ANNUAL REPORT
2023
Mining technology for a sustainable future.
Our purpose
We are here to enable the sustainable and efficient delivery of the natural resources essential to create a better future for the world.
2023 Highlights
Orders1
£2,585m
0%2
Revenue1
£2,636m
+9%2
Adjusted profit before tax1, 3
£411m
+18%
Statutory profit after tax
£229m
+7%
Total incident rate1,4
0.42
0.41 in 2022
Revenues from new solutions1,5
£154m
+48%
Employee net promoter score (eNPS)1,6
48
In the top 25% within manufacturing7, 51 in H2 2022
Greenhouse gas emissions1,8
142,213tonnes CO2e
23% reduction in scope 1&2 emissions since 2019
- Continuing operations.
- 2022 restated at 2023 average exchange rates.
- Profit figures before adjusting items (note 2 of the Group Financial Statements).
- Total incident rate is an industry standard indicator that measures lost time and medical treatment injuries per 200,000 hours worked.
- Defined as revenue from new products introduced in the last three years.
- eNPS (employee net promoter score) is an index used to measure employee satisfaction levels.
- Based on Peakon's Manufacturing sector benchmarks.
- Market based greenhouse gas emissions. For definition, see page 57.
Strategic Report | Governance |
Contents
Strategic Report
Contents | 1 |
Introducing Weir | 2 |
Chair's statement | 8 |
Case study - Mining technology for a sustainable future | 10 |
Chief Executive Officer's strategic review | 11 |
Case study - One team, delivering innovative mining solutions | 15 |
Our markets | 16 |
Our strategic framework | 18 |
Strategic progress | 20 |
Business model | 22 |
Case study - Working together with our customers | 25 |
Stakeholder engagement | 26 |
Case study - Accelerating the path to sustainable mining | 29 |
Technology for sustainable mining | 30 |
Key Performance Indicators | 32 |
Operating review: Minerals Division | 34 |
Operating review: ESCO Division | 36 |
Financial review | 38 |
Sustainability introduction | 42 |
Sustainability review | 46 |
TCFD | 50 |
GHG emissions | 56 |
Sustainability and non-financial reporting | 58 |
Risk management | 60 |
Viability statement | 70 |
Corporate Governance
Introduction from the Chair | 71 |
Governance at a glance | 72 |
Board of Directors | 73 |
Group Executive | 77 |
Our governance framework | 78 |
Board activities 2023 | 79 |
Principal decisions made by the Board | 80 |
Our culture and approach to employee engagement | 81 |
Shareholder and investor engagement | 84 |
Wider stakeholder engagement by the Board | 85 |
Division of responsibilities | 87 |
Composition, succession and effectiveness | 89 |
Internal control and risk management | 90 |
Nomination Committee report | 91 |
Audit Committee report | 98 |
Directors' remuneration report | 109 |
Directors' report | 133 |
Statement of Directors' responsibilities | 137 |
Financial Statements
Independent Auditors' Report to the Members of The Weir Group PLC | 138 |
Consolidated Income Statement | 144 |
Consolidated Statement of Comprehensive Income | 145 |
Consolidated Balance Sheet | 146 |
Consolidated Cash Flow Statement | 147 |
Consolidated Statement of Changes in Equity | 148 |
Notes to the Group Financial Statements | 150 |
Company Balance Sheet | 209 |
Company Statement of Changes in Equity | 210 |
Notes to the Company Financial Statements | 211 |
Additional Information
Subsidiary undertakings | 224 |
Shareholder information | 231 |
Glossary | 234 |
Financial Statements | Additional Information |
Helping our customers deliver the metals and minerals essential
for a sustainable future.
Find out more on page 10
One team, delivering innovative mining technology solutions.
Find out more on page 15
Helping miners move less rock, use less energy, use water wisely and create less waste.
Find out more on page 25
Accelerating the path to smart, efficient and sustainable mining.
Find out more on page 29
Visit global.weir to find
out more about our purpose, our people and the work we're doing to create a more sustainable future.
Cautionary statement
This Annual Report contains forward-looking statements with respect to the financial condition, operations and performance of the Group. These statements reflect knowledge and information available at the date of preparation of this Annual Report. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The Company undertakes no obligation to update these forward-looking statements and nothing in this Annual Report should be construed as a profit forecast.
