Slide 1: Capital Markets Event
Capital Markets Event 22nd October 2012 Capital Markets Event 1
Slide 2: Agenda
Agenda 16.40 Welcome Mark Rollins 16.45 Q3 IMS Simon Nicholls 17.05 Introduction Mark Rollins 17.20 Flexonics Division Overview Mike Sheppard 17.35 Senior Flexonics Bartlett Joe Mockus 17.50 Senior Flexonics Pathway Dorian Shillingford 18.05 Senior Flexonics Germany Andreas Brand 18.20 Summary Mark
Slide 3: Q3 IMS
Q3 IMS (Simon Nicholls) 22nd October 2012 Capital Markets Event 3
Slide 4: Q3 Interim Management Statement
Q3 Interim Management Statement Performance Q3 trading positive and in line with expectations £68m net debt at end Q3 - £25m reduction in year Aerospace Boeing/Airbus ytd deliveries up 16%. Orders ahead of deliveries 23 B787s delivered ytd– production ramp up on plan Business and regional jet market
Slide 5: Introduction
Introduction (Mark Rollins) 22nd October 2012 Capital Markets Event 5
Slide 6: Purpose of the Event
Purpose of the Event To provide a better understanding of: What makes Senior tick; The Flexonics Division’s products, capabilities and facilities; The nature of Senior’s future opportunities in these areas; and The management Senior has to deliver on such opportunities. & to answer any questions you
Slide 7: What is Senior
What is Senior International manufacturing Group with 29 operations in 13 countries Market-leading engineering solutions provider for OEMs in the worldwide aerospace, defence, land vehicle and energy markets Operates through two reporting (three management) Divisions: Aerospace (Fluid Systems & Aero
Slide 8: Group Structure
Group Structure Attending this evening 22nd October 2012 Capital Markets Event 8
Slide 9: Senior's Locations
Senior’s Locations (sold Oct 12) 22nd October 2012 Capital Markets Event 9
Slide 10: H1 2012 Group Performance
H1 2012 Group Performance H1 2012 H1 2011 Change Revenue £377.2m £315.6m +20% Adjusted Operating Profit £50.7m £43.0m +18% Adjusted Operating Margin 13.5% 13.6% - Revenue Operating Profit Headcount (6,052) 12.4% ROS 13.6% ROS 33% 29% 38% 36% 33% 41% 34% 30% 26% 19.1% ROS Aerospace – Structures Aeros
Slide 11: Group Markets (H1 2012)
Group Markets (H1 2012) 3% Other Industrial (4%) 3% Petrochemical (4%) 4% Heating, Ventilation & Solar (5%) 32% Large Commercial Aircraft (24%) 7% Power & Energy (6%) 36% Flexonics (40%) 64% Aerospace (60%) 9% Passenger Vehicles (13%) 10% Truck & Off-Highway (8%) 6% Other Aerospace Division (8%) 16%
Slide 12: Flexonics Overview
Flexonics Overview (Mike Sheppard) 22nd October 2012 Capital Markets Event 12
Slide 13: Senior Flexonics: Michael Sheppard, CEO
Senior Flexonics Michael Sheppard, CEO • US Citizen, located Bartlett, IL USA • Senior Flexonics CEO 12 years • Senior Plc Board 2002-2009 • Senior Flexonics – Bartlett VP/GM 1994-2000 • Senior Flexonics BUD & Dir. Of Engineering • Graduated from University of Arkansas – BSME • Business Philosophy •
Slide 14: Senior Flexonics Facilities Overview
Senior Flexonics Facilities overview UK Rickmansworth H.O Canada SF Crumlin SF Canada Business % H1 12 Germany SF GmbH sales Czech Republic 1 Bartlett 31 Illinois SF Olomouc 2 Pathway 18 SF Bartlett Texas France 3 Germany 11 Pathway SF Blois China 4 Blois 8 SF Wuhan (49% JV) Mexico* 5 Cape Town 7 Sa
Slide 15: Senior Flexonics Financial Overview
Senior Flexonics Financial overview £m’s 2010 2011 2012 H1 Excl Hargreaves Sales 233.5 258.5 134.9 123.2 Op profit 31.6 36.0 18.3 17.9 Op % 13.5% 13.9% 13.6% 14.5% H1 H1 Excl Hargreaves H1 2012 Change 2011(2) Revenue £115.0m £123.2m +7.1% Adjusted Operating Profit(1) £15.9m £17.9m +12.6% Adjusted Op
