Slide 1: Bunzl 2022 Half Year Results
BUNZL 2022 HALF YEAR RESULTS
Slide 2: Introduction
INTRODUCTION Frank van Zanten, Chief Executive Officer 2022 HALF YEAR RESULTS 2
Slide 3: First Half 2022 Financial Highlights
FIRST HALF 2022 FINANCIAL HIGHLIGHTS Strong results highlight the resilience of the compounding Bunzl model Driven by inflation, Revenue growth Adjusted operating 41% ahead of pre- year-on-year 12.4% 1 volume recovery, and profit2 growth y-o-y 8.6% 1 pandemic levels1,4 acquisitions 29 years of Resil
Slide 4: First Half 2022 Performance Achievements
FIRST HALF 2022 PERFORMANCE ACHIEVEMENTS Continued success in pursuing our purpose-driven strategic goals Continued focus on enhancing Six acquisitions announced year- operational efficiency including to-date1; total committed spend of warehouse consolidations and more than £225m technology investme
Slide 5: Consistent Long-Term Focus
CONSISTENT LONG-TERM FOCUS Strong track record of growth guided by a clear purpose and proven strategy We deliver essential business solutions around the world and create long term sustainable value for the benefit of all stakeholders Core values drive our value-added proposition Agile response to c
Slide 6: Financial Results
FINANCIAL RESULTS Richard Howes, Chief Financial Officer 2022 HALF YEAR RESULTS 6
Slide 7: Revenue Growth
REVENUE GROWTH Strong underlying growth, driven by inflation and recovery in the base business Revenue growth1: 12.4% Revenue growth £m vs H1 20211 6,000 3.1% 12.4% 15.4% compared to H1 20191: 5,000 27.7% (6.1%) 5,651 Underlying revenue 4,000 5,026 growth2 vs H1 2021 Underlying revenue growth2 : 9.3
Slide 8: Income Statement
INCOME STATEMENT Adjusted operating profit 41% ahead of pre-pandemic level REPORTED CONSTANT Adjusted operating £m H1 2022 H1 2021 GROWTH EXCHANGE1 profit1 growth2 Revenue 5,650.8 4,866.6 16.1% 12.4% compared to H1 2021 Adjusted operating profit1 411.4 366.8 12.2% 8.6% Operating margin1 7.3% 7.5% 8.
Slide 9: Cash Flow
CASH FLOW Resilient free cash flow; cash conversion impacted in H1 Half year cash conversion since 2010 Free cash flow1 £m H1 2022 H1 2021 112% Operating cash flow1,2 343.2 353.6 £236m 103% 102% Net interest (excluding lease liabilities) (24.2) (19.3) 100% 97% 96% 96% 96% 94% 94% growth4 compared to
Slide 10: Balance Sheet
BALANCE SHEET Substantial capacity for continued self-funded acquisitions JUNE DECEMBER Net debt : EBITDA1,2 Net debt : EBITDA1,2,3 £m 2022 2021 Intangibles 2,938.3 2,766.8 2.3x 1.6x Right-of-use assets 477.0 448.3 2.1x TARGET 2.0x 2.0x Property, plant and equipment 129.9 120.9 1.9x 1.9x Substantial
Slide 11: Financial Summary
FINANCIAL SUMMARY Very strong first half performance; strength of compounding model highlighted – Strong first half performance, driven by base business inflation, as well as volume recovery in Continental Europe and UK & Ireland, which together more than offset Covid-related revenue decline – Stren
Slide 12: Business Review and Outlook
BUSINESS REVIEW AND OUTLOOK Frank van Zanten, Chief Executive Officer 2022 HALF YEAR RESULTS 12
Slide 13: Recovery of the Base Business
RECOVERY OF THE BASE BUSINESS Base business volumes broadly recovered to 2019 levels Absolute base business2 revenue3 Base business – Year-on-year volume recovery driven by contribution to H1 £m Continental Europe and UK & Ireland, given 5,000 underlying revenue reduced restrictions compared to the
Slide 14: Covid-19 Related Sales
