strategy delivering further strong growth/media/files/d/discoverie... · 2020-06-24 · discoverie...

Preliminary results FY20 – 24th June 2020discoverIE Group plc

Preliminary resultsYear ended 31st March 2020

24th June 2020

Strategy Delivering Further Strong Growth


◼ Group sales up 6%, organic +2%◼ D&M organic +5%

◼ Underlying operating profit +21%

◼ Underlying EPS +11%

◼ Excellent cash conversion: 106% of operating profits

◼ Three acquisitions in the year for £74m◼ Integrating well

◼ Record order book +13%

◼ COVID-19 arrives in Q4 in China, subsequently spreading internationally

A good year with excellent cash generation

1

Preliminary results FY20 – 24th June 2020discoverIE Group plcdiscoverIE Group plc

From FY13 to FY18:

◼ Sales(1) up > 2x

◼ Underlying EPS up > 2x

◼ Operating profits up > 4x

◼ Share price growth 19% CAGR(2)

◼ Dividend growth 7.6% CAGR(3)

(1) Group revenue, excluding disposed businesses(2) Growth from April 2012 (FY13) to March 2018(3) Growth from FY13 to FY18

From FY19 our aim has been to double underlying EPS in 5 years

◼ FY19 + FY20 op profits up 51%

◼ FY19 + FY20 EPS up 35%

We aim to provide investors with

◼ Returns of 15 – 20% pa

◼ A progressive dividend

Sustainable growth Company

2

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

SALES(1)


FINANCIAL REVIEW


Financial Review

Strong growth in returns and cash generation

4

◼ Increasing operating margin ◼ Up 1.0ppt to 8.0%

◼ Excellent cash performance ◼ Operating cash flow up 37% to

£39.3m

◼ 106% operating cash conversion

◼ Growing ROCE(2)

◼ Up 0.6ppts to 16.0%

(1) Underlying measures exclude acquisition-related costs (see Appendices I and III)(2) ROCE is underlying operating profit (annualised for Sens-Tech) as a percentage of

net assets plus net debt

FY20 FY19 GrowthCER

Growth

Revenue £466.4m £438.9m +6% +8%

Underlying operating profit(1) £37.1m £30.6m +21% +23%

Underlying profit before tax(1) £32.8m £27.2m +21%

Underlying EPS(1) 30.2p 27.2p +11%


Financial Review

Ongoing revenue growth

5

Revenue up 120% in 6 years (14% CAGR)

(1) Organic sales growth excludes the first 12 months of acquisitions.

Growth FY20

Organic(1) 2%

Acq 6%

CER 8%

Currency -2%

Actual 6%


(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and III).(2) Prior mid-term target was Nov 21. New target of 12.5% in the next 5 years.

Financial Review

6

◼ Underlying operating profit(1) of £37.1m◼ Up £6.5m on FY19 (+21%

reported & +23% CER)

◼ 23% CAGR in last 3 years

◼ Underlying operating margin of 8.0%◼ Up 1.0ppts on FY19

◼ Up 4.6ppts in 6yrs

◼ Sens-Tech increases pro forma margin to 8.5% = mid term target(2)

Growing profit and margin


(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and III).

Financial Review

7

Earnings enhanced by acquisition contribution

◼ Underlying operating profit up 23% CER

◼ Organic revenue growth of 2%

◼ Gross margin up 0.6ppts to 33.6%◼ Reduced 0.4ppts organically

◼ Opex at 25.6% of sales, the lowest level since strategy began.

◼ Continued investment in D&M offset by savings in CS

◼ Acquisition contributions from Cursor Controls, Hobart, Positek & Sens-Tech

◼ Organic EBIT reduced £1.0m; includes £1.4m investment in D&M future growth initiatives

◼ Offset by £8m benefit from acquisitions


(1) EBIT is underlying operating profit(2) Organic growth excludes the first 12 months of acquisitions.

Financial Review

CUSTOM SUPPLY

DESIGN & MANUFACTURING

D&M continuing to drive Group performance…

Operating profit up £8.7m CER◼ Profits up 30% CER

◼ Margin up 1.6pts CER to 12.8%

Operating profit reduced £1.2m CER◼ Margin down 0.7ppts to 4.3%.

