Renishaw Plc · LSE:RSW
Renishaw — Investor Day (2025)
37 slides from Renishaw's investor day presentation, 2025
Slide 1: Capital Markets Day 2025
Capital Markets Day 2025 Will Lee Chief Executive ASTRiA inductive encoder, introduced in FY25
Slide 2: Our goals for today
Our goals for today Welcome to Miskin ► Update on our strategic progress, including exciting developments in FY26 ► Explain how we are improving our financial performance ► Showcase our recent capital investments & our technologies in action in our factories ► Provide details of our financial goals
Slide 3: Our purpose: Transforming tomorrow together
Our purpose Transforming tomorrow together We make it possible to create the products and materials that will define our world in the decades to come and touch billions of lives Where our products are used ► Machine shop ► Semicon production equipment ► Robotics & automation ► Laboratory & process l
Slide 4: Our ambition: a manufacturing technology powerhouse
Our ambition To be a manufacturing technology powerhouse ► Innovating for an automated, sustainable world ► Taking leading positions in high-growth markets ► Developing a portfolio of sensors and software- enabled systems ► Generating long-term organic growth with sustained profitability ► Doing bus
Slide 5: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 6: Our long-term growth model
Our long-term growth model Targeting high single digit through-cycle organic growth Well positioned in markets growing at >5% 1 p.a. Strategy driving consistent outperformance Manufacturing machine Industrial Growing in Increasing Extending into performance automation existing markets technology val
Slide 7: Accelerating innovation
Accelerating innovation Recent & current developments to drive market out-performance Growing in existing markets Increasing technology value Extending into new markets ► Strong recent growth in demand ► Boosted AM productivity with ► Renishaw CENTRAL smart for fibre-laser encoders for wafer unique
Slide 8: Coming in FY26: EQUATOR-X
Coming in FY26 EQUATOR-X versatile shopfloor gauge for rapid inspection of precision components ► Verification & process control for high-throughput machining applications in consumer electronics, automotive & aerospace ► Unique ‘hexapod’ structure enabling measurement up to 8 times faster than conv
Slide 9: Coming in FY26: MODUS IM
Coming in FY26 MODUS IM Equator metrology software for inspection on shop-floor gauging systems ► Accessible operator & programming interface for shop floor use ► Simple programming enables efficient direct sales and new distribution channels ► Automation options to integrate into manufacturing cell
Slide 10: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 11: Improving operating margins
Improving operating margins Targeting >20% operating margins through growth, efficiencies & cost control 100% Cost 25 H1 Target Production 39% 35% 80% Gross margin Gross margin 61% 65% (ex. engineering) (ex. engineering) % of revenue 60% Engineering 15% 12% 40% Distribution 20% 18% 20% 20% target Ad
Slide 12: Production
Production Targeting 65% gross margin (ex. engineering) Manufacturing & logistics automation ► New machine tools, robots and automated warehousing ► Reduce direct labour content in key products, benefiting production cost and gross margin Benefit from recent capital investments ► Recent capex provid
Slide 13: Engineering
Engineering Securing strong returns on engineering investment Focus and prioritisation ► Flagship project for each product line ► Fewer projects, faster execution ► ‘Minimum viable product’ approach for non-substitutional new products – move quickly and learn fast Cost control ► Re-structuring and c
Slide 14: Distribution
Distribution Establishing efficient routes to market Sales resource alignment ► Expanding teams in India and China ► Specialist sales teams reporting into smaller business units (Additive, Spectroscopy, Industrial Automation) Efficient sales ► Continue successful key accounts sales strategy ► New Mo
Slide 15: Administration – IT transformation
Administration – IT transformation Significant investment (including £6m p.a. of short-term consultancy) to streamline customer interactions & drive productivity Microsoft Dynamics 365 Digital Experience ► Replaces legacy ERP & CRM platforms ► New product catalogue and ecommerce platform now live ►
Slide 16: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 17: Group structure & portfolio development
Group structure & portfolio development Simplify the Group Rationalise Segments Focus STRATEGY Exit non-core product Organise the business Align reporting lines of lines and focus on into three new reporting manufacturing & sales manufacturing segments that align into Specialised technology powerhou
Slide 18: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 19: Capital allocation framework
Capital allocation framework Priorities for generation and deployment of cash Cash conversion 120% 1 2 103% 100% Organic growth Regular returns 100% ► Capex to expand ► Progressive dividend Adj. cash flow conversion from capacity and drive policy operating activities1 80% productivity ► c. 2x divide
