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

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

Jul 07, 2023 7 likes •230 views

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

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SLIDE 1

Welcome to Severfield-Rowen plc

Capital Markets Day

25 April 2014

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SLIDE 2

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
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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

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SLIDE 4

Why we are here

The Place, London Bridge Leeds Arena Thameslink Borough Viaduct Bridge Titanic Signature Building, Belfast

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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

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Where we are

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

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SLIDE 7

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
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SLIDE 8

What we do – design

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SLIDE 9

What we do – fabrication

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SLIDE 10

What we do – site erection

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SLIDE 11

Bringing it together: Manchester City - a case study

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SLIDE 12

Bringing it together: Manchester City - a case study

  • Originally constructed for 2002 Commonwealth

Games

  • With running track and no lower tier
  • Converted following Commonwealth Games
  • Lower Tier and North stand added
  • Opened as home for Manchester City Football

Club in August 2003

Existing stadium

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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

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Current tonnage outputs (2013) – Top 12 companies

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Output (tonnes) BCSA Member

Top 12 BCSA Membership – current UK market outputs

Source: BCSA

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Sector Market tonnage in 2013 (000s) SFR market 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%

Our sectors

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UK consumption of constructional steelwork – historical and projected – 2009-2017

Source: BCSA (historical data)

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Platform for growth

  • Creating a sustainable business
  • Growing margin
  • Increasing market share
  • Capitalising on improving economy
  • Developing new markets
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SLIDE 18

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
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India – overview

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

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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 3rd June
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Thank you

Questions