Well, good
morning
and
welcome
to
the
2021
Full-Year
Results
Presentation
for
Meggitt
PLC.
And
with
me
today
is
Louisa
Burdett,
our
CFO.
I'll
begin
as
usual
by
providing
an
overview
of
the
year
before
Louisa
talks
through
the
numbers
in
more
detail.
I'll
then
take
you
through
how
we
continue
to
invest
for
the
future
across
the
group
and
provide
an
update
on
our
sustainability
framework
before
closing
with
our
view
of
the
recovery
and
the
outlook.
But
first,
please
note
the
following
cautionary
statement.
2021
was
another
significant
and
eventful
year
for
the
group.
Alongside
managing
the
group
through
the
recovery,
in
August,
we
announced
the
proposed
all
cash
£8.00
per
share
offer
from
Parker-Hannifin,
which
was
subsequently
approved
by
shareholders
in
September.
Work
continues
on
securing
the
necessary
regulatory
approvals,
and
we
continue
to
expect
the
deal
to
close
in
the
third quarter
of
2022.
Turning
now
to
our
financial
results,
group
organic
revenue
was
5%
than
the
prior
year
with
growth
of
8%
in
the
second
half.
In
civil
aerospace,
we
saw
a
good
improvement
alongside
the
recovery
in
air
traffic.
And
in
the
civil
aftermarket,
organic
revenue
was
up
51%
in
the
second
half,
closing
the
year
up
7%
with
encouraging
order
intake
in
the
final
quarter
and
a
book-to-bill
of
1.11
times.
Underlying
operating
profit
was
7%
lower
at
£177
million,
representing
a
margin
of
11.9%,
up
60
basis
points
versus
the
prior
year,
with
a
significant
uplift
in
margin
in
the
second
half.
We
delivered
another
good
cash
performance
with
a
free
cash
inflow
of
£46
million.
And
our
liquidity
and
balance
sheet
remained
strong
with
headroom
of
over
£570
million
and
a
net
debt
to
EBITDA
ratio
of
1.9
times
at
year-end.
Turning
then
to
our
strategy
and
our
four
core
priorities.
Starting
with
our
strategic
portfolio,
where
we
made
strong
progress
on
the
development
of
differentiated
technology
across
both
civil
aerospace
and
energy
businesses,
working
on
a
number
of
exciting
projects
alongside
our
customers
and
partners.
Working
with
our
customers,
we
secured
a
number
of
contract
wins
across
all
our
core
end
markets
and
added
11
SMARTSupport
contracts,
taking
the
aggregate
value
of
our
long-term
aftermarket
partnerships
to
over
£220
million.
And
in
competitiveness,
we
were
pleased
to
commission
on
new
Ansty
Park
facility,
with
direct
shipments
now
taking
place
from
the
site,
as
well
as
making
investments
and
operational
improvements
across
a
number
of
our
global
sites,
more
of
which
I'll
cover
later.
And
on
culture,
our
priority
continue
to
be
to
look
after
our
people,
as
well
as
keeping
a
strong
focus
on
our
high-performance
culture
program
and
diversity
and
inclusion
initiatives
reflected
in
continuing
strong
levels
of
employee
engagement.
So
in
summary,
we've
continued
to
execute
our
core
strategy
and
remain
focused
on
our
priorities
to
position
ourselves
for
the
future.
And
with
that,
I'll
hand
over
to
Louisa
to
talk
through
the
numbers
in
more
detail.
L
Louisa S. Burdett
Thank
you,
Tony.
And
good
morning,
everyone.
As
usual,
I
will
start
with
the
income
statement
focusing
on
the
underlying
numbers
on
an
organic
basis.
While
the
group's
full-year
performance
reflects
the
challenges
posed
by
a
second
year
of
COVID-19
as
well
as
supply
chain
disruption,
pleasingly,
we
have
seen
signs
of
the
civil
aerospace
recovery,
particularly
in
the
second
half,
with
sequential
improvement
in
both
order
intake
and
revenue.
Orders
were
9%
higher
than
the
prior
year.
And
our
book-to-bill
was
1.01
times,
which
is
an
improvement
from
the
first
half.
This
includes
strong
growth
in
civil
aerospace
orders
of
117%
in
the
second
half
versus
the
same
period
last
year.
And
a
rise
of
42%.
Group
for
revenue
was
5%
lower,
with
flat
revenue
in
civil
aerospace,
growth
of
6%
in
energy,
which
was
more
than
offset
by
softer
defense.
