Slide 1: Pro-Pac Packaging Limited Half-Year Results - 2020
Pro-Pac Packaging Limited Half-Year Results - 2020 27 February 2020 CEO & Managing Director Tim Welsh
Slide 2: Important Information
1 Pro-Pac Packaging Limited: Half-Year Results Important Information This Presentation contains the summary information about the current activities of Pro-Pac Packaging Any forecasts or other forward-looking statements contained in this Presentation are subject to known Limited and its controlled e
Slide 3: About Pro-Pac Packaging
2 Pro-Pac Packaging Limited: Half-Year Results About Pro-Pac Packaging Pro-Pac Packaging is an innovative Industrial, Rigid and Flexible packaging company with a diversified distribution and manufacturing network throughout Australia and New Zealand Flexibles Industrial Rigid • With its Australian a
Slide 4: Overview: Half Year Results Summary
3 Pro-Pac Packaging Limited: Half-Year Results Overview Half Year Results Summary • Revenues down 2.4% to $251.0 million (pcp $257.3 million) • Statutory profit after tax up to $7.6 million (pcp statutory net loss after tax of $144.3 million) • EBITDA* up 4.7% to $18.1 million (pcp $17.3 million) •
Slide 5: Our History
4 Pro-Pac Packaging Limited: Half-Year Results Our History 2007 2013 2018 PB Packaging Acquired Eco Food Pack Acquired Polypak Packaging Acquired Rigid Bottle Distribution Thermoform Produce Trays Specialty Meat Packaging Australia Australia New Zealand Pro Pac Packaging Est 1993 2005 2010 2017 2018
Slide 6: Delivering Improvement
5 Pro-Pac Packaging Limited: Half-Year Results Delivering Improvement Last 12 months has seen management drive considerable improvement in the key operating parameters, building a platform for the combined business to succeed Zero Harm Identifying Improving Journey Right Team Business Mix Company wi
Slide 7: A Zero Harm Focus
6 Pro-Pac Packaging Limited: Half-Year Results A Zero Harm Focus Returning all our people home safely at the end of the day is our first priority Targeting Zero Harm Lost Time Injury Frequency Rate (LTIFR) Stop For Safety & People General Manager Rolling Weekly cadence with entire Health, Safety & E
Slide 8: The Right Team
7 Pro-Pac Packaging Limited: Half-Year Results The Right Team New leadership implemented at the executive and non-executive levels shortly before 30 June 2019, to reposition Pro- Pac Packaging to execute on growth as a combined, larger packaging manufacturer and distributor Jonathan Ling Tim Welsh N
Slide 9: Financial Results Summary
8 Pro-Pac Packaging Limited: Half-Year Results Financial Results Summary Stronger balance sheet, reduced leverage and improved profitability delivered Post- Adopt Pre- 1H20 performance includes: AASB 16 AASB 16 AASB 16 A$ million 1H20 1H20 1H20 1H19 Change • Revenue of $251.0m (down 2.4% on pcp) due
Slide 10: Flexibles Packaging
9 Pro-Pac Packaging Limited: Half-Year Results Flexibles Packaging With its Australian and New Zealand manufacturing and distribution network, Pro-Pac Packaging provides bespoke flexible packaging solutions specifically tailored for the industrial, food and beverage, health and agriculture sectors 1
Slide 11: Industrial Packaging
10 Pro-Pac Packaging Limited: Half-Year Results Industrial Packaging A one stop shop for primary, secondary and tertiary packaging with deep expertise in food, beverage, agriculture, retail and health sectors 1H20 Review A$ millions 1H20 1H19 Change 1H20 performance includes: Revenue 67.3 77.6 (13.2
Slide 12: Rigid Packaging
11 Pro-Pac Packaging Limited: Half-Year Results Rigid Packaging A solution oriented business that focusses on partnering with the small to medium customers seeking technical and business support with tailored, personalised product and supply chain services 1H20 Review A$ millions 1H20 1H19 Change 1H
Slide 13: Disciplined Cash Flow Management
12 Pro-Pac Packaging Limited: Half-Year Results Disciplined Cash Flow Management A focus on cash flow management led to a further reduction in net debt during seasonally high requirements in the period to 31 December 1H20 Review Cash Management Embedded cash management discipline delivers: A$ millio
Slide 14: Improving the Balance Sheet
13 Pro-Pac Packaging Limited: Half-Year Results Improving the Balance Sheet Our capital management priorities are to strengthen the balance sheet, provide financial flexibility for growth and shareholder returns 1H20 Review Balance Sheet Continued focus on working capital delivers: A$ millions DEC-1
Slide 15: Business Priorities
14 Pro-Pac Packaging Limited: Half-Year Results Business Priorities
Slide 16: Business Priorities
15 Pro-Pac Packaging Limited: Half-Year Results Business Priorities Key Priorities • Build a sustainable safety culture • Invest and grow Flexibles business and optimize manufacturing footprint • Establish a stable platform for growth, focused on customer – People, Processes and Systems • Strengthen
Slide 17: Outlook
16 Pro-Pac Packaging Limited: Half-Year Results Outlook
Slide 18: Outlook
17 Pro-Pac Packaging Limited: Half-Year Results Outlook ‘We expect a continuation of our improved business performance to achieve a full year 2020 EBITDA* above the prior year, subject to macroeconomic conditions and Coronavirus supply chain disruptions’ * Before one-off, non-recurring items and pre
Slide 19: Appendix
18 Pro-Pac Packaging Limited: Half-Year Results Appendix
Slide 20: Adopting AASB 16 Leases
19 Pro-Pac Packaging Limited: Half-Year Results Adopting AASB 16 Leases AASB 16 Leases became effective for Pro-Pac Packaging on 1 July 2019, requiring operating lease arrangements to be recognised on balance sheet The impact on the profit or loss for 1H20 is shown in the table below: Impact of adop
Slide 21: Reconciliations
20 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to EBIT & EBITDA Post- Adopt Pre- AASB 16 AASB 16 AASB 16 A$ millions 1H20 1H20 1H20 1H19 Change Profit/(loss) before tax 8.8 (1.8) 10.6 (142.4) 153.0 Add: one-off, non-recurring items - - - 151.7 (151.7) Add: finance cos
Slide 22: Reconciliations
21 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to Operating Cash Flow Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 1H20 1H20 1H20 1H19 Change Net cash flows from/(used in) operating activities 11.1 4.0 7.1 (1.6) 8.7 Add: income tax paid 0.5 - 0.5 1.7 (1.2) Add
Slide 23: Reconciliations
22 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation to Gearing Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 1H20 1H20 1H20 JUN-19 Change LTM EBITDA 42.7 13.8 28.9 28.1 0.8 Add: unconsolidated LTM EBITDA from acquisitions* - - - 1.3 (1.3) LTM Adjusted EBITDA 42.7 13
Slide 24: Reconciliations
23 Pro-Pac Packaging Limited: Half-Year Results Reconciliations Reconciliation of Significant Items Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 1H20 1H20 1H20 1H19 Change Impairment losses - - - 149.0 (149.0) Onerous lease and exit costs - - - 0.8 (0.8) Acquisition and integration costs 1.1
Slide 25: Definitions of Non-IFRS Financial Measures
Definitions of Non-IFRS Financial Measures 1H19 means for the half-year ended 31 December 2018 1H20 means for the half-year ended 31 December 2019 Adjusted EBITDA means EBITDA, plus any unconsolidated LTM EBITDA attributable to operations acquired Capital expenditure represents payments for property