FULL YEAR RESULTS 2020
HERO IMAGE WITH 150 LOGO OVERLAID
© The Weir Group PLC, 2021
JON STANTON Chief Executive Officer
2
Full Year Results 2020
WE ARE WEIR
1 Taking care of our people, customers and communities
2 Delivered a highly resilient financial performance in 2020
4
3 Completed strategic transformation into a premium mining technology business
3
Commitment to grow ahead of our markets and expand margins in the medium term
5 Disciplined capital allocation to deliver value for stakeholders
Full Year Results 2020
AGENDA
FY 2020 Summary – Jon Stanton, CEO
FY 2020 Financial Review – John Heasley, CFO
Business Review – Jon Stanton, CEO
Q&A
4
Full Year Results 2020
TAKING CARE OF OUR PEOPLE, CUSTOMERS AND COMMUNITIES
TIR1
Safety is always our number 1 priority •
Re-configured operations to be Covid secure
1.8
•
Delivered 23% reduction in underlying TIR1
1.6 1.4
Fully serving our customers •
Leveraged diversified operations and supply chain
•
Met rapidly evolving demand patterns
1.2
0.8
Supporting our local communities
0.6
•
Provided PPE and essential supplies
0.4
•
Accelerated payments for small local suppliers
0.2 0.0
1. Total Incident Rate (TIR) represents the rate of any incident that causes an employee, visitor, contractor or anyone working on behalf of Weir to require off-site medical treatment per 200,000 hours worked.
77% reduction since TIR measure introduced
1.0
5
2012
2013
2014
2015
2016
2017
2018
2019
2020
Full Year Results 2020
A HIGHLY RESILIENT PERFORMANCE
Group aftermarket revenues1
Mining markets recovering
800
• Activity recovering after initial Covid-19 slowdown
700 600
• Sequential order growth in Q4; good start to 2021
500 400 300
Revenues and operating profits robust
200 100
• Iron Bridge OE drove 4% growth in Minerals revenue
0
• ESCO revenue in line with mining machine utilisation
175 150
• ESCO margins >500bps since acquisition
H1'19
H2'19
H1'20
H2'20
15.5%
15.1%
16.0%
16.2% 14.5%
15.0%
100
10%
75 50
of 1.7x
1. Continuing operations at constant currency. 2. Adjusted. 3. Pro forma Net debt : EBITDA is on a lender covenant basis, adjusted to reflect the disposal of Oil & Gas
5%
25 0
• Strong cash generation 6
20% 15%
125
Strengthening balance sheet • Proforma
H2'18
Group EBITA2 and margins1,2
• c.£40m cost savings offset Covid-19 impact on EBITA
Net Debt to EBITDA3
H1'18
H1'18
H2'18
H1'19
EBITA
H2'09
H1'20
Operating margin
H1'20
0%
Full Year Results 2020
STRONG EXECUTION IN CHALLENGING CONDITIONS
Completed transformation into mining technology pure play • c.80% of revenues from mining applications
Integrated Solutions orders of £159m despite access restrictions Creating smarter, more efficient and sustainable solutions • Initial orders for Cavex® 2 and ToolTekTM
Capturing long-term growth: c.£95m AM order for Iron Bridge Continuing to expand global capability • New super centre in Turkey to support growth in West / Central Asia • New service centre in Panama
7
Cavex® 2 delivers an increase in capacity of up to 30%.
