AGM Presentation - 21 April 2016 Forward Looking Statements The - - PowerPoint PPT Presentation
AGM Presentation - 21 April 2016 Forward Looking Statements The - - PowerPoint PPT Presentation
AGM Presentation - 21 April 2016 Forward Looking Statements The information in this presentation has not been independently verified and does not purport to be comprehensive. One51 is not undertaking any obligation to provide any additional
Forward Looking Statements
The information in this presentation has not been independently verified and does not purport to be
- comprehensive. One51 is not undertaking any obligation to provide any additional information or to update this
presentation or to correct any inaccuracies that become apparent. This presentation is neither a prospectus nor an
- ffer nor an invitation to apply for securities. The information contained in this presentation is for background
purposes only and is subject to material updating, completion, revision, amendment and verification. This presentation does not constitute or form a part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Any prospective investor must make its own investigation and assessments and consult with its
- wn adviser concerning any evaluation of the Company and its prospects.
No representation or warranty, express or implied, is or will be given by One51, its subsidiaries, its shareholders or their respective directors, officers, employees or advisers as to the accuracy or completeness of this presentation and, so far as permitted by law, no responsibility or liability is accepted for the accuracy or sufficiency of this
- presentation. In particular, without limitation, no representation or warranty is given as to the achievement or
reasonableness of any projection, estimate, target or forecast in this presentation, which it should be noted is provided for illustrative purposes only. This presentation contains forward-looking statements which reflect management’s current views and estimates. These forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. Management undertake no responsibility to revise any such forward looking statements to reflect any changes in management’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly, no reliance can be placed on the figures contained in such forward looking statements.
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Plastics Plastics consists of two sub-divisions, one being OPG and the other being IPL. Plastics supplies products to a broad range of customers across the following market sectors in Ireland, the UK, North America and China, from eight production facilities (three in the UK; one in Ireland; one in China; and three in North America):
- Environmental Containers
- Packaging
- Industrial Products
ClearCircle ClearCircle provides the following specialist environmental services to a broad range of customers from twelve facilities in Ireland and the UK:
- Hazardous waste management and industrial services
- Metals recycling
- Materials recovery
Group Overview
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2015 Highlights
- 32.4% growth in Revenue to €366.0m (2014: €276.5m)
- 67.1% increase in EBITDA to €36.1m (2014*: €21.6m)
- 95.7% growth in Profit after Tax (before exceptional items) to €31.9m
(2014*: €16.3m)
- 30.5% increase in Adjusted Diluted EPS to 6.98c (2014*: 5.35c)
- Net Debt of €120.3m (2014: €7.4m)
- Solid performance from Plastics
- Transformative acquisition of IPL in North America (July 2015)
- €51.8m (gross) in cash realised from investment in Altas Investments plc
(formerly NTR plc)
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*2014 amounts have been restated arising from the change in accounting policy with regard to how the Group accounts for its investment in Altas Investments plc, formerly NTR plc, from that of an available-for-sale financial asset to an equity-accounted associate undertaking.
2015 Highlights contd.
- Successful integration of Straight plc
- Rationalisation of underperforming UK metals businesses
- Organic and acquisition opportunities identified to drive future growth
- Greenway Environmental Services business acquired expanding ClearCircle
Environmental’s SES division in the UK
- Post year-end
– Acquired H&T Labour &Vacuumation Services Ltd - further augmenting ClearCircle’s offering in the UK SES market – €8m investment in Cork Plastics facility announced to leverage R&D and cross- selling between OPG/IPL
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One51 Plastics
2015 Plastics Highlights
- Revenue of €231.8m (2014: €122.5m)
- EBITDA of €33.1m (2014: €15.7m)
- Solid underlying trading performance driven by :
– Successful integration of Straight plc – Transformational IPL acquisition – Strong demand for environmental containers – Growth in Chinese operations
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Plastics Business Evolution
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Target to double Plastics EBITDA in the medium term through a combination of organic growth and acquisitions
Rebranding 2013 Acquisition of IPL 2015 International plastics manufacturer of significant size and scale
100%
Total EBITDA c. €16m
57% 43%
Total EBITDA c. €48m OPG IPL
- Acquisition of IPL
and Straight
- Rebranded to
OnePlastics Group
- Select
Acquisitions
- Organic
Growth
Operating in niche market segments characterised by high margins, defensive characteristics and significant growth prospects
Environmental Containers Packaging Industrial Products Products Market Position
- #1 UK
- #1 Canada
- Niche player in North America, UK and
Ireland
- Niche player in North America, UK,
Ireland and China
Key Customers
Local Authorities 9
Plastics Overview
Fragmented market place Organic Growth
- Investment in manufacturing facilities e.g. Ireland &
China
- Deliver manufacturing efficiencies
- Continued investment in R&D
- Leverage synergies & cross selling opportunities
between IPL & OPG M&A
- Focus on higher growth niche segments of the market
- European & North American geographic focus
- Synergy potential
- Target EBITDA > €10m and margin of 13% - 15%
- Target ROCE 10% - 15%
- Significant acquisition pipeline developed
Growing rigid plastics demand Substitution effect Continue to focus on existing segments which exhibit significant growth Leverage existing capabilities for entry into new segments Expand product range driven by customer/market demand relying on in-house R&D facilities Continue to review market
- pportunities to add new
plastics manufacturing technologies and product types Increasing product innovation Regulation
Favourable Market Backdrop Clear Strategy Future Market Focus Clear growth strategy based on a combination of organic growth and targeted M&A
Plastics Growth Strategy
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Geographic Footprint
One51 Plastics has significant international reach with sophisticated R&D capabilities
MGB PLASTICS
Wheeled Bin Manufacturer
6,000 m2 manufacturing facility with capacity to produce 1.5 million wheeled bins per annum. PPC
Paint Can Manufacturer
5,600 m2 manufacturing facility with a range of state
- f the art machinery.