Underlying
operating
profit
at
£177
million
was
7%
lower
than
the
prior
year
and
includes
the
net
impact
of
lower
defense,
supply
chain
costs
and
FX
headwinds.
Our
underlying
EPS
was
£0.154
per
share.
So,
turning
to
the
next
slide,
which
looks
at
revenue
by
end
markets,
in
the
top
right,
we've
included
a
table
to
show
the
quarterly
as
well
as
half
year
growth
rates
compared
with
the
prior
year.
This
is
to
give
you
a
flavor
of
the
trends
we're
now
seeing
and
notably
the
return
to
growth
in
civil.
So,
working
down
the
left
hand
chart
and
focusing
on
the
organic
numbers,
civil
OE
revenue
was
down
10%.
That
was
down
28%
in
the
first
half
and
up
17%
in
the
second
half.
Civil
aftermarket
revenue
was
up
7%
for
the
full
year,
down
24%
and
up
51%
in
half
one
and
half
two,
respectively.
And
overall,
civil
aerospace
revenue
was
flat
in
the
period.
Defense
represents
42%
of
our
2021
group
revenue
and
this
was
down
11%.
Within
this,
Defence
OE
and
Defence
AM
were
down
7%
and
17%,
respectively,
which
reflects
a
combination
of
two
main
factors.
First,
we
had
inventory
destocking
and
lower
order
patterns
by
the
DLA
and
second
COVID
related
disruption
in
the US.
In
energy,
revenue
was
up
6%,
a
good
performance
with
the
pipeline
remaining
strong
as
we
entered
2022.
On
a
portfolio
basis,
OE
and
Aftermarket
made
up
54%
and
46%,
respectively
of
our
full
year
revenue.
On
this
next
slide,
I
have
set
out
the
sequential
half-year
growth
rates
across
civil
aerospace
for
both
orders
and
revenue
going
back
to
2019.
As
you
can
see,
we
have
continued
sequential
growth
for
both
orders
and
revenue
in
both
OE
and
the
aftermarket
since
the
second
half
of
last
year,
with
particularly
strong
growth
in
civil
aftermarket,
which
was
up
63%
and
38%
in
the
second
half
versus
the
first
half
for
orders
and
revenue,
respectively.
This
provides
confidence
as
we
enter
2022.
Turning
to
the
next
slide
on
our
divisional
performance,
where
I
will
focus
on
a
few
key
points
shown
in
the
gray
boxes
on
the
right.
So
starting
with
Airframes
where
revenue
was
3%
lower,
within
this,
civil
was
up
2%
which
included
20%
growth
in
the
aftermarket,
driven
by
our
brakes
business,
which
was
more
than
offset
by
defense,
which
was
5%
lower.
Operating
margins
increased
by
110
basis
points.
The
operating
loss
in
Engine
Systems
is
largely
attributable
to
lower
defense
revenue
in
engine
composites caused
lower defense revenue
in
Engine Composites
caused
by
three
factors:
one,
a
large
one-off
order
in
the
prior
year;
two,
a
temporary
supplier
issue
in
the
first
quarter
of
this
year,
which
was
resolved;
and
three,
lower
productivity
caused
by
COVID-related
disruption
in
the US.
We
continue
to
make
good
progress
in
the
civil
part
of
engine
composites,
where
revenue
was
flat.
We've
transferred
more
production
to
our
site
in
Mexico,
as
well
as
introducing
further
process
improvements
and
increasing
yields
significantly.
Revenue
was
flat
in
energy
and
equipment,
with
a
good
performance
in
energy
and
other
markets,
both
up
9%
offset
by
softer
defense.
Margins
were
120
basis
points
higher.
And
then,
finally,
services
and
support,
where
organic
revenue
was
11%
lower,
civil
revenue
was
3%
lower
and
included
a
good
recovery
in
the
second
half,
with
growth
of
31%
versus
the
comparative
period.
Defense
revenue
was
down
32%,
reflecting
the
impact
of
the
lower
DLA
volumes.
Operating
margins
were
120
basis
points
lower
in
the
period.
So,
moving
on
to
the
next
slide
and
to
cash,
where
we
were
very
pleased
to
have
delivered
another
year
of
positive
free
cash
flow.
Our
higher
working
capital
reflects
the
investment
in
inventory
in
response
to
the
civil
recovery,
as
well
as
supporting
our
supply
chain,
where
we
expect
the
environment
to
remain
challenging
during
at
least
the
first
half
of
this
year.
