Melrose Industries Plc · LSE:MRO
Melrose Industries — Investor Presentation (June 2012)
18 slides from Melrose Industries's investor presentation, Jun 12, 2012
Slide 1: Martyn Vaughan – Managing Director
Martyn Vaughan – Managing Director 75% of Energy 30% of Melrose 73% 17% 10%
Slide 2: Products Overview – Generators
Products Overview – Generators The world’s largest independent manufacturer of turbogenerators for the power generation industry Products Applications 2 and 4-pole air cooled Hydrogen and combined cooled Power Stations Combined Cycle Plants Turbogenerators Generators Offshore Platforms FPSO LNG Term
Slide 3: Products Overview – Transformers & Switchgear
Products Overview – Transformers & Switchgear Products Applications 132 kV Transmission Transformer 33 kV Power Transformer 8 MVA 33 kV Transformers on for Central Networks for Western Power Distribution Utilities BP Andrew Platform AC Indoor AC Outdoor WTW Utilities Transport Infrastructure DC Swit
Slide 4: Locations Overview – Generators
Locations Overview – Generators Manufacturing Sites Locations of BRUSH Generators around the World Loughborough, UK 776 employees Established 122 years 2 Pole DAX 10-150 MVA generators 11/33/132 kV transformers Power/load management DAX Aftermarket Ridderkerk, Netherlands Europe- 1,162 N
Slide 5: Locations Overview – Switchgear and Transformers
Locations Overview – Switchgear and Transformers Manufacturing Sites Locations of BRUSH Transformers around the World Blackwood, UK 242 employees Established 100 years AC Indoor Switchgear AC Outdoor Switchgear DC Switchgear Asia & China - 88 Aftermarket Europe - 2043 Brisbane, Australia
Slide 6: Financial Performance
Financial Performance Headline² Operating Profit Revenue Growth (%) Cash Conversion +26% £295m1 £272m £282m £287m +41% (8%) +4% +2% 114% +9% +67% Average headline² operating profit conversion to cash (post Capex) in Melrose ownership 1 2008 2009 2010 2011 2007 2008 2009 2010 2011 Revenue still 2%
Slide 7: Generator Sales by End Market and Geography
Generator Sales by End Market and Geography Sales¹ Breakdown by End Market 2011 Sales² Breakdown by Installation 2011 Base load power Peak lopping Combined heat/power plants Combined cycle plants Solar power plants 2% 2% 15% 35% 29% Aftermarket 10% 71% OEM 54% 8% 9% 19% 17% Offshore plat
Slide 8: Transformers & Switchgear Sales by End Market and Geography
Transformers & Switchgear Sales by End Market and Geography Sales Breakdown by End Market 2011 Sales Breakdown by Installation 2011 Transformers Switchgear
Slide 9: Generator Power Range
| Generator Power Range HITACHI imal £36] us ALSTOM France SIEMENS Germany AnsaldoEnergia Italy TOSHIBA Japan FE Fuji Bectrc Systems ayy an ere pees Russia <p> China an Japan Srees China China 0-70 MW 70-250 MW 250-1,100 MW 1,100 — 1,700 MW > 1,700 MW BRUSH) « 1 ANDRTZ sustia ! 1 ABB svcis | i Brazi
Slide 10: Turbine Competitive Position
Turbine Competitive Position Market Share by Unit Orders 2011 Market Share by Unit Orders 2010 All sectors > 20MW (1057 Machines) All sectors > 20MW (882 Machines) Key Customers Gas Steam turbine turbine Gas Turbine Sector 20 – 130MW (364 Machines) Gas Turbine Sector 20 – 130MW (266 Ma
Slide 11: Generator Competitive Position
Generator Competitive Position Market Share by Unit Orders 2011 Market Share by Unit Sales 2011 All Sectors > 20MW (1057 Machines) All Sectors > 20MW (1105 Machines) Gas Turbine Sector 20 – 130MW (364 Machines) Gas Turbine Sector 20 – 130MW (352 Machines) The largest independent manufacturer of tu
Slide 12: Medium Term Growth Prospects
Medium Term Growth Prospects Emerging markets in need of new capacity… …replacement capacity required in mature economies The Global Power Market Installed Plant Exceeding 40 Years of Age By Technology By Region China 8% 6% 1% Middle East 6% Coal 8% 39% 30% Gas Russia & Eastern Europe GW Wind 8% 16%
Slide 13: Key Developments under Melrose Ownership
Key Developments under Melrose Ownership Brush – the First Four Years Key Developments Productivity - Sales and Profit per Employee £295m £272m £282m £287m Increased productivity No. of No. of No. of No. of Greater focus on Aftermarket employees 2898 employees 2397 employees 2335 employees 2335
Slide 14: Focusing on Aftermarket
Focusing on Aftermarket Growing the Offering Strengths of BRUSH – Knowledge and Product strong … but need investment Large POC contract replacement year. Target to get “They are technologically “Overall, its their Underlying 9% growth v 2010 to >30% competent and the engineers professionalism and yo
Slide 15: Focusing on Aftermarket
Focusing on Aftermarket The Strategy Why? Exploit large Brush installed base and Brush brand 25 year average generator lifespan Aftermarket revenue potential Attractive gross margins End customer preference for OEM service Brush historically under-represented How? New investment in peopl
Slide 16: Products Overview - Aftermarket
Products Overview - Aftermarket Parts and Service for the Global Power Industry Current Aftermarket Locations: GMS Parts Distribution, North Sea, HSS Pittsburgh Chorley UK Aberdeen, UK Aftermarket, USA Australia SEM, 2 Pole Field Service HQ, HMA, 4 Pole Centre of Loughborough UK Centre of Excellence
Slide 17: Investment and Growth Phase
Investment and Growth Phase 1 Historically under-invested facilities and people. 2 £15m Capital expenditure approved in 2011, plus a further £8m in 2012 year-to-date. 3 Investment targeted at productivity and capacity increase in the UK and the Czech Republic. 4 Award-winning UK Apprentice A
Slide 18: Concluding Remarks
Concluding Remarks 1 Strong and respected brand with premium product Supplying to over 130 markets worldwide 2 Good forecast market growth in next 5 years Strong energy and Oil & Gas market exposure 3 Greater focus on Aftermarket Installed fleet of 4,000+ generators Significant investment op
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