Slide 1: Year End Results
Year End Results PZ Cussons Plc 31 May 2018
Slide 2: Group Highlights
Group Highlights Revenue Profits Initiatives Net debt Dividend Reported revenue 5.8% Adjusted operating Group wide initiatives Strong balance sheet Full year dividend lower than prior year profit 18.2% lower underway to with net debt at 1.5 x maintained at 8.28p and 2.3% lower on a largely as a resu
Slide 3: Regional Macro Themes
Europe Regional • UK retail trading conditions remain challenging Macro • Volumes very sensitive to price points • Beauty robust in both UK and US Themes All regions • Consumer disposable Asia Africa income under pressure • Cost inflation ahead of • Australia retail trading • Strong foreign exchange
Slide 4: Group Results
Group Results Year ended Year ended Reported Constant currency 31 May 2017 31 May 2018 % change % change (Restated)* Revenue £762.6m £809.2m (5.8%) (2.3%) Adjusted operating profit £85.7m £104.8m (18.2%) (15.7%) Adjusted profit before tax £80.1m £102.0m (21.5%) (19.0%) Adjusted EPS 13.39p 16.42p (18
Slide 5: Africa results
Africa results 2018 2017 Reported Constant currency change % change % Revenue1 £275.6m £305.6m (9.8%) (2.0%) Operating profit £6.3m £28.3m (77.7%) (76.1%) § Nigeria exchange rates relatively stable and foreign exchange reserves in the country strong as a result of higher oil price § Significantly lo
Slide 6: Asia results
Asia results 2018 2017 Reported Constant currency change % change % Revenue £212.0m £222.7m (4.8%) (1.8%) Operating profit £18.6m £15.9m 17.0% 21.6% § Continued improvement in profitability in Australia across all categories of Personal Care, Home Care and Food & Nutrition § Good mix improvement in
Slide 7: Europe results
Europe results 2018 2017 (restated) Reported Constant currency change % change % Revenue £275.0m £280.9m (2.1%) (3.0%) Operating profit £60.8m £60.6m 0.3% 0.4% § UK Washing and Bathing performance lower than the previous year due to tighter UK retail landscape, with volumes remaining very sensitive
Slide 8: Cash Flow and Net Debt
Cash Flow and Net Debt 83.6 (24.5) (143.8) (18.0) (165.4) (34.6) (22.2) (5.9) Net debt 2017 Operating cash flow Working capital Taxation Dividends Capex Other Net debt 2018 (ex WC) § Strong balance sheet with net debt of 1.5 x EBITDA § Working capital improved since half year reported levels of c.£4
Slide 9: Looking forward
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Slide 10: Business Model
Business Model CAN DO values 3 Regions: Flexible and • Europe low cost • Asia supply chain • Africa Business Model 4 Product Categories: • Personal Care • Home Care • Food & Nutrition • Electricals G4B Ethics and Governance 10
Slide 11: FY19 and beyond: Group wide initiatives
FY19 and beyond…… Group wide initiatives A review of product A sharper consumer focus costs with focus on driving a re-prioritisation areas such as of the Group’s new product A detailed review packaging pipeline in all markets of the Group’s to focus on fewer, bigger product portfolio in projects Ni
Slide 12: Fewer, bigger projects: Africa HPC
Fewer, bigger projects… Africa Home and Personal Care (HPC) 12
Slide 13: Fewer, bigger projects: Africa Food & Nutrition and Electricals
Fewer, bigger projects… Africa Food & Nutrition and Electricals 13
Slide 14: Fewer, bigger projects: Asia Indonesia
Fewer, bigger projects… Asia Indonesia 14
Slide 15: Fewer, bigger projects: Asia Australia
Fewer, bigger projects… Asia Australia 15
Slide 16: Fewer, bigger projects: UK Washing & Bathing
Fewer, bigger projects… Europe UK Washing & Bathing 16
Slide 17: Fewer, bigger projects: Beauty UK and US
Fewer, bigger projects… Europe Beauty –UK and US 17
Slide 18: Summary
Summary • Market shares remain strong in all regions despite a challenging year • Focus on fewer, bigger product launches to further differentiate brands • Ongoing focus on product cost and overheads through further optimisation of the operating model • Balance sheet remains strong • Group is well p
Slide 19: Thank you
Thank you Contact Brandon Leigh Chief Financial Officer brandon.leigh@pzcussons.com Tel: +44 161 435 1236 19