Lower
capital
expenditure
of
£70 million
largely
reflects
the
re-phasing
of
a
proportion
of
our
investment
in
brakes
capacity
into
2022.
Proceeds
from
disposals
relate
to
sale-and-leaseback
transactions
as
part
of
our
broader
footprint
strategy
and
pension
deficit
payments
of
£42
million
are
in
line
with
the
revised
payment
schedule
we
have
previously
disclosed.
And
finally,
cash
tax
of
£38
million
was
lower
than
expected
due
to
the
lower
levels
of
profit
in
the
US.
This
does
include
the
£18 million
CFC
payment
to
HMRC.
Free
cash
flow
of
£46
million
had
a
favorable
impact
on
our
net
debt
before
the
impact
of
FX
and
leases.
And
then
finally,
moving
to
our
balance
sheet,
the
left-hand
chart
shows
that
we
have
managed
to
keep
net
debt
broadly
flat
with
positive
free
cash
flow
of
£46
million
offset
by
the
net
impact
from
disposals,
leases
and
FX
of
£53
million.
And
on
the
right-hand
chart,
our
net
debt
to
EBITDA
ratio
was
1.9
times
at
the
end
of
December,
which
is
well
within
the
limit
of
3.5
times
and
getting
back
towards
pre-pandemic
levels.
In
the
top
right-hand
corner,
we
had
significant
headroom
of
£573
million
at
the
end
of
the
year
against
committed
facilities
of
£1.2
billion.
I
will now hand you back to Tony.
T
Tony Wood
Thank
you,
Louisa.
Now,
I'd
like
to
talk
about
how
we
continue
to
invest
across
the
group
to
position
ourselves
for
the
recovery
and
the
longer
term.
Key
to
maintaining
growth
in
the
future
is
that
we
continue
to
invest
in
innovative
and
differentiated
technologies.
In
2021,
we
spent
close
to
80%
of
our
innovation
spend
on
sustainable
technologies
for
aerospace
and
clean
energy
markets,
which
are
critical
to
supporting
our
customers
with
their
own
targets
to
reduce
emissions.
I'm
delighted
that
our
work,
particularly
in
areas
such
as
optical
sensing,
thermal
management
systems,
as
well as
electrical
systems
for
next
generation
flight,
has
enabled
us
to
book
some
significant
customer
orders
with
a
number
of
projects
in
the
pipeline.
As
you
know,
one
of
our
major
projects
is
the
development
of
our
state-of-the-art
manufacturing
facility
at
Ansty
Park
in
the
UK,
which
we
commissioned
in
2021.
As
a
reminder,
the
site
is
home
for
our
Engineering
and
Advanced
Manufacturing
Center
of
Excellence,
our
thermal
and
braking
systems
product
groups,
and
our
European
Services
and
Support
hub,
together
with
our
global
headquarters.
This
project
represents
Meggitt's
largest
infrastructure
investment
in
our
history,
and
it
consolidates
five
of
our
UK
sites
into
one,
covering
around
500,000
square
feet,
with
over
70%
dedicated
to
manufacturing.
The
project,
which
began
in
2019,
involved
the
transfer
of
over
1,700 pieces
of
equipment
and
the
transition
of
around
1,000 employees,
and
will
help
deliver
a
number
of
operational
efficiency
and
sustainability
benefits
in
the
years
ahead.
We've
also
made
investments
to
improve
operational
capability
across
other
global
sites,
at
our
Rockmart
facility
in
Georgia,
USA,
for
instance,
our
Fuel
Systems
manufacturing
site.
We've
invested
significantly,
increasing
the
use
of
automation
and
enhancing
our
lean
production
and
testing
capabilities,
as
well
as
upgrading
systems
to
improve
the
working
environment.
And
at
our
Engine
Composites
site
in
Saltillo,
Mexico,
we've
continued
to
invest
in
process
improvements
and
manufacturing
efficiency,
increasing
yield
significantly
on
composite
components.
These
represent
just
two
of
the
investments
we're
making
at
our
sites
complementing
the
work
we're
doing
to
harmonize
our
processes
and
improve
our
operational
effectiveness
through
our
high
performance
system.
So,
turning
to
my
next
slide,
you
may
remember
last
year
we
introduced
our
ESG
framework,
which
is
arranged
under
three
core
pillars
of
people,
planet
and
technology.
