Senior Plc · LSE:SNR
Senior — Investor Day (August 2022)
99 slides from Senior's investor day presentation, Aug 1, 2022
Slide 1: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021 Fluid conveyance and thermal management Capital Markets Day 2021
Slide 2: Notices: Cautionary Statement
NOTICES Cautionary Statement This document has been prepared solely to provide additional information to enable shareholders to assess the Group’s strategy and business objectives and the potential for the strategy and objectives to be fulfilled. It should not be relied upon by any other party or fo
Slide 3: Introduction
INTRODUCTION David Squires Group CEO Capital Markets Day 2021
Slide 4: Today's Key Objectives
TODAY’S KEY OBJECTIVES Deeper insight into our strategy Focus on thermal management and fluid conveyance technology Showcase examples of businesses operating in diverse and attractive end markets Future proofing growth of the business as we transition to low carbon economy Delivering and exceeding R
Slide 5: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 6: Presenters
PRESENTERS David Squires Bindi Foyle Group CEO Group Finance Director John Cory Carl Armbrister Rob Vaughan Ryan Collins Senior Metal Bellows Senior Flexonics Pathway Senior Flexonics Crumlin Senior Flexonics Bartlett CEO Director Of Business Managing Director Director of Engineering Development Cap
Slide 7: An international, market-leading, engineering solutions provider
An international, market-leading, engineering solutions provider Designs and manufactures highly engineered, technology rich components and systems for OEMs in the worldwide aerospace and defence, land vehicle and power & energy markets 26 operating businesses (including one JV) across 12 countries,
Slide 8: Investment Case: Positioned for Growth
INVESTMENT CASE: POSITIONED FOR GROWTH Our purpose to provide safe and innovative products for demanding thermal management and fluid conveyance applications Clear strategy to maximise shareholder value Focus on IP-rich Aerospace fluid conveyance & Leading thermal Long-term Flexonics A differentiate
Slide 9: Focus on IP-Rich Technology and Manufacturing
FOCUS ON IP-RICH TECHNOLOGY AND MANUFACTURING Fluid Conveyance and Thermal Management Product and System Design & Manufacturing IP Flexonics ✓ This remains the key strategic focus ✓ Significant current and future opportunities identified within this technology domain Aerospace Structures Complex Mac
Slide 10: Medium-Term Minimum ROCE Target
MEDIUM-TERM MINIMUM ROCE TARGET ≥ 13.5% Confident in Portfolio optimisation strategy to delivering good maximise value creation 11.1% returns on capital and enhanced shareholder value Strategic focus on IP-rich fluid conveyance and thermal management Ongoing End-Market Intrinsically strong cash Reco
Slide 11: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 12: Senior Metal Bellows
SENIOR METAL BELLOWS John Cory Senior Metal Bellows, CEO Capital Markets Day 2021
Slide 13: Agenda
AGENDA • Metal Bellows History • Strategy • Sales and Products • Growth Products and Product Development • Engineering Capabilities and Manufacturing Automation • Summary Capital Markets Day 2021 Page 13
Slide 14: Metal Bellows History
METAL BELLOWS HISTORY 1955 1974 2020 Founded by Ray Shamie Facility expanded to 1994 Approximately 290 employees ~10,000 sq. ft. facility in ~41,000 sq. ft. Acquired by Facility expanded to ~120,000 sq. ft. Wellesley, MA. Senior plc 10% of 2020 Group revenue 1963 1982 1986 1998 New Facility in Facil
Slide 15: Metal Bellows Vision & Strategy Statement
METAL BELLOWS VISION & STRATEGY STATEMENT To achieve profitable 6% year-on-year revenue growth by finding, capturing, designing and manufacturing complex products for niche production applications which solve problems and add value for OEM customers Capital Markets Day 2021 Page 15
Slide 16: Metal Bellows Strategy
METAL BELLOWS STRATEGY • Maintain, exploit and expand IP across multiple/diverse end- markets by developing new devices and advancing manufacturing • Develop deep customer insights/relationships and use a value sales approach • Attract, retain and motivate talent • Continuously strive for world clas