Slide 20: Strategy Q&A
Strategy Q&A ► Accelerating innovation ► Improving operating margins ► Simplifying & focusing the business ► Driving shareholder returns Will Lee Allen Roberts Chief Executive Group Finance Director | 20
Slide 21: Financial targets & business segments
Financial targets & business segments Marc Saunders Director of Group Strategic Development
Slide 22: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 23: Improving operating margins
Improving operating margins Targeting >20% operating margins through growth, efficiencies & cost control 100% Cost 25 H1 Target Production 39% 35% 80% Gross margin Gross margin 61% 65% (ex. engineering) (ex. engineering) % of revenue 60% Engineering 15% 12% 40% Distribution 20% 18% 20% 20% target Ad
Slide 24: Production cost targets
Production cost targets Automated Targeting 65% gross margin (ex. engineering) material movement Factory of the Future automation initiatives, including: ► Encoders assembly automation ► New machine tools (small & large turning, auto loading) ► Automated warehousing & material movement Encoder ► Aut
Slide 25: Operating cost targets
Operating cost targets Moving fixed costs towards the bottom of their historic ranges Engineering costs1 as % of sales Distribution costs as % of sales Administration costs as % of sales 20% Target 30% Target 16% Target Engineering costs / revenue (%) S&M spend / revenue (%) S&M spend / revenue (%)
Slide 26: IT transformation
IT transformation Streamline customer interactions & drive productivity in admin functions Targets Approach ► Replace legacy systems to improve customer ► Design & configure with consultants, in-house deployment & support experience and enable process automation ► £6m annual consulting spend, taken
Slide 27: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 28: New business segments
New business segments Current segments New segments Enhance investor understanding of our business Industrial Metrology Manufacturing ► 3 new reporting segments technologies Position ► Link to end-user markets and external Analytical instruments Measurement demand drivers & medical devices Specialis
Slide 29: FY26 segment definitions
FY26 segment definitions FY25 segment Products FY26 segment Products Maturity1 CMM sensors CMM sensors Established Machine tool probes Machine tool probes Established Styli & fixturing Industrial Styli & fixturing Established Calibration systems Metrology Calibration systems Established CMM & gaugin
Slide 30: Industrial Metrology
Industrial Metrology Measurement & control of precision component manufacturing processes Applications Market-leading sensors (established) ► Automated process set-up, in-process control and multi- CMM sensors Machine tool probes Styli & fixturing Calibration systems sensor post-process monitoring o
Slide 31: Position Measurement
Position Measurement Precision motion control of machinery, robotics & factory automation Applications Contactless encoders for precision motion control (established) ► Precision motion control for semiconductor Open optical encoders Fibre laser encoders Magnetic encoders manufacturing equipment, ma
Slide 32: Specialised Technologies
Specialised Technologies Novel technologies in high growth sectors Spectroscopy for materials analysis & Additive Manufacturing for volume Industrial Automation solutions for control (established) production (emerging) robotic precision (emerging) Laboratory Raman RenAM 500Q Robot calibrators spectr
Slide 33: Industries served & routes to market
Industries served & routes to market Customer needs Broad range of ultimate Complementary Machine builder Distributor End user end user industries routes to market Pull through demand Sales strategies: 100% Other, 5% Agriculture & construction, 1% CMM sensors Healthcare, 4% Industrial Metrology 90%
Slide 34: Our focus: Achieving our growth & margin targets
Our focus Achieving our growth & margin targets to drive shareholder value ► Driving revenue growth through accelerated innovation ► Improving operating margins through focussed execution & productivity ► Rationalising our portfolio and aligning into new business segments ► Focussing on cash convers
Slide 35: Cash conversion
Cash conversion Converting operating profit into cash Inventory ► Focus on agile supply chain Cash conversion 186 and inventory control 200 30% 120% 162 162 158 ► Inventory reduction in recent 103% % of revenue 150 25% 100% 114 Inventory years improving stock turn 100% Adj. cash flow conversion from
Slide 36: Return on invested capital (ROIC)
Return on invested capital (ROIC) Focusing on growth and margin improvement using existing assets Average invested capital1 ► Invested capital increase ROIC3 800 734 722 driven by higher inventory in 671 25% 700 600 545 572 FY23, plus property capex in 23.5% FY23 and FY24 Return on invested capital
Slide 37: Targets & segmentation Q&A
Targets & segmentation Q&A ► Improving operating margins ► New business segments ► Driving shareholder returns Allen Roberts Marc Saunders Group Finance Director Director of Group Strategic Development | 37