Greencore Group PLC · LSE:GNC
Greencore — Investor Day (March 2012)
89 slides from Greencore's investor day presentation, Mar 8, 2012
Slide 1: Where We Are And Where We're Going
Greencore Group “Where We Are And Where We’re Going” Patrick Coveney, London/Northampton, 7th-8th March 2012
Slide 2: Disclaimer
Disclaimer Greencore Group plc issued its latest Interim Management Statement (‘IMS’) on 9 February 2012. The Group has not issued a trading update since this IMS. This presentation contains forward looking statements which reflect Management’s views and estimates as of the date of this IMS. These f
Slide 3: Context and Objectives for Investor Days
Context and Objectives for Investor Day/s Context Objectives Fluid competitive customer and Relaunch the “investment case” for consumer landscape Greencore, highlighting our strategic, economic and organisational model Significant recent portfolio change at Greencore Update investors and equity anal
Slide 4: Outline Agenda For Next Two Days
Outline Agenda For Next Two Days WEDNESDAY: 14:00 – 14:45 Where We Are and Where We’re Going Patrick Coveney 14:45 – 15:30 Drivers of UK Convenience Performance Di Walker 15:30 – 15:45 Break - 15:45 – 17:15 How We Win in Food to Go Chris Kirke & Lochlain Feeley 17:15 – 18:00 Our Financial Model and
Slide 5: Business and Strategic Overview
Business and Strategic Overview 1. “Who we are” – Greencore today 2. “Where we have come from” – The evolution of our business and our strategy 3. “Where we are going” – Delivering our strategy in the months and years ahead. 5
Slide 6: Our Business Model
1.1 Our Business Model Greencore Group Total Total Revenue*: Revenue*: £1.1 £1.1 billion billion UK Food To UK Prepared UK Meal UK Cakes & US Ingredients & Go Meals Components Desserts Convenience Property % Share of Group 40 20 15 15 5 5 Revenue** Key • Sandwiches • Ready • Sauces • Celebration • S
Slide 7: Our Customer Model
1.2 Our Customer Model - UK Retail Convenience 20% 20% 20% 15% 10% 10% 5% *Estimated, based on Greencore retail revenue for the first 17 weeks of FY12, week ending 27 January 2012 and rounded to the nearest 5%, excluding Uniq activity exited and to be exited 7
Slide 8: Our Economic Model
1.3 Our Economic Model METRIC DRIVERS Thoughtful category selection Innovation to drive consumer and customer Revenue LFL GROWTH OF >5% excitement Sustained market share growth Continuous productivity enhancement Operating Margins >6% Inflation recovery and margin management ROIC > 12% Tight managem
Slide 9: Our Culture and Values
1.4 Our Culture and Values Lean Greencore delivering excellence together Strategy led Performance driven Passionate and ambitious for business, our teams and ourselves Financially savvy and highly cost conscious Sense of pace, fun and excitement Entrepreneurial, ‘can do’ and autonomous Steeped in pr
Slide 10: The Evolution of Our Business
2.1 The Evolution of Our Business 1934 1991 2000 2006 2008 2009 2010 2011 2012 Privatisation Privatisation Acquisition Acquisition Decision Decision to to exit exit Entry Entry in in to to US US Acquisition Acquisition of of Paul’s Paul’s sugar processing sugar processing market market of of Uniq Un
Slide 11: Our Vision and Strategy
2.2 Our Vision and Strategy OUR VISION: STRATEGY To be a widely To be a focused, growing, convenience foods admired, business capitalising on favourable, long-term growing, customer and retailer trends international To create an industry-leading UK business convenience (overall and by category), sup
Slide 12: Drivers of Strategy
2.3 Drivers of Strategy Areas of focus today a. Great (and safe) food b. Growth – as a sector and a company c. Focus – categories, private label, retail d. Deep relationships – customers, responsiveness, colleague engagement e. Financial and capital discipline – culture, knowledge, oversight/engagem
Slide 13: Drivers of Strategy – Growth in UK Convenience
