Slide 1: Compass strategy
Compass strategy Investor Presentation: September 2020
Slide 2: Agenda
Agenda Why are we changing? Strategic aim Organise to deliver First view of the divisions Benefits of central services Timetable and next steps Closing message Q&A 1 McBride plc Investor Presentation: September 2020
Slide 3: Introduction
Introduction Our update today is on the outcome of our strategy review so far... What this presentation will cover What this presentation will not cover • Why we are changing • A detailed diagnostic about the past • Headline aims and vision • Full historic financials by division • Outline of the Gro
Slide 4: Why are we changing?
Why are we changing? 3 McBride plc Investor Presentation: September 2020
Slide 5: Business performance in recent years has not met our ambitions
Business performance in recent years has not met our ambitions We have made good progress Revenue growth Business simplification Margins Plant investments Cost efficiency Market share gains Supply performance Financial performance vs. peers Responsiveness Organisational development Where we need to
Slide 6: Outcome of our market review
Outcome of our market review Overall European Market(1) of £14bn, the small total Private Label ('PL') share is expected to grow Total Market(1) Total Market(1) outlook 2019, Brand & PL PL share 5 main countries, 2019 vs. 2024 in RSV(2): (£bn) (%) RSV(2) in £bn +2% pa UK: 2.8 20 Brands Value PL Fran
Slide 7: Outcome of our market review
Outcome of our market review Clarity on growth options and targets Where we can win... ...and how we benchmark our industry Product categories Share gain Market shares Channel options Margins Geography Cost efficiency 6 McBride plc Investor Presentation: September 2020
Slide 8: Strategic aim
Strategic aim 7 McBride plc Investor Presentation: September 2020
Slide 9: Grow revenues to €1 billion in the next 5 years
Our 5 year aim and vision Grow revenues to €1 billion in the next 5 years through focused divisional strategies Overall top line growth Profitability increase Shareholder value 8 McBride plc Investor Presentation: September 2020
Slide 10: Compass strategy
Compass strategy Objectives of our change programme... Clarify our purpose, Re-structure our Develop divisional vision & values organisation strategies Group Central Divisions services 9 McBride plc Investor Presentation: September 2020
Slide 11: Our new strategy direction
Our new strategy direction Focused growth, backed by more effective execution and our strong identity Ch e rs a m nn to F e ls Cus de ting Po ls fo er rt a lio O p mo Focused growth Dep e E ins s en ur st & c rg SG da lt I E Ma o Cu bilit y U se ed Al y ne ca of ilit ig st d Tr u pita l Ag Proud of
Slide 12: Organisation benefits
Divisional structure Our new organisational benefits... Accountability Focus Empowered teams will have greater Deliver long-term performance end-to-end accountability and through separate and focused ownership of business decisions divisional strategies Specialism Relationships Better alignment with
Slide 13: Organise to deliver
Organise to deliver 12 McBride plc Investor Presentation: September 2020
Slide 14: Overview of the divisions
Overview of the divisions Our separately managed divisions will mainly follow product technologies Liquids Unit Dosing Powders Aerosols Asia Pacific 13 McBride plc Investor Presentation: September 2020
Slide 15: The McBride Group viewed by division
The McBride Group viewed by division Focused divisional strategies to improve individual and portfolio performance Group revenues by division Profitability by division 2020 in £m Comparison with Group average in EBITA % Liquids 384 Below average Unit Dosing 183 Above average Powders 78 Below average
Slide 16: First view of the divisions
First view of the divisions 15 McBride plc Investor Presentation: September 2020
Slide 17: Liquids division at a glance
Liquids Liquids division at a glance Liquids generates £384m revenue p.a. in a total European market, including branded, of £10bn(1) Source: OC&C, (1) RSV. McBride 2020. Revenue split Manufacturing sites Market fragmentation % of total Locations No. suppliers UK FR DE IT ES Benelux Other (80% of PL
Slide 18: First view of the Liquids division
Liquids First view of the Liquids division Strategically located and well invested plants, deep technology skills, #1 or #2 in main markets Market characteristics Operational characteristics McBride characteristics Barriers to entry Materials cost; Low to no growth generally low scale advantage Cost
Slide 19: Unit Dosing division at a glance
Unit Dosing Unit Dosing division at a glance Unit Dosing generates £183m revenue p.a. in a total European market, including branded, of over £2bn(1) Source: OC&C, (1) RSV. McBride 2020. Revenue split Manufacturing sites Market fragmentation % of total Locations No. suppliers UK FR DE IT ES Other (80
Slide 20: First view of the Unit Dosing division
Unit Dosing First view of the Unit Dosing division A dynamic, high growth market, where McBride has established a strong position through well invested factories and leading technical skills Market characteristics Operational characteristics McBride characteristics Growth potential, regional Strong
Slide 21: Powders division at a glance
Powders Powders division at a glance Powders generates £78m revenue p.a. in a total European market, including branded, of £1bn(1) Source: OC&C, (1) RSV. McBride 2020. Revenue split Manufacturing sites Market fragmentation % of total Locations No. suppliers UK FR DE IT ES Benelux Other (80% of PL ma
Slide 22: First view of the Powders division
Powders First view of the Powders division Strong heritage, operations now in two locations, mix of retail and contract customers Market characteristics Operational characteristics McBride characteristics Declining market, Private Few new entrants Location costs Label less than brands Industry over-
Slide 23: Aerosols division at a glance
Aerosols Aerosols division at a glance Aerosols generates £35m revenue p.a. with its current focus on the French market and new use ideas Revenue split Market Operational McBride % of total characteristics characteristics characteristics FR UK DE ES Other Geography Manufacturing Innovation Market fo
Slide 24: Asia Pacific division at a glance
Asia Pacific Asia Pacific division at a glance Asia Pacific generates £26m revenue p.a. and is a high growth region for personal care and household Revenue split Market Operational McBride % of total characteristics characteristics characteristics AUS MAL VTN PHL/THA HK SG Other Geography Fragmented
Slide 25: Certain functions will remain at Group level
Certain functions will remain at Group level How does McBride add value to the divisions? Purchasing Supply chain Finance, IT, HR Other Financial resources for Material cost advantage Best practice sharing Group order to cash value accretive M&A Access to Scale in Corporate finance Legal & leading s
Slide 26: Wrap up
Wrap up 25 McBride plc Investor Presentation: September 2020
Slide 27: Timetable & next steps
Timetable & next steps We intend to launch the new structures on January 1st, 2021 2020 2021 Market study High-level organisation design Detailed organisation design Divisional strategy options Detailed divisional strategies & plans Systems & reporting Group view Key: Completed Investor update, Laun
Slide 28: Closing message
Closing message The key messages in summary Phase 1: New divisional Clear ambition divisional Journey well Investor structure for based on strategy advanced, Day – meet accountability, latest market options, go live the teams, focus & intelligence externally January 2021 February 2021 specialism val
Slide 29: Q&A
Q&A 28 McBride plc Investor Presentation: September 2020