Slide 1: Bunzl 2021 Full Year Results
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Slide 2: Introduction
INTRODUCTION Frank van Zanten, Chief Executive Officer 2021 FULL YEAR RESULTS 2
Slide 3: 2021 Highlights
2021 HIGHLIGHTS Continued growth through the pandemic and further strategic progress 7.1%1 revenue growth y-o-y; 2.8%1 adjusted operating 17.1%1 growth profit2 growth y-o-y; vs. 2019 23.2%1 growth vs. 2019 102% cash conversion2 5.4% dividend per share supportive to 1.6x FY21 increase; 29th year of n
Slide 4: Consistent Long-Term Focus
CONSISTENT LONG-TERM FOCUS Strong track record of growth guided by a clear purpose and proven strategy We deliver essential business solutions around the world and create long term sustainable value for the benefit of all stakeholders Core values drive our value-added proposition Agile response to C
Slide 5: Financial Results
FINANCIAL RESULTS Richard Howes, Chief Financial Officer 2021 FULL YEAR RESULTS 5
Slide 6: Revenue Growth
REVENUE GROWTH Good underlying growth, supported by inflation Revenue growth1: 7.1% Revenue growth1 11,000 £m 7.1% 9.9% 4.0% (0.5%) 9,000 Underlying growth (6.3%) vs 20201 3.6% 10,285 9,599 9,562 Underlying 7,000 growth1 : 3.6% Underlying growth vs 20191 5,000 8.5% 1 Revenue FY 2020 Trading days Reb
Slide 7: Income Statement
INCOME STATEMENT Good profit growth despite expected margin headwinds from revenue mix REPORTED CONSTANT Adjusted operating £m 2021 2020 GROWTH EXCHANGE profit1 growth2 Revenue 10,285.1 10,111.1 1.7% 7.1% 2.8% Adjusted operating profit1 752.8 778.4 (3.3)% 2.8% Operating margin1 7.3% 7.7% compared to
Slide 8: Cash Flow
CASH FLOW Consistently strong cash conversion Cash conversion since 2004 Cash conversion1 £m 2021 2020 110% Operating cash flow1,3 741.6 776.8 102% 103% 103% 102% 102% 102% 101% Net interest (excluding lease liabilities) (34.8) (41.5) 99% 97% 97% 95% 95% 94% 93% 93% 93% 92% 92% Income tax paid (181.
Slide 9: Balance Sheet
BALANCE SHEET Substantial capacity for continued self-funded acquisitions DECEMBER DECEMBER Net debt : EBITDA1,2 over the last 10 years Net debt : EBITDA1,2 £m 2021 2020 Intangibles 2,766.8 2,441.9 1.6x 2.3x Right-of-use assets 448.3 453.4 TARGET 2.1x Property, plant and equipment 120.9 122.7 2.0x S
Slide 10: Dividend Growth Continues
DIVIDEND GROWTH CONTINUES Good dividend growth as dividend cover begins to normalise 29 years 57.0 Dividend per share of consecutive dividend increases CAGR 10% 4.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2021 FULL YEAR RESULTS 10
Slide 11: Financial Summary
FINANCIAL SUMMARY Another strong year that positions Bunzl for continued success – Strength and resilience of diversified business model demonstrated – Strong double digit profit growth 2021 vs 2019 – £508 million of committed acquisition spend largely funded by cash generated in 2021 – Net debt to
Slide 12: Business Review and Outlook
BUSINESS REVIEW AND OUTLOOK Frank van Zanten, Chief Executive Officer 2021 FULL YEAR RESULTS 12
Slide 13: Diversification Drives Resilience
DIVERSIFICATION DRIVES RESILIENCE Sector mix transitioning to normalisation 2021 revenue as % of Underlying revenue Underlying revenue Diversification has Group total 2021 vs. 2019 2021 vs. 2020 supported the business over a multi- Healthcare year period 33% Safety vs 32% in 2019 +10% vs 2019 (12)%
Slide 14: Covid-19 Related Sales
COVID-19 RELATED SALES Sales reduced as expected but remain substantially higher than 2019 Absolute Covid-19 related products1 revenue Covid-19 related products decline £m – Glove prices stabilised towards the 1,200 end of 2021 but will impact year-on- driven by fewer year comparison in the first ha
Slide 15: Recovery of the Base Business
RECOVERY OF THE BASE BUSINESS Base business recovery supported by inflation through 2021 Absolute base business1 revenue 2021 base business revenue broadly in- £m – Recovery led by North America and Latin America line with 2019, driven by inflation and 5,000 – Foodservice, Retail and Grocery drove r
Slide 16: Inflation
INFLATION Product cost Inflation managed to date with successful pass-through Product cost inflation Operating cost inflation Inflation strongly Covid-19 related products Wage inflation particularly strong in North supportive to revenue Glove prices stabilising; Current prices will America and UK &
Slide 17: North America / Continental Europe
NORTH AMERICA / CONTINENTAL EUROPE Inflation supported North America; Europe saw growth excluding larger Covid orders North America Continental Europe CONSTANT CONSTANT £m 2021 2020 REPORTED EXCHANGE UNDERLYING 2021 2020 REPORTED EXCHANGE UNDERLYING Revenue 6,144.7 5,843.8 5.1% 12.4% 9.2% 1,972.9 2,
Slide 18: UK & Ireland / Rest of the World
UK & IRELAND / REST OF THE WORLD Good second half recovery in UK & Ireland; strong growth in Latin America UK & Ireland Rest of the World CONSTANT CONSTANT £m 2021 2020 REPORTED EXCHANGE UNDERLYING 2021 2020 REPORTED EXCHANGE UNDERLYING Revenue 1,254.2 1,287.7 (2.6)% (2.4)% (6.2)% 913.3 852.3 7.2% 1
Slide 19: 2021 Acquisitions Snapshot
2021 ACQUISITIONS SNAPSHOT Second highest level of committed spend in Bunzl history Acquisitions in 2021 14 • • McCue Corporation acquired in October 2021 Distributor of safety and asset protection solutions, such as barriers, floor railings and bumpers, for warehouses and high footfall • • Workwear