2.3 Drivers of Strategy – Growth in UK Convenience …in our markets …and our portfolio 10 YEAR CUMULATIVE GROWTH CONTINUING GROWTH IN CONVENIENCE FOODS 3 YEAR 6.0% 54.3% 50.0% 1 YEAR 8.0% 15.0% Chilled/ Ambient Frozen FY12 YTD 11.8% Fresh Source: Kantar WorldPanel 52 w/e January 2012 Note: Greencore
Slide 14: Drivers of Strategy – Growth in US Convenience
2.3 Drivers of Strategy – Growth in US Convenience Sustained Fresh Food growth …reflecting growing …and changing retailer commitment competitor landscape Accelerating consolidation of supply base across 9% key categories Emergence of specific channels/category solutions 3% Chilled/ Fresh Ambient Sou
Slide 15: Drivers of Strategy – Focus on Private Label
2.3 Drivers of Strategy - Focus on Private Label Long term move to Private Label… …where UK leads the way PRIVATE LABEL SHARE OF TRADE SHOWS CONTINUED MARKET GROWTH IN UK 50 PRIVATE LABEL 48 46 B BRAND 44 42 40 A BRAND 38 36 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2010 2025f Sour
Slide 16: Focus On 'Structurally Attractive' Categories
2.3 Drivers of Strategy - Focus On ‘Structurally Attractive’ Categories MARKET OUR OUR ROLE FOR GROWTH POSITION SHARE RETAILER Profit and traffic 2% No. 1 36%* driver FOOD TO GO Destination category Growth and profit ITALIAN READY driver MEALS 14% No. 1 24% Destination category OWN LABEL Profit driv
Slide 17: Where Next – Business Benefits of Uniq Acquisition
3.1 Where next - Business Benefits of Uniq Acquisition High performing sandwich business with strong potential and capability for further growth Addition of M&S as material ‘new customer’ for Greencore Group COMMERCIAL Opportunity to tighten and refocus ‘Uniq Desserts’ Ability to fully absorb and ex
Slide 18: Strategic Priorities for FY12
3.2 Where Next - Strategic Priorities for FY12 a. Deliver Uniq integration benefits and transform revenue, profitability and cash generation profile of our group b. Sustain strong organic growth momentum and commercial positions of underlying category business c. Continue with strategic positioning
Slide 19: Progress Against FY12 Strategic Priorities
3.3 Progress Against FY12 Strategic Priorities DELIVERY a. Uniq Integration Integration fully on track against ‘business case’ targets 11.8% like for like growth reported in Convenience Foods b. Organic Growth for first four months of FY12 More than half of US revenues now in Food to Go versus c. US
Slide 20: Outline Agenda For Next Two Days
Outline Agenda For Next Two Days WEDNESDAY: 14:00 – 14:45 Introduction and Overview Patrick Coveney 14:45 – 15:30 Drivers of UK Convenience Performance Di Walker 15:30 – 15:45 Break - 15:45 – 17:15 How we Win in Food to Go Chris Kirke & Lochlain Feeley 17:15 – 18:00 Our Financial Model and Integrate
Slide 21: Drivers of UK Convenience Performance
Greencore Group “Drivers 0f UK Convenience Performance” Di Walker, London/Northampton, 7th-8th March 2012 1
Slide 22: Context & Objectives
Context & Objectives 1. To provide a snapshot of Greencore’s UK businesses 2. To demonstrate the key drivers at play in the UK convenience foods market 3. Set out the elements of the Greencore model 4. Answer any questions that you may have 2
Slide 23: Convenience Foods UK – what we do
Convenience Foods UK ….what we do c. £1,000m revenue* c. 11,000 employees* Product categories Convenience Foods − Food to Go Agri-business Northampton (M&S) Manton Wood Office locations Park Royal Bow Crosby (sushi) Spalding (salads) − Prepared Meals Warrington Kiveton Wisbech Bristol (chilled sauce
Slide 24: Convenience Foods UK – structure
Convenience Foods UK …structure Di Walker Di Walker CEO CEO Grocery & Grocery & Ministry of Cake Desserts & Purchasing & Food to Go Northampton Frozen Foods Ministry Cakes & Desserts Prepared Meals Technical Food MD of Cake Desserts & Integration Purchasing Supply Chain& MD to Go Northampton MD Froz
Slide 25: UK Convenience Foods team
