Bodycote Plc · LSE:BOY

Bodycote — Investor Day (April 2019)

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

  1. Slide 1: Hot Isostatic Pressing (HIP) – HIP Services

    Hot Isostatic Pressing (HIP) HIP Services Byron Williamson

  2. Slide 2: Agenda

    Agenda  What is Hot Isostatic Pressing (HIP)?  Markets and applications  Bodycote market position  Market characteristics  Barriers to entry  Summary 2

  3. Slide 3: What is Hot Isostatic Pressing (HIP)?

    What is Hot Isostatic Pressing (HIP)? A high temperature furnace inside a pressure vessel 3

  4. Slide 4: Principles of HIP

    Principles of HIP HOT ISOSTATIC PRESSING Up to 2300˚C Pascal’s Law: Up to 45,000 psi In a fluid, pressure is transmitted equally in all directions. Fluid = Argon or Nitrogen Heals defects in metals Consolidates material to 100% density 4

  5. Slide 5: Market sectors

    Market sectors General Industrial Other Aerospace Energy & Defence IGT 5

  6. Slide 6: Application examples

    Application examples 6

  7. Slide 7: Growth drivers

    Growth drivers Aerospace & Defence Oil & Gas and Nuclear General Industry  Strong long-term growth  Demand for safety critical  Medical implants and surgical driven by Engine Super components expected to increase tools displays secular growth Cycle and transition to new over the medium and longer

  8. Slide 8: Large HIPs – Bodycote's market position

    Large HIPs Bodycote’s market position  No need for proximity to customer Circa 90% of large HIP vessels and circa 90% of global large HIP capacity1 1 excluding Japan 8

  9. Slide 9: Security of supply

    Security of supply Long Term Agreement (LTA) » 01 Customers reserve capacity for many years in advance Customers require a high level of risk mitigation and Redundancy safeguarding for their HIP 02 Multiple preapproved and qualified supply chain – HIP vessels HIPs on a single site are temperamental

  10. Slide 10: Barriers to entry

    Barriers to entry Investment  Large HIP with ancillaries, service and installation costs circa £16m  Risk mitigation requires at least 2 HIPs, circa £30m  Spares and maintenance adds circa £1m per annum Time to market  2 years from purchase order to installation and commissioning  6 to 12 month

  11. Slide 11: Barriers to entry

    Barriers to entry Financial hurdles for a new entrant today New Newmarket entrant@@(2) market entrant (2)large large HIPs HIPs  £30m up-front investment, plus £1m per annum 40.0 thereafter from Year 3 of operation 35.0 30.0  Capital intensity greater than 4x at current prices 25.0 (including requi

  12. Slide 12: Bodycote's competitive advantage

    Bodycote’s competitive advantage Technology  Enabler for advanced material requirements Assets & Diversity  Global leader in HIP vessel quantity and capacity  Global leader in HIP vessel’s sizes and pressures Coverage  Serve key OEMS and tiers in their chosen geographies  Support civil aviation

  13. Slide 13: 2019

    2019 |

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