Macfarlane Group Plc · LSE:MACF
Macfarlane — Shareholder Meeting (May 2009)
18 slides from Macfarlane's shareholder meeting presentation, May 5, 2009
Slide 1: Macfarlane Group PLC 110th Annual General Meeting
MACFARLANE GROUP PLC 110th Annual General Meeting 5th May 2009
Slide 2: UK Locations
@& Distribution PAaonufacturing = Online Packaging Aifpomt Pockoging Mocforiane Lobels — www.macfarlanegroup.net
Slide 3: CEO Presentation
MACFARLANE GROUP PLC CEO Presentation
Slide 4: Agenda
• Recent History • Strategic Priorities • Market Conditions • Key Initiatives • Future Outlook • Conclusions
Slide 5: Recent History
Recent History • In 2003, on sales of £131m, pre tax losses were £(18.5m) and debt was £(35m) • The Group has exited – non core and loss making activities: Packaging Manufacturing in Govan, Hungary, USA and Mexico, Brands Electronics and Plastics in Ireland • Operating performance, customer service
Slide 6: Key Strategic Priorities
Key Strategic Priorities In Packaging we plan to: • Ensure consistency of performance at all sites • Fully utilise our national capability with major accounts • Accelerate our response to environmental pressures • Better leverage our purchasing scale • Execute our strategic acquisition programme • S
Slide 7: Sales Per Employee
Strategic Priorities Sales Per Employee* 250 200 Sales/ Employee 150 £'000 100 50 0 2003 2004 2005 2006 2007 2008 Best Pra ctice Year Best Practice Sales Opportunity** £12m * These figures are for Packaging Distribution business only. ** The best practice sales opportunity is based on all 15 RDCs ac
Slide 8: Sales Per Sq Ft
Strategic Priorities Sa les Per Sq Ft* 250 200 Sales/Sq Ft 150 £'000 100 50 0 2003 2004 2005 2006 2007 2008 Best Pra ctice Year Best Practice Sales Opportunity** £40m * These figures are for Packaging Distribution business only. ** The best practice sales opportunity is based on all 15 RDCs achievin
Slide 9: Return on Sales by RDC
Return on Sales by RDC * 9.00% Best Practice 8.00% Profit (ROS) 7.00% Opportunity ** 6.00% 5.00% 4.00% £4m 3.00% 2.00% 1.00% 0.00% -1.00% 2007 2008 • These figures are for the 15 RDCs in our Packaging Distribution business. Return on sales = RDC Profit/(loss) / RDC Sales x 100 and is expressed as a
Slide 10: Strategic Priorities
Strategic Priorities • Gain of two major national accounts in Packaging Distribution – Play.com and Aga • Acquisition of Allpoint Packaging • Access to new proven Far East supplier base • Gain of major new national account in Packaging Manufacture – Meggitt Aerospace
Slide 11: Key Strategic Priorities
Key Strategic Priorities In Labels we plan to: • Continue to build our relationships with key customers • Fully utilise the competitive differentiation of the Re-Seal It range of labels • Maintain the efficiency of our manufacturing operations through selective investments in new technology • Build
Slide 12: Strategic Priorities
Strategic Priorities • Increased penetration in existing key accounts – McBrides, Kerry Foods • Re-Seal It new business wins in USA – Maple Leaf Foods, Plumrose and Costco and in Europe - Kraft • UK sales team strengthened with recruitment of new sales manager
Slide 13: Market Conditions
Market Conditions • Since 2H 2008 UK demand has weakened with some sectors showing sharp declines eg automotive, electronics, house removal • Market pricing has become increasingly competitive as demand has weakened • Manufacturers have been attempting to enter those market sectors traditionally ser
Slide 14: Key Initiatives
Key Initiatives • Streamlining programme applied across Macfarlane business to re-align cost base with demand conditions • New business activity accelerated in response to customer demand for better value • Purchasing activity has intensified as we look to reduce input pricing – early successes with
Slide 15: Future Outlook
Future Outlook • Our dependency on the UK economy means a period of extreme challenge for the next 12 - 24 months • Macfarlane Packaging will emerge from this period a stronger business: 1. The benefits of national capability will be reflected in new business gains 2. Customers will see the benefits
Slide 16: Future Outlook
Future Outlook • Macfarlane Labels is well positioned during this period: 1. It has a strong mix of customers a number of which are “blue chip” FMCG companies 2. It operates across a wide range of consumer sectors both branded and own-brand 3. It is well capitalised with leading edge printing equipm
Slide 17: Conclusions
Conclusions • Since 2003 Macfarlane Group has come through a period of recovery,re- structuring and re-building - The Group is now focussed,profitable and cash generative • The businesses are well positioned in fragmented markets that continue to offer opportunity and there is significant further pe
Slide 18: Macfarlane Group PLC 110th Annual General Meeting
MACFARLANE GROUP PLC 110th Annual General Meeting 5th May 2009