UK Convenience Foods team Flat structure Strong ‘one Convenience Foods team’ culture MD’s commercially savvy – we expect them to be ‘all over’ their numbers − Short interval control – volume tracking − Weekly & monthly reporting − Quarterly forecast − Budget − Detailed balance sheet understanding Re
Slide 26: The UK convenience foods market
The UK convenience foods market UK Chilled Convenience Foods Market* is worth £8.03bn and grew 6.9%** in period to 23 January 2012 Convenience food markets long-term growth is driven by fundamental consumer trends: less time, decline in cooking skills, smaller households Over the last calendar year
Slide 27: The Greencore model
Well Invested Facilities Scale The Greencore model Customer Breadth Customer Relationships Consumer Insight 7
Slide 28: The Greencore model – well-invested facilities
The Greencore model … well-invested facilities Flexible multipurpose facility producing Well Invested cooking sauces, pickles, table sauces and Facilities specialist drinks Winner 2008 Food Man. Excellence award Opened 2000 UK’s largest quiche bakery High volume and craft Kiveton Bakery bakery capab
Slide 29: The Greencore model – scale
The Greencore model … scale Manufacturing Scale Distribution Scale • Large volumes across categories: • Direct to Store Food to Go distribution model − 6m sandwiches per week − A key Greencore USP − 2m ready meals per week − 7,500 daily deliveries − 4m jars of sauce per week − 6 days a week • Greenc
Slide 30: The Greencore model – customer breadth
The Greencore model … customer breadth Breadth of Customers A broad customer base with strong and long standing customer relationships 10
Slide 31: The Greencore model – strong customer relationships
The Greencore model … strong customer relationships “Be in no doubt, you are my best Category Director supplier, a model supplier.” M&S Trading Exec “Greencore provide consistently high quality products, “The passion for Innovation really shows” strong service levels and high technical standards. Th
Slide 32: The Greencore model – strong customer relationships
The Greencore model … strong customer relationships Clear evidence of strong customer relationships Very strong scoring in the Vantage survey Consistently strong peer and competitor feedback The Grocer Own Label Supplier of the Year 2011 Overall winner across all OL suppliers, nominated by customers
Slide 33: The Greencore model – insight and partnership
The Greencore model ….insight and partnership Focused innovation: How can we deliver products that improve consumers’ lives? Retailer ranging: CONSUMER Which products in retailer assortment? As category experts, Greencore are best AND MARKET placed to manage INSIGHT Ranging by store: these activitie
Slide 34: The Greencore model – business enhancing processes & culture
The Greencore model … business enhancing processes & culture Lean Greencore Lean • A program designed to ensure Greencore are: Greencore delivering excellence together − Supplier of choice in our market − The employer of choice in each locality TLC (Total Lowest Cost) • “Lean” and “world class” manu
Slide 35: The Greencore model – operational excellence
The Greencore model … operational excellence Product Quality Industry Leading Food Safety • Excellent product quality is a prerequisite and • A fundamental parameter for Greencore, where we aim challenged hard – daily to lead industry best practice • Product quality is “everyone's” responsibility •
Slide 36: The Greencore model – great people
The Greencore model … great people Greencore Greencore Values Values Experience Experience & & Capability Capability • Performance matters • Category Leadership teams • People matter Optimum Optimum Organisation Organisation Structure Structure amongst the best in the • Passion industry • Responsibi
Slide 37: The Greencore model – delivering value
