Slide 1: McBride plc Results Presentation: 22 February 2022
McBride plc Results Presentation: 22 February 2022 Everyday cleaning products, expertly made
Slide 2: Agenda
1. Welcome 2. Key messages Agenda 3. Divisional reviews 4. Financial review 5. Outlook 6. Q&A 1 McBride plc Results Presentation: 22 February 2022
Slide 3: Welcome
Welcome Our speakers today Chris Smith Mark Strickland Chief Executive Officer Chief Financial Officer 2 McBride plc Results Presentation: 22 February 2022
Slide 4: Key messages
Key messages 3 McBride plc Results Presentation: 22 February 2022
Slide 5: H1 FY22 key messages
H1 FY22 key messages Exceptional input cost inflation impacted H1; ‘Programme Compass’ cost savings on track; Covid-19 supply chain shocks and rapid, £10m in current financial year. Further cost continuing exceptional inflation of raw materials, opportunities in development packaging and transport M
Slide 6: Costs update
Costs update Group input costs index Percentage of raw materials spend by price visibility Liquids Unit Dosing Powders Total Dec Jun Dec 2020 2021 2021 ≤ 1 month 1-3 months 4-6 months > 6 months • Rapid and unprecedented feedstock inflation; many • Purchase visibility varies by division, based upon
Slide 7: Price actions
Price actions • Price increases actioned in ‘waves’ Illustration of the pricing lag • Minimum three month lag from inception to implementation – tough retailer negotiations – timing and quantum of price rises recovering forward input costs – brand shelf price – competitors Jan Jun Dec Jun 2021 2021
Slide 8: General market overview
General market overview Total market spend Total category spend 2021 vs 2020 2021 vs 2019 2021 -3% vs 2020 +4% vs 2019 Laundry PL share 2021 -0.5% vs 2020 -2.0% vs 2019 Cleaners Dishwash • PL overall under pressure through Covid-19 • Laundry remains lower throughout • PL performance mixed across the
Slide 9: ESG
ESG Environmental Social • Progress on existing targets • Encouraging lower accidents • Carbon footprint assessment complete • Scorecard developed • New format packaging launches • Reset of charitable ambitions • Data gathering Selected KPIs 2025 target H1 FY22 FY21 • Targets to be set Energy effici
Slide 10: Divisional reviews
Divisional reviews 9 McBride plc Results Presentation: 22 February 2022
Slide 11: Divisional performance – overview
Divisional performance – overview Revenues £m Adjusted EBITA £m Constant currency variances Constant currency variances 346.2 17.6 (9.4) (7.8) (1.3) 323.4 (1.9) (2.4) (19.7) (9.7) (0.5) 0.5 (1.6) (1.4) (14.8) Dec 2020 Liquids Unit Powders Aerosols Asia Dec 2021 Dec 2020 Liquids Unit Powders Aerosols
Slide 12: Liquids
Cost Liquids leadership Cash generation Reported Constant Half year to Half year to change currency change 31 December 2021 31 December 2020 B/(W) B/(W) Revenue £182.8m £201.1m (9.1%) (4.9%) Adjusted operating (loss)/profit (£10.2m) £10.1m (201.0%) (207.4%) Adjusted operating profit margin (5.6%) 5.
