Slide 1: Results for the year ended 30 September 2011
RESULTS For the year ended 30 September 2011
Slide 2: Agenda
AGENDA Highlights Patrick Coveney, CEO Financial Review Alan Williams, CFO Operating Review & Strategy Patrick Coveney, CEO Outlook Patrick Coveney, CEO Q&A Open to the Floor 2
Slide 3: Highlights
HIGHLIGHTS • Group revenue of £804.2m, an increase of 8.7%, 4.3% on a like for like basis* • Group operating profit** from continuing operations of £51.5m in line with FY10 • Continuing adjusted EPS*** of 13.9p, up 20.9% • Proposed final dividend of 2.4 cent per share, making a total distribution fo
Slide 4: Financial Review
FINANCIAL REVIEW Alan Williams Chief Financial Officer
Slide 5: Financial Summary
FINANCIAL SUMMARY FY11 Versus FY10 Revenue £804m +8.7% Operating profit* £51.5m Unch. Operating margin* 6.4% 0.6% Effective tax rate 13% 4.0% Continuing adjusted EPS** 13.9p +20.9% * before exceptional items and acquisition related amortisation ** before exceptional items, pension finance items, a
Slide 6: Convenience Foods
CONVENIENCE FOODS Continuing • Encouraging sales and profit FY11 FY10 £m £m % Change performance despite challenging consumer & retail environment Revenue 732.2 678.1 +8.0%** • Three largest businesses performing well Operating profit* 49.3 46.8 +5.3% • Margins remain strong • Successful mitigation
Slide 7: Ingredients & Property
INGREDIENTS & PROPERTY Continuing FY11 FY10 • Division represents less than 10% of Group % Change activity £m £m • Increase in revenue price-led - commodity inflation in edible oils Revenue 72.0 61.8 +16.6% • Reduction in operating profit largely explained by year-on-year decrease in property tradin
Slide 8: Decreasing Finance Cost
DECREASING FINANCE COST £m FY11 FY10 Bank interest payable (16.9) (21.9) Unwind discount to present value 0.2 (0.1) Finance cost* (16.7) (22.0) Pension charge (1.8) (0.2) FX/Fair value of derivatives 4.6 (1.5) Net finance charge (13.9) (23.8) * before fair value, FX and pensions 8
Slide 9: Tax Charge
TAX CHARGE •The Group effective tax rate has reduced to 13% (2010: 17%) •Exceptional release of tax provision of £11.7m relates to resolution of a number of outstanding tax positions - also enabled the reduction in the current year ETR •With the resolution of these tax positions and given the Uniq t
Slide 10: EPS and Dividend
EPS AND DIVIDEND EPS EPS (pence) FY11 FY10 • Calculations rendered more complex by Rights Issue • Continuing adjusted EPS up 20.9% (prior to Adjusted EPS* - continuing EPS impact of Rights Issue) 13.9 11.5 - discontinued EPS - 2.9 Total adjusted EPS 13.9 14.4 Dividend Dividend (€cent) FY11 FY10 • Fi
Slide 11: Net Exceptional Costs
NET EXCEPTIONAL COSTS Income Statement FY11 Exceptionals £m Transaction costs (19.4) Legal settlement (3.6) Restructuring (1.3) Pre tax impact (24.3) Release of tax provisions and tax relief on exceptional items 12.6 Post tax impact (11.7) 11
Slide 12: Impact of Uniq Acquisition on Financial Statements
IMPACT OF UNIQ ACQUISITION ON FINANCIAL STATEMENTS • All conditions fulfilled on 23 September 2011 • Revenue recorded by Uniq post the acquisition not material to the P&L • Uniq balance sheet incorporated at 30 September 2011 • Net assets excluding goodwill and cash acquired at fair value of £25.8m
Slide 13: Cashflow
CASHFLOW £m FY11 FY10 EBITDA 69.9 69.7 Working capital movement -1.6 21.3 Net capex -23.0 -21.3 Operating cashflow 45.3 69.7 Cashflow from discontinued operations - -14.2 Exceptionals -24.4 -5.6 Interest & tax -22.2 -25.2 Settlement of derivatives -4.3 -8.3 Pension deficit funding -11.6 -8.9 Dividen
Slide 14: Net Debt & Leverage