Slide 16: Senior Flexonics Overview (H1 2012)
Senior Flexonics Overview (H1 2012) Markets Customers Other Industrial 10% Cummins 21% HVAC & Solar 4% Truck 30% Petrochemical 9% Other Industrial 41% PSA 6% Ford 5% Power & GM 4% Energy 20% Renault 4% Bloom Energy 2% Caterpillar 3% Passenger Vehicles 27% Other Land Fiat 2% Vehicle 10% Tata 2% 22nd
Slide 17: Senior Flexonics Product Overview
Senior Flexonics Product overview Land Vehicle Emissions: Passenger Car, Truck, Off Highway Industrial Equipment: HVAC/Solar, Medical, Fuel Cells, Seals, …. Industrial Process: Petrochem, Power Gen, Steel Mills,…. 22nd October 2012 Capital Markets Event 17
Slide 18: Senior Flexonics Land Vehicles
Senior Flexonics Land Vehicles Euro Euro5 5 Euro 6 Euro 4 EPA 2007 EPA 2010 • Engineered products Exhaust Flexes, EGR Coolers • Emission driven Tubes, HP lines HP Rails • Higher barriers to entry Business Focus: High vol., Local Customers, Niche positions, Global Support, Value Added 22nd October 20
Slide 19: Senior Flexonics Globalisation
Senior Flexonics Globalisation Flexonics Large Ind LV Exhaust LV Heat LV Common LV HP lines LV Turbo Sites projects flexes exchangers Rail connectors Pathway, US Canada Sao Paulo, BZ New Delhi Planned Import China Planned 2013 Q4 Blois, FR Olomouc, CZ Germany Crumlin, UK Sales & Eng Bartlett, US Imp
Slide 20: Senior Flexonics Growth Strategy
Senior Flexonics Growth strategy Sector Strategic Objectives Land Vehicle Emission Control Continue to develop product portfolio in line with increasing emission regulation Heat Exchangers standards via both new technology (Waste Exhaust Flexes Heat Recovery) and new markets (Fuel Cells) Common Rail
Slide 21: Bartlett
Senior Flexonics Bartlett (Joe Mockus) 22nd October 2012 Capital Markets Event 21
Slide 22: Senior Flexonics Bartlett Introduction
Senior Flexonics – Bartlett Introduction Joe Mockus, VP/GM, Bartlett Operations. • US Citizen, office/operations in Bartlett, Illinois. • Experience – 23 years of Operational, Technical and Executive Leadership. • Senior Flexonics as Bartlett VP/GM for 2 years. • Femco Holdings as President & COO fo
Slide 23: Bartlett Background
Senior Flexonics - Bartlett Background • Founded in 1902 as Chicago Tubing & Braiding. • Bartlett facility built in 1960 - 370,000 sq. ft. facility on a 19 acre site. • Acquired by Senior Plc. in 1992. • 31% of H1 Divisional revenues (largest operation). • 475 employees. 22nd October 2012 Capital Ma
Slide 24: Bartlett Markets Served
Senior Flexonics - Bartlett Markets served Markets Customers Other 10% Other 18% Power 5% Cummins 60% Daimler 4% Medical 7% Medtronic 4% Caterpillar 6% Off-Hwy Diesel 10% Bloom Energy 7% On-Hwy Diesel 68% - On-Highway Diesel segment consists of EGR Coolers, Fuel Rails, Exhaust Bellows and Tubes. - C
Slide 25: Bartlett Capabilities
Senior Flexonics - Bartlett Capabilities • Design, validation and manufacture of: • High-durability emissions and exhaust products that can withstand severe operating conditions in Heavy Duty On- and Off-Highway diesel engines. • Highly-efficient heat exchanger assemblies for unique Medical and Powe
Slide 26: Bartlett Technical Capabilities
Senior Flexonics - Bartlett Technical Capabilities • Engineering and analysis – World-class finite element analysis and simulation capabilities • Testing – In-house Technology Center for comprehensive validation testing and competitive benchmarking, including thermal analysis rig, chassis dynamomete
Slide 27: Bartlett Manufacturing Capabilities
