This action might not be possible to undo. Are you sure you want to continue?
Presentation to Investors
Dr John Ferrie
Group Managing Director Cheltenham – Thursday 26th May 2005
US defence spending flattening The civil aerospace industry is recovering Airline customers are still making huge losses So why is Aerospace attractive?
Underlying demand for air transport as strong as ever
Defence remains high priority
Leadership positions still rewarding
05/05 JF Investors Briefing
B767 Tanker…) Cargo Door Drive/Actuator Flight Control Actuators Primary flight controls Engine Components (Tailpipe/Shrouds) Aerial Refuelling Pods Aerial Refuelling System and Components Engine Components Primary Flight Controls Gust lock Primary flight controls APU door door/slides actuators Fuel and hydraulic tubes/hoses High lift actuation system Wing structures Remote input/output Nacelles fairings Propellers Integrated Landing Gear Actuation and Control System Hydraulic Control Valves Hydraulic Fuses Airdrop System Components Auxiliary Power Engine Instrument Displays Integrated Avionics Panels and Light Control Data Management Self-contained Navigation System Landing Gear Actuation and Control Nose Wheel Steering System Hydraulic Control Valves Cable Harnesses and Connectors Environmental Control Power Distribution and Control Generators/Power Conversion 05/05 JF Investors Briefing 3 Smiths Aerospace . C-17. P-8A MMA. C-27. C-130J.Capabilities on military transports (Applications: C-130AMP.
Capabilities on fighters (Applications: JSF. F-16…) Battery Charging System Power Supplies Prognostics and Health Monitoring System Fuel Dump Airbrake Actuator Remote Input/Output Secondary Flight Control Fin Control Actuator Auto Target Recognition Gun Pod Cable Harnesses and Connecters Canopy/Windscreen System/Canopy Actuators Refueling Probe Mission Planning And Debrief Systems (Ground Based) Variable Speed Constant Frequency Power Generation Regulated/Transformer Rectifier Unit Primary Flight Control Actuators Empennage Components Variable Exit Nozzle/Thrust Vectoring Actuation System Engine Distress And Monitoring System Tailcone Primary Flight Control Actuators Stores/Weapon Deployment Actuation System Wing Structures Landing Gear Actuation and Uplock Mechanism Nose Wheel Steering Hydraulic Valves Holdback Bar Fuel and Hydraulic Tubes/Hoses Integrated Cockpit Suite Data Recording/Displays Pitch Feel Seat Actuator Doors Air Intake Control Hydraulic Fuses Reservoir Valves Accumulator Engine Components Pylons Pylon Interface Unit Missile Lock Landing Gear Actuation Door Lock Fuel Tank Active Fuel Probes Integrated Modular Avionics Mission Computer Utilities Computer Stores Management Systems Interface Blanker Unit Supplementary Power and Cooling System Environmental Control System 05/05 JF Investors Briefing Smiths Aerospace 4 . Eurofighter. Hawk. F-18. F-22.
Capabilities on UAVs (Applications: X-47. X-45…) Variable Speed Constant Frequency Generator Power Distribution System Regulated/Transformer Rectifier Unit Fuel and Hydraulic Tubes/Hoses Cable Harnesses And Connectors Composite Structures Utilities Computer Remote Input/Output Flight Control Actuation System Active Fuel Probes Utility/Accessory Actuators Engine Components Engine Distress and Monitoring System Landing Gear Control Landing Gear Chemical and Biological Detection Stores Management System Weapon Door Control Data Recording Mission Computer Vehicle Management System Prognostics And Health Monitoring Supplementary Power and Cooling System Environmental Control System Battery Charging System Remote Interface Unit Refueling Probe Smiths Aerospace 05/05 JF Investors Briefing 5 .
B787…) Fuel Systems High-lift Systems Fuel and Hydraulic Tubes/Hoses Airframe Components Primary Flight Control Actuators Remote Input/Output Primary Flight Control Actuators Power Generation Cable Harnesses and Connecters Doors and Door Actuators Integrated Avionics Flight Management Data Management Displays Landing Gear Actuation and Control Structures Power Distribution Doors and Door Actuators Utilities Management Wing Structures Landing Gear Actuation And Control Thrust Reverser and Cowl Opening Actuation System Engine Components Engine Actuation Flying Control Surfaces Primary Flight Control Actuators Wing Structures Fuel Systems Power Generation Environmental Control Smiths Aerospace 05/05 JF Investors Briefing 6 . A330/340. A320.Capabilities on large commercial aircraft (Applications: B737. B777.
Boeing 787 Dreamliner Major Systems won by Smiths Common Core High Lift Landing Gear Programme Status Firm Orders = 64 Options = 24 Entry into Service = 2008 Trend to systems integration. but each customer is different Smiths Aerospace 05/05 JF Investors Briefing 7 .