Slide 13: Unit Dosing
Product Unit Dosing leadership Growth engine Reported Constant Half year to Half year to change currency change 31 December 2021 31 December 2020 B/(W) B/(W) Revenue £81.6m £93.9m (13.1%) (8.7%) Adjusted operating (loss)/profit (£0.4m) £10.0m (104.0%) (104.3%) Adjusted operating profit margin (0.5%)
Slide 14: Powders
Cost Powders leadership Cash generation Reported Constant Half year to Half year to change currency change 31 December 2021 31 December 2020 B/(W) B/(W) Revenue £32.8m £35.7m (8.1%) (3.8%) Adjusted operating loss (£1.4m) (£1.0m) 40.0% 55.6% Adjusted operating profit margin (4.3%) (2.8%) • Decline ma
Slide 15: Aerosols
Product Aerosols leadership Value optimisation Reported Constant Half year to Half year to change currency change 31 December 2021 31 December 2020 B/(W) B/(W) Revenue £15.8m £18.8m (16.0%) (10.7%) Adjusted operating (loss)/profit (£0.8m) £0.9m (188.9%) (200.0%) Adjusted operating profit margin (5.1
Slide 16: Asia Pacific
Cost Asia Pacific and value leadership Strategic upside Reported Constant Half year to Half year to change currency change 31 December 2021 31 December 2020 B/(W) B/(W) Revenue £10.4m £13.4m (22.4%) (18.8%) Adjusted operating profit £0.2m £1.7m (88.2%) (87.5%) Adjusted operating profit margin 1.9% 1
Slide 17: Financial review
Financial review 16 McBride plc Results Presentation: 22 February 2022
Slide 18: H1 FY22 – financial headlines
H1 FY22 – financial headlines Adjusted operating Adjusted (loss)/profit Revenue (loss)/profit before tax £323.4m £(14.8)m £(16.9)m 2020: £362.9m 2020: £19.0m 2020: £16.9m 2019: £350.4m 2019: £11.6m 2019: £9.7m Net debt/adjusted Adjusted ROCE EBITDA (banking basis) Free cash flow (4.6)% 4.3x £2.8m 20
Slide 19: Divisional performance – overview (EBITA bridge)
Divisional performance – overview EBITA bridge – H1 FY22 vs H1 FY21 £m 19.0 (14.8) H1 FY21 Volume Pricing Raw material Distribution Operations Divisional Central Other H1 FY22 EBITA /mix input costs overheads overheads EBITA • Key drivers of the £(33.8)m reduction in EBITA vs – volume/mix – Covid-19
Slide 20: Costs update
Costs update Divisional input costs index – largest divisions Distribution costs as Administrative (overhead) % of sales costs as % of sales 0.8% 0.7% 3.6% 3.6% 8.1% 8.2% 8.2% 9.5% 18.0% 18.7% FY20 H1 FY21 FY21 H1 FY22 H1 FY21 H1 FY22 Divisional direct Dec Jun Dec Central recharge 2020 2021 2021 PLC
Slide 21: Income statement
Income statement Gross margin Adjusted EBITDA Adjusted operating profit Finance costs and % £m margin effective tax rate % £m 23% 17% 35.7% 29.3 5.2% 33.6% (0.2) (0.2) (0.3) 16.2 1.6% (1.9) (1.9) (1.8) 27.9% (4.6%) (4.3) (167)% H1 FY21 H2 FY21 H1 FY22 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H2 FY21 H1 FY22
Slide 22: Cost reduction
Cost reduction • Committed to save £20m annualised by the end of FY23 • First half on track: – Barrow closure – product complexity/SKU reduction – warehouse and distribution – overhead savings: • factory • divisional • central and plc 21 McBride plc Results Presentation: 22 February 2022
Slide 23: Other financials
Other financials Exceptional costs Capex and depreciation Pensions Returns to shareholders £m £m £m £m 0.8 32.6 31.9 1.4 1.9 1.9 2.0 23.4 6.8 8.0 12.0 10.4 0.7 0.81 0.81 0.86 2.9 2.8 8.4 9.2 8.5 1.8 6.9 5.0 2.4 4.3 1.5 1.4 1.5 1.1 0.1 (0.4) (1.4) H1 FY21 H2 FY21 H1 FY22 H1 FY21 FY21 H1 FY22 FY17 FY1
Slide 24: Cash flow, net debt and banking facilities
