spectris capital markets day 2017

Spectris plc ©

Capital Markets Day

Spectris Capital Markets Day 2017

John O’Higgins, Chief Executive

17 May 2017

Delivering Innovative Solutions For Our Customers

2

Agenda

Spectris plc ©

12.45 Welcome and introduction John O’Higgins, Chief Executive

13.00 Materials Analysis and

Test and Measurement

Eoghan O’Lionaird, Business Group Director

13.30 Millbrook overview Alex Burns, President, Millbrook

14.15 Q&A session

14.45 Tour of Millbrook 3 groups led by Millbrook team:

Alex Burns, President

Andy Nelson, CFO

Martin Hughes, Director, Proving

Ground & Technology Park

16.15 Break

16.30 Industrial Internet of Things strategy Jo Hallas, Business Group Director

17.00 Summary and close John O’Higgins, Chief Executive

17.15 Drinks

18.00 Close

3

Trading Update

Reported sales growth 22%, comprising:

5% contribution from acquisitions

13% benefit from foreign exchange currency movements

Like-for-like (‘LFL’) sales growth of 4%

LFL sales grew 11% in Asia Pacific, 4% in Europe; declined 1% in North America

LFL sales growth across all segments, In-line Instrumentation particularly strong

Setpoint acquisition announced

Project Uplift initiatives progressing well and further restructuring activities underway

Group’s underlying outlook remains unchanged

Spectris plc ©

4

Strategy

Spectris plc ©

Increase

presence in

key strategic

markets

Expand

business

globally

Accelerate

operational

excellence

Deploy

capital for

M&A

Innovative

customer

solutions

5 Spectris plc ©

Customers

What Our Customers Are Telling Us

Strategically positioning Spectris to align with these needs

Capex to opex

Outsourcing

Demographics

Data analytics

Connectivity

Software simulation

6

Strategy Being Delivered

A clear strategy to focus on delivering innovative solutions to our customers

Materials Analysis

Enhancing our leading materials analysis position through merging Malvern/PANalytical


Leveraging our expertise in automotive to provide cross-OpCo solutions to customers

Millbrook

A high-quality testing services business providing a platform for growth

Industrial Internet of Things

Key building blocks in place to offer a differentiated customer proposition

Set to deliver improved growth and margins

Spectris plc ©

7 Spectris plc ©

Strategy – Project Uplift

Project Uplift

Enabling our strategy

Drive efficiency &

effectiveness

Stimulate growth

Reduce complexity

Freeing up resources to deliver higher returns

8 Spectris plc ©

0

20

40

60

80

100

120

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016

Operating Cash Flow (£m) Cash Conversion (rhs) (%)

28.0 33.6

39.0 42.8

46.5 49.5

52.0

0

10

20

30

40

50

60

2010 2011 2012 2013 2014 2015 2016

DPS (p)

