EVER BETTER, EVER STRONGER · certification and training Leading provider of product security...
Transcript of EVER BETTER, EVER STRONGER · certification and training Leading provider of product security...
2018 FULL YEAR RESULTS PRESENTATION5 March 2019
EVER BETTER, EVER STRONGER
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This presentation contains certain forward-looking statements with respect to the financial condition, results, operations and business of Intertek Group plc.
These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future.
There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts.
Nothing in this presentation should be construed as a profit forecast.
5 March 2019
2
AGENDA
Performance Highlights
2018 Financial Results
5x5 Strategy Update
2019 Outlook by Division
Conclusion
01
05
04
03
02
PERFORMANCE HIGHLIGHTS
01
185
235
318342 351
FY 14 FY 15 FY 16 FY 17 FY 18
7.7% EPS GROWTH… 1.6X REVENUE GROWTH
5
2,093 2,166
2,567 2,769 2,801
FY14 FY15 FY16 FY17 FY18
Revenue (£m)
324 343 410
468 482
FY 14 FY 15 FY 16 FY 17 FY 18
Adjusted Operating Profit (£m)
15.5% 15.9% 16.0%16.9%
FY 14 FY 15 FY 16 FY 17 FY 18
Adjusted Operating Margin
132.1 140.7167.7
191.6 198.3
FY 14 FY 15 FY 16 FY 17 FY 18
Adjusted EPS (p)
49.1 52.362.4
71.3
99.1
FY 14 FY 15 FY 16 FY 17 FY 18
Dividend (p)
+1.2%+4.7% CCR
+3.0%+6.9% CCR
+ 30bps+ 40bps CCR
+3.5%+7.7% CCR
+39%
17.2%
14-18 CAGR: 7.6% 14-18 CAGR: 10.4% 14-18: +170BPS
14-18 CAGR: 10.7% 14-18 CAGR: 19.2% 14-18 CAGR: 17.4% +2.6%
Free Cash Flow (£m)
CONTINUOUS ORGANIC REVENUE GROWTH ACCELERATION
6
FY18 organic growth by division
Note: (1) At 2018 constant currency rates
1.7%
2.5%
3.4%
4.0%
H1 17 H2 17 H1 18 H2 18
Organic growth at constant currency
Organic revenue growth1 (%)
Revenue growth1 (%)
(5%)
10%
77% of
earnings
(5%)
[]%
Products: +5.2%
Trade: +2.2%
Resources: 0.3%
17% of
earnings
6% 10%
Notes: (1) At 2018 constant currency rates; (2) Annualised
17.2% OPERATING PROFIT MARGIN… +40BPS YOY, +170 BPS SINCE 2014
+20bps+30bps
110bps
+40bps
FY 15 FY 16 FY 17 FY 18
Margin improvement1
7
Cost reduction activities
• Organic growth in Products and Trade
• Margin accretive acquisitions
• Strategic review of underperforming business units
• Consolidation of facilities
Headcount Savings2
2015 200 £4m
2016 550 £10m
2017 400 £7m
2018 400 £7m
Portfolio strategy
• Monthly performance reviews for Top 30 countries/16 Business Lines
• Business Line and country benchmarking
• Site span of performance management
• Cost discipline
Productivity management
£387m£442m
£543m £579m £581m
FY 14 FY 15 FY 16 FY17 FY18
Cash Generated from Operations
STRONG CASH PERFORMANCE
8
9.3% 8.8%7.1%
5.0%3.9%
FY 14 FY 15 FY 16 FY17 FY18
Working Capital as % of Revenue
1.6x
1.8x
1.5x
1.0x
1.4x
FY 14 FY 15 FY 16 FY17 FY18
Net Debt / EBITDA
£185m
£235m
£318m£342m £351m
FY 14 FY 15 FY 16 FY 17 FY 18
Free Cash Flow
37% 37% 37% 37%
FY14 FY 15 FY 16 FY17 FY18
Dividend Payout Ratio
£401m £429m£499m
£563m £571m
FY 14 FY 15 FY 16 FY 17 FY 18
Adjusted EBITDA
14-18 CAGR: 9.2% 14-18 CAGR: 10.7% 14-18 CAGR: 17.4%
14-18: (540BPS)
50%
Leading certification body in Denmark with an established
network and expertise in auditing, certification and training
Leading provider of product security certification solutions
Leading provider of on-road vehicle testing services
Market leader in the provision of environmental water testing
services in Mexico
Leading provider of cyber security network assurance services
Market leader in food assurance and inspection in Italy
FY16
FY17
FY15
Leading provider of materials testing and speciality construction