Under
the
people,
we
continued
the
rollout
of
high
performance
culture
training
with
nearly
70%
of
our
employees
now
trained.
We
also
continue
to
invest
in
talent
through
our
graduate
and
apprentice
schemes
and
participate
in
the
10,000 Black
Interns
program
in
the
UK.
Our
work
on
diversity
and
inclusion
has
resulted
in
our
eight
employee
resource
groups
attracting
a
membership
of
over
1,000 employees,
and
during
the
year
we
held
our
annual
diversity
and
inclusion
week
with
18
sites
holding
events.
I'm
really
pleased
to
see
the
work
we
continue
to
do
on
culture
has
resulted
in
strong
levels
of
employee
engagement,
which
increased
by
2%
in
2021
and
is
now
4%
above
the
global
high
performing
benchmark.
In
planet,
which
represents
our
commitment
to
contributing
to
a
cleaner
future,
we
join
the
United
Nations
Race
to
Zero
campaign,
which
is
committed
to
reducing
absolute
value
chain
emissions
to
net
zero
by
2050.
And
we're
also
adopting
the
Science Based
Targets
initiative,
allowing
us
to
accurately
measure
our
progress
on
emissions
in line
with
the
Paris
Agreement.
Our
goal
to
reduce
our
own
greenhouse
gas
emissions
by
50%
by
2025
has
also
made
good
progress
with
all
of
our
UK,
Swiss
and
Danish
sites
now
sourcing
100%
of
their
electricity
from
renewable
sources.
So,
moving
on
to
talk
about
how
we're
seeing
the
recovery.
While
we've
been
encouraged
by
the
continued
increase
in
civil
aerospace
activity
in
2021,
as
you
can
see
from
the
chart
on the
left-hand
side
of
this
slide,
the
extent
and
shape
of
the
recovery
has
been
uneven
and
has
varied
between
regions
reflecting
different
rates
of
infection
and
how
countries
have
responded
to
outbreaks.
And
you
can
also
see
how
volatility
in
larger
regions
such
as
China
significantly
influences
global
levels
of
air
traffic
activity.
Looking
at
the
chart
on
the
right,
you
can
see
how
rates
of
infection
and
intermittent
closure
of
international
borders
have
been
varying
degrees
of
utilization
between
different
platform
categories
with
domestic,
business
jets,
and
cargo
continuing
to
outperform
the
recovery
in
international.
Although
we
expect
the
recovery
to
continue
to
follow
an
upward
trajectory,
it's
likely
to
remain
non-linear,
at
least
in
the
first
part
of
2022.
Turning
to
the
next
slide,
which
shows
our
civil
aftermarket
performance
across
brakes
and
our
non-brakes
product
groups,
and
the
positive
sequential
pattern
that
we've
seen
throughout
the
year.
We've
said
for
some
time
now
that
we
expected
brakes
to
come
back
first
given
the
higher
aftermarket
intensity
and
more
frequent
replacement
rates.
And
with
growth
of
21%
for
the
year,
this
product
group
was
the
biggest
contributor
to
overall
civil
aftermarket
growth
of
6%.
As
you
can
see
from
the
charts
for
both
order
intake
and
revenue,
we've
seen
progressive
growth
throughout
the
year,
particularly
in
the
fourth
quarter.
And
with
a
strong
start
to
the
year
in
January,
this
gives
us
good
momentum
into
2022.
So,
moving
on
to
my
penultimate
slide
before
concluding
with
the
summary
and
outlook,
there
remains
a
significant
pent-up
demand
to
travel.
And
as
the
world
continues
to
open
up,
the
medium-term
outlook
for
civil
aerospace
remains
positive
with
recovery
to
2019
levels
of
activity
still
expected
to
take
place
around
2023
to
2024.
And
with
strong
demand
for
new,
more
efficient
aircraft
evidenced
by
healthy
OEM
backlogs
and
increases
in
new
build
rates,
the
attractive
long-term
fundamentals
for
the
sector
remain
firmly
in
place.
With
increased
content
on
the
latest
platforms
and
the
breadth
of
our
civil
aerospace
business,
we
remain
well-placed
to
benefit
from
the
continued
recovery.
So
in
summary,
after
what's
been
another
highly
eventful
year
for
the
group,
I'd
like
to
thank
our
global
teams
for
their
continued
resilience
and
dedication
in
delivering
for
our
customers
and
in
continuing
to
execute
our
successful
strategy.
