Slide 1: 2020 Preliminary Results
IMI plc 2020 Preliminary Results Roy Twite – Chief Executive Daniel Shook – Finance Director
Slide 2: Key Messages
IMI plc Key Messages Adjusted profit before tax improved 9%, margins improved in all 3 divisions Customer-focused organisation responding well to market changes Reducing complexity: £33m restructuring benefits delivered Investing in future growth through the sprint teams Assuming no worsen
Slide 3: Business review
IMI plc Business review Daniel Shook – Finance Director
Slide 4: Organic revenue and operating profit
IMI plc Organic revenue and operating profit £m 12 months to 31 December 2020 12 months to 31 December 2019 Adjusted Adjusted Organic Adjusted Foreign Organic Growth (%) Growth (%)* Exchange Revenue IMI Precision Engineering 877 -3% -3% 907 (1) 906 IMI Critical Engineering 643 -1% -4% 651 (1) 650 IM
Slide 5: Income statement
IMI plc Income statement £m 2020 2019 Adjusted operating profit 284.7 266.1 Net interest expense lower due to the Net interest expense (11.0) (14.9) repayment of US$100m loan notes in the second half of 2019 and one-off Net pension finance income/(expense) 0.2 (0.5) £0.5m benefit of interest on ta
Slide 6: Rationalisation plans
IMI plc Rationalisation plans £m 2019* 2020 2021 Future years Overall Restructuring charge programme (including impairment losses) IMI Precision Engineering (20) (8) (47) (5) (80) IMI Critical Engineering (19) (26) (11) (3) (59) IMI Hydronic Engineering - (5) (1) - (6) Total charge (excluding Corpor
Slide 7: Operating cash flow
IMI plc Operating cash flow £m 2020 2019 Adjusted operating profit 285 266 Strong cash delivered in 2020 Depreciation & amortisation 65 59 Debtor reduction reflects continued focus on improving cash collection Lease depreciation 30 32 Capital expenditure of £51m represents EBITDA (from continu
Slide 8: Net cash flow
IMI plc Net cash flow £m 2020 2019 Adjusting Operating cash flow 335 299 Adjusting items reflect £37m of restructuring spend Adjusting items (37) (26) Interest (11) (15) Adverse currency impact on net debt of £19m Derivatives (23) 16 Tax paid (41) (40) Dividend outflow lower due to mid-year re
Slide 9: IMI Precision Engineering operational review
IMI plc IMI Precision Engineering operational review Sales by £m 2020 FX Organic 2019 business unit* Adjusted Adjusted Motion Control £398m Down 11% Adjusted Revenue 877 (1) (29) 907 Factory Automation £361m Down 11% Organic Growth -3% -3% Rail £37m Down 13% Operating Profit 151.4 0.3 3.1 148.0 Flui
Slide 10: IMI Critical Engineering operational review
IMI plc IMI Critical Engineering operational review Order input by sector** £m 2020 Acq’n FX Organic 2019 Oil & Gas £134m Up 9% Adjusted Adjusted New Construction £89m Up 25% Aftermarket £45m Down 13% Refining & £177m Down 20% Adjusted Revenue 643 19 (1) (26) 651 Petrochemical New Construction £87m
Slide 11: IMI Hydronic Engineering operational review
IMI plc IMI Hydronic Engineering operational review £m 2020 FX Organic 2019 Sales by sector Adjusted Adjusted IMI TA £146m Down 4% Adjusted Revenue 305 2 (12) 315 IMI Heimeier £95m Down 2% Organic Growth -4% 3% IMI Pneumatex £51m Down 1% Operating Profit 55.7 2.0 (3.0) 56.7 Other £13m Down 13% Opera
Slide 12: Group outlook
IMI plc Group outlook Assuming no worsening of the current Coronavirus impact, we expect 2021 adjusted EPS to be 75p to 82p Including currency headwind of 3% on sales and profits 12
Slide 13: Strategy update
IMI plc Strategy update Roy Twite – Chief Executive
Slide 14: Business model evolution
IMI plc Our purpose Breakthrough Engineering for a better world Business model evolution Our vision IMI will create tremendous value by solving key industry Clear purpose, values and vision problems in attractive markets and working with the best Placing customers at the heart of all we do Foc
Slide 15: Delivering value today
IMI plc Our purpose Breakthrough Engineering for a better world Delivering value today Our vision IMI Precision IMI will create tremendous value by solving key industry problems in attractive markets and working with the best Friends in Adversity campaign to broaden relationships and opportuniti
Slide 16: Creating value tomorrow
IMI plc Our purpose Breakthrough Engineering for a better world Creating value tomorrow Our vision IMI will create tremendous value by solving key industry problems in attractive markets and working with the best IMI Precision Patented technology to provide a much more efficient machining fixtur
Slide 17: Towards divisional margin targets
IMI plc Towards divisional margin targets Target: 20% top of cycle Target: 17% to 20% Target: 20% 2020: 17.3% (+100bps) 2020: 16.6% (+280bps) 2020: 18.3% (+30bps) £35m annualised benefits from £43m annualised benefits from £3m annualised benefits from footprint optimisation (£14m still footpri
Slide 18: Environment, Social & Governance
IMI plc Environment, Social & Governance Accidents reduced by 9% Employee satisfaction score of 85% for “looking after our people during the pandemic” 35 graduates recruited, 10 countries, 56% women “AA” ESG rated by MSCI Commitment to halve carbon dioxide intensity from factories by 2030
Slide 19: Summary
IMI plc Summary Crisis being managed effectively, underlying business improving Increasing focus on employee engagement and customer satisfaction Adjusted profit before tax up 9% on 2019, margins improved in all three divisions Increased investment in creating growth £6m orders from Growth
Slide 20: Q&A
IMI Q&A
Slide 21: Appendices
IMI Appendices
Slide 22: 2021 Indicative Earnings Waterfall
IMI plc 2021 Indicative Earnings Waterfall 79.7p 75p - 82p 22
Slide 23: Foreign exchange
IMI plc Foreign exchange 2020 2019 Change Average Rates Euro 1.13 1.14 -1% Ready Reckoner for translation impact of movement in FX US Dollar 1.28 1.28 0% rates on 2020 FY Performance Dec-20 Dec-19 Change Sensitivity to +/- 1 cent Closing Rates move in: Revenue Operating Profit Euro 1.12 1.18 -5% US
Slide 24: Pensions
IMI plc Pensions £m Dec Dec 2020 2019 Total Position: UK scheme remains in surplus following de-risking exercises Liabilities (741) (655) Proactive management of overseas Assets 719 624 schemes, though slightly higher deficit due Deficit (22) (31) to lower discount rates UK Schemes: Liabilities
Slide 25: 2019 sales & orders reclassifications
IMI plc 2019 sales & orders reclassifications IMI Precision Sales Reclassification £m New Segmentation: 2019 Motion Factory Rail Fluid Life Process Energy Commercial Old Segmentation: Total Control Automation Technologies Sciences Control Vehicle Industrial Automation 509 398 398 111 7 98 6 Commerci
Slide 26: This document may contain forward-looking statements that may or may not prove accurate. For
IMI plc This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and operating margins, market trends and our product pipeline are forward-looking statements. It is believed that the expectations reflected in t