capital markets day - severfield · programme director for the clm delivery partner between 2006...

Capital Markets Day

Nova, Victoria

24 March 2015

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Capital Markets Day

Our vision

Our vision is to be recognised as world-class

leaders in structural steel, known for our

ability to deliver any project, to the highest

possible standard.

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Ian Lawson Chief Executive Officer

Introductions

Alan Dunsmore Finance Director

Ian Cochrane Chief Operating Officer

Gary Wintersgill Managing Director Severfield (UK) Ltd

Jim Martindale Managing Director

Severfield (Design & Build) Ltd

Martin Kelly Strategic Business

Development Director

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10:15-10:30 Introduction and performance update: Ian Lawson, Chief Executive Officer, Severfield plc

10:30-11:15 Design and build process: Jim Martindale, Managing Director, Severfield (Design & Build)

11:15-12:00 Bridge and Network Rail Opportunities: Gary Wintersgill, Managing Director, Severfield (UK)

12:00-12:30 Presentation: Mark Reynolds, Chief Executive Officer, Mace

12:30-13:15 Lunch

13:15-13:30 Site safety induction and PPE

13:30-14:45 Site visit to Nova, Victoria

14:45-15:00 Return to hotel for refreshments

15:00-15:30 Strategic review of our market potential: Martin Kelly, Group Strategic Development Director,

Severfield plc

15:30-16:00 Wrap-up: Ian Lawson

16:00 Finish

Agenda

Capital Markets Day

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Current trading update

Capital Markets Day

Severfield (Design & Build)

An overview of the design and build process


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• Overview and what we do

• Key clients

• The design and build market

• Differentiation - what sets us apart from our

competition?

• Questions and answers

The design and build process

Contents

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Main market sectors:

Industrial

Retail

Structural steel throughput – 24,000 tonnes per annum

• Design & Build (we design the frame) = 80% (approx)

• Traditional (consultant designs the frame) = 20% (approx)

Average project size: 1,500 tonnes

Range covered: 300 to 7,000 tonnes

Business overview


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What we do


10

What we do


11

What we do


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The complete service - concept to completion

• Budget pricing and technical advice (best value engineering)

• Rapid turnaround tender pricing

• Complete design and drawing service

• Specialist project management

• Deliver and drive aggressive programmes - On-time, every time

• Tight cost control

Key: Early involvement

What we do


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Recent end clients


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Regular repeat business customers (main contractors)


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Sector 2012 (tonnes) 2013 (tonnes) 2014 (tonnes)

Distribution 12,174 10,045 22,537 (348km2) (287km2) (644km2)

Manufacturing 4,667 11,587 3,080

Retail 3,824 6,182 2,100

Leisure - 1,300 -

Data Centres 4,948 1,945 -

Total (tonnes) 25,613 31,059 27,717

Our work mix over the last 3 years


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Looking ahead - market data


250

300

350

400

450

500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

'00

0 t

on

ne

s

Industrial output

Industrial actual

Industrial forecast

Prime equivalent yield Dec 13 Dec 14

Warehouse A1 4.75% 4.25%

Industrial distribution 5.75% 4.75%

Industrial multi-let 5.75% 5.00%

Source: BCSA

Source: Saville's

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Our unique selling points:

• Largest in-house design and drawing office in the UK

• ‘One stop shop’ service: structural steel + stairs + edge protection

+ floor decking + pre-cast concrete

• Deliver fast track programmes

• Tolerances – straight lines

• A customer-focused approach based on cost certainty

Differentiators – what sets us apart?


Questions and

Answers

For more information:

Name – Jim Martindale, Managing Director

Tel: +44 (0) 1944 710 421

Severfield (Design & Build) Limited

Ward House

St Hildas Street

Sherburn

Malton

YO17 8PZ

www.severfield.com

Severfield (UK)

Bridge and Network Rail Opportunities

Gary Wintersgill

Managing Director

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Bridge and Network Rail opportunities

Contents

• Overview and market share

• Market and opportunities

• Track record/innovation

• Strategic approach

• Acquisitions

• HS2 and Crossrail 2

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Overview and market share

Market sector No. of bridges Tonnage % of market

Road 40 11,383 54%

Rail 35 4,729 23%

Foot 31 3,041 14%

Gantries 151 1,894 9%

Total 257 21,047

3 key players (70%): Severfield, Cleveland Bridge and Mabey Bridge

2014-2015

Severfield 55,000

Bridges 8 3,320 16%

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Control Period 5 (2014 to 2019) - £37.5 billion

£22.1 billion will be spent on infrastructure projects

Steel projects:

• Station refurbishments

• Rail bridges

• Road bridges

• Foot bridges

• Electrification

Strategic opportunities:

• Crossrail

• HS 2 & 3

Market and opportunities

Western & Wales

£4.7 billion

(including major

projects) Southern

£2.6 billion

Thameslink

£1.6 billion

Track

£2.2 billion

Scotland & North East

£2.5 billion Signalling

£4.3 billion

(including SP&C)

Central

£4.2 billion


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We are currently working on a number of Network Rail projects

Past performance


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Track record and innovation


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How do we maximise our reputation, relationships and capabilities?