inspection in New York
Non-Destructive Testing services for the energy
industry across Australasia
Leading US provider of testing and assurance
services to commercial and civil construction markets
M&A IN ATTRACTIVE GROWTH AND MARGIN SECTORS
9
FY18
A leading network security and assurance services provider
A leading provider of quality and quantity cargo inspection services
A leading provider of SaaS-based People Assurance solutions
A leading provider of laboratory testing, inspection, metrology and
training services
10
2018 FINANCIAL RESULTS
02
KEY FINANCIALS
YoY %
FY 18ActualRates
Constant Rates
Revenue £2,801m 1.2% 4.7%
Organic revenue1 £2,770m 0.2% 3.7%
Operating profit2 £482m 3.0% 6.9%
Operating profit margin2 17.2% 30bps 40bps
Adjusted Diluted EPS2 198.3p 3.5% 7.7%
Free cash flow £351m 2.6%
11
Notes: (1) Organic revenue excludes the impact of acquisitions and disposals in 2017 and 2018; (2) Before separately disclosed items
OPERATING MARGIN BRIDGE
16.9%
17.2%
40bps0bps
10bps 10bps(20bps) (10bps)
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
FY 2
01
7
Pro
du
cts
Trad
e
Res
ou
rces
Div
isio
nal
mix
Excl
ud
ing
FX a
nd
Acq
uis
itio
ns
& D
isp
osa
ls
Acq
uis
itio
ns
& D
isp
osa
ls FX
FY 2
01
8
17.2%
12
+30bps organic at constant rates
Note: Organic excludes the impact of acquisitions and disposals in 2017 and 2018
£m @ actual exchange rates FY 17 FY 18
Adjusted operating profit1 467.7 481.8
Depreciation/amortisation 94.8 88.7
Change in working capital 19.7 13.1
Other2 16.7 21.3
Cash flow for cash conversion 598.9 604.9
Cash conversion % 128% 126%
Net capex (109.7) (109.7)
Other3 (147.6) (144.6)
Free cash flow 341.6 350.6
Acquisitions4 (27.4) (387.9)
Net debt 544.1 778.2
CASH FLOW & NET DEBT
13Notes:(1) Before Separately Disclosed Items; (2) Comprises Equity Settled transactions and other Non-Cash Items; (3) Comprises: Exceptionals, Interest Paid/Received and Tax; Special pension contributions (4) Total cash consideration in FY18 for 2018 acquisitions £393.5m, with cash acquired of £5.6m
• 3.0% at actual rates
• 126% cash conversion
• FCF 109% of adjusted Net Income
• Net debt / 1.4x EBITDA
FINANCIAL GUIDANCE
14
FY 2019 Guidance
Net finance cost £31 – 33m
Effective tax rate 24.5 – 25.5%
Minority interest £21 – 23m
Diluted shares (as at 31 December 2018) 162.8m
Capex £130 – 140m
Net Debt £670 – 700m
Note: Net debt guidance before any material change in FX rates, any additional M&A and impact of IFRS 16
15
5X5 STRATEGY UPDATE
03
5X5 DIFFERENTIATED STRATEGY FOR GROWTH
Differentiated Brand Proposition
Superior Customer Service
Effective Sales Strategy
Growth and Margin Accretive Portfolio
Operational Excellence
5 Strategic Priorities 5 Enablers
Living Our Customer Centric Culture
Disciplined Performance Management
Superior Technology
Energising Our People
Delivering Sustainable Results
5x5 Strategic Goals
Fully engaged employees working in a safe environment
1 2 3 4 5
Superior customer service in Assurance, Testing, Inspection and Certification
Margin accretive revenue growth based on GDP+ organic growth
Strong cash conversion from operations
Accretive, disciplined capital allocation policy
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THE 21ST CENTURY HAS CREATED A TRULY GLOBAL MARKET
Demand has become truly global, reflected in global supplyToday Global Trade represents 72% of Global GDP
26%
34%
24%
47%
78%
25%
69%
56%
26%
52%
58%
47%
38%
42%
41%
123%
61%
49%
45%
63%
64%62%
31%
75%
63%
87%
Trade as % of GDPSource: World Bank. Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product.