JOHN HEASLEY Chief Financial Officer
8
Full Year Results 2020
RESILIENT PROFITABILITY WITH O&G SALE SUPPORTING DELEVERAGING ORDERS1
£1.9bn
-13% -9% ex Iron Bridge
REVENUE1
£2.0bn
2.5 2.0
-1%
1.5
0.5
0.5
2019
0.0
2020
350
£255m
16.0%
300 15.5%
250 200
-5%
15.0%
150
14.5%
2020
2019 Operating Profit
2020
300 250 200 150 100
Statutory loss after tax
50 0
2019
PROFIT BEFORE TAX2
100
• EPS2 DOWN 5%
1.5 1.0
OPERATING PROFIT1,2
0%
2.0
1.0
0.0
£305m
2.5
14.0%
£(149m)
Operating margins
• NO FINAL DIVIDEND
• OPERATING CASH FLOW3 £372m
50 0
2019
2020
• PRO FORMA NET DEBT: EBITDA4 1.7x
1. Continuing operations at constant currency. 2. Continuing operations adjusted operating profit, profit before tax and EPS 3. Operating cash flow (cash generated from operations) includes continuing and discontinued operations and is before exceptional and other adjusting items cash flows, additional pension contributions and tax. 4. Pro forma Net debt : EBITDA is on a lender covenant basis, adjusted to reflect the disposal of Oil & Gas 9
Full Year Results 2020
MINERALS: RESILIENT PROFITABILITY; Q4 ORDER MOMENTUM
Orders1
£1,392m -12%, -9% ex IB
Revenues1
£1,469m +4%, -2% ex IB
ORDER AND REVENUE TRENDS1
EBITA1,2 £260m 0%
900 700 500
AM resilient reflecting production volumes
300 100
• Orders -4%, revenues -2%
-100
H1'18
H2'19
OE Orders
H1'20
H2'20
Revenue
EBITA1,2 AND MARGINS1,2
• Orders -29%, (-11% ex Iron Bridge)
150
• Revenues +19%, (-2% ex Iron Bridge)
17.6%
18.2%
17.2%
19.4%
17.2%
18.1%
125
75
10%
50
by greater OE mix
5%
25
• £30m cost savings largely offsetting Covid-19 impact on
0
under-recoveries; c.2/3rds of savings temporary 10
20% 15%
100
Q4 orders +17% sequentially
1. On a constant currency basis. 2. Adjusted
H1'19
AM Orders
OE reflects Covid-19 and Iron Bridge comparative
17.7% margin2,-70bps driven
H2'18
H1'18
H2'18
H1'19
EBITA
H2'19
H1'20
Operating margin
H2'20
0%
Full Year Results 2020
ESCO: STRONG MARGIN PROGRESSION
Orders1 £468m -15%
Revenues1 £496m -13%
ORDER AND REVENUE TRENDS1,2
EBITA1,3 £81m -2%
300 200
Gradual improvement in H2
100 0
• Q2 lows driven by Covid-19 and destocking • Mining relatively robust; infrastructure more disrupted • Orders +7% sequentially in Q4
H2'18 pro forma
H1'19
H2'19
H1'20
Orders
Revenue
H2'20
EBITA1,2,3 AND MARGINS1,2,3 50
16.3% margin2, >500bps since acquisition
40
• Delivered £9m cost savings, full realisation of cost synergies; limited incremental Covid costs • c.2/3rds temporary, c.60bps one-off margin benefit
1. On a constant currency basis. 2. Comparisons include 2018 on a pro forma basis. ESCO was acquired on 12 July 2018. 3. Adjusted
H1'18 pro forma
14.2%
16.1%
16.6%
20% 15%
30
10%
20
5%
10
11
11.1%
13.0%
14.9%
H1'18 pro forma
H2'18 pro forma
H1'19
H2'19
EBITA
H1'20
H2'20
Operating margin
0%
Full Year Results 2020
DISCONTINUED OPERATIONS Loss from discontinued operations • Adjusted operating loss of £21m as a result of challenging Oil & Gas market conditions • Adjusting items includes £209m non-cash fair value adjustment to align the carrying value of the division to expected sales proceeds