We've
started
to
see
encouraging
signs
of
the
recovery,
particularly
in
the
second
half
of
last
year
with
aftermarket
growth
helping
to
drive
a
strong
improvement
in
margin.
As
a
result
of
our
continued
focus
in
this
area,
we
delivered
another
good
year
for
cash
and
our
balance
sheet
remains
strong.
We
continue
to
deliver
our
strategy,
investing
in
our
people,
our
technology,
and
our
sites,
and
we've
also
secured
a
number
of
new
customer
contract
wins
positioning
us
well
as
the
recovery
in
civil
aerospace
comes
through.
So
finally,
as
the
group
is
in
an
offer
period
under
the
UK
Takeover
Code,
we
are
not
providing
financial
guidance
for
2022.
Thank
you
for
listening.
Our
next
scheduled
announcement
will
be
the
quarter
one
results
in
April
of
this
year.
Well, good morning and welcome to the 2021 Full-Year Results Presentation for Meggitt PLC. And with me today is Louisa Burdett, our CFO. I'll begin as usual by providing an overview of the year before Louisa talks through the numbers in more detail. I'll then take you through how we continue to invest for the future across the group and provide an update on our sustainability framework before closing with our view of the recovery and the outlook. But first, please note the following cautionary statement.
2021 was another significant and eventful year for the group. Alongside managing the group through the recovery, in August, we announced the proposed all cash £8.00 per share offer from Parker-Hannifin, which was subsequently approved by shareholders in September. Work continues on securing the necessary regulatory approvals, and we continue to expect the deal to close in the third quarter of 2022.
Turning now to our financial results, group organic revenue was 5% than the prior year with growth of 8% in the second half. In civil aerospace, we saw a good improvement alongside the recovery in air traffic. And in the civil aftermarket, organic revenue was up 51% in the second half, closing the year up 7% with encouraging order intake in the final quarter and a book-to-bill of 1.11 times.
Underlying operating profit was 7% lower at £177 million, representing a margin of 11.9%, up 60 basis points versus the prior year, with a significant uplift in margin in the second half. We delivered another good cash performance with a free cash inflow of £46 million. And our liquidity and balance sheet remained strong with headroom of over £570 million and a net debt to EBITDA ratio of 1.9 times at year-end.
Turning then to our strategy and our four core priorities. Starting with our strategic portfolio, where we made strong progress on the development of differentiated technology across both civil aerospace and energy businesses, working on a number of exciting projects alongside our customers and partners. Working with our customers, we secured a number of contract wins across all our core end markets and added 11 SMARTSupport contracts, taking the aggregate value of our long-term aftermarket partnerships to over £220 million.
And in competitiveness, we were pleased to commission on new Ansty Park facility, with direct shipments now taking place from the site, as well as making investments and operational improvements across a number of our global sites, more of which I'll cover later.
And on culture, our priority continue to be to look after our people, as well as keeping a strong focus on our high-performance culture program and diversity and inclusion initiatives reflected in continuing strong levels of employee engagement.
So in summary, we've continued to execute our core strategy and remain focused on our priorities to position ourselves for the future. And with that, I'll hand over to Louisa to talk through the numbers in more detail.
Thank you, Tony. And good morning, everyone. As usual, I will start with the income statement focusing on the underlying numbers on an organic basis. While the group's full-year performance reflects the challenges posed by a second year of COVID-19 as well as supply chain disruption, pleasingly, we have seen signs of the civil aerospace recovery, particularly in the second half, with sequential improvement in both order intake and revenue.
Orders were 9% higher than the prior year. And our book-to-bill was 1.01 times, which is an improvement from the first half. This includes strong growth in civil aerospace orders of 117% in the second half versus the same period last year. And a rise of 42%. Group for revenue was 5% lower, with flat revenue in civil aerospace, growth of 6% in energy, which was more than offset by softer defense. Underlying operating profit at £177 million was 7% lower than the prior year and includes the net impact of lower defense, supply chain costs and FX headwinds. Our underlying EPS was £0.154 per share.
So, turning to the next slide, which looks at revenue by end markets, in the top right, we've included a table to show the quarterly as well as half year growth rates compared with the prior year. This is to give you a flavor of the trends we're now seeing and notably the return to growth in civil.
