Bunzl plc · LSE:BNZL
Bunzl — Shareholder Meeting (April 2018)
14 slides from Bunzl's shareholder meeting presentation, April 2018
Slide 1: 2018 Annual General Meeting
2018 ANNUAL GENERAL MEETING April 2018
Slide 2: Income Statement
INCOME STATEMENT GROWTH CONSTANT £m 2017 2016 REPORTED EXCHANGE Revenue 8,580.9 7,429.1 16% 10% Adjusted operating profit* 589.3 525.0 12% 6% Operating margin* 6.9% 7.1% Net finance expense (46.7) (46.8) Adjusted profit before income tax* 542.6 478.2 13% 7% Adjusted earnings per share* 119.4p 106.1p
Slide 3: Dividend per Share
DIVIDEND PER SHARE (p) 46.0 25 years of consecutive CAGR dividend increases > 10% 4.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 3 2018 AGM APRIL 2018
Slide 4: Cash Conversion
CASH CONVERSION 110% Average cash 103% 102% 102% conversion* 97% 99% 97% 93% 95% 93% 93% 95% 92% 92% 97% TARGET 90% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 * Operating cash flow before acquisition related items to adjusted operating profit – see Appendix 2 and Appendix 4 04 – 05 continuing operati
Slide 5: Uses of Free Cash Flow 2004 – 2017
USES OF FREE CASH FLOW 2004 – 2017 Consistently strong free cash flow supports long term DIVIDENDS 6%† CAGR >10% DIVIDEND PER SHARE growth £1.1bn STABLE DIVIDEND COVER c. 2.5x◊ 14%† ACQUISITIONS 151* ACQUISITIONS SINCE 2004 £3.0bn SELF-FUNDED * Includes two acquisitions which were committed in 2017
Slide 6: Financial Summary
FINANCIAL SUMMARY REVENUE ORGANIC ADJUSTED REVENUE OPERATING GROWTH PROFIT* 10% ◊ 4.3% ◊ Highest in 11 years 6%◊ FREE CASH CASH COMMITTED FLOW CONVERSION** ACQUISITION SPEND 16% 97% £616m Record level ADJUSTED DIVIDEND ROACE EPS* PER SHARE 7%◊ 10% 25 years of growth 53.1% ◊ At constant exchange rate
Slide 7: ROIC: Consistent and Proven Compounding Strategy
CONSISTENT AND PROVEN COMPOUNDING STRATEGY High ROIC PROFITABLE Use competitive despite ORGANIC advantage to significant GROWTH grow market share in a profitable way acquisition spend ROIC OPERATING MODEL Daily focus on making IMPROVEMENTS our business more efficient 16.0% ACQUISITION Use strong bal
Slide 8: Acquisition Growth 2017
ACQUISITION GROWTH 2017 EXISTING MARKETS £621m Business Packaging Film Sales Country USA Sector Foodservice Revenue £5m Acquired January revenue acquired ML Kishigo USA Safety £26m March DDS USA Retail £242m May AMFAS Canada Safety £6m May Western Safety Canada Safety £4m May Tecnopacking Spain Food
Slide 9: Financial Track Record 2004-2017
FINANCIAL TRACK RECORD 2004-2017 Proven compounding REVENUE (£bn) ADJUSTED OPERATING PROFIT* (£m) growth strategy 8.6 589 CAGR 2.4 169 10%-11% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 04 05 06 07 08 09 10 11 12 13 14 15 16 17 ADJUSTED EPS* (p) DIVIDEND PER SHARE (p) 04-12 restated on adoption of IA
Slide 10: Alternative Performance Measures
APPENDIX 1 ALTERNATIVE PERFORMANCE MEASURES This presentation includes various performance measures defined under International Financial Reporting Standards (‘IFRS’) as well as a number of alternative performance measures (known as non-GAAP measures). The principal alternative performance measures
Slide 11: Income Statement Alternative Performance Measures
APPENDIX 2 INCOME STATEMENT ALTERNATIVE PERFORMANCE MEASURES £m 2017 2016 Operating profit 456.0 409.7 Adjusting items* 133.3 115.3 Adjusted operating profit 589.3 525.0 Operating margin 6.9% 7.1% Net finance cost (46.7) (46.8) Adjusted profit before income tax 542.6 478.2 Tax on adjusted profit (14
Slide 12: Adjusting Items
APPENDIX 3 ADJUSTING ITEMS £m 2017 2016 Customer relationships amortisation (96.6) (81.3) Deferred consideration payments (28.5) (29.6) Transaction costs and expenses (12.1) (6.8) Earn-out adjustments 3.9 2.4 Total adjusting items (133.3) (115.3) 12 2018 AGM APRIL 2018
Slide 13: Cash Flow and Cash Conversion
APPENDIX 4 CASH FLOW AND CASH CONVERSION £m 2017 2016 Operating profit 456.0 409.7 Adjusting items 133.3 115.3 Adjusted operating profit* 589.3 525.0 Adjusted for: Non-cash items 28.9 28.0 Working capital movement (15.6) (6.3) Cash flow from operations◊ 602.6 546.7 Net capital expenditure (32.9) (24
Slide 14: Disclaimer
DISCLAIMER No representation or warranty (express or implied) of any nature can be given, nor is any responsibility or liability of any kind accepted, by Bunzl plc (“Bunzl”) with respect to the completeness or accuracy of the content of or omissions from this presentation. This presentation is for i