2017 ANNUAL GENERAL MEETING April 2017
INCOME STATEMENT GROWTH CONSTANT £m 2016 2015 REPORTED EXCHANGE Revenue 7,429.1 6,489.7 14% 4% Adjusted operating profit* 525.0 455.0 15% 5% Operating margin* 7.1% 7.0% Net finance expense (46.8) (43.8) Adjusted profit before tax* 478.2 411.2 16% 6% 106.1p 91.0p 17% 6% Adjusted earnings per share* Dividend per share 42.0p 38.0p 11% * Before adjusting items (customer relationships amortisation and acquisition related costs) and associated tax, where relevant – see Appendix 2 and Appendix 3 2017 AGM APRIL 2017 2
DIVIDEND PER SHARE (p) 42.0 24 years CAGR of c consec ecutiv ive e > 10% dividen end i increa eases es 4.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 AGM APRIL 2017 3
CASH CONVERSION 110 110% Ave verage c cash sh 103 103% 102 102% 102 102% 99% 99% conver ersion on* 97% 97% 95% 95% 95% 95% 93% 93% 93% 93% 93% 93% 92% 92% 92% 92% TARGET 97% 90% 04 05 06 07 08 09 10 11 12 13 14 15 16 * Operating cash flow before acquisition related costs to adjusted operating profit – see Appendix 2 and Appendix 4 04 – 05 continuing operations only 2017 AGM APRIL 2017 4
USES OF FREE CASH FLOW 2004 - 2016 Consisten ently s ly stron ong fre ree c cash flow 6 % † DIVIDENDS DIVIDEND PER SHARE CAGR >10% supports long t term growth STABLE DIVIDEND COVER c. 2.5x † £1.0bn 14 % † 136 * ACQUISITIONS SINCE 2004 ACQUISITIONS £2.4bn SELF FUNDED * Includes two committed acquisitions in 2016 which completed in January 2017 † Based on adjusted earnings per share 2017 AGM APRIL 2017 5
FINANCIAL SUMMARY REVENUE ADJUSTED OPERATING OPERATING PROFIT PROFIT* MARGIN* 10 bp † 4 % † 5 % † FREE CASH CASH ROACE CONVERSION** FLOW 55.9 % 15 % 99 % 40bp ADJUSTED DIVIDEND EPS* PER SHARE 11 % 6 % † 17% actual exchange rates 24 years of growth † At constant exchange rates * Before adjusting items (customer relationships amortisation and acquisition related costs) and the associated taxation where relevant see – Appendix 2 and Appendix 3 ** Operating cash flow before acquisition related costs to adjusted operating profit – see Appendix 2 and Appendix 4 2017 AGM APRIL 2017 6
REVENUE BY CUSTOMER MARKETS 75% resilie esilient Other Foodser ervic ice Healthcare Grocery 4% Cleanin ing & & hygien iene 7% Foodservice 30% Healthcare 10% Retail 11% 12% 26% Safety Grocery Cleaning & Hygiene 2017 AGM APRIL 2017 7
BUSINESS AREA ANALYSIS Well d l diver ersified ied by g geography and s sector CONTINENTAL EUROPE NORTH AMERICA 18% Revenue 59% Revenue 23% Operating profit* 53% Operating profit* UK & IRELAND REST OF WORLD 15% Revenue 8% Revenue 15% Operating profit* 9% Operating profit* * Adjusted operating profit - before adjusting items (customer relationships amortisation and acquisition related costs) and corporate costs 2017 AGM APRIL 2017 8
CONSISTENT AND PROVEN COMPOUNDING STRATEGY High R ROIC PROFITABLE Use competitive ORGANIC despit ite e advantage to GROWTH grow market signifi ficant share in a profitable way acquis isition ion spe pend ROIC Daily focus OPERATING MODEL on making IMPROVEMENTS our business more efficient 16.7% ACQUISITION Use strong balance sheet GROWTH and excellent cash flow to consolidate our markets further 2017 AGM APRIL 2017 9
ORGANIC GROWTH SELL MORE TO EXISTING CUSTOMERS EXPAND PRODUCT RANGE WIN NEW CUSTOMERS VOLUME MARKET LEADING CUSTOMERS GROWING SECTORS TREND TO OUTSOURCING OWN BRAND / IMPORTS MIX MANUFACTURER BRANDS GEOGRAPHIES AND SECTORS INFLATION / DEFLATION PRICE MARKET DYNAMICS 2017 AGM APRIL 2017 10
OPERATING MODEL IMPROVEMENTS Small l CONSOLIDATING WAREHOUSES SHARING BEST PRACTICE improv ovem emen ents • Close smaller and less efficient facilities • Make use of collective resources, ev every d y day y experience and expertise • Continually evaluate and upgrade ev everyw ywher ere l lead warehousing • Global collaboration to s significant progress o over ERP IMPLEMENTATIONS GLOBAL PURCHASING time me • Warehouse management systems • Substantial purchasing synergies with suppliers • Vehicle routing systems • Benefit from Bunzl Shanghai • CRM systems sourcing facility DIGITAL CAPABILITIES • Investment in e-commerce capabilities • Focus on digital marketing • Opportunity for efficiency gains 2017 AGM APRIL 2017 11
