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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
Test and Measurement
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
Delivering Innovative Solutions For Our Customers
Spectris Capital Markets Day 2017
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 ©
Test and Measurement
13 Spectris plc ©
Driving Value for our Customers
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
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
Field Sales/Internal Sales
Technical/Service Support
R&D/Marketing/Ops
Field Sales/Internal Sales
Technical/Service Support
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 6 – Japan
Customer 7 – China
Customer 8 – US
Customer 9 – Japan
Customer 10 – Germany
20 Spectris plc ©
Driving Value for our Customers
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
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
Spectris Capital Markets Day 2017
Jo Hallas, Business Group Director
Industrial Internet of Things (IIoT) Strategy
17 May 2017
Delivering Innovative Solutions For Our Customers
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
8 Spectris plc ©
Case study: Remote tank monitoring
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