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McBride plc Investor Presentation May 2007

McBride plc Investor Presentation May 2007. BEHIND THE LABEL. McBride snapshot. Europe’s leading provider of private label Household and Personal Care products Focus on driving growth of Private Label market share €1,000m annual revenues (1) No. 1 in UK, France, Italy and Poland

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McBride plc Investor Presentation May 2007

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  1. McBride plcInvestor PresentationMay 2007 BEHINDTHE LABEL

  2. McBride snapshot • Europe’s leading provider of private label Household and Personal Care products • Focus on driving growth of Private Label market share • €1,000m annual revenues(1) • No. 1 in UK, France, Italy and Poland • 24% return on capital employed • Asset turnover > 4 • 18 factories in 7 countries and China sourcing office • Established business model - customer service, innovation, scale, efficiency, value added services, people and financial return (1) Pro forma including full year effect of Henkel private label and Dasty acquisitions

  3. Comprehensive range of household and personal care products Household Personal care Textile washing - washing powders, tablets and liquids - fabric conditioner - anti-calc products - laundry aids Hair care - shampoo - conditioner - hair sprays - styling aids Body care - bath and shower gel - liquid soap - deodorant - skin care - baby care Dishwashing- machine dish wash products - rinse aids - washing up liquid Household cleaners - all purpose cleaners - room specific cleaners - toilet cleaners - bleach Male grooming - shaving gel - shaving foam - after shave - men’s deodorant Oral care - toothpaste - mouthwash Air care - timed release - gels - plug-ins

  4. Markets - Size (€bn. M.S.P. 2006)& Growth (% p.a. since 2000) Household Personal Care Source : Euromonitor/McBride

  5. Private label is taking share in European markets Source: Taylor Nelson Sofres, McBride (data for years to December 2005 and December 2006) Note: Data for certain countries derived from limited range of household products

  6. Why is private label share growing? • Retailer concentration • Growth of discount retail sector • Retailer strategy • need to differentiate • margin enhancement • Consumer preference • quality vs price • performance vs branded products (e.g. Stiftung Warentest) • Innovation • premium • convenience • environmental

  7. Pro forma revenue by product category and geographic market Including full year effect of Henkel private label and Dasty acquisitions (based on results for 12 months to 31 December 2006). Revenue by geographic market is by destination.

  8. Pan-European presence 18 factories in 7 countries 1 Barrow 2 Burnley 3 Middleton 4 Bradford 5 Hull 6 Coventry 7 Rosporden 8 Moyaux 9 Etain 10 Ieper (x2) 11 Estaimpuis 12 Foetz 13 Strzelce 14 Sallent 15 Solaro 16 Bergamo (x2) UK UK UK UK UK UK France France France Belgium Belgium Luxembourg Poland Spain Italy Italy 1 2 3 4 5 6 13 10 11 12 8 9 7 16 15 14

  9. Strategy for growth - organic • To lead the growth of private label household and personal care products in Europe • Commercial Leadership • focus on attractive product categories : auto-dishwash, specialist cleaners, liquid detergents, air care and personal care • innovation : development of new and existing products • work with discount retailers • reinforcing category development skills • Operational Leadership • optimise customer service • continuous improvement • further drive asset utilisation

  10. Strategy for growth - acquisition • Focus on attractive product categories : auto-dishwash, specialist cleaners, liquid detergents, air care and personal care • Increase exposure to growing discount distribution channel • Reduce dependency on UK and France household • Strategic and in-fill opportunities • Leverage established business model and systems • Consolidation opportunity • Attractive returns available

  11. Acquisition of Dasty Italia SpA Dasty Italia’s main factory in Bergamo • Producer of specialist household cleaners • Private label growth in Dasty’s product categories of 5% p.a. • Strong position with discount retailers • Highly complementary customers/products to McBride’s existing Italian business • Creates clear leader in Italian private label household products • Italy now McBride’s fourth largest market • Good scope for cost synergies • Expected to enhance EPS in first full year(1) Dasty Italia acquisition financial metrics 2005 revenue: €40.4m 2005 operating profit: €3.9m Acquisition price: €29m(2) (1) Before amortisation of acquired intangible assets (2) Enterprise value

  12. Acquisition of Henkel’s European private label household products business Chemolux factory in Luxembourg • Acquisition includes • Chemolux ADW products business in Luxembourg (45,000 tonnes per annum) • smaller specialist cleaners business in UK • German private label sales/marketing team • Significantly expands McBride’s presence in central European territories • Increases exposure to growing ADW product category and discount sector • McBride to produce Henkel branded ADW products under long term contract • Expected to enhance EPS in first full year(1) Henkel acquisition financial metrics 2006 revenue: £92.5m 2006 operating profit: £4.7m Acquisition price: £39.3m(2) (1) Before amortisation of acquired intangible assets (2) Enterprise value; £4.7m deferred consideration

  13. European private label household and personal care product providers

  14. McBride established business model • Focus on Private Label • Use scale advantage to provide efficiency and value added services • market and consumer intelligence • category development advice • technical and product safety • fast, high quality innovation • best in class customer service • Heavy usage of SAP systems - workflow and financial • Stock replenishment and link to customer systems • Competitive advantage from quality of people, attitudes & behaviours • Strong financial position and high asset utilisation • Continuous cost management

  15. Continuous cost management • Purchasing strategies/alternative sources • buying long • increased sourcing from China etc • Alternative ingredients • Value engineering • Improved efficiency • reduced waste • labour productivity • capital investment • leverage increasing scale • enhancing asset utilisation • Changes to pack formats • Overhead reduction

  16. Financial profile • Historic annualised revenues of over €800m - UK 45%; France 30% • Recent operating margins of c. 6% • UK c. 9%, WCE c. 3% • Household c. 5%, Personal Care c. 8% • Growth in UK market and personal care with weak French household market and upward pressure on raw material costs • H 1 Op. Profit up 6% , E.P.S.(dil.) up 7% • Strong cash generative characteristics provide capacity for acquisitions: • In-fill : 2 UK, 1 Poland • Strategic : Dasty, Henkel Note: Figures exclude exceptional items

  17. Summary • Leading supplier of FMCG products in growing private label segment • Robust business and financial model • Clear strategy • lead growth of private label HPC products in Europe • blend of organic and acquisitive growth • focus on selected attractive product categories • enhance exposure to growing retail distribution channels • continuous improvement of operating performance • increase shareholder value • Significant future opportunities

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