The Greencore model …. delivering value 1. Extending and sustaining strong category positions, e.g. − FTG, Quiche, Chilled Sauces 2. Driving substantial and sustainable turnarounds in underperforming category businesses − Chilled Ready Meals, Grocery 3. Building ever deeper relationships becoming th
Slide 38: Key messages
Key messages ‘Convenience’ is still a strong consumer dynamic The Greencore model gives us a real competitive advantage – this model differentiates us from our peers Clear focus on Private Label Genuine scale – volume and customer Effective translation of consumer insight into profitable product pro
Slide 39: Why Food to Go matters so much
Why Food to Go matters so much … and why we are focusing on it today In aggregate Food to Go represents c.40% of Greencore revenues It is the best example of how all of the elements of the Greencore operating model and culture come together Food to Go was at the centre of the business case for the U
Slide 40: How We Win in Food to Go
Greencore Group “How We Win in Food to Go” Chris Kirke & Lochlain Feeley, London/Northampton, 7th-8th March 2012 1
Slide 41: Context & Objectives
Context & Objectives 1. To provide an overview of our Food to Go businesses 2. To give an overview of the food to go market, including: Definition of market place Retailers Customers Competitors 3. To share the future prospects and opportunities 4. To answer any questions that you may have 2
Slide 42: Business Overview
greencore Business Overview
Slide 43: Business Overview
Business Overview Greencore Food to Go is the UK’s largest food on the move manufacturer and Greencore’s single biggest category The business services a broad range of customers with consumer focused ranges of bespoke products in each retailers’ own label complemented where appropriate with branded
Slide 44: Business Overview
Business Overview Six facilities (Manton Wood, Park Royal, Spalding, Bow, Crosby, Northampton) manufacturing sandwiches, wraps, DESCRIPTION baguettes, sushi, wet salads, pasta salads OF BUSINESS Radial distribution business servicing 7,500 outlets 6 days a week Annual volume: 380m units KEY NUMBERS
Slide 45: Business Overview – Share and Position
Business Overview – Share and Position Market Share Market Position Sandwiches 36% #1 Sushi 23% #2 Food to Go Salads 12% #3 Side of Plate Salads 22% #2 Source: Nielsen 52 w/e 01 October 2011 & Greencore retail sales figures for Food to Go 6
Slide 46: Manufacturing Facilities – Manton Wood
Business Overview – Manufacturing Facilities Manton Wood Size 160,000 sq ft Production Lines 17 SKUs 407 Employees 1700 Annual Volume 130m units • Opened in 2000 • High volume sandwich facility • Fully automated to modular production • On site contingency • Plastic and card capability • Lieder line
Slide 47: Manufacturing Facilities – Park Royal
Business Overview – Manufacturing Facilities Park Royal Size 35,000 sq ft Production Lines 8 SKUs 200 Employees 830 Annual Volume 70m units • Opened in 1998 • Acquired by Greencore in 1999 • High volume sandwich facility • Fully automated to craft production • Rolls, flatbreads and platters • Lieder
Slide 48: Manufacturing Facilities – Bow
Business Overview – Manufacturing Facilities Bow Size 60,000 sq ft Production Lines 8 SKUs 100 Employees 515 Annual Volume 30m units • Acquired by Greencore in 2005 • Broad product capability • Cooking and baking on site • Food to go salad manufacture • Made today supply into central London • Capabi
Slide 49: Manufacturing Facilities – Crosby
Business Overview – Manufacturing Facilities Crosby Size 16,000 sq ft Production Lines n/a SKUs 35 Employees 150 Annual volume 10m units • Acquired by Greencore in 2007 • Semi automatic sushi manufacture • £2m invested over the last 4 years • 1m units to 10m units in 4 years 10
Slide 50: Manufacturing Facilities – Spalding
