1 / 57

Preliminary Results - 1999

Preliminary Results - 1999. Dennis Millard. Group Finance Director. Introduction. Transformation process during 1999: Disposals during the year: Fibers, Zimco, Tam, Entek and Polyflex To be disposed: Neptco, Moldings and Focas

bryant
Download Presentation

Preliminary Results - 1999

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Preliminary Results - 1999

  2. Dennis Millard Group Finance Director

  3. Introduction • Transformation process during 1999: Disposals during the year: Fibers, Zimco, Tam, Entek and Polyflex To be disposed: Neptco, Moldings and Focas • Focus on results of ongoing operations: Electronics, Ceramics and Precious Metals • Acquisitions: Premier, Enthone, Plaskon and others • Group Results: Earnings, Cash Flow, Exceptional Items and Financial Condition

  4. Financial Highlights of 1999 • Group - Profit before Tax£149m for year - in line with expectationsStrong H2 growth - up 18% • Ongoing Operations - Operating Profit+10% for year+39% for H2 • Positive Free Cash Flow: 5th year in succession • £900m acquisitions & disposals concludedNet cash outlay of £524m • Borrowings rise: interest cover in line with target

  5. Ongoing Operations Trading Results

  6. £bn Precious Metals Electronics Disposals +16%* £283m £295m £790m £542m Ceramics Sales: Ongoing Operations * (at 1999 exchange rates)

  7. % Increase vs 1998* Reported Excl. Acqs Electronics 14 8 Ceramics 30 (3) Precious Metals 1 1 Group 16% 3% Divisional Sales: Ongoing Operations * (at 1999 exchange rates)

  8. EXCL. ACQS Group +8% Electronics +14% Ceramics +2% PreciousMetals +1% 1998 1999 Sales: Ongoing Operations % Growth vs Previous Year* * (at 1999 exchange rates)

  9. £m Precious Metals +9%* Electronics Disposals £30m £65m £29m £49m Ceramics Operating Profit: Ongoing Operations * (at 1999 exchange rates)

  10. % Increase vs 1998* Reported Excl. Acqs Electronics 24 14 Ceramics (6) (22) Precious Metals 8 6 Group 9% (2)% Divisional Operating Profit: Ongoing Operations* * (at 1999 exchange rates)

  11. EXCL. ACQS Group +15% Electronics +43% Ceramics -1% PreciousMetals -1% 1998 1999 Operating Profit: Ongoing Operations % Growth vs Previous Year* * (at 1999 exchange rates)

  12. % % 1998 1999 % Return on Sales: Ongoing Operations

  13. % 13%* '97 '98 '99 '97 '98 '99 '97 '98 '99 '97 '98 '99 % Return on Investment: Pre-Tax * (after tax - 9%)

  14. Group Results Profit, Cashflow, Exceptionalsand Financial Condition

  15. £millions 1999Actual Inc/(Dec) vs 1998 ONGOING OPERATIONS144 12 Electronics 65 13 Ceramics 49 (3) Precious Metals 30 2 TO BE DISPOSEDNeptco, Focas & Moldings 21 2 DISCONTINUEDFibers, Zimco, Tam & Polyflex 8 (13 ) EXCHANGE- 2 GROUP£173m £3m Group Operating Profit* * (Before goodwill amortisation & exceptional items)

  16. £million 1999 1998 Operating Profit 173 170 Less : Interest 24 19 PROFIT BEFORE TAX 149 151 Less : Taxation 39 39 : Minorities 2 2 PROFIT AFTER TAX £108m£110m +£5m: FundingH2 acquisitions YEAR: -2%H2: +18% Effective Rate1998/9: 26% Group Profit Before & After Tax* * (before goodwill amortisation & exceptional items)

  17. 1999 1998 EARNINGS PER SHARE* 15.5p 16.0p -3% - 1st Half 6.9 8.4 -18% - 2nd Half 8.6 7.6 +13% DIVIDENDS PER SHARE 9.5p 9.4p +1% - Final 5.2 5.1 - Interim 4.3 4.3 Shareholder Returns * (before goodwill amortisation & exceptionals)

