2011/12 RESULTS. 12 June RPC Market Leader in Europe

Transcription

1 2011/12 RESULTS 12 June 2012 RPC Market Leader in Europe

2 AGENDA Financial Review Business Review Outlook 2

3 FINANCIAL REVIEW KEY FIGURES Revenue Adjusted operating profit Adjusted basic EPS* 74.3* 1, p p 14.4p 21.1p 29.9p 07/08 08/09 09/10 10/11 11/12 07/08 08/09 09/10 10/11 11/12 *2010/11 pro-forma adjusted operating profit 07/08 08/09 09/10 10/11 11/12 * Restated following Rights Issue All figures (except adjusted basic EPS) in m Adjusted = before restructuring costs, impairment losses and mark to market charges 3

4 FINANCIAL REVIEW CONSOLIDATED INCOME STATEMENT million 2011/ /11 Variance Revenue 1, Operating profit adjusted Interest charge (13.2)* (4.2) (9.0) Profit before tax adjusted Tax on adjusted profit before tax (20.1) (12.4) (7.7) Profit after tax adjusted Exceptional items (20.6) (18.0) (2.6) Tax relief on exceptionals Mark to market (charges) / credit (0.1) 1.0 (1.1) Profit after tax reported Basic earnings per share (p) adjusted 37.3p 29.9p 7.4p Basic earnings per share (p) reported 27.7p 19.5p 8.2p * Includes 1.7m reclassification of employee benefit net finance expense from operating profit to interest charge 4

5 FINANCIAL REVIEW KEY FIGURES Net cash from operating activities 21.00% Return on Capital Employed Dividend per share* 19.00% 17.00% 15.00% % 19.1% 14.4p % 9.00% 12.1% 10.7% 13.5% * 15.1% 7.2p 7.4p 8.4p 11.5p 7.00% 07/08 08/09 09/10 10/11 11/12 Net cash from operating activities in m Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Average Capital employed * 489 *Mar 11 pro-forma 07/08 08/09 09/10 10/11 11/12 * Restated following Rights Issue 5

6 FINANCIAL REVIEW CONSOLIDATED BALANCE SHEET million MAR 2012 MAR 2011 Property, plant and equipment Goodwill Other non-current assets Working capital Employee benefit liabilities (LT) (56.3) (51.0) Other liabilities (54.2) (59.1) Net debt (167.9) (178.7) Equity shareholder funds

7 FINANCIAL REVIEW CASH FLOW BRIDGE (80) 2 (15) 21 (12) (42) (179) 140 (74) (168) (198) 85 (11) (28) (20) (22) 86 *Includes exchange rate movements, exceptional spend, provision movements & lump sum UK DB payments 7

8 FINANCIAL REVIEW FINANCIAL POSITION KPIs MAR 2012 MAR Renewal date main facilities Gearing 62% 68% Net debt ( m) Undrawn facilities ( m) m RCF Net debt to EBITDA ratio 1.21x 1.46x 50 USPP USPP EBITDA to Net Interest ratio 10.6x 19.9x

9 FINANCIAL REVIEW SUMMARY Record profit performance with ROCE improving from 15% to 19% EPS (adjusted) improved by 25% to 37.3p with full year dividend also proposed to increase by 25% Good cash flow generation with growth related capital expenditure increasing Financial position robust with long term financing facilities in place 9

10 BUSINESS REVIEW SUPERFOS UPDATE Superfos integration largely completed with the Runcorn site to be closed by the end of June 2012 Cost and revenue synergies of 10m realised in the first full year of ownership Steady state P/L synergies projected to be 15m to 25m of which 15m are expected to be achieved in 2012/13 Circa 20m of cash synergies with respect to working capital reduction has been realised by March 2012 (of which 12m was achieved in 2010/11) Medium term synergies (revenue, best practice exchange, technology) pursued through continuous improvement programme RPC As Was site RPC Superfos Superfos is also active in Tunisia and Algeria via a joint venture 10

11 BUSINESS REVIEW MARKET SECTORS Dairy Products 7% Other food 24% Long shelf-life 8% Other non food 16% Surface coatings 9% Spreads 11% Coffee 8% Personal care and cosmetics 13% Food 58% Non-Food 42% 11

12 BUSINESS REVIEW MARKET DEVELOPMENTS Revenue increased by 311m to 1,130m due to 5% growth on a like-for-like basis and the inclusion of Superfos Like-for-like revenue increase mainly due to higher sales prices as higher polymer prices were passed through and the sales mix improved Overall like-for-like volumes (polymer tonnes converted) were similar to last year with good growth in higher added value products 12

13 BUSINESS REVIEW MARKET DEVELOPMENTS Growth in higher added value products* 17.7% CAGR Development in higher added value products ( HAVPs ) demonstrates the continuing improvement in sales mix HAVPs includes those products where innovation has provided a clear opportunity for differentiation, including pharma, barrier food, high end personal care and coffee capsules Higher added value products have grown by a CAGR of 17.7% between 2009/10 and 2011/12 09/10 10/11 11/12 Sales of higher added value products in m *2009/10 and 2010/11 include HAVPs sold by the Superfos cluster 13

14 BUSINESS REVIEW PRODUCT MARKET COMBINATIONS Niche (25%) Weak Competitive position Strong Exit: MLE Vending 1% 1% 1% 0.5% 10% 3% 2.5% 7% 8% 7% 3% 2% 1% 2% Sectors to be de-emphasised 9% 6% 7% 2% Strong sectors 8% 8% 4% 4% 3% Commodity strong (71.5%) Commodity (3.5%) % of FY 11/12 revenue Low Exit: Automotive components Market attractiveness High 14