Business Overview – Manufacturing Facilities Spalding Size 108,000 sq ft Production Lines 2 Lieder and 8 production lines SKUs 105 Employees 420 Annual volume 40m • Site built in 1990 • Acquired by Greencore in 2011 • 12 acre plot with 55% available for expansion • In house mayonnaise manufacture •
Slide 51: Manufacturing Facilities – Northampton
Business Overview – Manufacturing Facilities Northampton Size 135,000 sq ft Production Lines 18 SKUs 120 Employees 1480 Annual volume 100m • Opened 1984 • Acquired by Greencore in Sep 2011 • Broad product capability – sandwiches, wraps, deli- fillers, other FTG • Automated lines (including Leider) a
Slide 52: Direct to Store Distribution
Business Overview - Direct to Store Distribution Delivery to order, not van sales We can receive orders, or generate them ourselves We deliver nationwide to over 7500 outlets daily, including petrol stations, Inverness cafes, c-stores, railway stations, airports, hospitals, motorway service areas. D
Slide 53: Business Overview – Summary
Business Overview - Summary Well invested facilities Highly efficient with industry leading cost metrics Flat structures leading to real ownership and rapid decision making Centres of excellence to drive expertise and efficiency Unique distribution model with nationwide coverage Good breadth of cust
Slide 54: Food to Go Market
greencore Food to Go Market 15
Slide 55: Food to Go Market – Definition
Food to Go Market - Definition All Food Purchase Occasions In home consumption Out-of-home consumption Food for Later Food for Now Typically food bought in shops, taken home and stored for a period, and prepared or consumed at a later time Take Away Eat In Food to Go Typically food bought in shops,
Slide 56: Food to Go Market – Size and Sectors
Food to Go Market – Size and Sectors Bought £3.7bn Market (consumed out of Made in home Multiples £860m home) £10.5bn Workplace £740m 26% (consumed in conversion Bakers £700m home) Non Grocery £520m 45% opportunity Made in home Coffee shops £400m Sandwich bars £400m (consumed out Other £70m of home
Slide 57: Food to Go Market – Key Players
Food to Go Market – Key Players All others Sandwich bars 1% 12% Multiples 20% Coffee Shops 13% Workplace 20% Non-grocery stores 15% Bakers Source: Kantar FoTG panel 52 w/e 25th December 2011 19% 18
Slide 58: Food to Go Market – Key Factors in the Retailers
Food to Go Market – Key Factors in the Retailers Number of Stores Continued investment in space 30 00 +1% 20 10 20 11 and convenience formats driving 25 00 +8% sales within Food to Go 20 00 15 00 +11% 10 00 +41% +1% +7% +11% Food to go designated hero 5 00 0 status in all retailers A sda C o -op M&
Slide 59: Food to Market – Customers
Food to Market - Customers Market showing strong performance despite all the pressure of the broader economy £22M Average Weekly Retail Sales £20M - Sandwiches £18M £16M £14M £12M 2010 2011 2012 £10M £8M £6M 03 Jan 31 Ja n 28 Feb 28 Mar 25 Apr 23 M ay 2 0 J un 1 8 J ul 1 5 A ug 12 Sep 10 Oct 07 Nov
Slide 60: Food to Go Market – Competitors
Food to Go Market - Competitors Competitor Key Customers Tesco, Waitrose, Ginsters Mkt Share: 14% Industry has consolidated in recent years with 4 key players Asda, JS, Boots, remaining with Greencore Morrisons, Nero, Starbucks, Airlines, being the largest Contract Catering Mkt Share: 18% Tesco, M&S
Slide 61: Food to Go Market – Competitors for Salads Category
Food to Go Market - Competitors for Salads Category Competitor Key Customers M&S (dedicated), Waitrose (dedicated), Tesco, JS Mkt Share: 22% Del Monte have recently Tesco, JS Mkt Share: 18% announced the closure of their York facility with Greencore Aldi, Lidl Spalding being awarded their Mkt Share:
Slide 62: Food to Go Market – Summary
Food to Go Market - Summary Strong established market with 9% value growth in sandwiches over the last 52 weeks Consumers loyal to the category and purchasing despite well publicised economic issues Category vital for all retailers to drive footfall, highlight food credentials, spans into convenienc