So, working down the left hand chart and focusing on the organic numbers, civil OE revenue was down 10%. That was down 28% in the first half and up 17% in the second half. Civil aftermarket revenue was up 7% for the full year, down 24% and up 51% in half one and half two, respectively. And overall, civil aerospace revenue was flat in the period.
Defense represents 42% of our 2021 group revenue and this was down 11%. Within this, Defence OE and Defence AM were down 7% and 17%, respectively, which reflects a combination of two main factors. First, we had inventory destocking and lower order patterns by the DLA and second COVID related disruption in the US. In energy, revenue was up 6%, a good performance with the pipeline remaining strong as we entered 2022. On a portfolio basis, OE and Aftermarket made up 54% and 46%, respectively of our full year revenue.
On this next slide, I have set out the sequential half-year growth rates across civil aerospace for both orders and revenue going back to 2019. As you can see, we have continued sequential growth for both orders and revenue in both OE and the aftermarket since the second half of last year, with particularly strong growth in civil aftermarket, which was up 63% and 38% in the second half versus the first half for orders and revenue, respectively. This provides confidence as we enter 2022.
Turning to the next slide on our divisional performance, where I will focus on a few key points shown in the gray boxes on the right. So starting with Airframes where revenue was 3% lower, within this, civil was up 2% which included 20% growth in the aftermarket, driven by our brakes business, which was more than offset by defense, which was 5% lower. Operating margins increased by 110 basis points.
The operating loss in Engine Systems is largely attributable to lower defense revenue in engine composites caused lower defense revenue in Engine Composites caused by three factors: one, a large one-off order in the prior year; two, a temporary supplier issue in the first quarter of this year, which was resolved; and three, lower productivity caused by COVID-related disruption in the US.
We continue to make good progress in the civil part of engine composites, where revenue was flat. We've transferred more production to our site in Mexico, as well as introducing further process improvements and increasing yields significantly. Revenue was flat in energy and equipment, with a good performance in energy and other markets, both up 9% offset by softer defense. Margins were 120 basis points higher.
And then, finally, services and support, where organic revenue was 11% lower, civil revenue was 3% lower and included a good recovery in the second half, with growth of 31% versus the comparative period. Defense revenue was down 32%, reflecting the impact of the lower DLA volumes. Operating margins were 120 basis points lower in the period.
So, moving on to the next slide and to cash, where we were very pleased to have delivered another year of positive free cash flow. Our higher working capital reflects the investment in inventory in response to the civil recovery, as well as supporting our supply chain, where we expect the environment to remain challenging during at least the first half of this year. Lower capital expenditure of £70 million largely reflects the re-phasing of a proportion of our investment in brakes capacity into 2022.
Proceeds from disposals relate to sale-and-leaseback transactions as part of our broader footprint strategy and pension deficit payments of £42 million are in line with the revised payment schedule we have previously disclosed. And finally, cash tax of £38 million was lower than expected due to the lower levels of profit in the US. This does include the £18 million CFC payment to HMRC. Free cash flow of £46 million had a favorable impact on our net debt before the impact of FX and leases.
And then finally, moving to our balance sheet, the left-hand chart shows that we have managed to keep net debt broadly flat with positive free cash flow of £46 million offset by the net impact from disposals, leases and FX of £53 million. And on the right-hand chart, our net debt to EBITDA ratio was 1.9 times at the end of December, which is well within the limit of 3.5 times and getting back towards pre-pandemic levels. In the top right-hand corner, we had significant headroom of £573 million at the end of the year against committed facilities of £1.2 billion.
I will now hand you back to Tony.
Thank you, Louisa. Now, I'd like to talk about how we continue to invest across the group to position ourselves for the recovery and the longer term. Key to maintaining growth in the future is that we continue to invest in innovative and differentiated technologies. In 2021, we spent close to 80% of our innovation spend on sustainable technologies for aerospace and clean energy markets, which are critical to supporting our customers with their own targets to reduce emissions.
I'm delighted that our work, particularly in areas such as optical sensing, thermal management systems, as well as electrical systems for next generation flight, has enabled us to book some significant customer orders with a number of projects in the pipeline.
As you know, one of our major projects is the development of our state-of-the-art manufacturing facility at Ansty Park in the UK, which we commissioned in 2021. As a reminder, the site is home for our Engineering and Advanced Manufacturing Center of Excellence, our thermal and braking systems product groups, and our European Services and Support hub, together with our global headquarters. This project represents Meggitt's largest infrastructure investment in our history, and it consolidates five of our UK sites into one, covering around 500,000 square feet, with over 70% dedicated to manufacturing. The project, which began in 2019, involved the transfer of over 1,700 pieces of equipment and the transition of around 1,000 employees, and will help deliver a number of operational efficiency and sustainability benefits in the years ahead.
