Slide 1: 2023 final results
2023 final results 19 September 2023
Slide 2: Revised date for publication of results
Revised date for publication of results A matter arose late in the audit process that required a few extra days for the company and its auditor to resolve. The matter was not material to the financial results.
Slide 3: Financial summary
Financial summary Half-year revenue £m 400 Good growth from systems sales, offset by weaker 350 demand from the semicon equipment sector 300 69.1 79.2 83.6 77.9 67.0 65.4 250 67.2 63.6 51.7 54.7 Revenue growth of 3% to £688.6m 200 94.6 95.5 110.3 102.4 114.1 100.1 • Revenue 1% lower at constant curr
Slide 4: Profitability
Profitability Key metrics – 2023 vs 2022 2023 2022 Change Maintaining our focus on long-term growth £m £m % Revenue 688.6 671.1 3% Adjusted profit before tax 14% lower at £141.0m Adjusted profit 141.0 163.7 -14% before tax • Return on sales reduced to 20% (24% last year) Statutory profit 145.1 145.6
Slide 5: Our markets
Lab & clinic Our markets Analytical instruments & medical devices 7% Semicon equipment Supplied through machine 16% builders to semicon fabs Research globally, no direct Healthcare connection to end-user Semicon industry Machine shop, Others equipment robotics & automation Heavy 77% Diverse end-use
Slide 6: Our strategy – Renishaw in the machine shop
Our strategy – Renishaw in the machine shop Lab & Robotics & clinic Semicon automation equipment Machine shop Strategic progress ▲ Steady rise in machine tool probing demand ▲ FORTiS™ enclosed encoders tested by >100 machine tool builders ▲ Rising penetration of EQUATOR™ flexible gauge into EV ▲ End
Slide 7: Our strategy – launch of Renishaw Central
Our strategy – launch of Renishaw Central Accurate, actionable data across the shop floor Consolidate shop floor measurement data to create the smart factory • Connect metrology devices in the factory – Renishaw and 3rd party • Automation through Intelligent Process Control – assisted or autonomous
Slide 8: Our strategy – Renishaw in the semicon fab
Our strategy – Renishaw in the semicon fab Lab & Robotics & clinic Semicon automation equipment Machine shop Strategic progress ▲ Developing a pipeline of innovative new products to strengthen our product portfolio ▲ Continuing to win new machine builder customers ▲ Strong inventory position – ready
Slide 9: Our strategy – launch of Industrial Automation product line
Our strategy – launch of Industrial Automation product line Lab & Robotics & clinic Semicon Patented ► automation equipment RCS software simplifies testing and analysis Improve robot accuracy and identify root causes of poor robot precision Machine shop Calibration, set-up and in-process control of
Slide 10: Financial highlights
Financial highlights Revenue £m 2023 2022 Change 800 £m £m % 671.1 688.6 700 574.0 565.6 Revenue 688.6 671.1 3% 600 510.2 500 345.9 340.9 277.3 310.5 400 250.8 Adjusted profit before tax 141.0 163.7 (14%) 300 200 325.2 347.7 296.7 FV gains / (losses) on ineffective FX cash 100 259.4 255.1 5.5 (8.3)
Slide 11: Income statement
Income statement 2023 2022 Adjusted profit before tax bridge £m £m % £m % Change Revenue 688.6 100 671.1 100 3% Cost of sales (247.7) (36) (235.0) (35) 5% Engineering (inc. R&D) (90.2) (13) (78.6) (12) 15% Gross profit 350.7 51 357.5 53 (2%) Distribution costs (137.7) (20) (122.5) (18) 12% Administr
Slide 12: Sources and use of cash
Sources and use of cash Slide 12
Slide 13: Capital allocation approach
Capital allocation approach 5. Consider one-off capital return to shareholders 4. Maintain a progressive dividend policy 3. Targeted Acquisitions that align to our strategy 2. Maintain a minimum cash target to support the business through a downturn 1. Organic investment in our existing business
Slide 14: Investment in our future
Investment in our future Capital expenditure £m 80 74.0 People Capital expenditure 70 56.8 • Headcount up 1.5% to 5,175, growth in • £74.0m capex in FY2023, including 60 44.6 50 engineering & sales to support long-term growth new production equipment and first 34.9 25.4 38.7 40 30.8 phase of 50% man
Slide 15: Sustainability
Sustainability Our commitment to a sustainable business OUR COMMITMENT 2020 2023 2028 2030 2050 Baseline Current Net Zero on Scope 1 Reduce Scope 3 (at the status and 2 emissions emissions by 50% latest) Achieve OUR PROGRESS Net Zero Baseline GHG emissions (FY2020) Scope 1 and 2 emissions FY23 progr
Slide 16: Enabling sustainable manufacturing
Enabling sustainable manufacturing Helping our customers on their sustainability journey Reduce CO2e with AM New opportunities with EVs Reduce waste and inefficiency Renishaw example of light-weight design Transmission Additive Subtractive Stator and rotor 96% reduction in material consumption Diffe
Slide 17: Business environment and outlook
Business environment and outlook • FY23 has seen mixed conditions in our markets: • Demand for most of our product lines has risen, with good growth in systems sales • Semiconductor equipment sector has been notably weaker • Steady start to FY2024 and our order book remains solid: FORTiS™ enclosed e
Slide 18: Disclaimer
Disclaimer This document contains statements about Renishaw plc that are or may be forward-looking statements. These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Renishaw plc. They involve known and unknown risks, uncertainties a