Completion of sale • Total Enterprise Value US$405m1 •
US$375m proceeds received February 2021
•
US$30m to be received on completion of JV sale
• US deferred income tax attributes of at least $65m
1. Subject to customary working capital and debt-like adjustments.
12
Loss for the period from discontinued operations £m
2020
Adjusted operating loss
(21)
Adjusted loss after tax
(27)
Adjusting items after tax
(261)
Statutory loss after tax from discontinued operations
(288)
Full Year Results 2020
ADJUSTING ITEMS: CONTINUING OPERATIONS Exceptional costs
Adjusting items recognised in arriving at operating profit from continuing operations £m
• Covid-19 costs principally related to Minerals and
2020
2019
(3)
(11)
(10)
-
Other restructuring and rationalisation charges
(2)
(16)
Black Economic Empowerment transaction
(4)
-
-
(6)
Exceptional items
(19)
(33)
Other adjusting items
(13)
-
Intangible assets amortisation
(39)
(47)
Total Adjusting Items
(71)
(80)
ESCO acquisition and integration related costs
ESCO severance
Covid-19 restructuring and other costs
• Completion of a B-BBEE ownership transaction in South Africa
Intangibles impairment
Other adjusting items • Increase in net liability for asbestos related legal claims £12m
13
Full Year Results 2020
OPERATING CASH FLOWS & WORKING CAPITAL
Strong operating cash flows pre working capital
Operating cash flow pre working capital – continuing operations
• Continuing divisions broadly in line
Operating cash flow pre working capital – discontinued operations
• Discontinued reflects O&G losses
Working capital cash flows – continuing operations
£m
2020
Working capital cash flows – discontinued operations
As expected, modest continuing operations working capital outflow • Unwind of prior year advance payments on the
Operating cash flow
Working Capital1
£m
500
22.6
21.7
Iron Bridge OE order • Reduced use of invoice discounting
400
300 1Working
2018
2019
396
401
(4)
62
(37)
(7)
17
(48)
372
408
% of sales
22.9
2020
2019
24.0 23.0 22.0 21.0 20.0 19.0 18.0 17.0 16.0 15.0 14.0
capital is presented for continuing operations, with pro-forma ESCO revenue adjustments applied in 2018 for working capital as a percentage of sales. 14
Full Year Results 2020
FREE CASH FLOW BENEFIT TO NET DEBT • Covid-19 response included cash preservation across tax, capex and dividends
Total operations Cash flow statement (as reported) £m Operating cash flow
• US$950m RCF & £200m Term Loan refinancing completed; extended maturity • c.£875m liquidity post Oil & Gas sale
2020 372
2019 408
Net interest
(51)
(45)
Tax
(63)
(90)
Net capex
(75)
(104)
Lease payments
(43)
(44)
5
(62)
Other cash flows
(13)
(20)
Free cash flow – pre dividends
132
43
-
(122)
132
(79)
Settlement of derivative financial instruments
• Net debt to EBITDA 2.7x on lender covenant basis, 1.7x pro forma1 including proceeds from O&G sale
Dividends paid Free cash flows Movement in net debt £m
Debt facilities (£m) -
200
400
600
800
1,000
1,200
1,400
2020
579
696
200
2021
579
696
200 -
2022
147
2023 -
696 696
Private Placement
1,600
1,800
2,000
300
1,157
Free cash inflow
(132)
Exceptional and other adjusting cash items FX and other
-
Net debt at 31 December 2020
Revolving Credit Facility
Net debt at 31 December 2019
Term Loan
CCFF
1. Pro forma Net debt : EBITDA is on a lender covenant basis, adjusted to reflect the disposal of Oil & Gas
15
24 2 1,051
Leases
179
Net debt at 31 December 2020 (excluding leases)
872
Full Year Results 2020
2021 FINANCIAL GUIDANCE
• Based on February FX rates expect full year operating profit headwind of £11m • Capex c. £100m • Exceptional cash costs <£10m • Interest broadly in line with prior year • Effective tax rate expected to be approximately 24-25% • Positive outcome on European State Aid; removal of £19m contingent liability • Pension cash contributions of £15m • On-market share purchases for share-based compensation plans c. £15m
16
Full Year Results 2020
KEY FINANCIAL MESSAGES
1 Highly resilient 2020 performance
2
3
Early cost action protected profit and margins
Strong cash generation, refinancing and O&G sale provide balance sheet strength14
17
4 Well positioned to support future growth agenda
JON STANTON Chief Executive Officer
18
Full Year Results 2020
OUR PURPOSE, DISTINCTIVE COMPETENCIES AND VALUES
19
Full Year Results 2020
A BUSINESS MODEL FOR GROWTH AND RESILIENT MARGINS
MISSION CRITICAL SOLUTIONS
INTENSIVE AFTERMARKET CARE
HIGHLY ENGINEERED EQUIPMENT
COMPREHENSIVE GLOBAL SUPPORT
Technology that enables reliable ore production
Large installed base from continuous innovation
Highly abrasive applications
On-site customer support in need-it-now industry
Disproportionate cost of unplanned downtime
Solutions offering lowest TCO and CO2 footprint
Recurring revenue from higher-margin spares
Regional manufacturing plants and supply chains
Up to
£10m
Cost per day of unplanned downtime on a typical copper mine
>90%
20%-100%
Customer retention rate, with some relationships 50+ years
Annual spares to original equipment ratio for entire product range
Within
Weir has facilities near every major mine in the world
Weir technology is used to process the majority of the world’s copper 20
200km
Full Year Results 2020
STRONG MARKET POSITIONS IN MISSION-CRITICAL APPLICATIONS EXTRACTION ESCO®
#1 in Ground Engaging Tools
COMMINUTION Enduron®
MILL CIRCUIT Warman®
#1 in HPGRs
#1 in Slurry Pumps
TAILINGS MANAGEMENT GEHO® #1 in PD pumps
Track record of improving productivity for customers underpins market leading positions 21
Full Year Results 2020
DELIVERING CONSISTENT PROFITABLE GROWTH THROUGH THE CYCLE
Best-in-class recurring revenue model – c. 75% AM
High margins through the cycle
£m
25%
1,200
20%
Minerals AM revenue 1,000
15% 10%
800
ESCO Operating Margin
5% 600
0%
Minerals Operating Margin
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
400
c.80% of revenues from mining applications1 200
0%
20%
40%
60%
80%
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1. Based on 2020 Continuing operations revenues.
