manufacturing’s next chapter · barnes aerospace . diverse and global customer base aligned with...
TRANSCRIPT
Manufacturing’s Next Chapter
September 8, 2017
Safe Harbor Statement
THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS
Forward-looking statements are made based upon management's good faith expectations and beliefs concerning future developments and their potential effect upon the Company
These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements, including the risks and uncertainties set forth under our full disclosure located at the end of this presentation and included in our SEC filings
The Company assumes no obligation to update our forward-looking statements
2
Barnes Group at a Glance
3 1 2016 Revenue. 2 Consecutive years of paying a dividend.
Doing Business in Connecticut 160 Years
4
A LONG HISTORY OF INNOVATION
5
A Remarkable Legacy of Success
Closing Bell – New York Stock Exchange – July 19, 2017 Pictured from left to right: Scott Mayo, Mike Beck, Dawn Edwards, JoAnna Sohovich, Hans-Peter Männer, Thomas Barnes, Dr. Hassell McClellan, Patrick Dempsey, William Morgan, Jim Byrne
(NYSE), Gary Benanav, Mylle Mangum, Elijah Barnes, Chris Stephens, Kristine Murphy
New Vision and Strategy Driving Major Portfolio Transformation
6
1 2010 Sales, Operating Income and Operating Margin are “as reported” in the Company’s 2010 10-K. 2010 Sales Mix re-calculated to reflect three segments – Aerospace, Industrial & Distribution vs. the original two reported segments of Precision Components & Logistics and Manufacturing Services. 2 References to adjusted financial results for 2016 are non-GAAP measures. You will find a reconciliation table on our website as part of our February 17, 2017 press release and in
the Form 8-K submitted to the SEC. This information should be read in conjunction with this reconciliation table.
TSR Performance Since 2010
7
STRATEGY EXECUTION DRIVING REAL VALUE
Focus: Differentiated Technologies / IP
Molding Solutions
Nitrogen Gas Products
Engineered Components
8
Barnes Industrial
Focus: Differentiated Technologies / IP
OEM
MRO
9
Barnes Aerospace
Diverse and Global Customer Base Aligned with Industry Leaders
10
Portfolio Aligned with Macro Trends
11
Our Global Presence
12 1 Percent of 2016 Destination Sales. Company estimates.
Manufacturing’s Next Chapter
Industry 4.0:
Leveraging Virtual/Digital Technology to
Improve Operational Efficiency and
Deliver New Customer Value
“INDUSTRY 4.0” DISRUPTING TRADITIONAL MANUFACTURING; COMPANIES AND LOCAL LEGISLATORS NEED TO ADAPT
- Cybersecurity
- Augmented Reality
- Big Data
- Autonomous Robots
- Additive Manufacturing
- Simulation
- System Integration
- Cloud Computing
- Internet of Things
Source: DFKI
Source: I’scoop.eu
Barnes Group in Connecticut
14
Bristol
Corporate Headquarters
Farmington
Bristol Windsor
Engineered Components Aerospace OEM
East Granby
Aerospace MRO
Making Investments in New Manufacturing Technologies
15
NEW TECHNOLOGIES REQUIRE ENHANCED MANUFACTURING SKILLS; LOCAL HIGH SCHOOLS, TECHNICAL SCHOOLS MUST PROMOTE STEM WITH STUDENTS
Making Investments in Digitalization
DIGITALIZATION REQUIRES LEADING EDGE ENGINEERING AND TECHNICAL SKILLS; LOCAL UNIVERSITIES MUST ALIGN WITH INDUSTRY NEEDS
Deploying Innovative Ways to Attract & Develop the Next Generation of Talent
17
In Connecticut, we cultivate Internships, Co-Ops and
Apprenticeships through linkage with several schools, colleges,
universities and programs
ALL CONSTITUENCIES MUST WORK CLOSELY TOGETHER: LEGISLATORS, BUSINESSES AND LEARNING INSTITUTIONS
18
Initiated Apprenticeship Programs and Outreach
MANUFACTURING DAY 2017 Barnes Group will participate in its 5th
National Manufacturing Day to celebrate our current employees and
promote our apprenticeship programs at several of our U.S. locations.
Supporting Our Communities
Our employees are active in community involvement, and our Foundation supports local
organizations/affiliates in Connecticut!
19
Connecticut Opportunities / Challenges
20
Opportunities
Aerospace - New Programs
Automotive - Transmissions
Innovation - Technology
Connectivity with Local
Schools/Universities
Challenges
Ease of Doing Business
Access to Diverse and
New Skillsets
Cost of Living
160 Year Legacy of Continued Growth and Transformation as Global Provider of Engineered Products and Innovative Solutions
Technological Advancements are Disrupting Traditional Manufacturing Approaches. New and Diverse Workforce Skills are Required to Succeed
Manufacturing Companies Must Actively Engage and Partner with Learning Institutions (high schools, universities and colleges) and Legislators to Stay Relevant and Competitive
Barnes Group in Connecticut Summary
21
Questions?
22
Forward-Looking Statements
This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future operating and financial performance and financial condition, and often contain words such as "anticipate," "believe," "expect," "plan," "estimate," "project," and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. These include, among others: difficulty maintaining relationships with employees, including unionized employees, customers, distributors, suppliers, business partners or governmental entities; failure to successfully negotiate collective bargaining agreements or potential strikes, work stoppages or other similar events; difficulties leveraging market opportunities; changes in market demand for our products and services; rapid technological and market change; the ability to protect intellectual property rights; introduction or development of new products or transfer of work; higher risks in global operations and markets; the impact of intense competition; acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses; uncertainties relating to conditions in financial markets; currency fluctuations and foreign currency exposure; future financial performance of the industries or customers that we serve; our dependence upon revenues and earnings from a small number of significant customers; a major loss of customers; inability to realize expected sales or profits from existing backlog due to a range of factors, including changes in customer sourcing decisions, material changes, production schedules and volumes of specific programs; the impact of government budget and funding decisions; changes in raw material or product prices and availability; integration of acquired businesses; restructuring costs or savings; the continuing impact of prior acquisitions and divestitures; and any other future strategic actions, including acquisitions, divestitures, restructurings, or strategic business realignments, and our ability to achieve the financial and operational targets set in connection with any such actions; the outcome of pending and future legal, governmental, or regulatory proceedings and contingencies and uninsured claims; future repurchases of common stock; future levels of indebtedness; and numerous other matters of a global, regional or national scale, including those of a political, economic, business, competitive, environmental, regulatory and public health nature; and other risks and uncertainties described in documents filed with or furnished to the Securities and Exchange Commission ("SEC") by the Company, including, among others, those in the Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of the Company's filings. The Company assumes no obligation to update its forward-looking statements.