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Comments
Represents 15 times FY2012 OPBIT
2.
Establishes long-term funding solution (10+ years) Any future funding requirement intended to be met by trust fund Value creation to be passed back to shareholders Immediately following completion of disposal Clear strategy Opportunity for strong value creation through growth in software and equipment and business development
3.
4.
Successful execution of Invensys Rail strategy in past five years has created significant value
64% order book in new markets
Completion expected in second quarter of calendar year 2013 Westinghouse Scheme transferring to Siemens
39m deficit on 155m of liabilities at 30 September 2012
Comment
Including trust, fully funded on a technical provisions basis (headroom estimated at 100m) High likelihood of being self-sufficient as gilt yields return to normal levels Reduces remaining pension risk and adds to cover by circa 100m
List of further mitigation opportunities to be considered, including: Enhanced transfer value Early retirement Trust arrangement and release process agreed by Trustee
Buyout capability maintained Agreements will be submitted to UK Pensions Regulator for approval
Any funding deficit (after 400m contribution) will use Trust to contribute up to 20m per annum starting in 2018 Reverse payments made if scheme is in surplus (120%), which could return money to Company
Invensys believes that these actions establish long-term funding solution and Reservoir Trust provides buffer
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Invensys 28 November 2012
bn
Normal range
Disposal of Invensys Rail provides opportunity to simplify Group structure and reduce costs Reduce both Group centre and divisional overheads Annual cost savings at around 25m from April 2014 One-off cash costs expected to be 30m predominantly in FY2014 Expect ongoing restructuring will no longer be an exceptional charge
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Retained Group
Invensys Operations Management A leading provider of industrial software Top 3 global installed base of DCS and worlds leading safety system Niche manufacturer of equipment used in industrial applications Invensys Controls Leading manufacturer of appliance controls Major supplier of monitoring and controls in commercial refrigeration Climate controls for residential/small commercial buildings, optimising energy efficiency
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Invensys 28 November 2012
Retained Group benefits from facing higher growth energy and emerging markets
FY2012 revenues by end-market FY2012 revenues by geography
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Investment priorities
291 492
(14%)
16% 28%
Single
41% of Retained Group revenues from higher margin, higher growth areas
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Invensys 28 November 2012
Software
231
16%
13%
Mid 20s
6% (4%) 1% 14%
Systems
765
High single
Appliance
291
(14%)
16%
Single
Streamlined portfolio has fastest growth in highest margin businesses Organic growth will be coupled with M&A to drive EBIT growth
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Invensys 28 November 2012
Equipment - industrial
Systems Appliance
15
16
Timetable
Class 1 circular and Notice of General Meeting posted to shareholders General Meeting held to approve disposal of Invensys Rail Invensys Capital Markets Day on Retained Group Expected date of completion of disposal of Invensys Rail
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Slide 18
Invensys and the Invensys logo are trade marks of Invensys plc
Aspen Technologies
Mar YE (m) Revenue % growth EBIT % growth % margin FV/Revenue FV/EBIT 11A 144 (15) 12A 173 20.3% 10 nm nm 13E 209 21.1% 37 nm 17.5% 7.1x nm 14E 255 21.6% 71 nm 27.7% 5.8x nm
Manhattan Associates
Mar YE (m) Revenue % growth EBIT % growth % margin FV/Revenue FV/EBIT 11A 189 29 12A 211 11.5% 42 45.3% 20.0% 13E 237 12.5% 56 33.3% 23.7% 2.9x 12.4x 14E 260 9.5% 63 12.4% 24.3% 2.7x 11.0x
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