Bowler Metcalf Limited · JSE:BCF
Bowler Metcalf — FY2021 Earnings Presentation
23 slides from Bowler Metcalf's earnings presentation, June 2021
Slide 1: Final Results Presentation June 2021
| BOWLER METCALF LIMITED Final Results Presentation June 2021
Slide 2: Welcome!
| BOWLER METCALF LIMITED Final Results Presentation June 2021 Welcome!
Slide 3: Agenda
Season of Transformation Group Results, Cash Flow and Dividends Results & Overview Bowler Packaging Bowler Properties The Road Ahead Questions
Slide 4: Board and leadership changes
Board of Director changes Packaging Leadership changes Packaging Operations changes
Slide 5: Group results FY'21 vs FY'20
FY’21 FY’20 HEPS (cents) 127,31 112,75 Increase of 13%...positive contribution from share buy-backs Headline Earnings (R’m) R91,5 R83,7 Increase of 9% Attributable Profits (R’m) R91,5 R82,4 Increase of 11% - Packaging R67,1 R51,6 - Properties R17,0 R16,1 - Holdings R10,5 R17,5 - Eliminations R3,1 R2
Slide 6: Cash flow FY'21
R150 R11.00 R400 R112.30 R139.30 R100 R300 R200 R381.60 R50 R248.20 R100 R0 R0 -R1.70 -R3.50 -R8.40 -R100 -R50 -R39.80 -R200 -R75.70 -R100 -R300 Net Profit + Working Dividends & Capex PP&E Lease Net Cash Flow Total Cash & Total Cash & Non-Cash Add Capital Treasury Share Repayments Funds 2021 Funds 2
Slide 7: Capital expenditure breakdown
Investment Properties, R3.40 Packaging, R37.30 Operational Properties (Warehousing), R35.00
Slide 8: Ordinary Dividend cps
60.00 50.00 Ordinary Dividend cps 40.00 32.00 22.70 21.54 29.50 30.00 25.00 20.00 10.00 19.32 20.48 19.40 15.00 17.00 - June-17 June-18 June-19 June-20 June-21 Final Dividend 22.7 21.54 25 29.5 32 Interim Dividend 19.32 20.48 15 17 19.4 11% increase in ordinary dividend – highest dividend yet Tr
Slide 9: Bowler Packaging Results and Overview
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Slide 10: Packaging Revenue
R700 12 Broad base re-set of activity levels to FY’17, R650 adjusted for GDP growth R629.4 10 R600 8 Activity Levels R575.87 R572.00 Revenue R552.79 R550 R536.58 6 R500 4 R450 2 R400 0 June-17 June-18 June-19 June-20 June-21 Inflation Adjusted Revenue Actual Revenue GDP Adjusted Activity Levels
Slide 11: Packaging Revenue drivers
R700 12 Good volume growth year-on-year mainly attributable R650 R629.4 10 to: R600 8 Customer centric and reliable performance from an agile situational (VUCA) management, despite Activity Levels R575.87 R572.00 Revenue R552.79 COVID impactful 3rd wave R550 R536.58 6 R500 4 Market relevant pr
Slide 12: Packaging operating profits
R’m FY’21 FY’20 Operating Profits R91,9 R71,3 Increase of 29% Operating Profit % of Revenue 14,6% 12,8% Low base for FY’20 Margins flat; but raw material double digit % increase in FY’21 Q4 will be felt in FY’22 Benefitted from economies of scale; but capacity ‘step change’ spend in FY’21 will
Slide 13: Laying foundations for the future
Lay foundations for the future - evidenced in: Transformation of Operations management and focus; Broadening of senior leadership base; and Diversification of Customer, Market and Product base
Slide 14: BBBEE and sustainability
BBBEE compliance level 8 status likely R1,7m investment in Enterprise Development / Supplier Development R1m in support of Social Economic Development Sustainability / environmental empathy Roll on ball project – ‘Product Lifecycle Assessment’ case study 3MW solar project (discussed belo
Slide 15: Packaging capex plan
Information Systems, R2.10 Moulds, R10.00 New Technology, R7.00 Automation & Other, R1.50 Capacity Expansion, R16.70
Slide 16: Bowler Properties Results and Overview
Bowler Properties Results and Overview SS BOWLER METCALF LIMITED
Slide 17: Properties results and projects
R’m FY’21 FY’20 Attributable Profits R17,0 R16,1 Increase of 6% Epping – complete Flow and compliance upgrade of R3,4m complete and lease secured Philippi – completed Sept’21 5800 m2 warehouse extension completed under budget, ahead of schedule Existing facility upgrade Capex of R35m (ca
Slide 18: The Road Ahead
= BOWLER METCALF LIMITED The Road Ahead....
Slide 19: Risks: the perfect storm
Politics, factional priorities, unions, collective bargaining, elections - distraction noises par excellence Can this destructive loop break out? How and when ? Covid, short / long, PTS, socio economic fallouts? PRO, EPR and circular industry wrangling's and positioning, levies and collaborati
Slide 20: We focus to
We focus to: Expand base for next 3 years Keep Noise out of Operations to enable focus Drive Product Diversification within customer base Provide Agility through Information systems and Bowler 4.0 Transform the Organization into 21st century relevance
Slide 21: Capital spend and share buy back
Spend on Property, Operations, Projects and Opportunities Capex (R 135m earmarked) Capital commitments from FY’21 (R35m) Packaging segment capex (R25m) Opportunities for H1 FY’22 progress Possible new business line investment (R40m) Solar plant 3MW capabilities (R35-40m) 3 x new instal
Slide 22: Questions?
= BOWLER METCALF LIMITED Questions?
Slide 23: Thank You
= BOWLER METCALF LIMITED Thank You