Spirax Group Plc. · LSE:SPX
Spirax — Spirax-Sarco Engineering — Shareholder Meeting (May 2017)
15 slides from Spirax's shareholder meeting presentation, May 9, 2017
Slide 1: Annual General Meeting
> ENGINEERING SUSTAINABLE VALUE > Annual General Meeting Charlton House, Cheltenham 9th May 2017 Bill Nicholas Trudy Neil Kevin Jane Jay Clive Jamie Andy Whiteley Anderson Schoolenberg Daws Boyd Kingston Whalen Watson Pike Robson 0 Annual General Meeting May 2017
Slide 2: 2016 Results
2016 Results Delivering a strong performance in challenging markets 2016 2015 Reported Organic⁺ Revenue £757.4m £667.2m +14% +4% Operating profit* £180.6m £152.4m +18% +8% Operating profit margin* 23.8% 22.8% +100 bps +80 bps Pre-tax profit* £177.9m £151.1m +18% EPS* 171.5p 142.6p +20% DPS 76.0p 69.
Slide 3: Sales growth 2011-2017E
Sales growth 2011-2017E* 24.0 Organic Acq'n/Disp Exchange Reported 20.0 16.0 Sales growth % 12.0 8.0 4.0 0.0 -4.0 -8.0 2011 2012 2013 2014 2015 2016 2017E* * 2017E = BAML estimate 03/04/2017 > ENGINEERING 2 Annual General Meeting May 2017 > SUSTAINABLE VALUE
Slide 4: Global IP growth vs. organic sales growth
Global IP growth vs. organic sales growth 2011-2017E* 10 Global IP Growth Group Organic Growth 8 6 Growth rate % 4 2 0 2011 2012 2013 2014 2015 2016 2017E* * 2017E = BAML estimate 03/04/2017 > Industrial Production data - Global Industrial Production Watch, CHR Economics ENGINEERING 3 Annual General
Slide 5: Investing for growth: Clean Steam Facility, Cheltenham
Investing for growth Clean Steam Facility, Cheltenham, UK • 1,200m² manufacturing facility for the production of clean steam components for the Pharma, Healthcare and F&B industries • ISO Class 7 Cleanroom • Offers customers full traceability of products and certified validation of materials used •
Slide 6: Investing for growth: State-of-the-art manufacturing facility, India
Investing for growth State-of-the-art manufacturing facility, India • June 2016, opened manufacturing, training and office facilities • Sales growth; good progress, in line with our expectations • Good progress expanding the range of locally manufactured products with local certifications (IBR) • Sa
Slide 7: Investing for growth: State-of-the-art manufacturing facility, India
Investing for growth State-of-the-art manufacturing facility, India http://www.spiraxsarcoengineering.com/AboutUs/Pages/media.aspx > ENGINEERING 6 Annual General Meeting May 2017 > SUSTAINABLE VALUE
Slide 8: Investing for growth: Spirax Sarco Academy
Investing for growth Spirax Sarco Academy • Established to enhance and accelerate the learning and development programmes of the Steam Specialties business • Aim: to underpin growth • Establishing global standards, syllabus and training materials • Real world assessment system • Its own governance s
Slide 9: Investing for growth: New product development
Investing for growth New product development Product launches in 2016 include: • Spirax Sarco: STAPS ISA100 Wireless Steam Trap Monitor and FT62 High Pressure Float Trap • Watson-Marlow: MasoSine Certa™ pump range; Qdos 120 pump; and Watson-Marlow 530 and 630 pumps Q1 2017: • Watson-Marlow Quantum p
Slide 10: Investing for growth: Geographical expansion in 2016
Investing for growth Geographical expansion in 2016 * Operating units include operating companies, branches and Associate June 2016, opened November 2016, we acquired state-of-the-art Spirax Aflex Hose Ltd and its Sarco manufacturing subsidiary Aflex Hose USA LLC facility in Chennai, India January 2
Slide 11: Aflex Hose Ltd, UK - November 2016
Investing for growth Aflex Hose Ltd, UK - November 2016 • Acquired Aflex Hose Limited and its subsidiary Aflex Hose USA LLC (Aflex) for £61.4 million • Design and manufacture of PTFE-lined flexible hoses for the Pharmaceutical, Food, Chemical and Automotive industries • Highly synergistic with WMFTG
Slide 12: Gestra AG, Germany – May 2017
Investing for growth Gestra AG, Germany – May 2017 • Acquired Gestra AG and associated businesses for €186 million (£160 million) • Leader in advanced industrial boiler control systems, designs and produces valves and controls for steam and fluid process control • Highly complementary to the Steam S
Slide 13: Gestra integration plan
Investing for growth Gestra integration plan • Operate as an independent division of Spirax Sarco • Promote Spirax Sarco and Gestra brands to steam customers (dual brand strategy) • Apply strong sector focus; key to success • Retain Spirax Sarco and Gestra product lines • Develop new and improved pr
Slide 14: Awards and achievements
Awards and achievements • Spirax-Sarco Engineering plc voted top of its sector (Engineering and Machinery) • Recognised as Britain’s 6th Most Admired Company • Peer review by senior executives from 250 companies, in 25 sectors, and analysts from leading City investment firms • Criteria include: qual
Slide 15: Any questions?
> ENGINEERING SUSTAINABLE VALUE > Any questions? Steam Training Centre, Spirax Sarco Mexico 14 Annual General Meeting May 2017
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