Preliminary Results FY2009

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Preliminary Results FY2009 30 June 2009
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AGENDA

• Highlights Key Issues
• Operating Performance
• Full Financial Performance
• Outlook Strategy

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FINANCIAL RESULTS HIGHLIGHTS
Excluding as appropriate or relevant,
amortisation, exceptionals, negative goodwill
credit, unrealised foreign exchange costs
derivative gains/losses
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FACTORS AFFECTING FINANCIAL PERFORMANCE IN FY2009

• EXTERNAL FACTORS
• Global recession and decline of international
  trade volume impact
• Raw material price volatility
• Currency volatility and sterling depreciation
• INTERNAL FACTORS
• Full year impact of acquisitions made in FY2009
• Sale of Mulberry completed March 2009
• Major cost reduction programmes
• Investment and start up of Thailand factory

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SALES VOLUME INDEX FY2009
Note Indexed vs. Q1 FY08/09 ( 100)
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RAW MATERIAL PRICE INDEX FY2009
Price Index
Note Indexed vs. April 2009 ( 100) weighted
average of raw materials
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FOREIGN EXCHANGE RATES INDEX FY2009
FY2009 end
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OPERATING PERFORMANCE FY2009

• The following slides look at operating
  performance measured from different perspectives
• Actual FY2009 compared to FY2008 no
  adjustments
• Proforma FY2009 compared to FY2008 results
  adjusted for any acquisitions in the year
• Assumes that acquisitions occurred at the start
  of the year
• Shows just underlying organic growth
• Constant FX FY2009 compared to FY2009 restated
  for FX changes during year
• Shows impact of FX movements on performance

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OPERATING PERFORMANCE - ACTUAL

• Strong growth has been achieved vs same period
  last year due to acquisitions completed in FY2008

• Notes
• Gross Profit, EBITDA and EBITA excludes
  exceptionals

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OPERATING PERFORMANCE PROFORMA BY DIVISION

• Organic growth has been held back by tough
  economic conditions
• Nevertheless 18 EBITDA/Sales margin achieved

• Notes
• Gross Profit, EBITDA and EBITA exclude
  exceptionals
• GP is accounting definition (i.e. direct labour
  included)

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OPERATING PERFORMANCE PROFORMA BY REGION

• Demand from US and Europe has been weak

• Notes
• Gross Profit, EBITDA and EBITA exclude
  exceptionals
• GP is accounting definition (i.e. direct labour
  included)

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OPERATING PERFORMANCE - CONSTANT FX

• Sterlings depreciation during the year has
  assisted operating performance

• Notes
• Gross Profit, EBITDA and EBITA exclude
  exceptionals

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CHANGES IN HEADCOUNT AND COSTS

• Headcount Reductions
• Headcount reductions on a like-for-like basis
  of c.15

• Cost reductions annualised effect 2.1m
• Annual impact of headcount savings made in
  FY2009 - 1.4m
• Other COGS savings in FY2009 - 0.3m
• Annual impact of further headcount reductions
  already made in FY2010 - 0.4m

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OPERATING PERFORMANCE DIVISIONAL HIGHLIGHTS

• Rotating Parts (BNL)
• Affected by capital goods decline and destocking
  of global supply chains
• Thailand investment completed on time and within
  budget
• 25 of production moved to Thailand
• 1.6m of new projects won during course of year
• New project pipeline still good despite wider
  economic conditions
• Print/Packaging Consumables (CT)
• Impacted by destocking at distributors
• Benefits from integration of Trimplex with
  Channel not yet realised
• Unforeseen delays in certain engineering
  projects
• Small competitors now under pressure leading to
  opportunities to gain market share
• Specialist Film Packaging (Palagan)
• New operational management structure implemented
  new MD, Operations Director
• Successful navigation of extreme raw material
  price inflation and deflation
• Increased penetration of new branded film
  Nylastrong

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OPERATING PERFORMANCE SUMMARY

• Summary
• Global recession has led to volume declines and
  lower operational profitability (EBITDA) than
  FY2008
• Acquisition in FY2008, favourable exchange rate
  movements and some price inflation have reduced
  the effect of lower volumes
• All divisions affected, particularly if exposed
  to
• International trade, and
• Capital goods
• However
• Operating margins remain good
• Trading remains profitable in all divisions
• Labour and overheads significantly reduced
  benefit to be fully reflected during FY2010
• Trading conditions are stabilising
• New business activity remains a priority, with
  benefit as conditions improve

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FINANCIAL PERFORMANCE FY2009

• Our statutory accounts include adjustments for
  non-trading items to show underlying performance

• Notes
• EBITA excludes exceptionals

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EXCEPTIONAL COSTS

• Exceptional costs consist of

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CASH FLOW

• Cash flow has remained strong

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NET DEBT

• Net debt increased due to translation losses on
  foreign currency loans

• The Group also has a bank overdraft facility of
  2m which can be draw upon

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KEY RATIOS

• Other key ratios

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OUTLOOK

• Economic climate remains difficult
• Demand levels continue to be weak
• Demand has stabilised at current levels
• However
• Sterling remains weak improving our
  competitiveness
• US hedged at 1.55/
• New business wins across all subsidiaries
• Significant potential to gain market share
• Significantly lower cost base in FY2010
• Personnel reductions already implemented
• Further cost opportunities during FY2010
• Increased use of Thailand facility
• CT engineering projects
• Some further personnel reductions

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STRATEGY

• Current focus is cash generation to deleverage
• Significant opportunity to reduce debt during
  FY2010
• Acquisitions
• Valuation expectations generally too high to
  justify
• Opportunities to rationalise weak competitors
  starting to materialise

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