Greencore Group Plc · LSE:GNC
Greencore — Investor Day (September 2019)
78 slides from Greencore's investor day presentation, Sep 26, 2019
Slide 1: Capital Markets Day
Capital Markets Day 26 September 2019 CAPITAL MARKETS DAY | SEPTEMBER 2019 1
Slide 2: Disclaimer - Forward Looking Statements
DISCLAIMER ─ FORWARD LOOKING STATEMENTS Financial information relating to Greencore Group plc in this announcement are not statutory financial statements within the meaning of Section 340 of the Companies Act 2014 of Ireland and have been published for the purposes of updating investors on financial
Slide 3: Welcome
WELCOME Gary Kennedy CAPITAL MARKETS DAY | SEPTEMBER 2019 3
Slide 4: Introduction
INTRODUCTION Eoin Tonge CAPITAL MARKETS DAY | SEPTEMBER 2019 4
Slide 5: Today's Speakers
TODAY’S SPEAKERS Patrick Coveney Eoin Tonge Peter Haden Clare Evans Kevin Moore Chief Executive Chief Financial Chief Operating Manufacturing Chief Commercial Officer Officer Officer Director Officer CAPITAL MARKETS DAY | SEPTEMBER 2019 5
Slide 6: Today's Agenda
TODAY’S AGENDA 08.30 Welcome & Introduction Gary Kennedy & Eoin Tonge 10.45 Strategy and Model in Action Commercial (Kevin Moore) Operations (Clare Evans) 08.45 Strategy Patrick Coveney 11.55 Break 09.30 Business Peter Haden Model 12.00 Value Creation Model Eoin Tonge 10.00 Q&A Panel The leadership
Slide 7: Greencore - Set Up for Growth
GREENCORE ― SET UP FOR GROWTH Portfolio weighted towards food to go Diverse customer base Food to go Other convenience Co-op Morrisons Waitrose categories categories M&S Aldi Lidl Sandwiches Ready Meals Sainsburys Boots Starbucks Salads, sushi & chilled Other (inc. Irish snacking ingredients) Tesco
Slide 8: Greencore - Well-Invested, Nationwide Network With Capacity for Growth
GREENCORE ― WELL-INVESTED, NATIONWIDE NETWORK WITH CAPACITY FOR GROWTH OTHER CONVENIENCE FOOD TO GO CATEGORIES1 DISTRIBUTION Food to go Other convenience categories Distribution 13 production units 8 production units 17 distribution depots across 9 locations across 7 locations • 8 sandwich-focussed
Slide 9: Greencore - Attractive Economic Model
GREENCORE ― ATTRACTIVE ECONOMIC MODEL STRONG FINANCIAL METRICS1… …WITH A TRACK RECORD OF DELIVERY2 Revenue Adjusted EBITDA Revenue (£bn) 1.5 UK & Ireland CAGR £1.5bn £140.0m 10.3% CAGR current categories3 Adjusted Operating Profit Adjusted EBITDA margin 11.7% £104.6m 9.3% FY11 FY12 FY13 FY14 FY15 FY
Slide 10: Our Investment Case
OUR INVESTMENT CASE MULTIPLE PLATFORMS ON WHICH TO BUILD MEDIUM TERM FINANCIAL AMBITION Deep customer relationships with mandate to do MID SINGLE-DIGIT more ORGANIC REVENUE GROWTH Leadership positions in food to go – the UK’s most HIGH SINGLE-DIGIT attractive food category ADJUSTED EPS GROWTH Networ
Slide 11: Strategy
STRATEGY Patrick Coveney CAPITAL MARKETS DAY | SEPTEMBER 2019 11
Slide 12: Greencore - Relevant, Distinctive and Fast-Growing
GREENCORE ― RELEVANT, DISTINCTIVE AND FAST-GROWING RELEVANT DISTINCTIVE FAST-GROWING Revert to sushi photo 11.7% Picture of cool product CAPITAL MARKETS DAY | SEPTEMBER 2019 12
Slide 13: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 13
Slide 14: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 14
Slide 15: Drive Growth in Expanding Food to Go Market
DRIVE GROWTH IN EXPANDING FOOD TO GO MARKET CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS Growth drivers of past decade… Convenience Competition Sandwich All about Focussed format led among food focussed lunch on grocery growth manufacturers CAPITAL MARKETS DAY | SEPTEMBER 2019 15
