Slide 1: Pro-Pac Packaging Limited Full-Year Results 2019
Pro-Pac Packaging Limited Full-Year Results 2019 28 August 2019 Managing Director & CEO Tim Welsh | CFO Rick Rostolis 0
Slide 2: Important Information
Important Information This Presentation contains the summary information about the current activities of Pro-Pac Packaging Limited and its controlled entities (PPG). It should be read in conjunction with PPG’s other periodic and continuous disclosure announcements lodged with the Australian Securiti
Slide 3: Full-Year Performance
FULL-YEAR PERFORMANCE PAu
Slide 4: FY19 Overview
FY19 Overview Financial Performance • Sales revenue of $485.8 million, up 30.8 % (pcp: $371.5 million) • EBITDA1 before significant items of $28.1 million, up 72.2 % (pcp: $16.3 million) • Statutory loss after tax of $151.3 million (pcp: $5.1 million loss) • Includes non-cash goodwill impairment o
Slide 5: Safety
Safety Improved safety training and reporting tools across Lost Time Injury Frequency Rates the business Independent safety audits conducted in H2 FY19 FY18 9.2 9.8 Additional health, safety and environment resources to be introduced in FY20 Renewed focus on improved safety culture Target
Slide 6: Financial Results Summary
Financial Results Summary FY19 FY19 FY18 FY18 % Change $A millions Reported Before significant Reported Before significant From FY18 to FY19 (before significant items) items1 Items Revenue 485.8 485.8 371.5 371.5 30.8 EBITDA/(Loss) (135.2) 28.1 4.6 16.3 72.2 Depreciation and amortisation (9.3) (9.3)
Slide 7: Flexibles Packaging
Flexibles Packaging Flexibles packaging primarily manufactures, sources and $A millions FY19 FY18 Change % distributes flexible packaging materials and related products and services Revenue1 271.1 150.2 80.5 FY19 sales revenue includes recent acquisitions: EBITDA2 18.8 5.6 236.6 • IPG – Incrementa
Slide 8: Industrial Packaging
Industrial Packaging Industrial packaging sources and distributes industrial $A millions FY19 FY18 Change % packaging materials and related products and services Revenue1 152.6 160.2 (4.7) FY19 EBITDA impacted by: EBITDA2 3.7 6.0 (39.0) • H2 decline in sales and margin; EBITDA margin 2.4% 3.7% (1.
Slide 9: Rigid Packaging
Rigid Packaging Rigid packaging manufactures, sources and distributes plastic $A millions FY19 FY18 Change% containers and closures and related products and services Revenue1 62.1 61.1 1.7 Increase in sales volume across key market segments EBITDA2 6.6 5.2 27.1 Operational improvements have assi
Slide 10: FY19 Significant Items
FY19 Significant Items Non-cash goodwill impairment charge: $A millions EBITDA • Carrying value of cash generating units (CGUs) review as part of the EBITDA /(Loss) reported (135.2) Company’s reporting cycle1 • Carrying value of goodwill in both the Industrial and Flexibles CGUs Significant items
Slide 11: Cash Management
Cash Management Cash Management Capital expenditure includes IT integration projects $A millions FY19 FY18 Reduction in capital expenditure driven by tighter control Operating cash flow 32.2 15.3 Total capital expenditure 6.2 13.5 of non-core items of plant Free cash flow 26.0 1.8 Second-half
Slide 12: Balance Sheet Metrics
Balance Sheet Metrics Balance Sheet Funding Key metrics within targeted levels $A millions FY19 FY18 Achieved short-term target to reduce gearing to below Net debt 82.9 101.3 3.0x by 30 June 2019 Working capital seasonality: Gearing1 2.8x 3.8x • Q1 FY20 agricultural sector build-up of inventor
Slide 13: Growth & Strategy
GROWTH & STRATEGY PAu
Slide 14: A Strong Platform for the Future
A Strong Platform for the Future aStrategic review to facilitate transformation of Company into a resilient and diverse business with the objective of becoming leader in flexible, industrial and rigid packaging Profit improvement plans (integration, scale optimisation, cost down/out) and working
Slide 15: Strategic Imperatives
Strategic Imperatives Product & Organic Margin Operational Service Sustainability Growth Expansion Excellence Innovation Conduct strategic review of Expand the number of qualified Lean and 5S principles to be Well-positioned to support local Leverage innovation capacity business portfolio
Slide 16: FY19 Acquisitions - Update
FY19 Acquisitions - Update PolyPak (Acquired July 2018) New Zealand specialist soft flexibles packaging manufacturer & distributor of high-quality polyethylene bags, film and tubes PolyPak holds a niche position in specific categories of the soft NZ flexibles packaging market, including custom p
Slide 17: Company Footprint
Company Footprint Australia & New Zealand Sites PPG has 26 sites across Australia and New Zealand1 1 Manufacturing 2 Distribution 1 Manufacturing 1 Distribution 1 Manufacturing 1 Distribution 4 Manufacturing 2 Distribution 7 Manufacturing 4 Distribution 2 Manufacturing ___________________ 116 manufa
Slide 18: Outlook
OUTLOOK PAu
Slide 19: FY20 Operational Priorities
FY20 Operational Priorities The Group is focused on the following “in-business” activities: Driving a strong safety culture throughout the organisation Expanding market share into higher growth and resilient segments of the packaging market through value-add products and solutions Operational
Slide 20: Outlook
Outlook FY19 EBITDA (before significant items) in line with internal expectations following 18 June 2019 trading update New senior executives (including recent appointment of CEO) to drive strategic, cultural and structural change to improve operating results in the medium-term Continued focus
Slide 21: Appendix
APPENDIX PAu
Slide 22: Reconciliation of Statutory Profit & Loss
Reconciliation of Statutory Profit & Loss $A millions FY19 FY18 Statutory profit /(loss) before income tax (152.6) (6.3) Add: Net finance costs 8.1. 5.0. EBIT (after significant items) (144.5) (1.3) Add: Significant items 163.3. 11.7. EBIT (before significant items) 18.8. 10.4. Add: Depreciation and
Slide 23: Reconciliation of Statutory Cash Flows
Reconciliation of Statutory Cash Flows $A millions FY19 FY18 Reported net cash flows from operating activities 15.8 2.2 Add: income tax paid 4.4 0.5 Add: Significant items (cash impact) 4.5 5.5 Add: Net finance costs paid 7.5 7.1 Operating cash flow 32.2 15.3 22
Slide 24: Gearing Reconciliation
Gearing Reconciliation $A millions FY19 FY18 EBITDA (before significant items) 28.1 16.3 Add: pre-acquisition EBITDA 1.32 8.71 Pro-forma EBITDA (before significant items) 29.4 25.0 Net debt 82.9 94.03 Gearing4 2.8x 3.8x ___________________ 1 Pre-acquisition EBITDA for IPG (4mths) 2 Pre-acquisition E
Slide 25: Definitions of Non-IFRS Financial Measures
Definitions of Non-IFRS Financial Measures Capex represents capital expenditure payments for property, plant and equipment EBITDA refers to EBITDA before significant items. EBITDA is defined as earnings before net finance costs, tax, depreciation and amortisation - refer to page 21 for a reconciliat