Slide 1: 112th Annual General Meeting
MACFARLANE GROUP PLC 112th Annual General Meeting 10th May 2011
Slide 2: CEO Presentation
MACFARLANE GROUP PLC CEO Presentation Annual General Meeting 10th May 2011
Slide 3: 2010 Performance, Strategic Development, Outlook, Conclusions
2010 Performance Strategic Development Outlook Conclusions
Slide 4: 2010 Market Conditions
2010 Market Conditions UK demand remained weak following the difficulties of the UK economy in 2009 Some demand recovery in certain sectors • Automotive • Aerospace • Retail-related (H2) Dramatic increases in raw materials prices • 5 increases in paper pricing (up 33%) * • 2 increases in polymer bas
Slide 5: Raw Material Prices / Tonne
Ra w Ma teria l Prices / Tonne £ 1,20 0 £450 £ 1,15 0 £425 £ 1,10 0 £400 £ 1,05 0 £375 £ 1,00 0 £350 £95 0 £325 £90 0 £300 £85 0 £275 £80 0 £250 £75 0 £225 £70 0 £200 Q1 2 009 Q2 2009 Q3 200 9 Q4 2009 Q1 2010 Q2 20 10 Q3 2010 Q4 201 0 Q1 2 011 Polymer £/ tonne £756 £8 37 £946 £86 6 £1,0 27 £1,119 £1
Slide 6: 2010 Performance
2010 Performance Macfarlane Group • Sales up 9.6% * • PBT (pre-exceptionals) up 6% * • Net bank borrowings down to £6.3m • Packaging Distribution • Sales up 10% * • Gross margin erosion of 1.7% due to high cost price inflation * Manufacturing Operations • Sales up 7% * • Strong recovery in Packaging
Slide 7: Sales per Employee
Sales per Employee* £000 319 Best Practice Sales Opportunity ** 254 220 223 £27m 205 193 06 07 08 09 10 20 20 20 20 20 Sales per Employee Best Practice * These figures are for the Packaging Distribution business only. ** The Best Practice sales opportunity is based on all RDCs achieving the sales le
Slide 8: Sales per Square Foot
Sales per Square Foot * £ Best Practice Sales Opportunity ** 261 £54m 172 173 174 150 158 2006 2007 2008 2009 2010 Sales per Square Foot Best Practice * These figures are for all RDCs in the Packaging Distribution business only ** The Best Practice sales opportunity is based on all RDCs achieving th
Slide 9: Return on Sales by RDC
Return on Sales by RDC * Best Practice Third Quartile - RDC's Top Quartile - RDC's Profit (ROS) 9.30% 9.50% Opportunity ** 8.30% 6.10% 6.40% 7.10% £6.2m Bottom Quartile - RDC's Second Quartile - RDC's 4.00% 2.60% 2.20% 2008 0.60% -0.30% -1.60% 2009 2010 • These figures are based on all RDCs in the P
Slide 10: Strategic Development: Increase 3PL Market Penetration
Strategic Development Increase 3PL Market Penetration Sales growth of 40% Improved penetration of existing 3PL customers (DHL & Wincanton) Gain of new customers (Unipart)
Slide 11: Strategic Development: Increasing Web Presence
Strategic Development Increasing Web Presence Web related sales growth of 19% 12% of total Packaging Distribution sales now electronically transacted
Slide 12: Strategic Development: Launch of Presentational & Retail Packaging
Strategic Development Launch of Presentational & Retail Packaging New customers gained (matches.com, Goodridge, Dartington Crystal) 130 live new PRP prospects
Slide 13: Strategic Development: Growth of Reseal-it
Strategic Development Growth of Reseal-it Sales growth from continuing customers 17% New Reseal-itTM customers include: Walkers, Cooper Farms, Kraft, Bahlsen
Slide 14: Outlook
Outlook Levels of demand in the UK economy remain uncertain Ongoing volatility of raw materials prices Packaging Distribution core proposition remains strong Enhanced by our expertise in 3PL Increasing breadth of our product range through PRP Growing importance of our web offer Packaging Manufacturi
Slide 15: Conclusions
Conclusions In 2010 Macfarlane Group responded effectively to an extremely challenging pricing environment and despite gross margin erosion improved profitability. 2011 has started well despite demand weakness and pricing issues which are likely to continue in the medium term. New operational improv
Slide 16: Do you want to be held to this?
Slide 15 CS1 Do you want to be held to this? Callum Spreng, 03/05/2011
Slide 17: 112th Annual General Meeting
MACFARLANE GROUP PLC 112th Annual General Meeting 10th May 2011