Slide 16: Consumer Demands - Health, Freshness, Local Sourcing, Sustainability
CONSUMER DEMANDS ─ HEALTH, FRESHNESS, LOCAL SOURCING, SUSTAINABILITY CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS CAPITAL MARKETS DAY | SEPTEMBER 2019 16
Slide 17: Fragmenting Meal Times - Much More Than Lunch
FRAGMENTING MEAL TIMES ─ MUCH MORE THAN LUNCH CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS Need-led moments Grab & Go Everyday Healthy Treat % split Breakfast 3.1% 2.2% 1.0% 2.3% 8.7% Occasion-led moments Snack 9.0% 7.5% 3.0% 10.3% 29.8% Lunch 15.5% 8.2% 3.9% 7.6% 35.3% Evening 8.8% 4.9% 2.6% 9
Slide 18: New Channels - Disruptive and Existing Players Overlapping
NEW CHANNELS ─ DISRUPTIVE AND EXISTING PLAYERS OVERLAPPING CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS CAPITAL MARKETS DAY | SEPTEMBER 2019 18
Slide 19: Formats - Customer Needs Evolving
FORMATS ─ CUSTOMERS NEEDS EVOLVING CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS CAPITAL MARKETS DAY | SEPTEMBER 2019 19
Slide 20: Competitors - Blurring With Potential Customers
COMPETITORS ─ BLURRING WITH POTENTIAL CUSTOMERS CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS Traditional Foodservice New Competitors Specialists Entrants CAPITAL MARKETS DAY | SEPTEMBER 2019 20
Slide 21: Drive Growth in Expanding Food to Go Market
DRIVE GROWTH IN EXPANDING FOOD TO GO MARKET CATEGORIES OCCASIONS CHANNELS FORMATS COMPETITORS Growth drivers of past decade… Competition Sandwich All about Focussed Convenience among food focussed lunch on grocery format led growth manufacturers Scale across Provide more Win against Win across Feed
Slide 22: Food to Go Market - Diverse, Attractive, Growing
FOOD TO GO MARKET ― DIVERSE, ATTRACTIVE, GROWING Food to Go market size, by channel: 2019-2024 (RSP, £bn) 5.0% 16.2 Supermarkets & 1.8 hypermarkets 12.7 3.6% Convenience & 1.5 3.8 other retailers 5.4% 2.9 Coffee 4.3 5.2% specialists 3.3 Food to go 4.6% 6.3 specialists 5.0 2019 CAGR 2024 Source: IGD
Slide 23: Drive Growth in Expanding Food to Go Market
DRIVE GROWTH IN EXPANDING FOOD TO GO MARKET Drive growth in expanding food to go market BROADENING OUR PRODUCT PROPOSITION • Drive innovation across core range • Build scale in expanding food to go categories ENABLING CONSUMERS TO BUY MORE • Make current space work harder • Expand consumer reach CAP
Slide 24: Drive Innovation Across Core Range
DRIVE INNOVATION ACROSS CORE RANGE Distinctive approach to innovation • Large, diverse innovation and product development teams 47% • Bespoke research in food to go market Current • “California to Cambodia, via Italy” innovation1 • Joint approach with customers ~2,500 products today1 Selective examp
Slide 25: Build Scale in Expanding Food to Go Categories
BUILD SCALE IN EXPANDING FOOD TO GO CATEGORIES CAPTURE CHILLED EXPLOIT HOT FOOD SCALE-UP IN MEAL SALADS BROADEN SUSHI OFFER SNACKING GROWTH OPPORTUNITY CAPITAL MARKETS DAY | SEPTEMBER 2019 25
Slide 26: Make Current Space Work Harder
MAKE CURRENT SPACE WORK HARDER Challenge Solution ‘One-size-fits-all’ • Jointly planned ranging (by format, region and store) MERCHANDISING ranging • Unit level pick and distribution Variable and often • Joint approach to order management low availability at • Embedded supply chain analytics resourc
Slide 27: Expand Consumer Reach
