Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — Shareholder Meeting (May 2018)
10 slides from Morgan Advanced Materials's shareholder meeting presentation, May 11, 2018
Slide 1: 2017 Full Year Results AGM Presentation
2017 Full Year Results AGM Presentation 11th May 2018 www.morganadvancedmaterials.com
Slide 2: Key highlights
Key highlights • Strategy implementation firmly on track • Improving momentum with return to organic growth: ˗ FY organic growth of 1.4% ˗ 2H organic growth of 2.8% • EBITA margins at 11.7% with additional investment of £8m in technology, sales and wider business infrastructure • Two divestments com
Slide 3: Group performance summary
Group performance summary Organic % 1 1 % change FY 2017 FY 2016 change from from FY 2016 FY 2016 At constant £m £m As reported currency Revenue 1,021.5 989.2 3.3% 1.4% Group headline operating profit2 119.7 116.9 2.4% 3.5% Group headline operating profit margin % 2 11.7% 11.8% Free cash flow before
Slide 4: Divisional performance
Divisional performance Revenue (£m) Headline Operating Profit (£m) EBITA margin (%) FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 Thermal Ceramics 426.2 413.3 56.9 55.0 13.4% 13.3% Molten Metal Systems 46.9 43.5 7.0 6.7 14.9% 15.4% Thermal Products 473.1 456.8 63.9 61.7 13.5% 13.5% Electrical Carb
Slide 5: Reliable problem solving
Our vision is to be renowned for world-class material science, application engineering and customer focus • Scalable global Material businesses science • In growing markets Reliable • Where technical differentiation is problem valued solving Ethically and safely Application engineering Customer focu
Slide 6: Six execution priorities
Six execution priorities 1. Move to a global structure 2. Extend our technology leadership 3. Improve operational execution 4. Drive sales effectiveness and market focus 5. Increase investment in people management and development 6. Simplify the business Execution priorities highlighted in blue will
Slide 7: 2. Technology investment on track
2. Technology investment on track R&D as a percentage of sales, 2014-2017 • Investment in R&D increased to 4.0% 3.4% of sales 3.5% 3.0% • The four Centres of Excellence 2.5% are driving a range of materials 2.0% and process developments 3.4% 1.5% 3.0% 2.8% 2.3% • We will continue incrementally 1.0%
Slide 8: 3. Operational improvements funding investment in technology and sales
3. Operational improvements funding investment in technology and sales Net operational efficiencies Key areas of focus Lean & Continuous Improvement: Lean programme in Thermal Ceramics and site by site Continuous Improvement programmes across the business Yield / Scrap: Technical Ceramics, Electrica
Slide 9: 4. We are focused on long term process and capability development in the sales teams
4. We are focused on long term process and capability development in the sales teams • Completed three pilot projects launched in H2 in Thermal Ceramics, Electrical Carbon and Seals and Bearings focused on pricing, value selling, segmentation and sales process Process • Identified streamlining and a
Slide 10: Summary
Summary • Strategy implementation firmly on track • Improving momentum with return to organic growth: ˗ FY organic growth of 1.4% ˗ 2H organic growth of 2.8% • EBITA margins at 11.7% with additional investment of £8m in technology, sales and wider business infrastructure • Two divestments completed,
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