Slide 1: Results for the year ended 27 September 2013
Results For the year ended 27 September 2013 1
Slide 2: Agenda
AGENDA Highlights Patrick Coveney, CEO Financial Review Alan Williams, CFO Operating & Strategic Review Patrick Coveney, CEO Outlook Patrick Coveney, CEO Q&A Open to the Floor 2
Slide 3: Highlights - Strong Delivery
HIGHLIGHTS ‐ STRONG DELIVERY 1.Resilient performance 2.Strategic progress 3.Building momentum 3
Slide 4: Financial Review
FINANCIAL REVIEW Alan Williams Chief Financial Officer
Slide 5: Financial Summary
FINANCIAL SUMMARY FY13 Versus FY12 Revenue £1,197.1m +3.0% Operating profit11 £76.5m +8.1% Operating margin11 6.4% +30 bps Adjusted PBT22 £61.6m +11.8% Adjusted earnings per share22 14.5p +13.3% Dividend per share 4.8p +12.9% Net debt £232.8m ‐£25.2m ROIC 12.9% +100 bps 1. Operating profit and margi
Slide 6: Convenience Foods
CONVENIENCE FOODS FY13 FY12 % • UK like for like revenue* growth of £m £m change 0.2% ‐ lower market growth than PY Revenue 1,129.2 1,091.1 +3.5% and exacerbated by horsemeat scandal Operating 73.9 69.1 +7.0% • US revenue growth in excess of 60% profit1 Operating • Impact of MarketFare and Schau 6.5
Slide 7: Ingredients & Property
INGREDIENTS & PROPERTY • Strong performance in molasses % FY13 FY12 % change feed business benefitting from £m £m change constant poor weather in winter and spring currency • Revenue decline but improved mix in edible oils trading activity Revenue 67.9 70.8 ‐4.1% ‐5.3% • Marketing of Littlehampton s
Slide 8: Financing and Tax
FINANCING AND TAX Financing • Bank interest payable fell to £15.6m (FY12: £16.4m) ‐ lower net debt and lower effective interest rate • Net finance charge taking into account non cash adjustments* £15.1m (FY12: £18.1m) Tax • Income statement effective tax rate remains very low at 1% (FY12: 4%) • Move
Slide 9: Pensions
PENSIONS • IAS19 pension deficit of £114.3m, net of related deferred tax asset, a decrease of £1.6m from September 2012 • An asset backed structure was put in place during FY13 to address £40m of the actuarial deficit in the primary UK scheme • Cash requirement for FY14 expected to remain between £1
Slide 10: Exceptional Items
EXCEPTIONAL ITEMS Income FY13 Exceptional Items Statement £m Integration costs of UK acquisitions (2.7) Integration costs of US acquisitions (1.5) Property related charges (9.2) Pension curtailment gain 4.4 Pre tax impact (8.9) Tax relief on exceptional items and resolution of tax positions 8.1 Reas
Slide 11: EPS and Dividend
EPS AND DIVIDEND EPS EPS FY13 FY12 • Adjusted earnings 15.6% ahead Adjusted earnings2 £56.9m £49.2m • Adjusted earnings per share up 13.3% Denominator for earnings per 393.6m 385.0m share Adjusted earnings per share2 14.5p 12.8p Dividend Dividend FY13 FY12 • Final dividend proposed of 2.9 pence Tota
Slide 12: Cashflow and Net Debt
CASHFLOW AND NET DEBT Net debt at 27 September 2013 of £232.8m – equivalent to 2.3 times Net Debt/EBITDA £m FY13 FY12 EBITDA 101.3 93.5 Working capital movement 9.9 23.4 Net capex (34.9) (30.4) Interest & tax (14.5) (13.6) Operating cashflow 61.8 72.9 Pension financing (13.7) (14.8) Exceptionals (20
Slide 13: Borrowings Profile
BORROWINGS PROFILE • Total committed facilities of £430m – weighted average debt maturity of 3.2 years as at 26 November 2013 • £50m bilateral loan facility extended by two years to 2018 • Refinanced $65m of US private placement notes with new 8 year facility subsequent to year end £m 280 60 50 40 O
Slide 14: Summary - Financial Performance
SUMMARY ‐ FINANCIAL PERFORMANCE • Resilient operational performance in a challenging market • Strong adjusted EPS growth of 13.3% to 14.5p • Strong dividend per share growth of 12.9% to 4.8p with final proposed dividend of 2.9p • Net debt decrease of £25.2m to £232.8m. Net Debt/EBITDA 2.3 times 14
Slide 15: Operating & Strategic Review
OPERATING & STRATEGIC REVIEW PATRICK COVENEY CHIEF EXECUTIVE OFFICER
Slide 16: FY13 Performance Priorities
FY13 PERFORMANCE PRIORITIES DRIVE revenue and margin momentum of UK 1 business Complete INTEGRATION of UK portfolio and set 2 up organisation for further growth 3 SCALE up US food to go business 16
Slide 17: UK Convenience Performance - Market Context
1 UK CONVENIENCE PERFORMANCE ‐ MARKET CONTEXT Challenging H1 H2 Improving volume consumer environment confidence Chilled convenience* 3.2% Horsemeat 2.5% Horsemeat scandal impact 1.2% H1 H2 FY Endless Great British winter summer * Source, Nielsen, pre‐defined chilled convenience foods categories H1
Slide 18: UK Convenience Performance - Tackling Market Challenges