ACQUISITION GROWTH 136 * acquisitions 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2004 - 2016; tota tal c committe ted Number of 7 7 9 8 7 2 9 10 13 11 17 22 14 spe pend o of £2.5bn acquisitions Committed acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 spend (£m) Annualised acquisition 430 270 386 225 151 27 154 204 518 281 223 324 201 revenue (£m) * Includes two committed acquisitions in 2016 which completed in January 2017 04-05 continuing operations only 2017 AGM APRIL 2017 12
GEOGRAPHIC EXPANSION Signifi ficant s scope 1997* 2003* 2005* 7 12 18 for fu future geog eographic ic COUNTRIES COUNTRIES COUNTRIES expansion 2012 2017 27 30 COUNTRIES COUNTRIES COUNTRIES 2016 Revenue 2010 2004* North America Continental Europe UK & Ireland Rest of World * Continuing operations only 2017 AGM APRIL 2017 13
SIGNIFICANT OPPORTUNITIES TO GROW IN EXISTING COUNTRIES COUNTRY FOODSERVICE GROCERY C&H SAFETY RETAIL HEALTHCARE COUNTRY FOODSERVICE GROCERY C&H SAFETY RETAIL HEALTHCARE ● ● ● ● Romania USA ● ● ● Canada Hungary ● ● ● ● ● ● ● Mexico Slovakia ● ● ● ● ● UK Israel ● ● ● ● Ireland Turkey ● ● ● ● ● Germany Brazil ● ● ● ● ● ● France Chile ● ● ● ● ● ● ● ● ● Colombia Italy ● ● ● ● ● ● ● Argentina Spain ● ● ● ● ● Netherlands Peru ● ● ● ● ● ● Belgium Uruguay ● ● Denmark Australia ● Switzerland New Zealand ● ● ● ● ● ● ● ● ● ● Austria Hong Kong ● ● ● ● ● ● ● ● ● Czech Republic Singapore ● No existing presence 2017 AGM APRIL 2017 14
FINANCIAL TRACK RECORD 2004-2016 REVENUE (£bn) ADJUSTED OPERATING PROFIT* (£m) Prov Pr oven en c compou ounding 7.4 strategy 525 CAG AGR 2.4 169 10%-11% 04 05 06 07 08 09 10 11 12 13 14 15 16 04 05 06 07 08 09 10 11 12 13 14 15 16 ADJUSTED EPS* (p) DIVIDEND PER SHARE (p) 04-12 restated on adoption 42.0 106.1 of IAS 19 (revised 2011) 13.3 31.7 04 05 06 07 08 09 10 11 12 13 14 15 16 04 05 06 07 08 09 10 11 12 13 14 15 16 * Before adjusting items (customer relationships amortisation and acquisition related costs) and the associated taxation, where relevant - see Appendix 2 and Appendix 3 04-05 continuing operations only 2017 AGM APRIL 2017 15
APPENDIX 1 ALTERNATIVE PERFORMANCE MEASURES This presentation includes various performance measures defined under International Financial Reporting Standards (‘IFRS’) as well as a number of alternative performance measures (known as non-GAAP measures). The principal alternative performance measures used in this presentation are: • adjusted operating profit; • adjusted profit before income tax; • adjusted profit for the period; • adjusted earnings per share. These measures exclude the charge for customer relationships amortisation, acquisition related costs and any associated tax, where relevant. These items are not taken into account by management when assessing the results of the business as they do not relate to the underlying operating performance and distort comparability between businesses and between reporting periods. Accordingly, these items are removed in calculating the profitability measures by which management assess the performance of the Group. Growth rates at constant exchange rates are calculated by retranslating the results for the year ended 31 December 2015 at the average rates for the year ended 31 December 2016 so that they can be compared without the distorting impact of changes caused by foreign exchange translation. Other non-GAAP measures, such as cash conversion, are based on or derived from the non-GAAP measures noted above. All alternative performance measures in this presentation have been calculated consistently with the methods applied and disclosed in the 2016 Annual Report. 2017 AGM APRIL 2017 16
APPENDIX 2 INCOME STATEMENT ALTERNATIVE PERFORMANCE MEASURES £m 2016 2015 Operating profit 409.7 366.5 Adjusting items* 115.3 88.5 Adjusted operating profit 525.0 455.0 Operating margin 7.1% 7.0% Net finance cost (46.8) (43.8) Adjusted profit before income tax 478.2 411.2 Tax on adjusted profit (128.6) (113.1) Adjusted profit for the period 349.6 298.1 Adjusted earnings per share 106.1p 91.0p * See Appendix 3 2017 AGM APRIL 2017 17
APPENDIX 3 ADJUSTING ITEMS £m 2016 2015 Customer relationships amortisation (81.3) (66.8) Deferred consideration payments (29.6) (24.3) Transaction costs and expense (6.8) (7.9) Earn-out adjustments 2.4 10.5 Total adjusting items (115.3) (88.5) 2017 AGM APRIL 2017 18
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