Slide 17: Value Sales Approach
VALUE SALES APPROACH • Industry leader in the design and fabrication of highly engineered bellows devices and components (not a commodity supplier and not a systems supplier) • Superior solutions which differentiate us from competition and enable our customers to make unique products that bring high
Slide 18: Attractive End Markets
ATTRACTIVE END MARKETS 2015 Space 2019 2020 Medical Less than Medical Space Space Medical 7% 1% 7% 1% 1% 5% Semiconductor Industrial Industrial Industrial 14% 8% Semiconductor 8% 15% 21% Semiconductor 30% Commercial Aerospace Commercial 15% Defence Aerospace Commercial 36% 24% Aerospace Defence 28%
Slide 19: Annual Sales History & Strategy
ANNUAL SALES HISTORY & STRATEGY 120 110 100 10% of Group Sales $ million 90 80 Effect of 70 Pandemic 60 50 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Forecast Strategy Strategy Strategy Strategy Strategy Capital Markets Day 2021 Page 19
Slide 20: Return on Trading Assets
RETURN ON TRADING ASSETS Revenue Gross Margin Operating Cost of Sales Profit Support Costs ROTA at * Inventory 69% Working Turns Capital Debtor & Creditor Days Trading Assets Capital Expenditure Fixed Assets Ahead of budget Depreciation * H1 2021 figure. Below budget * H1 2021 figure. Metal Bellows
Slide 21: Bellows Technology a Key Differentiator
BELLOWS TECHNOLOGY A KEY DIFFERENTIATOR Materials: Diameter Range: Zero leakage through a range Stainless Steel 0.12 to 36 inches of motion in extreme High Nickel Alloys operating conditions Titanium (3.2 to 914 mm) Capital Markets Day 2021 Page 21
Slide 22: Multiple Aerospace Applications
MULTIPLE AEROSPACE APPLICATIONS Maintenance Free Accumulators and Reservoirs Engine Nacelle Seals Anti-Skid Brake Couplings Thermal Valves Water System Compressors Fuel Control Bellows Pressure Sensors Shaft Seals Bellows/Duct Assemblies Engine Fuel Drain Capital Markets Day 2021 Page 22
Slide 23: Semiconductor Equipment: A Growing Market
SEMICONDUCTOR EQUIPMENT: A GROWING MARKET Wafer Lift Precision Sealed Actuator Dynamic Seal • Pneumatically • Electric Compact Wafer Lift Driven Chamber Door Actuator Sealed Actuator • Programmable Sealed Actuator Driven • Pneumatically Position Sensing • Pneumatically Driven Driven • Optical Fibre
Slide 24: Other Diverse Markets Include Medical, Industrial & Space
OTHER DIVERSE MARKETS INCLUDE MEDICAL, INDUSTRIAL & SPACE Coolant Reservoirs Gas Lift Valve Seals 24 Implantable Pump Compressors and Reservoirs Vacuum Pumps Capital Markets Day 2021 Page 24
Slide 25: Aerospace Growth Products
AEROSPACE GROWTH PRODUCTS Hydraulic Dynamic Engine Accumulators Seals PAGE 25 | PROPRIETARY AND CONFIDENTIAL Thermal Thermal Compensators Valves Capital Markets Day 2021 Page 25
Slide 26: Semiconductor Equipment Growth Products
SEMICONDUCTOR EQUIPMENT GROWTH PRODUCTS Next Generation Ring Lifter Wafer Lift • Pneumatically Sealed Actuators Driven • Pneumatically • Programmable Driven Position Sensing • Programmable Position Sensing Next Generation Sealed Plunger Precision Assembly Dynamic Seal • Pneumatically • Electric Driv
Slide 27: Semiconductor Product Development: Servo-Pneumatic Actuators
SEMICONDUCTOR PRODUCT DEVELOPMENT: SERVO-PNEUMATIC ACTUATORS Key Performance Advantages • Elimination of friction • Single design capable of multiple speeds • Cost advantage over motor driven solutions Proportional Controller (example) Chamber Pressure Interface Regulators Continuous Position Transm
Slide 28: Engine Valve Product Development: Maintenance Free Bleed Valves
ENGINE VALVE PRODUCT DEVELOPMENT: MAINTENANCE FREE BLEED VALVES Key Performance Advantages • Temperature Exceeding 1200°F • High & Low Pressure • Extreme Vibration • Minimises Friction Bleed Valve Patented Bleed Valves Capital Markets Day 2021 Page 28
Slide 29: Core Engineering Capabilities
CORE ENGINEERING CAPABILITIES Rule based automated design Bellows finite element analysis Vibration analysis Pressure analysis Bellows optimisation Vibration testing Capital Markets Day 2021 Page 29
Slide 30: Core Engineering Capabilities
