Slide 1: 120th Annual General Meeting
120thAnnual General Meeting 14th May 2019
Slide 2: CEO Presentation Annual General Meeting
CEO Presentation Annual General Meeting 14th May 2019
Slide 3: Agenda
Agenda • 2018 Results • Historic Performance • Key Growth Opportunities • Macfarlane Group’s Future Development
Slide 4: Financial Summary – 2018
Financial Summary – 2018 Revenue Profit before EBITDA Exceptionals Revenue and Profit 11% 20% 19% Pre-tax ROCE Bank Debt Pension Deficit Returns and Balance Sheet 19% £13.2m £9.8m Diluted EPS EPS before Dividend per Exceptionals Share EPS and Dividend 9% 5.72p 2.30p
Slide 5: Profit Progression
Profit Progression Profit before tax Profit £m Earnings per share 12 7.00 Profit Earnings Per Share 10 6.00 5.00 8 4.00 6 3.00 4 2.00 2 1.00 0 0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 6: Performance Review
Performance Review Quality Operational Organic Growth Acquisitions Improvements •Segmental approach to • Acquired quality • Improved sourcing has market packaging distributors lowered our input prices •Good new business • Creating more effective growth property footprint •Focus on “Total Cost of • I
Slide 7: Opportunities and Challenges
Opportunities and Challenges Customer Need The European Changing Retail Brexit for Cost Environment Sourcing Sector Reduction
Slide 8: BREXIT – “Being Prepared”
BREXIT – “Being Prepared” Risk Assessment Strategic Stockbuilding International Suppliers The Impact of No Deal Working with our customers and suppliers Only 10% of our purchases are to minimise shortages on key products sourced from the EU Managing Commercial Labour Issues Impacts Support our 33 EU
Slide 9: The Environment – “Educated Choice”
THE ENVIRONMENT – “Educated Choice” Expertise Transparency Reduce Waste Recycle Innovate Support our Clear identification Create a more Supply packaging Work with our customers to choose of the environmental environmentally that is both suppliers to provide fit for purpose product credentials friend
Slide 10: Europe – “Follow the Customer”
EUROPE – “Follow the Customer” European Acquisition • Pipeline created Greenfield • 4 Multi-Site National Operation Operators •Customer Implant - IBM • 11 Single Site European Experience Regional/Local Operators Partnerships • 3PL/Suppliers • Local Distributors
Slide 11: Retail – “A Changing Market”
RETAIL – “A Changing Market” Continued investment Promote the Benefits of in technologies to Innovation in our “Total Cost of facilitate transactional packaging design Packaging” approach simplicity Invest in our people to Stronger supplier ensure we have the relationships to build skills and knowle
Slide 12: Reducing our Customers’ Costs – Total Cost of Packaging
Reducing our Customers’ Costs – Total Cost of Packaging 10% is materials and pack design Materials Storage Transport Damages Administration Productivity Customer Experience 90% of the Costs are Hidden
Slide 13: Key Strategic Actions
Key Strategic Actions Profitable Operational Acquisition People Organic Efficiency Growth Development Growth Launch more Clear Sales Focus Introduce RDC Best effective Practice Programme Complete current UK recruitment, acquisition pipeline induction and Added Value development through Total Cost of
Slide 14: Confidence in Macfarlane Future
Confidence in Macfarlane Future We are intent on maintaining the Our recent historical performance Macfarlane Group growth has demonstrated a successful performance and have the plans in track record of profit growth and place to deliver future growth both returns to shareholders in the UK and Europ