RPC Group Plc 2014/15 Results

Transcription

1 RPC THE ESSENTIAL INGREDIENT RPC Group Plc June 2015

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

3 Business Review Vision 2020 strategy: Progress to date FOCUSED GROWTH Continuing focus on organic growth Selective consolidation in Europe Creating a meaningful presence outside Europe 4% like-for-like revenue increase in year* Ongoing innovation as evidenced by several awards Acquisition of: opromens (February 2015) opet Power (February 2015) oinnocan (May 2015) Acquisition of Ace (June 2014) providing Asian growth platform Expanding geographic footprint through Promens Further investment in US organic growth 103 *Existing group at constant exchange rates and polymer prices

4 Business Review Acquisition of PET Power Acquired February 2015, c. 37m sales FY15 Strengthen RPC s position in PET packaging Plug and play with minimal integration effort required Revenue split FY14 by market 29% 25% 21% 25% Cosmetics Food Pharmaceutical Other Revenue split FY14 by geography % 9% Mainland Europe United Kingdom Expanding geographical coverage of the M&H business model

5 Business Review Acquisition of Innocan Acquisition of Innocan: Acquired May 2015 Innovative and stackable PET containers for the industrial and food markets Sales c. 6m, fast growing business Located in Antwerp, selling into mainland Europe 105 Complements our existing market positions Industrials business unit already positioned for further growth and consolidation

6 Business Review Increasing global footprint following 2014/15 acquisitions Over 95 operations in 24 countries Over 15,000 employees Largest European rigid plastic converter Industry leading innovator Listed on London Stock Exchange Member of the FTSE 250 Where we manufacture Where we sell RPC sites Promens sites 106 North America Europe Asia

7 Business Review New divisional structure following Promens acquisition Executive Board Members Group Purchasing Business Improvement Corporate Development Pim Vervaat Simon Kesterton Darin Evans Frank Doorenbosch Tom Saunderson 8 years 12 years 19 years 26 years 5 years Chief Executive Group Finance Director Superfos Bramlage Promens Bebo Ace 107 René Valentin Alfons Böckmann Alistair Herd Thomas Wahlmeyer Jack Yeung 25 years 40 years 28 years 34 years 15 years Key focus areas Superfos Injection moulded product range for consumer and industrial markets Bramlage Personal and healthcare, single serve beverage systems Promens Blow moulded product range for consumer and industrial markets, speciality vehicles, rotational moulding Bebo Thermoforming product ranges for food market and single serve beverage systems Ace Asian precision engineering growth platform including mould making Experienced international management team with over 200 years' experience in the plastic conversion industry xx years experience in plastic conversion industry

8 Business Review Market Developments By market segment By production origin 429m 271m 206m 132m 132m 52m 320m 320m Food MARKET SEGMENT Non-Food ACTIVITY LEVELS Personal Care COMMENT Beverage Technical Components Healthcare Food Packaging Higher added values growth with barrier solutions as SuperLock Non-Food Packaging Generally flat with recovering sales in surface coatings Personal Care Improving our market position, supported through continued growth of M&H Beverage Continued growth in single serve beverage systems Technical Components Enhanced added value propositions in moulds and non-packaging markets Healthcare Good growth with more projects in the pipeline United Kingdom Germany 426m 59m Rest of Europe North America 97m 7m* Asia Africa *Pro-forma sales including JV 108

9 Business Review Polymer Price Development Development polymer price index PER TONNE 1,600 Capacity utilisation polymer industry TONNES (M) OPERATING RATE % 90 92% 1, % 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. Significant polymer pass through time lag gain in H2 reversing in Q1 of new financial year

10 Integration Update 110

11 Integration Update Promens integration: Large scale European consolidation New Divisional structure : Purchasing Early polymer purchasing synergies realised Head office 111 Duplication of corporate overhead removed Manufacturing footprint Consolidation of divisional overhead nearing completion Initial review of manufacturing footprint concluded Significantly increased cost synergies projected Currently 7 site closures envisaged of which 3 are in progress

12 Integration Update Promens integration: Large scale European consolidation Consolidating RPC GROUP m Sales* 1,510 11,888 FTEs Total 50 sites PROMENS 590 3,712 FTEs Total 41 sites * Companies as was sales 14/15 Operations Integration Objectives Enhanced strength in joint innovation capabilities Optimising of manufacturing footprint, both locations and technologies Access to newly added technologies and markets Building on wider talent pool for our organisation 112 Initial synergies with respect to corporate overhead and polymer purchasing realised Additional purchasing synergies pursued Further synergies through optimisation manufacturing footprint: - Site closures - Optimisation cost structure remaining sites Exceptional costs ( m) EBIT Benefits ( m) Total P&L charge Forecast 2015/16 Less Asset Write-downs Forecast 2017/18 Total Proceeds Working Capital and asset sales Associated Cash Impact Total (70) (25)