CORE ENGINEERING CAPABILITIES Computational fluid dynamics Thermal analysis Capital Markets Day 2021 Page 30
Slide 31: Manufacturing Automation
MANUFACTURING AUTOMATION Automated Inner Diameter Automated Outer Diameter Bellows Welding Bellows Welding Mitigates potential skills shortage risk Capital Markets Day 2021 Page 31
Slide 32: Manufacturing Automation
MANUFACTURING AUTOMATION Non-Round Bellows Welding Automated Cleaning Mitigates potential skills shortage risk Capital Markets Day 2021 Page 32
Slide 33: Summary – Senior Metal Bellows
SUMMARY – SENIOR METAL BELLOWS IP-rich product base with a Operating in diversified and strong growth outlook attractive end-markets Strong IP Providing custom Consistently strong engineered solutions to our financial performance customers Capital Markets Day 2021 Page 33
Slide 34: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 35: Senior Flexonics Pathway
SENIOR FLEXONICS PATHWAY Carl Armbrister Senior Flexonics Pathway, Director Of Business Development Capital Markets Day 2021
Slide 36: Agenda
AGENDA • Pathway History • Product Introduction • Sales • Differentiators and Applications • Growth Areas • Summary Capital Markets Day 2021 Page 36
Slide 37: Pathway History
PATHWAY HISTORY 2020 1999 Approximately 170 employees Senior acquires Pathway Bellows Facilities 200,000 sq. ft. (Texas and Maine) and merges with Expansion Joint Division 5% of 2020 Group revenue to form 1980 2004 2011 Senior Flexonics Expansion Joints Expansion of Texas Acquisition of WalcoMetrofl
Slide 38: Senior Flexonics Pathway DNA = Fluid Conveyance
SENIOR FLEXONICS DNA = FLUID CONYEYANCE PATHWAY
Slide 39: We Make Expansion Joints
WE MAKE EXPANSION JOINTS What are they? What do they do? Bellows Element: Expansion Joint: • Thin Walled • Bellows element (0.015” - 0.075”) • High Alloy • End connections • Convoluted • Hardware and Sheet tube accessories Function: Expansion Joints mitigate/ absorb thermal growth (100 Feet of Pipe
Slide 40: We Make Dampers
WE MAKE DAMPERS What are they? What do they do? • Can offer almost 100% Isolation • 0-50 psig depending on size • -100 to 2000°F • Horizontal or vertical Flex-Seat Butterfly Damper Tandem Louver Guillotine Damper Damper Function: a movable metal plate in a flue or chimney, used to regulate the draft
Slide 41: Annual Sales History & Strategy
ANNUAL SALES HISTORY & STRATEGY 90 80 70 5% of 60 Group Sales 50 $ million 40 30 Oil price collapse Effect of 20 Pandemic 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Forecast Strategy Strategy Strategy Strategy Strategy Capital Markets Day 2021 Page 41
Slide 42: Our Markets
OUR MARKETS 2015 2019 2020 Industrial Petrochem Industrial Petrochem Industrial 30% 33% 35% 32% 35% Petrochem 46% Power Power Power Generation Generation Generation 24% 32% 33% Balanced diversification across end markets and customers Capital Markets Day 2021 Page 42
Slide 43: Return on Trading Assets
RETURN ON TRADING ASSETS Revenue Gross Margin Operating Cost of Sales Profit Support Costs ROTA at * Inventory 194% Working Turns Capital Debtor & Creditor Days Trading Assets Capital Expenditure Fixed Assets Ahead of budget Depreciation * H1 2021 figure. Below budget * H1 2021 figure. Pathway deliv
Slide 44: Pathway's Differentiated Technology
PATHWAY’S DIFFERENTIATED TECHNOLOGY Power Generation Nuclear Natural Gas Refining Petrochemical Chemical Industrial Steam Recovery Naval Power & Exhaust Systems Coal-fired Applications DNA = Fluid Conveyance Product and Services Dampers Metallic Fabric Metallic Metallic Adjacent and In-field In-Fiel
Slide 45: Sheer Scale Sets Us Apart
SHEER SCALE SETS US APART Bellows Forming from 2” (5cm) to 202” (5.1m) diameter Damper size ranges from 12” (30cm) <40’ (12m) Capital Markets Day 2021 Page 45
Slide 46: Petrochemical Application: Propane Dehydrogenation
PETROCHEMICAL APPLICATION Propane Dehydrogenation (PDH) | Catofin • PDH is a petrochemical process in the production of propylene from propane which is the second most important starting product in the petrochemical industry after ethylene. PDH converts propane into propene and by-product hydrogen.