AAC PLASTICS
Trade Moulding
5,100 m2 manufacturing facility with a well invested range of production machinery.
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PROTECH
Rigid Packaging, Electronics and OnePlastics Group’s dedicated Innovation Centre of Excellence
2,300 m2 manufacturing facility with an additional 1,400 m2 clean room facility.
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PROTECH BOSTON
Electronics
Representative office.
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PROTECH CHINA
Electronics
2,300 m2 manufacturing facility. STRAIGHTS
Wheeled Bin, Caddy & Kerbside Box Manufacturer
12,000 m2 manufacturing facility.
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ST-DAMIEN
Bulk Packaging & Environmental
50,300 m2 manufacturing facility.
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EDMUNDSTON
Material Handling & Thin Wall Packaging for Food Applications
12,100 m2 manufacturing facility. LEE’S SUMMIT, MO
Overcaps Business, Manufacturing Lids & Composite Lids
22,800 m2 manufacturing facility.
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IPL CIE, ST-DAMIEN
- Ctr. For Innovation & Excellence
1,000 m2 R&D facility.
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1 2 3 4 5 6 7 8 9 10 11
- 9 manufacturing facilities
- 2 R&D facilities in Cork and Québec
- c.1.3m square feet of manufacturing space
- 230+ machines
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Environmental Services
2015 Environmental Services Highlights
- Revenue of €134.2m (2014: €154.0m)
- EBITDA of €9.1m (2014*: €10.5m)
- ClearCircle’s SES division performed in line with expectations
– benefitting from underlying economic recovery in UK and Ireland
- Materials & Metals Recycling continues to face significant challenges
– impacted by depressed global demand & depressed commodity prices
- Continue to strengthen Specialist Environmental Services business offering
and geographic reach in Ireland & UK
13 * Excludes the impact of discontinued operations
Environmental Services Overview
Leading UK & Irish player in Environmental Services
Specialist Environmental Services (SES) Metals Recycling Activities / Services
- Hazardous waste management
- Oil and chemical spillage clean up
- Disposal and recycling of liquid sludge
- Contaminated soils
- Marine waste disposal
- Asbestos disposal
- Brokerage, storage and onward shipment of
hazardous wastes
- Fully automated glass and refrigeration recycling
facilities
- Dedicated fleet of specialist collection
vehicles
- End-of-life metals processor
- Off-site dismantling, decommissioning and
demolition
- Secure destruction of prototypes and
redundant stock
- Specialist metals recovery
Market Position #1 Ireland Small regional player in the UK #1 Ireland Small regional player in the UK Key Customers
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Environmental Services Growth Strategy
Strategic repositioning and growth will be achieved through a combination of organic growth and acquisitions Specialist Environmental Services Metals Recycling Organic Growth
- Economic recovery / GDP growth
- Increasing regulation
- Focus on specialist environmental service offering
- Total Waste Management contracts / outsourcing
- Secular trends in hazardous waste i.e. treatment vs. landfill
- Economic recovery / GDP growth
- Increasing regulation
- Commodity price recovery
- Diversify away from lower margin / more
volatile metals recycling segment M&A
- UK & Ireland M&A geographic focus
- Size - sub €10m EBITDA
- Target EBITDA margins of 12% - 13%
- Target ROCE >10%
- No M&A anticipated
Recent M&A Examples
- H&T acquired in 2016 - £3.7m EV
- Greenway Environmental Services business acquired in
2015 - £1.2m EV
- N/A
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Financials
EBITDA - by geography²
- 1. China and Ireland revenue reflects an adjustment for sales originating in China.
