Jefferies 2014 Global Industrials Conference

Transcription

1 Jefferies 2014 Global Industrials Conference e2v technologies plc Charles Hindson, Group Finance Director Innovative solutions for high performance systems Slide 1

2 Safe harbour statement $ conversion - as at 25 July 2014 rates ( 1 = $1.70). The information contained in this presentation may include forward-looking statements about e2v s financial and operational performance and results and the markets in which it operates. These statements can be identified by terminology that includes, without limitation, estimates, believes, anticipates, intends, expects, plans, targets and predicts and all similar words and statements of a predictive nature. By their very nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of e2v. These statements are based on current information, forecasts, expectation and belief and will be subject to variations in these factors as they involve elements of risk and uncertainty. These risks and uncertainties are discussed in detail in e2v s Annual Report & Financial Statements, announcements to the market and presentations to analysts and investors. Consequently, these variations could cause the actual performance, results and markets to be materially different than those predicted in the forward looking statements. The forward looking statements in this presentation are accurate only as at the date of this presentation and e2v undertakes no obligation to revise or update forward-looking statements to reflect subsequent events or circumstances, except as may be required by applicable law and regulation (including Listing Rules). No statement in this presentation is intended to be a profit forecast or be relied upon as a guide to future performance. Slide 2

3 e2v at a glance Business profile Products Leading provider specialist equipment OEM/Prime systems Common value to our longstanding customers Innovation Through life cycle support Tailoring platforms for customer needs High performance manufacturing Financial profile F.Y.E. 31 March 14 Turnover $370m - up 11% Adjusted operating profit $59m - up 8% Return on capital employed 22% Nil debt cash generation $70m Dividend up 7% Slide 3

4 e2v Board Neil Johnson OBE Chairman Alison Wood Senior Independent Director Steve Blair Group CEO Dr. Krishnamurthy Rajagopal Remuneration Committee Charles Hindson Group Finance Director Kevin Dangerfield Audit Committee Slide 4

5 Introducing Steve Blair Group CEO Joined e2v March 2014 Background - Spectris plc Board member and COO - Invensys Region President, North America Priorities for FY14/15: First 100 days - Customer focus - Operating excellence - Simplifying organisation Acquisitions if obvious bolt-ins Next Steps - Developing Essence of e2v - Announcement on strategic direction by December 2014 Evolution not revolution Slide 5

6 High Performance Imaging Solutions 37% Group Revenues Value to customers Technology platforms/innovative product development Customer specific design/development services Space qualified manufacturing capability Machine Vision Automated optical inspection camera Space Imaging Imaging sensors, arrays and cameras Scientific Imaging High sensitivity, low noise sensors enabling high end scientific instruments Other applications Automatic data collection systems including 2D barcode reading and thermal imaging products Slide 6

7 RF Power Solutions 38% Group Revenues Value to customers Technical knowledge Focus on specific requirements Long term service and support Radiotherapy Magnetrons, thyratons, modulators and services Electronic countermeasures Manufacture of magnetrons, coupled-cavity and helix travelling wave tubes, MPM s for Electronic countermeasures Industrial processing systems Microwave generators Other applications Vacuum tubes and microwave components Slide 7

8 Hi-reliability Semiconductor Solutions 25% Group Revenues Value to customers Market leading technology Packaging and test capabilities Through life support/continuity of supply from original sources Aerospace and Defence Semiconductors Hi reliability semiconductors and services in partnership with IP Providers: Freescale Micron Continuity of supply of over 4000 SMD components Market leading data converters Slide 8

9 Revenue and Order Book FY10 FY14 $m Return to growth Revenue up 11% Profit margin at 17% Solid order book cover $217m for delivery in next 12 months Outlook modest revenue growth Adjusted operating profit One-off revenue and disposal businesses Revenue 12 month order book Slide 9

10 Cash Generation FY14 Operating cash generation $48.8m Financing $30.8m Capex net depreciation c$5m Modest working capital increase with turnover Dividend 2 x cover Adjusted operating profit Dep n & Amort. CAPEX Working capital & specific items Interest, tax & other Dividend Cash generation Slide 10

11 Summary of e2v Leading provider of equipment to OEM/Prime for platforms Changed leadership Growth profile with revenues up 11% Current Priorities: - Customer focus - Operating excellence - Simplifying organisation - Bolt in acquisitions Future business direction - Report by December 2014 FY15 outlook: modest revenue growth Slide 11

12 Appendix Summary divisional performance RF Power Solutions (RFP) High Performance Imaging Solutions (HPI) Hi-rel Semiconductor Solutions (HRS) Total* FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 Revenue ( m) Sales growth -5% 1% -3% 26% -25% 7% -10% 11% Adjusted operating profit ( m) Adjusted operating profit margin (%) 21% 20% 11% 14% 22% 22% 16% 16% % of Group revenues 38% 37% 25% *Divisional performance excludes unallocated corporate centre costs of 4.4m (FY 2013: 3.2m) Slide 12