Slide 47: Refining Application: Fluidised Catalytic Cracking Unit
REFINING APPLICATION Fluidised Catalytic Cracking Unit (FCCU) • Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries. • It converts the high-boiling point, high- molecular weight hydrocarbon fractions of petroleum crude oils into more valuable
Slide 48: Power Generation Applications
POWER GENERATION APPLICATIONS Nuclear Natural Gas Coal Fired Marine Exhaust Expansion Joint Capital Markets Day 2021 Page 48
Slide 49: Industrial Applications & Hardware
INDUSTRIAL APPLICATIONS & HARDWARE • Building Materials Single Heat Exchanger • Mining Expansion Joint • Shipbuilding • Wastewater • Pulp & Paper • Cement Universal Guillotine Expansion Joint Hoses Capital Markets Day 2021 Page 49
Slide 50: On-Site Repairs and Replacement Installations
ON-SITE REPAIRS AND REPLACEMENT INSTALLATIONS Aftermarket sales and service • Pathway service its customers with product replacement and spares • Our team performs both off-line and hot on-line repairs and retrofits. • We also provide installations, supervision, inspections and other services for al
Slide 51: Nuclear Energy Case Study: Plant Life Extension
NUCLEAR ENERGY CASE STUDY: PLANT LIFE EXTENSION • Low-Carbon Nuclear Energy Technology BRUCE POWER: MCR PROJECT TIMELINE • Plant Life Extensions Unit 3 • Bruce Power embarks on Multi-Year Major Component Replacement Unit 4 (MCR) Unit 5 • Senior Flexonics Pathway working in Unit 6 close collaboration
Slide 52: Nuclear Energy Case Study: Small Modular Reactor
NUCLEAR ENERGY CASE STUDY: SMALL MODULAR REACTOR • Low-Carbon Nuclear Energy Technology Planned SMR New Builds in the US • Nuclear – Small Modular Reactor (SMR) • Land based SMR plants in planning and development • Mobile based SMR technology in development • Pathway supporting engineering and/ or f
Slide 53: Growth Transition
GROWTH TRANSITION • Broaden product offering • Adjacent piping • Collaboration within Senior to improve market reach and penetration • Space • Low-Carbon Energy Technology • Nuclear – Small modular reactor Wye Piping Reducer Crossover Expansion Joint (SMR) • Plant Life Extensions • Engineering Servi
Slide 54: Summary – Senior Flexonics Pathway
SUMMARY – SENIOR FLEXONICS PATHWAY Strong commitment and focus on IP-rich fluid conveyance applications Ongoing broadening of Balanced diversification product offering across end markets and customers Strong IP Large global installed base The leading innovator for of expansion joints and Catofin app
Slide 55: Expect Big Things from SF Pathway
Expect Big Things from SF Pathway
Slide 56: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 57: Question & Answer
QUESTION & ANSWER Capital Markets Day 2021
Slide 58: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 59: Technology Developments
TECHNOLOGY DEVELOPMENTS Rob Vaughan Senior Flexonics Crumlin, Managing Director Ryan Collins Senior Flexonics Bartlett, Director Of Engineering Capital Markets Day 2021
Slide 60: Key Technology Categories
KEY TECHNOLOGY CATEGORIES Three key market Segments Land Vehicle Aerospace Power and Energy Impacting two key technology trends Electrification Hydrogen Power Driven by two key product segments Thermal Management Fluid Conveyance Capital Markets Day 2021 Page 60
Slide 61: Opportunities
OPPORTUNITIES Land Vehicle Aerospace Power and Energy How Impacted? Hydrogen Hydrogen Hydrogen Electrification Electrification Electrification Power Power Power What Product Strategy ? Thermal Fluid Thermal Fluid Thermal Fluid Thermal Fluid Thermal Fluid Thermal Fluid Manag. Convey Manag. Convey Man
Slide 62: Impact Brought by Adoption of Low Carbon Technologies
