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PRO-PAC PACKAGING LIMITED — Investor Presentation 2011
Nov 3, 2011
65602_rns_2011-11-03_6d81132d-4b87-4dd3-ad4b-3d5de8829c53.pdf
Investor Presentation
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Pro-Pac Packaging Ltd
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October 2011 Pro-Pac Investor Presentation
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Agenda
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Agenda
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Pro-Pac Company Overview Risk Profile Growth Opportunities Historical Financial Performance First Quarter Results Bennamon Contribution Current Shareholding Annexure A – About Pro-Pac
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Pro-Pac Company Overview
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Pro-Pac Company Overview
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Highly diversified packaging and related products Unique business model of broad business silos with in-depth expertise Strong value proposition with end-to-end supply Well positioned national distribution presence Very competitive with well-established procurement
International
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- In house local manufacture
10,000+ diverse customers 300+ staff with over 70 in sales
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Risk Profile
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Risk Profile
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Low risk business model with extremely high growth potential Recurring revenue streams Essential products Diverse “blue chip” customer base Service most industry segments Critical mass and infrastructure attained
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Strong balance sheet Strong cash flow generating businesses Conservatively geared
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Growth Opportunities
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Growth Opportunities
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Highly fragmented market Large horizontal breadth of product areas to pursue Difficult economy equates to increased realistic sellers Strong pipeline of potential acquisitions
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Anticipate completion of 4 smaller acquisitions by December 2011
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4 Prospects > $50M
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5 Prospects between $10M - $50M
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11 Prospects < $10M
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Historical Financial Performance
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Sales Growth
Total Sales EBITDA Normalised
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140 14,000
120 12,000
100 10,000
80 8,000
60 6,000
40 4,000
20 2,000
0 0
Jan-09 Jan-10 Jan-11 Jan-12 2007 2008 2009 2010 2011 2012
Forecast Forecast
Group
$ M
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Historical Financial Performance
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Financial Performance
| Industrial Rigid Total Sales |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
Non-Executive Growth Mode Turn- around Jun 07 Jun-08 Jun- 09 Jun-10 Jun-11 Jun-12 $ m $ m $ m $ m $ m $ m Start up date YTD YTD YTD YTD YTD Forecast 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 1989 70 72 74 91 114 125 |
FY 08 v 07 FY 09 v 08 FY 10 v 09 FY 11 v 10 FY 12 v 11 |
FY 08 v 07 FY 09 v 08 FY 10 v 09 FY 11 v 10 FY 12 v 11 |
FY 08 v 07 FY 09 v 08 FY 10 v 09 FY 11 v 10 FY 12 v 11 |
FY 08 v 07 FY 09 v 08 FY 10 v 09 FY 11 v 10 FY 12 v 11 |
FY 08 v 07 FY 09 v 08 FY 10 v 09 FY 11 v 10 FY 12 v 11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % % % % % |
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| 1987 | 26.0 44.0 |
27.0 44.5 |
30.5 43.5 |
46.5 44.5 |
65.5 48.0 |
4% 1% |
52% 23% |
52% 23% |
41% 25% |
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| 1989 | |||||||||||||
| 70 | 72 | 74 | 91 | 114 | 125 | 3% | 3% | 23% | 25% | 10% | |||
| Non-Executive | Turn- around |
Growth Mode |
Note: FY 2012 Forecast does not include acquisitions.
| Industrial Division Growth 3 Years to June 11 | |
|---|---|
| Organic Growth Acquisitions Total Growth 48% 95% 143% |
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First Quarter Results
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FY Q1 2012 vs. FY Q1 2011
| PRO-PAC GROUP TOTAL SALES PROFIT BEFORE TAX PROFIT BEFORE TAX % EBITDA EBITDA % |
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|---|---|---|---|
| PPG | |||
| ACTUAL | LAST YR | % CHANGE | |
| 31,425,604 | 28,595,731 | 9% | |
| 2,521,113 | 1,921,792 | 24% | |
| 8.02% | 6.72% | ||
| 3,530,618 | 2,801,260 | 21% | |
| 11.23% | 9.80% |
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Indicative FY2012 Guidance
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Accelerate Growth
| Acquisitive | • | Continue roll up synergistic & strategic companies | |||
| • | Seek company transforming acquisitions | ||||
| Cross-Selling | • | Cross selling products in expanding customer base | |||
| • | Increase wallet share of existing customers | ||||
| Organic | • | Continue aggressive sales | |||
| • | Innovation and new products to market | ||||
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Bennamon Contribution
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Bennamon Contribution
Bennamon fully supports PPG to become the largest packaging distributor in ANZ Provides PPG with:
Access to a significantly larger customer base to cross sell into
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Access to overseas expansion
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Product sourcing and innovation opportunities via extensive global contacts and
relationships
Enhanced trading opportunities with Bennamon / Geminder Holdings various related investments
Improved supply chain efficiencies through Bennamon experience
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Current Shareholding
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Current Shareholding
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Currently tightly held share register
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Bennamon 48% Brandon Penn 18%
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Several ex-acquired business owners employed by Pro-Pac on share register Key staff participating in ESPP scheme
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Annexure A – About Pro-Pac
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About Pro-Pac - Industrial Packaging Division
Manufacturer and distributor of:
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Biodegradable voidfill Packaging tools & machinery Cartons Stretch & shrink film Packaging & specialty tapes Strapping – Steel, Poly & PET Labels Poly bags Bubble, paper & air pillow Janitorial products Disposable hygiene products
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Annexure A – About Pro-Pac
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About Pro-Pac - Rigid Packaging Division Manufacturer and distributor of rigid containers & all types of caps & closures.
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Bottles Measures Caps Pails Cubes Sprays & Pumps Drums Jars Jerry Cans Triggers
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Annexure A – About Pro-Pac
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About Pro-Pac - Customer Base
[Strong and diverse customer base servicing most industry segments such as: ]
Automotive Oil Industrial Pharmaceuticals Manufacturing Food Fast food chains
Entertainment Cosmetics Beverage Retail Transport FMCG Agrichem
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Disclaimer
directly or exclusively relate to historical facts. These forward-looking statements reflect Pro-Pac Packaging Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Pro-Pac Packaging Limited’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include know and unknown risks. Because actual results could differ materially from Pro-Pac Packaging Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with caution. This management presentation may not be copied or otherwise reproduced.
Pro-Pac Packaging Limited 148 Newton Road Wetherill Park NSW 2164 T: (02) 8781 0500 F: (02) 8781 0599 www.ppgaust.com.au
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