Weir Group PLC · LSE:WEIR
Weir — The Weir Group — FY2005 Earnings Presentation
28 slides from Weir's earnings presentation, Mar 21, 2006
Slide 1: 2005 Full Year Results
Excellent The Weir Group PLC Analysts Presentation Excellent The Weir Group PLC Engineering London, 21 March 2006 Engineering Solutions Solutions 2005 Full Year Results
Slide 2: Agenda
The Weir Group PLC Excellent Engineering Solutions Agenda Introduction & Financial Highlights Sir Robert Smith Financial review Chris Rickard Input and Operational review Mark Selway Outlook Mark Selway Questions and Answers All 2
Slide 3: Financial Highlights 2005
The Weir Group PLC Excellent Engineering Solutions Financial Highlights 2005 2005 Group Results - Continuing Operations 2005 Variance Consolidated £m % Order Input (1) 893.7m Up 8.1% Revenue 789.4m Up 14.4% Profits from Operations (2) 66.3m Up 12.3% Pre-tax profit (2) 62.2m Up 11.2% Earnings per sha
Slide 4: Financial Summary
Excellent The Weir Group PLC Analysts Presentation Excellent The Weir Group PLC Engineering London, 21 March 2006 Engineering Solutions Solutions 2005 Full Year Results Financial Summary
Slide 5: Consolidated Profit and Loss
The Weir Group PLC Excellent Engineering Solutions Consolidated Profit and Loss £m 2005 2004 Revenue – Continuing Operations 789.4 690.1 Group Operations 57.1 52.0 JVs / Associates 9.2 7.0 Profit from Continuing Operations 66.3 59.0 Restructuring Costs (24.7) - Operating Profit 41.6 59.0 Net Interes
Slide 6: Discontinued Operations Profit and Loss
The Weir Group PLC Excellent Engineering Solutions Discontinued Operations Profit and Loss 2005 2004 £m £m Discontinued Discontinued Revenue 34.3 48.6 Loss before tax (1.5) (0.5) Tax (0.1) - Loss after tax (1.6) (0.5) Gain on disposals 3.9 - 2.3 (0.5) 6
Slide 7: Divisional Split
The Weir Group PLC Excellent Engineering Solutions Divisional Split Revenue Operating Profit (1) (2) (2) Continuing Operations 2005 2004 2005 2004 £m £m £m £m Engineering Products 505.6 446.5 42.3 32.2 Engineering Services 215.4 206.5 13.1 21.2 Defence, Nuclear & Gas 68.4 54.9 6.8 3.9 Central costs
Slide 8: Reconciliation of Tax Rate
The Weir Group PLC Excellent Engineering Solutions Reconciliation of Tax Rate 2005 2004 Profit before tax 37.5 55.9 Adjustments Restructuring costs 24.7 - JV and associate tax 3.2 2.5 Adjusted profit before tax 65.4 58.4 Tax 13.8 11.3 Adjustments JV and associate tax 3.2 2.5 Adjusted tax 17.0 13.8 T
Slide 9: Cash Flow
The Weir Group PLC Excellent Engineering Solutions Cash Flow 2005 2004 £m £m Profit from operations - continuing 57.1 52.0 Profit from operations - discontinued (0.7) (0.2) 56.4 51.8 Depreciation & amortisation 17.0 15.2 Working capital (5.4) (1.1) Other 3.3 1.1 Cash generated by operations 71.3 67.
Slide 10: Cash Flow
The Weir Group PLC Excellent Engineering Solutions Cash Flow 2005 2004 £m £m Net Cash generated from Operations 36.8 46.1 Net Interest (6.4) (2.1) Net Dividends paid (22.6) (20.4) Capital expenditure (25.4) (23.8) Acquisitions / Disposals (61.1) 3.9 Purchase of Treasury shares (10.7) - Issue of shar
Slide 11: Balance Sheet
The Weir Group PLC Excellent Engineering Solutions Balance Sheet Dec 2005 Dec 2004 £m £m Goodwill 160.2 111.0 Non Goodwill Intangibles 27.3 3.7 Net Tangible Assets 241.5 233.3 Gross Pension Deficit (61.6) (95.3) Net (Debt) / Funds (76.4) 12.6 Net Assets 291.0 265.3 Shareholder’s Funds 291.0 265.3 11
Slide 12: Foreign Exchange
The Weir Group PLC Excellent Engineering Solutions Foreign Exchange Translation 2005 2004 average average Movement rate rate Currency USD 1.81 1.83 -0.9% AUD 2.39 2.49 -4.1% EUR 1.47 1.47 - Impact of IAS 39 Value of Impact currency on transaction Group s £m £m Transactions hedged - not hedge account
Slide 13: Re-Organisation 2005
The Weir Group PLC Excellent Engineering Solutions Re-Organisation 2005 2005 2004 1. Trading Performance £m £m Revenue 82.1 104.1 Operating Loss (6.2) (7.3) 2. Restructuring Costs £m £m P&L Charge 24.7 - Cash Utilisation 16.6 - Non Cash Costs 3.3 - Provision remaining 4.8 - 13
Slide 14: Operational Review
Excellent The Weir Group PLC Analysts Presentation Excellent The Weir Group PLC Engineering London, 21 March 2006 Engineering Solutions Solutions 2005 Full Year Results
Slide 15: Order Input by Division - Continuing Operations
The Weir Group PLC Excellent Engineering Solutions Order Input by Division - Continuing Operations (1) Consolidated 2005 2004 Variance £m £m % Engineering Products 559.7 502.2 +11.5% Engineering Services 221.9 211.9 +4.7% Defence, Nuclear & Gas 112.1 112.4 -0.3% Total 893.7 826.5 +8.1% Engineering P
Slide 16: Order input by geographic location
The Weir Group PLC Excellent Engineering Solutions Order input by geographic location (1) (Continuing Operations) 2005 2004 Variance £m £m % Americas 323.4 281.8 +14.8% United Kingdom 127.5 151.8 -16.0% Europe & FSU 81.9 90.3 -9.3% Middle East / Africa 114.3 76.7 +49.0% Indo Pacific 157.5 142.4 +10.