IMPACT BROUGHT BY ADOPTION OF LOW CARBON TECHNOLOGIES Six megatrends identified Technological implications Overlap with Senior’s Relation to our by UN for next 5-10 years end-markets technology themes? The Net Zero Electrification Aerospace & Related to hydrogen economy Economy Defence Hydrogen comb
Slide 63: Regulatory Deadlines and Government Commitments
REGULATORY DEADLINES AND GOVERNMENT COMMITMENTS EU: all new aircraft in commuter EU: 40% of all aircraft liquid hydrogen and short-range and 50% of SAF share: 63% in EU; 75% in UK; medium-range aircraft hydrogen capacity to meet 100% demand in US 2030-2040 2050 Aerospace Net zero by 2050 Norway: Ele
Slide 64: Aerospace Net Zero Challenge
AEROSPACE NET ZERO CHALLENGE The Challenge The Solution The Impact 2x Traffic increase forecast, but A blended approach using multiple Growth through a combination of Emissions need to decrease by 50% technologies: existing & new Fluid Conveyance & SAFs / Hybrid Electric / Battery electric / Thermal
Slide 65: Land Vehicle Net Zero Challenge
LAND VEHICLE NET ZERO CHALLENGE The Challenge The Solution The Impact Legislative changes driving the A combination of powertrain Growth through a combination of decarbonization of transport: technologies to match end existing & new Fluid Conveyance & 15 Countries & 31 Cities have plans to applicati
Slide 66: Power & Energy Net Zero Challenge
POWER & ENERGY NET ZERO CHALLENGE The Challenge The Solution The Impact To meet the Paris Agreement and Significant growth in Solar, Wind & Growth through a combination of achieve net-zero emissions in 2050 Hydrogen to offset fossil fuel use. existing & new Fluid Conveyance & Hydrogen plays a signif
Slide 67: Summary
SUMMARY • Small electric aircraft will enter service in this decade Aerospace • Hydrogen technologies will be used mainly on regional routes by 2035 • SAF will likely be the most widely adopted solution • Legislation is driving the shift towards electrification of passenger cars Land Vehicle • By 20
Slide 68: Product Strategy
PRODUCT STRATEGY Create innovative products aligned with latest technology trends Capital Markets Day 2021 Page 68
Slide 69: Product Strategy
PRODUCT STRATEGY Create innovative products aligned with latest technology trends Land Vehicle Aerospace Power and Energy Capital Markets Day 2021 Page 69
Slide 70: Product Segments
PRODUCT SEGMENTS New product development efforts focused in four key areas Thermal Management Chill Plates Heat Exchangers Fluid Conveyance Tubing Expansion Joints Capital Markets Day 2021 Page 70
Slide 71: Product Development – Land Vehicles
PRODUCT DEVELOPMENT – LAND VEHICLES Electric Vehicles will use a combination of new & existing technologies for Senior. These new technologies are pushing us to explore the use of new materials & methods of manufacture. Management Product Upgrades Include: Thermal Aluminium and Copper Alloys Composi
Slide 72: Case Study: EV Inverter Heat Sinks
CASE STUDY: EV INVERTER HEAT SINKS Scenario Capability Matching Result • Sales lead inquired about ✓ Senior has developed heat transfer • Innovative design developed Senior’s ability to expertise through EGR Cooler and and patent awarded for manufacture small form other product lines. “Omega Fin”. f
Slide 73: Product Development – Aerospace
PRODUCT DEVELOPMENT – AEROSPACE Aerospace market to see significant investment in green technologies along with more efficient jet engines. Efficiency push to lead to more product cycle turns and opportunities. Management Product Innovations include: Thermal Aluminium bellows Insulated bellows Syste
Slide 74: Case Study: Aerospace Hydrogen Experimental Powertrain
