RPC Group Plc 2015/16 Interim Results

Transcription

1 RPC THE ESSENTIAL INGREDIENT RPC Group Plc November 2015

2 Agenda Business Review Promens Update Financial Review Outlook PV FD SK PV 102

3 FOCUSED GROWTH *Proforma Group at constant exchange rates and polymer prices RPC Group Plc Business Review Vision 2020 strategy: Progress to date Continuing focus on organic growth 4% underlying packaging revenue increase in year* Continued innovation in product design and engineering Selective consolidation in Europe Acquisition of Innocan (May 2015) and Depicton (June 2015) Good pipeline of acquisition targets Organisational integration of Promens completed 103 Creating a meaningful presence outside Europe Further investment in USA to expand niche positions 57% increase in non-european sales to 101m or 13% of Group total Investment in greenfield plant in Brazil underway Pursuing added value opportunities in non packaging markets Further investment in electroplating capabilities in China Improved performance in Promens non-packaging businesses Acquisition of Strata Products (November 2015)

4 Business Review Continuing focus on innovation in product design and process technology Company of the Year 2015 at the UK Packaging Awards for the second year running Shortlisted for Design Team of the Year Products shortlisted Developments in process technology 104 Rigid Plastic Pack of the Year Next Generation High Speed Assembly Best Packaging: New Product Consumer Convenience Award In-Mould Labelling in Thermoforming

5 Business Review Acquisition of Strata Products Acquisition of Strata: Acquired November 2015 A market leading manufacturer of material handling products including branded products for the horticultural market Good strategic fit Single site located in Nottinghamshire with sales of 29m and strong market positions 105 Manufacturing capabilities include injection moulding, blow moulding and rotational moulding Clear synergies available in terms of purchasing and best practise exchange Meets RPC s financial acquisition criteria

6 Business Review Market Developments By market segment By production origin 256m 168m 156m 56m 137m 27m 182m 165m Food MARKET SEGMENT Food Packaging ACTIVITY LEVELS COMMENT Continued higher added values growth with barrier solutions such as SuperLock and sauces Non-Food Packaging Overall stable business environment Personal Care Good growth of Bramlage and M&H, following new product launches Beverage Continued growth in single serve beverage systems Technical Components Non-Food Personal Care Beverage Lower tool sales partly off-set by growth in Promens non-packaging components Healthcare Imminent new product introduction Technical Components Healthcare United Kingdom Germany 352m 36m Rest of Europe North America 63m 5m* Asia Africa *Pro-forma sales including JV 106

7 Business Review Polymer Price Development Development polymer price index PER TONNE 1,800 Capacity utilisation polymer industry TONNES (M) OPERATING RATE % 90 92% 1, % 1,400 1,200 1, % 86% 84% 82% % % Source: Platts / ICIS PP HOMO HDPE BM Operating Rate Actual Demand Free Capacity Forecast Demand Source: Chemical Market Associates, Inc. Adverse impact from time lag in passing through polymer prices in first half year

8 Integration Update 108

9 Integration Update Promens integration: Large scale European consolidation Organisational Restructure Divisional structure in place since March 2015 Purchasing Polymer purchasing synergies higher than originally estimated and realised ahead of schedule 109 Head office Icelandic and Norwegian head office functions closed Manufacturing footprint 8 business closure programmes in progress Production optimisation in several sites, exploiting best practices

10 Integration Update Promens integration: Large scale European consolidation Steady state cost synergies now expected to be 50m instead of 30m Corporate overhead synergy fully realised Additional manufacturing synergy opportunities identified Total exceptional charges reflect optimisation of manufacturing footprint Associated capital expenditure funded from existing budgets (65)m m 40m 50m (110)m 20m 25m Forecast 15/16 Forecast 16/17 Forecast 17/18 P&L charge Asset write downs Proceeds, working capital & asset sales Cash costs

11 Financial Review 111

12 Financial Review Key figures Sales ( m) Adjusted Operating Profit ( m) Adjusted basic EPS* % +36% p 15.8p 19.5p 20.8p +13% p 17.0p 17.0p 20.2p 22.9p 11/12 12/13 13/14 14/15 15/16 11/12 12/13 13/14 14/15 15/16 11/12 12/13 13/14 14/15 15/16 For continuing operations Adjusted = before restructuring costs, impairment losses, amortisation of acquired intangibles and pension administration expenses * Restated following the Rights Issue in 2015 H2 H1

13 Financial Review Profit bridge 19 (2) (2) (7) Gross FX translation Polymer 24 (4) (6) 51 Adjusted operating profit HY 2014/15 FX translation Polymer headwind Underlying operating profit HY 2014/15 Acquisitions Business improvement Inflation Adjusted operating profit HY 2015/16

