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Creating Sustainable Value For All
26 July 2016
Full Year Ended 31 May 2016
Final Results
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Final Results FY2016
Introduction Richard Harvey
Overview Alex Kanellis
Financial Review Brandon Leigh
Regional Overview Alex Kanellis
Summary & Outlook Alex Kanellis
Closing Comments Caroline Silver
Q&A Session All
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CAN DO
Update, Future Direction
Overview
Alex Kanellis
CEO
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Overview
• Revenue up 5.9% and profit broadly flat on a constant currency basis
• Strong performance in Europe offsetting difficult trading environment in Africa
• New product launches maintaining or growing market shares in major markets and categories
• Strong balance sheet with net debt at 1.2 x
EBITDA • Group’s 3 year project to move to a new
operating model now complete and SAP implementation well underway
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CAN DO
Update, Future Direction Brandon Leigh CFO
Financial Review
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Financial Highlights
Reported results before
exceptional items1
Year ended 31 May 2016
Year ended 31 May 2015
Reported Change %
Constant Currency %
change3
Like for Like % change4
Revenue2
£821.2m £819.1m 0.3% 5.9% (1.4%)
Operating profit £108.5m £114.4m (5.2%) (1.7%) (4.5%)
Profit before tax £103.0m £108.8m (5.3%) (1.8%) (4.7%)
Adjusted basic earnings per share
17.22p 17.94p (4.0%) (0.4%) (3.7%)
Dividend per share 8.11p 8.00p
Net debt5
(£147.1m) (£157.4m)
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1 Exceptional items before tax (2016: costs £19.3m; 2015: costs £24.8m). 2 Excludes joint ventures revenue of £176m (2015: £281m). 3 Constant currency comparison (2015 results retranslated at 2016 exchange rates). 4 Like for like comparison after adjusting 2015 for constant currency and 2016 for acquisitions and disposals in current and prior year. Also referred to as underlying. 5 Net debt, above and hereafter, is defined as cash, short-term deposits and current asset investments, less bank overdrafts and borrowings.
Notes:
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Revenue Bridge (£’m)
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819.1 821.2
3.3
53.0
(43.4)
(10.8)
Revenue 2015 Foreignexchange
Trading five:am Nutricima Revenue 2016
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Operating Profit Bridge (£’m)
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114.4
108.5
0.5
2.6
(3.9)
(5.1)
Operatingprofit 2015
Foreignexchange
Trading five:am Nutricima Operatingprofit 2016
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Category Revenue Review
£124.5m
£413.2m £165.6m
£111.7m
Personal Care Up 2.4%
Electricals Down 12.7%
Food & Nutrition Up 0.1%
Home Care Down 2.8%
Notes:
• Variances on a like for like basis at constant currency with adjustment for acquisitions and disposals.
• Food and Nutrition total includes £63.6m of Nutricima revenue.
• JV revenue not included above – PZ Wilmar was £175.8m (FY15 £280.5m, which includes pre-acquisition Nutricima revenue).
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Regional Financial Overview
AFRICA
ASIA
Like for like % change
Constant currency % change
EUROPE
(8.3%)
(2.0%)
5.6% 5.6%
(0.2)%
9.6% £357.2m
£188.2m
£275.8m
Revenue
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Regional Financial Overview
AFRICA
ASIA
Like for like % change
Constant currency % change
EUROPE
(23.5%)
(0.5%)
6.3% 6.3%
2.7%
(16.3%) £30.4m
£16.4m
£61.7m
Operating Profit
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Net Debt Bridge (£’m)
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Notes: * Other – Includes MI dividends (£2.2m), net interest cost (£5.5m), ESOT purchases (£4.2m) and proceeds from sale of fixed assets (£2.6m). ** Capex – includes asset additions in relation to SAP implementation (£13.9m).
(157.4)
7.1
99.3 (17.9) (9.4)
(33.3)
(35.5)
(147.1)
Net debt 2015 Operating cashflow
(ex WC)
Taxation Other* Dividends Capex** Working capital Net debt 2016
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CAN DO
Update, Future Direction
Regional Overview
Alex Kanellis
CEO
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Africa – Nigeria Macro Overview
• Tight liquidity and restricted foreign exchange availability
• Group’s knowledge of trading in volatile environments important
• Official Naira exchange rate remained stable against US$ during year – new
flexible rate approximately 40% lower
• All business units sold relatively well with price points catering for all consumers - facing significant squeeze on disposable income
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Africa
• Revenue maintained in Home Care and Personal
Care despite extremely competitive
environment
• Electricals performance lower than previous
year although market share remains strong
• Nutricima revenue and operating profit ahead of
previous year driven by success of NuNu &
Olympic brands
• PZ Wilmar edible oil brands Mamador and Devon
King’s consumer pack sales doubled year on year
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Asia
• In Australia growth from Personal Care, Beauty
and Food & Nutrition offsetting challenging Home
Care trading conditions
• Rafferty’s Garden and five:am showed good results. Rafferty’s Garden expanding product
range into yoghurts using five:am facilities
• Strong revenue growth in Indonesia across newly
relaunched Cussons Baby and Personal Care
portfolios
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Europe • All brands in UK Washing and Bathing
division performed well driven by a
continuous programme of renovation and
innovation
• Imperial Leather portfolio extended with
new range of Sweets and Fruits bath and shower products
• Carex range expansion into bath and
shower
• Original Source performed well with new
fragrance launches and campaigns
• Solid performance in Poland and Greece
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Europe • UK Beauty division delivered strong
revenue and profit growth significantly ahead of last year
• St.Tropez achieved excellent growth in key markets of UK, US and Australia
with the new in shower gradual tan lotion
• Sanctuary Spa benefitting from new product launches and continuing popularity of #LetGo campaign
• Successful product launches also achieved across Fudge and Charles Worthington brands
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CAN DO
Update, Future Direction
Summary & Outlook
Alex Kanellis
CEO
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• Group well placed for future growth with
strong brand portfolios and excellent new
product pipelines
• Underlying revenue and operating profit
growth expected in all regions
• Nigerian results impact on Naira translation
to sterling. Liquidity beginning to improve
• Group’s balance sheet remains strong and
well placed to pursue new opportunities as
they arise
• Overall performance since the year-end has
been in line with expectations
Summary & Outlook
Alex
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CAN DO
Update, Future Direction
Closing Comments
Caroline Silver
Non-executive Director
New Chair – January 2017
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CAN DO
Update, Future Direction
Q&A Session
Alex Kanellis Brandon Leigh
CEO CFO