Slide 1: Pro-Pac Packaging Limited Full Year Results - 2020
Pro-Pac Packaging Limited Full Year Results - 2020 Tim Welsh CEO & Managing Director Iona MacPherson CFO 25 August 2020
Slide 2: Important Information
1 Pro-Pac Packaging Limited: Full Year Results Important Information This Presentation contains the summary information about the current activities of Pro-Pac Packaging Any forecasts or other forward-looking statements contained in this Presentation are subject to known Limited and its controlled e
Slide 3: About Pro-Pac Packaging
2 Pro-Pac Packaging Limited: Full Year Results About Pro-Pac Packaging Pro-Pac Packaging is an innovative Flexibles, Industrial and Rigid packaging company with a diversified distribution and manufacturing network throughout Australia and New Zealand Flexibles Industrial Rigid • With its Australian
Slide 4: FY20 Results & Highlights
3 Pro-Pac Packaging Limited: Full Year Results FY20 Results & Highlights FY20 has seen management drive considerable improvement in all key operating & financial metrics, building a platform for further improvement and future growth EBITDA* Performance (A$m) Zero Harm Journey Embedding the Team Net
Slide 5: A Zero Harm Focus
4 Pro-Pac Packaging Limited: Full Year Results A Zero Harm Focus LTIFR reduced by 14.1% to 6.9 FY20 COVID-19 Impacts Strict protocols in place to protect the safety, health & wellbeing of our Targeting Zero Harm people in Australia and New Zealand, whilst ensuring continuity of Driving a culture o
Slide 6: Financial Results Summary
5 Pro-Pac Packaging Limited: Full Year Results Financial Results Summary Stronger balance sheet, reduced leverage and improved profitability delivered Post- Adopt Pre- FY20 performance includes: AASB 16 AASB 16 AASB 16 A$ million FY20 FY20 FY20 FY19 Change • Revenue of $478.2m (down 1.6% on pcp) due
Slide 7: Disciplined Cash Flow Management
6 Pro-Pac Packaging Limited: Full Year Results Disciplined Cash Flow Management A disciplined focus on cash flow management delivered significant reductions in net debt FY20 Review Cash Management Embedded cash management discipline delivered: A$ millions FY20 FY19 Change • 150% operating cash flow
Slide 8: Improving the Balance Sheet
7 Pro-Pac Packaging Limited: Full Year Results Improving the Balance Sheet Our capital management priorities are to strengthen the balance sheet, provide financial flexibility for growth and shareholder returns Balance Sheet FY20 Review A$ millions JUN-20 JUN-19 Change Continued focus on working cap
Slide 9: Flexibles Packaging
8 Pro-Pac Packaging Limited: Full Year Results Flexibles Packaging With its Australian and New Zealand manufacturing and distribution network, Pro-Pac Packaging provides bespoke flexible packaging solutions specifically tailored for the industrial, food and beverage, health and agriculture sectors F
Slide 10: Industrial Packaging
9 Pro-Pac Packaging Limited: Full Year Results Industrial Packaging A one stop shop for primary, secondary and tertiary packaging with deep expertise in food, beverage, agriculture, retail and health sectors FY20 Review A$ millions FY20 FY19 Change FY20 performance includes: Revenue 123.2 152.6 (19.
Slide 11: Rigid Packaging
10 Pro-Pac Packaging Limited: Full Year Results Rigid Packaging A solution oriented business that focusses on partnering with the small to medium customers seeking technical and business support with tailored, personalised product and supply chain services FY20 Review A$ millions FY20 FY19 Change FY
Slide 12: FY21 Transformational Projects
11 Pro-Pac Packaging Limited: Full Year Results FY21 Transformational Projects Strategic projects initiated to optimise operational footprint, increase manufacturing capability & drive efficiency in operations Chester Hill Transition (announced to the ASX on 27 May 2020) • Manufacturing at Chester H
Slide 13: Outlook
12 Pro-Pac Packaging Limited: Full Year Results Outlook
Slide 14: FY21 Outlook & Business Priorities
13 Pro-Pac Packaging Limited: Full Year Results FY 21 Outlook & Business Priorities As we enter FY21, the broader macroeconomic conditions remain uncertain due to the ongoing impact of COVID-19. We will continue to prioritise the safety, health & wellbeing of our people in Australia, New Zealand and
Slide 15: Appendices
14 Pro-Pac Packaging Limited: Full Year Results Appendices
Slide 16: Adopting AASB 16 Leases
15 Pro-Pac Packaging Limited: Full Year Results Adopting AASB 16 Leases AASB 16 Leases became effective for Pro-Pac Packaging on 1 July 2019, requiring operating lease arrangements to be recognised on balance sheet The impact on the profit or loss for FY20 is shown in the table below: Impact of adop
Slide 17: Reconciliations
16 Pro-Pac Packaging Limited: Full Year Results Reconciliations Reconciliation to EBIT* & EBITDA* Post- Adopt Pre- AASB 16 AASB 16 AASB 16 A$ millions FY20 FY20 FY20 FY19 Change Profit/(loss) before tax 9.4 (2.9) 12.4 (152.7) 165.0 Add: significant items 5.0 - 5.0 163.3 (158.3) Add: finance costs 11
Slide 18: Reconciliations
17 Pro-Pac Packaging Limited: Full Year Results Reconciliations Reconciliation to Operating Cash Flow* Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 FY20 FY20 FY20 FY19 Change Net cash flows from/(used in) operating activities 53.5 8.5 45.0 15.8 29.2 Add: income tax paid (2.4) - (2.4) 4.5 (6.
Slide 19: Reconciliations
18 Pro-Pac Packaging Limited: Full Year Results Reconciliations Reconciliation to Gearing* Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 FY20 FY20 FY20 FY19 Change EBITDA* 46.4 14.0 32.4 28.1 4.3 Add: unconsolidated LTM EBITDA from acquisitions^ - - - 1.2 (1.2) Adjusted EBITDA* 46.4 14.0 32.4
Slide 20: Reconciliations
19 Pro-Pac Packaging Limited: Full Year Results Reconciliations Reconciliation of Significant Items* Post- Adopt Pre- A$ millions AASB 16 AASB 16 AASB 16 FY20 FY20 FY20 FY19 Change Goodwill impairment losses - - - 149.0 (149.0) Surplus lease and exit costs 2.1 - 2.1 1.0 1.1 Restructuring costs 3.2 -
Slide 21: Definitions of Non-IFRS Financial Measures
20 Pro-Pac Packaging Limited: Full Year Results Definitions of Non-IFRS Financial Measures Unless otherwise stated in this presentation, all metrics are disclosed pre-AASB 16 FY19 means the year ended 30 June 2019 FY20 means the year ended 30 June 2020 Adjusted EBITDA means EBITDA, plus any unconsol