Slide 1: McBride plc Results Presentation: 7 September 2021
McBride plc Results Presentation: 7 September 2021 Everyday cleaning products, expertly made
Slide 2: Agenda
1. Welcome 2. Compass – reminder Agenda 3. Key messages 4. Divisional reviews 5. Financial review 6. Outlook 7. Q&A 1 McBride plc Results Presentation: 7 September 2021
Slide 3: Welcome: Our speakers today
Welcome Our speakers today Chris Smith Mark Strickland Chief Executive Officer Chief Financial Officer 2 McBride plc Results Presentation: 7 September 2021
Slide 4: Compass – reminder
Compass – reminder 3 McBride plc Results Presentation: 7 September 2021
Slide 5: Our Compass vision
Our Compass vision Grow revenue to EBITA margin increase ROCE improvement €1 bn +2-4 ppts +5-10 ppts 4 McBride plc Results Presentation: 7 September 2021
Slide 6: Our proposition
Our proposition McBride will capitalise on firm foundations • #1 player (EU, UK) • Cost optimisation • Revenue growth • Revenue diversification • Sustainability commitments • Product innovation • Solid financial position • No significant additional capital/exceptionals 5 McBride plc Results Presenta
Slide 7: We have started the Compass journey
We have started the Compass journey • Operating model transformed • Senior team completed • Divisional and central teams in place • Strategic actions underway Mark Strickland Peter Ingelse • Cost savings programmes implemented Chief Financial Managing Director Officer Liquids • ESG framework created
Slide 8: Key messages
Key messages 7 McBride plc Results Presentation: 7 September 2021
Slide 9: FY21 key messages
FY21 key messages Full year revenues down 4% following a Covid-19 continues to impact demand – ‘year of two halves’: H1 growth of 1.7% was H2 normalisation of cleaners, followed by H2 decline of 9.5% laundry not recovered Exceptional input cost inflation impacted Q4 – Cost savings on track, Covid-19
Slide 10: Covid-19
Covid-19 Safe operating environments Demand patterns Adaptive and flexible workforce Operating restrictions Materials availability Transport availability and rapid cost rises and cost increase Compass reset delivered despite challenges Resilience of business 9 McBride plc Results Presentation: 7 Sep
Slide 11: ESG
ESG • New governance structure ge an • Framework established ch n s od tio • o mate ts pr era rt uc • Next twelve months – expanding coverage po Cli p n s o ra et and setting ambitions • t ast ll, • • wandfi n, et c l eratio E i n • Carbon footprint – external detailed inc Water assessment underway
Slide 12: Divisional reviews
Divisional reviews 11 McBride plc Results Presentation: 7 September 2021
Slide 13: Liquids
Liquids Divisional performance Reported Constant Year to Year to change currency change 30 June 2021 30 June 2020 B/(W) % B/(W) % Revenue £376.1m £383.2m (1.9) (2.5) Adjusted operating profit £11.7m £15.5m (24.5) (26.4) Adjusted operating profit margin 3.1% 4.0% — — • After good H1, weak run rates i
Slide 14: Liquids: Strategic progress – cost leadership
Liquids Strategic progress – cost leadership • Inflationary environment distraction • Service improvements • Market and product segmentation • Competition • Simplification programme • Sustainability • Cost initiatives 13 McBride plc Results Presentation: 7 September 2021
Slide 15: Unit Dosing
Unit Dosing Divisional performance Reported Constant Year to Year to change currency change 30 June 2021 30 June 2020 B/(W) % B/(W) % Revenue £181.5m £183.5m (1.1) (1.8) Adjusted operating profit £16.7m £17.2m (2.9) (4.0) Adjusted operating profit margin 9.2% 9.4% — — • H2 weaker, mostly laundry • S
