Slide 1: Results for the year ended 25 September 2015
Results For the year ended 25 September 2015
Slide 2: Highlights
HIGHLIGHTS Food to go led strategy drives sustained out‐performance Double digit growth in operating profit and fifth consecutive year of double digit growth in adjusted EPS Investment programme to deliver future performance on track Well placed to deliver further progress in FY16 and beyond
Slide 3: Financial Review
FINANCIAL REVIEW Alan Williams Chief Financial Officer
Slide 4: Financial Summary
FINANCIAL SUMMARY FY15 Versus FY14 Revenue1 £1,340.3m +5.4% LFL Convenience Foods revenue £1,290.2m +6.0% LFL Operating profit2 £91.7m +10.6% Operating margin2 6.8% +30 bps Adjusted PBT3 £78.0m +13.5% Adjusted earnings per share3 18.0p +13.2% Leverage4 2.0x +¼ turn ROIC 14.1% +40 bps 1. References t
Slide 5: Convenience Foods
CONVENIENCE FOODS Food to go led strategy driving growth FY15 FY14 FY15 Like for Like revenue growth1 £m £m % change 15.4% Revenue1 1,290.2 1,213.4 +6.0% LFL 8.9% Operating 6.0% 89.6 80.7 +11.0% profit2 1.8% -1.0% Operating 6.9% 6.7% +20 bps margin2 UK Food to Go UK Prepared Meals UK Grocery US Food
Slide 6: Ingredients & Property
INGREDIENTS & PROPERTY % change FY15 FY14 Division Actual Constant £m £m currency currency represents less Revenue1 50.1 60.1 ‐16.6% ‐7.5% than 5% of Group activity Operating profit2 2.1 2.2 ‐4.5% Revenue decline driven mainly by lower commodity prices in edible oils Operating profit broadly in
Slide 7: Financing, Tax, Pensions & Exceptional Items
FINANCING, TAX, PENSIONS & EXCEPTIONAL ITEMS Financing Bank interest payable of £15.1m (FY14: £14.9m): higher average net debt related to the Group’s capital investment programme, partly offset by interest capitalisation of £0.9m Tax Group effective tax rate unchanged at 1% Effective tax rate
Slide 8: EPS and Dividend
EPS AND DIVIDEND EPS FY15 FY14 Adjusted earnings 14.3% ahead Adjusted earnings3 £72.8m £63.7m Adjusted earnings per share up 13.2% Denominator for earnings 405.5m 401.2m per share Adjusted earnings per share3 18.0p 15.9p Dividend FY15 FY14 Recommended final dividend of 3.75 pence per share Tot
Slide 9: Cashflow and Net Debt
CASHFLOW AND NET DEBT Net debt at 25 September 2015 of £265.5m ‐ 2.0x Net Debt / EBITDA* £m FY15 FY14 EBITDA2 121.5 109.5 Key features of net debt movement: Significant increase in capital Working capital movement (7.6) 9.8 expenditure behind major capacity Net capex (93.1) (51.3) and capability e
Slide 10: Borrowings Profile
BORROWINGS PROFILE Refinancing of primary bank facility completed in March 2015 ‐ new five year £300m facility in place USD100m of maturing private placement notes repaid post year‐end Total committed facilities at 24 November 2015 of £445m Weighted average debt maturity of 4.3 years as at 2
Slide 11: Summary – Performance Versus Financial Goals
SUMMARY – PERFORMANCE VERSUS FINANCIAL GOALS Key Metrics Goal FY15 Outcome Key Drivers Convenience 5% 6.0% Double digit like for like growth in Revenue LFL LFL Food to Go revenues Operating Maintain 6.8% Like for like growth momentum Margin* above 6% (+30 bps) Strong operational performance
Slide 12: Operating Review and Outlook
OPERATING REVIEW AND OUTLOOK Patrick Coveney Chief Executive Officer
Slide 13: FY15 Results Represent a Further Year of Strong Performance
FY15 RESULTS REPRESENT A FURTHER YEAR OF STRONG PERFORMANCE… FY12‐15 Revenue £m CAGR: 5% Track record of strong 1,340.3 1,273.5 delivery 1,197.1 Performing across all 1,161.9 target metrics FY12 FY13 FY14 FY15 FY12‐15 Sustained through Operating Profit2 £m CAGR: 9% 91.7 consumer, retailer 82.9
Slide 14: Driven by the Success of Our Food to Go Led Strategy and Culture
…DRIVEN BY THE SUCCESS OF OUR OUR FOOD TO GO LED STRATEGY AND CULTURE UK US UK UK Food to Go Food to Go Prepared Grocery Meals 45% 15% 20% 20% Combined FY15 LFL revenue growth of 10.4% Note: Percentages shown are as a percentage of total Convenience Foods revenues 14
Slide 15: FY15 Performance Priorities
FY15 PERFORMANCE PRIORITIES Navigate a UK grocery market undergoing 1 profound change Deliver strong growth in the US while 2 successfully integrating new business Build capacity and capability to enable next 3 phase of growth 15
Slide 16: Despite Near Term Market Challenges, Long-Term Trends Remain Positive
DESPITE NEAR TERM MARKET CHALLENGES, 1 LONG‐TERM TRENDS REMAIN POSITIVE Portfolio geared to long‐term Particularly well placed for consumer trends recent focus on value Convenience Customer brand focus Health and freshness Product investment model 16
Slide 17: Our UK Portfolio Is Outperforming the Market
OUR UK PORTFOLIO IS OUTPERFORMING THE 1 MARKET New business wins in each UK FY15 Growth Rates division Resetting our model to new customer reality 8.9% Longer term agreements Building scale 4.7% Eliminating duplication across value chain 1.8% 0.7% Reinvesting in product Total UK Food* UK
Slide 18: UK Convenience - Divisional Performance
UK CONVENIENCE 1 ‐ DIVISIONAL PERFORMANCE 1 Food to Go Strong revenue growth of 8.9% (versus market growth 4.9%*) Multi‐phased development of Northampton facility Pipeline of growth initiatives 2 Prepared Meals Revenue growth of 1.8% 4.2% growth in chilled ready meals (versus market growth
Slide 19: Investment in Capacity to Drive Organic Growth - Northampton
INVESTMENT IN CAPACITY TO DRIVE ORGANIC 1 GROWTH ‐ NORTHAMPTON Extension to existing facility in Northampton successfully commissioned in H1 FY15 Construction of new production facility (‘Unit D’) well advanced; product transfers will begin in Q3 FY16 Volumes and growth trends are strong; this
Slide 20: US FY15 Delivery and Development
2 US FY15 DELIVERY AND DEVELOPMENT Revenue growth of 28.0%, LFL growth of 15.4%1 Rollout of major hot sandwich contract completed, with Jacksonville now delivering Jacksonville to plan Rhode Island facility commissioned with closures of Newburyport and Brockton now complete Rhode Island Seat
Slide 21: Investment in Capability Starting to Bring Rewards
INVESTMENT IN CAPABILITY STARTING TO 3 BRING REWARDS People at the Core Senior leadership strengthened HR and leadership development Great Food New product development Quality and food safety Business Effectiveness IT infrastructure and capability Distribution network investment Cost Eff
Slide 22: Outlook
OUTLOOK Strong performance in FY15 Clear strategy and strong positions in growing food to go market Pipeline of future opportunities Significant investment in capacity and capability “While the outlook for the UK grocery retail market remains uncertain, we are well positioned to deliver furt
Slide 23: the
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