Macfarlane Group Plc · LSE:MACF
Macfarlane — Shareholder Meeting (May 2008)
18 slides from Macfarlane's shareholder meeting presentation, May 20, 2008
Slide 1: Macfarlane Group PLC 109th Annual General Meeting
MACFARLANE GROUP PLC 109th Annual General Meeting 20th May 2008
Slide 2: CEO Presentation
MACFARLANE GROUP PLC CEO PRESENTATION
Slide 3: Agenda
• Recent History • Progress to Date • Key Opportunities • Achieving our Potential • Conclusions
Slide 4: Recent History
Recent History In 2003, on sales of £131.0m, pre-tax losses were (£18.5m) and at its peak debt was (£35.0m). All but two of seven businesses within the Group were loss making. Customer service levels in Packaging Distribution were below 70%. Suppliers were evaluating alternative options due to conce
Slide 5: Macfarlane Group PLC - 2003
Macfarlane Group PLC - 2003 “…I have little “…Macfarlane look confidence in as if they may be Macfarlane going under as far supplying me as I’m concerned…” correctly and their staff do not know what they are doing…” Supplier “…I do not feel supported or capable of managing the Customer Employee cust
Slide 6: Action Plan
Action Plan “Business Basics Plan” introduced in 2004, focus on: Improving service to customers Reducing the cost base Rebuilding supplier relationships Engaging with employees and restoring morale Exiting non-strategic businesses Disposing of non-core assets
Slide 7: Significant Progress Achieved to Date
Significant Progress Achieved to Date The Group has exited – Packaging Manufacture in Scotland, Hungary, US/Mexico and the Brands electronics business All businesses are now profitable with one at break-even Both customers and suppliers see Macfarlane as a key partner Employee morale has recovered,
Slide 8: Strong "Blue Chip" Customer Base
Strong “Blue Chip” Customer Base
Slide 9: Investing in our Customers
Investing in our Customers Web based service for customers Online ordering, usage monitoring and waste packaging analysis for customers Investment in production capability, Improved practicality for consumers creating cost effectiveness and efficiencies and differentiation for brand owners for our c
Slide 10: Developing our Environmental Expertise
Developing our Environmental Expertise “World Class” programme • Worked with Macfarlane to change packaging from 83% virgin material to 93% recycled and recyclable Logistics routing software • Reducing the environmental impact of Macfarlane deliveries • Will be in place at all RDCs by the end of 200
Slide 11: Macfarlane Group PLC - 2007
Macfarlane Group PLC - 2007 “…Macfarlane “…we source a are the best route range of products to the UK market on a global basis, for our Macfarlane rates products…” as one of our top 3 global suppliers…” “…I left Macfarlane because things were Supplier so bad. I heard they were recovering Customer an
Slide 12: Key Opportunities
Key Opportunities In Packaging we plan to: Ensure consistency of performance at all sites Fully utilise our national capability with major accounts Accelerate our response to environmental pressures Better leverage our purchasing scale Execute our strategic acquisition programme Strengthen the relat
Slide 13: Sales per Employee
Sales per Employee* £000 Best Practice Best Practice 238 Sales 205 Opportunity ** 193 172 174 £17m 133 2003 2004 2005 2006 2007 Sales Per Employee Best Practice * These figures are for the Packaging Distribution business only. ** The Best Practice sales opportunity is based on all 15 RDCs achieving
Slide 14: Sales per Square Foot
Sales per Square Foot * £ Best Practice Best Practice 225 Sales 172 150 Opportunity ** 130 137 137 £22m 2003 2004 2005 2006 2007 Sales per Square Foot Best Practice * These figures are for the 15 RDCs in the Packaging Distribution business only ** The Best Practice sales opportunity is based on all
Slide 15: Return on Sales by RDC
Return on Sales by RDC * 8.00% Best 6.00% Practice Profit (ROS) 4.00% Opportunity 2.00% ** 0.00% -2.00% £4m -4.00% -6.00% -8.00% 2006 2007 * These figures are for the 15 RDCs in our Packaging Distribution business. Return on sales = RDC Profit/(loss) / RDC Sales x 100 and is expressed as a % return.
Slide 16: Key Opportunities
Key Opportunities In Labels we plan to: Continue to build our relationships with key customers Fully utilise the competitive differentiation of the ReSeal-It range of labels Maintain the efficiency of our manufacturing operations through selective investments in new technology Build our sales capabi
Slide 17: Achieving our Potential
Achieving our Potential The Packaging business has the capability to double its share of the UK market through a combination of organic growth and key strategic acquisitions Customer demands will create opportunities to expand the Packaging business into mainland Europe The Labels business will grow
Slide 18: Conclusions
Conclusions Since 2003 Macfarlane Group has come through a period of recovery, rebuilding and reconstruction The Group is now more focused and more capable, with stronger supplier and customer relationships and a higher quality team of motivated people The current Group businesses are well positione