Slide 63: Greencore Food to Go in Depth
Greencore Food to Go in Depth 24
Slide 64: Food to Go – History of Winning
Greencore Food to Go in Depth – History of Winning Acquired by First Direct Worksop Hazlewood To Store Production Foods Acquisition Sandwich relocates to new Deliveries factory at Of Oldfields Millstore Became New factory Factory Worksop Acquisition Manton Sandwich Derbyshire Opened in At Bow, Londo
Slide 65: Food to Go – Business Foundations
Greencore Food to Go in Depth – Business Foundations Long term trading relationships NPD based on insight and research Collaboration Industry leading category Category Brands and management Insight Management activation Impeccable service and quality Route to market solutions 26
Slide 66: Food to Go – Two Business Models
Greencore Food to Go in Depth – Two Business Models … To Fit with Retail Customer Needs • First-to-Market Best of Both • Fast Follower • Exclusive Relationships • Infrastructure • Fit-for-Purpose • IP Protection • Best Practices • VFM – accent more on cost • Category Captaincy • Scale Leverage • End
Slide 67: Customer Intimacy & Innovation Leadership
Customer Intimacy & Innovation Leadership Core Competencies LAUNCH MARKET INSIGHT 1. B2B customer intimacy – we’re an MARKETING NEEDS extension of the customer’s PLAN DEFINITION organisation INNOVATION 2. Translating consumer insights into SCALE UP CYCLE IDEA value-adding food solutions & PROCESS GE
Slide 68: Food to Go – "Best of Both"
Greencore Food to Go in Depth - “Best of Both” “Best of Both” is the sharing of knowledge and best practice in operations between the two businesses Best Practice Transfer from Greencore to former Uniq sites Optimising Food to Go Operations through knowledge and best practice sharing whilst Lean Hyg
Slide 69: Future Prospects and Opportunities
Future Prospects and Opportunities 30
Slide 70: Future Prospects & Opportunities
Future Prospects & Opportunities Driving Core Extending Core Winning New Insight Driving Adjacencies End-to-end supply Consumer Research Salad All routes to market covered Inspiration Trips Sushi Shopper Insight Retailer Distribution Highly competitive Category Management Convenience Stores Best of
Slide 71: Summary
greencore Summary 32
Slide 72: Summary
Summary Greencore FTG: the world’s largest manufacturer of sandwiches and leading manufacturer of salads and sushi with a record of continuous growth Greencore Competitor Set: Greencore are continuing to win business in a competitive market, including most recently the Aldi contract and a 40% share
Slide 73: Our Financial Model & Integrated Investment Case
Greencore Group “Our Financial Model & Integrated Investment Case” Alan Williams, London/Northampton, 7th-8th March 2012 1
Slide 74: Objectives
Objectives 1. Demonstrate how underlying model is working 2. Describe key components/features of our balance sheet 3. Highlight change in cash generation of the Group 4. Set out performance goals 5. Address specific questions that you might have 2
Slide 75: Group Financial Performance – Reported Revenue
Group Financial Performance – Reported Revenue €m Performance has been masked in recent years by portfolio restructuring and the structural depreciation of GBP against the euro c.-1% underlying growth c. -5% disposal and business exited c.+5% underlying c. -10% currency growth impact c. -29% disposa
Slide 76: Group Financial Performance – Reported Operating Profit
Group Financial Performance – Reported Operating Profit* €m Performance has been masked in recent years by portfolio restructuring and the structural depreciation of GBP against the euro c.-€9m currency c.-€22m disposal impact impact c.+€1m currency benefit 77 -16% 73 -22% 60 59 FY08 FY09 FY10 FY11
Slide 77: Convenience Foods Division – A Growth Business