  18. £million 1998Act 1999Act 2000Est Restructuring 9 22- Integration: Premier - 1323 : Enthone - -12 COSTS 9 3535 CASH OUTFLOW 7 2145 Operating Exceptionals: Costs* * (excludes asset write-offs: 1998 - £41m: 1999 - £10m)

  19. £million 1999Act 2000Est 2001Est Restructuring 81515 Integration: Premier -1330 : Enthone --12 82857 Operating Exceptionals: Benefits

  20. £m 221 26 225 67 150 128 75 0 EBITDA* Working Capital Net Capex Net operating cash flow* Operating Cash Flow: 1999 (£millions) * (before rationalisation costs)

  21. £m 128 15 125 86 100 75 50 27 21 25 6 0 Net operating cash flow* Tax Interest and dividends Free cash flow* Ration-alisation costs Free cash flow Free Cash Flow: 1999 (£millions) * (before rationalisation costs)

  22. 1999 Cash Flow£m Consideration£m Acquisitions Enthone 315 Plaskon 75 Dexter 21 IRI 11 Premier 254 Others 60 TOTAL £736m £394m Disposals Cookson Fibers 92 Zimco 3 Entek 14 Tam 49 Polyflex 12 TOTAL £170m £158m NET CASH OUTFLOW £236m Transactions

  23. Actual At year end £461m 7.3 times After Enthone acquisition £750m Borrowings & Interest Cover Net Borrowings Interest Cover

  24. Actual At year end £461m 7.3 times After Enthone acquisition £750m Pro-forma* At year end c.£725m 4.5 times Borrowings & Interest Cover Net Borrowings Interest Cover * (Premier, Enthone & Plaskon w.e.f. January 1999)

  25. Summary • Group - Profit before Tax£149m for year - in line with expectationsStrong H2 growth - up 18% • Ongoing Operations - Operating Profit+10% for year+39% for H2 • Positive Free Cash Flow: 5th year in succession • £900m acquisitions & disposals concludedNet cash outlay of £524m • Borrowings rise: interest cover in line with target

  26. Stephen Howard Group Chief Executive

  27. Agenda • Process of transformation • Acquisitions - update • Recent & current trading environment • Forward priorities

  28. Highlights • Group’s transformation substantially complete • Disposal of Focas advanced: Neptco & Moldings disposal process underway • Integration of acquisitions on target • Strong H2 1999 • Positive free cash flow, despite rationalisation spend • e-business opportunities being crystalised

  29. Process of Transformation Cookson in Q4 1997: • 4 divisions • 5 businesses • 9 markets • Over 100 companies Electronics Ceramics Engineered Products Plastics Advanced Refractories CMC Precious Metals Specialty Fibers Zimco Telecom Products Specialty Moldings Plastic Additives

  30. Process of Transformation Cookson in Q1 2000: Electronic Materials Ceramics PreciousMetals Materials technology & process improvements for industry worldwide Fewer, Stronger, Leaner

  31. Acquisitions - Update Premier Refractories • Integration proceeding to plan • £20 million in cost savings initially identified for 2001 and beyond • Additional £10m of cost savings identified to impact from 2001

  32. Vesuvius & Premier Refractories • One of only two world players • Market leadership at high-tech, high margin end of market • Customer reaction favourable • Many opportunities for expanded customer relationships identified World-class refractories group, with strong management, unparalleled breadth of product range and service capability

  33. Acquisitions - Update PC Fab: Enthone-OMI/Dexter • Integration process commenced with full integration by end of 2000 • £12m savings to accrue from 2001 onwards • Positive reaction from Electronics market • Enhances service capability & geographic reach Strong management, world-class product line, and critical mass to deliver enhanced process solutions

  34. Acquisitions - Update Assembly Materials: Plaskon & IRI Plaskon: integration complete Leverages high growth BGA position, and equipment product lines, to provide semiconductor packaging solutions IRI: integration complete Positions Cookson as global leader in stencils