8

£m

D&M 297.9 38.1 12.8% 263.0 29.4 11.2% 12% 13% 5% 30%

Custom Supply 168.5 7.3 4.3% 170.8 8.5 5.0% (2%) (1%) (4%) (14%)

Unallocated (8.3) (7.8)

Total (CER) 466.4 37.1 8.0% 433.8 30.1 6.9% 6% 8% 2% 23%

FX 5.1 0.5

Total (reported) 466.4 37.1 8.0% 438.9 30.6 7.0%

Revenue EBIT( 1 ) %

FY20

Revenue EBIT( 1 )

EBIT( 1 )

growth

%

Revenue growth

Organic(2 )% Actual CER

FY19 (CER)


(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and III)(2) Fully diluted EPS

Financial Review

… delivering 11% EPS growth

9

◼ Underlying PBT up 21%◼ Finance costs up £0.9m

◼ Underlying EPS up 11% to 30.2p◼ Up c.150% in 6yrs (17% CAGR)

◼ Reported PBT/EPS impacted by acquisition volume◼ £74m on acquisitions (inc £4m

expenses, 2 placings)

£m FY20 FY19 Growth

Underlying operating profit(1) 37. 1 30.6 21%

Finance costs (4 .3) (3.4)

Underlying PBT(1) 32.8 27.2 21%

Effective tax rate 20% 25%

Underlying PAT(1) 26.2 20.5 28%

Fully diluted shares (m) 86.9 75.4 15%

Underlying EPS(1) (p) 30.2p 27.2p 11%

Reported PBT 19.5 19.3

Reported EPS(2) (p) 16.5p 19.4p


OPERATING CASH FLOW(1)

Financial Review

10

Excellent cash generation

(1) Operating cash flow defined as EBITDA less working capital, capex and IFRS 16 lease charges – see Appendix IV(2) Net debt at 31 Mar 20 as a ratio of adjusted EBITDA (Group underlying EBITDA adjusted for a full year of the underlying EBITDA from acquisitions).

◼ Strong operating cash flow(1)

◼ £39.3m for FY20, up 37%◼ 106% of underlying operating profit◼ Consistently high conversion rate over

the last 7 years.

◼ Net debt at 31 Mar 20 of £61.3m

◼ Gearing(2) of 1.25x from 1.6x proforma at H1. LT target range 1.5 –2.0x

◼ Revolving credit facility of £180m

◼ Plus £60m accordion ◼ Term extended to June 24

◼ Eligible in principle for BofE CCFF

◼ Not expected to be required.

FY14 FY15 FY16 FY17 FY18 FY19 FY20 Target

100% 104% 100% 136% 90% 93% 106% 85%% Underlying

Operating Profit

£7. 1m

£13.9m

£16.3m

£27. 1m

£22.1m

£28.6m

£39.3m


11

Financial Review

Increasingly cash generative, disciplined use of capital

◼ Free cash flow at 54% of EBITDA

◼ Increasing strongly in the last 2yrs

◼ 104% of underlying PAT (v 85% target)

◼ Increasing self funding capacity for acquisitions


OPERATING REVIEW


Response to COVID-19 pandemicPriority has been employee & trading partner safety and cash preservation

13

Decisive response:◼ Balance sheet & liquidity

◼ Gearing of 1.25x with £180m facility and nearly £120m headroom

◼ Eligibility in principle for BoE CCFF - Not expected to be required

◼ Operational continuity maintained◼ Each business enacting emergency operating plan◼ Safe working conditions established◼ Over 650 employees working from home

◼ Cash conservation & cost reductions◼ Deferral of non essential capex and other discretionary spend◼ Deferral of bonuses & pay rises together with a new hiring freeze◼ Final dividend not proposed◼ 20% salary reduction for the Board and Group Executive for 3 months◼ Continued focus on working capital efficiency◼ Acquisitions deferred, but pipeline development continues

Operating Review


Status of operations during COVID-19 ▪ 27 manufacturing facilities across 17 countries

▪ All open, some with reduced but growing capacity▪ Several sites granted essential supplier status

▪ 6 sites temporarily closed by government mandate (c. 1 mth) – all since reopened▪ China (2 sites) shut from Chinese New Year, recovering quickly in March▪ Sri Lanka closed end of March, re-opened late April▪ India (2 sites) closed end of March, both re-opened by early May▪ US (California) closed mid March, re-opened end of April ▪ Gradual re-opening to ensure safe working

▪ New operating procedures with safe ▪ working conditions established▪ Split shifts with no overlap▪ Social distancing policies introduced

by reconfiguring operations▪ Enhanced cleaning procedures▪ Closed canteens▪ Face to face meetings replaced with

video calls▪ Business travel cancelled

14

Operating Review


Helping customers fight the virus

15

Supporting customers’ rapid development and supply of essential components

▪ Over 60 customer projects:▪ 24 ventilator projects▪ 8 fluid / chemical analysers▪ 7 temperature sensing projects▪ 5 air purification projects▪ 5 hospital beds▪ Various other related projects

