Spirax Group Plc. · LSE:SPX
Spirax — Spirax-Sarco Engineering — Shareholder Meeting (2016)
11 slides from Spirax's shareholder meeting presentation, 2016
Slide 1: Annual General Meeting
Annual General Meeting Nicholas Anderson Group Chief Executive
Slide 2: 2015 Results
2015 Results Solid set of results against a challenging background 2015 2014 Change Constant currency Revenue £667.2m £678.3m -2% +2% Operating profit £152.4m £153.0m 0% +4% Operating margin 22.8% 22.5% +30 bps +40 bps Pre-tax profit £151.1m £151.1m 0% +4% EPS 142.6p 140.4p +2% +6% DPS 69.0p 64.5p +
Slide 3: 2015 Results: Industrials sector comparison
2015 Results Industrials sector comparison Company Organic Organic Operating Operating PBT change EPS change growth 2014 growth 2015 margin 2014 margin 2015 Bodycote 4% -3% 18.2% 18.0% -8% -10% GKN 4% 2% 9.2% 8.8% -2% -5% IMI 2% -5% 17.5% 15.2% -21% -20% Melrose -3% -17% 20.0% 14.3% -107% -3% Morgan
Slide 4: Global economic slowdown
Global economic slowdown Annual IP growth rates by quarter 2012-2016 Actual Projected 5.0% Developed (OECD) Feb 16 Emerging (Non-OECD) Feb 16 Global Feb 16 Developed (OECD) Jun 15 Emerging (Non-OECD) Jun 15 Global Jun 15 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% Source: CHR Economics – June 15 & Feb 16 -2.0% Q
Slide 5: Currency headwinds
Currency headwinds Impact on: 2014 2015 combined Sales 6.4% 3.6% 10.4% Profit 10.2% 4.1% 14.7% Average exchange rates 2013 2014 % 2014 2015 % Spirax weighted index 100.0 106.8 -6% 100.0 103.8 -4% Bank of England index 81.7 87.1 -6% 87.1 91.4 -5% US$ 1.57 1.65 -5% 1.65 1.53 8% Euro 1.18 1.24 -5% 1.24
Slide 6: Implementing our strategy for growth
Implementing our strategy for growth Notable progress in 2015 • Stepped up training and development; new Spirax Sarco Academy • Implementing enhanced Customer Value Propositions • Increased sector focus: Food & Bev., Healthcare, Chemical, OEMs • Growth of Controls & Thermal Energy Management product
Slide 7: Investing for growth
Investing for growth Spirax Sarco India • £12 million investment • Headquarters in Chennai, offices in Mumbai and Delhi • 40 people; 35% sales, 40% operations • Building complete and operational, official opening in June Chennai 7
Slide 8: Our global coverage and expansion
Our global coverage and expansion 77 operating units* in 43 countries * Operating units include operating companies, branches and Associate, at time of publication Spirax Sarco Egypt, trading January 2015 Flow Smart, USA, acquired Control Valve Asepco, USA, November 2015 Engineering Ltd, acquired Ap
Slide 9: Operating margin improvements
Operating margin improvements Not at the expense of growth • Margin improvements not at the Operating margin expense of growth 33.0% • Focus on improved performance 31.0% though: 29.0% 27.0% - price management 25.0% - efficiency improvements 22.8% 23.0% 22.0% 22.5% - cost reductions 20.6% 20.6% 21.0
Slide 10: AGM statement
AGM statement For the 4 months ending 30th April Trading conditions Performance Outlook • Organic sales growth • Global industrial production (IP) • Global IP remains uncertain maintained at 2015 levels growth around zero • We remain focused on our • Operating profit ahead • Small deterioration in D
Slide 11: Questions?
Spirax-Sarco Engineering plc Questions?
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