22
Copper
Iron
Gold
Oil and gas
Coal -Thermal
Coal - Met
Other mining
Infrastructure
Industrial & other
100%
Full Year Results 2020
STRUCTURAL TRENDS UNDERPIN FUTURE GROWTH POTENTIAL
Growth in our markets is underpinned by three long-term structural trends
Demographics of population growth, urbanisation and rising living standards.
Decarbonisation of energy, transport and stationary equipment
Mining technology shift due to ESG and ore grade declines
The mining industry needs to meet the demand for more natural resources in a better way
To enable the sustainable and efficient delivery of the natural resources essential to create a better future for our world. Purpose 23
Full Year Results 2020
COMPREHENSIVE AND INTEGRATED SUSTAINABILITY ROADMAP
Creating sustainable solutions – making our customers more sustainable and enabling Net Zero Reducing our footprint – cutting relative emissions by 50% by 2030 Nurturing our unique culture – delivering top-tier employee net promoter scores Championing zero-harm – protecting our people and environments
24
Full Year Results 2020
R&D FULLY ALIGNED TO CUSTOMER PRIORITIES
Customer Priorities Safety
Social Responsibility
Energy Reduction
Increased Recovery
Water Reduction
Improve Throughput
Process Stability
Ore Grade Declines
Productivity, safety and environmental footprint
SMART More sensing, automation and performance insights
EFFICIENT Better wear life and throughput with less downtime
Working in partnership with global miners
25
SUSTAINABLE Safer operations that use less energy, water and waste
Full Year Results 2020
WINNING THROUGH ‘WE ARE WEIR’
Medium-term KPIs
Strategic initiatives
Distinctive Competency
2020 Benchmark Continuing Operations
People
• • •
Zero-harm workplace Diverse and inclusive workforce Investing in talent and skills
• •
Total Incident Rate (TIR) Employee NPS
• •
TIR of 0.41 Employee NPS +42
Strategic growth initiatives Expand service network Integrate digital experience
•
Growing ahead of our markets through the cycle
•
Customers
• • •
Ore production1 -3%; Minerals AM revenues -2% Machine utilisation -13%; ESCO revenues -13%
Technology
• • •
Lowest TCO and CO2e products Accelerate sustainable solutions Enterprise-wide integration of big data and analytics
• •
Increase R&D as a percentage of revenues Growth in sustainable solutions
• •
R&D: 1.6% of revenues Integrated Solutions +3%
• • •
Optimise operational leverage Lean and efficient functions Reduce scope 1 & 2 CO2e emissions
• • •
Operating margin3 progression Expansion in ROCE 30% reduction CO2e2 by 2024
• • •
Operating margin3 of 15.5% ROCE of 12.5% 13% reduction to tCO2e/£m to 75.7
Performance
1. Weir-weighted commodity exposure: source McKinsey. 2. 30% refers to tonnes of CO2e per £m of revenue. 3. Adjusted.
26
•
Full Year Results 2020
GROWING AHEAD OF OUR MARKETS
Weir organic initiatives
Mid to high single-digit growth through the cycle
Integrated Solutions Progress
Sustainable solutions
• • •
HPGR and dry processing Terraflowing®/Hydro-hoisting/Tool-Tek® New ‘Scope 4’ offerings
Expand product range
• • •
Materials and mechanical/hydraulic core Machine attachments and ancillaries Digital integration
Geographic expansion
• • •
Russia, Central Asia, China, APAC ESCO/Minerals revenue synergies Globalise ESCO infrastructure products
Integrated Solutions
• • •
Brownfield upgrade and de-bottleneck Greenfield sub-systems approach Increase service level agreements
180 160 140 120 100 80 60 40 20 0
Market growth c.3% p.a.