EXPAND CONSUMER REACH Closer to grocery & convenience customers Café and serve-over Wholesale Online Newer channels Vending / events D2C Travel retail and customers CAPITAL MARKETS DAY | SEPTEMBER 2019 27
Slide 28: A Strategy to Expand Our Category and Channel Reach
A STRATEGY TO EXPAND OUR CATEGORY AND CHANNEL REACH 2024 OPPORTUNITY: Market growth £7.0bn WIDER MARKET TODAY: £5.5bn More channels More channels: and categories Enabling consumers to buy more TRADITIONAL HEARTLAND: £1.5bn Sandwiches in grocery and More categories: convenience multiples Broadening o
Slide 29: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 29
Slide 30: Business Model
BUSINESS MODEL Peter Haden CAPITAL MARKETS DAY | SEPTEMBER 2019 30
Slide 31: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 31
Slide 32: Deepen Customer Relevance
DEEPEN CUSTOMER RELEVANCE Create a compelling offer Deepen customer GREENCORE’S relevance CUSTOMER MODEL Partner with Work together to Customers for beat the model long-term CAPITAL MARKETS DAY | SEPTEMBER 2019 32
Slide 33: Drive Shared Returns
DRIVE SHARED RETURNS SHARED VALUE CHAIN ENHANCE BUYING AND IMPROVE OUR DRIVE RETAIL GROWTH MANUFACTURING CHOICES JOINT SUPPLY CHAIN • Optimise recipe design • Shorten delivery times and • Support shared innovation cut miles agenda and premiumisation • Manage cost through the process • Manage demand
Slide 34: Increase Relevance and Value Through Our Portfolio
INCREASE RELEVANCE AND VALUE THROUGH OUR PORTFOLIO Deepen customer Leverage relevance capabilities Build purchasing Broaden scale talent CAPITAL MARKETS DAY | SEPTEMBER 2019 34
Slide 35: Increase Relevance by Doing More With Customers
INCREASE RELEVANCE BY DOING MORE WITH CUSTOMERS SHARED VALUE CHAIN Suppliers Greencore Customers • Ownership of • Demand forecasting ingredient sourcing • Distribution to • Self-auditing individual stores (‘Earned recognition’) • Category management • Joint capacity • Instore activation planning CAP
Slide 36: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 36
Slide 37: Greencore Excellence
GREENCORE EXCELLENCE BUILDING A DISTINCTIVE AND REPEATABLE WAY OF WORKING • Strengthen existing capability • Consistently great • Builds on external best practice • Multi-year sustained effort CAPITAL MARKETS DAY | SEPTEMBER 2019 37
Slide 38: Greencore Excellence - Three Key Capability Areas
GREENCORE EXCELLENCE STEP CHANGING OUR CAPABILITIES IN THREE KEY AREAS PURCHASING EXCELLENCE MANUFACTURING EXCELLENCE COMMERCIAL EXCELLENCE • Analytical breakdown of • Consistently excellent operating • Bespoke consumer insight ingredient costs disciplines and trends research • Partnership approach
Slide 39: People at the Core
PEOPLE AT THE CORE MORE IMPORTANT THAN EVER FRONT-LINE COLLEAGUES ARE CRITICAL TO OUR BUSINESS • First line of food safety • Protects our customer responsiveness • Direct impact on day to day performance • Intrinsic to our manufacturing model EXTERNAL CHANGES TO OUR LABOUR MODEL • Steady rise in liv
Slide 40: People at the Core - Investing to Strengthen Our Model
PEOPLE AT THE CORE INVESTING TO STRENGTHEN OUR MODEL EFFECTIVE WORKFORCE MANAGEMENT • Adoption of manufacturing excellence • Commitment to leadership training at all levels • Bespoke technology to support front-line colleagues • Building next wave automation • Exploring new labour model CAPITAL MARK
Slide 41: People at the Core - Distinctive Leadership Team
