Enodis plc Investor Presentation

Transcription

1 Enodis plc Investor Presentation September

2 Agenda >> Momentum continues Enodis is well positioned Strategy and goals Summary the investment case 2

3 Enodis is.. a leading manufacturer of food and beverage equipment Scope 0.8 billion / $1.6 billion in revenues 6,500 employees 28 factories in 8 countries Distribution and service in >120 countries Corporate Office (London) Global Operations Center (Florida) Enodis Global Operations and Technology Center Listed in London >75% of revenue is from North America 3

4 Enodis Evolution Momentum Continues Phase 3 Phase 1 Turnaround Phase 2 Creating a stable growth platform Aggressively exploiting growth opportunities in a dynamic global market

5 Performance Last 4 Years Turnover 90.0 EBITA 11% % m % m % 10.1% 10.0% (2)% 3% FY03 FY04 FY05 FY FY03(i) FY04(i) FY05 FY06 Like-for-like Food Equipment revenue %=Like-for-like growth Like-for-like Food Equipment EBITA % = Food Equipment margin (i) Pro forma for IFRS Net Debt m FY03 FY04 FY05 FY06 5

6 H1 07 Highlights Revenue up 11%, operating profit up 22% Margin up from 9.0% to 9.8% Fabristeel (Asia) acquired Rolling share buy back 35.7m Interim dividend 1.4p 6

7 Agenda >> Momentum continues Enodis is well positioned Strategy and goals Summary the investment case 7

8 Enodis is well positioned Growth in the food and beverage industry Consumer driven change Customer globalisation Large, established replacement markets Shorter equipment replacement cycles Equipment becoming more sophisticated Sea change in a vibrant industry 8

9 Food and Beverage is One of the largest industries in the world Accelerating growth to > 6.5% Consumer / lifestyle driven $US billions 1,230 1,209 1,244 1,374 1,517 1,630 1,739 1,881 2,004 2,130 2,262 2,402 2, World Total Foodservice Sales Estimated Forecasts Source: Planet Retail 9

10 More affluent Time compressed Increasingly global; and is Changing the industry: More choices Better quality Faster service The Consumer is 10

11 Competition is Blurring between sectors Converging menus Fierce among global players Institutions C-Stores QSR Casual Dining Fine Dining 11

12 Consumer Trends Clockless Living Lifestyle and career options are changing traditional eating patterns Health and Sensory Appeal Beckoning to our desires including sight, taste, smell, ambience and health Green is Hot Consumers feel a greater need to have a symbiotic relationship with the environment Convenience Hyper-life consumers demand the products they have come to need and love in convenient, easy to find locations 12

13 Sector Trends Limited Service Casual dining - Menu expansion - Expanded hours (breakfast/late night) - Remodels vs unit expansion Catering - Focus on organic growth/branding Lodging - Casino growth C stores Supermarkets - Fresh food (deli sandwiches, etc.) - Beverage innovation - Complete meals - Niche replacing traditional formats 13

14 The equipment replacement cycle is reducing As operators focus on same store sales growth Equipment is used up to 24 hours/day Conventional Cooking Technology Future Technology advances obsolete current equipment Shipments Accelerated Cooking Technology 0 Time 14

15 Multi-unit operators out pacing the market... Increasingly global Consolidating suppliers Sales Growth, % Foodservice Market Growth FS Market Top

16 Agenda Momentum continues >> Enodis is well positioned Strategy and goals Summary the investment case 16

17 Strategy - Innovation Innovation in Technology, Brands, and Service that enable our customers to increase their revenue and profit 17

18 Strategy - Technology Innovative technology that enables our customers to deliver consumer experiences in food and beverages where and when they want. 18

19 Strategy - Brands BEST IN CLASS SOLUTIONS FOR OUR CUSTOMERS Preserve / Store Stage / Prep Bake / Toast Fry / Grill / Steam / Warm Dispense/ Chill Merchandise / Hold / Display Clean Ventilate Delfield Delfield Garland Ice-O-Matic Delfield Jackson Halton * Kysor Panel Systems Kysor/ Warren Varimixer Wearever Redco Frymaster Lincoln Cleveland US. Range Dean Merrychef Convotherm Scotsman Scotsman Beverage Systems Scotsman Merco Savory Scotsman Beverage Systems Kysor/ Warren * Alliance HIGH PERFORMANCE KITCHEN 19

20 Strategy - Service BEFORE DURING AFTER THE SALE Lean Manufacturing 28 factories in 8 countries Technology Center Customer Service Service in >120 countries Design Service 20

21 Long Term Goals Value Drivers Category People Goals A sustainable winning team, customer focused and results oriented Systems and Processes Best-in-class practices across the group 21

22 Long Term Goals Financial Drivers Top Line Growth Organic > GDP +2% through the cycle Acquisitions - c 50m bolt-ons and monitor larger opportunities Margin Improvement Medium term, achieve 12%* in FY09 Long term 14%* (best in class by business) (* pre-corporate) 22

