Performance课件.pptVIP

Q2 2006/07 Performance KEY POINTS Financial Review Steve Hare CFO MY PRIORITIES AS CFO GOOD PROGRESS IN Q2 GOOD PROGRESS IN Q2 OPERATING CASH FLOW EXCLUDING LEGACY FREE CASH FLOW CONTROLS PROCESS SYSTEMS RAIL SYSTEMS APV EUROTHERM UPDATE ON DEBT FINANCING Rights issue and new Senior Credit Facility fully in place Cash from IBS disposal set aside for debt repayment Tender for High Yield Senior Notes due 2011 announced 11 October – maximum principal amount of USD $180 million Results at early tender deadline – USD $256 million in principal amount validly tendered Net debt ￡291 million at 30 Sep 06 down ￡439 million in the quarter PENSIONS IN SUMMARY Q2 results show good progress OPBIT ￡61 million (Q2 2005/06: ￡45 million) Operating margin 9.6% (Q2 2005/06: 7.5%) Profit from continuing operations ￡45 million (Q2 2005/06: ￡15 million loss) 2006 Refinancing provides a strong platform However: More focus on efficient use of cash Operational Review Ulf Henriksson CEO GROWTH Process Systems and Rail Systems: Strong end markets Improved competitive position Large UK Network Rail orders delayed to H2 APV: Core markets are stable Availability of titanium limits growth in heat exchangers Controls: Global consumer demand is stable but future is unpredictable US new housing construction demand is unpredictable OPERATING MARGIN Operating margin continuing to improve Improved predictability by consistent delivery (eliminated quarterly variations of the past) Productivity of both direct and overhead costs has lead to continued strong margin % improvements Cautiously increasing investment in overheads to accelerate growth GROWTH INVESTMENT PRIORITIES CASH FLOW Stabilised operating cash flow generation Investing for growth and efficiency For example: Medium to short term inventory build up to improve delivery performance Excellent execution in our major project businesses CONTROLS Market position/ Environment Global market conditions are stable, exception being US