2017
2018
2019 Orders
27
2020
Full Year Results 2020
OPERATING MARGIN EXPANSION
Margin1 +150bps on current mix 2021-2023
Operational leverage Lean and efficient enterprise Maintain gross margins
ESCO Margin1 Progression • • •
Maximise gross margin drop-through Reduce waste and cost of poor quality Increase R&D investment
• • •
Leverage ERP globally Finance, HR and IT shared services Process automation
• • •
Optimise manufacturing footprint Foundry capacity and efficiency plans OE/AM mix dependency
20%
>500bps since acquisition
15%
10%
5%
2020: Margins1 15.5% 0%
H1 2018
H2 2018
H1 2019
H2 2019
Operating Margin
28
1. Adjusted.
H1 2020
H2 2020
Full Year Results 2020
JOURNEY TO NET ZERO 30% reduction in Scope 1 & 2 emissions by 2024
CO2e / £m of revenue •
Energy efficiency Renewable supply Empowered employees
• •
Manufacturing efficiency improvements from process and technology upgrades Key focus on global foundry operations
90
-13%
•
Long-term power supply agreements and selfgeneration Green contracts and certificates
• •
Business-unit specific initiatives and accountability Group-wide behavioural change and strategy
80
70
60
50
2020: 75.7 tCO2e/£m
2020 Launch roadmap
2021 Evaluation of Scope 3, Science Based Targets and Net Zero pathways
2024
2030
30% reduction in Scope 1 & 2 emissions 29
50% reduction in Scope 1 & 2 CO2e
2019
2020
2050 Net Zero
Full Year Results 2020
CAPITAL ALLOCATION POLICY
Investing in organic growth
Maintain strong balance sheet
•
Driving growth and margin progression
•
Normal Net Debt / EBITDA range of 0.5x - 1.5x
•
R&D to extend technology leadership
•
Up to 2x for acquisition at right time in cycle
•
Geographic and capacity expansion to fully capture
•
Target full investment grade credit rating
aftermarket opportunities
Selective M&A to accelerate strategy • • •
Shareholder returns
• Normal Net Debt / EBITDA range of Aligned to aftermarket-focused business model 0.5x - 1.5x; up to 2x for acquisition Expanding into niche technologies and adjacent applications • Investment grade credit rating Post-tax returns > WACC within 3 years • Dividend payout ratio of 33% of EPS through cycle •
Buyback shares for RSU vesting 30
•
Dividend payout ratio of 33% of EPS through cycle
•
On market share purchases for RSU awards
•
Further special returns of excess cash as appropriate
Full Year Results 2020
FAVOURABLE UNDERLYING MARKET CONDITIONS
DRIVING INCREASED INVESTMENT
STRUCTURAL TRENDS ACCELERATING
Electric vehicle sales (million vehicles)
Mining Capex ($Bn)2
45
220
40
200
Commodity prices indexed Jan 2020=1001 200 Iron Ore
160
30
Gold
Copper
180
180
35
REFLECTED IN CURRENT CONFIDENCE
160
140
25
120
20
100
15
80
140 120
60
10
100
40
5
80
20
0
0 US
Europe
China
RoW
Autonomous
1. Wood MacKenzie (2020). 2. McKinsey Dec 2020. 3. FactSet.
2020
2021 Exploration
2022
2023
SIB
2024
Major projects
31
2025
60 Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Full Year Results 2020
2021 OUTLOOK ESCO WEIGHTED MACHINE UTILISATION SHOWS GRADUAL RECOVERY
• Good start to Q1
100%
• Most mines open but personnel restrictions persist
95%
• Focus on maximising available production
90%
• Ore production expected to normalise in 2021
85% 80%
• Covid deferrals should support increased capex
75%
• Maintenance backlog; access issues slowly easing
70%
• Project pipeline remains strong
MAR-20
JUN-20
SEP-20
STRONG PROJECT PIPELINE
• Underpinned by structural trends
• Infrastructure showing initial signs of recovery
Feb-21
• Stimulus programmes support medium term outlook
Feb-20
Growth in constant currency profits expected, subject to further Covid disruption 1. FactSet Data. 2. Weir-weighted commodity exposure: source McKinsey.