Convenience Foods Division - A Growth Business When viewed in GBP, the Convenience Foods division has delivered excellent growth with significant improvement in operating profit Convenience Foods Revenue on a continuing basis** £m 732 CAGR 6% 678 624 614 FY08 FY 09 FY 10 FY11 Convenience Foods Opera
Slide 78: Group Return on Capital Employed
Group Return on Capital Employed Total Group ROCE is also impacted by re-shaping of the portfolio Reported ROCE % 14.80% 14.50% 14.10% 13.20% FY08 FY09 FY10 FY11 6
Slide 79: Convenience Foods Divisions – A Growing Return on Net Assets
Convenience Foods Divisions – A Growing Return on Net Assets Return on capital has grown significantly in the Convenience Foods division RONA for Convenience Foods Division on a continuing basis* % 4 2 .6 % 4 0 .9 % 3 0 .8 % 2 3 .6 % FY0 8 FY 0 9 FY1 0 FY 1 1 ** Continuing basis excludes the Water a
Slide 80: Debt profile & Financial Covenants
Debt profile & Financial Covenants The Group is well financed with total committed facilities of £443m against pro-forma net debt at 30 September 2011 of £252.5m and a peak seasonal borrowing requirement of £80m - £100m above this Average debt maturity extended during FY11 from 2.0 years at Septembe
Slide 81: Net Debt and Finance Charge
Net Debt and Finance Charge Net debt at 30 September 2011 of £140m prior to Uniq consideration – pro-forma net debt was £252.5m - Pro-forma Net Debt : EBITDA below 3.0 times September is a seasonal low point - Peak £80 - £100m above low point - Average typically c.£60m - £70m above September positio
Slide 82: Pension Deficit
Pension Deficit The Group has a number of Defined Benefit Schemes in the UK and Ireland All schemes are closed to future accrual and have been replaced by Defined Contribution arrangements IAS 19 deficit at 30 September 2011 of £106m (net of related deferred tax asset) Annual cash funding requiremen
Slide 83: Cash Flow Delivery
Cash Flow Delivery The Uniq acquisition has transformed the free cash flow position of the Group: £m Greencore Greencore Comments FY11 ‘Normalised’ EBITDA 70 70 + growth Capital expenditure (23) (23) Change in working capital (2) - Working capital is negative – assume neutral Cash interest (20) (17)
Slide 84: Cash Flow Delivery
Cash Flow Delivery The Uniq acquisition has transformed the free cash flow position of the Group: £m Greencore Uniq plus Comments ‘Normalised’ synergies Latest reported EBITDA 70 14+10+growth As reported by Uniq in Dec 2010. Synergies as previously announced Normalised capital (23) (8) Anticipated ‘
Slide 85: Cash Flow Delivery
Cash Flow Delivery The Uniq acquisition has transformed the free cash flow position of the Group – doubling of the cash generation potential £m Greencore Uniq plus Pro-Forma ‘Normalised’ synergies Combined Group Latest reported EBITDA 70 14+10+growth 94+growth Normalised capital (23) (8) (31) expend
Slide 86: Business Performance Goals
Business Performance Goals UK Chilled Convenience Foods will continue to grow ahead of Revenue overall UK Food -LFL growth of > 5% Increasing exposure to fast growing US Convenience Channel fresh food offer Maintain gross margin in UK and seek to absorb indirect Operating profit* cost inflation thro
Slide 87: Conclusion
Conclusion The Group has restructured its portfolio to focus on Convenience Foods in the UK and US Use of GBP as a functional currency removed “noise” around earnings Convenience Foods is a growth business with attractive and growing return on capital The Group has appropriate and secure financing a
Slide 88: Today We Have
Today We Have Restated the Greencore ‘investment case’ Highlighted that the convenience food sector is a growth market, where we can and do earn attractive and growing returns on capital Demonstrated that the Uniq integration is on track to deliver the synergy benefits that will transform the free c
Slide 89: Greencore – bringing convenience to good food
greencore greencore bringing convenience to good food