17
24%
39%
51%
72%
1960 1980 2000 2017
Global trade as a % of global GDP
CORPORATIONS ARE INCREASING THEIR FOCUS ON SYSTEMIC OPERATIONAL RISK
SUPPLY
TIER 3 TIER 2 TIER 1
PRODUCTION
3RD PARTY OWNED
DISTRIBUTION
TRANSPORTATION DISTRIBUTION CENTRES
RETAIL
IN-STORE ONLINE CONSUMER
Multi-channel routes to marketGlobal multi-tier sourcing Global manufacturing Multi-country distribution
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GROWING COMPLEXITY DRIVING DEMAND FOR END-TO-END SYSTEMIC QUALITY ASSURANCE
ATIC SOLUTIONS HELPING OUR CLIENTS MANAGE GREATER COMPLEXITY
SUPPLY
TIER 3 TIER 2 TIER 1
PRODUCTION
3RD PARTY OWNED
DISTRIBUTION
TRANSPORTATION DISTRIBUTION CENTRES
RETAIL
IN-STORE ONLINE CONSUMER
ASSURANCE PROVIDES AN END-TO-END ASSESSMENT OF QUALITY & SAFETY PROCESSES
T
I
C
A
T
I
C
TIC PROVIDES QUALITY & SAFETY CONTROLS IN HIGH RISK AREAS
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RESEARCH & DEVELOPMENT
RAW MATERIALS SOURCING
COMPONENT SUPPLIERS
MANUFACTURINGTRANSPORTATION
DISTRIBUTION & RETAIL
CHANNELS
CONSUMER MANAGEMENT
Assurance | Testing | Inspection | Certification
Our Customer Promise
Intertek Total Quality Assurance expertise delivered consistently with precision, pace and passion, enabling our customers to power ahead safely
TQA END-TO-END SYSTEMIC APPROACH TO QUALITY ASSURANCE
SUPERIOR CUSTOMER SERVICE WITH OUR TQA VALUE PROPOSITION
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Assurance ensures our customers identify and mitigate the intrinsic risk in their operations, supply chain and quality management systems
Assurance
Testing is evaluating how products and services meet and exceed quality, safety, sustainability and performance standards
Testing
Inspection
Inspection is validating the specifications, value and safety of raw materials, products and assets
Certification is certifying that products and services meet trusted standards
Certification
24% 17%
25% 23%
51%
60%
FY 15 FY18
8% 9%
30% 22%
52%53%
10%
16%
FY 15 FY18
£2,801m
£2,166m
GROUP CENTRE OF GRAVITY MOVING TOWARDS HIGH GROWTH AND HIGH MARGIN SECTORS
21
Divisional Revenue Split (£m) ATIC Revenue Split (£m)
£2,801m
£2,166m
ResourcesProducts Trade Assurance Testing Inspection Certification
8% 9%
30% 22%
52%
53%
10%
16%
FY 15 FY18
£2,801m
£2,166m
CONSISTENT PROGRESS ON REVENUE, MARGIN, CASH AND ROIC
+7.6% CAGR
22
DISCIPLINED PERFORMANCE MANAGEMENT
Marketing Leads Health and Safety
Employee Turnover
Site Capacity Utilisation
Customer Retention
Operational Excellence
Net Promoter Score
Sales Funnel
Backlog ManagementCustomer Acquisitions
Operational Metrics
Revenue Growth Pricing Power
Cash Conversion
Investments in Growth
Margin
Customer Profitability
Cost
Working Capital
Capital AllocationROCE
Financial Metrics
Performance Management Calendar
Weekly Monthly Quarterly Yearly 5 Year Plan
X-PERFORMANCE FACTOR DRIVING SUSTAINABLE VALUE CREATION1
Revenue Margin
+10.7% CAGR
EPS
+10.4% CAGR
Profit WC% Revenue
+17.4% CAGR
Free Cash Flow DPSCapex
InvestmentM&A
InvestmentROIC
+34% +49% +170bps +51% (540)bps +90% +102%
£3
24
m
£4
82
m
14 18
£2
,09
3m
£2
,80
1m
14 18
15
.5%
17
.2%
14 18
13
2p
19
8p
14 18
9.3
%
3.9
%
14 18
£1
85
m
£3
51
m
14 18
49
.1p
99
.1p
14 18
£4
44
m
15 - 18
£6
91
m
15 - 18
22
.7%
15 - 18
+19.2% CAGR
1.6x
2.3x
2.8x
2014-2018 2014-2018 2014-2018
OP growth X
Rev. growth2
FCF growth X
Rev. growth
TSR growth X
Rev. growth
Note: (1) Based on 2014-18 CAGR; (2) At 2018 constant currency rates
EVER BETTER…EVER STRONGER
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EVER BETTERGROWTH
EVER STRONGER PERFORMANCE
Service Offering /Innovations
Sales Management
Operational Excellence
Margin Management
Cash Management
THE PACE OF CHANGE IS ACCELERATING IN MULTIPLE DIRECTIONS
“The rise of cyber crime continues to accelerate: UK
