Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — Shareholder Meeting (May 2017)
12 slides from Morgan Advanced Materials's shareholder meeting presentation, May 5, 2017
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING Friday 5th May 2017 www.morganadvancedmaterials.com
Slide 2: 2016 Full Year Results AGM Presentation
2016 Full Year Results AGM Presentation www.morganadvancedmaterials.com
Slide 3: Key highlights
Key highlights • Financial performance in line with management expectations • Strategy implementation is on track, with operational improvements and investment ahead of plan • Refinancing completed successfully, providing secure long- term capital structure • Two businesses divested, simplifying the
Slide 4: Group performance summary
Group performance summary FY 20161 FY 20151 % change from FY 2015 At constant £m £m As reported currency Revenue 989.2 911.8 8.5% -1.5% Group headline operating profit2 116.9 106.0 10.3% -2.5% Group headline operating profit margin % 2 11.8% 11.6% Cash flow from operations3 128.3 139.4 -8.0% Free ca
Slide 5: Divisional performance
Divisional performance Revenue (£m) EBITA (£m) EBITA margin (%) FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 Thermal Ceramics 413.3 372.4 55.0 55.2 13.3% 14.8% Molten Metal Systems 43.5 39.7 6.7 5.3 15.4% 13.4% Thermal Products 456.8 412.1 61.7 60.5 13.5% 14.7% Electrical Carbon 156.2 145.6 19.7
Slide 6: Reliable problem solving
Our vision is to be renowned for world-class material science, application engineering and customer focus • Scalable global Material science businesses • In growing markets Reliable • Where technical problem differentiation is solving valued Ethically and safely Application engineering Customer focu
Slide 7: 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 Detail on following slides 7
Slide 8: 2. Technology investment on track
2. Technology investment on track R&D as a percentage of sales, 2013-2016 • Investment in R&D increased to 3% of sales • Materials development activity now focused through four centres of excellence: • Fibre • Structural Ceramics • Carbon Science • Metals & Joining • We are planning to invest a furt
Slide 9: 3. Operational improvements ahead of plan, funding £3m investment in technology & £3m in sales
3. Operational improvements ahead of plan, funding £3m investment in technology & £3m in sales Expected FY17 operational efficiencies, net of inflation: Key areas of focus: Lean & Continuous Improvement: improving efficiency across all processes and manufacturing sites globally Yield / Scrap: Techni
Slide 10: 4. We are investing £3m in sales resources, capability building and process improvements
4. We are investing £3m in sales resources, capability building and process improvements • Two pilot projects underway in Thermal, and a further pilot to be launched in Electrical Process Carbon: • Daily / weekly sales process improvement • Account management • Performance management • Role mapping
Slide 11: 6. Portfolio simplification: two divestments announced with gross consideration c.£80m
6. Portfolio simplification: two divestments announced with gross consideration c.£80m 1. Rotary Transfer Systems (Electrical Carbon GBU) 1. Reduces portfolio breadth and complexity • small player, not scalable • no synergy with Electrical Carbon • limited material science content 2. Enables streaml
Slide 12: Summary
Summary • Financial performance in line with management expectations • Strategy implementation on track with two divestments completed and re-investment ahead of plan, good progress on operational improvements • Refinancing successfully completed • We continue to take a cautious view on market condi
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