CASE STUDY: AEROSPACE HYDROGEN EXPERIMENTAL POWERTRAIN Scenario Capability Matching Result • Aerospace OEM is ✓ Senior Aerospace has long • Senior Flexonics and Senior developing demonstrator standing relationship with OEM. Aerospace jointly developed units for hydrogen proposal. powertrain. ✓ Senio
Slide 75: Product Development – Power & Energy
PRODUCT DEVELOPMENT – POWER & ENERGY Power and Energy market to see significant disruption due to CO2 regulations, with the key new technology solutions relating to energy storage through batteries and hydrogen. Management Product Upgrades Include: Thermal Aluminium and Copper Alloys Air to Air Heat
Slide 76: Case Study: Power & Energy Battery Pack Design
CASE STUDY: POWER & ENERGY BATTERY PACK DESIGN Scenario Capability Matching Result • Industrial battery pack ✓ Senior Flexonics had networking • Proposal developed for both manufacturer is growing at relationships with customer, cooling plate component >30% per annum identified the opportunity and s
Slide 77: Summary
SUMMARY Aerospace • Consistent technical trends through all key markets • Synergistic product strategies to exploit these Land Vehicle opportunities • A proven track record of adaptation and expansion Power & Energy Our IP-rich product portfolio & technical expertise will deliver significant shareho
Slide 78: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 79: Financial
FINANCIAL Bindi Foyle Group Finance Director Capital Markets Day 2021
Slide 80: Group Medium-Term Outlook
GROUP MEDIUM-TERM OUTLOOK ≥ 13.5% Confident in Portfolio optimisation strategy to delivering good maximise value creation 11.1% returns on capital and enhanced shareholder value Strategic focus on IP-rich fluid conveyance and thermal management Ongoing End-Market Intrinsically strong cash Recovery a
Slide 81: Strong Operating Leverage
STRONG OPERATING LEVERAGE Ongoing End-Market Recovery across the Group with strong operating leverage With the benefits from our restructuring programme and available capacity, near-term World Passengers Flows Long-run Outlook World Vehicles Production Forecast operating leverage ranges from 25% to
Slide 82: Intrinsically Strong Cash Generation
INTRINSICALLY STRONG CASH GENERATION Revenue Gross Margin Continued cash generation Operating through: Cost of Sales Profit Support Costs Growth in operating profit Inventory Medium-term capital ROTA Turns expenditure expected to be Working Capital lower than depreciation Debtor & Creditor Days
Slide 83: Supporting Investment in R&D
SUPPORTING INVESTMENT IN R&D £m R&D expenditure 35 3% 30 Strategic focus on IP-rich 25 fluid conveyance and 2% 20 thermal management 15 requires Senior to 1% continue to invest 2-3% 10 of sales into R&D 5 expenditure 0 0% 2015 2016 2017 2018 2019 2020 R&D spend (left axis) R&D as % of sales (right a
Slide 84: Portfolio Optimisation
PORTFOLIO OPTIMISATION We continue our prune to grow strategy: divesting, closing or combining non-core or performance-challenged assets Confident that Aerostructures core market will recover, driving business performance improvement which provides strategic optionality over the medium-term Ex
Slide 85: ROCE to ROTA
ROCE TO ROTA Senior Group Operating Businesses Target = Adjusted operating profit Target = Adjusted operating profit ROCE Average Capital Employed ROTA Average Attributable Trading Assets >35% Fluid Conveyance & Thermal Target = ≥ 13.5% over Management – Aerospace Target = >30% Fluid Conveyance & Th
Slide 86: Disciplined Value Creation Framework
DISCIPLINED VALUE CREATION FRAMEWORK Revenue Gross Margin All investment decisions are Operating Profit Cost of Sales assessed in terms of: Support Costs • Strategic value to the Group ROTA Inventory • ROTA % Turns Working Capital • Return on Revenue Margin Debtor & Creditor Days • Cash Payback time
