Slide 1: Pro-Pac Packaging Limited Half-year Results 2021
Pro-Pac Packaging Limited Half-year Results 2021 Tim Welsh CEO & Managing Director Iona MacPherson CFO 25 February 2021
Slide 2: Important Information
1 Pro-Pac Packaging Limited: Half-Year Results Important Information This Presentation contains the summary information about the current activities of Pro-Pac Packaging Any forecasts or other forward-looking statements contained in this Presentation are subject to known Limited and its controlled e
Slide 3: About Pro-Pac Packaging
2 Pro-Pac Packaging Limited: Half-Year Results About Pro-Pac Packaging Pro-Pac Packaging is an innovative Flexibles, Industrial and Rigid packaging company with a diversified distribution and manufacturing network throughout Australia and New Zealand Flexibles Industrial Rigid • Manufacturing and di
Slide 4: 1H21 Results & Highlights
3 Pro-Pac Packaging Limited: Half-Year Results 1H21 Results & Highlights 1H21 has seen management drive considerable improvement in key operating & financial metrics, with investment to deliver further improvement and future growth Zero Harm Journey Underlying Profit Growth Statutory Profit Stable P
Slide 5: A Zero Harm Focus
4 Pro-Pac Packaging Limited: Half-Year Results A Zero Harm Focus TRIFR at 10.3 reduced by 29% FY20 COVID-19 Impacts Targeting Zero Harm • Strict protocols continue to protect the safety, health & wellbeing of our Driving a culture of safety through leadership, people in Australia, New Zealand and Ma
Slide 6: Financial Results Summary
5 Pro-Pac Packaging Limited: Half-Year Results Financial Results Summary Continual improvement in profitability delivered (before significant items), planned increase in working capital Post AASB-16 Pre AASB-16 1H21 Review (post AASB 16) A$ million 1H21 1H20 Change 1H21 1H20 Change • Revenue of $234
Slide 7: Disciplined Cash Flow Management
6 Pro-Pac Packaging Limited: Half-Year Results Disciplined Cash Flow Management A disciplined focus on cash flow management continues Cash Management 1H21 Review (post AASB 16) A$ millions 1H21 1H20 Change Embedded cash management discipline delivered: Operating cash flow* 16.5 17.3 (0.8) • 65.1% op
Slide 8: Improving the Balance Sheet
7 Pro-Pac Packaging Limited: Half-Year Results Improving the Balance Sheet Our capital management priorities are to maintain a strong balance sheet, and provide financial flexibility for growth and shareholder returns Balance Sheet 1H21 Review A$ millions DEC-20 JUN-20 Change Strong balance sheet: W
Slide 9: Flexibles Packaging
8 Pro-Pac Packaging Limited: Half-Year Results Flexibles Packaging Manufacturing and distribution of bespoke flexible packaging solutions tailored for the industrial, food and beverage, health and agriculture sectors throughout Australia and New Zealand 1H21 Review (post AASB 16) • The Flexibles bus
Slide 10: Industrial Packaging
9 Pro-Pac Packaging Limited: Half-Year Results Industrial Packaging A one stop shop for primary, secondary and tertiary packaging with deep expertise in food, beverage, agriculture, retail and health sectors 1H21 Review (post AASB 16) A$ millions 1H21 1H20 Change • The Industrial business has perfor
Slide 11: Rigid Packaging
10 Pro-Pac Packaging Limited: Half-Year Results Rigid Packaging A solution-oriented business that focusses on partnering with the small to medium customers seeking technical and business support with tailored, personalised product and supply chain services 1H21 Review (post AASB 16) A$ millions 1H21
Slide 12: Transformational Projects
11 Pro-Pac Packaging Limited: Half-Year Results Transformational Projects Strategic projects initiated to optimise operational footprint, increase manufacturing capability & drive efficiency in operations Chester Hill Transition (announced 27 May 2020) ERP replacement project • Manufacturing at Ches
Slide 13: Supreme Packaging Acquisition
12 Pro-Pac Packaging Limited: Half-Year Results Supreme Packaging Acquisition Supreme is a flexible packaging business that services markets in core verticals of food, beverage and produce • Consistent with Pro-Pac’s strategy of growth through earnings accretive acquisitions in existing and adjacent
Slide 14: Outlook
13 Pro-Pac Packaging Limited: Full Year Results Outlook
Slide 15: FY21 Outlook
14 Pro-Pac Packaging Limited: Half-Year Results FY21 Outlook Subject to macroeconomic and COVID-19 conditions remaining stable, and no major disruptions to Pro-Pac‘s supply chain, we continue to expect a full year PBT* (before significant items) above the prior year. * Non-IFRS measure as defined in
Slide 16: Appendices
15 Pro-Pac Packaging Limited: Half-Year Results Appendices
Slide 17: Adopting AASB 16 Leases
16 Pro-Pac Packaging Limited: Half-Year Results 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 1H21 is shown in the table below: 1H21 1H20 Pre-
Slide 18: Reconciliations
17 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to EBIT* & EBITDA* 1H21 1H20 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Profit/(loss) before tax 10.3 (1.5) 8.8 10.6 (1.8) 8.8 Add: significant items 2.8 - 2.8 - - - Add:
Slide 19: Reconciliations
18 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to Operating Cash Flow* 1H21 1H20 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 4.3 4.6 8.9 7.1 3.8 11.1 Add: income tax paid 1.2 -
Slide 20: Reconciliations
19 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to Gearing* DEC-20 JUN-20 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 EBITDA* 33.2 13.6 46.8 32.4 14.0 46.4 Add: unconsolidated LTM EBITDA from acquisitions - - - - - - LT
Slide 21: Reconciliations
20 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation of Significant Items* 1H21 1H20 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 0.9 - 0.9 - - - Acquisition and integration costs 0.4 - 0.4 1
Slide 22: Definitions of Non-IFRS Financial Measures
21 Pro-Pac Packaging Limited: Half-Year Results Definitions of Non-IFRS Financial Measures Unless otherwise stated in this presentation, all metrics are disclosed post-AASB 16 1H20 means the half-year ended 31 December 2019 1H21 means the half-year ended 31 December 2020 Adjusted EBITDA means EBITDA