Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — Shareholder Meeting (May 2012)
13 slides from Morgan Advanced Materials's shareholder meeting presentation, May 8, 2012
Slide 1: 2011 Results, AGM May 8th 2012
2011 Results AGM May 8th 2012 www.morgancrucible.com
Slide 2: Underlying earnings up c.60%
Underlying earnings up c.60% FY11 FY10 % Change from FY10 At constant As reported £m £m currency Revenue 1,101.0 1,017.1 +8.2% +9.3% EBITA before restructuring and one-off items 143.4 109.5 +31.0% +32.8% EBITA margin % before restructuring and one-off items 13.0% 10.8% EBITA after restructuring and
Slide 3: Free cash flow before dividends > £50 million
Free cash flow before dividends > £50 million FY11 FY10 £m £m • 3WC/Sales ratio for Cash from trading 174.3 141.9 the Group excluding Change in working capital (29.1) 10.5 NPA improved to Change in provisions (7.8) (4.3) 19.2% from 20.0% at the end of 2010 Cash flow from operations 137.5 148.1 Net c
Slide 4: Strong progress made in each Division
Strong progress made in each Division £ million Revenue EBITA Profit Margins % FY11 FY10 FY11 FY10 FY11 FY10 Technical Ceramics 285.1 250.1 43.1 34.0 15.1% 13.6% Thermal Ceramics 400.1 359.0 49.6 34.8 12.4% 9.7% Ceramics 685.2 609.1 92.7 68.8 13.5% 11.3% AM&T 276.1 246.8 35.0 22.1 12.7% 9.0% NP Aero
Slide 5: Financial ambitions by 2013
Financial ambitions by 2013 • Double Group underlying PBT from £75.7 million to c.£150 million • Mid-teen underlying operating profit margins • Improve Operating ROCE from c.25% in 2010 to 35% by 2013
Slide 6: Our ambition remains to double the 2010 underlying PBT by 2013
Our ambition remains to double the 2010 underlying PBT by 2013 c.£150 million Selective use of value accretive M&A Growth in new markets/products eg. clean energy, HDD Recovery and organic growth in traditional Western world £75.7 million businesses Cost benefits of low cost manufacturing and divisi
Slide 7: Significant growth from new products and technologies
Significant growth from new products and technologies – four biggest areas showing 39.3% year-on-year increase £136.6m £98.1m £70.0m £67.6m
Slide 8: Sales to dynamic growth countries increased 23%
Sales to dynamic growth countries increased 23% and now represent c.25% of total Group sales • China now a £100 million market for Morgan – rapidly approaching £265.7m close to 10% of overall Group sales £215.7m • India up more than 30% versus £175.7m 2010 driven primarily by strong £159.9m growth i
Slide 9: Robust revenue growth and cost efficiencies drove a 290 basis point increase in EBITA margin
Robust revenue growth and on-going cost efficiencies drove a 290 basis point increase in EBITA margin
Slide 10: Significant progress on Operating ROCE
Significant progress on Operating ROCE • EBITA up 39% while operating capital increased by only 5% • Operating ROCE very close to the three-year goal of 35% • Ambition to maintain a high Operating ROCE whilst continuing to grow the business
Slide 11: Significant progress made on all three financial goals
Significant progress made on all three financial goals in 2011 2010 2011 2011 2013 Progress Goal Underlying PBT £75.7m +£44.0m £119.7m £150m Underlying operating 10.0% +290 basis 12.9% Mid-teens profit margin points Operating ROCE 25.4% +830 basis 33.7% 35% points
Slide 12: A higher quality business – key ratios
A higher quality business – key ratios 2006 2011 2013 Goals Metrics for 2013 financial goals Underlying PBT £51.5m £119.7m £150m Underlying operating profit margin 7.0% 12.9% Mid-teens Operating ROCE 15.0% 33.7% 35% Other key metrics Revenue per employee £72.2k £108.8k % of revenue from dynamic grow
Slide 13: Record results and continued ambition
Record results and continued ambition • A higher quality business • Good progress against our 2013 financial goals • Continued uncertainty in the global macroeconomic environment but we believe we are well placed for further progress in 2012
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