Cashflow and Capital Allocation

Strong cashflow and cash conversion

Dividend CAGR over 10%

Capital allocation policy

R&D spend

Growth capex

M&A – bolt-ons and platform

Progressive dividend

Return to shareholders, if in

net cash position

9 Spectris plc ©

Clear and effective strategy being delivered

Well diversified by geography and end markets; leading market positions

Project Uplift freeing up resources to stimulate growth

Strong cashflow and robust balance sheet

M&A to supplement organic growth

Summary

Spectris plc ©

Capital Markets Day



Eoghan O’Lionaird, Business Group Director

Materials Analysis and Test and Measurement

17 May 2017

2 Spectris plc ©

The Need for a More Integrated Solution

Requirement for simpler

products and outputs

Customer focus on core

activities with increasing

willingness to outsource

Increasing testing complexity

and focus on speed to market

De-skilling workforce

Customer demand not currently

adequately met in the

market place

An integrated product and service

company – better positioned to serve its

customers’ needs

Requirement

to move towards

integrated

offering

Solution

Selling

3 Spectris plc ©

Hardware: continued investment in cutting-edge

R&D and selective addition of bolt-on instrument

businesses

Expand and strengthen leading portfolio in selected

niche market segments

Extend geographic reach

Software: engineering software opportunities

increasingly well developed

Includes ‘string of pearls’ and larger acquisition targets

Service: well-defined test services with clear

pathways to further invest

Combining Capabilities Will Change the Customer Proposition

Solution

Selling

4 Spectris plc ©

Materials Analysis Integrating our Customer Offering

Well Positioned for Materials Analysis Solutions

5

Solution

Selling

Malvern and PANalytical have leading

positions with materials R&D customers

Software and service provision emerging,

but developing rapidly

Merged Malvern-PANalytical to take

advantage of these new opportunities

PMS has made significant advances in

cleanroom sterility assurance

Hardware: monitor for contaminants

Software: data analysis and reporting

Service: validation and certification

Spectris plc ©

PMS – Providing Integrated Solutions for Customers

6

Solution

Selling

Measuring service

Process validation

Calibration services

Consulting & training

Good Manufacturing

Practice

Particle and liquid

particle counters

Microbial viable and

molecular

contamination

monitors

Facility monitoring systems and software

PMS/CAS combination leverages the

customer base and product/service

portfolios

CAS provides high quality services with

excellent technical expertise

Strengthens PMS presence in pharma

Good Manufacturing Practice (GMP)

services expertise extended to PMS

customers

More frequent customer interaction

Identify new sales opportunities

Combined hardware/service solutions for

value add to customers

Spectris plc ©

Case Study – Closer Customer Relationship

7

Pharma customer Kedrion

PMS supplied particle counters and facility

monitoring systems to 2 of its 4 sites

With CAS, PMS extended the customer offering:

Advisory services

Sterility assurance for regulatory inspections

CAS GMP services provided to 2 sites

Additional products supplied to all sites

PMS recognised as first choice solutions provider

Increased revenue by 30%

Spectris plc ©

Spectris plc © 8

Drug Discovery

Drug Development

Formulation Release

Testing/QC

Advanced Materials

Pharmaceutical

Structure Assembly

Directed/Self Metrology Enviromental

Regulation

Molecule Drug Manufacturing

Nano-

material Product Manufacturing

Delivering Benefits to Customers Across the Value Chain

25%

47%

2%

5%

21%

21%

11%

6%

33%

13%

16%

R&DPharma & Fine ChemicalsElectronics, Semiconductors, TelecomsMinerals & MiningMetalsOther

9 Spectris plc ©

Malvern-PANalytical – Integrating our Customer Offering

2016 revenue by end market Malvern and PANalytical merged under one

leadership team from Jan 2017

Leading analytical instrumentation businesses;

similar end-market/customer exposure

Materials characterisation their main application

Technologies, methods and know-how highly

complementary

By merging, we deliver more value:

Leverage expertise to develop innovative customer

solutions and deliver value-added services

Grow market share/increase after-market sales

Expect to boost top-line growth and margins

Creates a platform for further acquisitions

PANalytical

Malvern

10 Spectris plc ©

Malvern-PANalytical – Opportunities for Cross-selling

End markets

End-market presence

Malvern

Instruments PANalytical

Metals, minerals & mining Low/medium High

Petro, polymers & specialty

chemicals High High

Pharmaceuticals High Low

Bioscience Growing Low

Food/non-food Medium,

growing Low, growing

R&D and education High High

Oth

er

Environmental Present Present

Batteries Growing Growing

Additive manufacturing Growing -

Semiconductors - Niche

11 Spectris plc ©

Integrating our Customer Offering

Building a Solutions Delivery capability that:

Harnesses existing technology, application

know-how, technical expertise

Leverages key relationships

Identifies logical extensions

Develops unique value-add customer solutions

Already well advanced at PMS with CAS

Positioning Malvern/PANalytical for

developments in the R&D space,

with initial focus on cross-selling

Solution

Selling

Driving Value for our Customers

12 Spectris plc ©


13 Spectris plc ©


More value being encapsulated in software

and services

OEMs progressively outsourcing non-core

testing to service companies

Spectris has market-leading expertise in

durability, NVH, propulsion and safety

Investing in software and services to complement

our instrument/sensor businesses

Established T&M Solutions Team to identify

cross-OpCo opportunities and leverage our expertise

to deliver value to customers

T&M

Solutions

Team

Solution

Selling

14 Spectris plc ©

Strengthening our Value Proposition

Solution

Selling

http://www.ncode.com/en/home/

http://www.reliasoft.com/

Spectris plc © 15

Excitation Test &

Operation Transduction

Data Acquisition

Analysis Correlation &

Validation

Automotive R&D Value Chain

• VTS • HBM

• BKSV

• Omega

• HBM

• BKSV

• Discom

• HBM

• BKSV

• nCode

• Reliasoft

• Discom

• Sound

Answers

• VTS

• Discom

• Millbrook

Computer Aided Engineering

• BKSV

• nCode

• Reliasoft

Delivering Benefits to Customers Across the Value Chain

Millbrook

16 Spectris plc ©

Case study: Automotive Software Simulation

Global automotive OEM customer

Key requirements:

Increase quality and consistency of design analysis

Reduce development time

Deployed Reliasoft plug-in application software

Outcome: analysis time reduced by 20%

Faster preparation

Higher quality and consistency

Closer cooperation between teams

T&M Solutions – Changing the Go-to-market Model

Spectris plc ©

Auto Customers

Field Sales/Internal Sales

Technical/Service Support

R&D/Marketing/Ops



R&D/Marketing/Ops



R&D/Marketing/Ops

17

Spectris T&M Key Account Management

HBM Millbrook BKSV

* Illustrative list

Growth Platform Based on Key Accounts*

North America

Fiat-Chrysler

Ford

General Motors

Caterpillar

John Deere

Europe

JLR

VW Group

Bosch Auto

Daimler

BMW

Valeo

Renault

Continental

Faurecia

Volvo Auto

Peugeot Citroen

Asia

Toyota

Nissan

Honda

Hyundai/Kia

Mazda

Subaru

Suzuki

Nitto Denko

China FAW

BYD

Geely-Volvo

18 Spectris plc ©

Initial Key Account Focus

Initial solutions focus derived from

current customer relationships

Relative strengths across

BKSV-Millbrook-HBM are highly

complementary

Establish and implement a Test

Services Roadmap to combine

service capability, technology and

footprint

19 Spectris plc ©

Current customer relationship

Automotive OEM

by region

Customer relationship

BKSV Millbrook HBM

Customer 1 – Germany

Customer 2 – Italy

Customer 3 – US

Customer 4 – Japan

Customer 5 – UK


Customer 7 – China

Customer 8 – US


Customer 10 – Germany

20 Spectris plc ©


Building a Solutions Delivery capability that:

Harnesses existing technology, application

know-how, technical expertise

Leverages key relationships

Identifies logical extensions

Develops unique value-add customer solutions

Focus on automotive given critical mass,

coverage, relationships

Extend model to other sectors

Becomes engine of R&D and M&A opportunity

prioritisation in Test and Measurement

Solution

Selling

http://www.ncode.com/en/home/

http://www.reliasoft.com/

Millbrook Group Overview .

