[PPT] - McBride plc 2006-07 Interim Results Presentation February 2007 PowerPoint Presentation

SLIDE 1

McBride plc 2006-07 Interim Results Presentation

February 2007

BEHI ND THE LABEL

Overall best private label supplier in UK - Grocer Magazine “Senior buyers judged McBride the best, thanks to its excellent account management skills, reliability of deliveries, consistency of product quality, new product development and value for money”

SLIDE 2

2 2006-07 Half Year Results Presentation

Summary 2006-07 Half 1

» Results in line with expectations » Revenue and profit growth in both household and personal care » Operating margin improved to 5.9% » EPS up 9% » Major Italian Household cleaners acquisition » Small infill acquisition in Poland » Successful integration of recent UK acquisitions » Continuing focus on innovation, operational efficiency and management to support margin improvement

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3 2006-07 Half Year Results Presentation

Business unit progress

» Western Continental Europe

Revenue growth in Italy, Spain and personal care
French household market weak but not declining
Continuing focus on innovation, service and costs

» Eastern Continental Europe

Revenue growth
In fill acquisition of Schneider household and personal care business

(post year end)

Further strengthening of management and new capacity

» UK

UK sales up 9%
Strong performance in household and personal care
Successful integration of recent acquisitions

SLIDE 4

Bob Beveridge

Finance Director

SLIDE 5

5 2006-07 Half Year Results Presentation

Profit and loss account (1)

P/ P

£m Margin

£m Margin Revenue

270.4

278.2 + 3% Cost of sales

(178.3)

(185.0) + 4% Gross profit

92.1 34.1%

93.2 33.5% + 1% Distribution costs

(17.7)

(18.9) + 7% Contribution

74.4 27.5%

74.3 26.7%

0%

Administrative costs

(59.0)

(58.0)

2%

Operating profit

15.4 5.7%

16.3 5.9% + 6%

Period ended Dec 05

Period ended Dec 06

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6 2006-07 Half Year Results Presentation

Profit and loss account (2)

P/ P

£m Margin

£m Margin Operating profit

15.4 5.7%

16.3 5.9% + 6% I nterest

(0.5)

(0.7) + 40% Profit before tax

14.9 15.6

+ 5% Taxation

(4.5)

(4.4)

2%

Profit for the year

10.4

11.2 + 8% EPS

5.8p

6.3p + 9% EPS (Diluted)

5.7p

6.1p + 7% Dividend

1.6p

1.7p + 6%

Period ended Dec 05

Period ended Dec 06

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7 2006-07 Half Year Results Presentation

Regional performance

p/e Dec 05

p/ e Dec 06 P/ P

p/e Dec 05

p/ e Dec 06 P/ P

£m

£m UK

123.5

134.6 + 9%

10.5

12.3 + 17% Western Continental Europe

141.5

138.3

2%

4.6

3.9

15%

Eastern Continental Europe

11.4

11.8 + 4%

1.1

0.8

27%

Total

276.4

284.7 + 3%

16.2

17.0 + 5% I ntergroup/ corporate

(6.0)

(6.5) + 8%

(0.8)

(0.7)

13%

Total

270.4

278.2 + 3%

15.4

16.3 + 6% (1) Revenue and operating profit by geographic origin Revenue(1) Operating profit(1)

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8 2006-07 Half Year Results Presentation

Product category performance

p/e Dec 2005

p/ e Dec 2006 P/ P

p/e Dec 2005

p/ e Dec 2006 P/ P

£m

£m Household

216.5

221.3 + 2%

11.5

12.1 + 5% Personal care

53.9

56.9 + 6%

4.7

4.9 + 4% Total

270.4

278.2 + 3%

16.2

17.0 + 5% Corporate

(0.8)

(0.7)

13%

Total

270.4

278.2 + 3%

15.4

16.3 + 6% Revenue Operating profit

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9 2006-07 Half Year Results Presentation

Movement in net debt June - Dec 2006

0.0 10.0 20.0 30.0 £m

H1 06/07

perating

cash flow Working Capital Acquisitions Other Dividends Tax/ Iinterest Capital Expenditure (net)

24.6 2.7 7.9 6.2 2.2 2.3 0.7 4.0

Movement in Net Debt

SLIDE 10

10 2006-07 Half Year Results Presentation

Balance sheet

Dec-05

Dec-06

£m

£m Non-current assets

137.1

146.4 I nventories

46.1

48.9 Debtors

100.6

104.8 Creditors

(144.7)

(148.5) Net working capital

2.0

5.2 Employee benefits

(16.9)

(14.4) Deferred tax and non-current provisions

(1.3)

(3.2) Net debt

(22.5)

(25.1) Net assets

98.4 108.9

ROACE

25%

24%

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11 2006-07 Half Year Results Presentation

Focus on cost management

» Overhead reductions in UK and WCE » Purchasing strategies to alleviate some input price pressures

Buy long

» Value engineering benefits achieved in WCE » Labour efficiency improvements in WCE » China sourcing project delivery

SLIDE 12

Miles Roberts

Chief Executive

SLIDE 13

13 2006-07 Half Year Results Presentation

Strategy for growth

» Preferred supplier to major European retailers of private label household and personal care products » Customer partnership