The Weir Group PLC Annual Report and Financial Statements 2023
1
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
Our planet's future depends on the transition to renewable energy, and that transition can only happen with the metals and minerals our mining customers deliver.
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
continued
Every mine is different.
Delivering innovative mining technology solutions demands a combination of deep customer insight, world class engineering and materials science, enabled by intelligent automation.
Mining technology for a sustainable future.
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
continued
No one serves more mines than Weir.
ExtractionComminution
Boosted by Synertrex® and Motion Metrics™ digital solutions
our brand | our brand | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESCO® | ENDURON® | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Weir Group PLC Annual Report and Financial Statements 2023
4
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
continued
Working in close partnership with our customers, we help them to move less rock, use less energy, use water wisely and create less waste - accelerating the path to smart, efficient and sustainable mining.
Mill Circuit | Tailings |
Boosted by Synertrex® and Motion Metrics™ digital solutions
our brands | our brand | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARMAN® CAVEX® | GEHO® | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LINATEX® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Weir Group PLC Annual Report and Financial Statements 2023
5
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
continued
Investment case:
Weir is a focused mining technology leader with a compelling value creation opportunity
Over the last few years, we have completed our portfolio transformation to become a focused mining technology leader and sold our businesses in other verticals.
We are strongly positioned for long-term sustainable growth
- Mining is expected to offer high growth potential over the decades ahead driven by demand for metals, such as copper, nickel and lithium, that will enable the global transition to net zero.
- Our 'razor/razor blade' business model is highly resilient as around 80% of our revenues come from supplying aftermarket (AM) equipment. This is driven by the tonnes of ore our customers process and is largely inelastic to mining capital expenditure and commodity price cycles.
- Supported by our special culture of customer intimacy and entrepreneurial mindset, we will continue to expand our addressable market over time through organic growth initiatives that will accelerate as the mining industry embraces new technologies.
Find out more
Our markets | See page 16 |
Business model | See page 22 |
Our culture | See page 47 |
With unique capabilities and high barriers to entry
- We use our world class engineering, innovation and manufacturing capability to solve our customers' most difficult challenges.
-
We are deeply embedded within our customers' operations and supply chains, with both 'boots on the ground' relationships and strategic
global collaborations.
- We have a large captive installed base of trusted mission-critical equipment, underpinned by our intellectual property, leading brands, customer intimacy and vertically integrated regional operating platform. We retain over 90% of the AM opportunity from our installed base.
Find out more
Our technology | See page 30 |
Our commitments are simple and clear
Growth | Margins | Returns | Resilience | Sustainability | ||||
Outgrowing | Expanding | Converting earnings | Providing resilience | Delivering for people | ||||
our markets | our margins | into cash and returns | and predictability | and planet | ||||
Mid to high single digit | 20% operating profit | 90-100% free operating | >7% Minerals AM revenue | Accelerate sustainable | ||||
% organic revenue growth | margin in 2026 | cash conversion; focus on | CAGR since 2011 | mining; deliver | ||||
through the cycle | growing ROCE | sustainable Weir | ||||||
Prioritising Total Shareholder Returns
The Weir Group PLC Annual Report and Financial Statements 2023
6
Strategic Report | Governance | Financial Statements | Additional Information |
Introducing Weir
continued
Serving customers from pit to plant through two Divisions
Minerals Division
Engineering, manufacturing and servicing of processing technology used in abrasive high wear applications in mining and infrastructure markets around the world.
ESCO Division
Ground engaging tools (GET), attachments, AI and machine vision technologies that optimise productivity for customers in global mining and infrastructure markets.