Cash flow, net debt and banking facilities Cash flow and net debt £m (118.4) (124.9) Net debt Adjusted EBITDA Working Pensions Exceptional Capital Interest Redemption Share Non-cash Net debt 30 June 2021 from continuing capital items and expenditure on borrowings of 'B' shares buy-back movements 31
Slide 25: Outlook
Outlook 24 McBride plc Results Presentation: 22 February 2022
Slide 26: Performance recovery as a result of pricing actions
Performance recovery as a result of pricing actions Group input costs index H2, especially Q4, improvement Pricing actions, volume risk Jun Dec Jun 2021 2021 2022 H1 actual H2 forecast Input costs expected to steady early summer Ongoing supply and transport challenges Labour, energy, transport infla
Slide 27: Q&A
Q&A 26 McBride plc Results Presentation: 22 February 2022
Slide 28: Appendices
1. Income statement 2. Segmental reporting 3. Exceptional items Appendices 4. Balance sheet 5. Cash flow 6. Use of cash and reconciliation of net debt 7. Funding headroom 27 McBride plc Results Presentation: 22 February 2022
Slide 29: Appendix 1: income statement
Appendix 1: income statement Constant currency(1) H1 FY22 H1 FY21 H1 FY21 Continuing operations £m £m y/y £m y/y Revenue 323.4 362.9 (10.9%) 346.2 (6.6%) Gross profit 90.2 129.7 (30.5%) 123.4 (26.9%) Gross margin 27.9% 35.7% (7.8 ppt) 35.6% (7.7 ppt) Distribution costs (30.8) (29.7) 3.7% (28.2) 9.2%
Slide 30: Appendix 2: segmental reporting
Appendix 2: segmental reporting Constant currency H1 FY22 H1 FY21 H1 FY21 Revenue £m £m y/y £m y/y Liquids 182.8 201.1 (9.1%) 192.2 (4.9%) Unit Dosing 81.6 93.9 (13.1%) 89.4 (8.7%) Powders 32.8 35.7 (8.1%) 34.1 (3.8%) Aerosols 15.8 18.8 (16.0%) 17.7 (10.7%) Asia Pacific 10.4 13.4 (22.4%) 12.8 (18.8%
Slide 31: Appendix 3: exceptional items
Appendix 3: exceptional items H1 FY22 H1 FY21 £m £m Factory footprint review (1.5) 0.1 Review of strategy, organisation and operations (0.1) 1.7 Logistics transformation programme 0.1 — UK Aerosols closure 0.1 0.4 Total continuing operations (1.4) 2.2 Sale of PC Liquids business — 0.2 Total disconti
Slide 32: Appendix 4: balance sheet
Appendix 4: balance sheet 31 Dec 30 Jun 31 Dec 2021 2021 2020 £m £m y/y £m y/y Goodwill and other intangible assets 27.3 27.9 (2.2%) 27.9 (2.2%) Property, plant and equipment 122.1 129.8 (5.9%) 135.9 (10.2%) Right-of-use assets 11.8 10.0 18.0% 10.7 10.3% Other non-current assets 23.9 22.9 4.4% 14.5
Slide 33: Appendix 5: cash flow
Appendix 5: cash flow H1 FY22 H1 FY21 £m £m y/y Adjusted operating (loss)/profit (14.8) 19.0 (177.9%) Depreciation property, plant and equipment 8.5 8.4 1.2% Depreciation right-of-use assets 2.0 1.9 5.3% Share-based payments 0.5 0.3 66.7% Additional cash funding on pension scheme (2.0) (2.0) — Impai
Slide 34: Appendix 6: use of cash and reconciliation of net debt
Appendix 6: use of cash and reconciliation of net debt 20 (4.5) 15 Non-cash 2.0 Foreign items exchange Payment to (4.0) (0.1) shareholders Share buy-back (0.1) (1.6) Financing cost (2.0) Pensions 10 £m Movement 0.5 Taxation (6.5) in net debt 0.4 Exceptionals (6.4) Capital expenditure 5 Working 8.4 c
Slide 35: Appendix 7: funding headroom
Appendix 7: funding headroom Committed Facility Drawn headroom At 31 December 2021 £m £m £m Committed facilities: – revolving facilities (May 2026) 147.0 (88.7) 58.3 – invoice discounting facility 56.7 (56.7) — – other loans 2.1 (2.1) — – leases 12.8 (12.8) — Total committed facilities 218.6 (160.3)