14 Financial Review Key figures Net Cash from Operating Activities ( m) Return on net operating assets Dividend per share 22.7% % 21.6% 22.0% 9.1p 9.4p 9.8p 11.0p +18% % 3.7p 3.8p 4.0p 4.4p 5.2p 11/12 12/13 13/14 14/15 15/16 H2 H1 11/12 12/13 13/14 14/15 15/16 Historical periods restated to include acquisitions on a proforma basis. 11/12 12/13 13/14 14/15 15/16 * Restated following the Rights Issue in 2015

15 Financial Review Net debt bridge (431) (4) (53) (439) (12) (28) (16) (15) Net Debt Mar 2015 EBITDA Working Capital Investing Activities Interest & Tax Dividends Exceptional Items Other* Net Debt Sep 2015 * Includes discontinued operations, exchange rate movements, provision movements & movement on derivatives

16 Term USPP USPP RCF RPC Group Plc Financial Review Financial position KPIs SEP 2015 m 500 Renewal date main facilities Net debt ( m) Headroom ( m) Net debt to EBITDA ratio 1.95x

17 Outlook 117

18 Outlook Performance in the first half year encouraging Second half year started in line with management expectations Further trading improvements expected as polymer prices ease and Promens-related synergies are realised Vision 2020 strategy continues to generate further growth opportunities 118

19 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 Group undertakes no obligation to update these forward-looking statements and nothing in this presentation should be construed as a profit forecast. 119

20 Supplementary Material 120

21 Setting the scene RPC Group Plc Business Review Global reach 89 manufacturing sites in 24 countries and 18 design & engineering centres Where we manufacture Where we sell RPC sites Over 15,000 employees Largest European rigid plastic converter Industry leading innovator Listed on London Stock Exchange Member of the FTSE North America Europe Asia

22 Business Review Experienced international management team Executive Board Members Group Purchasing Business Improvement Corporate Development Pim Vervaat Simon Kesterton Darin Evans Frank Doorenbosch Tom Saunderson 9 years 13 years 20 years 27 years 6 years Chief Executive Group Finance Director Superfos Bramlage Promens Bebo Ace 122 René Valentin Alfons Böckmann Alistair Herd Michael Stegeman Jack Yeung 26 years 41 years 29 years 17 years 16 years Key focus areas Injection moulded product range for consumer and industrial markets Personal and healthcare, single serve beverage systems Blow moulded product range for consumer and industrial markets, speciality vehicles, rotational moulding Thermoforming product ranges for food market and single serve beverage systems Asian precision engineering growth platform including mould making Experienced international management team with over 200 years' experience in the plastic conversion industry

23 Financial Review Consolidated income statement million H1 2015/16 H1 2014/15 FY 2014/15 Revenue ,222.4 Operating profit adjusted Interest charge (7.3) (6.1) (12.8) Share of investment Profit before tax adjusted Tax on adjusted profit before tax (18.2) (13.2) (28.6) 123 Profit after tax adjusted Exceptional items restructuring and impairments (29.7) (16.1) (42.9) Amortisation of acquired intangibles, pension administration expense and employee benefit net finance expense (5.6) (3.9) (9.0) Tax credit on above items Profit after tax continuing operations Basic earnings per share (p) adjusted 22.9p 20.2p 41.0p

24 Financial Review New segmental analysis IFRS 8 basis million H1 2015/16 H1 2014/15 FY 2014/15 Revenue ,107.3 Packaging Non-packaging Operating profit Return on sales 9.8% 9.8% 10.0% Return on net operating assets* 23.7% 23.0% 23.5% Revenue Operating profit Return on sales 13.1% 18.0% 18.2% Return on net operating assets* 23.8% 19.4% 21.7% 124 * Restated for acquisitions made during FY 2014/15

25 Financial Review Geographical revenue and adjusted operating profit by origin million H1 2015/16 H1 2014/15 FY 2014/15 Revenue ,064.4 Europe Rest of World Operating profit Return on sales 9.5% 9.6% 9.7% Revenue Operating profit Return on sales 16.2% 16.1% 18.1% 125

26 Financial Review Consolidated balance sheet million SEP 2015 SEP 2014 MAR 2015 Property, plant and equipment Goodwill Other non-current assets Working capital Employee benefit liabilities (LT) (92.1) (88.9) (109.3) 126 Provisions, including deferred consideration (118.8) (79.2) (124.1) Other assets & liabilities (125.9) (77.5) (133.6) Assets held for sale Net debt (439.4) (318.0) (431.3) Equity shareholder funds

27 Financial Review Pension update million SEP 2015 SEP 2014 MAR 2015 Retirement benefit liability UK DBs Other retirement benefit obligations Termination benefits Other employee benefit liabilities Total employee benefit liability (LT)

28 Financial Review Exceptionals update million H1 2015/16 H1 2014/15 FY 2014/15 Fitter for the Future Acquisition related expenditure Integration costs Other exceptional items Tax credit on above items (4.5) (2.0) (6.0)