ANNUAL GENERAL MEETING 16 APRIL 2014 INCOME STATEMENT Growth % - PowerPoint PPT Presentation

WE SOURCE WE CONSOLIDATE WE DELIVER ANNUAL GENERAL MEETING 16 APRIL 2014

INCOME STATEMENT Growth % Constant 2012 † £m 2013 Reported Exchange Revenue 6,097.7 5,359.2 14 12 Operating profit* 414.4 352.4 18 16 Net finance cost (42.2) (34.0) Profit before tax** 372.2 318.4 17 16 Operating margin* (%) 6.8 6.6 Effective tax rate (%) 27.9 27.7 Adjusted earnings per share** (p) 82.4 70.6 17 15 Dividend per share (p) 32.4 28.2 15 * Before intangible amortisation and acquisition related costs ** Before intangible amortisation and acquisition related costs and disposal of business † Restated on adoption of IAS19 (revised 2011) 1

CASH FLOW £m 2013 2012 421.1 Operating cash flow* 328.9 Interest (39.0) (30.6) Tax (80.3) (63.6) Free cash flow 301.8 234.7 Dividends (91.8) (85.7) Acquisitions (279.9) (254.7) Employee share schemes (43.3) (3.7) Net cash flow (113.2) (109.4) Operating cash flow to operating profit † 102% 93% * Operating cash flow before acquisition related costs † Before intangible amortisation and acquisition related costs 2

CASH CONVERSION* 110% 103% 102% 102% 95% 93% 92% 92% 93% 93% 90% 04 05 06 07 08 09 10 11 12 13 Average cash conversion* 98% * Operating cash flow before acquisition related costs to operating profit before intangible amortisation and acquisition related costs 04-05 continuing operations only 3

FINANCIAL SUMMARY Operating Revenue Operating Revenue and profit* margin* Operating profit  12 % †  16 % †  20 bps ROACE of Cash Acquisition Capital management conversion ♦ spend and Cash flow 102 % 56.9 % £280 m  4 0 bps Adjusted Dividend EPS and Dividend EPS** per share  15 % †  15 % † At constant exchange rates * Before intangible amortisation and acquisition related costs ** Before intangible amortisation and acquisition related costs and disposal of business ♦ Operating cash flow before acquisition related costs to operating profit before intangible amortisation and acquisition related costs 4

BROAD BASED GROWTH £m 168 6,200 24 27 450 6,000 5,800 5,600 6,098 5,400 5,429 5,200 5,000 Revenue 2012 NA CE UK&I ROW Revenue (FX Adjusted) 2013 20 440 6 6 420 26 400 380 433 360 375 340 320 Operating profit* NA CE UK&I ROW Operating profit* 2012 2013 (FX Adjusted) * Before intangible amortisation and acquisition related costs and corporate costs 5

ACQUISITION ACTIVITY External sources Bunzl Bunzl subsidiaries central team 500+ Pool of opportunities c.50 Initial discussions c.30 Further discussions 2013 c.20 Active engagement Completed 11 6

ACQUISITION GROWTH – 2013 Business Acquired Country Sector Revenue* McNeil Surgical January Australia Healthcare £10m Labor Import March Brazil Healthcare £15m MDA March UK Non-food retail £23m BIS (Jeminex) April Australia Safety £98m TFS July UK Non-food retail £9m Espomega August Mexico Safety £27m ProEpta September Mexico Foodservice £18m Wesclean November Canada Cleaning & hygiene £40m pka Klöcker November Germany Safety £5m De Santis December Brazil Safety £5m SAS Safety December USA Safety £31m Annualised revenue of £281 million * Annualised and converted at average exchange rates 7

ACQUISITION GROWTH – TRACK RECORD 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of 7 7 9 8 7 2 9 10 13 11 acquisitions Committed acquisition 302 129 162 197 123 6 126 185 277 295 spend (£m) Annualised acquisition 430 270 386 225 151 27 154 204 518 281 revenue (£m) 04-05 continuing operations only Average acquisition spend of £252 million in last three years 8

WHY INVEST IN BUNZL? “ …. because Bunzl is the leader in the market with consistently good growth, stable operating margins, a very high return on operating capital and it turns on average “ more than 90% of the operating profit into cash which can be reinvested at a rate well in excess of the cost of capital 9

FINANCIAL TRACK RECORD Revenue (£bn) Operating profit (£m) 433 6.1 Before amortisation and acquisition 04-05 continuing operations only related and corporate costs 5.4 371 04-05 continuing operations only 5.1 353 4.8 323 4.6 312 297 4.2 259 3.6 241 3.3 218 2.9 183 2.4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Adjusted eps (p) Dividend per share (p) 32.4 82.4 28.2 Restated on adoption of As reported 70.6 26.4 67.6 IAS 19 (revised 2011) 23.4 59.7 21.6 55.4 20.6 51.8 18.7 17.0 44.4 15.7 41.1 38.2 13.3 31.7 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 All CAGRs greater than 10% 10 10

DIVIDEND PER SHARE (P) 32.4 CAGR >10 % 4.0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Consistently strong dividend growth 11 11

USES OF CASH 2004 - 2013  CAGR >10% p.a. Dividends  Stable dividend cover – c.2.5x £656 m  >80 acquisitions Acquisition spend  Self funded £1.7 bn Strong cash flow = Growing dividend + Acquisitions 12 12

TOTAL SHAREHOLDER RETURN Share price (p) TSR £14.50 450 442 400 16% p.a. £4.53 350 FTSE 100 – 8% p.a. 300 250 Dividend growth 217 32.4p 200 >10% CAGR 150 13.3p 100 Bunzl TSR FTSE 100 TSR 13 13

DISCLAIMER No representation or warranty (express or implied) of any nature can be given, nor is any responsibility or liability of any kind accepted, by Bunzl plc with respect to the completeness or accuracy of the content of or omissions from this presentation. This presentation is for information purposes only and does not constitute and shall not be deemed to constitute an offer document or an offer in respect of securities or an invitation to purchase or subscribe for any securities in any jurisdiction. Persons in a jurisdiction other than the United Kingdom should ensure that they inform themselves about and observe any relevant securities laws in that jurisdiction in respect of this presentation. The presentation does not constitute an offer of securities for sale in the United States. None of the securities described in the presentation have been registered under the U.S. Securities Act of 1933. Such securities may not be offered or sold in the United States except pursuant to an exemption from such registration. This presentation contains forward-looking statements. They are subject to risks and uncertainties that might cause actual results and outcomes to differ materially from the expectations expressed in them. You are cautioned not to place undue reliance on such forward-looking statements which speak only as of the date hereof. Bunzl undertakes no obligation to revise or update any such forward-looking statements. Where this presentation is being communicated as a financial promotion it will only be made to and directed at: (i) those persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (ii) those persons falling within Article 49 of the Order; or (iii) to persons outside of the United Kingdom only where permitted by applicable law (all such persons together being referred to as “relevant persons”) and must not be acted on or relied on by persons who are not relevant persons. 14 14