- 2. EBITDA by division and geography has been prepared before central overhead costs. Divisional overhead costs have been split 50:50 between Ireland and UK.
Ireland 25% UK 47% China 4% North America 24% Plastics 63% Environmental Services 37% Ireland 18% UK 45% China 7% North America 30% Plastics 78% Environmental Services 22%
Revenue - by geography¹ Revenue - by activity EBITDA - by geography² EBITDA - by activity²
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2015 Earnings Mix
€'m 2013 (Restated) 2014 (Restated) 2015 Revenue 250.9 276.5 366.0 Operating profit (before exceptional items) 9.3 14.0 16.5 Non-recurring items 1.5 (1.8) 3.7 Share of profit - discontinued operations 1.1 0.3
- Depreciation & Amortisation
8.5 9.1 15.9 EBITDA 20.4 21.6 36.1 EBITDA margin (%) 8.1% 7.8% 9.9% EBIT 11.9 12.5 20.2 Exceptional / non recurring items and share of profits of JV & associate (1.6) 14.9 6.6 Finance costs (7.6) (3.9) (5.7) Income tax credit/(expense) 1.6 (2.9) (2.7) Profit for year 4.3 20.6 18.4 Adjusted EPS (Diluted) 4.09c 5.35c 6.98c
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Income Statement
Revenue €'m 2013 2014 2015 OnePlastics Group 99.2 122.5 145.2 IPL N/A N/A 86.6 ClearCircle Environmental 151.7 154.0 134.2 Total 250.9 276.5 366.0 EBITDA €'m 2013 (Restated) 2014 (Restated) 2015 OnePlastics Group 15.6 15.7 20.5 IPL N/A N/A 12.6 ClearCircle Environmental* 9.7 10.5 9.1 Other (4.9) (4.6) (6.1) Total 20.4 21.6 36.1
*Excludes the impact of discontinued operations in 2014 and 2013
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Divisional Analysis
€'m 2013 (Restated) 2014 (Restated) 2015 Goodwill & Intangibles 33.7 49.4 140.5 Tangible Assets 59.7 65.4 166.1 Financial and Other Assets 30.9 29.3 10.1 Non-Current Assets 124.3 144.1 316.7 Current Assets 95.2 115.4 126.2 Total Assets 219.5 259.5 442.9 Creditors: within 1yr (125.8) (57.7) (92.9) Creditors: more than 1yr (9.3) (67.6) (197.4) Total Equity 84.4 134.2 152.6 Net Debt 40.3 7.4 120.3 Net Debt/EBITDA 2.0x 0.3x 3.3x
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Balance Sheet
€'m 2013 2014 2015 Net cash inflow from operating activities (before tax) 24.9 25.7 36.4 Maintenance capital expenditure (6.6) (9.1) (9.5) Finance costs paid (net) (5.7) (7.2) (5.8) Income tax paid (0.5) (1.0) (2.7) Free cash flow 12.1 8.4 18.4 Development capital expenditure (4.5) (1.2) (14.3) Free cash flow after development capital expenditure 7.6 7.2 4.1 Disposals 17.1 22.4 3.7 Share redemption proceeds from equity-accounted investee (net of costs) 23.6
- 51.2
Acquisitions
- (13.4)
(177.9) Equity issued
- 21.9
0.1 Net (debt)/cash acquired on purchase of subsidiary
- (3.7)
0.6 Other – including effect of movements in exchange rates 0.3 (1.5) 5.3 Movement in net debt in the year 48.6 32.9 (112.9)
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Cash Flow
Strategy & Outlook
Strategy
- Clear strategy based on the development and growth of core operating divisions
in Ireland, the UK, North America and China
- Grow both organically and through acquisition, subject to having appropriate
capital resources in place.
- IPL acquisition supports the strategic objectives of the Group which are
– to develop the core operating divisions – focus on higher margin opportunities with good competitive advantage – leverage maximum cross-sell and cost synergy opportunities
- Continue to strengthen Specialist Environmental Services business
- ffering and geographic reach in Ireland & UK
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Outlook
- Solid finish to 2015 and that momentum has carried into 2016
- IPL results consolidated for full year
- Continued positive free cash flow generation
- Approx. 80% of EBITDA from Plastics with broad geographic
and customer diversification
- Growth aspirations will be subject to appropriate levels of
leverage and adequate capital resources.
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