business cyber crime rose 63% in 2017”
“87% of millennials would be more loyal to a company that
supports environmental issues”
“By 2050 there will be 2bn people aged over 60”
“Between 2009 and 2015 the number of internationally
recognised trademarks grew 50% to 24m”
“Sales of Electric Vehicles will increase 1,000% in the next 8
years”
“22% of American adults have sold in the Sharing Economy”
“IoT will change the way we live and work”
“Ecommerce, online food and traceability
are rewriting the retail rulebook”
“By 2050, 70% of the world’s population will live in cities”
“Growth in Emerging Markets to drive an increase in the world’s middle class to 5bn
people by 2030”
“The global blockchain market is expected to be worth US$20bn in 2024”
“Global solar power capacity to increase 590% by 2040”
“By 2025, the car market for partially autonomous vehicles is expected to be at US$36bn”
“AI forecasted to increase USA economic growth by
35% by 2035”
A MORE COMPLEX CORPORATE WORLD MEANS MORE GROWTH OPPORTUNITIES FOR INTERTEK24
1996 1999 2002 2005 2008 2011 2014 2017
Vehicle Recalls
Car Makes
EVER GROWING COMPLEXITY MEANS EVER GREATER LEVELS OF RISK FOR CORPORATIONS
25
Hacking is Driving Increases in Data BreachesGrowing Food and Drink Recalls
Growth of New Products Drive Quality RisksIncreasing Recalls of Medical Devices
421 471 614
783 780
1,091
1,579
2011 2012 2013 2014 2015 2016 2017
Hacking Breaches
Other Breaches
2006 2008 2010 2012 2014 2016 2018
Food and Drink Recalls
Sources: Food and Drink – USDA; Hacking - Identity Theft Resource Centre; Medical Devices – US FDA; Vehicles - National Highway Traffic Safety Administration
2013 2014 2015 2016 2017 2018
Medical Devices Recalls
BreakthroughTechnology that enable solutions to create new markets
26
INNOVATIVE SOLUTIONS TO ACCELERATE GROWTH
BREAKTHROUGH INNOVATIONTechnology that enable solutions to create new markets
INNOVATION IN ADJACENT SEGMENTSExpanding into fast growing and high margin adjacent segments
INNOVATION FROM THE COREStrengthening existing products and services
SUPPORTING OUR CUSTOMERS TO THRIVE IN AN INCREASINGLY COMPLEX WORLD
Develop new products and
services
Enter adjacent markets, serving adjacent customers
Strengthen existing
products and services
26
Serve existing markets and customers
ADJACENTINNOVATION
BREAKTHROUGH INNOVATION
CORE INNOVATION
INNOVATION FROM THE CORE TO STRENGTHEN EXISTING SERVICES
27
Strengthened our differentiated oil and gas testing offering by leveraging the heritage of our founder Caleb Brett
Intertek PipeAware 2 delivers technology enabled transparency into the pipeline manufacturing and construction process
Intertek’s innovative Mobile Laboratories gives ExxonMobil the flexibility required to test fuel quality across their fast growing
Mexico retail business
Voice of the Consumer leverages our customers’ consumer feedback through holistic product assurance plans, addressing
safety, quality and perception concerns
Intertek’s Cybersecurity Services are an integral part of our differentiated TQA service offering, addressing
growing cyber threats as part of a systemic risk mitigation approach
With our Working Conditions Assessments, we support our customers in their goal of providing a safe and ethical working environment for their employees
With our global network of Sustainability experts and ATIC solutions, Intertek is uniquely placed to help
customers achieve their existing and emerging sustainability goals
Hardlines and Softlines Chemical Testing, safeguarding consumers in an environment of rapidly developing
chemical regulations and advanced materials technologies
Intertek KJ Tech offers road testing, allowing auto manufacturers to understand how their vehicles
perform in real life situations