We've also made investments to improve operational capability across other global sites, at our Rockmart facility in Georgia, USA, for instance, our Fuel Systems manufacturing site. We've invested significantly, increasing the use of automation and enhancing our lean production and testing capabilities, as well as upgrading systems to improve the working environment. And at our Engine Composites site in Saltillo, Mexico, we've continued to invest in process improvements and manufacturing efficiency, increasing yield significantly on composite components. These represent just two of the investments we're making at our sites complementing the work we're doing to harmonize our processes and improve our operational effectiveness through our high performance system.
So, turning to my next slide, you may remember last year we introduced our ESG framework, which is arranged under three core pillars of people, planet and technology. Under the people, we continued the rollout of high performance culture training with nearly 70% of our employees now trained. We also continue to invest in talent through our graduate and apprentice schemes and participate in the 10,000 Black Interns program in the UK.
Our work on diversity and inclusion has resulted in our eight employee resource groups attracting a membership of over 1,000 employees, and during the year we held our annual diversity and inclusion week with 18 sites holding events. I'm really pleased to see the work we continue to do on culture has resulted in strong levels of employee engagement, which increased by 2% in 2021 and is now 4% above the global high performing benchmark.
In planet, which represents our commitment to contributing to a cleaner future, we join the United Nations Race to Zero campaign, which is committed to reducing absolute value chain emissions to net zero by 2050. And we're also adopting the Science Based Targets initiative, allowing us to accurately measure our progress on emissions in line with the Paris Agreement. Our goal to reduce our own greenhouse gas emissions by 50% by 2025 has also made good progress with all of our UK, Swiss and Danish sites now sourcing 100% of their electricity from renewable sources.
So, moving on to talk about how we're seeing the recovery. While we've been encouraged by the continued increase in civil aerospace activity in 2021, as you can see from the chart on the left-hand side of this slide, the extent and shape of the recovery has been uneven and has varied between regions reflecting different rates of infection and how countries have responded to outbreaks. And you can also see how volatility in larger regions such as China significantly influences global levels of air traffic activity.
Looking at the chart on the right, you can see how rates of infection and intermittent closure of international borders have been varying degrees of utilization between different platform categories with domestic, business jets, and cargo continuing to outperform the recovery in international. Although we expect the recovery to continue to follow an upward trajectory, it's likely to remain non-linear, at least in the first part of 2022.
Turning to the next slide, which shows our civil aftermarket performance across brakes and our non-brakes product groups, and the positive sequential pattern that we've seen throughout the year. We've said for some time now that we expected brakes to come back first given the higher aftermarket intensity and more frequent replacement rates. And with growth of 21% for the year, this product group was the biggest contributor to overall civil aftermarket growth of 6%. As you can see from the charts for both order intake and revenue, we've seen progressive growth throughout the year, particularly in the fourth quarter. And with a strong start to the year in January, this gives us good momentum into 2022.
So, moving on to my penultimate slide before concluding with the summary and outlook, there remains a significant pent-up demand to travel. And as the world continues to open up, the medium-term outlook for civil aerospace remains positive with recovery to 2019 levels of activity still expected to take place around 2023 to 2024. And with strong demand for new, more efficient aircraft evidenced by healthy OEM backlogs and increases in new build rates, the attractive long-term fundamentals for the sector remain firmly in place. With increased content on the latest platforms and the breadth of our civil aerospace business, we remain well-placed to benefit from the continued recovery.
So in summary, after what's been another highly eventful year for the group, I'd like to thank our global teams for their continued resilience and dedication in delivering for our customers and in continuing to execute our successful strategy. We've started to see encouraging signs of the recovery, particularly in the second half of last year with aftermarket growth helping to drive a strong improvement in margin.
As a result of our continued focus in this area, we delivered another good year for cash and our balance sheet remains strong. We continue to deliver our strategy, investing in our people, our technology, and our sites, and we've also secured a number of new customer contract wins positioning us well as the recovery in civil aerospace comes through.
So finally, as the group is in an offer period under the UK Takeover Code, we are not providing financial guidance for 2022.
Thank you for listening. Our next scheduled announcement will be the quarter one results in April of this year.