NET DEBT & LEVERAGE £m FY11 FY10 Reported net debt •Net debt at 30 September incorporated Rights Issue proceeds and Uniq acquired net debt but Net debt per balance sheet 139.8 164.1 was prior to payment of consideration to Uniq Rights Issue proceeds net of 68.9 - shareholders related fees Uniq acqui
Slide 15: Borrowings Profile
BORROWINGS PROFILE • Refinancing of primary bank facility of £280m in May 2011 for a 5 year term at improved rates • In September 2011 a new bilateral loan facility of £60m put in place as partial funding of Uniq acquisition • Total committed facilities of £443m • Average debt maturity extended from
Slide 16: Summary
SUMMARY FINANCIAL PERFORMANCE • Good performance in Convenience Foods despite challenging market conditions • Materially lower bank interest payable • Sustainable reduction in Effective Tax Rate • Continuing adjusted EPS growth of 20.9% to 13.9 pence • Absolute dividend distribution maintained - wit
Slide 17: Operating Review, Strategy & Outlook
OPERATING REVIEW, STRATEGY & OUTLOOK Patrick Coveney Chief Executive Officer
Slide 18: Operating and Strategic Review
OPERATING AND STRATEGIC REVIEW 1.How we performed in FY11 2.Our strategy going forward 3.Our FY12 outlook 18
Slide 19: Our FY11 Performance
1. OUR FY11 PERFORMANCE • Good performance in Convenience Foods despite market Revenue +8.0%* growth challenges Operating +5.3% profit growth** • Continued delivery of above market revenue and market Operating share gains across Convenience Foods portfolio margin 6.7% • Enhanced reputation with cust
Slide 20: Input Price Volatility
1. INPUT PRICE VOLATILITY APPROACH TO MANAGEMENT OF INFLATION OUTCOMES •FY10 overall commodity price movements •‘Cash margins’ broadly sustained, with all negligible raw material and packaging inflation offset by range and pricing initiatives •Overall FY11 inflation at 4% - Significant inflation pre
Slide 21: Performance Review - Food to Go
1. PERFORMANCE REVIEW - FOOD TO GO No. 1 • Strong overall category performance in sandwiches with share gains with core customers 36% underpinning growth in FY11 market share • Significant new business wins delivered 6.6% in second half to sustain an above Sandwiches market trajectory • Customer foc
Slide 22: Performance Review - Prepared Meals
1. PERFORMANCE REVIEW - PREPARED MEALS No. 1 in Italian Ready Meals 24% • Re-energised category delivering strongly market across multiple customers share 11.7% • Better industry supply/demand balance Ready Meals allowing investment in consumer insight 10.1% and product development to sustain qualit
Slide 23: Performance Review - Grocery
1. PERFORMANCE REVIEW - GROCERY No. 1 in own label cooking sauces • Enormous value generated through range 77% simplification and focus, and leveraging market share manufacturing scale in cooking sauces and Own Label 18.6% pickles Cooking Sauces • Significant market share gains as customers position
Slide 24: Performance Review - Cakes & Desserts
1. PERFORMANCE REVIEW - CAKES & DESSERTS No. 2 in celebration cakes 32% • A challenging year impacted by: market • Very high levels of input inflation share • Excess market capacity Celebration Cakes 11.0% • Rapidly changing mix • Volatile consumer demand • Modest growth driven by improved distribut
Slide 25: Performance Review - US
1. PERFORMANCE REVIEW - US • Newburyport re-fit and capacity upgrade completed in November 2010, lean manufacturing and enhanced technical processes introduced through FY11 and BRC Grade A standard achieved in November 2011 • ‘On A Roll’ acquired to drive food-to-go sales, especially in convenience
Slide 26: Group Strategy
2. GROUP STRATEGY Strategy Driver • To be a focused convenience foods • Centred on chilled prepared foods business capitalising on favourable, long-term consumer and retailer • Focused on private label dynamics • Market leading category scale • To maintain an industry leading UK • Concentration on m