INNOVATION IN HIGH GROWTH AND HIGH MARGIN ADJACENT SEGMENTS
28
TECHNOLOGY BASED INNOVATION OFFERING BREAKTHROUGH SERVICES
29
Inlight is a SaaS platform delivering the bespoke mapping of risks across the supply chain
On Track enables restaurant brands to benchmark operational performance and efficiently train staff through interactive simulations and gamification
Alchemy offers SaaS solutions delivering training to ensure employee consistency and compliance in the
fast growing food industry
Interpret uses near infrared spectrum analysis to predict the physical properties of crude oil, reducing
the time taken from weeks to minutes
Wisetail is a leading e-learning platform that helps restaurants and retailers create a brand specific
operating culture
2019 OUTLOOK BY DIVISION
04
31
GROUP OUTLOOK 2019
Note: Net debt guidance before any material change in FX rates, any additional M&A and impact of IFRS 16
• Good organic revenue growth at constant currency
− Good growth expected in Products
− Good growth expected in Trade
− Solid growth expected in Resources
• Moderate Group margin progression
− Portfolio strategy
− Continuous cost discipline
− Performance management
• Strong cash conversion
• Capex: £130-140m
• Net debt: £670-700m
EXCELLENT PERFORMANCE IN PRODUCTS WITH 9.5% PROFIT GROWTH
32
1,626 1,680
FY 17 FY 18
Revenue (£m)
1,621 1,654
FY 17 FY 18
Organic Revenue (£m)
351 371
FY 17 FY 18
Operating Profit (£m)
21.6% 22.1%
FY 17 FY 18
Operating Margin (%)
+3.4%+6.6% CCR
+2.1%+5.2% CCR
+5.8%+9.5% CCR
+50bps+60bps CCR
Softlines
Hardlines
Electrical & Connected World
Growth Drivers
Increased number of Brands & SKUs
Supply chain expansion in new
markets
Increased demand in chemical testing
Innovation from our customers leveraging wireless technology
Increased demand for chemical testing
Innovative inspection technology
Electrical appliance innovations to provide better efficiency and
connectivity
Increased demand for IoT Assurance services, including cyber
security
FY18 Actual
Solid organic growth
Good organic growth
Robust organic growth
Solid organic growth
Good organic growth
Robust organic growth
FY19 Outlook
Business Assurance
Building & Construction
Transportation Technology
Food
Chemicals and Pharma
33
Increased scrutiny on emissions
Increased concerns on product safety and
traceability
Growth DriversFY18 Actual
ISO standards upgrades
Increased focus of corporations on supply
chain and risk management
Increased consumer and government focus on ethical
and sustainable supply
Strong organic growth
Growing demand for greener, safer and higher quality commercial buildings
Increased investment in large infrastructure projects
Robust organic growth
Continued investment of our clients in new models and new
fuel efficient engines
Growth in the hybrid / electric engine
segment
Double-digit organic growth
Continuous food innovation
Increased focus on the safety of supply chains
Growth in the food service assurance
business
Robust organic growth
Robust organic growth
Growth of SKUs
Expansion of the supply base in emerging markets
FY19 Outlook
Robust organic growth
Good organic growth
Robust organic growth
Robust organic growth
Solid organic growth
EXCELLENT PERFORMANCE IN PRODUCTS WITH 9.5% PROFIT GROWTH
Caleb Brett
Government & Trade Services
AgriWorld
648 642
FY 17 FY 18
Revenue (£m)
648 637
FY 17 FY 18
Organic Revenue (£m)
89 83
FY 17 FY 18
Operating Profit (£m)
13.7%13.0%
FY 17 FY 18
Operating Margin (%)
(0.9)%+3.1% CCR
(1.7)%+2.2% CCR
(6.0)%(1.3)% CCR
(70)bps(60)bps CCR
SOLID MOMENTUM IN TRADE WITH 2.2% ORGANIC GROWTH
34
Growth DriversFY18 Actual
Robust organic growth
Global and regional trade structural growth drivers
Increased transport infrastructure
Award of new contracts
GDP growth Population growth