Slide 16: Unit Dosing: Strategic progress – product leadership
Unit Dosing Strategic progress – product leadership • Innovation pace – winning business • Cost competitiveness • Product development pipeline • Competition • Driving flexibility • Sustainability • Laundry capsules portfolio 15 McBride plc Results Presentation: 7 September 2021
Slide 17: Powders
Powders Divisional performance and strategic progress Reported Constant Year to Year to change currency change 30 June 2021 30 June 2020 B/(W) % B/(W) % Revenue £66.3m £78.2m (15.2) (15.9) Adjusted operating profit (£2.3m) (£4.1m) 43.9 45.2 Adjusted operating profit margin (3.5%) (5.2%) — — • Weak c
Slide 18: Aerosols
Aerosols Divisional performance and strategic progress Reported Constant Year to Year to change currency change 30 June 2021 30 June 2020 B/(W) % B/(W) % Revenue £34.0m £35.2m (3.4) (4.2) Adjusted operating profit £0.8m £2.3m (65.2) (63.6) Adjusted operating profit margin 2.4% 6.5% — — • Sanitiser v
Slide 19: Asia Pacific
Asia Pacific Divisional performance and strategic progress Reported Constant Year to Year to change currency change 30 June 2021 30 June 2020 B/(W) % B/(W) % Revenue £24.4m £26.1m (6.5) (5.4) Adjusted operating profit £1.9m £3.0m (36.7) (34.5) Adjusted operating profit margin 7.8% 11.5% — — • H1 vs
Slide 20: Financial review
Financial review 19 McBride plc Results Presentation: 7 September 2021
Slide 21: Financial headlines
Financial headlines Adjusted operating Adjusted profit Revenue profit before tax £682.3m £24.1m £19.9m (2020: £706.2m) (2020: £28.3m) (2020: £24.2m) Debt/adjusted Adjusted ROCE EBITDA Free cash flow 11.5% 2.6x £33.1m (2020: 12.8%) (2020: 2.1x) (2020: £64.9m) 20 McBride plc Results Presentation: 7 Se
Slide 22: Divisional performance – overview
Divisional performance – overview Revenues £m Adjusted EBITA £m Constant currency variances Constant currency variances 706.2 28.3 (7.1) (2.0) 1.8 682.3 (11.9) (1.2) (1.7) 0.9 24.1 (3.8) (1.5) (0.5) (1.1) FY20 Liquids Unit Powders Aerosols Asia FY21 FY20 Liquids Unit Powders Aerosols Asia Corporate
Slide 23: Income statement
Income statement Gross margin Adjusted EBITDA Adjusted operating profit Finance costs % £m margin £m % 0.7 0.4 0.6 34.6.% 34.7% 49.1 4.0% 4.0% 33.3% 47.3 3.5% 3.7 3.5 3.8 45.5 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Total Total Total Interest costs Pension interest • Slight impro
Slide 24: Costs update
Costs update Divisional price index Distribution costs as Administrative (overhead) % of sales costs as % of sales 0.8% 0.7% 3.5% 3.4% 7.8% 8.1% 8.2% 18.2% 18.9% FY19 FY20 FY21 FY20 FY21 Jul Jun Jun Jun 2018 2019 2020 2021 Divisional direct Central recharge Powders PLC costs Unit Dosing Liquids • Si
Slide 25: Cost optimisation
Cost optimisation • £0.5m cost savings in H2 2021, largely as a result of Compass organisation redesign • Committed to save £20m annualised by end of 2023 • 2022 target of £10m in year savings vs 2021: • Barrow closure • product complexity/SKU reduction • warehouse and distribution • overhead saving
Slide 26: Other financials
Other financials Exceptional costs Capex and depreciation Pensions Returns to shareholders £m £m £m £m 2.2 31.1 31.5 31.9 1.6 3.7 3.8 1.6 5.3 5.2 4.1 3.3 0.80 0.81 0.81 6.8 11.1 8.0 17.1 18.4 18.8 17.1 22.4 17.6 6.9 6.9 5.4 5.2 2.6 2.7 2.7 2.0 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY17 FY18 F
