Macfarlane Group Plc · LSE:MACF
Macfarlane — Shareholder Meeting (May 2010)
19 slides from Macfarlane's shareholder meeting presentation, May 11, 2010
Slide 1: Macfarlane Group PLC 111th Annual General Meeting
MACFARLANE GROUP PLC 111th Annual General Meeting 11th May 2010
Slide 2: CEO Presentation
MACFARLANE GROUP PLC CEO Presentation
Slide 3: 2009 Performance, Key Strategic Actions, Future Outlook, Conclusions
2009 Performance Key Strategic Actions Future Outlook Conclusions
Slide 4: 2009 Market Conditions
2009 Market Conditions UK demand for packaging was weak with some sectors showing sharp declines eg automotive, electronics, house removal Market pricing became increasingly competitive as demand weakened Manufacturers attempted to enter those market sectors traditionally serviced by Distributors Cu
Slide 5: 2009 Performance
2009 Performance Macfarlane Group Sales decline versus 2008 of 6% resulting in PBT before exceptional costs reducing by 14% versus 2008. Net bank borrowings at £6.4m marginally lower than 2008 Packaging Distribution Despite sales reduction of 5%, profit increase of 34% versus 2008 driven by gross ma
Slide 6: Sales per Employee
Sales per Employee* £000 277 Best Practice Sales 220 223 Opportunity ** 205 193 172 174 £24m 133 2003 2004 2005 2006 2007 2008 2009 Sales Per Emloyee Best Practice * These figures are for the Packaging Distribution business only. ** The Best practice sales opportunity is based on all 16 RDCs achievi
Slide 7: Sales per Square Foot
Sales per Square Foot * £ Best Practice Sales 233 Opportunity ** 172 173 137 137 150 158 £47m 130 2003 2004 2005 2006 2007 2008 2009 Sales per Square Foot Best Practice * These figures are for the 16 RDCs in the Packaging Distribution business only ** The Best practice sales opportunity is based on
Slide 8: Return on Sales by RDC
Return on Sales by RDC * 12.00% Best Practice 10.2% Profit (ROS) 10.00% Opportunity ** 8.00% 6.00% £4.9m 4.00% 2.00% 0.00% -2.00% 2008 2009 • These figures are for the 16 RDCs in our Packaging Distribution business. Return on sales = RDC Profit/(loss) / RDC Sales x 100 and is expressed as a % return
Slide 9: Customer Feedback
Customer Feedback Overall Satisfaction 2009 versus 2008 Increased to 87% from 83% with 41% rating excellent compared to 33% Level of dissatisfaction fell to 3% from 5% in 2009 Key areas of action to continue to reduce level of dissatisfaction: - Earlier communication on late deliveries - Improved pr
Slide 10: Packaging - Strategic Actions
Packaging - Strategic Actions Accelerate Existing Actions (Potential £6m PBT per annum): “RDC Best Practice” – New Business, Purchasing, Operations Improve product penetration in the existing customer base Increase the momentum in the partnership between the Packaging Manufacturing and Distribution
Slide 11: Macfarlane Packaging website
C MACFARLANE Sa Fie SLA E OUR SERVICES ORDERING FROM US - We are the UK's Largest Packaging Distributor - Get FREE delivery on all orders over £50 (ex vat) Username or Email: BIGG Password only £3.99 when you spend less than £50! (ex vat) - Low delivery costs: - Cheapest Prices Guaranteed” Popular B
Slide 12: Third Party Logistics
= ® MACFARLANE GROUP Third Party Logistics UNIPART === LOGISTICS sa—orce yy Eddie Stobart (7) a. %e KUEHNE-/NAGEL COeVAN wines & MEGACARRIER www.macfarlanegroup.net
Slide 13: Presentational Packaging
THE WHITE COMPANY www.thewhitecompany.com
Slide 14: Labels - Strategic Actions
Labels - Strategic Actions Maintain self adhesive labels sales focus on developing the optimal base of branded and own brand customers Accelerate the current Reseal-Ittm new business momentum in the USA Launch pre-applied Reseal-Ittm range to enable customers to switch more easily to re-sealable lab
Slide 15: Reseal-it Labels
= ® MACFARLANE GROUP www.macfarlanegroup.net
Slide 16: Reseal-it Labels
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Slide 17: Future Outlook
Future Outlook Our success in managing through an extremely difficult 2009 gives us confidence in our ability to address future challenges. The uncertainty in the UK economy will continue to create a period of challenge and our immediate priority is to successfully manage supplier price inflation. W
Slide 18: Conclusions
Conclusions The Macfarlane Group responded effectively to the difficult economic conditions experienced in 2009. The Macfarlane Group is well positioned to benefit as the economy recovers. The successful implementation of the existing action plans has the potential to deliver performance improvement
Slide 19: Macfarlane Group PLC 111th Annual General Meeting
MACFARLANE GROUP PLC 111th Annual General Meeting 11th May 2010