Pro-pac Packaging Ltd · ASX:PPG
Pro-pac Packaging — Investor Presentation (September 2022)
28 slides from Pro-pac Packaging's investor presentation, Sep 6, 2022
Slide 1: 2022 Full Year Results
2022 Full Year Results Jonathan Ling - Executive Chairman Darren Brown - Director & Interim CFO 5 September 2022
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: Bespoke flexible packaging solutions
• Bespoke flexible packaging solutions specifically tailored for the industrial, food and beverage, health and agriculture sectors • Stretch & shrink wrap, agriculture silage packaging, fresh produce bags, barrier and lidding films, industrial protective films • High valued added laminated and print
Slide 4: Strategy
Strategy • Pro-Pac’s strategy is to become a focused Australian and New Zealand manufacturer of Film and Flexible packaging with accompanying distribution of our manufactured and related products • On 24 June 2022 Pro-Pac successfully completed the sale of the Rigid packaging business for approximat
Slide 5: Safety Performance 2022
Safety Performance 2022 2021 2022 TRIFR 9.36 10.81 LTIFR 7.36 7.63 Safety Highlights • Slight increase in both measures in 2022 • Performance impacted by: o Establishment of new factory in Dandenong with many new employees o Labour shortages and absenteeism TRIFR: Total Recordable Injury Frequency R
Slide 6: Group Financial Results
Group Financial Results Converting COE, Dandenong, Victoria
Slide 7: Group Financial Performance
Group Financial Performance Group Financial Performance • Statutory profit after tax was a loss of $25.9 million A$ million FY22 FY21 Change and includes the operating profit of the Rigid Statutory results: Revenue 467.0 440.1 26.8 business (PBT $3.9 million) and the profit on the sale Profit after
Slide 8: Balance Sheet & Cashflow
Balance Sheet & Cashflow Balance Sheet Results • Focussed working capital reduction at year end, with Balance Sheet benefit of Rigid sale driving improvement year on A$ millions JUN-22 JUN-21 Change year Working capital* 71.0 81.4 (10.4) • Net debt reduced with sale of Rigid business Net bank debt*
Slide 9: Capital Management and Dividend
Capital Management • Pro-Pac’s net bank debt increased to $29.4m at 31 August 2022 (30 June 2022: $23.6m) • Negotiations with Pro-Pac’s existing banking group have resulted in covenant waivers for the remainder of FY23, on the condition that $5.0m will be repaid on its syndicated debt facility follo
Slide 10: Flexibles Packaging
Flexibles Packaging A$ millions FY22 FY21 Change Result Headlines Revenue 279.5 260.0 7.5% EBITT (0.7) 22.2 (103.0%) • Revenue increase of $19.4m driven by increased PBT* (2.7) 19.9 (113.4%) price of $9.2m and volume $10.2m • PBT decrease of $22.6m due to increased raw PBT margin* (1.0%) 7.7% (860 b
Slide 11: Industrial Specialty Packaging
Industrial Specialty Packaging A$ millions FY22 FY21 Change Result Headlines Revenue 124.4 112.2 11.0% EBIT 1.6 (0.4) (511.7%) • Revenue increase primarily due to Source and Sell PBT* 1.0 (1.3) (176.4%) increased revenue PBT margin* 0.8% (1.1%) 190 bps • Margin improvement due to more favourable pro
Slide 12: Rigid Packaging (Discontinued Operations)
Rigid Packaging (Discontinued Operations) • This business has been sold on 24 June 2022 A$ millions FY22 FY21 Change Revenue 63.0 68.0 (7.2%) EBIT 4.5 5.1 (12.3%) PBT* 3.9 4.5 (12.9%) PBT margin* 6.1% 6.5% (40 bps) • Non-IFRS measure as defined in the Appendices Page 22, Post AASB-16 Pro-Pac Packagi
Slide 13: Senior Management Changes
Senior Management Changes Jonathan Ling Executive Chairman Darren Brown Chief Financial Officer John Cerini Executive General Manager Flexibles Division
Slide 14: Key Growth Initiatives
Key Growth Initiatives • Improving performance in the newly established Printing and Conversion facilities in Dandenong, particularly in regard to machine and labour efficiency • Improving performance and effectiveness of our new ERP system in the sites where commissioning has occurred before rollin
Slide 15: Key priorities & outlook
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Slide 16: FY23 Outlook
FY23 Outlook • Our key priority is to return the Flexibles business back to the profitability it achieved in FY21 and to reduce our corporate overheads. • We expect that resin costs will continue to stabilise albeit at record high levels. We also expect that cost increases across most spend categori
Slide 17: Appendices
Appendices
Slide 18: 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 the Group for FY22 is shown in the table below: FY22 FY21 Pre- Adopt Post- Pre- Adopt Post- A$ m
Slide 19: 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 Continuing Operations for FY22 is shown in the table below: FY22 FY21 Pre- Adopt Post- Pre- Adop
Slide 20: Reconciliations
Reconciliations Reconciliation to EBIT* & EBITDA* for the Group FY22 FY21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Profit/(loss) before tax (17.6) (1.0) (18.6) 14.2 (3.0) 11.2 Add: significant items 15.6 - 15.6 7.6 - 7.6 Add: finance costs 4.0 3.3
Slide 21: Reconciliations
Reconciliations Reconciliation to EBIT* & EBITDA* for Continuing Operations FY22 FY21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Profit/(loss) before tax (40.8) (0.9) (41.8) 9.2 (2.1) 7.0 Add: significant items 34.9 - 34.9 7.3 - 7.3 Add: finance cos
Slide 22: Reconciliations
Reconciliations Reconciliation to Operating Cash Flow* for the Group FY22 FY21 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 (3.1) 9.7 6.5 18.9 8.5 27.4 Add: income tax paid 0.9 - 0.9 1.8 - 1.8 Add: significant
Slide 23: Reconciliations
Reconciliations Reconciliation to Operating Cash Flow* for Continuing Operations FY22 FY21 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 0.1 7.7 7.8 11.9 7.4 19.2 Add: income tax paid 0.9 - 0.9 1.8 - 1.8 Add: si
Slide 24: Reconciliations
Reconciliations Reconciliation to Gearing* for the Group JUN-22 JUN-21 A$ millions LTM EBITDA* (Post AASB 16) 23.6 45.5 Less: Adjustment for AASB 16 Leases (13.0) (12.3) LTM Adjusted EBITDA* (pre-AASB 16) 10.6 33.2 Borrowings 25.0 58.9 Less: cash and cash equivalents (1.3) (7.9) Net debt* 23.6 51.0
Slide 25: Reconciliations
Reconciliations Reconciliation of Significant Items* for the Group FY22 FY21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Rigid divestment gain, less associated costs (19.3) - (19.3) - - - Goodwill impairment 25.0 - 25.0 - - - Integration and restruct
Slide 26: Reconciliations
Reconciliations Reconciliation of Significant Items* for Continuing Operations FY22 FY21 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Goodwill impairment 25.0 - 25.0 - - - Integration and restructuring costs 7.3 - 7.3 3.8 - 3.8 Chester Hill closure pr
Slide 27: 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 FY21 means the full year (12 months) ended 30 June 2021 FY22 means the full year (12 months) ended 30 June 2022 Adjusted EBITDA means EBITDA before AASB 16 Leases for the l
Slide 28: For further information please contact
For further information please contact: Investors: Jonathan Ling Executive Chairman Email: investors@ppgaust.com.au Tel: +61 3 9474 4222 Darren Brown Director & Interim Chief Financial Officer Email: investors@ppgaust.com.au Tel: +61 3 9474 4222 Pinakin Lamination Operator
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