Annual General Meeting 4 September 2018 AGM statement AGM - - PowerPoint PPT Presentation

Annual General Meeting

4 September 2018

AGM statement

March 2018 AGM Presentation

Alan Dunsmore Chief Executive Officer

3

September 2018 AGM Presentation

Highlights

• Revenue up 5% at £274.2m
• Underlying profit before tax up 19% at £23.5m
• Continued strong cash generation with net funds of £33.0m
• UK order book at £210m
• Improved India order book of £128m reflects continued positive

market developments

• Improved profitability of Indian business – Group share £0.5m
• Underlying basic EPS up 15% at 6.4p
• Proposed final dividend of 1.7p per share
• Proposed special dividend of 1.7p per share
• Continued good progress made towards 2020 profit target of £26m

4

September 2018 AGM Presentation 5

Revenue and profit

• 5

10 15 20 25 30

• 50

100 150 200 250 300 2015 2016 2017 2018 2019 2020 PBT (£m) Revenue (£m) Revenue Underlying profit before tax

2018 underlying PBT of £23.5m represents an underlying operating margin of 8.3% Continued good progress towards achieving £26m underlying PBT target by 2020.

September 2018 AGM Presentation 6

32.6 33.0 26.7 (4.0) (5.4) (7.5)) (5.5)) (2(3.9))

• 10.0

20.0 30.0 40.0 50.0 60.0 70.0

Net funds - March 2017 Operating cash flow Working capital movement Net capex Dividends paid Investment in India Tax Net funds - March 2018

£ million

Net funds bridge - year ended 31 March 2018

Represents continued investment in the new in-house painting facilities, new equipment for our fabrication lines, site construction equipment and improvements to

• ur site infrastructure and staff welfare facilities.

Reflects additional investment in Indian joint venture to repay the term debt in June 2017.

Cash flow

September 2018 AGM Presentation 7

Health and education Retail Commercial offices Transport Data centres and other Industrial and distribution Stadia and leisure Power and energy

Market sectors

September 2018 AGM Presentation 8

270 315 229 245 237 210 211 259 198 216 200 181 50 100 150 200 250 300 350 Jun-16 Nov-16 Jun-17 Nov-17 Jun-18 Sep-18 £m UK order book (total) UK order book (<12 months)

High quality UK order book

September 2018 AGM Presentation

22 Bishopsgate, London Tottenham Hotspur FC Stadium

Current major projects

Ferrybridge Multifuel 2 Power Station

Endorsing Severfield’s leading market position

JLR Gaydon Triangle, Midlands

9

Three Snowhill, Birmingham

September 2018 AGM Presentation

Wimbledon No.1 Court Southbank Place, London

Current major projects

Endorsing Severfield’s leading market position

10

Ordsall Chord KGX1, London

September 2018 AGM Presentation

India - overview

• GDP growth remains strong. India is developing fast and

modernisation is wanted by people, especially the educated younger generation

• Legislation changes such as goods and services tax (‘GST’), real

estate regulatory authority (‘RERA’) and health care building standards are all assisting growth and ease of doing business

• Much greater realisation by developers and construction supply chain
• f the benefits of steel in construction. Interest is growing across many

sectors

• Strong order book and positive forward outlook (including residential

solution)

11

September 2018 AGM Presentation

Current major projects - India

12

TATA Cancer Hospital National Cancer Institute Phoenix - Aquila JSW – Pellet Plant, Dolvi

September 2018 AGM Presentation

Prospects - India

13

Phoenix – Centaurus MG Setu, Patna State Secretariat’s Office, Amravati Hiranandani - TCS Sattva Knowledge Park

September 2018 AGM Presentation 14

New revenue streams

• European projects
• Residential solution
• Severfield (Products &

Processing)

• More cold rolled products,

including purlins

Smarter, safer, more sustainable

• Innovation
• Systems
• People
• Productivity
• Risk management,

control and safety

• Optimisation of steel

footprint in North Yorkshire now completed

Our vision

To be recognised as world-class leaders in structural steel, known for our ability to deliver any project, to the highest possible standards

Driving future growth

September 2018 AGM Presentation

Summary

• Strong annual results with:

‒ Increased revenue ‒ Excellent profit growth ‒ Good cash generation

• Strategy implementation benefiting

underlying operating margins

• Progressive dividend policy and

special dividend for 2018

15

Resolutions

4 September 2018

September 2018 AGM Presentation

Adoption of the financial statements and of the Directors’ and Auditor’s reports

Resolution One

17

Proxies lodged by

173

Holding

239,213,945 shares

Percentage of total voting rights

78.7%

Votes in favour

238,057,361 99.52%

Votes against

1,156,584

Votes withheld

September 2018 AGM Presentation

Approve Directors’ remuneration report

Resolution Two

18

Proxies lodged by

173

Holding

239,119,944 shares

Percentage of total voting rights

78.7%

Votes in favour

239,005,356 99.95%

Votes against

114,588

Votes withheld

94,000

September 2018 AGM Presentation

Approve final dividend

Resolution Three

19

Proxies lodged by

172

Holding

239,213,945 shares

Percentage of total voting rights

78.7%

Votes in favour

239,213,945 100.00%

Votes against Votes withheld

September 2018 AGM Presentation

Approve special dividend

Resolution Four

20

Proxies lodged by

172

Holding

239,213,945 shares

Percentage of total voting rights

78.7%

Votes in favour

239,213,945 100.00%

Votes against Votes withheld

September 2018 AGM Presentation

Reappoint John Dodds as director

Resolution Five

21

Proxies lodged by

169

Holding

218,511,287 shares

Percentage of total voting rights

71.9%

Votes in favour

212,191,476 97.11%

Votes against

6,319,811

Votes withheld

20,702,657

September 2018 AGM Presentation

Reappoint Ian Cochrane as director

Resolution Six

22

Proxies lodged by

176

Holding

239,206,945 shares

Percentage of total voting rights

78.7%

Votes in favour

232,919,620 97.37%

Votes against

6,287,325

Votes withheld

7,000

September 2018 AGM Presentation

Reappoint Alan Dunsmore as director

Resolution Seven

23

Proxies lodged by

176

Holding

239,206,945 shares

Percentage of total voting rights

78.7%

Votes in favour

232,927,702 97.37%

Votes against

6,279,243

Votes withheld

7,000

September 2018 AGM Presentation

Reappoint Derek Randall as director

Resolution Eight

24

Proxies lodged by

174

Holding

239,181,945 shares

Percentage of total voting rights

78.7%

Votes in favour

232,907,951 97.38%

Votes against

6,273,994

Votes withheld

32,000

September 2018 AGM Presentation

Reappoint Adam Semple as director

Resolution Nine

25

Proxies lodged by

175

Holding

239,206,945 shares

Percentage of total voting rights

78.7%

Votes in favour

232,902,068 97.36%

Votes against

6,304,877

Votes withheld

7,000

September 2018 AGM Presentation

Reappoint Alun Griffiths as director

Resolution Ten

26

Proxies lodged by

173

Holding

239,198,195 shares

Percentage of total voting rights

78.7%

Votes in favour

234,926,083 98.21%

Votes against

4,272,112

Votes withheld

15,749

September 2018 AGM Presentation

Reappoint Tony Osbaldiston as director

Resolution Eleven

27

Proxies lodged by

173

Holding

239,204,644 shares

Percentage of total voting rights

78.7%

Votes in favour

234,937,532 98.22%

Votes against

4,267,112

Votes withheld

9,300

September 2018 AGM Presentation

Reappoint Kevin Whiteman as director

Resolution Twelve

28

Proxies lodged by

174

Holding

239,206,944 shares

Percentage of total voting rights

78.7%

Votes in favour

233,404,990 97.57%

Votes against

5,801,954

Votes withheld

7,000

September 2018 AGM Presentation

Reappoint KPMG LLP as auditor

Resolution Thirteen

29

Proxies lodged by

172

Holding

239,103,945 shares

Percentage of total voting rights

78.7%

Votes in favour

238,966,574 99.94%

Votes against

137,371

Votes withheld

110,000

September 2018 AGM Presentation

Authorise Directors to determine Auditor’s remuneration

Resolution Fourteen

30

Proxies lodged by

173

Holding

239,206,612 shares

Percentage of total voting rights

78.7%

Votes in favour

239,089,582 99.95%

Votes against

117,030

Votes withheld

7,333

September 2018 AGM Presentation

Authorisation to allot shares

Resolution Fifteen

31

Proxies lodged by

171

Holding

239,179,127 shares

Percentage of total voting rights

78.7%

Votes in favour

239,027,102 99.94%

Votes against

152,025

Votes withheld

29,348

September 2018 AGM Presentation

Disapplication of pre-emption rights

Resolution Sixteen

32

Proxies lodged by

172

Holding

239,188,945 shares

Percentage of total voting rights

78.7%

Votes in favour

239,027,658 99.93%

Votes against

161,287

Votes withheld

25,000

September 2018 AGM Presentation

Disapplication of pre-emption rights in connection with an acquisition or specified capital investment

Resolution Seventeen

33

Proxies lodged by

171

Holding

239,070,444 shares

Percentage of total voting rights

78.7%

Votes in favour

237,309,978 99.26%

Votes against

1,760,466

Votes withheld

143,500

September 2018 AGM Presentation

Authorisation to make market purchases of own shares

Resolution Eighteen

34

Proxies lodged by

171

Holding

239,166,096 shares

Percentage of total voting rights

78.7%

Votes in favour

237,376,810 99.25%

Votes against

1,789,286

Votes withheld

47,848

September 2018 AGM Presentation

Authorisation to hold general meetings with 14 days’ notice

Resolution Nineteen

35

Proxies lodged by

173

Holding

239,170,445 shares

Percentage of total voting rights

78.7%

Votes in favour

238,119,733 99.56%

Votes against

1,050,712

Votes withheld

43,500