Senior Flexonics - Bartlett Manufacturing Capabilities • Tube forming • High-volume tube fabrication, corrugation and test • Hydroforming • Capable of maintaining precise tolerances and complex geometries • Welding & Brazing • High-volume • Exotic materials 22nd October 2012 Capital Markets Event 27
Slide 28: Bartlett Products
Senior Flexonics - Bartlett Products 22nd October 2012 Capital Markets Event 28
Slide 29: Bartlett Growth Strategy
Senior Flexonics - Bartlett Growth Strategy Growth Strategy: Customer Focus – Product Leadership – Operational Improvement Outlook: • Continued benefit from the roll-out of increasingly more stringent emissions and fuel economy standards globally. • Maintain status as Cummins’ sole source for Heavy
Slide 30: Pathway
Senior Flexonics Pathway (Dorian Shillingford) 22nd October 2012 Capital Markets Event 30
Slide 31: Senior Flexonics Pathway Introduction
Senior Flexonics - Pathway Introduction Dorian Shillingford, CEO, Pathway Wahlco. • Canadian Citizen, US permanent resident, office/operations in New Braunfels, Texas. • Experience – 22 years of Operational, Finance and Executive Leadership. • Senior Flexonics, Pathway, CEO, for 8 years to present •
Slide 32: Pathway Background
Senior Flexonics - Pathway Background • Founded in 1902 as Chicago Tubing & Braiding • Adopted the Flexonics name in 1952 • Acquired Tempflex and move to New Braunfels, Texas in 1980 • Acquired by Senior Plc. in 1992 • Acquired Pathway in 1999 and Wahlco in 2010. • In 2004, added 30,000 to the exist
Slide 33: Pathway Markets Served
Senior Flexonics - Pathway Markets served Markets “Blue Chip Customers” Industrial Petrochemical 29% 36% 34% Power Generation Petrochem Power Generation Industrial Markets – Brand Recognition. Global markets and reach. Customers – Diverse & Global. Large and small. End users, EPCs or Traders. 22nd O
Slide 34: Pathway Capabilities
Senior Flexonics - Pathway Capabilities • Engineered Solutions. Not built to Print. “Engineering the impossible!” Finite Element Analysis • Integrated and complete fabrication & supply • Field technical support and installation 22nd October 2012 Capital Markets Event 34
Slide 35: Pathway Manufacturing Capabilities
Senior Flexonics - Pathway Manufacturing Capabilities • Heavy fabrication parts work • Plate burning, rolling and pipe expanding • Punch and hydro (bellows) forming • Geometries & tolerances tailored to severe service and special materials • Welding & Assembly • Small volume, large sizes, complicate
Slide 36: Pathway Growth Strategy (1)
Senior Flexonics - Pathway Growth Strategy (1) Growth Strategy: Solutions Leadership – Global customers and projects – Operational Value The addition of Wahlco Metroflex (2010) • Extended reach into the Middle Eastern and Asian, Gas Turbine markets. • Heavy duty Dampers for air pollution control in
Slide 37: Pathway Growth Strategy (2)
Senior Flexonics – Pathway Growth strategy (2) Pathway: How we Win & Profit…. • Sophisticated engineering & equipment……Metal Joints --Dampers • Mission critical applications. Severe and rigorous use. Wear and tear. • Legacy installations……Our Brand and Nameplate. •Guarantee of invitation to tender (
Slide 38: Pathway Growth Strategy (3)
Senior Flexonics - Pathway Growth Strategy (3) Outlook: • Succeed at major new installations and upgrades in the Petrochemical industry. • Increase competitiveness and reach with fabrication partners in Asia and SF Brazil. • Improve and complete the customer value proposition through mission and pro
Slide 39: Pathway
Senior Flexonics Pathway 22nd October 2012 Capital Markets Event 39
Slide 40: Germany
Senior Flexonics Germany (Andreas Brand) 22nd October 2012 Capital Markets Event 40