PEOPLE AT THE CORE DISTINCTIVE LEADERSHIP TEAM SOURCES OF TALENT FOR SENIOR LEADERSHIP ROLES Most recent job prior to Greencore Other Competitors Professional services Leading retailers FMCG CAPITAL MARKETS DAY | SEPTEMBER 2019 41
Slide 42: Great Food
GREAT FOOD LEAD THE INDUSTRY IN FOOD INTEGRITY • Exceptional team at all levels • Deep subject matter experts in key ingredients • Leverage insight into investment choices • Well established protocols, KPIs and performance management INVEST IN INNOVATION TO DELIVER THE TASTE, NUTRITION AND COST GOAL
Slide 43: Sustainable Business
SUSTAINABLE BUSINESS STRENGTHENING OUR BUSINESS MODEL • Help our people thrive • Lower manufacturing food waste • Reduce environmental footprint • Ensure world-class food safety • Support local communities REINFORCING OUR PARTNERSHIPS • Plastic packaging recyclability • Food waste across the supply
Slide 44: Q&A Panel
Q&A PANEL Patrick Coveney Eoin Tonge Peter Haden CAPITAL MARKETS DAY | SEPTEMBER 2019 44
Slide 45: Strategy & Model in Action - Commercial
STRATEGY & MODEL IN ACTION – COMMERCIAL Kevin Moore CAPITAL MARKETS DAY | SEPTEMBER 2019 45
Slide 46: An Embedded Commercial Model to Support Our Growth
AN EMBEDDED COMMERCIAL MODEL TO SUPPORT OUR GROWTH OUR COMMERCIAL MODEL IN ACTION Create a compelling offer • Dedicated, cross-functional teams • Continuous multi-level engagement • Integrated, joint strategic plans Deepen Strategic alignment customer relevance Category development Retailer own labe
Slide 47: Strategy & Model in Action - Operations
STRATEGY & MODEL IN ACTION – OPERATIONS Clare Evans CAPITAL MARKETS DAY | SEPTEMBER 2019 47
Slide 48: Excellence Programme to Become 'Famous for Manufacturing'
SINCE 2017 WE HAVE BEEN DRIVING OUR EXCELLENCE PROGRAMME TO BECOME ‘FAMOUS FOR MANUFACTURING’ Next Generation Front Line Automation IMPACT Greencore Leadership • Modular and flexible Manufacturing • Training for 1000+ Excellence • Works alongside colleagues colleagues • Major change programme • Awar
Slide 49: Excellence Programme to Become 'Famous for Manufacturing'
SINCE 2017 WE HAVE BEEN DRIVING OUR EXCELLENCE PROGRAMME TO BECOME ‘FAMOUS FOR MANUFACTURING’ Next Generation Front Line Automation IMPACT Greencore Leadership • Modular and flexible Manufacturing • Training for 1000+ Excellence • Works alongside colleagues colleagues • Major change programme • Awar
Slide 50: Greencore Manufacturing Excellence
GREENCORE MANUFACTURING EXCELLENCE WHAT DID WE DO IMPACT OF THE CHANGE Vision: ‘famous for manufacturing’ Big step up in lean savings Common way of working across 16 locations Much stronger leverage of the network Consistent view of performance Greater overall level of operational control New organi
Slide 51: Greencore Manufacturing Excellence - Technology Approach
GREENCORE MANUFACTURING EXCELLENCE TECHNOLOGY APPROACH OUR FOCUS AREAS DRIVING PRODUCTIVITY • Initial focus areas based on diagnostic ─ Line balancing ─ Downtime recording ─ Materials tracking & traceability • Support performance management ─ Line information ─ Relevant and simple formats • Help lin
Slide 52: Increased Productivity Through Line Balancing
GREENCORE MANUFACTURING EXCELLENCE INCREASED PRODUCTIVITY THROUGH LINE BALANCING CAPITAL MARKETS DAY | SEPTEMBER 2019 52
Slide 53: Tablet Demonstration
TABLET DEMONSTRATION
Slide 54: Excellence Programme to Become 'Famous for Manufacturing'