Operating Review


16

41%

12%

25%

22%

Power

Magnetics

Components

Systems

D&M clustersRevenue share

▪ Capital light model with capex c.2%/rev

▪ R&D investment c. 2%/rev▪ Customer specific

development

Operating ReviewDesign & Manufacturingdivision

▪ 64% Group Revenues ▪ 6% Organic CAGR over last 5 years▪ Generating 84% of FY20 Group profit contribution

▪ 13% operating margin▪ 2ppts improvement in last 5 years

▪ 14 acquisitions completed since 2011▪ Increasing specialist capability

and international reach

▪ 27 manufacturing sitesin 17 countries


Note: At constant exchange rates (CER)

Operating Review

Design & Manufacturing division

17

◼ 5% organic growth◼ Sales +5%◼ Orders +4%

◼ 2.8x increase in 5yr sales◼ 27% CAGR profit growth

◼ Regional manufacturing◼ Flexible & adaptable◼ Lower risk

◼ £1.4m investment in future growth

◼ Investment in IT systems◼ Tailored to business needs

◼ Management development programme

Growth FY20

Organic 5%

Acquisitions 8%

CER 13%

Currency -1%

Actual 12%


▪ Growth ahead of wider markets with lower cyclicality• Target markets – resilient• Slowing growth rates driven by non-target markets• COVID-19 impact in Q4 was £4m sales, £1.5m EBIT; H2 growth would have been 5%

▪ Asia drives international growth• Western multinational customers

(1) Sales destination

Operating Review

Widespread D&M organic growth

18


▪ Target market sales grew at 9% organically▪ Higher growth, less cyclical than wider market

▪ Target markets account for 72% (PY: 66%) of D&M revenue▪ New design wins account for >90%, future growth driver

Operating Review

Target markets continue to drive organic growth

19


Note: At constant exchange rates (CER)

Operating Review

Custom Supply division

20

◼ Organic sales down 4%

◼ Market slowdown prior to CV19

◼ Profits down by £1.2m CER

◼ Continued growth in Italy and Benelux◼ Germany impacted by wider slow

down caused by auto sector◼ UK, and France also down

◼ RSG power business now integrated

◼ Management development programme

◼ Cross selling up 8% CER to £11.4m ◼ Higher gross margins (c.+10ppts v CS

GM)


◼ £159m record order book

◼ CER +13%

◼ Organic +7% v FY19

◼ High proportion of recurring revenues

◼ Driven by

◼ New project design wins

◼ Repeat revenue growthFY13 FY14 FY15 FY16 FY17 FY18 FY19

Operating Review

Record order book underpins FY21

21

£52m £50m£65m

£73m£85m

£109m£122m

£141m

£159m


Renewable energy

Transportation

DESIGN WINS

Creating future growth£260m in new project wins

(est lifetime value or ELV)

Wins represent 16% of current revenue

Wins up 37% over 2 years

>90% of D&M in target markets

(1) Estimated lifetime sales value of projects,

Operating Review

22

Medical

Industrial & Connectivity

£92m

£127m

£190m

£266m £260m

FY16* FY17 FY18 FY19 FY20

Design wins - ELV(1) (£m)


Operating Review

Consistent, proven strategy

◼ Sales growth well ahead of GDP over the economic

cycle

◼ Move up the value chain into higher margin products

◼ Acquire businesses with attractive growth prospects

and strong operating margins

◼ Further internationalise the business

◼ Generate strong cash flows and long term sustainable

returns

23


Focused on sustainable growth markets

▪ Global trends driving structural growth

▪ Product development driven by technology

▪ Increasing electronic content

▪ Essential products

▪ Markets aligned with UN SDG*

24

Transportation Medical Industrial &Connectivity

Smart transportation market to grow 18.7%

CAGR globally (2019-24) Research & Markets

Medical electronics to grow 8% CAGR (2018 -

2024) TechSci Research

70% of growth in global electricity production (2017-23) will be into

renewable energyInternational Energy

Agency

Industrial market for Semiconductors to grow 10.8% CAGR (2018-22);

