Renishaw Plc · LSE:RSW
Renishaw — FY2010 Earnings Presentation
25 slides from Renishaw's earnings presentation, Jul 28, 2010
Slide 1: 2010 results
apply innovationTM efg 2010 results 28th July 2010 Slide 1
Slide 2: Chairman's statement
apply innovationTM Chairman’s statement I am very pleased to announce the results for the year to 30th June 2010. This year has been characterised by a welcome return to growth, with an accelerating order intake culminating in record final quarter sales. Operating results Revenues continued to incre
Slide 3: Chairman's statement (continued)
apply innovationTM Chairman’s statement (continued) On 23rd July 2010 the Group acquired a 29% shareholding in Measurement Devices Limited (MDL) for the sum of £2.3m. An agreement provides for the further purchase of the balance of the shares over a period of four years. MDL is a metrology company b
Slide 4: Chairman's statement (continued)
apply innovationTM Chairman’s statement (continued) Year end net cash balances amounted to £31.1m (2009 £20.5m). Despite an improving investment performance, the deficit in the pension fund (which has been closed to future accrual since 2007) has increased to £37.3m (£22.5m at 30th June 2009) reflec
Slide 5: Financial highlights
apply innovationTM Financial highlights 2010 2009 change £m Adjusted profit before tax £m £m % % of sales 50 30 41.7 38.1 Sales 40 32.7 At actual exchange rates 181.6 171.2 +6% 28.7 20 30 At previous year exchange rates 173.5 171.2 +1% 20 8.8 10 Adjusted operating profit 10 At actual exchange rates
Slide 6: Profit and loss account
apply innovationTM Profit and loss account 2010 2009 change £m % £m % % Sales 181.6 100 171.2 100 +6% Cost of sales (excl. Engineering) Cost of sales (65.3) (36) (67.4) (39) -3% Engineering (incl R&D) (28.6) (16) (33.7) (20) -15% £m % of sales 80 74.2 60 68.4 67.4 65.3 Gross profit 87.7 48 70.1 41 +
Slide 7: Profit and loss account
apply innovationTM Profit and loss account £m Engineering costs % of sales •Engineering costs (including R&D): 40 35.4 35.9 40 2010 2009 29.3 31.1 30.9 30 30 •Total spend £30.9m £35.9m 20 20 •Less capitalised £2.3m £2.2m 10 10 •Remaining in P&L £28.6m £33.7m 0 0 •Gross decrease -14% 2006 2007 2008 2
Slide 8: Profit and loss account
apply innovationTM Profit and loss account £m Administrative expenses % of sales 25 22.6 40 •Administrative expenses: 20.4 21.4 19.9 18.7 •2009 included £1.4m legal costs relating to 20 30 previous patent infringement case in USA. 15 20 10 •Costs increased by £0.1m due to different 10 5 exchange rat
Slide 9: Profit and loss account
apply innovationTM Profit and loss account Adjusted earnings per share Dividend per share £m pence 50 45.9 30 41.9 25.39 35.9 25 21.78 22.87 40 31.6 20 17.63 17.60 30 15.07 15.82 13.60 15 20 7.76 9.3 10 6.71 7.05 7.76 7.76 10 4.00 5 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Year Year Fir
Slide 10: Expense cost control
apply innovationTM Expense cost control Expenses management controls •Headcount and labour •Voluntary 20% pay reduction reinstated with effect from late September 2009 onwards and special bonus provided at year-end to cover reimbursement of July to September reduction •Total labour cost for the year
Slide 11: Revenue analysis
apply innovationTM Revenue analysis Revenue £m •Revenue up 6% at actual exchange rates and up 1% at 250 201.2 previous year’s exchange rates 200 175.8 180.9 171.2 181.6 150 •Revenue favourably affected by £8.1m when compared 100 with the previous year’s exchange rates 50 0 •Segmental analysis 2006 2
Slide 12: Revenue analysis
apply innovationTM Revenue analysis Revenue by region •Changes in geographic areas: 2010 2009 2010 2009 6% 7% Other 3% 3% UK At act fx At p/y fx Europe •Far East +37% +27% 2010 2009 America 29% 37% •Americas +3% -2% 2010 2009 23% 23% •UK -5% -5% •Europe -18% -19% Far East 2010 2009 39% 30% Notes Sli
Slide 13: Group revenue
apply innovationTM Group revenue 2010 2009 change at p/y fx change favourable Average fx rates £m £m % £m % fx (£m) 2010 2009 Far East 71.1 52.0 +37% 65.9 +27% 5.2 JPY/USD USD 1.58 1.60 Continental Europe 52.1 63.2 -18% 51.3 -19% 0.8 EUR JPY 143 159 EUR 1.14 1.17 America (North & South) 41.5 40.1 +3