32
DEC-20
Full Year Results 2020
KEY TAKEAWAYS
1 A premium and highly resilient mining technology business
2 Focused on making our customers more sustainable and efficient
4
3 A clear growth strategy to outperform our markets and expand our margins
33
Delivering value for all our stakeholders with disciplined capital allocation
5 Underpinned by a strong culture and 150-year record of Seeing Things Differently
Full Year Results 2020
Q&A 34
Full Year Results 2020
APPENDIX
35
Full Year Results 2020
CONTINUING OPERATIONS
£m
H1 2020
H2 2020
2020
20191
Growth
OE orders
200
205
405
556
-27%
AM orders
765
690
1,455
1,583
-8%
Total orders
965
895
1,860
2,139
-13%
OE revenue
185
306
491
411
19%
AM revenue
720
754
1,474
1,576
-6%
Total revenue
905
1,060
1,965
1,987
-1%
Book-to-bill
1.07
0.84
0.95
1.08
Adjusted operating profit2
135
170
305
305
0%
15.0%
16.0%
15.5%
15.3%
-20bps
187
172
359
394
-9%
Adjusted operating margin2 % Operating cash flow2 1 2019 restated at 2020 average exchange rates, except for operating cash flow. 2 Profit figures before adjusting items. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional and other adjusting cash items and income tax paid.
36
Full Year Results 2020
MINERALS REVIEW
£m
H1 2020
H2 2020
2020
20191
Growth
OE orders
187
190
377
529
-29%
AM orders
535
480
1,015
1,057
-4%
Total orders
722
670
1,392
1,586
-12%
OE revenue
171
290
461
386
19%
AM revenue
481
527
1,008
1,032
-2%
Total revenue
652
817
1,469
1,418
4%
Book-to-bill
1.11
0.82
0.95
1.12
Adjusted operating profit2
112
148
260
260
0%
17.2%
18.1%
17.7%
18.4%
-70bps
153
130
283
295
-4%
Adjusted operating margin2 % Operating cash flow2 1 2019 restated at 2020 average exchange rates, except for operating cash flow. 2 Profit figures before adjusting items. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional and other adjusting cash items and income tax paid.
37
Full Year Results 2020
ESCO REVIEW
£m
H1 2020
H2 2020
2020
20191
Growth
OE orders
13
15
28
27
2%
AM orders
230
210
440
526
-16%
Total orders
243
225
468
553
-15%
OE revenue
14
16
30
25
20%
AM revenue
239
227
466
544
-14%
Total revenue
253
243
496
569
-13%
Book-to-bill
0.96
0.93
0.94
0.97
41
40
81
83
-2%
16.1%
16.6%
16.3%
14.5%
+180bps
49
51
100
109
-8%
Adjusted operating profit2 Adjusted operating margin2 % Operating cash flow2 1 2019 restated at 2020 average exchange rates, except for operating cash flow. 2 Profit figures before adjusting items. Operating cash flow (cash generated from operations) excludes additional pension contributions, exceptional and other adjusting cash items and income tax paid.
38
Full Year Results 2020
QUARTERLY INPUT TRENDS Reported growth1 2020 Q1
2020 Q2
2020 Q3
2020 Q4
2020 FY
-13%
-9%
-57%
-18%
-29%
Aftermarket
-1%
-6%
-5%
-3%
-4%
Minerals
-5%
-7%
-27%
-8%
-12%
Original Equipment
25%
16%
-23%
6%
2%
Aftermarket
-8%
-28%
-24%
-2%
-16%
ESCO
-7%
-26%
-24%
-2%
-15%
-11%
-8%
-55%
-17%
-27%
Aftermarket
-4%
-13%
-12%
-3%
-8%
Continuing Operations1
-5%
-12%
-26%
-7%
-13%
Book-to-bill
1.10
1.03
0.82
0.87
0.95
Original Equipment
Original Equipment
1 Continuing operations (excludes the Oil & Gas division and Flow Control division)
39
Full Year Results 2020
ORDER INPUT BY END MARKET AND GEOGRAPHY
Order input by end market
Minerals
ESCO
1,083
263
1,346
Oil & Gas
84
39
123
174
Infrastructure
13
144
157
175
145
22
167
160
67
0
67
51
1,392
468
Minerals
ESCO
North America
297
246
543
672
Europe & FSU
156
46
202
213
Australasia
240
61
301
396
Middle East & Africa
166
41
207
246
South America
338
61
399
398
Asia Pacific
195
13
208
214
1,392
468
1,860
Mining
General Industrial Other Continuing operations
Order input by geography
Continuing operations
40
2020 Total
1,860
2020 Total
2019 Total 1,559
2,139
2019 Total
2,139
Full Year Results 2020
Working Capital1 Inventory 500
2.7
2.8
2.4
Debtors Inventory turns 2.6
£m 2.1
400 £m
3
70 68
66
66
60
64
59
62
400
1.6
300
60 Debtors days 58 56
1.1 300
500
2018
2019
Working Capital
2020
52
0.6
200
2018
2019
2020
Creditors 22.9
22.6
54
21.7
£m
24.0
500
% of sales23.0 22.0
£m
21.0 20.0
400
19.0
400
18.0 17.0 16.0 15.0 300
2018
2019
2020
14.0
300
1 Working
2018
capital and related metrics are presented for continuing operations, with pro-forma ESCO revenue adjustments applied in 2018 for debtors days and working capital as a percentage of sales. Inventory turns exclude ESCO in 2018 as fully comparable data is not available.