Slide 27: Cash, net debt and banking facilities
Cash, net debt and banking facilities Cash flow and net debt £m 45.5 (9.4) (4.0) (15.3) (101.5) (23.6) 2.2 (3.2) (2.0) (7.1) (118.4) Net debt Adjusted Working Pensions Exceptional Capital Interest Dividend Share Non-cash Net debt (incl. IFRS 16) EBITDA capital items and expenditure on borrowings (fi
Slide 28: Outlook
Outlook 27 McBride plc Results Presentation: 7 September 2021
Slide 29: Full year outlook unchanged
Full year outlook unchanged • Volumes consistent with Q4 2021 levels • Laundry volumes subdued, some recovery anticipated • Asia business still in partial lockdown • Input cost inflation – to remain high in H1 • Price increase progressively improving margins • Cost actions • We expect a weak H1, wit
Slide 30: Q&A
Q&A 29 McBride plc Results Presentation: 7 September 2021
Slide 31: Appendices
1. Income statement 2. Segmental reporting 3. Exceptional items Appendices 4. Balance sheet 5. Cash flow 6. Use of cash 7. Funding headroom 30 McBride plc Results Presentation: 7 September 2021
Slide 32: Appendix 1: income statement
Appendix 1: income statement Constant currency(1) 2021 2020 2020 Continuing operations £m £m y/y £m y/y Revenue 682.3 706.2 (3.4%) 710.6 (4.0%) Gross profit 237.0 244.2 (2.9%) 248.5 (4.6%) Gross margin 34.7% 34.6% 0.1 ppt 35.0% (0.3 ppt) Distribution costs (56.0) (57.3) (2.3%) (57.5) (2.6%) Administ
Slide 33: Appendix 2: segmental reporting
Appendix 2: segmental reporting Constant currency 2021 2020 2020 Revenue £m £m y/y £m y/y Liquids 376.1 383.2 (1.9%) 385.6 (2.5%) Unit Dosing 181.5 183.5 (1.1%) 184.9 (1.8%) Powders 66.3 78.2 (15.2%) 78.8 (15.9%) Aerosols 34.0 35.2 (3.4%) 35.5 (4.2%) Asia Pacific 24.4 26.1 (6.5%) 25.8 (5.4%) Group t
Slide 34: Appendix 3: exceptional items
Appendix 3: exceptional items 2021 2020 £m £m UK Aerosols closure 0.4 0.1 Factory footprint review 0.3 9.4 Review of strategy, organisation and operations 4.4 1.3 Logistics transformation programme 1.1 — Total continuing operations 6.2 10.8 Sale of PC Liquids business 0.7 0.3 Total discontinued oper
Slide 35: Appendix 4: balance sheet
Appendix 4: balance sheet 2021 2020 £m £m y/y Goodwill and other intangible assets 27.9 28.4 (1.8%) Property, plant and equipment 129.8 134.7 (3.6%) Right-of-use assets 10.0 7.3 37.0% Other non-current assets 22.9 13.8 65.9% Working capital 41.6 37.7 10.3% Net other debtors/(creditors) 1.0 (5.2) (11
Slide 36: Appendix 5: cash flow
Appendix 5: cash flow 2021 2020 £m £m y/y Adjusted operating profit 24.1 28.3 (14.8%) Depreciation property, plant and equipment 17.6 17.1 2.9% Depreciation right-of-use assets 3.8 3.7 2.7% Share-based payments 0.3 0.4 (25.0%) Additional cash funding on pension scheme (4.0) (4.0) 0.0% Impairment of
Slide 37: Appendix 6: use of cash and reconciliation of net debt
Appendix 6: use of cash and reconciliation of net debt (14.3) 70 Foreign 5.3 exchange Payment to (2.0) shareholders Non-cash 60 (7.9) items Share buy-back and (7.1) Employee Benefit Trust (7.3) Taxation 50 3.8 Other items Movement (16.9) in net debt 0.2 (3.2) Financing cost Proceeds from sale of PPE
Slide 38: Appendix 7: funding headroom
Appendix 7: funding headroom Committed Facility Drawn headroom £m £m £m Committed facilities: – revolving facilities (May 2026) 150.2 (77.0) 73.2 – invoice discounting facility 47.8 (47.8) — – other loans 2.1 (2.1) — – leases 11.3 (11.3) — Total committed facilities 211.4 (138.2) 73.2 Uncommitted fa