Slide 20: Continued Acquisition Momentum
CONTINUED ACQUISITION MOMENTUM Almost £1 billion of committed spend over 2020 and 2021 Acquisitions over 2020 and Companies acquired in 2020 and 2021 2021 North America UK & Ireland Continental Europe Latin America 22 announced acquisitions with almost £1 billion of committed spend Acquisitions acro
Slide 21: Acquisitions a Key Component of Historic Success
ACQUISITIONS A KEY COMPONENT OF HISTORIC SUCCESS Momentum and headroom supportive to future growth Acquisition contribution to revenue Average components of revenue Committed acquisition spend over the growth since 2011 growth over last 10 years last 10 years (£m) c.2/3 616 Significant committed spe
Slide 22: Group Packaging Snapshot
GROUP PACKAGING SNAPSHOT Strong position to continue to support customers with the transition £0.2bn (2%) Only 2% of revenue generated by consumables facing regulation Consumables facing regulation – 84% of Group revenue attributable to non-packaging products £6.8bn (66%) or packaging products made
Slide 23: How We Are Supporting Customers
HOW WE ARE SUPPORTING CUSTOMERS Proactively supporting our customers with new legislation and targets Helping customers meet their plastics ambitions Providing value-added advice ahead of UK plastics and waste tax changes – In 2020, Empire, Canada’s second largest – In 2022 the UK is introducing a p
Slide 24: Progress Against Our Sustainability Commitments
PROGRESS AGAINST OUR SUSTAINABILITY COMMITMENTS Tailored solutions for a better world Better packaging solutions Responsible supply chain Investing in our people Focus on Climate Change Today: We are committed to Today: Our supply chain in Asia is Today: We are focused on Today: Our consolidation mo
Slide 25: Strength Through the Pandemic
STRENGTH THROUGH THE PANDEMIC Pandemic has highlighted the strength of Bunzl’s business model and strategy Financial performance 2021 vs. 2019 Continued strategic progress Attractive outlook • Revenue +17% higher1, with underlying • Almost £1bn of committed acquisition spend • Exited 2021 with net d
Slide 26: 2022 Outlook
2022 OUTLOOK Guidance upgraded compared to pre-close statement – Expect moderate revenue growth1 in 2022, driven by the impact of acquisitions completed in the last 12 months and supported by a slight increase in organic revenue – Continued recovery of the base business expected to be offset by the
Slide 27: Consistent and Proven Compounding Strategy
CONSISTENT AND PROVEN COMPOUNDING STRATEGY Strong total shareholder returns Proven track record Organic – Driven by economic activity Adjusted EPS1 (p) – +9% revenue CAGR growth – Bunzl's drivers include exposure since 2004 to growing sectors, winning new 162.5 customers, own brand mix and – 2.5% or
Slide 28: Q&A: Proven Compounding Growth Strategy
Q&A Revenue (£bn) Adjusted operating profit1 (£m) Proven compounding 10.3 753 growth strategy CAGR 2.4 169 c.9-10% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Adjusted EPS1 (p) Dividend per Share (p) 57.0 57.0 162.5 31.7 13.3 04 05 06 0
Slide 29: Appendices
Appendices 2021FULL 2021 FULLYEAR YEARRESULTS RESULTS 29
Slide 30: Appendix 1: Alternative Performance Measures
APPENDIX 1 Alternative performance measures This presentation includes various performance measures defined under International Financial Reporting Standards (‘IFRS’) as well as a number of alternative performance measures. The principal alternative performance measures used in this presentation are
Slide 31: Appendix 2: Statutory P&L
APPENDIX 2 Statutory P&L £m 2021 2020 Revenue 10,285.1 10,111.1 Adjusted operating profit1 752.8 778.4 Operating margin1 7.3% 7.7% Adjusting items (129.5) (159.9) Operating profit 623.3 618.5 Net finance expense (54.6) (62.8) Profit before income tax 568.7 555.7 Reported tax rate 22.1% 22.6% Profit
Slide 32: Appendix 3: Acquisition Growth
APPENDIX 3 Acquisition growth 183 Number of 04 7 05 7 06 9 07 8 08 7 09 2 10 9 11 10 12 13 13 11 14 17 15 22 16 14 17 15 18 6 19 3 20 9 21 14 acquisitions acquisitions Committed £375m acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 616 183 124 445 508 spend (£m) Annualised Average annu
Slide 33: Appendix 4: Revenue by Customer Markets
APPENDIX 4 Revenue by customer markets in 2021 Safety Foodservice Personal protection and safety equipment, including 15% 28% Non-food consumables, including food packaging, gloves, boots, hard hats, ear and eye protection and disposable tableware, guest amenities, catering other workwear, as well a
Slide 34: Appendix 5: Packaging Categorisations
APPENDIX 5 Packaging categorisations Packaging categories Description 1. Consumable products Plastic products most commonly being addressed by legislation in our facing regulation markets 2. Consumable products likely to Plastic products that have measures in place (driven by legislation or transiti
Slide 35: Disclaimer
DISCLAIMER This document has been prepared by Bunzl plc (the ‘Company’) solely for use at the presentation of the Company’s results announcement in respect of the period ended 31 December 2021. For the purposes of this disclaimer, “Presentation” shall mean this document, the oral presentation of the