13 Financial Review 113

14 Financial Review Key figures Sales ( m) Adjusted Operating Profit ( m) Adjusted basic EPS* 1, p 1, , p 33.9p 32.8p 36.5p /11 11/12 12/13 13/14 14/15 10/11 11/12 12/13 13/14 14/15 10/11 11/12 12/13 13/14 14/15 For continuing operations Adjusted = before restructuring costs, impairment losses, amortisation of acquired intangibles and pension administration expenses * Restated following Rights Issues in 2011 and 2015

15 Financial Review Profit Bridge (12) (6) Adjusted Operating Profit Mar 14 FX translation headwinds Polymer Tailwind Amended Operating profit Mar 14 Contribution acquisitions Business Improvement Inflation Adjusted Operating Profit Mar 15

16 Financial Review Key figures Net Cash from Operating Activities ( m) Return on net operating assets Dividend per share % 22.6% 24.5% 26.1% 12.8p 13.2p 13.8p 15.4p % 10.2p 10/11 11/12 12/13 13/14 14/15 10/11 11/12 12/13 13/14 14/15 10/11 11/12 12/13 13/14 14/15 For continuing operations. 2014/15 prior to acquisitions Restated following Rights Issue in 2015

17 Financial Review Cash Flow Bridge Net Debt Mar 2014 EBITDA Working Capital Investing Exceptional Interest Issue of Activities Spend & Tax Dividends Acquisitions shares Other* Net Debt Mar 2015 (265) 188 (3) (95) (32) (29) (30) (431) (450) * Includes discontinued operations, exchange rate movements, provision movements, & movement on derivatives

18 Financial Review Financial Position KPIs MAR 2015 Renewal date main facilities Net debt ( m) Undrawn facilities ( m) 397 Net debt to EBITDA ratio 1.97x 300 m Term USPP RCF USPP

19 Outlook 119

20 Outlook Vision 2020 successfully progressed with further platforms for growth established in Asia, Europe and North America Integration of the Promens Group progressing well Continuing to explore further opportunities for growth Financial year started in line with management expectations, despite FX and Polymer price headwind 120

21 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. 121

22 Supplementary Material 122

23 Financial Review Consolidated income statement million 2014/ /14 Variance Revenue 1, , Operating profit adjusted Interest charge (12.8) (11.8) (1.0) Share of investment (0.1) Profit before tax adjusted Tax on adjusted profit before tax (28.6) (21.5) (7.1) 123 Profit after tax adjusted Exceptional items restructuring and impairments (42.9) (26.7) (16.2) Amortisation of acquired intangibles, pension administration expense and employee benefit net finance expense (9.0) (3.8) (5.2) Tax relief on above items Profit after tax reported Basic earnings per share (p) adjusted 41.0p 36.5p 4.5p Basic earnings per share (p) reported 20.8p 23.5p (2.7)p

24 Financial Review Segmental analysis IFRS 8 Basis million 2014/ /14 Variance Revenue Injection Moulding Thermoforming Blow Moulding Promens and PET Power Operating profit Return on sales 10.9% 9.9% 1.0% Return on net operating assets 23.9% 26.0% (2.1)% Revenue (12.4) Operating profit Return on sales 12.6% 10.5% 2.1% Return on net operating assets 39.9% 33.8% 6.1% Revenue Operating profit Return on sales 11.0% 8.1% 2.9% Return on net operating assets 27.7% 25.6% 2.1% Revenue 57.6 Operating profit 2.0 Return on sales 3.5% 124

25 Financial Review Consolidated balance sheet million MAR 2015 MAR 2014 Property, plant and equipment Goodwill Other non-current assets Working capital Employee benefit liabilities (LT) (109.3) (72.5) 125 Other assets & liabilities (257.7) (67.0) Assets held for sale (excluding debt) Net debt (including assets held for sale) (431.3) (265.2) Equity shareholder funds

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

27 Financial Review Exceptionals update million 2014/ /14 Fitter for the Future Acquisition related expenditure Integration costs Other exceptional items Tax relief on above items (6.0) (5.7)