  35. Recent and Current Trading

  36. Q4 1999 Trading Environment Electronics General improving trend continued Ceramics Start of recovery in steel industry Precious Metals Market conditions remained sound “An increased momentum in our core markets”

  37. Q1 2000 Trading Environment Electronics Polyclad & Alpha-Fry Technologies Continuation of buoyant Q4 trading conditions Speedline Technologies Order backlog remains strong PCB shipments US - 7% growth expected in 2000* Global - growth 7-12% (by value) to 2004** * Source: Henderson Ventures ** Source: Prismark

  38. Q1 2000 Trading Environment Ceramics Steel sector - Marked improvement in demand in Americas, continental Europe and Asia - Exciting developments emerging in thin slab and strip casting technologies Foundry sector - Remains steady Glass sector - Remains soft, due to delayed furnace refurbishments

  39. Q1 2000 Trading Environment Precious Metals Jewellery - US findings up over record 1999 - Mill business in line with previous normalised trading levels Precision Products - Trading well up over 1999 Precious Metal Consignment Fees - Expenses higher, but expected to decline as gold lease rates fall

  40. Forward Priorities

  41. Forward Priorities Operational and technological excellence through… • realisation of benefits from transformation programme • continuous re-invention within our core businesses • executing e-business opportunities …delivering top and bottom line growth

  42. Cookson: 4 Phase e-Business Development Strategy Phase 1: Presence Phase 2: Interaction Phase 3: Transaction Phase 4: Transformation “Brochure-ware” General market information Product & process specification Catalogues Personalisation E-commerce EDI support Databases Customer self-service Real time access Supply chain optimization Customer integration Industry specific application engines New business models

  43. Cookson: 4 Phase e-Business Development Strategy Phase 1: Presence Phase 2: Interaction Phase 3: Transaction Phase 4: Transformation Product & process specification Catalogues Personalisation E-commerce EDI support Databases Customer self-service Real time access Supply chain optimization Customer integration Industry specific application engines New business models Award winning Group site Customer-facing sites:all sectors New ‘industry’ portal addresses registered

  44. Cookson: 4 Phase e-Business Development Strategy Phase 1: Presence Phase 2: Interaction Phase 3: Transaction Phase 4: Transformation E-commerce EDI support Databases Customer self-service Real time access Supply chain optimization Customer integration Industry specific application engines New business models Award winning Group site Speedline parts catalogues Customer-facing sites:all sectors US findings catalogues New ‘industry’ portal addresses registered Online CRM

  45. Cookson: 4 Phase e-Business Development Strategy Phase 1: Presence Phase 2: Interaction Phase 3: Transaction Phase 4: Transformation Supply chain optimization Customer integration Industry specific application engines New business models E-learning solutions for CED customers Award winning Group site Speedline parts catalogues Customer-facing sites:all sectors US findings catalogues cooksongold.com online shop New ‘industry’ portal addresses registered On-line ordering Online CRM Major ERP investment

  46. e-Business: Electronics Case Study FryTechnology AlphaMetals e-business Initiatives Polyclad Speedline Business-to-Business (B2B): Electronic On-Line Ordering Customer Self Service Sector TopInitiatives       On-Line Customer Relationship Management   Employee Intranet  Engineering to Order (Stencils)  Automated PCB Design/Configuration Tool  One additional Initiative for procurement and vendor interface will be surfaced by the Divisional Procurement Team headed by Chris Benincasa On-Line Technical Service “Expert System”  Technical Documentation On-Line  Remote Service/Diagnosis On-Line  Automated/Advanced Planning & Scheduling Supply Chain Management  Vendor Managed Inventory (VMI)

  47. Cookson Performance Solutions • Trademark: CPS WebWare • Industry’s first internet-based interactive multi-media training system for PCB assemblers • Fast & efficient new techniques in training customer’s employees, enhancing Cookson’s function as a process solution provider • Showcasing 10 training modules at Apex trade fair

More Related