IoT market to grow 18.7% CAGR 2019-24

Markets-and-Markets

Renewable Energy

* UN SDG United Nations Sustainable Development Goals

Operating Review

Preliminary results FY20 – 24th June 2020discoverIE Group plc 25

▪ Enablers of new sustainable capabilities

▪ Smart agriculture

▪ Efficient food manufacturing systems

▪ Efficient water use/management

▪ Water quality improvement

Growth areas where electronics will drive efficiency, intelligence and sustainability

Example:Resource

Optimisation

Industrial &ConnectivityIndustrial market for

Semiconductors to grow 10.8% CAGR (2018-22); IoT

market to grow 18.7% CAGR 2019-24

Markets-and-Markets


▪ Industrial applications that support & enable sustainability

▪ Energy efficiency, automation & communication

▪ Focus on improvement

Refining our industrial market focusOperating Review


◼ 14 D&M acquisitions, £268m spent since 2011

◼ Average EBIT ROI of D&M acquisitions(1) since acquisition of 17% (v 15% target)

Acquisitions performing well

(1) Average ROI defined as average operating profit attributable to the business since acquisition over acquisition cost comprising up-front consideration, acquisition expenses, earn-out (once earned), and integration costs

(2)All D&M businesses included which were acquired more than 2yrs ago. Excludes recent acquisitions: Cursor Controls, Hobart Electronics, Positek and Sens-Tech.

Operating Review

26

Average EBIT ROI (1)


Operating Review

Good progress towards targets

27

Revised targets for the next 5 years(1) As a percentage of Group revenue(2) Mid-term was a period to Nov 2020(3) New targets for the five-year period to Mar 2025(4) A final dividend has not been proposed due to COVID-19(5) Includes an annualisation of the results of Sens-Tech acquired in Oct 2019 n/d – not previously disclosed

Key Strategic Indicators Mid term NewTargets (2) Targets (3)

1. Increase share of Group revenue from D&M(1) 18% 37% 48% 52% 57% 61% 64% 75% > 75%

2. Increase underlying operating margin 3.4% 4.9% 5.7% 5.9% 6.3% 7.0% 8.0% 8.5% 12.5%

3. Build sales beyond Europe(1) 5% 12% 17% 19% 19% 21% 27% 30% 40%

4. Target Market Sales(1) n/d n/d n/d 56% 62% 66% 68% New 85%

Key Performance Indicators

1. Sales growth

CER 17% 36% 14% 6% 11% 14% 8%D&M Organic 3% 9% 3% -1% 11% 10% 5%Group Organic 2% 3% 3% -1% 6% 8% 2%

2. Increase cross-selling £0.3m £0.9m £3.0m £4.6m £8.8m £10.6m £11.4m £12m p.a.

3. Underlying EPS growth 20% 31% 10% 13% 16% 22% 11% >10%

4. Dividend growth 10% 11% 6% 6% 6% 6% n/a(4) Progressive

5. ROCE 15.2% 12.0% 11.6% 13.0% 13.7% 15.4% 16.0%(5) >15%

6 Operating cash flow 100% 104% 100% 136% 90% 93% 106% >85% of Op

profit

FY14

FY16

FY17

FY17FY14

Well ahead

of GDP

FY19

FY19FY18

FY18 FY20

FY20

FY15

FY15

FY16

Targets

Preliminary results FY20 – 24th June 2020discoverIE Group plc 28

Business fundamentals

▪ Growth markets

▪ Designed-in products, difficult to replace

▪ Distinct business, competitive advantage

▪ Low customer concentration

▪ Design, not price led

▪ Low capital requirements

▪ Acquisitions at the right price

Attractive rewards

▪ GDP++ organic growth

▪ High levels of repeating revenue

▪ Sustainable margins

▪ Reduced risk

▪ Good gross margins

▪ Cash generative

▪ Earnings accretion

Our business

Operating Review


Operating Review

Outlook

29

◼ FY20: Fundamentals are in place for long term growth to continue◼ Target markets outperforming wider market◼ Record order book ending FY20◼ High level of design wins◼ Strong cash generation◼ Healthy acquisition pipeline

◼ Resilient trading in Q1◼ Sales running at -10% YoY organic◼ D&M 3 month order book consistent with prior year◼ Book to bill ratio of 0.85:1 reflects market conditions & shorter term ordering◼ June orders and sales tracking ahead of May.

