Site visit to IMI Brno

Transcription

1 Site visit to IMI Brno IMI Critical Engineering Strategic Refresh Roy Twite Divisional Managing Director IMI Critical Engineering 9 June 2015

2 2014 Results m 2014 FX Disposals Organic 2013 Revenue 692 (37) (3) Organic growth % Operating profit (6.9) (0.7) Operating margin % order intake 686m flat organically Aftermarket up 9% 274m Oil & Gas up 3% 143m Fossil Power up 4% 97m Petrochemical down 12% 76m Nuclear down 27% 49m Strong H2 bookings order intake up 16% Good order growth in Aftermarket, Oil & Gas, Fossil Power New manufacturing sites in Houston, Korea and Italy Shipped record HIPPS order Improving project execution delivered margin growth Other up 7% 47m Revenue by geography 5% 7% Western Europe 18% North America 18% Emerging Markets 52% UK RoW

3 07 May IMS: 2015 H1 Margins Proportion of H1 Margin Impact Volume Acquisitions / disposals Project mix / delays Other 23% 2014 order intake profile and current market conditions 25% Bopp & Reuter and Eley portfolio change 47% H2 margins expected to show a significant improvement on H1 5% Improvements are paying for investments

4 Book to Bill 2015 Q Book-to-Bill Oil & Gas 1.6 Strong orders in LNG Fossil Power 1.4 Nuclear 0.4 Post-Fukushima, market continues to be slow Petrochemical 1.3 Aftermarket 1.1 Total Critical 1.2

5 Our vision 2 billion in revenues, strong margins Become a leader in all our chosen markets whilst extending into key adjacencies Be closer to customers, partnering at every stage of the product lifecycle Build world-class technical leadership & PM / operational efficiency Become the employer of choice #1 for culture, safety and talent development

6 Strategy execution timeline Year Year Year Year Year Year The hard work begins Increased investment Benefits starting to show Nearly firing on all cylinders Up to full speed Double operating profits Organic initiatives Assess our markets and drivers for growth Benchmark performance and plan for improvement Invest in products and capital for growth Foundations established and benchmark improvements evident Sorting the basics in Precision Engineering complexities and structure Accelerated growth evident in results Working capital benefits visible in results Emerging markets ready for local full technology supply Growth outruns peers in every division Benchmark performance nearing world class standards Precision supply chain and capacity issues resolved Ambitions for growth fully realised Achievement of world class performance evident in results All divisions in attractive, high growth markets Supported by value enhancing acquisitions

7 5 year plans developed following review Reviewed existing competencies and opportunities Markets Customers Products Peers Competition Manufacturing operations Product development Systems and controls Collaboration Synergies Economies of scale Brand Investment for growth Acquisitions 5 year plans developed for every company

8 Capitalise on attractive growth in existing markets Organic technology transfer to new locations Power Generation Oil & Gas Petrochemical Introduction of new products Expand in North America, Korea, China, India & the Middle East Globalisation of all our businesses Addressable Market = 7bn Our goal for the division is to deliver 5 year compound organic growth of 6 to 8% Get closer to customers

9 Site visit to IMI Brno New sites to support growth markets getting closer to customer New Korean Facility New Houston Facility New Italian Facility

10 Operational improvement (LEAN journey) well embedded and improving 1 st assessment score 1 st improvement target 2 nd assessment score Next improvement target 70 All major sites 2 nd assessments complete First assessment average score 26% Second assessment average score 40% 6 month improvement target 51% World-class by 2018 % Score No of sites

11 Continuing to invest to support growth Enhancing systems and processes ERP implementation underway at IMI CCI (c. 10m) New Project Management process New Product Development process

12 New acquisition targets identified to accelerate growth Add strategically aligned bolt-ons Extend into adjacent markets, potentially including subsea Expand product portfolio - semi-severe and configured valves Acquisitions to widen our market opportunity

13 World-class integration process introduced IMI Bopp + Reuther 5 year strategic plan Structured & efficient process

14 Strategic checklist Investment in world class manufacturing operations and new service facilities were delivered on time and to budget New ERP solution is progressing well against plan and we remain confident in our go live objective Impressive improvements in lean and new project management process will provide the foundations for sustainable competitive positioning Disposal of ELEY will assist in increasing focus on the core Critical Engineering businesses Acquisition of Bopp & Reuther adds significantly to the overall quality of the Critical Engineering portfolio