Bunzl Plc · LSE:BNZL
Bunzl — Shareholder Meeting (2009)
38 slides from Bunzl's shareholder meeting presentation, 2009
Slide 1: Annual General Meeting 2009
ANNUAL GENERAL MEETING 2009
Slide 2: Annual General Meeting 2009 Agenda
Annual General Meeting 2009 Agenda 1. Welcome, Anthony Habgood, Chairman 2. Business Overview, Michael Roney, CEO 3. Q & A 4. Resolutions
Slide 3: Revenue
Revenue £m 4500 Other 4000 Food Service 3500 Paper Trading Paper Making 3000 Building Supplies 2500 Paper Converting 2000 Paper Distribution 1500 Current Filtrona 1000 Current Bunzl 500 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Slide 4: Operating Profit
Operating Profit* £m 290 Other 240 Food Service Paper Trading 190 Paper Making Building Supplies 140 Paper Converting 90 Paper Distribution Current Filtrona 40 Current Bunzl -10 † † † † 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 † IFRS *Before intangible amortisation and corporate costs
Slide 5: Adjusted Earnings per Share
Adjusted Earnings per Share* Pence 60 55 50 45 40 35 30 25 20 15 10 5 0 † † 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05† 06 † 07 08 † IFRS *Before goodwill and intangibles
Slide 6: Annual General Meeting 2009 Agenda
Annual General Meeting 2009 Agenda 1. Welcome, Anthony Habgood, Chairman 2. Business Overview, Michael Roney, CEO 3. Q & A 4. Resolutions
Slide 7: Our Business
Our Business • Leading specialist distribution Group • Supplying a wide range of non-food consumable products • Our customer markets include grocery, foodservice, cleaning and safety, non-food retail and healthcare • Over 13,000 employees • 23 countries in 4 continents
Slide 8: 2008 Business Area Analysis
2008 Business Area Analysis Revenue Operating profit* 5% 6% 20% 23% 49% 45% 26% 26% North America UK & Ireland Continental Europe Rest of the World Diversified by geography *Before intangible amortisation and corporate costs
Slide 9: Markets We Serve 2008
Markets We Serve 2008 Healthcare Other 7% 8% Non-Food Retail 8% Grocery 25% Cleaning & Safety 19% Foodservice 33% Diversified by customer markets
Slide 10: Summary 2008
Summary 2008 Growth % Constant Reported Exchange Revenue 17 8 Operating profit* 15 7 Adjusted eps* 17 9 Dividend per share 10 Return on operating capital 57% Operating cash flow to operating profit* 92% *Before intangible amortisation
Slide 11: Commitment to Growth: Acquisitions
Commitment to Growth: Acquisitions Business Acquired Country Sector Revenue Günter Guest Supplies January Germany Horeca €9m Prot Cap February Brazil Safety R$118m Salgo April Australia Horeca A$32m Worldpack June Netherlands Non-Food Retail €19m A&E Russell July United Kingdom Safety £21m Hicosa Ju
Slide 12: Key Highlights 2008
Key Highlights 2008 • Strong growth in revenue, operating profit and eps • Continued strong cash flow • Acquisition expenditure of £123m in six countries • First step into the Brazilian market • Good growth in sourcing operation in Shanghai
Slide 13: Strategy
Strategy Organic Growth • New customers • Extend product range • Growth sectors and geographies Acquisition Growth • Geographic expansion • Bolt-on acquisitions • Anchor acquisitions Operating Model Efficiencies • Focus on efficiency in every aspect of business • IT systems as source of competitive
Slide 14: Operating in a Recessionary Environment
Operating in a Recessionary Environment Resilient Markets High Cash Generation Financial Discipline Authority and Alignment Diversified Customer Benefits Well positioned for current environment
Slide 15: Resilient Markets
Resilient Markets Foodservice Grocery 33% 25% Cleaning & Hygiene Healthcare 9% 7% Other customer sectors include Safety and Non-Food Retail c.75% revenue from resilient markets
Slide 16: High Cash Generation
High Cash Generation High Cash Conversion • Operating cash conversion Year Cash to PBITA 2008 92% consistently greater than 2007 103% 90% of PBITA 2006 92% 2005 95% 2004 93% Low Working Capital Requirement • Average working capital to sales at c.9% • Inventory turns at c.9x • Debtor days at c.45 Low
Slide 17: Financial Discipline
Financial Discipline Strong Balance Sheet • Net debt to EBITDA of 2.4x (exchange adjusted) • Scope for further acquisitions Good Financial Controls • Uniform reporting across all geographies • Acquisitions approved centrally Tight Cost Control • Small head office • People • Defined contribution pens
Slide 18: Authority and Alignment