◼ A robust & flexible business◼ Strong financial position◼ Clear strategy◼ Performing well

APPENDICES


◼ Management believe the adjustments enable a better understanding of the underlying performance of the business

◼ Adjustments made to IFRS results are:

◼ Acquisition/disposal related costs (transaction costs, earn-outs, amortisation of acquired intangibles, integration costs, profit/loss on acquisition or disposal, IAS 19 pension charge related to legacy scheme)

◼ Exceptional items (restructuring, one offs)

Appendix I

Underlying to IFRS reconciliation

31

FY20 (£m) Unde rlying Excep. Acqs Amort IAS19 IFRS

Gross profit 156.7 156.7

S&D costs (58.1) (58.1)

Admin expenses (61.5) (4.0) (9.0) (0.3) (74.8)

Operating profit 37. 1 0.0 (4 .0) (9.0) (0.3) 23 .8

Net finance costs (4.3) (4.3)

Profit before tax 32.8 0.0 (4.0) (9.0) (0.3) 19.5

Taxation (6.6) (0.1) 1.5 (5.2)

Profit after tax 26.2 0.0 (4 . 1) (7.5) (0.3) 14 .3


EPS 30.2p 16.5pFY19 (£m)

FY19 (£m) Unde rlying Excep. Acqs Amort IAS19 IFRS

Gross profit 145.0 145.0

S&D costs (57.7) (57.7)

Admin expenses (56.7) 0.2 (1.8) (5.9) (0.4) (64.6)

Operating profit 30.6 0.2 (1 .8) (5.9) (0.4) 22.7

Net finance costs (3.4) (3.4)

Profit before tax 27.2 0.2 (1.8) (5.9) (0.4) 19.3

Taxation (6.7) 0.1 0.5 1.3 0.1 (4.7)

Profit after tax 20.5 0.3 (1 .3) (4 .6) (0.3) 14 .6


EPS 27.2p 19.4p


Opex %

Gross margin %

Operating costs down 0.4ppts

◼ Improving operating efficiency

◼ Lowest ratio since strategy began

Operating margin % Operating margin of 8.0%

◼ 1.0ppt improvement from FY19

◼ Up 4.6ppts in 6 years

◼ Proforma of 8.5% including acquisitions = mid-term target

Efficiency drives operating margin

32

GM at its highest level

◼ GM has increased c7ppts since strategy began

Appendix II


UNDERLYING ADJUSTMENTS (£m) NET ASSETS (£m)

Appendix III

Underlying adjustments & net assets

33

Net Assets

At 31 March 2019 134.7

Net profit after tax 14.3

Dividend paid (8.1)

Currency net assets - translation impact (4.6)

Gain on defined benefit scheme 1.9

Shares issued 60.5

Share-based payments (incl tax) 1.8

At 31 March 2020 200.5

FY20 FY19

Exceptional items - 0.2

Acquisition costs (4.0) (1.8)

Amortisation of acquired intangibles (9.0) (5.9)

Legacy pension - IAS19 (0.3) (0.4)

Underlying adjustments (13.3) (7.9)

Tax impact of adjustments 1.4 2.0

After tax adjustments (11.9) (5.9)


Appendix IV

Cash flow & net debt

NET DEBT (£m) CASH FLOW (£m)

34

(1) Non-cash items are depreciation, amortisation and share based payments. Includes £6.6m for IFRS 16 depreciation in FY20.

(2) Operating cash flow as a percentage of underlying operating profit.(3) Free cash as a percentage of underlying profit after tax.

CASH FLOW (%)

FY20 FY19

Underlying profit before tax 32.8 27.2

Finance costs 4.3 3.4

Non cash items(1) 13.5 6.4

Underlying EBITDA 50.6 37.0

Working capital 1.6 (3.2)

Capital expenditure (6.3) (5.2)

IFRS 16 (6.6) -

Operating cash flow 39.3 28.6

Finance costs (3.7) (3.4)

Taxation (6.4) (3.8)

Executive options issuance (0.1) (1.6)

Net exceptional receipt - 1.1

Legacy pension (1.8) (1.7)

Free cash 27.3 19.2

FY20 FY19

Net debt at 1 April (63.3) (52.4)

Free cash 27.3 19.2

Dividends (8.1) (6.7)

Acquisition related cash flow (75.9) (24.2)

Equity issuance 60.5 0.1

Foreign exchange impact (1.8) 0.7

Net debt at 31 March (61 .3 ) (63 .3)

FY20 FY19 Target

Operating cash flow %(2) 106% 93% 85%

Free cash flow %(3) 104% 94% 85%


◼ Similar WC/sales ratio to last year◼ 14.4% of annualised Q4 sales (v 14.3% LY)◼ Reflects increasing proportion of D&M

now 64% of sales, offset by D&M reducing WC/sales ratio.

