RPC GROUP PLC 2017 / 18 RESULTS

Transcription

1 RPC THE ESSENTIAL INGREDIENT RPC GROUP PLC 2017 / 18 RESULTS Supplemental Information RPC Group Plc. All Rights Reserved.

2 Key figures Sales ( m) +36% Adjusted Operating Profit ( m) +38% Adjusted basic EPS* +16% 1,047 1,222 1,642 2,747 3, p 35.4p 40.4p 62.2p 72.0p Free cash flow ( m) Return on net operating assets # -4% +150bps Dividend per share* +17% % 25.7% 22.3% 22.7% 21.7% 24.0p 28.0p 11.9p 13.3p 16.0p 2 Adjusted = before restructuring costs, impairment charges, amortisation of acquired intangibles and other non-underlying items, net of tax where relevant * Restated following rights issues in 2015, 2016 and 2017 # Includes acquisitions completed in 2016 and comparatives restated on a pro forma basis

3 Adjusted earnings reconciliation Earnings ( m) Adjusted earnings attributable to equity shareholders & EPS p Acquisition and integration costs (27.7) Deferred consideration on earn-outs 11.5 (6.7)p 2.8p Amortisation acquired intangibles (50.7) Other adjusting items (5.9) Total adjusting taxation 29.9 Total adjusting items (42.9) (12.3)p (1.4)p 7.2p (10.4)p 3 Basic earnings attributable to equity shareholders & EPS p

4 Segmental analysis million 2017 / / 17 Variance Revenue % At constant exchange Packaging 3,159 2, Non-packaging Total 3,748 2, Adjusted operating profit Packaging Non-packaging Total Return on sales Packaging 11.0% 10.4% 60bps 60bps Non-packaging 12.9% 16.2% (330)bps (330)bps Total 11.3% 11.2% 10bps 10bps 4

5 Geographic analysis million 2017 / / 17 Variance Revenue % At constant exchange Europe 2,917 2, Rest of the World Total 3,748 2, Adjusted operating profit Europe Rest of the World Total Return on sales Europe 11.1% 10.4% 70bps 60bps Rest of the World 12.3% 16.4% (410)bps (420)bps Total 11.3% 11.2% 10bps 10bps 5

6 Consolidated balance sheet Originally issued Hindsight adjustment Revised million MAR 2018 MAR 2017 MAR 2017 MAR 2017 Property, plant and equipment 1, ,265.5 (0.6) 1,264.9 Goodwill 1, , ,578.7 Other non-current assets (1.5) Working capital (7.5) Employee benefit liabilities (LT) (196.9) (256.0) (-) (256.0) Provisions, including contingent consideration (90.6) (163.8) 3.2 (160.6) Other assets & liabilities (276.7) (312.0) 2.8 (309.2) Assets held for sale Net debt (1,139.2) (1,049.1) (-) (1,049.1) Equity shareholder funds 1, , ,

7 Employee benefits million MAR 2018 MAR 2017 Retirement benefit liability UK DBs Other retirement benefit obligations Termination benefits Other employee benefit liabilities Total employee benefit liability Reduction due to better asset returns and experience gains Key assumptions: FY 2017/18 FY 2016/17 Discount rate 2.6% 2.6% Inflation rate 2.0% 2.1% 7

8 Statutory cash flow million 2017 / / / / 15 Adjusted EBITDA Movement in working capital (22) 29 - (3) Payment in respect of nonunderlying items Movement in provisions and other liabilities Cash generated from operations (36) (81) (50) (40) (48) (56) (19) (23) Net capex (242) (176) (101) (95) Cash flow Statutory operating profit Statutory conversion* 68% 82% 85% 33% 8 Relates to continuing operations only * Ratio of cash flow to statutory operating profit

9 Alternative performance measures 9 In the reporting of financial information, the directors have adopted various Alternative Performance Measures (APMs), previously termed Non-GAAP measures as those not defined or specified under International Financial Reporting Standards (IFRS). These measures are not defined by IFRS and therefore may not be directly comparable with other companies APMs, including those in the Group s industry. The principal alternative performance measures used in this presentation are: adjusted operating profit; adjusted earnings before interest, tax, depreciation and amortisation ( EBITDA ); return on sales; adjusted profit before tax; adjusted basic earnings per share; organic sales growth; free cash flow; adjusted operating cash conversion; return on net operating assets; return on capital employed; working capital as a % of sales; net debt; and net debt to EBITDA. These measures exclude the charge for customer relationships amortisation, acquisition related items and any associated tax, where relevant. Acquisition related items comprise deferred consideration payments relating to the retention of former owners of businesses acquired, transaction costs and expenses and adjustments to previously estimated earn outs. Customer relationships amortisation, acquisition related items and any associated tax are items which are not taken into account by management when assessing the results of the business as they are considered by management to form part of the total spend on acquisitions or are non-cash items resulting from acquisitions and therefore do not relate to the underlying operating performance and distort comparability between businesses and reporting periods. Accordingly, these items are removed in calculating the profitability measures by which management assess the performance of the Group. Many of the measures include proforma adjustments for both acquisitions and disposals to allow comparability between accounting periods. Other non-gaap measures are based on or derived from the non-gaap measures noted above. All alternative performance measures in this presentation have been calculated consistently with the methods applied and disclosed in the 2016/17 Annual Report.