Slide 41: Senior Flexonics Germany Introduction
Senior Flexonics – Germany Introduction Andreas Brand, CEO (since Jan 2010) German Citizen, office/operation in Kassel, Germany • Senior Executive 24 years with focus on Technology Environments, Automotive and Electronics • MAHLE Filter Systems NA Inc. President North America for 3 years • W.E.T. Au
Slide 42: Germany History
Senior Flexonics – Germany History Formation of the Chr. Berghöfer & Co. 1907 (second oldest metal hose manufacturer in Germany) 1965 Production of hydraulically formed metal hoses with parallel corrugations As Senior Flexonics Berghöfer GmbH the company now belongs to the 1994 Senior plc. group 199
Slide 43: Germany Background
Senior Flexonics – Germany Background 4 Business Units Industrial, Land Vehicles & Engines, Renewable Energies, HVAC Two sites in Kassel 14.330 m² covered with buildings 32.500 m² available area Turnover 2011 – Mio. € 42,3 11 % of H1 Divisional revenues, Rank 3 310 employees (incl. contracted heads)
Slide 44: Germany Markets
Senior Flexonics – Germany Markets Industrial Land Vehicles & Engines Vacuum industry Trucks Chemical industry Off-Highway Plant construction Engines Steel industry Heating, Ventilation, Air Renewable Energies Conditioning (HVAC) Gas & Water supply Concentrated Solar Power (CSP) Residential solar Wi
Slide 45: Germany Customers
Senior Flexonics – Germany Customers 22nd October 2012 Capital Markets Event 45
Slide 46: Germany Capabilities
Senior Flexonics – Germany Capabilities Single orders • High flexibility • Very short delivery time (responsive) Project orders • High revenue level • Project Management • On-time delivery Serial orders • High volume / repeatable business • Cellular flow layout • Error free production 22nd October 2
Slide 47: Kassel Capabilities: Engineering
Senior Flexonics Kassel Capabilities Engineering • Advanced process & product development • In-house developed analysis tools for flexible elements • Testing and Prototype capabilities • In-house machine and tooling design 22nd October 2012 Capital Markets Event 47
Slide 48: Kassel Capabilities: New Products
Senior Flexonics Kassel Capabilities New Products • Heavy-Duty Truck exhaust decoupling hose with new developed inner liner coupling element suited for EU6 emission level • RotationFlex®-System for Molten-Salt in Parabolic Trough Solar Fields with integrated heating application 22nd October 2012 Cap
Slide 49: Germany Products
Senior Flexonics – Germany Products 22nd October 2012 Capital Markets Event 49
Slide 50: Germany Products
Senior Flexonics – Germany Products 22nd October 2012 Capital Markets Event 50
Slide 51: Germany Products
Senior Flexonics – Germany Products 22nd October 2012 Capital Markets Event 51
Slide 52: Germany Growth Strategy
Senior Flexonics – Germany Growth Strategy • Expand customer base for Concentrated Solar Power (CSP) with maintenance free products (Rotationflex) in equatorial countries • Expand scope of offering from Renewable into Power Generation sectors • Exploit growth potential in gas-tight heavy-duty engine
Slide 53: Summary and Q&A
Summary and Q&A 22nd October 2012 Capital Markets Event 53
Slide 54: Senior Flexonics Summary
Senior Flexonics Summary A synergistic group of businesses servicing the land vehicle and industrial sectors …..offering niche engineered products …..utilising generally common technology ….. to diverse end-markets …… from a global footprint Long-term growth & market penetration driven by emission c
Slide 55: Capital Markets Event
22nd October 2012 Capital Markets Event 55
Slide 56: Q&A
Q&A 22nd October 2012 Capital Markets Event 56