COVID-19 RELATED SALES Expect Covid-19 related sales to remain ahead of 2019 levels Absolute Covid-19 related products revenue2 Covid-19 related – Greater larger order benefit than expected, sales impact on H1 £m not anticipated to repeat in H2 1,200 underlying revenue growth1 1,000 – Expect Covid-1
Slide 15: Diversification Drives Resilience
DIVERSIFICATION DRIVES RESILIENCE Key benefit to Bunzl in more challenging trading periods H1 2022 revenue as % of Underlying revenue1 Underlying revenue1 Strong inflation Group total H1 2022 vs. H1 2019 H1 2022 vs. H1 2021 benefit Healthcare Safety base business 31% starting to improve in Safety +8
Slide 16: Inflation Dynamics
INFLATION DYNAMICS Successful pass through of current high inflation rates Product cost inflation Operating cost inflation Product cost inflation very strongly • Strong plastics, paper and chemicals North America inflation supported H1 revenue growth • High operating cost inflation, driven by fuel s
Slide 17: Supporting Customers with Supply Chain Challenges
SUPPORTING CUSTOMERS WITH SUPPLY CHAIN CHALLENGES Our teams have been focused on ensuring delivery of critical items Planning for disruption is essential Delivering essential products is core to our customer offering and to ensure continuity we establish plans for times of disruption Ensuring strate
Slide 18: North America / Continental Europe
NORTH AMERICA / CONTINENTAL EUROPE Inflation strongly supportive but partially offset by Covid-related revenue decline North America Continental Europe CONSTANT CONSTANT £m H1 2022 H1 2021 REPORTED EXCHANGE1 UNDERLYING1 H1 2022 H1 2021 REPORTED EXCHANGE1 UNDERLYING1 Revenue 3,435.9 2,857.7 20.2% 12.
Slide 19: UK & Ireland / Rest of the World
UK & IRELAND / REST OF THE WORLD Strong UK & Ireland margin improvement; Covid-related impact in Rest of the World UK & Ireland Rest of the World CONSTANT CONSTANT £m H1 2022 H1 2021 REPORTED EXCHANGE1 UNDERLYING1 H1 2022 H1 2021 REPORTED EXCHANGE1 UNDERLYING1 Revenue 687.1 579.6 18.5% 18.8% 14.1% 5
Slide 20: 2022 Outlook
2022 OUTLOOK Operating margin guidance upgrade – We now expect the Group operating margin1 in 2022 to be higher than historical levels and only slightly lower than that achieved in 2021 – We continue to expect very good revenue growth2 in 2022, driven by good organic revenue growth and the positive
Slide 21: Strategy Update
STRATEGY UPDATE Frank van Zanten, Chief Executive Officer 2022 HALF YEAR RESULTS 21
Slide 22: Track Record Highlights Success of Bunzl's Strategy
TRACK RECORD HIGHLIGHTS SUCCESS OF BUNZL’S STRATEGY Consistent compounding growth model Historic building blocks of performance Customer-focused business model Organic Driven by activity in our markets – Deep category knowledge Growth • Attractive end markets with structural growth 1/3 • New busines
Slide 23: Driving Organic Growth
DRIVING ORGANIC GROWTH Winning new business with our strong customer proposition We were able to win the Sprouts business in North America through the strength of our national infrastructure, our data and analytical insights, and our ability to support a fast-growing and sustainability-focused groce
Slide 24: Tailored Solutions for a Better World
TAILORED SOLUTIONS FOR A BETTER WORLD Innovative solutions that are enhancing our competitive advantage Better packaging solutions Working with customers to transition to the circular economy Continued focus on • We are working with Wagamama to transition their takeaway packaging to become more suit
Slide 25: Acquisition in Germany a Key Strategic Milestone