SINCE 2017 WE HAVE BEEN DRIVING OUR EXCELLENCE PROGRAMME TO BECOME ‘FAMOUS FOR MANUFACTURING’ Next Generation Front Line Automation IMPACT Greencore Leadership • Modular and flexible Manufacturing • Training for 1000+ Excellence • Works alongside colleagues colleagues • Major change programme • Awar
Slide 55: Front Line Leadership
FRONT LINE LEADERSHIP OVERVIEW OF OPERATIONAL LEADERSHIP DEVELOPMENT WHO ARE WE TARGETTING? WHY ARE THEY CRITICAL? WHAT’S THE INTERVENTION? • c.2,000 front line managers and • Front line for food safety • Modular and targeted coordinators • Drive site economics • Wide variety of delivery methods • D
Slide 56: Front Line Leadership - Line Manager Framework
FRONT LINE LEADERSHIP LINE MANAGER/LINE COORDINATOR FRAMEWORK THE ROLE OF A LINE The job tasks are focused into Our modular programme comprises COORDINATOR IS ALL ABOUT: PEOPLE • Meet and greet team on arrival PEOPLE and departure • Point of contact for colleagues • Working time coordination, cover
Slide 57: Front Line Leadership - Measures of Success
FRONT LINE LEADERSHIP MEASURES OF SUCCESS PEOPLE SAFETY OPERATIONS Improve engagement Increased reporting Reduction of waste of near misses Reduce colleague attrition Cost avoidance Improve quality of pre-start safety check Effective labour planning CAPITAL MARKETS DAY | SEPTEMBER 2019 57
Slide 58: Excellence Programme to Become 'Famous for Manufacturing'
SINCE 2017 WE HAVE BEEN DRIVING OUR EXCELLENCE PROGRAMME TO BECOME ‘FAMOUS FOR MANUFACTURING’ Next Generation Front Line Automation IMPACT Greencore Leadership • Modular and flexible Manufacturing • Training for 1000+ Excellence • Works alongside colleagues colleagues • Major change programme • Awar
Slide 59: Next Generation Automation
NEXT GENERATION AUTOMATION BESPOKE TECHNOLOGY IN SANDWICH MANUFACTURING TASK EXAMPLES CAPITAL MARKETS DAY | SEPTEMBER 2019 59
Slide 60: Excellence Programme to Become 'Famous for Manufacturing'
SINCE 2017 WE HAVE BEEN DRIVING OUR EXCELLENCE PROGRAMME TO BECOME ‘FAMOUS FOR MANUFACTURING’ Next Generation Front Line Automation IMPACT Greencore Leadership • Modular and flexible Manufacturing • Training for 1000+ Excellence • Works alongside colleagues colleagues • Major change programme • Awar
Slide 61: Value Creation Model
VALUE CREATION MODEL Eoin Tonge CAPITAL MARKETS DAY | SEPTEMBER 2019 61
Slide 62: Our Strategy
OUR STRATEGY Drive growth Deepen in expanding customer food to go market relevance Adopt a distinctive and repeatable Drive Greencore Way of working shareholder value GREENCORE PEOPLE AT GREAT SUSTAINABLE EXCELLENCE THE CORE FOOD BUSINESS CAPITAL MARKETS DAY | SEPTEMBER 2019 62
Slide 63: Greencore - Attractive Economic Model
GREENCORE ― ATTRACTIVE ECONOMIC MODEL STRONG FINANCIAL METRICS1… …WITH A TRACK RECORD OF DELIVERY2 Revenue Adjusted EBITDA Revenue (£bn) 1.5 UK & Ireland CAGR £1.5bn £140.0m 10.3% CAGR current categories3 Adjusted Operating Profit Adjusted EBITDA margin 11.7% £104.6m 9.3% FY11 FY12 FY13 FY14 FY15 FY
Slide 64: Driving Long-Term Value Creation
DRIVING LONG-TERM VALUE CREATION Sustainable revenue growth Strong inherent Disciplined investment Profit growth at / above free cashflow and capital allocation revenue growth CAPITAL MARKETS DAY | SEPTEMBER 2019 64
Slide 65: Sustainable Revenue Growth
SUSTAINABLE REVENUE GROWTH MEDIUM TERM CORE GROWTH FINANCIAL AMBITION MID SINGLE- DIGIT ORGANIC BROADER PROPOSITION REVENUE GROWTH DISCIPLINED M&A …PLUS M&A CAPITAL MARKETS DAY | SEPTEMBER 2019 65
Slide 66: Profit Growth At / Above Revenue Growth
