Bunzl plc · LSE:BNZL
Bunzl — Shareholder Meeting (April 2019)
18 slides from Bunzl's shareholder meeting presentation, April 2019
Slide 1: Annual General Meeting April 2019
2019 ANNUAL GENERAL MEETING APRIL 2019
Slide 2: Income Statement
INCOME STATEMENT GROWTH CONSTANT £m 2018 2017 REPORTED EXCHANGE Revenue 9,079.4 8,580.9 6% 9% Adjusted operating profit* 614.0 589.3 4% 7% Operating margin* 6.8% 6.9% Net finance expense (55.0) (46.7) Adjusted profit before income tax* 559.0 542.6 3% 6% Adjusted earnings per share* 129.6p 119.4p 9%
Slide 3: Dividend per Share
DIVIDEND PER SHARE (p) 26 years 50.2 of consecutive CAGR dividend increases >10% 4.0 2019 AGM APRIL 2019 3
Slide 4: Cash Conversion
CASH CONVERSION Average cash conversion* 97% TARGET 90% * Alternative performance measure – see Appendix 1 2019 AGM APRIL 2019 4
Slide 5: Uses of Free Cash Flow 2004 – 2018
USES OF FREE CASH FLOW 2004 – 2018 Consistently strong free cash flow supports long term DIVIDENDS 6%† CAGR >10% DIVIDEND PER SHARE growth £1.3bn STABLE DIVIDEND COVER c. 2.5x◊ 14%† ACQUISITIONS 157* ACQUISITIONS SINCE 2004 £3.2bn SELF-FUNDED ◊ Based on adjusted earnings per share * Includes the acq
Slide 6: Financial Summary
FINANCIAL SUMMARY REVENUE ORGANIC ADJUSTED REVENUE OPERATING GROWTH PROFIT* 9%◊ 4.3% 7%◊ CASH COMMITTED NET DEBT : CONVERSION* ACQUISITION EBITDA* SPEND 94% £183m 2.0X At low end of target range ADJUSTED DIVIDEND ROACE * EPS* PER SHARE 12%◊ 9% 26 years of growth 50.7% ◊ ◊ At constant exchange rates
Slide 7: Consistent and Proven Compounding Strategy
CONSISTENT AND PROVEN COMPOUNDING STRATEGY High ROIC PROFITABLE Use competitive despite ORGANIC advantage to significant GROWTH grow market share in a profitable way acquisition spend OPERATING MODEL ROIC Daily focus on making IMPROVEMENTS our business 15.0% more efficient ACQUISITION Use strong bal
Slide 8: Bunzl Unique Service Offering
BUNZL UNIQUE SERVICE OFFERING DESIGN / BESPOKE / INSTALLATION FULL RANGE MINIMISE PRINTED PRODUCT CUSTOMERS’ CUSTOMISED SERVICES STOCKED DELIVERY SLOTS MANAGEMENT WORKING CAPITAL PRODUCT BULKY LOW INNOVATION ESSENTIAL PRODUCT TRAINING VALUE CENTRES ITEMS AVAILABILITY PRODUCTS CONTRACT MOBILISATIONS
Slide 9: Sustainable Product Solutions
SUSTAINABLE PRODUCT SOLUTIONS Proactively SINGLE USE PLASTICS working with customers, • Essential food and beverage suppliers and packaging for practical, safe and hygienic transit other stakeholders to • Actively promoting sustainable promote and alternatives support a sustainable • Unique position
Slide 10: Sustainable Product Solutions – Case Studies
SUSTAINABLE PRODUCT SOLUTIONS – CASE STUDIES PRODUCT SUBSTITUTION TRUSTED PARTNER • Rapid change in customer demand for drinking • Contract catering customer of Bunzl straws in UK: • Customer’s client site serving 2,500+ meals per day, using 500+ Bunzl products Volume of plastic straws fell signif
Slide 11: Financial Track Record 2004 - 2018
FINANCIAL TRACK RECORD 2004 - 2018 Proven compounding REVENUE (£bn) ADJUSTED OPERATING PROFIT* (£m) 9.1 growth strategy 614 CAGR 2.4 169 c. 10% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 ADJUSTED EPS* (p) DIVIDEND PER SHARE (p) 04-12 restated on adoptio
Slide 12: Appendices
APPENDICES
Slide 13: Alternative Performance Measures
APPENDIX 1 ALTERNATIVE PERFORMANCE MEASURES This presentation includes various performance measures defined under International Financial Reporting Standards (‘IFRS’) as well as a number of alternative performance measures. The principal alternative performance measures used in this presentation are
Slide 14: Adjusted Operating Profit
APPENDIX 2 ADJUSTED OPERATING PROFIT ALTERNATIVE PERFORMANCE MEASURES £m 2018 2017 Operating profit 466.2 456.0 Adjusted for: Customer relationships amortisation 111.1 96.6 Acquisition related items 33.4 36.7 GMP equalisation charge 3.3 - Adjusted operating profit 614.0 589.3 Operating margin 6.8% 6
Slide 15: Adjusted Profit Before Income Tax
APPENDIX 3 ADJUSTED PROFIT BEFORE INCOME TAX ALTERNATIVE PERFORMANCE MEASURES £m 2018 2017 Profit before income tax 424.8 409.3 Adjusted for: Customer relationships amortisation 111.1 96.6 Acquisition related items 33.4 36.7 GMP equalisation charge 3.3 - Disposal of businesses (13.6) - Adjusted prof
Slide 16: Adjusted Profit for the Year
APPENDIX 4 ADJUSTED PROFIT FOR THE YEAR ALTERNATIVE PERFORMANCE MEASURES £m 2018 2017 Profit for the year 326.5 310.5 Adjusted for: Customer relationships amortisation 111.1 96.6 Acquisition related items 33.4 36.7 GMP equalisation charge 3.3 - Disposal of businesses (13.6) - Tax on adjusting items
Slide 17: Cash Flow and Cash Conversion
APPENDIX 5 CASH FLOW AND CASH CONVERSION £m 2018 2017 Adjusted operating profit * 614.0 589.3 Adjusted for: Non-cash items 31.8 28.9 Working capital movement (38.7) (15.6) Cash flow from operations◊ 607.1 602.6 Net capital expenditure (28.6) (32.9) Operating cash flow◊ 578.5 569.7 Cash conversion* 9
Slide 18: Disclaimer
DISCLAIMER No representation or warranty (express or implied) of any nature can be given, nor is any responsibility or liability of any kind accepted, by Bunzl plc (“Bunzl”) with respect to the completeness or accuracy of the content of or omissions from this presentation. This presentation is for i