Schroders Plc · LSE:SDR
Schroders — FY2020 Earnings Presentation
22 slides from Schroders's earnings presentation, Mar 5, 2021
Slide 1: Renishaw plc – 2020 results
Renishaw plc – 2020 results 13 August 2020
Slide 2: Summary
Summary • Revenue was £510.2m, 11% lower than 2019 revenue of £574.0m. • Revenue was lower in all regions: • Challenging global macroeconomic conditions throughout the year • COVID-19 pandemic impacted most lines. • Metrology revenue was 11% lower at £475.2m • Good growth in our position encoder pro
Slide 3: Summary (continued)
Summary (continued) • Took a range of actions to protect the long-term health of the business by preserving cash and reducing the Group’s cost base. These included: • Business resizing that led to a global headcount reduction. Total headcount • Restructure of our additive manufacturing business. red
Slide 4: Financial highlights
Financial highlights 2020 2019 Change £m £m % Revenue £m 700 611.5 574.0 600 536.8 Revenue 510.2 574.0 -11% 510.2 500 427.2 332.0 277.3 400 298.7 250.8 Adjusted profit before tax 48.6 103.9 -53% 300 228.7 200 Restructuring costs (23.8) 0.0 -100% 279.5 296.7 259.4 100 198.5 238.1 FV (losses) / gains
Slide 5: Income statement
Income statement 2020 2019 £m % £m % Change Adjusted profit before tax bridge Revenue 510.2 100 574.0 100 -11% Cost of sales (184.3) 36 (200.1) 35 -8% Engineering (inc. R&D) (87.3) 17 (89.8) 16 -3% Gross profit 238.6 47 284.1 49 -16% Distribution costs (123.3) 24 (126.8) 22 -3% Administrative costs
Slide 6: Balance sheet
Balance sheet £m June 2020 June 2019 Change % Property, plant & equipment 270.0 263.4 3% Total equity £m Intangible assets & investments 60.0 72.0 -17% 700 583.3 Right of use assets 12.7 0 100% 600 548.6 547.6 Deferred tax assets 39.6 29.8 33% 500 443.8 381.4 400 Finance lease receivables 4.8 5.0 -4
Slide 7: Cash flow (incl. bank deposits)
Cash flow (incl. bank deposits) Sources of cash Captital allocation strategy Other 1 Operating cashflows before R&D costs 3 R&D costs 6 Tax paid 2 Working capital 4 Capital expenditure 7 Pension contributions 5 Dividends paid 8 Other
Slide 8: Capital expenditure
Capital expenditure 2020 2019 £m £m Capital expenditure £m Capital expenditure 38.7 56.8 60 56.8 55 53.0 50 Additions to property, plant and equipment and vehicles totalled £38.7m, of which 45 17.4 42.6 25.4 £24.6m was spent on property and £14.0m on plant and machinery, IT equipment 38.7 40 and inf
Slide 9: Business environment
Business environment Our markets – industry sector • Automotive conditions remain challenging • Challenging conditions expected for aerospace Aerospace Automotive Electronics • Recovery in semiconductor market Our routes to market • Weaker demand in machine tool sector Medical and Macroeconomic Ener
Slide 10: Brexit
Brexit • The Board continues to oversee the work of the Brexit Steering Group in identifying the key risks and mitigation plans arising from a possible no-deal Brexit at the end of the transition period. Mitigation: New warehouse in Ireland • Warehouse in Ireland will significantly reduce the number
Slide 11: COVID-19 response
COVID-19 response Our priority continues to be the health and welfare of our employees, their families and the wider communities in which we operate. Manufacturing • All of our manufacturing sites remain open but overall capacity is reduced due to reductions in staff numbers – shielding, childcare i
Slide 12: Market drivers
Market drivers Industrial metrology Position measurement Additive manufacturing Spectroscopy Neurological Market drivers across all our business areas: Precision Productivity Practicality
Slide 13: Industrial metrology - market drivers
Industrial metrology - market drivers Weaker current investment levels, including machine tool sector However market drivers remain: Increasing component complexity and closer tolerances – new performance monitoring equipment Measurement at point of manufacture – shop floor measurement Increased nee
Slide 14: Industrial metrology
Industrial metrology Productivity Shopfloor measurement Automation Cutting tools and components remain in situ on the There is increasing use of automated changing machine tool and automatically checked using an between different sensor types for the REVO® inspection probe or contact/laser-based too
Slide 15: Industrial metrology
Industrial metrology Practicality Set and Inspect is a simple, intuitive, on-machine probing app for customers who require an easy-to-use probing solution. • Minimal user training required • The app is installed onto a Windows® based CNC control or Windows tablet connected to the machine tool contro
Slide 16: Position measurement – market drivers
Position measurement – market drivers Positive trends include: • emerging flat panel display (FPD) technology e.g. mini-LED and microLED • commercialisation of new Intel 7 nm and AMD 5 nm semiconductor processes • rollout of 5G mobile products and infrastructure • increasing factory and warehouse au
Slide 17: Position measurement
Position measurement Practicality ATOM DX™ encoder series Functional safety • Our smallest incremental encoder, with digital Certain machinery safety functions that ensure that output direct from the readhead, eliminating the operators are protected in the event of hardware failure need for bulky in
Slide 18: Additive manufacturing
Additive manufacturing • Demand impacted by the global macroeconomic environment. • Our strategy is to simplify and focus our AM business and during the year we undertook a restructuring to: • focus on those customers who are planning for AM volume production • rationalise the product range to focus
Slide 19: Healthcare - Raman spectroscopy
Healthcare - Raman spectroscopy Market applications We are focussing on new application areas to address existing and new markets for our Raman systems. Our current areas of interest include healthcare (cancer and infectious disease diagnosis) and environmental (microplastics and green energy). The
Slide 20: Healthcare - Neurological
Healthcare - Neurological • Impacted by the pandemic with orders for the neuromate stereotactic robot delayed and consumable sales reduced due to elective surgeries being put on hold. • Underlying demand remains for robots in neurosurgery which is still an emerging market meeting the need for precis
Slide 21: Going forward
Going forward • Maintained supply to our customers through challenging conditions • We remain committed to our long-term strategy of delivering growth through the development of innovative and patented products. • We have taken measures to size the business for the challenging conditions • We contin
Slide 22: Disclaimer
Disclaimer This document contains statements about Renishaw plc that are or may be forward-looking statements. These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Renishaw plc. They involve known and unknown risks, uncertainties a