Severfield-Rowen plc Capital Markets Day 25 April 2014 The team - PowerPoint PPT Presentation

Welcome to Severfield-Rowen plc Capital Markets Day 25 April 2014

The team here today • Ian Lawson, Chief Executive Officer • Ian Cochrane, Chief Operating Officer • Alan Dunsmore, Finance Director • Steven Day, Deputy Managing Director – Severfield Watson Structures • Paul Hulme, Associate Director

Your day 1130-1200 Health and safety briefing and collect protective gear 1200 Lunch and presentation by CEO Ian Lawson and senior operational management 1330-1445 Tour of the Lostock facility 1500 Transport to Manchester Piccadilly Station 1555 Train departs Manchester Piccadilly Station

Why we are here Titanic Signature Building, Belfast Thameslink Borough Viaduct Bridge The Place, London Bridge Leeds Arena

What we are • Severfield is the UK's premier structural steel company • We are the largest structural steel business in the UK and one of the biggest in Europe • We are a business built on pride, passion, projects and quality people

Where we are Dalton, Thirsk Lostock, Bolton Sherburn, Scarborough Enniskillen, N. Ireland Mumbai, India

What sets us apart • What we do • Our markets and position in them • Our capability and people • Our stability and capacity • International operation • A strong platform for growth

What we do – design

What we do – fabrication

What we do – site erection

Bringing it together: Manchester City - a case study

Bringing it together: Manchester City - a case study Existing stadium • Originally constructed for 2002 Commonwealth • Converted following Commonwealth Games • Lower Tier and North stand added Games • With running track and no lower tier • Opened as home for Manchester City Football Club in August 2003

The UK market (2013) • Current estimated UK capacity – 1,000,000 tonnes • Total UK production of constructional steelwork – 848,000 tonnes • SFR potential capacity – 150,000 tonnes • SFR plc share of UK market – 90,000 tonnes Source: BCSA

Current tonnage outputs (2013) – Top 12 companies Top 12 BCSA Membership – current UK market outputs 90,000 80,000 70,000 Output (tonnes) 60,000 50,000 40,000 30,000 20,000 10,000 0 BCSA Member Source: BCSA

Our sectors Sector Market tonnage in SFR market 2013 (000s) share (estimated) Industrial & Warehousing 350 42% 5-10% Commercial Offices 88 10% 30-40% Education 88 10% <5% Power & Energy 37 4% 20-30% Agriculture 35 4% 0% Healthcare 31 4% 5-10% Leisure 31 4% 20-30% Bridges 25 3% <5% Retail 20 2% 40-50% Other 53 6% 5-10% Exports 90 11% <5% 848 100%

UK consumption of constructional steelwork – historical and projected – 2009-2017 Source: BCSA (historical data)

Platform for growth • Creating a sustainable business • Growing margin • Increasing market share • Capitalising on improving economy • Developing new markets

India – our investment to date • Equity invested by SFR since 2009: £11.9m • Equity invested by JSW since 2009: £11.9m • Equity has financed one third of factory cost, and trading losses to date • Factory cost: £26m • Debt within JV: £22m, a mixture of term debt and working capital debt • Term debt of £15m relating to factory build

India – overview • Challenging market • Forthcoming elections • Views in the market • Our partner JSW • Current strategy 1. Self help 2. Business development 3. Debt reduction

Proud of our past: Positioning for our future • A new company name • A new and dynamic brand • A new website • A proactive programme of internal and external communications

A strong platform for growth • The business is in a much improved state from 12 months ago • We have unrivalled capabilities which puts us in prime position as the economy starts to improve • Our facilities are the best in the UK and possibly Europe • In the UK there are areas and sectors of the market were our market share can possibly be improved • There are potential opportunities for growth in Europe • We have a very skilled and dedicated workforce • We have appointed a new SHE Director • We are appointing new NEDs to make us both compliant and to inject fresh ideas and support into the business • Our Final Results are published on the 3 rd June

Thank you Questions