Slide 87: Agenda
AGENDA 10:30am Introduction David Squires Group CEO 10:50am Showcasing Senior Metal Bellows John Cory Senior Metal Bellows, CEO 11:20am Showcasing Senior Flexonics Pathway Carl Armbrister Senior Flexonics Pathway, Director Of Business Development 11:50am Q&A All 12:10pm Networking lunch & product vi
Slide 88: Question & Answer, Closing Remarks
QUESTION & ANSWER CLOSING REMARKS David Squires Group CEO Capital Markets Day 2021
Slide 89: Question & Answer
QUESTION & ANSWER Capital Markets Day 2021
Slide 90: Today's Key Messages
TODAY’S KEY MESSAGES Deeper insight into our strategy Focus on thermal management and fluid conveyance technology Showcase examples of businesses operating in diverse and attractive end markets Future proofing growth of the business as we transition to low carbon economy Delivering and exceeding ROC
Slide 91: Appendices
APPENDICES Capital Markets Day 2021
Slide 92: Senior plc Leadership Team
SENIOR PLC LEADERSHIP TEAM Ian King David Squires Bindi Foyle Chairman Group CEO Group Finance Director Mike Sheppard Launie Fleming CEO CEO Flexonics Division Aerospace Division Martin Barnes Andrew Bodenham Jane Johnston Director of Business Dev, Group Company Group HR Director and Strategy Secret
Slide 93: Presenters
PRESENTERS John Cory Carl Armbrister Rob Vaughan Ryan Collins Senior Metal Bellows Senior Flexonics Senior Flexonics Senior Flexonics CEO Pathway Crumlin Bartlett Director Of Business Managing Director Director of Engineering Development John Cory joined Senior Metal Carl Armbrister took up his curr
Slide 94: Group Evolution
GROUP EVOLUTION Revenue (£m) Adjusted Operating Profit (£m) Adjusted Operating Margin (%) 100 12 1200 Total after central costs 90 Total 80 after 10 1000 70 central costs 8 800 60 50 6 600 40 400 30 4 20 200 2 10 0 0 0 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018
Slide 95: Landscape for Metal Bellows
LANDSCAPE FOR METAL BELLOWS Metal Bellows Sectors/ sub- Commercial Aerospace, Defence, Industrial, Medical, sectors served Semiconductor, Space Addressable market $500M size p.a. (estimated) Key capabilities Bellows assemblies, accumulators, reservoirs, compressors/vacuum pumps, sensors, seals, ther
Slide 96: Landscape for Pathway
LANDSCAPE FOR PATHWAY Pathway Sectors/ sub- Industrial, Petrochemical, Power Gen sectors served Addressable Petrochemical: $100M market size p.a. Power Gen: $ 75M (estimated) Industrial: $100M Key capabilities Design and fabrication of custom pressure vessels, valves, field inspection, refurbishment
Slide 97: Acquisition Framework
ACQUISITION FRAMEWORK More Likely Less Likely Aerospace & Defence Semi-conductor Equipment Market Power & Energy (clean energy) Volume Automotive Land Vehicles (electrification) Medical Fluid Conveyance Products Structures / Machining Product Thermal Management Products Own design / IP products Comm
Slide 98: Our Products
OUR PRODUCTS 34% Flexonics Division Other machined parts 4% Aerospace Division 66% (28%) (6%) (72%) Industrial flexible parts 12% (11%) High pressure ducting 19% Fuel distribution (LV) 1% (21%) (1%) Off-highway hydraulics (LV) 2% (2%) Exhaust flexes (LV) 4% (2%) Engine structures Emission control (L
Slide 99: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE E S G First worldwide in our sector to have Excellent participation and Updated the Senior Group Code of emission reduction targets approved by engagement for our first group-wide Conduct in July 2021 the Science Based Targets initiative (for Global Employee