Strategic

Alliance

Project

Acquisitions

Strategic approach


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1 of 3

UK-based bridge providers

Mabey Bridge team


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• Strategic involvement through bodies such as the British Constructional

Steelwork Association (BCSA)

• Dedicated resource to work within technical teams

• Forming of strategic alliances

HS2/Crossrail 2


Questions and

Answers


Name – Gary Wintersgill, Managing Director

Tel: +44 (0) 1845 577 896

Severfield (UK) Limited

Severs House

Dalton Airfield Industrial Estate

Dalton

Thirsk

YO7 3JN

www.severfield.com

Mace A key client

Mark Reynolds

Chief Executive Officer

Lunch

We will resume at 1:15pm

Strategic Opportunity

Martin Kelly, Group Strategic Development Director

24 March 2015

Strategic Opportunity

Martin Kelly

Group Strategic Development Director

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Strategic opportunity

Introduction

• Improving economy – market data

• Order book and prospects

• Increase UK market share

• New market sectors

• Overseas markets

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Market overview

889

965

988

1,019

1,042

800

850

900

950

1,000

1,050

1,100

2014 2015 2016 2017 2018

'00

0 t

on

ne

s

UK Production '000 tonnes

CAGR 4.1%

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Key sectors

300

350

400

450

500

550

600

650

700

750

2013 2014 2015 2016 2017 2018

'00

0 t

on

ne

s

Key sectors '000 tonnes

Bridges CAGR 5.5%

Power Generation CAGR 6.2%

Leisure CAGR 6.0%

Private Offices CAGR 9.3%

Industrial CAGR 5.8%

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Order book

32%

17%

7%

9%

5%

5%

10%

4%

3% 0%

8%

Mar 14

39%

21% 2%

11%

4%

3%

5%

3%

2% 0%

10%

Oct 14

36%

18% 5%

11%

2%

5%

11%

5%

1% 0%

6%

Feb 15 Commercial

Transport & Airports

Power & Energy

Distribution

Industrial

Retail

Stadiums & Leisure

Bridges & Car Parks

Health

Education

Data Centre &Others

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-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Orderbook - Mar 14 Orderbook - Oct 14 Orderbook - Jan 15

Data Centre & Others

Education

Health

Bridges & Car Parks

Stadiums & Leisure

Retail

Industrial

Distribution

Power & Energy


Commercial


Order book growth

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Orderbook - Mar 14 Orderbook - Oct 14 Orderbook - Feb 15

Data Centre & Others

Education

Health

Bridges & Car Parks

Stadiums & Leisure

Retail

Industrial

Distribution

Power & Energy


Commercial

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Increase UK market share

• Benefitting from increase in

structural steelwork activity

• Focussed on larger projects

within our target markets

• Increase in large-scale

projects, playing to our

strengths of scale, capability

and capacity

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Enter new market sectors

• Infrastructure and bridge markets ⁻ The adoption of the Mabey Bridge Infrastructure division provides us

with the breadth and depth of resource to capitalise on the growth

seen in these markets

⁻ Coupled with that, we have a targeted approach with key

infrastructure project owners to exploit the growth opportunities in

these sectors

• New products / lower costs solutions ⁻ We are currently exploring options to gain access to the middle and

lower tier structural projects which currently do not provide us with an

appropriate return

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Overseas opportunities

• European opportunities ⁻ Build on joint partnering arrangements

⁻ Reactive on tendering opportunities

⁻ Reactive evaluation of merger and acquisition opportunities

• Rest of the World ⁻ Access markets through trade missions

⁻ Access markets through export guarantees/funding

• JSSL India ⁻ Support the near India export opportunities for JSSL

Questions and

Answers


Name – Martin Kelly, Strategic Business Development Director

Tel: +44 (0) 1845 577 896

Severfield plc

Severs House


Dalton

Thirsk

YO7 3JN

www.severfield.com

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Wrap-up

Capital Markets Day

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Future prospects

• An improving order book

• Increasing prospects evidenced in:

⁻ Retail

⁻ Distribution

⁻ Infrastructure

• Our capacity, resource and abilities

• A clear strategy to deliver key markets evidenced by:

⁻ Bridge market

⁻ UKTI trade

• India losses significantly reduced

Capital Markets Day

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• Increased revenue

• Improving margins

• Growth in profitability

Providing increased shareholder value.

Future prospects

Capital Markets Day

Thank you.


Name – Ian Lawson, Chief Executive Officer

Tel: +44 (0) 1845 577 896

Severfield plc

Severs House


Dalton

Thirsk

YO7 3JN

www.severfield.com

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Severfield structure

Executive Committee

Ian Lawson Chief Executive Officer

Alan Dunsmore Finance Director

Ian Cochrane Chief Operating Officer

Derek Randall Executive Director and Managing Director JSSL (India)

Gary Wintersgill Managing Director Severfield (UK)

Jim Martindale Managing Director Severfield (Design & Build)

Brian Keys Managing Director Severfield (NI)

Sian Evans

Group HR Director

Lee Mills

Group SHE Director

Mark Sanderson Legal Director & Company Secretary

Martin Kelly Strategic Business Development Director

Severfield (UK) Severfield (NI) Severfield

(Design & Build)

Gary Wintersgill

Managing Director


Brian Keys

Managing Director

Dalton

Lostock

Sherburn Enniskillen

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Mark Reynolds

Introduction

Mark was appointed Mace’s Chief Executive in January 2013, and has been a

member of the group board since 2001. His vision is for Mace to double turnover by

2020 to become a £2bn company by focusing on major programmes and projects

and continuing to deliver high quality services and solutions to clients.

He was Deputy Chief Executive from 2010 until 2012, responsible for developing

Mace’s programme management capability following the success of the London

2012 Olympic and Paralympic Games, where he fulfilled the role as the Deputy

Programme Director for the CLM Delivery Partner between 2006 and 2011.

Mark joined Mace in 1996, and has worked with key clients including BAA,

Manchester Airport, British Airways, Transport for London and Veolia Water. His

career began in 1979 as a management trainee and he progressed to working on

the Broadgate and Ludgate development projects in the City of London.

capital markets day - severfield · programme director for the clm delivery partner between 2006...

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