PROFIT GROWTH AT / ABOVE REVENUE GROWTH TRACK RECORD OF CUSTOMER DYNAMIC MITIGATING MARGIN PARTNERSHIPS PRODUCT PRESSURE PORTFOLIO Raw material price volatility Ongoing labour inflation GREENCORE Customer margin OPERATING EXCELLENCE support LEVERAGE PROGRAMMES CAPITAL MARKETS DAY | SEPTEMBER 2019 66
Slide 67: Strong Inherent Free Cash Flow
STRONG INHERENT FREE CASH FLOW MEDIUM TERM FINANCIAL AMBITION Well-invested network CONVERT HALF OF ADJUSTED A ‘cleaner’ organisational profile EBITDA TO FREE CASH FLOW Disciplined cash flow management CAPITAL MARKETS DAY | SEPTEMBER 2019 67
Slide 68: Disciplined Investment
DISCIPLINED INVESTMENT MEDIUM TERM FINANCIAL AMBITION ORGANIC INVESTMENT • Strong asset turn for capacity investments • Demanding payback for efficiency investments MID TEEN ROIC INORGANIC INVESTMENT • Reasonable acquisition multiples • Scope for growth and synergies CAPITAL MARKETS DAY | SEPTEMBER
Slide 69: Capital Allocation
CAPITAL ALLOCATION Disciplined organic and 1.5 – 2.0x inorganic investment OPTIMISE Net Debt: Progressive dividend SHAREHOLDER EBITDA* Incremental shareholder RETURNS return *As measured under financing agreements CAPITAL MARKETS DAY | SEPTEMBER 2019 69
Slide 70: Capital Allocation - Disciplined Investment in Action
CAPITAL ALLOCATION ― DISCIPLINED INVESTMENT IN ACTION • Strategic fit • Strong financial profile • Reasonable acquisition multiple (8x pre- synergy EBITDA) • Scope for growth and synergies • Short and medium term returns profile CAPITAL MARKETS DAY | SEPTEMBER 2019 70
Slide 71: Driving Long-Term Value Creation
DRIVING LONG-TERM VALUE CREATION MEDIUM TERM FINANCIAL AMBITION MID SINGLE-DIGIT ORGANIC REVENUE Sustainable GROWTH revenue growth Disciplined Strong inherent investment and free cashflow HIGH SINGLE-DIGIT Profit growth at / capital allocation above revenue growth ADJUSTED EPS GROWTH CONVERT HALF OF
Slide 72: Q&A Panel
Q&A PANEL Patrick Coveney Eoin Tonge Peter Haden CAPITAL MARKETS DAY | SEPTEMBER 2019 72
Slide 73: Concluding Remarks
CONCLUDING REMARKS Patrick Coveney CAPITAL MARKETS DAY | SEPTEMBER 2019 73
Slide 74: Our Investment Case
OUR INVESTMENT CASE MULTIPLE PLATFORMS ON WHICH TO BUILD MEDIUM TERM FINANCIAL AMBITION Deep customer relationships with mandate to do MID SINGLE-DIGIT more ORGANIC REVENUE GROWTH Leadership positions in food to go - the UK’s most HIGH SINGLE-DIGIT attractive food category ADJUSTED EPS GROWTH Networ
Slide 75: Appendix
APPENDIX CAPITAL MARKETS DAY | SEPTEMBER 2019 75
Slide 76: IFRS16 - Estimated Impact on Greencore
IFRS16 ― ESTIMATED IMPACT ON GREENCORE • IFRS16 is the new accounting standard for leases ─ Changes to accounting for leases in financial statements, but no economic impact on Group • For Greencore, the first half of FY20 will be the first accounting period to be reported under IFRS16 ─ No restateme
Slide 77: Definitions of APMs
DEFINITIONS OF APMS The Group uses the following Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole ADJUSTED EBITDA, ADJUSTED OPERATING PROFIT & ADJUSTED ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (‘EP
Slide 78: Definitions of APMs (continued)
DEFINITIONS OF APMS (CONTINUED) CAPITAL EXPENDITURE NET DEBT The Group defines Maintenance Capital Expenditure as the expenditure Net Debt comprises current and non-current borrowings less net cash required for the purpose of sustaining the operating capacity and asset base of and cash equivalents t