The expansion of our clients’ supply chains in fast growing markets
New customer wins
Solid organic growth
Below last year
Good organic growth
Robust organic growth
Solid organic growth
FY19 Outlook
496 479
FY 17 FY 18
Revenue (£m)
496 479
FY 17 FY 18
Organic Revenue (£m)
29 27
FY 17 FY 18
Operating Profit (£m)
5.7% 5.7%
FY 17 FY 18
Operating Margin (%)
(3.4)%+0.3% CCR
(3.4)%+0.3% CCR
(3.9)%(0.4)% CCR
0bps(10)bps CCR
IMPROVED TRADING CONDITIONS IN RESOURCES WITH STABLE REVENUE AND MARGIN
35
Minerals
Capex Inspection
Opex Inspection
Solid organic growth
Stable Revenue
Good organic growth
Minerals demandTechnological
innovation
Demand for energy Asset productivityTechnological
innovation
Capacity utilisation Asset productivityAgeing of equipment
Outsourcing
Growth DriversFY18 Actual
Slight decline
Stable revenue
Robust organic growth
FY19 Outlook
CONCLUSION
05
INTERTEK HIGH QUALITY EARNINGS MODEL
37
Ou
r Se
rvic
es Testing Inspection CertificationAssurance
ResourcesTradeProducts
Ou
r Se
cto
rsO
ur
Mid
-to
Lo
ng-
Term
V
alu
e C
reat
ion
GDP+ GDP growth Long-term growth
GDP+ Organic revenue growth
Margin accretive revenue growth
Strong free cash flow
Disciplinedcapital allocation
Investments in attractive growth and margin sectors
with Capex / M&A
Intertek Virtuous Economics
ATTRACTIVE STRUCTURAL GROWTH DRIVERS
38
6% of Group profit based on global growth drivers in the energy sector
Long-term growth
Resources
17% of Revenue 6% of Profit
Long term demand for energy
Investment in infrastructure
Supply chain risk management
Sustainability of energy supply
Growth in alternative energy
Focus on health & safety
77% of Group profit based on GDP agnostic growth drivers
Products
60% of Revenue 77% of Profit
Increased number of Brands & SKUs
Faster innovation cycle
Increased regulation
Increased corporation focus
on risk management
Increased consumer focus on
sustainable products
Improvements in safety,
performance and quality
GDP+
17% of Group profit based on global trade growth
23% of Revenue 17% of Profit
Trade
Population growth GDP growth
Development of regional trade
Increased focus on traceability
Growth in transport
infrastructure
Growth in port infrastructure
GDP growth
Growth outlook: GDP+ Organic revenue growth in real terms
Insert Footer Here 39
INTERTEK IS GOING FROM STRENGTH TO STRENGTH
39
• Industry leader in a growing global $250bn ATIC market
• Scale positions in attractive end-markets in 100+ countries
• Unique Total Quality Assurance value proposition offering superior customer service
• High quality compounder earnings model
• Ever growing corporate complexity is a growth accelerator
• Ever Better operational discipline making Intertek Ever Stronger
24% 20% 18% 17%
25% 23% 23% 23%
51%57%
59% 60%
FY 15 FY 16 FY 17 FY 18
GROUP PERFORMANCE (2015 – 2018)
41
Margin
FY 15 FY 16 FY 17 FY 18
Products 21.1% 20.3% 21.6% 22.1%
Trade 14.1% 14.0% 13.7% 13.0%
Resources 6.5% 5.8% 5.7% 5.7%
Group 15.9% 16.0% 16.9% 17.2%
Key Metrics 2018
% Group Revenue % Group ProfitOrganic Revenue
Growth1
60% 77% 5.2%
23% 17% 2.2%
17% 6% 0.3%
100% 100% 3.7%
15.9%16.0%
16.9%
FY 15 FY 16 FY 17 FY 18
10% 7% 6% 6%
22% 20% 19% 17%
68%73%
75% 77%
FY 15 FY 16 FY 17 FY 18
£343m
£410m
£468m
£2,166m
£2,567m £2,769m
Adjusted Margin (%)
Note: (1) At 2018 constant currency rates
Revenue (£m) Adjusted Operating Profit (£m)
£2,801m £482m 17.2%
ADJUSTED EPS
42
£m @ actual exchange rates FY 17 FY 18
Adjusted operating profit1 467.7 481.8 +3.0%
Net interest expense (28.9) (25.3)
Profit before tax 438.8 456.5
Tax 24.7% (24.5%) (107.5) (112.8)
Profit after tax 331.3 343.7
Non-controlling interest (19.0) (20.8)
Net profit 312.3 322.9
Fully diluted shares (m) 163.0 162.8
Earnings per share (GBP) 191.6 198.3 +3.5%
Dividend (GBP) 71.3 99.1 +39.0%