17 May 2017

Alex Burns, President, Millbrook

High performance engineering

and general management

in

aerospace, motorsport

and automotive

2

History

3

Strategy

Millbrook’s strategy is to:

• Provide independent and

impartial testing services

• Across a defined service

portfolio

And to grow through:

• Solutions strategy with

other Spectris companies

• Key account management

• Capital investment

• Acquisitions

4

Replacing lost GM business

Revenue

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017F

Non GM GM

5

Test Facilities - UK

6

Test Facilities - Finland

7

Markets

Millbrook provides Testing

Services to a defined group

of markets

8

• Emissions regulations

have been driving

development for

many years

• Main thrust has been

on reducing CO2

• Recent focus on

urban air quality has

added a new

challenge

Market drivers – emissions regulation

Passenger car CO2 regulations

9

• CO2 regulations are driving the

development of hybrid and

electric vehicles

• Fiscal incentives, lower vehicle

costs and extended vehicle range

are driving consumer acceptance

• Development of autonomous

vehicles is closely aligned to

development of battery electric

vehicles

Market drivers – hybrid and electric vehicles

BEV and PHEV stock by region 2005-15

BEV and PHEV targets to 2020 based on country commitments

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015

Elec

tric

car

sto

ck

(th

ou

snd

s)

Asia

North America

Europe

0

2

4

6

8

10

12

14

2015 2020

Elec

tric

car

sto

ck t

arge

t (m

illio

ns)

Asia

North America

Europe

Source: IEA Global EV Outlook 2016 10

• Millbrook’s testing services support

product development

• Legislation and competition are driving

increased model count and increased

R&D spend

• The majority of customers expect

outsourcing of testing to increase

Market drivers – R&D spend and outsourcing

Source: Millbrook customer survey November 2016

77%

5% 4%

14%

0

30

60

90

More Less Same No idea

11

Thinking of those companies that require specialised testing, is there likely to be more or less outsourcing?

European OEMs (ex Fiat Chrysler) R&D as % of sales

Source: Company data, Morgan Stanley Research estimates

2019e

7.0%

6.5%

6.0%

5.5%

5.0%

4.0%

4.5%

5.2%

6.4%

2012 2013 2014 2015 2016 2017e 2018e

Market drivers – winter tyre development

Increasing competition

• Aspirant Asian brands challenging established European and American incumbents

• Technology being used to differentiate and justify premium pricing

Tyre labelling

• Regulators introduced UN ECE Reg 117 for tyre labelling

• Consumer awareness of tyre labelling is increasing

Winter certification

• ‘Three peaks’ mark introduced in 2012

• Regulatory standard defines braking on snow

• Discussion about adding braking on ice as an additional requirement

Time to market

• Increased focus on technology drives desire to reduce time to market

The rate of development

of tyres is being driven by

increasing competition

and increasing regulation

Test World is well placed

to benefit from these

drivers, being considered

the premium independent

development location

12

Strategic Progress and Outlook

13

Solutions strategy with Spectris OpCos

Spectris Test and Measurement

contains:

• Measurement hardware

• Software

• Testing services

New T&M Solutions Director will

drive account management, giving

customers access to all Spectris

T&M’s products and services

Providing benefits to customers in:

• Durability

• NVH

• Propulsion

• Safety

14

Durability as a service

Simulate - real world usage, correlated to real world

data, independently

Capture - real world events using instrumented

vehicle data logging

Multiple cycles generate aggregated data

acquisition

Analysis - data to produce running schedule

Control - run schedule using trained drivers,

following specific driving instructions

Monitor - inspect and report issues back to

customer

Providing customers with a total package of representative, accelerated whole usage of a vehicle

New market entrants do not have the internal resource or brand heritage to support a programme

15

Powertrain

16

Powertrain

Customers

• Automotive manufacturers

• Bus manufacturers

• Bus operators

• Engine manufacturers

• Oil majors

• Fuel and oil additive manufacturers

Investment completed

• 4 additional engine test cells

• Upgrades to existing engine test cells

• 4WD climatic emissions chassis dynamometer

• Real driving emissions routes and equipment

Future investment

• Powertrain rigs suited to hybrid system development

17

Due to the strength of

the market drivers,

powertrain has been

the main area of focus

for Millbrook.

Investment has added

capabilities in line with

customers’ evolving

requirements.

