Ig Design Group Plc · LSE:IGR
Ig Design — International Greetings — FY2013 Earnings Presentation
22 slides from Ig Design's earnings presentation, July 2013
Slide 1: Growing today and investing for the future
\y International Greetings pic Growing today and investing for the future. Preliminary results for the year ended 31 March 2013 Presented by Paul Fineman and Anthony Lawrinson July 2013
Slide 2: Agenda
• International Greetings • Results for FY13 • 3 Year Plan
Slide 3: Our Business
Our Business • International Greetings designs, innovates, manufactures and sources gift packaging, greetings, stationery and creative play products No. 4 globally in the £3 billion greetings and consumer gift packaging sector 7% of total global market share with sales of £225 million in 12/13 •
Slide 4: What we do and where
What we do and where Our Core Categories Make or Buy Gift Packaging Stationery & Outsource Manufacture & Greetings Creative Play Sales c£155m (69%) Sales c£70m (31%) Sales c£125m (56%) Sales c£100m (44%) UK & Asia Europe USA Australia Sales £118.8m (53%) Sales £28.5m (13%) Sales £50.1m (22%) Sales £
Slide 5: Our Strengths
Our Strengths • Low cost manufacturing and sourcing • Compliant with demanding standards of the world’s leading retailers • Global product categories – supported by award winning service • A broad portfolio of generic, licensed and customer bespoke design based products • Strong offering in low tick
Slide 6: Who we sell to everyday
Who we sell to everyday Over 500 million units sold in over 80 countries, in over 100,000 retails outlets Focus on value sector retailers and global retailers Not dependent on any single customer Key to growing our ‘everyday’ product offering 8% is our maximum share of Group exposure 6
Slide 7: Production and Distribution Facilities
Production and Distribution Facilities Manu- Permanent Peak Ware- M² facturing Ware- housing housing UK & Asia 36,000 106,000 7,000 Europe 12,000 27,000 9,000 USA 10,000 41,000 0 Australia 1,000 20,000 0 Total 49,000 153,000 16,000 On average, we employ in excess of 1,800 people worldwide 7
Slide 8: Results for FY13
\ <7 International Greetings pic ¢ Results for FY13
Slide 9: A Pivotal Year of Development
A Pivotal Year of Development • Record Group sales levels achieved: – gift wrap volumes exceeded 2 billion linear feet – gift packaging and greetings sales of £155 million • Global sales of Everyday single cards have grown in excess of 25% • Worldwide customer base has expanded to over 80 countries,
Slide 10: Financial Highlights
Financial Highlights • Sales up 2% to £225 million (2012: £221 million) • Operating profit after exceptional items up 34% to £9.1 million (2012: £6.8 million) • Fully diluted earnings per share before exceptional items increased 16% to 7.8 pence (2012: 6.7 pence) • Cash generated from operations of
Slide 11: Financial Highlights
\ Nae Internationa Financial Highlights Greetings PLc Sales (£m) Operating profit (fm) +2% on 2012 +34% on 2012 2012 2012 2011 2011 2010 2010 Underlying diluted earnings per share* (pence) Net debt (Em) +16% on2012 +£0.2 MilliON on 2012 2012 67 2012 2011 48 2011 2010 4.0 2010 * Underlying earnings p
Slide 12: Summary of Full Year Results
Summary of Full Year Results Year ended March 2013 £m Sales 225.2 Gross Profit 41.3 18.3% Overheads (31.6) 14.0% Other Income 1.0 PBIT & EI 10.7 EBITDA 15.1 Finance costs (3.4) Profit before tax and exceptional items 7.3 Exceptional items (1.6) Profit before tax 5.7 Tax credit/(charge) (1.6) Profit
Slide 13: Earnings Per Share
Earnings Per Share (Pence) 2010/11 2011/12 2012/13 Reported EPS (fully diluted, 8.2 6.7 7.8 pre-exceptional) Effect of one off tax credit (3.4) - - Underlying diluted EPS 4.8 6.7 7.8 13
Slide 14: Balance Sheet
Balance Sheet Full year to March 2013 £m Intangibles 32.8 Fixed assets 30.0 Stock 50.1 Trade & other receivables 23.3 Net debt (42.1) Trade & other payables (38.0) Deferred income & provisions (2.8) Taxation 3.3 Net Assets 56.6 Attributable to Shareholders 51.9 Market capitalisation at 01/07/13 is £
Slide 15: Generated £9.1m cash from operations before exceptional items
Generated £9.1m cash from operations before exceptional items £m Full year to March 2013 PBIT 10.7 Depreciation and amortisation 4.3 (Profit)/ loss on disposal of assets (0.2) (Increase) in debtors (2.0) (Increase)/ decrease in stock (7.2) Increase/ (decrease) in creditors, provisions and accruals 3
Slide 16: Outlook 13/14 and Beyond
Outlook 13/14 and Beyond • Continued strong sales and profits growth anticipated supported by fast pay back £0.5m capital investment in H2 • Progressive UK/Asia sales and profitability • China relocation project complete enhances competitive position from 12/13 underpinned by growing automation • Fu
Slide 17: 3 Year Plan
\ <7 International Greetings pic ¢ 3 Year Plan
Slide 18: 3 Year Growth Plan
3 Year Growth Plan OUR LEVERS OUR COMMITMENT 18
Slide 19: Delivering our 3 Year Plan
\ \ Gree ae Delivering our 3 Year Plan Market. Opportunities tee, i = Investment Product Category Opportunities Opportunities Opportunities Managing Costs Synergies Existing Gift Packaging ‘Bolt on’s’ Grou 5 Expertise Customers Investments made Management Collaboration The reorganisation Double digi
Slide 20: International Greetings PLC
_ £ International Greetings PLC » Organic growth underpinned by existing customers, products and brands. ~ Investment in state of the art manufacturing facilities either complete or now in progress. » - Double digit CAGR in underlying EPS set to continue with new 3 year plan. - Cash flows will push
Slide 21: Annex
\ <7 International Greetings pic
Slide 22: A market leading portfolio of licenses
A market leading portfolio of licenses Girls Boys Pre-School Tweens 22
International Greetings — FY2013 Earnings Presentation on 6ix