Product innovation - machine dishwashing, textile, cleaners

personal care and discount

Category development - marketing of private label
Local customer service
Regional development - Italy, ECE, Germany

» Operational scale and efficiency » Colleagues and culture

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14 2006-07 Half Year Results Presentation

Acquisition of Dasty Italia SpA - background

» Modern highly automated facilities » Strong position with key Italian discount retailers » Highly complementary customers and products » Italy becomes clear third largest geographic market for McBride » Good scope for cost synergies » Creates clear leader in Italian private label household products » Enterprise value of €29m(1) » €40.4m revenue in year to 31 December 2005 » €3.9m EBIT in same period » Expected to be earnings enhancing in first full year (2)

(1) Subject to closing working capital adjustment (2) Before amortisation of acquired intangible assets

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15 2006-07 Half Year Results Presentation

Complementary customers

McBride Italy Dasty

Private Label 83% McBride 7% Discount 10% Discount 53% Other 17% Contract Manufacture13% Private Label 17%

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16 2006-07 Half Year Results Presentation

Private Labels now account for 1 in 5 purchases of Household products in Italy

0% 5% 10% 15% 20% 25% 30% 35%

W a s h i n g U p L i q u i d D i s h w a s h i n g A l l P u r p

s

e C l e a n e r S c

u

r i n g B a t h r

m

C l e a n e r K i t c h e n C l e a n e r T

i

l e t C a r e W i n d

w

C l e a n e r F u r n i t u r e C l e a n e r D r a i n C l e a n e r A i r F r e s h e n e r F a b c

n

A n t i c a l c A d d i t i v e s W a s h i n g P

w

d e r W a s h i n g L i q u i d T O T A L I T A L Y

% Volume Share 2005 2006

Source: IRI ( 52 weeks ending December 2006)

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17 2006-07 Half Year Results Presentation

In France: household products market declined 5% in 2005, Private Label sales in 2006 up 0.9% in an overall flat market

Source: IRI / TNS data

3250 3300 3350 3400 3450 3500 3550 3600

2004 2005 2006 €'000 Total Household

600 610 620 630 640 650 660 670 680 690 700

2004 2005 2006 €'000 Private Label

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18 2006-07 Half Year Results Presentation

France performance

» Sales in Household declined; grew where focused » Performance good in parts » Completed price increases during H1, benefit H2 » Increase Category Development and NPD

Premium sectors
Personal care
Ecological trends
Focus on certain retailers

» Continued focus on reducing cost base

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19 2006-07 Half Year Results Presentation

Private label continues to grow share across Europe

20.9 21.2 30.2

32.0

32.6 33.7 34.8

37.2

43.8 43.4 44.4

46.9

15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

(%)

Italy Belgium France Germany Netherlands Spain

Private label volume share of European household products markets

2005 2006

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20 2006-07 Half Year Results Presentation

McBride UK Household sales up 10%, the overall market grew 3.5% with private label up 5.7%

Source: TNSofres

5%

0% 5% 10% 15% 20% L a u n d r y F a b r i c C

n

d i t i

n

e r s W a s h i n g U p L i q u i d M a c h i n e d i s h w a s h C l e a n e r s T

i

l e t c a r e A i r c a r e T

t

a l P L

Year on Year value growt

Market Private Label

Launch of Fairy Active Burst and other Brand promotions Launch of premium Private Label air care ranges

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21 2006-07 Half Year Results Presentation 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% France Germany Italy Netherlands Spain 2003 2004 2005

McBride personal care sales up 5.8% to £56.9m. European private label future growth potential

Private Label Toiletries value share growth in core European markets

Source: Euromonitor, Sectors inc Baby, Bath additives, Deodorants, hair care excl Colours, Men’s toiletries and Oral care

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22 2006-07 Half Year Results Presentation

The Discount format is continuing to develop across Europe

Country Discounter share Trend Main Players UK 5% Aldi, Lidl, Netto Belgium 14% Aldi, Lidl, France 13% Aldi, Lidl, Leaderprice, ED Germany 37% Aldi, Lidl, Penny, Plus, Norma Italy 7% Lidl, Eurospin. Penny, LD Holland 15% Aldi, Lidl Spain 10% Mercadona, Lidl, Aldi, Dia Poland 15% Biedronka, Lidl, Leaderprice, Plus , Aldi Czech 20% Lidl, Penny , Plus, Norma Hungary 10% Lidl, Penny , Plus Denmark N/A Netto, Aldi, Lidl Sweden 4% Lidl, Netto Finland 2% Lidl

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23 2006-07 Half Year Results Presentation

Strategy for growth

» Operational scale and efficiency

» Focus, investment, China » Colleagues and culture » Competitive advantage through quality of people, attitudes and behaviours - genuine teamwork

SLIDE 24

24 2006-07 Half Year Results Presentation

Summary

» Results and current trading in line with expectations » Good performance in UK, Italy, Spain and Personal care » Focus on customer partnership, operational scale and efficiency, colleagues and culture » Acquisitions will add scale in relevant markets » Continuing to review growth opportunities