Slide 1: Investing for growth
Investing for growth Investor Day Presentation: 3 October 2017
Slide 2: Objectives
Objectives 1 2 3 Further Action plans Meet and insight to develop discuss action into our and deliver plans with strategic upon them some of the growth wider team objectives McBride plc 1 Investor Day: 3 October 2017
Slide 3: Agenda
Agenda 1 Welcome 4 Break 2 Presentation on our ‘Grow’ strategy 5 Interaction with team through ‘Walking Boards’ sessions 3 Some financial considerations 6 ‘After talk’ and refreshments McBride plc 2 Investor Day: 3 October 2017
Slide 4: Major market trends
Major market trends 1 Inflationary pressures creating 4 Increasing requirements diverging growth dynamics for legislatively driven for Household categories Ecolabelling product offering 2 Brand proposition under 5 Increasing demand for pressure favouring Private convenience driving further Label opp
Slide 5: Market trends – in numbers
Household Market trends – in numbers Market shape – 0.5% CAGR in next 4 years Category trends Volume Value Dishwash Toilet Air 70% Growth 79% care care Brand Brand Laundry Insecticides Surface cleaners Bleach 30% 21% PL Polishes PL Market size Source: Nielsen/Euromonitor Source: Nielsen/Euromonitor
Slide 6: Three challenges become four – adding Private Label
“ Three challenges become four – adding Private Label to local, niche and digital. Source: Berenberg HPC Report 29/9/17 “ McBride plc 5 Investor Day: 3 October 2017
Slide 7: Where did it all start?
Where did it all start? McBride plc 6 Investor Day: 3 October 2017
Slide 8: Repair: Delivered on time and in full
Repair Delivered on time and in full McBride will substantially simplify its activities, covering customers, products, processes and organisation. We will launch a broad range of purchasing-driven saving initiatives, in further support of the simplification and rightsize the overhead base to reflect
Slide 9: Preparing for Growth: Our 2015 message
Preparing for Growth Our 2015 message McBride will drive a sustainable and profitable growth path based upon a greatly improved cost position and more efficient manufacturing and distribution. This will focus on fewer markets, categories and customers. McBride will develop customer specific value pr
Slide 10: Prepare phase: Addressing underperforming units
Prepare phase Addressing underperforming units McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward f
Slide 11: Prepare phase: Merging 'Prepare' actions into our growth platform
Prepare phase Merging ‘Prepare’ actions into our growth platform McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a c
Slide 12: Preparing for Growth: The category angle
Preparing for Growth 1 The category angle Laundry capsules Auto dishwash tablets Liquids platform Others • Above market average growth categories driven by • Market average growth • Zero or negative growth market dynamics and consumer behaviours categories requiring categories but good • High entry
Slide 13: Preparing for Growth: The channel perspective
Preparing for Growth 2 The channel perspective Traditional Retail Hard Discount Contract Manufacturing • Converging business • Increasing demand for models contract manufacturing services • Shift from short-term services to long-term contracts • Drive for scale, cost • Quality and service • Configur
Slide 14: Investing in the right asset configuration
Prepare phase 3 Investing in the right asset configuration Capex spend moving to full momentum • Asset planning and related investment completed: • key growth categories capacity and technology requirements • driving cost and performance efficiencies through consolidation • £100m in four years Capex
Slide 15: Opportunities new to McBride
Preparing for Growth 4 Opportunities new to McBride 1 Adjacent 2 Adjacent 3 Adjacent categories direct channels indirect channels • Within the traditional grocery • Bargain stores have now • Out of home cleaning (or channel McBride is not present overtaken hard discount Industrial and Institutional)
Slide 16: Catalysed through mergers and acquisitions
Preparing for Growth 5 Catalysed through mergers and acquisitions New • Extending geographical • No activity planned • Extend geographical reach growing together reach with our customers in • Channel entry ‘power’ categories Geographies • Organic development • White space • Accelerate our strategic
Slide 17: Agenda
Agenda 1 Welcome 4 Break 2 Presentation on our ‘Grow’ strategy 5 Interaction with team through ‘Walking Boards’ sessions 3 Some financial considerations 6 ‘After talk’ and refreshments McBride plc 16 Investor Day: 3 October 2017
Slide 18: Financial considerations: Delivering EBITA% of 7.5% and ROCE 25-30%
Financial considerations 1 Delivering EBITA% of 7.5% and ROCE 25-30% Growth sources CAGR 18-21 2.0%–2.5% –– Household 2.5%–3.0% Organic Contract –– PCA assumed flat growth Manufacturing Capital expenditure 27.0 2.0 Danlind –– Funded from existing reserves 23.0 1.0 Growth –– Depreciation cost 2.0 Dan
Slide 19: Financial considerations: Net debt and M&A
Financial considerations 2 Delivering EBITA% of 7.5% and ROCE 25-30% Net debt M&A –– New arrangements June 2017 £100m revenue • Headroom • Term • Flexibility • Accordion –– Debt/EBITDA 1.2x FY17 • 1.8x proforma post-Danlind McBride Danlind Funding costs –– New lower interest costs (-£2m) –– Range of
Slide 20: Agenda
Agenda 1 Welcome 4 Break 2 Presentation on our ‘Grow’ strategy 5 Interaction with team through ‘Walking Boards’ sessions 3 Some financial considerations 6 ‘After talk’ and refreshments McBride plc 19 Investor Day: 3 October 2017
Slide 21: Walking Boards
Walking Boards ‘MoF’ with Evolution in Winning in Limited Contract On our way to confidence Auto Dishwashing Assortment Discounters Manufacturing one billion capsules Martin McGee James Lomax Roland Wendt Heinz Tanghe Jean-Charles Philippon Stewart Bird June Graham Lee Robinson Rik De Vos Chris Smit
Slide 22: Discussion/refreshments
Discussion/refreshments McBride plc 21 Investor Day: 3 October 2017