Slide 1: 2024 Preliminary Results
A global leader in fluid and motion control 2024 Preliminary Results Roy Twite – Chief Executive Officer Daniel Shook – Chief Financial Officer
Slide 2: Cautionary statement
Cautionary statement By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to be bound by the limitations and conditions set out in this Cautionary statement. This presentation is for your information only and contains forward-lo
Slide 3: 2024 Preliminary Results
A global leader in fluid and motion control 2024 Preliminary Results Roy Twite – Chief Executive Officer Daniel Shook – Chief Financial Officer
Slide 4: Record profits and good organic growth
Record profits and good organic growth • 4% organic sales growth, 10% organic adjusted operating profit growth • Adjusted operating margin up 100bps to 19.7%, increasing target to 20%+ • Return on invested capital increased to 13.4% • Free cash flow of £263m and £1bn+ expected over next three years
Slide 5: Global leader in fluid and motion control
Global leader in fluid and motion control Process Automation Industrial Automation Climate Control Life Science & Fluid Control Transport Growth Target Growth Target Growth Target Growth Target Growth Target 5% 5% 5%+ 5% - 10% 3% - 5% One IMI operating model Deep engineering expertise Growth markets
Slide 6: Business aligned to enduring growth themes
Business aligned to enduring growth themes Automation Energy efficiency Healthcare demand Reshoring Net zero targets Scientific advances Labour shortages Higher commodity prices Ageing population Digitalisation Process safety & efficiency Regulation Over 65s to double by 2050 IMI opportunity IMI opp
Slide 7: Business review
Business review Daniel Shook – Chief Financial Officer 7
Slide 8: Strong financial performance in 2024
Strong financial performance in 2024 Revenue Adjusted operating profit Adjusted operating margin £2,210m +4% organic £436m +10% organic 19.7% +100bps 2023: £2,196m 2023: £411m 2023: 18.7% Adjusted basic EPS Cash conversion Dividend per share 122.5p +5% 92% +10% 2023: 116.8p 2023: 89% 2024: 31.1p (20
Slide 9: Further organic revenue and profit growth
Further organic revenue and profit growth Revenue (£m) Adjusted operating profit (£m) +4% organic +10% organic 19.7% 18.7% (66) 88 41 (14) 436 2,210 (2) 2,196 (8) 411 2023 FX Acquisitions / Organic 2024 2023 FX Acquisitions / Organic 2024 Disposal* Disposal* 9 * Acquisition of TWTG (October 2024), d
Slide 10: Approaching 20% margin, expect further progression
Approaching 20% margin, expect further progression Adjusted operating margin % NEW • Further growth and operating leverage 20% + • Strong pricing power 19.7% • Aftermarket focus • Final benefits from restructuring 14.2% 2019 2024 Target 10
Slide 11: Growth strategy delivering results
Growth strategy delivering results £m 2024 2023 Growth Organic* • Organic revenue growth of 4% and Revenue 2,210 2,196 +1% +4% organic adjusted operating profit growth Adjusted operating costs (1,774.5) (1,785.4) of 10% Adjusted operating profit 435.5 410.6 +6% +10% • Group revenue growth of 1% and
Slide 12: Performance in line with expectations
Performance in line with expectations Automation Revenue 2024 2023 Growth Organic* Process Automation £906m £807m +12% +15% • Strong order intake and continued Industrial Automation £508m £543m -6% -3% organic growth in Process Automation Total Revenue £1,414m £1,350m +5% +8% Adjusted Operating Prof
Slide 13: Strong cash delivery
Strong cash delivery £m 2024 2023 Adjusted EBITDA 526 503 • Adjusted operating cash flow Inventory (24) (32) significantly higher, cash conversion at Debtors (41) (57) 92% Creditors 43 58 Working capital (22) (31) • Inventory growth reflects significant increase in Process Automation order Capital e
Slide 14: Step change in free cash flow generation
Step change in free cash flow generation Annual free cash flow generated (£m) NEW • End of restructuring £1bn+ over next three years • Normalisation of working capital • Cash drop through from further growth 263 234 158 2022 2023 2024 2025 2026 2026 Free cash flow is before corporate activity – divi
Slide 15: Over £700m returned to shareholders in last six years
Over £700m returned to shareholders in last six years Our Priorities Capital deployed (£m) Further £200m share 600 buyback announced today Organic growth R&D, Growth Hub, Capex 500 400 M&A 300 Targeted bolt-on acquisitions 200 100 Returns to shareholders Dividends and share buybacks 0 2019 2020 2021
Slide 16: Outlook: continued progress in 2025
Outlook: continued progress in 2025 Adjusted EPS (p) • Based on current market conditions, we expect full year adjusted EPS to be between 129p – 136p 129p – 136p • Strong revenue growth in Automation, Life Technology broadly flat, continued margin progression • Restructuring costs of £3m - £6m p.a.
Slide 17: Strategy update
Strategy update Roy Twite – Chief Executive Officer 17
Slide 18: Compounding EPS at 11% CAGR between 2019-2024
Compounding EPS at 11% CAGR between 2019-2024 +11% CAGR 122.5 116.8 105.5 92.0 79.7 73.2 Growth strategy launched 2019 2020 2021 2022 2023 2024 Adjusted Basic EPS (pence) 18
Slide 19: Growth strategy creating long-term value
Growth strategy creating long-term value Financial framework STRUCTURAL STRONG CASH-BACKED PREMIUM GROWTH MARGINS EARNINGS RETURNS NEW 5% 20%+ >90% >12% Organic Operating margin conversion ROIC COMPOUNDING EPS GROWTH Enduring megatrends Strong pricing power £300m+ free cash flow Fully burdened ROIC
Slide 20: Innovative solutions creating customer value
Innovative solutions creating customer value Unlocking the hydrogen economy Energy efficiency in data centres Supporting development of Nuclear SMRs Secured £66m orders in 2024 £7m orders in 2024 £3m - £20m opportunity per SMR IMI VIVO established in market Strong stakeholder relationships Customer
Slide 21: Creating value through targeted bolt-on acquisitions
Creating value through targeted bolt-on acquisitions Areas of focus Leveraging Acquisition of TWTG for €25m Fluid and motion control Customer relationships and routes to market to accelerate Leadership in niche growth sales growth market Application expertise Mission critical solutions for customers
Slide 22: Culture and talent driving growth
Culture and talent driving growth • 79% engagement Boosting retention and performance • Accidents down 26% Strengthening safety and resilience • New talent programmes Building expertise and leadership • Experienced specialists Deepening customer relationships 22
Slide 23: Key messages
Key messages Growth strategy continues to deliver Further £200m share buyback announced 2025 full year adjusted EPS expected to be between 129p – 136p 23
Slide 24: Appendix
Appendix 24
Slide 25: Foreign exchange
Foreign exchange 2024 2023 Change Ready reckoner for translation Average rates impact of movement in FX rates on Euro 1.18 1.15 +3% 2025 FY performance US Dollar 1.28 1.24 +3% Sensitivity to +/- Adjusted Revenue Dec-24 Dec-23 Change 1 cent move in: operating profit Closing rates Euro +/- £7.2m +/- £