Outlook

Outlook Statement - 2018 Half Year Results

During the first half of the year we saw a continuation of the more favourable market trends seen during the final quarter of 2017 as well as the receipt of several larger orders in the first quarter.

We have made significant progress on the reviews of our routes to market, innovation funnel, operations footprint, supply chain, talent development and IT systems. We have completed the data capture and analysis phase of most workstreams.

To support the implementation phase of our growth acceleration plan we have initiated an investment programme consisting of an expansion of our service infrastructure, development of our operational and procurement expertise and accelerated investment in our IT. Spend in these areas will continue to increase through the year.

Management expectations for OCC growth are unchanged. We expect revenues for the full year to show high single digit growth over last year on a reported basis, with currency headwinds reduced to circa 3% at current exchange rates. We continue to expect adjusted operating margins to be slightly ahead of the prior year.