals Air seal Tube EBU Bleed and shrouds TCC Manifold Bellows (ECS/Starter) Ducts Main Operation
Slide 46: Wing Component Systems
Senior Aerospace Fluid Systems Wing Component Systems Anti-Ice Telescope Duct Anti-Ice Piccolo Ducts EHA Reservoirs Insulated Bleed Air Ducts Bleed Air Gimbal Joints Flexible Bleed Air Ducts Bleed Air Flexible Joints Main Operations: Bird Bellows, Calorstat, SSP Main Customers: Airbus, ATR, Bombardi
Slide 47: Fluid Transfer Components
Senior Aerospace Fluid Systems Fluid Transfer Components Hydraulic & fuel fittings Hydraulic Rigid pipes Fuel Manifolds Maintenance Free Pylon bellows and ducting Accumulators & Reservoirs Hydraulic valves Fuel Rigid pipes Main Operations: Bird Bellows, Ermeto, Metal Bellows Main Customers: Alenia,
Slide 48: Composite products
Senior Aerospace Fluid Systems Composite products Exterior Fairings Fully Integrated & Access Panels PSU Assy’s Hot Air Exhausts Composite wall panels External Fairings Moisture Barriers Service panels Nomex Core Barrier Panels Main Operations: Atlas, SA Composites Main Customers: Boeing, Bombardier
Slide 49: Composite products and Specialist Tooling
Senior Aerospace Fluid Systems Composite products and Specialist Tooling High precision Spar tooling with F16 radome re-useable vac bag radome intake ducts Electronics enclosure Next generation Air stairs tooling composite wing & Fabrication Fan cowl tooling Main Operations: Atlas, SA Composites Mai
Slide 50: Bird Bellows
Senior Aerospace Bird Bellows Capital Markets Event 23rd October 2013 50
Slide 51: Senior Aerospace – Bird Bellows Background
Senior Aerospace – Bird Bellows Background • Founded on current site in 1975. • Joined Senior Plc in 1999. • 220 employees. • Based in Congleton, 20 miles south of Manchester Airport. • 60,000 ft2 Production Area • 15,000 ft2 Offices / Testing Capital Markets Event 23rd October 2013 51
Slide 52: Bleed Air Systems
Senior Aerospace - Bird Bellows Bleed Air Systems Bleed air is compressed air taken from the engine and used within the aircraft for de-icing, pressurising the cabin, air conditioning, engine start and other system requirements such as pressurisation of water and hydraulic systems Senior Aerospace B
Slide 53: Pneumatic Ducting and Flexible Joints
Senior Aerospace - Bird Bellows Pneumatic Ducting and Flexible Joints Telescope ducts Insulated bleed air ducts Bleed air ducts Vibreaker elastomer sealed joints Pressure balance and bellows units Piccolo ducts Gimbal joints Ball Joints Capital Markets Event 23rd October 2013 53
Slide 54: Bird Bellows Markets served
Senior Aerospace - Bird Bellows Markets served Markets Customers Other Non Aerospace 17% Regional Jets 1% Other 32% GKN 24% Military 1% Business Jets 3% Rolls Royce 2% Airbus UK 16% Embraer 4% Airbus France 10% Large Commercial Aircraft 78% PFW 12% Aerospace – key growth platforms: A350, A400M, Lega
Slide 55: Bird Bellows Capabilities
Senior Aerospace - Bird Bellows Capabilities Materials: Titanium, Nickel Alloys, CRES, Aluminium Processes: Hot and cold press forming Hot and cold tube bending Tube manufacture Laser profiling Swage forming CNC machining Bellows roll and elastomer forming TIG, plasma, resistance welding Robotic wel
Slide 56: Bird Bellows Capabilities
Senior Aerospace - Bird Bellows Capabilities Design: Inventor, Catia, Finite Element Analysis, Computational Fluid Dynamics Development: Tooling design and manufacture, Prototype Component manufacture and Test Rig manufacture. Test & Qualification (in-House) • Proof Pressure and Burst Pressure • Pre
Slide 57: Bird Bellows Key Programmes
Senior Aerospace - Bird Bellows Key Programmes Airbus A320, A330, A350, A380, A400M Embraer: E170/190, Rolls-Royce Phenom 300, Trent 700, Trent Legacy 450/500, 900, Trent 1000, KC-390 Trent XWB and XWB 97k Capital Markets Event 23rd October 2013 57
Slide 58: Bird Bellows Future Growth
Senior Aerospace - Bird Bellows Future Growth Growth Strategy: • High customer service levels • Continued focus on engineering excellence and enhancement of in- house capability to support new product development • Ongoing employee training and apprentice recruitment programmes • Leverage internal r
Slide 59: BWT
Senior Aerospace BWT Capital Markets Event 23rd October 2013 59
Slide 60: BWT Background
Senior Aerospace - BWT Background • Established in 1836 by James Baxter - cotton goods based in Manchester. • James retired in 1887, his brother Frederick became Managing Director. Robert Woodhouse joined as a sleeping partner along with John Taylor as Company Secretary – BWT was formed….. John Tayl
Slide 61: BWT Core Business