1 UK CONVENIENCE PERFORMANCE ‐ TACKLING MARKET CHALLENGES Challenge Greencore Actions in FY13 Delivering •• Driving Driving ‘Lean ‘Lean Greencore’, Greencore’, operational operational efficiencies efficiencies and and waste waste margins reduction reduction across across portfolio portfolio in •• Ta
Slide 19: UK Convenience Performance - Divisional Highlights
1 UK CONVENIENCE PERFORMANCE ‐ DIVISIONAL HIGHLIGHTS • Slow H1 but very strong H2 helped by good summer weather, share Food to Go wins and successful range re‐ 37%* launches Market Market share share c. c. 40% 40% of of Group Group Pre‐packed Pre‐packed • Revenue growth: sandwiches revenue++ revenue
Slide 20: Strategy Delivery - UK Integrations Successfully Completed
2 STRATEGY DELIVERY ‐ UK INTEGRATIONS SUCCESSFULLY COMPLETED • Spalding salads & Northampton sandwich businesses fully integrated in Food to Go Complete Uniq • Restructuring and refocus of desserts business now Integration complete; disposal of Minsterley to Müller Dairy UK • Commercial and capabili
Slide 21: Greencore USA - Evolution of Our Business
3 GREENCORE USA ‐ EVOLUTION OF OUR BUSINESS • Transformation completed in FY13 Newburyport & • Move to a food to go, small store Brockton, MA business Salt Lake City, UT • Multi‐regional asset footprint Chicago, IL Fredericksburg, VA • Tight customer and product portfolio Jacksonville, FL • Ongoing
Slide 22: Greencore USA - FY13 Delivery
3 GREENCORE USA ‐ FY13 DELIVERY • Reported revenues over 60% higher • Successful integration of MarketFare and Schau • Focused on customers with the capability and desire to grow • Delivered growth and innovation with our largest US customer; 7‐Eleven • Starbucks delivered as major new customer acro
Slide 23: Strategic Review
STRATEGIC REVIEW … reflecting implementation Strong performance trajectory… of clear and consistent strategy FY11 FY12 FY13 • Building scale, growth and capability in Food to Go Revenue 804.2 1,161.9 1,197.1 • A two geography growth strategy – (£m) UK and US Operating 51.5 70.7 76.5 • A balanced cus
Slide 24: Strategic Review - A Focused Growing Food to Go Leader
STRATEGIC REVIEW ‐ A FOCUSED GROWING FOOD TO GO LEADER Revenue Revenue £1.2bn c. % of run UKUK UK UK UK UK USUS Ingredients Ingredients & & Food FoodtotoGo Go Prepared Prepared Meals Meals Grocery** Grocery** Food FoodtotoGo Go Property Property rate revenue* 40 20 20 15 5 Food to Go long term focus
Slide 25: Outlook
OUTLOOK • Steady improvement in economic conditions but: • Impact yet to be seen in UK grocery retail market more broadly • Recent increase in input cost inflation, particularly in UK protein and dairy markets • We enter the new financial year with good momentum in our businesses • We remain well po
Slide 26: Greencore - bringing convenience to good food
greencore bringing convenience to good food
Slide 27: Appendix
greencore group Appendix
Slide 28: IAS 19 Revised - Impact
IAS 19 REVISED ‐ IMPACT • IAS19 (Revised) to be applied in FY14 • There will be no impact to cash funding requirement and no impact to deficit • Income Statement negatively impacted due to treatment of scheme administration costs and expected increase of non cash financing charge Estimated FY13 impa
Slide 29: About Greencore
ABOUT GREENCORE • A leading manufacturer of convenience food in the UK and the US • Strong market positions in the UK convenience food market across food to go, chilled prepared meals, chilled soups and sauces, ambient sauces & pickles, cakes & desserts and Yorkshire puddings • A fast growing food t
Slide 30: History
HISTORY ORIGINS TRANSITION FOCUS a broad‐based food and the exit of sugar and the convenience food in the UK and agribusiness centred around the rebalancing of the portfolio the US Irish sugar business • Greencore established in 1991 • Exit of sugar announced in 2006 • Strong UK growth through follo
Slide 31: Business Overview
BUSINESS OVERVIEW Food Food to to Go Go USA USA •No.1 •No.1 manufacturer manufacturer of of sandwiches sandwiches •A •A fast fast growing growing foodfood to to go go business business inin the the US, US, •UK serving serving both the convenience and small store both the convenience and small store
Slide 32: Category Scale in the UK
CATEGORY SCALE IN THE UK Market Market Position Share Food to Go •Sandwiches No.1 37% •Sushi No.3 22% •Salads No.4 11% Chilled Meal Solutions •Chilled Italian Meals No.1 30% •Quiche No.1 46% •Chilled Italian Pasta Sauce No.2 37% Other Meal Occasions •Own Label Cooking Sauces No.1 79% •Own Label Pick
Slide 33: Greencore - bringing convenience to good food
greencore bringing convenience to good food