Case study – Premium Vehicle Manufacturer

Good customer

service has been key

to developing the

relationship with a

premium vehicle

manufacturer

Increasing trust has

led to new business in

different service areas

2014

• Track testing

2017 • Track testing

• Engine testing

• Winter events

• Crash testing

• Powertrain testing

• Hybrid system testing

18

Safety

19

Safety

Customers

• Automotive vehicle manufacturers

• Aerospace equipment manufacturers

• Specialist vehicle equipment manufacturers

Evolving service scope

• ServoSled upgrade, creating a facility for automotive work

• Roll-over capability

• Small offset collisions

• Latest specification crash test dummies

• Autonomous vehicle test environment

Current investment

• Connected vehicle test environment

Demand for safety testing is

driven by:

• Evolving legislation and certification requirements

• Increasing range of automotive models

• Increased complexity of light weight chassis

Investment has been made

to keep up-to-date with

evolving customer

requirements

Connected and

autonomous vehicle

development requires

assurance of safety

20

Vehicle development

21

Vehicle development

Customers

• Automotive vehicle manufacturers

• Motorcycle manufacturers

• Bus, truck and off-highway vehicle

manufacturers

• UK Ministry of Defence

• Defence vehicle manufacturers

Growth strategy

• Increase customer base

• Assist customers with test cycle

development

• Investment in rare test assets,

e.g. large climatic chamber

• ADAS* test capability

Demand for vehicle testing is

driven by:

• Emissions and air quality

regulations, especially for

public transport

• Increasing number of vehicles

in development

• Increasing consumer

expectations of reliability and

refinement

• Quieter powertrains leading to

NVH issues

• Advanced driver assistance

systems

• Connected and autonomous

vehicles

22 * Advanced Driver Assistance Systems

Tyre development

23

Tyre development

Customers

• Tyre manufacturers

• Vehicle manufacturers

• Tyre testing

• Vehicle testing

Growth strategy

• Expand capacity of outdoor tracks

• Develop winter testing for vehicle

manufacturers

• Sell temperate testing at Millbrook

to tyre manufacturers

• Develop wet grip facility at

Millbrook

• Attract customers as long-term

tenants, e.g. Hankook

Market drivers:

• Increasing Asian competition

• Tyre labelling informs consumers:

differentiation by performance as well

as brand

• Cost reduction

• Time to market reduction

Test World has a strong market position:

• Leadership in winter tyre testing

services

• Prime mover advantage in indoor

winter testing

• Depth of technical expertise

• Stable operational management

• Platform for organic growth

24

• Future capital

investment builds on

areas of strength

• Further broadens

the testing services

offered

• Increases capacity

• Driven by customer

demand

Additional capacity • High power engine test cell

• 4WD emissions chassis dynamometer

• Extended indoor winter test facilities

Service enhancements • Crash test dummies and drives

• Additional test tracks with focus on

ADAS and CAV*

New services • Full powertrain rig

• Battery and hybrid vehicle test facilities

• Electric machine test facility

• Wet grip facility

Next phase of growth

Powertrain SafetyVehicle TyreOther

25

* Connected and Automated Vehicle

2017 capex

Future opportunities

Millbrook: a platform for

growth via potential

acquisitions that deliver

geographic diversification,

complementary services or

additional capacity.

Ideal targets:

• Provide testing services to

customers in research and

development

• Capital asset-intensive

• In Europe, North America or

the UK

Geographic diversification

• Offer existing Testing Services

in existing markets in new

geographic areas

Complementary services

• Expand the current portfolio of

Testing Services, offering new

services to existing customers

Additional capacity

• Increase capacity offered to existing

customers, in areas where capacity is

in high demand, such as engine testing

26

Summary

• Millbrook is a high-quality, independent,

testing services provider with a clear focus

on customer service

• Key account management and capital

investment to expand the testing capability

and services offered are driving growth

• First steps towards Spectris T&M solutions

strategy

• Spectris ownership has been welcomed

by customers, employees and leadership

27

Thank You

Spectris plc ©

Capital Markets Day


Jo Hallas, Business Group Director

Industrial Internet of Things (IIoT) Strategy

17 May 2017


2 Spectris plc ©

Introduction

IIoT market is evolving and has significant growth potential

Spectris is in a differentiated position with the building blocks in place – sensors,