◼ D&M WC at 17.7% of sales, CS WC at 11.1% of sales).

◼ KPIs improve on last year◼ Debtor days: 52 (FY19: 54)◼ Creditor days: 63 (FY19: 63)◼ Stock turns; 5.2 (FY19: 5.1)

- CS: 10.9, D&M: 3.7

(1) Working capital is defined as net inventory, trade & other receivables and trade & other payables. Unallocated working capital is not represented in this chart.

35

Working capital efficiencies

Appendix V


(1) Nordic rate is a weighted average combination of £/NOK, £/SEK and £/DKK rates based on Group sales in each territory.

Appendix VI

Foreign exchange effects

36

Translation effects

◼ Sterling weakened significantly in FY17 and FY18 but strengthened slightly in FY19 and FY20 (impacting the Group on translation of overseas sales into Sterling in FY20 by c1%)

◼ c.87% of Group revenues are non-UK (mainly €, Nordic and US$).

◼ Translation impact for FY20:◼ Sales £5.0m◼ Underlying operating profit £0.5m

Operational effects

◼ Sterling weakened against US$ in FY17 and again in FY20.

◼ Approximately 90% of UK cost of goods are non-Sterling, so impacts on purchase pricing .

◼ The Group hedges material transactional exposures from point of order through to payment ◼ Protects GM at FX rate at time of order.

£/$

FY20 v FY19 -3%

FY19 v FY18 -1%

FY18 v FY17 1%

FY17 v FY16 -13%

£/€ £/Nordic(1)

FY20 v FY19 1% 4%

FY19 v FY18 0% 4%

FY18 v FY17 -5% -2%

FY17 v FY16 -13% -12%


Appendix VII

IFRS 16

37

Impact on Balance Sheet

◼ On adoption of IFRS 16 the Group recognised liabilities in relation to leases which had previously been classified as operating leases. These liabilities were measured at the PV of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as at 1 April 2019.

◼ The Group has not restated prior year comparators, with right of use assets being set equal to lease liabilities at the date of transition in line with the simplified approach under IFRS 16.

Impact on P/L

Impact on banking covenants

◼ Financial covenants are calculated on a frozen GAAP basis, ie pre IFRS 16.

FY20

Lease expense 6.6

Depreciation (6.6)

Underlying op profit 0.0

Interest (0.6)

Underlying PBT (0.6)

31 Mar 20

Right of use assets 21.1

Lease liabilities (20.0)

Net liability 1.1


Dividend

38

◼ Final dividend not proposed◼ COVID-19, Cash preservation

◼ Intention to resume interim dividend for H1 21 subject to trading conditions

◼ Progressive policy remains◼ To exceed 3.0x cover (underlying)

◼ FY19: 2.8x cover (underlying) and 1.8x cover (reported)

◼ Dividend growth of 7% CAGR up to FY19

Appendix VIII


Essential products into growth markets

Medical

Renewable Energy


◼ Charging◼ Sensing systems◼ Power control◼ Cabin monitoring &

control

◼ Increasing scale of wind turbines

◼ Diversification of solar systems

◼ Wireless telematics◼ Fibre optic connectivity◼ Communication technologies◼ Wireless robotics control◼ Power control

◼ Monitoring & control◼ Automation & robotics◼ Advanced surgery

◼ Electric vehicles◼ Mass transit & route

vehicles◼ Autonomous vehicles◼ High speed railTransportation

discoverIEsolutionsMarket driversMega trends

Decarbonisation & Diversification

Electrification & Autonomous

vehicles

Connectivity, automation &

Industrial Internet of Things

Artificial intelligence, sensing & analytics

◼ Power inductors◼ Turbine blade pitch

control◼ Airflow measurement

◼ Embedded diagnostics◼ Interface device & cabling◼ Power systems

◼ Automation & robotics◼ ‘Smart factories’◼ Artificial intelligence◼ Increasing electronic

content

Technology integration

◼ Decarbonisation◼ ‘Safety-centric’ agenda◼ Mass transit & route

vehicles

◼ Proactive & preventative medicine

◼ Technological & biological fusion

◼ Predictive analytics

◼ Geopolitical consensus◼ Growing public awareness◼ Legislative and regulatory

regimes◼ Cost of energy

◼ Remote monitoring & control

◼ Quality control◼ Precision & automation

39

Appendix IX

strategy delivering further strong growth/media/files/d/discoverie... · 2020-06-24 · discoverie...

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