Senior Aerospace - BWT Core Business • BWT’s core business – ‘the design and manufacture of of ultra-lightweight air conditioning ducting for the aerospace market and specialist industries’. Customers are predominantly in the regional jet, business jet, helicopter & military aircraft sectors ~430 Em
Slide 62: Core Business at Atlas Composites
Senior Aerospace - BWT Core Business at Atlas Composites • The Atlas Composites site manufactures a diverse range of composite structures, components and tooling for aerospace, motor sport, defence, satellite communications, and space markets in addition to providing R&D support to customers ~76 Emp
Slide 63: BWT Markets served
Senior Aerospace - BWT Markets served Markets (2012) Customers (2012) Commercial Other Wide Body 0% Aircraft 1% Mitsubishi Military 3% Others Commercial 22% Regional Jets 20% Bombardier 33% 23% BWT Non Military Gulfstream Helicopter 5% Embraer 9% Agusta 14% Commerical Westland Boeing Liebherr Busine
Slide 64: BWT Customers / Aircraft
Senior Aerospace - BWT Customers / Aircraft Military & Helicopters / V22 Regional Aircraft Business Aircraft Wide Body Aircraft BAE SYSTEMS BOMBARDIER BAE SYSTEMS EUROCOPTERS ATP Challenger 300 Nimrod EC135 BAe146 Global Express and G5000 Typhoon Tiger BOMBARDIER Learjet Series AGUSTA KAWASAKI AH-64
Slide 65: Where does cabin air come from?
Senior Aerospace - BWT Where does cabin air come from? • The process starts by feeding the Environmental Control Units (ECU) with hot fresh air. There are two ways the system can be fed with hot fresh air. When on the ground and the main engines are not running fresh air can be fed ECU Ducting, Ram
Slide 66: Where is the cabin air conditioned?
Senior Aerospace - BWT Where is the cabin air conditioned? • The hot fresh air is cooled by a series of expansion chambers and by passing cold air across it through a heat exchanger inside the ECU. • The cooled fresh air flows through the Pack Ducting to the ‘Check Valve’ leading to the mix-manifold
Slide 67: How is the cabin air distributed?
Senior Aerospace - BWT How is the cabin air distributed? • The conditioned air from the ECU is fed into the Mix-manifold where it is mixed with recirculated air that has been collected from the cabin and purified through filters. (50/50 ratio) • Air at different temperatures does not mix easily so t
Slide 68: BWT Growth Strategy
Senior Aerospace - BWT Growth Strategy Business Vision: Through demonstrated performance and competitiveness we will position BWT as the customers preferred choice for LP distribution systems and Composite structures and components. New Programmes in development: Bombardier CSeries Fan Track Liner B
Slide 69: Closing remarks
Closing remarks (Mark Rollins) Capital Markets Event 23rd October 2013 69
Slide 70: Closing Remarks
Closing Remarks Hopefully you can now better understand: The operating standard of a Senior manufacturing facility The highly encouraging prospects for Senior Aerospace in Asia The key technology within the Fluid Systems Division The highly encouraging prospects for the Fluid Systems Division The qu
Slide 71: Appendices
Appendices Capital Markets Event 23rd October 2013 71
Slide 72: Group Structure
Group Structure Attending today Capital Markets Event 23rd October 2013 72
Slide 73: Calorstat/Ermeto- overview
Calorstat/Ermeto- overview Calorstat, France Ermeto, France CEO CEO Xavier Brengues Alain Lebert Site Location Site Location Dourdan (SW Paris) Blois, France Facility: 8900m² Facility: 60,000 Ft2 80 Employees 178 Employees Pictures of typical products Pictures of typical products Key customers Key c
Slide 74: SAC/Bosman - overview
SAC/Bosman - overview SAC, USA Bosman, Holland CEO CEO Edwin Schelling Carl Best Site Location Site Location Barendrecht (S of Rotterdam, The Netherlands) Wichita, Kansas, Facility: 38,000 Sq. Ft. Facility: 40,204 Sq. Ft. 72fte Employees 150 Employees, Non-Union Pictures of typical products Pictures
Slide 75: Metal Bellows - overview
Metal Bellows - overview CEO John Cory Site location Sharon, Massachusetts Facility: 70,000 ft2 (6503 m2) 183 Employees (non-union) Pictures of typical products Key customers Aircraft: UTC, Boeing, Lockheed, Honeywell, Moog, Northrop, Raytheon, Lam Research, Medtronic, Proven Process,Schlumberger Ke
Slide 76: SSP - overview
SSP - overview CEO Steve Loye Site location Burbank, CA 91504 Facility: 150,000 Ft2 of manufacturing floor space 510 Employees (356 Union / 154 non-union) Pictures of typical products Key customers Bombardier, Lockheed, General Dynamics, UTC, Airbus, Boeing Key platforms A320NEO, Cseries, Lear85, 78