Slide 17: Order input by sector
The Weir Group PLC Excellent Engineering Solutions Order input by sector (1) (Continuing operations) 2005 2004 Variance 2005 Input £m £m % General industrial 162.1 135.6 +19.5% General Water & Naval & marine 10.5% industrial waste water 18.1% Minerals processing 262.7 229.0 +14.7% 6.5% Oil & gas 168
Slide 18: Weir Engineering Products Division: On Target
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Products Division: Minerals – Clear Liquid – Valves & Controls Engineering Engineering Products Products Combined Combined Activities Activities UK UK Restructuring Restructuring 2005 Performance Consolidated 2005 2004 Variance £m £
Slide 19: Weir Engineering Products Division: Minerals – Clear Liquid – Valves & Controls
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Products Division: Minerals – Clear Liquid – Valves & Controls Combined Combined Activities Activities Beijing sales / sourcing office Shanghai sales / sourcing office Suzhou Minerals + Valves 19
Slide 20: Weir Engineering Products Division Minerals - 2005 performance
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Products Division Minerals - 2005 performance Input History (at constant 2005 exchange rates) 350 300 250 £m 200 150 100 Minerals Copper mining 50 Geho Product for China in Poland 0 2001 2002 2003 2004 2005 £m 192.2 204.5 229.7 274.
Slide 21: Weir Engineering Products Division Clear Liquid - 2005 performance
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Products Division Clear Liquid - 2005 performance Input History 200 (at constant 2005 exchange rates) 150 £m 100 50 Weir Gabbioneta product Weir Specialty Pumps in the Middle East 0 on exhibition 2001 2002 2003 2004 2005 £m 172.6 15
Slide 22: Weir Engineering Products Division Valves & Controls - 2005 performance
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Products Division Valves & Controls - 2005 performance Input History 80 (at constant 2005 exchange rates) 70 60 50 £m 40 30 20 WVC UK relocated to 10 UK Valves new premises 0 product 2001 2002 2003 2004 2005 £m 70.1 56.4 58.0 73.8 5
Slide 23: Weir Engineering Services Division 2005 performance
The Weir Group PLC Excellent Engineering Solutions Weir Engineering Services Division 2005 performance Input History 250 (at constant 2005 exchange rates) 200 150 £m 100 50 Services in the 0 Western Australian 2001 2002 2003 2004 2005 Middle East opportunities £m 157.7 181.5 195.3 211.9 221.9 80 60
Slide 24: Weir Defence, Nuclear & Gas Division 2005 performance
The Weir Group PLC Excellent Engineering Solutions Weir Defence, Nuclear & Gas Division 2005 performance Input History (at constant 2005 exchange rates) 100 75 £m 50 25 0 Weir LGE 2001 2002 2003 2004 2005 Weir Strachan gas storage & Henshaw £m 60.7 29.4 49.5 112.4 112.1 100 Sector Summary 75 £m 50 2
Slide 25: Weir Joint Ventures & Associates: Devonport Management Limited
The Weir Group PLC Excellent Engineering Solutions Weir Joint Ventures & Associates: Devonport Management Limited 2005 Revenue from Joint Ventures and Associates - £123.7 Damman Joint Ventures Abu Dhabi Devonport Royal Associates Weir Joint Ventures Docklyard In the Middle East 150 Weir Share of DML
Slide 26: 2005 Weir Group Scorecard
The Weir Group PLC Excellent Engineering Solutions 2005 Weir Group Scorecard 9 Significant progress in input, revenue & profits INPUT REVENUE PROFITS up 8.1% up 14.4% up 12.3% 9 Restructuring Clear & Valves of UK operations: 9 Disposal businesses of Techna water treatment 9 Gabbioneta integrated suc
Slide 27: Outlook
The Weir Group PLC Excellent Engineering Solutions Outlook Engineering Products Division - growth expected in revenue, margins and profits. Minerals – progress will continue due to buoyant commodity markets, new products and operational improvements. Clear – improved results based on growth in n
Slide 28: 2005 Full Year Results
Excellent The Weir Group PLC Analysts Presentation Excellent The Weir Group PLC Engineering London, 21 March 2006 Engineering Solutions Solutions 2005 Full Year Results