Slide 1: Interim Results
Interim Results For the half year ended 27 March 2015
Slide 2: Highlights
HIGHLIGHTS Food to go led strategy continues to drive growth Successful rollout of new business wins in the UK and US On-track with significant investment programme to deliver future growth 2
Slide 3: Financial Review
FINANCIAL REVIEW Alan Williams Chief Financial Officer
Slide 4: Financial Summary
FINANCIAL SUMMARY H1 15 Versus H1 14 Revenue1 £639.8m +3.9% LFL Convenience Foods revenue £614.7m +4.9% LFL Operating profit2 £40.1m +7.8% Operating margin2 6.3% +30 bps Adjusted PBT3 £33.4m +9.2% Adjusted earnings per share3 7.6p +8.6% 1. References to like for like (“LFL”) revenue growth exclude r
Slide 5: Convenience Foods
CONVENIENCE FOODS Food to Go led strategy driving growth H1 15 H1 14 H1 15 Like for Like revenue growth1 14.8% £m £m % change Revenue1 614.7 587.9 +4.9% LFL 7.0% Operating 4.9% 39.3 35.9 +9.5% profit2 2.4% -1.2% Operating 6.4% 6.1% +30 bps margin2 UK Food to Go UK Prepared Meals UK Grocery US Food t
Slide 6: Ingredients & Property
INGREDIENTS & PROPERTY % change H1 15 H1 14 Division Actual Constant £m £m currency currency represents less Revenue 25.1 31.9 -21.3% -14.1% than 5% of Group activity Operating profit2 0.8 1.3 -38.5% Revenue decline driven by Lower volumes and lower commodity prices in edible oils Lower volume
Slide 7: Financing, Tax, Pensions & Exceptional Items
FINANCING, TAX, PENSIONS & EXCEPTIONAL ITEMS Financing Bank interest payable of £7.6m (H1 14: £7.0m): higher average net debt, a stronger US dollar versus sterling together with a higher effective cost of debt on non-bank borrowings Tax Group effective tax rate remains unchanged at 1% (H1 14: 1%
Slide 8: EPS and Dividend
EPS AND DIVIDEND H1 15 H1 14 Adjusted earnings 9.3% ahead Adjusted earnings3 £30.7m £28.1m Denominator for earnings Adjusted earnings per share up 404.6m 399.6m 8.6% per share Adjusted earnings per share3 7.6p 7.0p 9.1% increase in interim dividend Interim dividend per share 2.4p 2.2p 8
Slide 9: Cashflow and Net Debt
CASHFLOW AND NET DEBT Net debt at 27 March 2015 of £291.4m £m H1 15 H1 14 Key drivers of net debt movement EBITDA2 54.3 50.5 Larger seasonal working capital outflow: Working capital outflow (45.4) (14.1) - Principal drivers payables & inventory Net capex (43.7) (17.2) - Expected substantially to r
Slide 10: Borrowings Profile
BORROWINGS PROFILE Refinancing of primary bank facility completed in March 2015, with new five year £300m facility Total committed facilities of £505m Weighted average debt maturity extended from 2.7 years at 26 September 2014 to 4.5 years at 27 March 2015 Net debt:EBITDA 2.3x on a bank cove
Slide 11: Summary Financial Performance
SUMMARY FINANCIAL PERFORMANCE A good H1 performance Like for like Convenience Foods revenue growth of 4.9% Group operating profit up 7.8% Adjusted EPS growth of 8.6% 11
Slide 12: Operating Review and Outlook
OPERATING REVIEW AND OUTLOOK Patrick Coveney Chief Executive Officer
Slide 13: 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 13
Slide 14: Despite Retail Turbulence, Consumer and Customer Trends Are Supportive
DESPITE RETAIL TURBULENCE, UNDERLYING CONSUMER 1 AND CUSTOMER TRENDS ARE SUPPORTIVE Continued growth in food to go Blurring of channels Further build out of convenience Strengthened relevance of private-label Convenience Channel Value1 £bn Private Label Sales % Total Sales2 51.5 49.0 37.4 31% 50.5 2
Slide 15: We Continue to Extend Our Food to Go Leadership
IN THIS CONTEXT WE CONTINUE TO EXTEND 1 OUR FOOD TO GO LEADERSHIP CAGR 2011–13, % Develop industry leading 1 manufacturing facilities Create longer term, 2 collaborative partnerships Deepen capabilities – 3 distribution, insight, innovation Strengthen organisation – 4 people, process, culture 15
Slide 16: We Have Delivered Good Performance in the UK
WE HAVE DELIVERED GOOD PERFORMANCE IN 1 THE UK Growth rates % 7.0 Performance driven by: Food to Go led strategy 3.6 Multiple customer product initiatives 2.1 Positive operating leverage Purchasing initiatives 0.4 End to end collaboration projects UK Food* UK Chilled Greencore Greencore UK
Slide 17: UK Convenience Performance
UK CONVENIENCE PERFORMANCE 1 DIVISIONAL HIGHLIGHTS 1 Food to Go Strong revenue growth of 7.0% Rollout of new customer contract Northampton extension on track 2 Prepared Meals Revenue growth of 2.4% Strong chilled ready meals growth Declines in quiche 3 Grocery Like for like revenue dec
Slide 18: US H1 Delivery
2 US H1 DELIVERY Revenue growth of 30.6%, LFL growth of 14.8% Rollout of major contract complete Managed exit of non-core lines Ramp-up costs with new frozen sandwich volumes Construction of Rhode Island complete Good pipeline of growth opportunities in H2 18
Slide 19: Major Investment in Capex - Delivery of Rhode Island
MAJOR INVESTMENT IN CAPEX 3 - DELIVERY OF RHODE ISLAND NH March 2014 April 2015 19
Slide 20: Further Investments at Northampton Site
3 FURTHER INVESTMENTS AT NORTHAMPTON SITE 20
Slide 21: Major Investment in Organisation to Drive Next Phase of Growth
MAJOR INVESTMENT IN ORGANISATION TO DRIVE 3 NEXT PHASE OF GROWTH Structures and leadership The Greencore Way IT infrastructure & capability 21
Slide 22: These Initiatives Are Extending Our Food to Go Leadership
THESE INITIATIVES ARE EXTENDING OUR 3 FOOD TO GO LEADERSHIP UK US UK UK Ingredients & Food to Go Food to Go Prepared Grocery Property c. % of Meals run rate 40% 15% 20% 20% 5% revenue* Combined LFL revenue growth of 8.7% * Divisional shares rounded to the nearest 5% 22
Slide 23: Summary & Outlook
SUMMARY & OUTLOOK Good performance in H1 15 led by food to go activity Continued focus on operational improvements and cost control Delivery of major investment programme Confident in ability to deliver adjusted EPS growth in line with market expectations 23
Slide 24: greencore
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