Compass Group Plc · LSE:CPG
Compass — CAGE Annual Conference 2017
15 slides from Compass's conference presentation, Mar 23, 2017
Slide 1: Compass Group PLC - CAGE Annual Conference 2017
Compass Group PLC CAGE Annual Conference 2017 Sandra Moura Head of Investor Relations & Corporate Affairs
Slide 2: Disclaimer
Disclaimer Certain information included in the following presentation is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters
Slide 3: We are a global leader in food services
We are a global leader in food services REVENUE OPERATING PROFIT INDUSTRY LEADING MARGIN £20bn £1.4bn 7.2% 10 YEAR ORGANIC GROWTH MARKET CAPITALISATION GREAT PEOPLE 5%CAGR £25bn 500,000 3
Slide 4: The market and our strategy
The market and our strategy FOOD SERVICE MARKET Focus on food – our core competence c.£200bn Incremental approach to support services Regional players Compass Structural Prioritise organic growth growth Aramark opportunity Self Bolt-on M&A Sodexo operated Best-in-class execution: cost advantage of s
Slide 5: We operate 50,000 client locations in 50 countries
We operate 50,000 client locations in 50 countries 2016 REVENUES Rest of World North America Europe 5
Slide 6: Some of our clients and contract structure
Some of our clients and contract structure REVENUE BY CONTRACT TYPE P&L Cost + Fixed Price 6
Slide 7: Sectorisation and client facing brands
Sectorisation and client facing brands 38% Business & of revenues Industry 23% Healthcare of revenues & Seniors 18% Education of revenues 12% Sports & of revenues Leisure 9% Defence of revenues Offshore & Remote 7
Slide 8: How we manage the business
How we manage the business Improve Client Sales Right sectors performance Right new clients, and Marketing right terms of existing clients Revenue Consumer Sales Drivers Right propositions Drive price Drive volume and Marketing Efficient sourcing Cost of Food Right quality and logistics In unit usag
Slide 9: Our competitive advantages
Our competitive advantages Decentralised approach Sectorisation and sub-sectorisation PEOPLE Scale in procurement and overheads People & performance culture 9
Slide 10: Organic revenue growth
Organic revenue growth 7% 6% 5% 5% CAGR 4% 3% 2% 1% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Notes 10 Excluding disposed businesses (SSP & Selecta). Underlying figures.
Slide 11: Operating profit
Operating profit Operating profit margin 4.4%* 5.1% 5.8% 6.5% 6.9% 6.9% 6.9% 7.1% 7.2% 7.2% 7.2% £1,500m 9% £1,200m CAGR £900m £600m £300m 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Notes 11 Excluding disposed businesses (SSP & Selecta). Underlying figures.
Slide 12: Free cash flow
Free cash flow Conversion 46%* 67% 78% 67% 74% 64% 65% 66% 59% 56% 63% £1.0bn £0.5bn £0.0bn 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Notes 12 Excluding disposed businesses (SSP & Selecta). Underlying figures.
Slide 13: Ongoing priorities for uses of cash
Ongoing priorities for uses of cash CAPEX M&A Appropriate investment: Required returns > cost of Efficient 2.5-3.0% of sales capital by the end of year 2 balance sheet Strong investment grade credit rating Target net debt/ DIVIDEND EBITDA 1.5x Growing in line with Shareholder returns constant curren
Slide 14: Business model: a proven and sustainable model
Business model Growth Organic Operating Margin efficiency Opex Investment Capex Bolt-on M&A EPS growth Returns to Progressive dividend Shareholders Capital returns A proven and sustainable model 14
Slide 15: Compass Group PLC
Compass Group PLC CAGE Annual Conference 2017 Sandra Moura Head of Investor Relations & Corporate Affairs