Authority and Alignment Decentralised Operations • Hands-on management with customer focus • Local decision making • Full P&L responsibility Well Aligned • Incentives based on PBIT and return on operating capital Decentralised and well aligned
Slide 19: Diversified
Diversified 23 Countries 4 Continents 6+ Sectors Diversified geographically and by sector
Slide 20: Customer Benefits
Customer Benefits Bunzl Offering • One stop shop • One point of contact Customer Benefits • One invoice • Lower cost of doing business • Globally sourced products • Reduced working capital • Management information • Lower customer inventories • Flexible delivery options Financial benefits for custom
Slide 21: Annual General Meeting 2009 Agenda
Annual General Meeting 2009 Agenda 1. Welcome, Anthony Habgood, Chairman 2. Business Overview, Michael Roney, CEO 3. Q & A 4. Resolutions
Slide 22: Annual General Meeting 2009 Agenda
Annual General Meeting 2009 Agenda 1. Welcome, Anthony Habgood, Chairman 2. Business Overview, Michael Roney, CEO 3. Q & A 4. Resolutions
Slide 23: Resolution 1: Consideration of accounts
Annual General Meeting 2009 Resolution 1: Consideration of accounts Proxies Cast For/ Discretionary Against Withheld 190.59m 190.54m 0.05m 0.09m 100% 99.98% 0.02%
Slide 24: Resolution 2: Declaration of final dividend
Annual General Meeting 2009 Resolution 2: Declaration of final dividend Proxies Cast For/ Discretionary Against Withheld 190.58m 190.58m - 0.09m 100% 100%
Slide 25: Resolution 3: Re-appointment of Mr A J Habgood as a director
Annual General Meeting 2009 Resolution 3: Re-appointment of Mr A J Habgood as a director Proxies Cast For/ Discretionary Against Withheld 187.88m 187.58m 0.3m 2.8m 100% 99.84% 0.16%
Slide 26: Resolution 4: Re-appointment of Mr B M May as a director
Annual General Meeting 2009 Resolution 4: Re-appointment of Mr B M May as a director Proxies Cast For/ Discretionary Against Withheld 190.6m 190.58m 0.02m 0.08m 100% 99.99% 0.01%
Slide 27: Resolution 5: Re-appointment of Mr C A Banks as a director
Annual General Meeting 2009 Resolution 5: Re-appointment of Mr C A Banks as a director Proxies Cast For/ Discretionary Against Withheld 190.59m 190.56m 0.03m 0.08m 100% 99.98% 0.02%
Slide 28: Resolution 6: Re-appointment of Mr P W Johnson as a director
Annual General Meeting 2009 Resolution 6: Re-appointment of Mr P W Johnson as a director Proxies Cast For/ Discretionary Against Withheld 190.59m 190.57m 0.02m 0.08m 100% 99.99% 0.01%
Slide 29: Resolution 7: Re-appointment and remuneration of auditors
Annual General Meeting 2009 Resolution 7: Re-appointment and remuneration of auditors Proxies Cast For/ Discretionary Against Withheld 187.87m 184.6m 3.27m 2.81m 100% 98.26% 1.74%
Slide 30: Resolution 8: Approval of remuneration report
Annual General Meeting 2009 Resolution 8: Approval of remuneration report Proxies Cast For/ Discretionary Against Withheld 190.57m 186.35m 4.22m 0.1m 100% 97.79% 2.21%
Slide 31: Resolution 9: Scrip dividend scheme
Annual General Meeting 2009 Resolution 9: Scrip dividend scheme Proxies Cast For/ Discretionary Against Withheld 190.58m 190.56m 0.02m 0.1m 100% 99.99% 0.01%
Slide 32: Resolution 10: Authority to allot unissued shares
Annual General Meeting 2009 Resolution 10: Authority to allot unissued shares Proxies Cast For/ Discretionary Against Withheld 190.6m 190.11m 0.49m 0.08m 100% 99.74% 0.26%
Slide 33: Resolution 11: Authority to allot shares for cash
Annual General Meeting 2009 Resolution 11: Authority to allot shares for cash Proxies Cast For/ Discretionary Against Withheld 190.58m 190.55m 0.03m 0.09m 100% 99.98% 0.02%
Slide 34: Resolution 12: Authority for the Company to purchase its own shares
Annual General Meeting 2009 Resolution 12: Authority for the Company to purchase its own shares Proxies Cast For/ Discretionary Against Withheld 190.59m 190.55m 0.04m 0.08m 100% 99.98% 0.02%
Slide 35: Resolution 13: Notice of general meetings
Annual General Meeting 2008 Resolution 13: Notice of general meetings Proxies Cast For/ Discretionary Against Withheld 190.58m 187.42m 3.16m 0.09m 100% 98.34% 1.66%
Slide 36: Resolution 14: Amendments to articles of association
Annual General Meeting 2009 Resolution 14: Amendments to articles of association Proxies Cast For/ Discretionary Against Withheld 190.57m 190.55m 0.02m 0.1m 100% 99.99% 0.01%
Slide 37: Resolution 15: Electronic communications
Annual General Meeting 2009 Resolution 15: Electronic communications Proxies Cast For/ Discretionary Against Withheld 190.53m 190.47m 0.06m 0.14m 100% 99.97% 0.03%
Slide 38: Annual General Meeting 2009
ANNUAL GENERAL MEETING 2009