Slide 27: Acquisition of Uniq plc - Business Benefits
2. ACQUISITION OF UNIQ PLC - BUSINESS BENEFITS • High performing sandwich business with potential for further growth • Addition of material ‘new customer’ for Greencore Group 1. Commercial • Opportunity to restructure and refocus ‘Uniq desserts’ • Ability to absorb and extend salads business into Gr
Slide 28: Acquisition of Uniq plc - Integration
2. ACQUISITION OF UNIQ PLC - INTEGRATION Integration of business well under way • Dedicated integration team in place led by senior Greencore operational leader • Focused on sustaining underlying economics of both Greencore and Uniq, while delivering clearly identified synergy targets • Ensures Gree
Slide 29: Acquisition of Uniq plc - Impact on Customer Mix
2. ACQUISITION OF UNIQ PLC - IMPACT ON CUSTOMER MIX Greencore pre Uniq acquisition* 28% 24% 21% 17% 8% 2% 0% Greencore post Uniq acquisition** 22% 21% 19% 16% 13% 8% 1% * % Greencore retail revenue ** Estimated based on Greencore retail revenue for year ending 30 September 2011 and most recent annua
Slide 30: Outlook
3. OUTLOOK • Good start to FY12 in Convenience Foods across the business • On track to successfully integrate Uniq and deliver synergies • Challenging consumer, retail and input price environment, with particular focus on managing the impact of input price inflation • Well positioned for progress in
Slide 31: Contact Details
CONTACT DETAILS Patrick Coveney, Chief Executive Officer T: +353 (0)1 605 1045 E: patrick.coveney@greencore.com Alan Williams, Chief Financial Officer T: +353 (0)1 605 1018 E: alan.williams@greencore.com
Slide 32: Greencore - bringing convenience to good food
A green _ bringing | convenience to good food
Slide 33: Appendices
4 greencore 4 Ale PeNIDICes
Slide 34: Rights Issue Impact - Adjusted EPS
RIGHTS ISSUE IMPACT - ADJUSTED EPS FY11 FY10 Continuing earnings* £28.8m £23.5m Denominator for earnings per share 273.9m 259.3m Continuing adjusted basic earnings per share 10.5pence 9.1pence Denominator for earnings per share calculations (in million) FY11 FY10 Shares in issue at the beginning of
Slide 35: Rights Issue Impact - Dividend
RIGHTS ISSUE IMPACT - DIVIDEND • Adjusted DPS base for comparatives Interim payable 3.0 cents x 209.1m shares €6.3m Proposed final payable 2.4 cents x 384.8m shares €9.2m Total dividend payable €15.5m No. of shares now in issue 384.8m Equivalent Dividend per share 4.0 cents 35
Slide 36: Summary Performance in £ and €
SUMMARY PERFORMANCE IN £ AND € Profit & Loss FY11 (£M) FY10 (£M) FY11 (€m) FY10 (€m) Revenue 804.2 739.9 925.8 856.0 Operating Profit 51.5 51.6 59.1 59.7 - Amortisation of acquisition related intangibles -2.6 -2.0 -3.1 -2.4 48.9 49.6 56.1 57.3 - Bank financing costs -16.9 -21.9 -19.5 -25.3 - Other f
Slide 37: Segmental Results Presented in Euro
SEGMENTAL RESULTS PRESENTED IN EURO Convenience Foods Ingredients & Property Continuing FY11 (€m) FY10 (€m) % change Continuing FY11 (€m) FY10 (€m) % change Revenue 843.0 784.5 +7.5%** Revenue 82.9 71.5 +16.0% Operating Operating 56.6 54.1 +4.6% 2.5 5.6 -54.2% Profit* Profit* Margin 6.7% 6.9% (20bps
Slide 38: Summary Performance - Half Year Interim Statement in Sterling
SUMMARY PERFORMANCE - HALF YEAR INTERIM STATEMENT PRESENTED IN STERLING Profit & Loss HY11 (£M) HY10 (£M) Revenue 378.6 363.7 Operating Profit 23.2 23.6 - Amortisation of acquisition related intangibles -1.2 -1.0 22.0 22.6 - Bank financing costs -7.9 -12.3 - Other financing costs 2.9 -1.0 Share of a
Slide 39: Greencore - bringing convenience to good food
A green _ bringing | convenience to good food