Airbus A380 Major Systems won by Smiths High Lift Landing Gear Smiths Aerospace Firm Orders = 139 Options = 70 Entry into Service = 2006 05/05 JF Investors Briefing 8 Programme Status .
What are we? Aerospace Systems Delivering Integrated Solutions Engine Components Growth fueled by Competitiveness Northrop Grumman selects Smiths for J-UCAS Landing Gear System 8th February 2005 Smiths expands Aircraft Engine Facility in China 1st November 2004 Smiths Aerospace 05/05 JF Investors Briefing 9 .
Smiths Aerospace Business Dimensions Electronic systems Mechanical systems Engine components FY04 Sales: £1.006m Military / Civil split ~ 60% / 40% Sales Split R&D/Sales Company Funded (expense to profit) Recent Additions 8% 12% DGT acquired for £57m in mid ’04 Integrated Aerospace acquired for £57m at end ‘05 Customer Funded (largely govt / military) Smiths Aerospace 05/05 JF Investors Briefing 10 .
Where are we? Electronic Systems Mechanical Systems Customer Services Engine Components RoW China Poland Australia Singapore Total employees: circa 11.000 Smiths Aerospace 05/05 JF Investors Briefing 11 .
engine components JSF: $3b avionics. hydraulics. utilities. utilities. engine components Smiths Aerospace 05/05 JF Investors Briefing 12 . engine components Eurofighter: $600m avionics. hydraulics. landing gear and high lift actuation systems. engine components F-18 E/F: $650m weapons systems.Smiths Aerospace on Major Platforms Typical programme revenues Boeing 787: $2. wing components Airbus 320: $650m avionics. engine components Boeing 777: $800m electrical power. utilities. hydraulics. utilities. hydraulics. hydraulics. actuators.6b common core system. high lift actuation. flight recorder Airbus A380: $1b landing gear extension & retraction system.
Competitors Electronic Systems Honeywell Rockwell Collins Hamilton Sundstrand Goodrich Thales Moog Cobham Goodrich Parker Liebherr Mechanical Systems Engine Components Barnes Group Primes in-house capabilities GKN Carlton Magellan Doncasters Firth Rixson Smiths Aerospace Customer Services Third Party Repair Centres Operators in-house capabilities 05/05 JF Investors Briefing 13 .
Aeroengine Component supplier Civil GE/CFM Pratt & Whitney Rolls Royce/Eurojet Military Engine side wall Fabricated Mixers Machined Shafts Machined Combustors Flash Welded Rings Smiths Aerospace 05/05 JF Investors Briefing 14 .
Business Dimensions .Aftermarket Service Based Performance Based Total Integrated Support 2005 Sales Aftermarket Original Equipment PBL / Logistics Support Usage based Rate per hour Cost Based Fixed Price Cost driven Reactive Smiths Aerospace Time & Material 05/05 JF Investors Briefing 15 .
F-35 JSF.How are we performing? Smiths Aerospace performance in H1 2005 £m Sales Operating Profit Margin US 101 Aerospace H1 2005 514 39 8% at constant currency +17% +24% Contribution to Smiths Group operating profit Eurofighter Boeing 787 Delivered first system for Airbus A380. C-130 AMP Development work on Boeing 787 Dreamliner on schedule Selected for complete landing gear on X-47B Teamed with Lockheed on US 101 Presidential helo fleet Capacity in China doubled by 2006 Engine component plant in Poland being expanded 05/05 JF Investors Briefing 16 Smiths Aerospace .
excluding acquisitions at constant currency) Smiths Aerospace 05/05 JF Investors Briefing 17 .Smiths Aerospace: Sales Trends Civil OE Military OE Aftermarket (expected) 2005 2005 sales Commercial OE 2004 Military OE Aftermarket 2003 10% 20% 10% 10% (underlying growth.
The Future: Our view of the Global Military market 30 25 Aircraft Production Value $bn Actuals Forecast 20 15 10 5 0 2006 2007 2004 2005 2008 2009 2010 2001 2002 2003 Military Helicopters Other Fixed-Wing Light Fighter/Attack/Trainer Heavy Fighter Smiths increasing market share while market flattens Smiths Aerospace 05/05 JF Investors Briefing 18 2011 2012 .
The Future: Our view of the Global civil market 100 Actuals Forecast Aircraft Production Value $bn 80 60 40 20 2006 2007 2004 2005 2008 2009 2010 2001 Civil Helicopters 2002 Exec/Utility Turboprops 2003 Business Jets Regional Transports Commercial Jets Smiths increasing market share Opportunities in later years for new narrow bodies Smiths Aerospace 05/05 JF Investors Briefing 19 2011 2012 0 .
Growing as anticipated US defence spending flattening The civil aerospace industry is recovering Airline customers are still making huge losses So why is Smiths so confident? We have strong platform positions – gaining market share Supported by increased R&D Engine Components business delivering planned growth Sustained drive on all aspects of cost Smiths Aerospace 05/05 JF Investors Briefing 20 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.