23 Long Term Goals Financial Drivers Cash generation Cash conversion days < 35 Group tax rate < 33% Target 2X net debt/ EBITDA Use of Funds Capex 15-25m/year Dividend cover of 2.5X Acquisitions: >WACC and synergistic EPS enhancing Capital management tool 23

24 Agenda Momentum continues Enodis is well positioned >> Strategy and goals Summary the investment case 24

25 A consumer led market Consumer is demanding... Operators increasingly global... Enodis is well positioned... More choices Better quality Faster service Wide product range (hot and cold) Global infrastructure Demand Demand Technologies to profitably meet consumer demands Enodis best placed to help high growth chains meet consumer demands 25

26 Primary Competition by Major Product Segment Core Cooking Products Enodis - Cleveland STEAM EQUIP. Groen (Dover Corp.) Enodis - Frymaster & Dean FRYERS Pitco (Middleby) Enodis - Garland & US Range RANGES Vulcan (ITW) 26

27 Primary Competition by Major Product Segment Accelerated Cooking Products Enodis - Convotherm COMBI OVENS Rational (Rational GmbH) Enodis - Merrychef HIGH SPEED OVENS TurboChef (TurboChef) ICE MACHINES Enodis - Lincoln CONVEYOR OVENS Middleby Marshall (Middleby) 27

28 Primary Competition by Major Product Segment Other Products Enodis - Merco & Frymaster HOLDING / WARMING Hatco (Hatco) Enodis - Delfield REFRIGERATION / PREP True (True Manufacturing Co) Enodis - Scotsman & IOM ICE MACHINES Manitowoc (Manitowoc) Hoshizaki (Hoshizaki) Enodis - Scotsman Beverage BEVERAGE DISPENSE Cornelius (IMI) 28

29 Primary Competition by Major Product Segment Food Service Equipment Enodis - Merco & Frymaster HOLDING / WARMING Hatco (Hatco) Core Cooking Products Enodis - Cleveland Enodis - Convotherm Enodis - Delfield STEAM EQUIP. COMBI OVENS REFRIGERATION / PREP Groen (Dover Corp.) Rational (Rational GmbH) True (True Manufacturing Co) Accelerated Cooking Products Enodis - Frymaster & Dean Enodis - Merrychef Enodis - Scotsman & IOM FRYERS HIGH SPEED OVENS ICE MACHINES Pitco (Middleby) TurboChef (TurboChef) Hoshizaki (Hoshizaki) Manitowoc (Manitowoc) Enodis - Garland & US Range Enodis - Lincoln Enodis - Scotsman Beverage RANGES CONVEYOR OVENS BEVERAGE DISPENSE Vulcan (ITW) Middleby Marshall (Middleby) Cornelius (IMI) Competition Varies by Product Segment and Market Enodis has a Broader Product Portfolio than Most Competitors 29

30 Clear Strategy for Profitable Organic Growth Plank one... Local, regional, national and global sales and service strategy Leverage relationships with high growth chains to increase share Enodis global service network supports our customers growth Leverage Enodis distribution worldwide 30

31 Clear Strategy for Profitable Organic Growth Plank two... Technology / Product Technology enabling operators to meet consumer trends/demands High Performance Kitchens to improve operator profitability and meet Green trend Expand Accelerated Cooking Technology speed and flexibility 31

32 Key competitive differentiators Market Position Markets served Global service & support R&D Leading Brands Enodis is a global market leader in foodservice Global market share approx 9%* Enodis services the needs of most commercial customers with wide range of products QSRs Full service restaurants Hotels Institutions Enodis has a network of c1000 distributors/service agencies in over 120 countries Education and Technology Center in Florida Enodis directs 1.5% of revenues to new product development initiatives Globally recognized brands *source: Botany Hill Management, Inc. 32

33 Management Experience/Track Record The current management team Phase 1 Turnaround Phase 2 Creating a stable growth platform Phase 3 Aggressively exploiting growth opportunities in a dynamic global market has successfully managed Enodis through phases 1 and 2 is committed to building Enodis organically and by acquisition is consistently adding bench strength 33

34 M&A Strategy - grow business by targeting strategic, value-enhancing acquisitions Criteria: Technology Products Geography Proprietary technologies Ability to leverage technologies across other group products Complementary products/enhancements Fill in product gaps to offer a one stop shop Enables Enodis to support its global customers Strong local well recognised brands for regional markets Low cost / local manufacturing resource 34

35 M&A Strategy - grow business by targeting strategic, value-enhancing acquisitions Criteria: Financial Channels to market Management Must be compatible with margin aspirations over time Must be capable of achieving group growth targets New customers through which the group can leverage its products Strong management able to operate autonomously within the Enodis culture 35

36 ... the name behind the occasion 36