Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — Shareholder Meeting (May 2014)
15 slides from Morgan Advanced Materials's shareholder meeting presentation, May 9, 2014
Slide 1: Fire
Fire fama | EN : Ve exit MMorgan [IL Acvenced Materials
Slide 2: 2013 Full Year Financial Results
2013 Full Year Financial Results AGM 9th May 2014 www.morganadvancedmaterials.com
Slide 3: EBITA margin improved year-on-year and full-year dividend up 5%
EBITA margin improved year-on-year and full-year dividend up 5% FY13* FY12 % Change Restated £m £m Revenue 957.8 1,007.5 -4.9% EBITA before restructuring** 119.0 120.9 -1.6% EBITA margin % before restructuring** 12.4% 12.0% EBITA after restructuring*** 108.5 107.7 +0.7% EBITA margin % after restruct
Slide 4: Exchange rates: sterling has strengthened against all major currencies during H2 2013
Exchange rates: £ sterling has strengthened against all major currencies during H2 2013 FY 2013 FX impact of FY 2013 H2 2013 Reported using 2013 at 2013 at 2013 (average rates) closing rates closing rates closing rates £m £m £m £m Revenue 957.8 (44.2) 913.6 456.5 EBITA before restructuring** 119.0 (
Slide 5: Strategy update and key themes for 2014
Strategy update and key themes for 2014 5
Slide 6: Strategy update – key themes
Strategy update – key themes • Building sustainable competitive advantage in attractive markets… • …with truly, differentiated products underpinned by world- leading technology • Our goal is for all of our businesses and technologies to have the potential to deliver mid-teen EBITA margins… • …target
Slide 7: Portfolio reshaping a key priority for 2014
Portfolio reshaping a key priority for 2014 • Electrical carbon • Seals and bearings • IFB/castables • C&DS advanced composites 60% 35% • Fibre • Piezo ceramics 5% • Brazed alloys and assemblies • Ceramic cores • C&DS – logistics support • Structural ceramics • Lithium ion • MMS • Other small busine
Slide 8: Enhancing margins of businesses currently below mid-teen margin target range
Enhancing margins of businesses currently below mid-teen margin target range Change in 2013 EBITA margin % Electrical carbon 35% Seals and bearings C&DS advanced composites IFB/castables • Margin progress made on three of the four businesses in this high single digit to double digit margin category
Slide 9: Targeting both revenue growth and further margin increase in differentiated businesses
Targeting both revenue growth and further margin increase in differentiated businesses Thermal Ceramics EBITA margin % 16.0% 15.2% 13.0% 12.0% 60% 8.0% 4.0% 0.0% H2 2012 H2 2013 • Positive mix shift with ongoing rollout of Superwool® fibre: overall fibre business margins now into high-teens • Good g
Slide 10: Investing in innovation and profitable growth
Investing in innovation and profitable growth R&D investment £m • R&D investment now c.2.5 25.0 times higher than it was in 2006 20.0 • R&D investment increased once more in 2013 both in 15.0 absolute terms and as a % of revenue (2013: 2.1%, 2012: 1.9%) 10.0 • New Group Chief Technology Officer (CTO
Slide 11: Significant increase in engineering and future leadership talent
Significant increase in engineering and future leadership talent • Increasing investment in graduates as part of the Graduate Leadership Programme Global graduate intake 40 31 30 26 20 20 10 0 2012 2013 2014 planned • Advanced Development Programme for future management – regional winner of 2013 “In
Slide 12: Summary and outlook
Summary and outlook Mark Robertshaw 12
Slide 13: Summary
Summary • 190bps margin progression – H2 2012 11.0%, H2 2013 12.9% • The new streamlined Group organisation structure announced last year now well embedded and driving an accelerated pace of change and increased level of ambition • Continued investment in world-leading technology and innovation to e
Slide 14: Indexed Total Return
Morgan total shareholder returns vs peers and UK indices 400% Performance (%) 3M 6M 1Y 3Y 5Y Morgan Advanced Materials 9.4 % 11.4 % 30.3 % 20.0 % 224.1 % Carbon Graphite Materials Index¹ 4.5 2.9 21.4 (36.3) 1.6 Ceramics Index² 3.5 3.4 15.9 9.2 125.9 350% FTSE 350 5.5 3.3 10.5 28.0 98.6 FTSE Electron
Slide 15: Outlook
Outlook • Our expectation for 2014 is that end-market conditions overall remain similar to those of 2013 • Key areas of focus for 2014: • positive mix shift • active portfolio reshaping • operational improvements • continued investment in innovation and differentiation to drive profitable growth Amb
Morgan Advanced Materials — Shareholder Meeting (May 2014) on 6ix