Pro-pac Packaging Ltd · ASX:PPG
Pro-pac Packaging — Investor Presentation (February 2022)
23 slides from Pro-pac Packaging's investor presentation, Feb 25, 2022
Slide 1: 2022 Half Year Results
25 February 2022 2022 Half Year Results Tim Welsh CEO & Managing Director Iona MacPherson CFO Darko Print Supervisor
Slide 2: Important Information
Important Information This Presentation contains the summary information about the current activities of Pro-Pac Packaging Limited and its Any forecasts or other forward-looking statements contained in this Presentation are subject to known and unknown controlled entities (Pro-Pac Packaging or the G
Slide 3: Our Zero Harm Focus
Our Zero Harm Focus Safety Update • TRIFR at 8.15 improved 13% (FY21 9.36) • LTIFR at 6.27 improved 15% (FY21 7.36) • We are making progress driving a culture of safety through leadership, systems, education, and compliance COVID-19 Update • COVID safe protocols and government directions continued
Slide 4: Delivering our strategy
Delivering our strategy • Achieved top line growth of 4% • Implemented price increases and freight surcharges in response to the rapid and significant inflation of input costs • Built contingency plans to buffer supply disruptions • Completed the closure of the Chester Hill plant • Growth investment
Slide 5: Group Financial Results
Group Financial Results Converting COE, Dandenong, Victoria
Slide 6: Group Financial Performance
Group Financial Performance Result Headlines A$ million 1H22 1H21 Change • Solid revenues of $244.7m (up $10.3m, 4.4% on pcp) delivered by stronger Statutory results: outcomes in Flexibles and Industrial Revenue 244.7 234.4 10.3 • There were a range of factors around continuity of operations and cos
Slide 7: Group Financial Performance
Group Financial Performance Result Headlines Structural changes • Acquisition of Supreme Packaging, offset predominantly by divestment of Integrated Machinery and closure of the Chester Hill, NSW manufacturing facility Price, volume and mix • Volumes were largely in line with pcp, after adjusting fo
Slide 8: Responses to Major Events
Responses to Major Events Pro-Pac successfully managed employee safety and executed responses around several major events Global Supply Chain Disruptions Responses Container freight and resin supply led to significant and rapid inflation • A freight surcharge was implemented progressively from o Res
Slide 9: Responses to Major Events
Responses to Major Events Pro-Pac successfully managed employee safety and executed responses around several major events Site disruptions and labour shortages Responses • The following factors contributed to production disruptions: • The health and wellbeing of our staff was central to numerous o E
Slide 10: Balance Sheet & Cashflow
Balance Sheet & Cashflow Balance Sheet Results • The balance sheet has supported significant investment in new technology over the last 3 years, which is starting to deliver growth Balance Sheet • Total facilities of $117.5m ($84.5m drawn at 31 December). Existing A$ millions DEC-21 JUN-21 Change sy
Slide 11: Flexibles Packaging
Flexibles Packaging Result Headlines A$ millions 1H22 1H21 Change • Strong pipeline of revenue demand to support 2H22 earnings Revenue 144.9 135.7 6.8% • Revenue grew by $9.2m, $4.0m of which was due to the net impact of the Supreme acquisition and the Integrated Machinery divestment PBT* 2.9 9.7
Slide 12: Industrial Specialty Packaging
Industrial Specialty Packaging Result Headlines A$ millions 1H22 1H21 Change • The ISP business has continued its growth trajectory with increased revenue, up 9% at $68.0m (1H21 $62.6m) and significantly improved Revenue 68.0 62.6 8.7% PBT, up 117% at $2.4m (1H21 $1.1m) PBT* 2.4 1.1 117.0% • ISP co
Slide 13: Rigid Packaging
Rigid Packaging Result Headlines • The Rigid business has continued to adjust well to the new COVID- A$ millions 1H22 1H21 Change normal, re-basing production levels from peak COVID-19 demand Revenue 31.8 36.1 (12.0%) and performing largely in line with expectation PBT* 1.2 3.0 (60.5%) • Revenue d
Slide 14: Outlook
Outlook
Slide 15: FY22 Outlook
FY22 Outlook • Strong demand arising from onshoring and diversifying risk from single supplier reliance • Strong pipeline of demand to support 2H22 performance • The installation of additional capacity in printing and laminating is scheduled for 2H22 and will ease capacity constraints • Strategies a
Slide 16: Appendices
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Slide 17: Adopting AASB 16 Leases
Adopting AASB 16 Leases AASB 16 Leases became effective for Pro-Pac Packaging on 1 July 2019, requiring operating lease arrangements to be recognised on balance sheet The impact on the profit or loss for 1H22 is shown in the table below: 1H22 1H21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 1
Slide 18: Reconciliations
Reconciliations Reconciliation to EBIT* & EBITDA* 1H22 1H21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Profit/(loss) before tax 0.8 (0.6) 0.2 10.3 (1.4) 8.8 Add: significant items 4.0 - 4.0 2.8 - 2.8 Add: finance costs 1.7 1.7 3.4 1.6 2.0 3.6 Less:
Slide 19: Reconciliations
Reconciliations Reconciliation to Operating Cash Flow* 1H22 1H21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Net cash flows from operating activities (19.8) 4.8 (15.0) 4.2 4.6 8.9 Add: income tax paid 0.9 - 0.9 1.2 - 1.2 Add: significant items paid,
Slide 20: Reconciliations
Reconciliations Reconciliation to Gearing* DEC-21 JUN-21 A$ millions LTM EBITDA* (Post AASB 16) 37.3 45.5 Less: Adjustment for AASB 16 Leases (12.3) (12.4) LTM Adjusted EBITDA* (pre-AASB 16) 25.0 33.1 Borrowings 83.7 58.9 Less: cash and cash equivalents (1.7) (7.9) Net debt* 82.1 51.0 Gearing* 3.3x
Slide 21: Reconciliations
Reconciliations Reconciliation of Significant Items* 1H22 1H21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Site consolidation and exit costs 1.2 - 1.2 0.9 - 0.9 Acquisition and integration costs 2.7 - 2.7 0.4 - 0.4 Business interruption costs 0.1 - 0
Slide 22: Definitions of Non-IFRS Financial Measures
Definitions of Non-IFRS Financial Measures Unless otherwise stated in this presentation, all metrics are disclosed post-AASB 16 1H21 means the half-year ended 31 December 2020 1H22 means the half-year ended 31 December 2021 Adjusted EBITDA means EBITDA before AASB 16 Leases for the last 12-months, a
Slide 23: For further information please contact
For further information please contact: Investors: Tim Welsh Chief Executive Officer & Managing Director Email: investors@ppgaust.com.au Tel: +61 3 9474 4222 Iona MacPherson Chief Financial Officer Email: investors@ppgaust.com.au Tel: +61 3 9474 4222 Media: Hayley Morris Morris Brown Communications
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