ACQUISITION IN GERMANY A KEY STRATEGIC MILESTONE Opportunity in Germany highlights the growth potential for Bunzl In most of our markets we have the opportunity to at least Acquisition of Hygi.de a key milestone for the Group double in size in our high potential end markets Illustrative A fast-growi
Slide 26: Acquisition of Leading Businesses Drives Expansion
ACQUISITION OF LEADING BUSINESSES DRIVES EXPANSION Acquisitions are a proven way to expand Bunzl’s presence successfully Hygi.de is a market leading online distributor USL is a distributor of medical consumables to Corsul Group is the market leading distributor of cleaning and hygiene products in Ge
Slide 27: Bolt-on Acquisitions Enhance Our Existing Offering
BOLT-ON ACQUISITIONS ENHANCE OUR EXISTING OFFERING Six acquisitions announced year-to-date; pipeline remains active Acquisitions announced • AFL Groep acquired in July 2022; revenue of c.£16 million in 2021 year-to-date • Distributor of logistics and warehouse related supplies to customers in the Be
Slide 28: Bunzl's Resilience Is a Key Asset and Differentiator
BUNZL’S RESILIENCE IS A KEY ASSET AND DIFFERENTIATOR Resilience has been consistently demonstrated by Bunzl ADJUSTED OPERATING PROFIT1 (£m) Operational resilience Portfolio resilience Financial crisis Covid-19 Agile decentralised model Diversified portfolio of essential products and solutions 753 De
Slide 29: Insight Event – Continental Europe
INSIGHT EVENT – CONTINENTAL EUROPE 11th October 11th October 2022 PM (UK time) The Virtual event difference is ESSENTIAL – Learn more about our business in Continental Europe and hear about our strategy in action – Hear from our management team and leaders of the business – Ask your questions to thi
Slide 30: Q&A
Q&A Revenue (£bn) Adjusted operating profit1 (£m) Proven compounding 10.3 753 growth strategy CAGR 2.4 169 c.9-10% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Adjusted EPS1 (p) Dividend per Share (p) 57.0 57.0 162.5 31.7 13.3 04 05 06 0
Slide 31: Appendices
Appendices 2021HALF 2022 FULL YEAR RESULTS 31
Slide 32: 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 33: Statutory P&L
APPENDIX 2 Statutory P&L £m H1 2022 H1 2021 H1 2019 Revenue 5,650.8 4,866.6 4,528.4 Adjusted operating profit1 411.4 366.8 302.7 Operating margin1 7.3% 7.5% 6.7% Adjusting items (83.9) (62.7) (63.7) Operating profit 327.5 304.1 239.0 Net finance expense (30.9) (28.4) (38.5) Profit before income tax
Slide 34: Dividend Track Record
APPENDIX 3 Dividend track record 29 years Dividend per share 57.0 of consecutive dividend increases CAGR 10% 4.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2022 HALF YEAR RESULTS 34
Slide 35: Acquisition Growth
APPENDIX 4 Acquisition growth 189 22 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 YTD Number of announced 7 7 9 8 7 2 9 10 13 11 17 22 14 15 6 3 9 14 6 acquisitions acquisitions Committed 2 acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 616 183 124 445 508 225 spend (£m) £375
Slide 36: Revenue by Customer Market in H1 2022
APPENDIX 5 Revenue by customer market in H1 2022 Safety Foodservice Personal protection and safety equipment, including 15% 30% Non-food consumables, including food packaging, gloves, boots, hard hats, ear and eye protection and disposable tableware, guest amenities, catering other workwear, as well
Slide 37: Disclaimer
DISCLAIMER This document has been prepared by Bunzl plc (the ‘Company’) solely for use at the presentation of the Company’s results announcement in respect of the period ended 30 June 2022. For the purposes of this disclaimer, “Presentation” shall mean this document, the oral presentation of the sli