connectivity and analytics/software

Many examples of IIoT solutions currently delivered by Spectris

Activity is underway to further build out customer proposition

Be the partner of choice for customers in select industrial niches

for their IIoT/digital solutions

How IIoT Can Benefit our Customers

3

Customer

requirements

are changing

Demographics

Outsourcing

Capex to opex

Falling sensor

and device costs

Improved power

efficiencies

Rise of cloud

solutions

Increasing

wireless

coverage

Prevalence of

mobile devices

Increased level

of connectivity

‘Big data’ and

analytics

capabilities

Greater software

simulation

Process and asset

monitoring to:

Increase

productivity

Improve reliability

Enhance safety

Predict outcomes

Optimise

performance

Increase value for

customers

The

economics of

the solution

are improving

New

capabilities to

gain insight

are emerging

Together

leading to

increased

value

Spectris plc ©

Creating a Differentiated Growth Proposition

4

Diversified

Industrials

Network

Equipment

Vendors

Telcos

Domain-

Focused

Industrials

Wide dispersion

High complexity

applications

Deep analytics

Long sales

cycles

Large, higher

risk projects

High volume

products

Focus on the

core, easy-to-

access markets

and channels

Partnering

along value

chain

Service and

application

focus

Big bets on

building content

offering

Strength

across

horizontal

layers

Specific

applications

delivered with

expertise

Full stack

solutions

possible

Focus on large-scale,

global opportunities Opportunities for segment

leadership and value creation

Start-ups

Niche

applications

delivered with

expertise

Lack of

resources and

scalability

Customer

credibility

challenges

Generic

Platform

Providers

Service and

application

focus

Big bets on

building content

offering

Spectris plc ©

Spectris plc ©

Be the partner of choice for customers in select industrial niches

for their IIoT/digital solutions

Further enhance sensor portfolio: IIoT-ready and inter-operable

IIoT Strategy

Application expertise

Analytics / software

Connectivity

Sensors

Establish full service asset monitoring and

optimisation capability in select industrial

niches

Extend our leadership position in connectivity for industrial markets

5

Spectris plc ©

Sensors are becoming more sophisticated/‘smart’ Smaller, embedded, wireless, self-powered

Local processing, analytics and control

Sensors key to ensuring safety, quality and efficiency

Provides better optimisation across a group of

connected sensors

Monitoring high-value assets during storage & transport

Data centre monitoring

Sensors - Smart Sensor Portfolio

6

What is it

Why it’s

important

Our

activities

Customer

applications

Continued excellence in core sensing technologies

Drive smart sensor excellence pan-Group

(Omega, Red Lion and HBM)

Apply smart capabilities to sensor portfolio as required

Spectris plc ©

Range of connectivity options available: Ethernet, cellular M2M,

Bluetooth, LPWAN*

A large and growing market

Industrial settings require secure, reliable connectivity

Remote water asset monitoring for efficiency/regulatory compliance

Monitoring food waste to energy equipment

Connectivity - Industrial Connectivity Leadership

7

What is it

Why it’s

important

Our activities

Customer

applications

Red Lion a leader in industrial Ethernet/cellular M2M connectivity

Partnered with market-leading cloud platform providers

Bundled offering with cellular carriers

* LPWAN - Low-Power Wide-Area Network

Spectris plc ©

Real-time plant analysis and data visualisation

Data from multiple sites/sources in a single view

Advanced trending and analysis

Increases customers’ understanding of data

Empowers timely decision making

Optimise manufacturing processes

Improved data analysis at copper mine

US mill streamlined papermaking process

Analytics/Software - Strength in Data Analytics

9

What is it

Why it’s

important

Our activities

Customer

applications

Acquired Capstone Technology (dataPARC) in 2016

Joint solutions development with other OpCos

New development to lay the ground for combining asset and process information

10 Spectris plc ©

US-based customer Catalyst Paper

Key requirements:

Combine data from multiple databases

Single dashboard

Easy tools to correlate and filter data

More intuitive tools for analysis

Deployed dataPARC’s PARCview tool

Outcome: streamlined papermaking process

Reduced coating cost by 17%

Case study: Enhanced Decision Support for Paper Mill

11 Spectris plc ©

Design & development (assets) Operation (plant/fleet)

Design optimisation

Understand

operational usage

Safety design

Vibration

System performance

KPI monitoring

Operational usage

monitoring

Maintenance optimisation

Forecasting

‘What-if’ scenarios for

operation & maintenance

Design optimisation

Life cycle cost analysis

Forecasting

Safety design

Risk analysis

Maintenance strategy

planning

Component performance

Existing capabilities

Diagnostics

Prognostics

Monitoring

Future capabilities

Analytics/Software – Prognostic Capabilities

Spectris plc ©

Provision of insight as a service - asset/process monitoring

and optimisation

‘Business as a Service’ (BaaS)

Economies of scale in providing insight to customers

Leverages domain/application know-how

Capex to opex switch leads to recurring revenue stream

Wind turbine monitoring to optimise uptime and maintenance

Mine monitoring to optimise performance in the safe zone

Application Expertise Enables ‘Business as a Service’

12

What is it

Why it’s

important

Our

activities

Customer

applications

Several well-established BaaS offers in niche domains and applications

Proof of concept work underway to extend to full-service asset monitoring

and optimisation in certain domains

Extend into other domains where Spectris has depth

Solution

Selling

13

Examples of current Business-as-a-Service Solutions

Environmental Monitoring Systems

Airports: noise monitoring for compliance reporting,

complaint handling and predictive modelling

Urban: noise, vibration, dust, air quality compliance

300 major airports and 100 urban installations

Highly capable underlying IIoT platform

Micro-seismic monitoring

Micro-seismic monitoring, analysis and interpretation

services incl. visualisation of induced seismicity

Mining, oil & gas (fracking), geotechnics

200 O&G producers

Safety and performance optimisation in mines

Wind Turbines Monitoring

Condition monitoring of drive-train via vibration

analysis and diagnostics

Monitor >9,000 turbines globally

Enables faults to be addressed up-tower at 1/10th

cost down-tower

Optimises maintenance costs, yield and asset life

Vehicle Fleet Monitoring

Ongoing pilot programme for 2,000 vehicles

Maintenance and equipment readiness reporting

Combines usage severity and impact on key systems

with maintenance costs

Predict remaining useful life & optimise service intervals

Process 1.4 billion data values daily

Spectris plc ©

14

Application: Wind Turbine Monitoring and Optimisation

Monitoring vibrations of drive-train components – indicates

95% of drive-train failure modes

Reliasoft’s software adds performance predictability:

Understand what the asset does; where, when and how it does it

Predict deterioration, reliability and performance

Assets ‘learn’ from each other to indicate potential problems and

create actionable information

Potential for multiple additional capabilities to provide full

service wind farm optimisation

Condition monitoring services

Yield optimisation

Spectris plc ©

15 Spectris plc ©

Summary

IIoT market is evolving and has significant growth potential

Significant expansion in IIoT-related capabilities/services including asset monitoring & optimisation

Spectris is in a differentiated position with the building blocks in place

Sensors + Connectivity + Applications/Analytics

Deep domain expertise in key niche industrial markets

Proven business as a service offerings with potential to expand offering

Activity is underway to further build out customer proposition

Coordinating the building blocks we have into a cohesive offer

Continue to develop technology capabilities and evaluate partnership opportunities

Vision:

To be the partner of choice for customers in select industrial niches for their IIoT/digital solutions

spectris capital markets day 2017

Documents