Slide 14: Group revenue - Metrology
apply innovationTM Group revenue - Metrology Revenue by region 2010 2009 change £m £m % Far East 64.2 47.5 +35% 2010 2009 2010 2009 Other 3% 3% UK Continental Europe 46.9 57.0 -18% 5% 5% Europe America (North & South) 38.0 36.4 +4% America 2010 2009 29% 37% UK 8.0 8.0 - 2010 2009 23% 24% ROW 5.0 4.0
Slide 15: New product releases - Metrology
apply innovationTM New product releases - Metrology OLP40 and RMP40 QC20-W RLP40 lathe compact radio Wireless probes transmission ballbar spindle probe RMP40 lathe probe module and with LP2 probe attached OMM-2 and OSI modulated transmission dual receiver interface system for machine tool systems No
Slide 16: New product releases - Metrology
apply innovationTM New product releases - Metrology Axiset™ Check-up UCCsuite V4.3 Software HPGA high precision (and on machine) Release, providing improved arm for grinding REVO capability. applications New PH10 with improved repeatability Specification and modern Aquablast look. New SM25-5 module
Slide 17: New product releases - Metrology
apply innovationTM New product releases - Metrology Dual output interface for TONiC™ range of DSi dual signal interface for TONiC™ encoders provides offers better than ±1 arc second TONiC™ UHV (ultra- simultaneous digital total installed accuracy high vacuum) encoder quadrature and system analogue 1
Slide 18: Metrology awards
apply innovationTM Metrology awards •At the prestigious MWP Awards Dinner held in Birmingham, UK, on 8th June 2010, Renishaw plc was honoured with two awards for product excellence. The awards, which are often referred to as the UK metalworking industry’s ‘Oscars’, were achieved against strong compe
Slide 19: Group revenue - Healthcare
apply innovationTM Group revenue - Healthcare Revenue by region 2010 2009 change £m £m % Far East 6.8 4.5 +51% 2010 2009 2010 2009 5% 4% Other 17% 17% Continental Europe 5.3 6.4 -17% UK Europe 2010 2009 America (North & South) 3.5 3.6 -3% 25% 35% 2010 2009 UK 2.6 3.2 -19% 20% 20% America ROW 1.3 0.7
Slide 20: Investments - Healthcare
apply innovationTM Investments - Healthcare •Healthcare investment •Further investment (£1.1m) in Renishaw Diagnostics Limited (formerly D3 Technologies Limited), which specialises in the development, manufacture and distribution of molecular diagnostics and surface enhanced Raman spectroscopy produ
Slide 21: Dental developments
apply innovationTM Dental developments •collaboration with Biomet 3i, an industry leader in implant dentistry and a subsidiary of Biomet, Inc., to offer comprehensive digital solutions to dental professionals and patients worldwide. •These digital solutions offered by Renishaw and Biomet 3i include:
Slide 22: Cash flow from operating activities
apply innovationTM Cash flow from operating activities 2010 2009 £m £m Profit before tax 27.1 4.7 Cash from operating activities Depreciation & amortisation 14.5 14.8 £m Financial income & expenses (0.2) (2.5) Share of profits from associates (0.5) (0.3) 50 46.9 Loss/(profit) on assets sales - 0.1 4
Slide 23: Cash flow
apply innovationTM Cash flow 2010 2009 Bank balance £m £m Cash from operating activities 24.5 31.5 £m Interest received less paid 0.1 0.9 38.2 40 Dividends paid (2.9) (15.6) 30.7 31.1 30 Fixed assets purchased (net) (2.7) (10.8) 20.8 20.5 Intangible assets acquired (0.2) (7.5) 20 Development costs c
Slide 24: Balance sheet
apply innovationTM Balance sheet June June 2010 2009 change £m £m % Property, plant & equipment 70.5 73.6 -4% Intangible assets & investments 33.8 34.8 -3% Deferred tax assets 20.1 14.1 +43% Derivatives 4.0 4.0 - Total non-current assets 128.4 126.5 +1% Inventory 30.9 29.2 +6% Debtors 53.6 30.0 +79%
Slide 25: Capital expenditure and Investments
apply innovationTM Capital expenditure and Investments Capital expenditure •Total capital spend £2.9m (2009 £11.0m), of which £0.6 was on property, £1.8m on plant and £m £0.5m on vehicles 15 13.2 11.0 9.7 10 •Property additions – India expansion 5.3 2.9 5 •Future commitments – 0 2006 2007 2008 2009