Slide 1: CEO Presentation Annual General Meeting
CEO Presentation Annual General Meeting 7th May 2013
Slide 2: Agenda
Agenda • 2012 Performance • Strategic Development • Outlook
Slide 3: 2012 Market Conditions
2012 Market Conditions • UK demand remained weak • Raw material prices softened causing some sales price deflation • A number of key market sectors for protective packaging were strong: • 3PL • Internet Retail • The self adhesive labels market continued to be price oriented but interest in re-sealab
Slide 4: 2012 Performance
2012 Performance • Macfarlane Group • Sales decline by 1.9% • PBT growth of 27% Clear focus and positive actions in an • Packaging Distribution unfavourable • Sales decline by 1.6%* economic • Gross margin improvement of 1.1% environment ensured • PBT growth of 7% 2012 was another year of profitable
Slide 5: Sales per Employee
Sales per Employee* £000 327 262 254 249 Best Practice 220 223 Sales Opportunity ** £36m 08 09 10 11 12 20 20 20 20 20 Sales per Employee Best Practice * These figures are for the Packaging Distribution business only. ** The Best Practice sales opportunity is based on all RDCs achieving the sales le
Slide 6: Sales per Square Foot
Sales per Square Foot* £ 251 Best Practice Sales 189 193 Opportunity ** 173 174 158 £35m 2008 2009 2010 2011 2012 Sales per Square Foot Best Practice * These figures are for all RDCs in the Packaging Distribution business only ** The Best Practice sales opportunity is based on all RDCs achieving the
Slide 7: Return on Sales by RDC
Return on Sales by RDC* Third Quartile - RDC's Top Quartile - RDC's 9.50% 9.20% 9.20% 7.50% 7.40% 7.10% Best Practice Bottom Quartile - RDC's Second Quartile - RDC's Profit (ROS) Opportunity 5.90% ** £6m 5.50% 4.00% 0.60% 0.40% 0.50% 2010 2011 2012 *These figures are based on all RDCs in the Packagi
Slide 8: The Growth in Internet Retailing
The Growth in Internet Retailing
Slide 9: The Growth in Internet Retailing
Strategic Development The Growth in Internet Retailing 2012 2022 UK Retail Sales £560bn Internet Retail £150bn £410bn UK Internet Retail Sales are showing strong growth and will represent in excess of 25% of total retail sales in 10 years’ time
Slide 10: The Protective Packaging Opportunity in Internet Sales
Strategic Development The Protective Packaging Opportunity in Internet Sales • Need for more protection • Need for better presentation • Need to facilitate returns process • Need for cost effective packing process • Need to recognise environmental impact
Slide 11: The Opportunity for Macfarlane
Strategic Development The Opportunity for Macfarlane • Through our direct efforts and in partnership with the leading 3PL operators Macfarlane sales to internet retailers are currently in excess of £20m • In 2012 Macfarlane sales to internet retailers grew by 12% and we currently supply some of the
Slide 12: Strategic Development
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Slide 13: Growth Potential
Strategic Development Growth Potential • In an overall weak UK economy it is important we position ourselves in growth sectors • The internet retail sector is a clear growth sector and Macfarlane is ideally positioned to benefit from this growth • Through our expertise in the sector and our partners
Slide 14: Outlook
Outlook • We expect the UK economy to remain weak. • The Packaging Distribution business is strong and well positioned to benefit from the positive trends in growth sectors e.g. Internet Retail. • Our Packaging Manufacturing business continues to progress through its expertise in the design and asse
Slide 15: Macfarlane Group PLC 114th Annual General Meeting
MACFARLANE GROUP PLC 114th Annual General Meeting 7th May 2013