Divisional revenue | Divisional revenue |
£1,937m
Divisional adjusted operating profit1
£376m
% Divisional revenue from aftermarket
72%
£699m
Divisional adjusted operating profit1
£122m
% Divisional revenue from aftermarket
92%
Find out more | Find out more | |||
Operating review: Minerals Division | See pages 34-35 | Operating review: ESCO Division | See pages 36-37 | |
Focused on | Highly resilient | Biased towards future- | |||||||||||
attractive markets | through the cycle | facing commodities | |||||||||||
73% | 27 | 77% | 23 | 49% | 11 | 24 | |||||||
10 | |||||||||||||
of revenues | of revenues | of revenues from | 3 | ||||||||||
from mining | from recurring | copper, iron ore, | 6 | 12 | |||||||||
applications | 73 | aftermarket | 77 | gold and battery | 8 | 10 | |||||||
8 | 8 | ||||||||||||
metals | |||||||||||||
Mining applications | Aftermarket (AM) | Copper | Oil sands | ||||||||||
Infrastructure & other | Original Equipment (OE) | Gold | Coal | ||||||||||
Iron ore | Nickel, lithium, cobalt | ||||||||||||
Industrial | Other minerals | ||||||||||||
Infrastructure | Other | ||||||||||||
Global presence, close to our customers
We have c.12,000 colleagues in over 50 countries around the world.
31% | North America | |
of sales | 3,291 colleagues | |
22% | South America | |
of sales | 2,604 colleagues |
12% | Middle East & Africa |
of sales | 1,420 colleagues |
Europe 6%
1,637 colleagues of sales
Asia Pacific | 13% | |
1,859 colleagues | of sales | |
Australasia | 16% | |
1,252 colleagues | of sales |
1. Profit figures before adjusting items (note 2 of the Group Financial Statements).
The Weir Group PLC Annual Report and Financial Statements 2023
7
Strategic Report | Governance |
Chair's statement
- compelling opportunity to create value for all of our stakeholders.
- We have a great team, committed to our common purpose to enable the sustainable and efficient delivery of the natural resources essential to create a better future for the world."
Barbara Jeremiah
Chair
Financial Statements | Additional Information |
Dear shareholder,
I am pleased to report on a year where Weir has made significant strategic progress, executed strongly, and delivered on - and strengthened - our commitments to stakeholders. These achievements are testament to the dedication of all our colleagues around the globe and I'd like to thank them for their contribution to making 2023 another successful year.
Creating value through growth and Performance Excellence
Weir is a great business with a compelling opportunity to create value for all our stakeholders. Our customers see increasing demand for the metals and minerals necessary to enable the global energy transition and the need for the mining industry to scale up and clean up. Our engineering technology is a critical enabler of our customers' success in supporting this transition. In addition, through our Performance Excellence transformation programme, we are taking action to drive improvements in our own efficiency and effectiveness. I am delighted with the progress achieved in the programme's first full year and, with the foundations firmly in place, we expect to see increasing benefits flowing through in the
year ahead.
Connecting with our stakeholders
Spending time with employees and customers is a very important part of our Board agenda. This year we visited:
- Vancouver, Canada - meeting the team at our Motion Metrics AI business and our senior leaders at their annual conference.
- Our facility at Venlo in the Netherlands - touring the operations and the Sustainable Mining Technology Centre.
- Australia - a major market for us and the birthplace of our world- leading Warman® pumps. We toured our operations and visited customers including Fortescue Metals Group to whom we've supplied innovative technology for their Iron Bridge project, and Northern Star Resources where we toured the Kalgoorlie Consolidated Gold Mine.
Individually or in small groups, my Board colleagues and I also visited Weir's operations in the US, Canada, South Africa and the UK this year.
I also met with our major shareholders during 2023 to understand their perspectives on our performance, governance and strategy.
It is evident from my discussions that the views of our shareholders are well aligned with our own and I'd like to thank them for their continued support and constructive input.
Our role in supporting engagement and shaping culture
The Board has a crucial role to play in shaping culture and setting the tone. Safety is always our top priority, in our Board meetings and in our virtual and in-person meetings with employees. It has been pleasing to see the engagement across Weir in our Zero Harm Behaviours programme, however, our safety performance is not yet where it needs to be. The programme has laid important foundations that we must build upon in 2024 and as a Board, we will continue our engagement with management on safety and draw on the mining industry experience of our Board members.
During our three site visits this year we hosted our regular 'Tell the Board' and town hall sessions where we heard directly from employees. Safety and business strategy remained key discussion themes, along with inclusion, diversity and equity. The Board always appreciates the candour of these discussions which highlight the challenges experienced by colleagues both in the workplace and with our customers. Raising these issues and sharing experiences is invaluable in helping us focus on how best to create opportunities for success and a sense of belonging for everyone at Weir.
The Weir Group PLC Annual Report and Financial Statements 2023
8
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The Weir Group plc published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 11:07:48 UTC.