41
2019
2020
50
Full Year Results 2020
FOREIGN EXCHANGE BY CURRENCY
2019 Adjusted operating profit1 £m
2019 Revenue £m Currency
At 2019 rates
FX
At 2020 rates
At 2019 rates
FX
At 2020 rates
US Dollar
921
(6)
915
176
(2)
174
Australian Dollar
286
(4)
282
30
-
30
Canadian Dollar
207
(3)
204
55
(1)
54
87
1
88
34
1
35
167
(20)
147
43
(5)
38
-
-
-
-
-
-
107
(13)
94
4
-
4
Brazilian Real
49
(12)
37
6
(1)
5
Russian Rouble
49
(5)
44
10
(1)
9
177
(1)
176
(43)
(1)
(44)
2,050
(63)
1,987
315
(10)
305
Interest
(46)
-
(46)
PBTA
269
(10)
259
Euro Chilean Peso United Arab Emirates Dirham South African Rand
Other
Continuing operations Variance
Variance 1 Profit figures before adjusting items.
42
(4%)
Full Year Results 2020
FOREIGN EXCHANGE BY DIVISION
2019 Adjusted operating profit1 £m
2019 Revenue £m Division
At 2019 rates
FX
At 2020 rates
At 2019 rates
FX
At 2020 rates
Minerals
1,478
(60)
1,418
270
(10)
260
572
(3)
569
83
-
83
-
-
-
(38)
-
(38)
Continuing operations
2,050
(63)
1,987
315
(10)
305
Discontinued Operations
762
(4)
758
34
-
34
ESCO Central Costs
1 Profit figures before adjusting items.
43
Full Year Results 2020
FOREIGN EXCHANGE HEADWIND EXPECTED IN 2021
FY 2020 Adjusted operating profit1 £m
FY 2020 Revenue £m Currency
At 2020 rates
FX
At 2021 rates
At 2020 rates
FX
At 2021 rates
US Dollar
811
(54)
757
161
(10)
151
Australian Dollar
272
13
285
20
1
21
Canadian Dollar
188
(3)
185
53
(1)
52
Euro
180
(2)
178
40
-
40
Chilean Peso
154
3
157
42
1
43
South African Rand
93
3
96
3
-
3
Brazilian Real
48
(5)
43
6
-
6
Russian Rouble
45
(5)
40
5
(1)
4
174
(1)
173
(25)
(1)
(26)
1,965
(51)
1,914
305
(11)
294
Interest
(50)
1
(49)
PBTA
255
(10)
245
Other
Continuing operations Variance
Variance 1 Profit figures before adjusting items.
44
(4%)
Full Year Results 2020
EXCHANGE RATES
The principal exchange rates applied in the preparation of the financial statements were as follows:
Currency
2019 Average FX rate
2020 Average FX rate
2019 Balance sheetdate
2020 Balance sheet date
US Dollar
1.28
1.28
1.33
1.37
Australian Dollar
1.84
1.86
1.89
1.77
Canadian Dollar
1.69
1.72
1.72
1.74
Euro
1.14
1.13
1.18
1.12
897.37
1,015.14
994.76
970.26
8.81
8.86
9.24
8.92
South Africa Rand
18.43
21.06
18.54
20.04
Indian Rupee
89.81
95.12
94.49
99.76
Brazilian Real
5.03
6.61
5.33
7.10
82.53
92.76
82.29
101.32
Chilean Peso Chinese Yuan
Russian Rouble
45