15 BUSINESS REVIEW INPUT COST DEVELOPMENTS Polymer Price Development Global PP Supply/Demand Outlook 1,600 1,400 Tonnes (m) Operating Rate % 1,200 1,000 per tonne Source: Platts / ICIS HDPE BM PP HOMO Operating Rate Free capacity Demand Source: Chemical Market Associates, Inc. Polymer prices at record levels in Q4 will be passed through in subsequent periods 15

16 OUTLOOK Overall outlook remains positive with good growth opportunities in higher added value products Superfos has been successfully integrated with further synergies to be achieved The Group is on track to achieve its target ROCE of 20% in the year ending March 2014 Short term the Group is contending with an uncertain macro-economic environment and the current weakening of the euro against sterling 16

17 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, which: have been made by the directors in good faith based on the information available to them up to the time of their approval of this presentation; and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. The Company undertakes no obligation to update these forward-looking statements and nothing in this presentation should be construed as a profit forecast. 17

18 APPENDICES 18

19 FINANCIAL REVIEW SEGMENTAL ANALYSIS - IFRS 8 BASIS million FY 2011/12 FY 2010/11 Variance Injection Moulding Thermoforming Blow Moulding Revenue* Operating profit ** Return on sales ** 10.2% 8.4% 1.8% Return on net operating assets ** # 28.2% 26.0% 2.2% Revenue* Operating profit ** (1.0) Return on sales ** 4.8% 5.2% (0.4)% Return on net operating assets ** 20.0% 22.0% (2.0)% Revenue* Operating profit ** Return on sales ** 7.1% 6.0% 1.1% Return on net operating assets ** 21.8% 17.7% 4.1% * External sales only ** Based on adjusted operating profit before restructuring costs and impairment losses # FY 2010/11 Injection Moulding RONOA excludes 42 days Superfos trading included in the group result 19

20 FINANCIAL REVIEW SEGMENTAL ANALYSIS - GEOGRAPHICAL million FY 2011/12 FY 2010/11 Variance UK Revenue Operating profit * Return on sales 8.7% 9.5% (0.8)% Mainland Europe (including USA) Revenue Operating profit * Return on sales 8.2% 5.9% 2.3% * Based on adjusted operating profit before restructuring costs and impairment losses 20

21 FINANCIAL REVIEW PENSIONS UPDATE million MAR 2012 MAR 2011 Retirement benefit liability UK DB (29.0) (25.7) Other retirement benefit obligations (21.9) (19.8) Termination benefits (2.0) (2.1) Other employee benefit liabilities (3.4) (3.4) Total employee benefit liability (LT) (56.3) (51.0) 21

22 BUSINESS REVIEW GROUP STRUCTURE / MANAGEMENT TEAM Executive Board Members Chief Executive Ron Marsh British 25 years Finance Director Pim Vervaat Dutch 5 years Group Purchasing Darin Evans British 15 years Business Improvement Frank Doorenbosch Dutch 23 years Cluster Managers Superfos 11 sites UK Injection Moulding 6 sites Bramlage Wiko 9 sites Blow Moulding 12 sites Bebo 7 sites Tedeco-Gizeh 3 sites Cobelplast 2 sites René Valentin Danish 21 years Bruce Margetts British 25 years Alfons Böckmann German 37 years Stephan Bühl German 18 years Thomas Wahlmeyer German 31 years Albert de Bruin Dutch 20 years Attilia Menghini Italian 37 years Philippe Van Troost Belgian 22 years Years experience in the plastic packaging industry 22

23 BUSINESS REVIEW INPUT COST DEVELOPMENTS 1, , % 70.0% 1, % 31% 30% % 37% % 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% /08 08/09 09/10 10/11 11/ % Revenue Polymer costs Polymer costs % of revenue 23

24 BUSINESS REVIEW SUBSTITUTION REPRESENTS A MAJOR OPPORTUNITY Forecast growth in packaging markets, by material: CAGR (%) In both Western markets and the emerging economies growth in rigid plastic packaging is forecast to outstrip growth in both glass and metal packaging and the total packaging market as substitution takes effect Western markets Turkey and North African hotspots Rigid plastic packaging is forecast to grow significantly ahead of metal and in Europe and the US the market for glass packaging is forecast to contract, reflecting brand owners desire to reduce the weight of their packaging 4.2 World Europe US The acquisition of Superfos has opened up Turkey and the North African market to RPC. Here too growth in rigid plastic packaging will outstrip the market Turkey Tunisia BRIC region The BRIC countries show heightened growth rates across all packaging types, but across the entire region the forecast trend in packaging mix significantly favours rigid plastic Rigid plastics Glass Metal Total market Brazil Russia India China Source: Pira International,

25 BUSINESS REVIEW PASS-THROUGH AND THE TIME LAG EFFECT /t t0 Contribution lost Contribution gained t1 t2 t3 t4 t5 t6 Polymer cost Recovery of polymer cost within sales price Contracts with a pass-through clause provide for the regular re-set of sales prices according to movements in polymer prices, based on defined measurement periods Sales prices will catch up with polymer price movements, but with a time lag In times of rising prices, there will be a loss due to this time lag effect In times of falling prices, there will be a gain The majority of RPC s turnover is subject to pass-through, with re-set taking place typically every 3-4 months 25