17 May 2018
IPL Plastics plcAGM 2018
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DisclaimerThe information in this Presentation has not been independently verified and does not purport to contain all of the information that may be required to evaluate an
investment in the Group and/or its financial position. Any prospective investors must make their own investigation, analysis and assessments and consult with their
own adviser concerning the data referred to herein and any evaluation of the Group and its prospects. IPL Plastics is not undertaking any obligation to provide any
additional information or to update this Presentation or to correct any inaccuracies that become apparent. The information contained in this Presentation is for
background purposes only and is subject to material updating, completion, revision, amendment and verification.
No representation or warranty, express or implied, is or will be given by IPL Plastics, its subsidiaries, its shareholders or their respective directors, officers,
employees or advisers as to the accuracy or completeness of this Presentation. To the extent permitted by law, no liability whatsoever is accepted by IPL Plastics,
its subsidiaries, its shareholders or their respective directors, officers, employees or advisers or any other person for any loss howsoever arising, whether directly or
indirectly, from any use of this Presentation or such information or opinions contained herein or otherwise arising in connection herewith. In particular, without
limitation, no representation or warranty is given as to the achievement or reasonableness of any projection, estimate, target or forecast in this Presentation, which it
should be noted is provided for illustrative purposes only.
This Presentation contains forward-looking statements which reflect management’s current views and estimates. These forward looking statements involve certain
risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties
include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.
Management undertake no responsibility to revise any such forward looking statements to reflect any changes in management’s expectations or any change in
circumstances, events or the Group’s plans and strategy. Accordingly, no reliance can be placed on the figures contained in such forward looking statements and no
representation or warranty is given as to the completeness or accuracy of the forward looking statements contained in this Presentation. The Group is under no
obligation to update or keep current the information contained in this Presentation, to correct any inaccuracies which may become apparent, or to publicly announce
the result of any revision to the statements made herein and any opinions expressed in the Presentation or in any related materials are subject to change without
notice.
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Consumer Packaging Solutions Returnable Packaging SolutionsLarge Format Packaging and
Environmental Solutions
Leading sustainable packaging solutions provider
Manufacturer of specialty packaging products used
primarily in the food and consumer, agricultural, logistics
and environmental end-markets
Group Overview
Effective 1 January 2018
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2017 Highlights
▪ The disposal of ClearCircle’s Specialist Environmental Services (“SES”) Divisions in Ireland and
the UK, with cash consideration of c. €40m received from the sale of both divisions
▪ The acquisition of 100% of the share capital of Macro Plastics Inc. on 9 June 2017 through IPL
Inc.
▪ The North American market contributed significant organic growth driven by continued increased
demand in both the Consumer Packaging and Large Format Packaging and Environmental
Solutions divisions.
▪ Significant development capital investment programmes continue in the Group’s North American
operations providing it with enhanced ability and capacity to serve an expanding business. A
number of these projects began to contribute to EBITDA in 2017.
▪ The hurricanes in the US in Quarter 3 2017 drove reduced capacity in both the resin and freight
markets resulting in significant cost increases in Quarter 4 2017, trends which have continued
into Quarter 1 2018.
▪ Overall results for 2017 in line with expectations.
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Key Strategic Milestones
▪ At its EGM in December 2017, the Group took the initial steps to facilitate a possible liquidity
event when shareholders gave the board authority to enable the company to proceed with an
IPO and Listing in 2018 should market and other conditions permit. Authority was also received
from shareholders to change the name of the company to IPL Plastics plc, which became
effective on 7 December 2017. In addition, the shareholders approved a reorganization of the
existing IPL Inc. shareholding structure by agreeing to an exchange of the current minority
shareholders’ equity interests in IPL Inc. for shares in IPL Plastics plc.
▪ On 28 February 2018, the reorganization of the IPL Inc. shareholding structure was effected in
line with the approval provided by shareholders at the December 2017 EGM, resulting in the
issuance of 47,238,242 shares and the elimination of the Put Liability (i.e. the 33.3% of IPL Inc.
not owned by the Group), which amounted to €119.8m at year end 2017.
▪ On 17 April 2018, the Group entered into a new €400m, multi-currency banking facility, with a five
year term with a syndicate of Irish and Canadian banks to replace the previous two principal
bank facilities that had been provided by separate Irish and Canadian banking syndicates.
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IPL is taken private by
Novacap &
Acquisition of
a leading manufacturer
in returnable packaging
solutions
IPL Plastics History
1939
IPL is founded
as a small manufacturer
of household items
1985
IPO of IPL on the
Montreal Stock
Exchange
2010 2011
Acquisition of Plastic
Enterprises Co.,
expanding CPS capacity
(Lee’s Summit Plant)
2015 2016 2017 2018
Disposal of
One51’s Irish
metal recycling
business
Refocus of
operations on Rigid
Plastic with the
disposal of
environmental
services business
One51 changes its
name to
Well established business with over 75 years of innovation and leadership
2016
Acquisition of
expanding its
LF&E capacity
2015
One51
acquires a 67% majority equity
interest in , with
22%
11%
as minority shareholders
2011
Adoption of an action plan
to transform One51 from
an investment company to
an operations focused business
2014
CDPQ and FSTQ exchange
their minority equity interest into
shares of the parent, effectively
consolidating the company
Global refinancing of all credit
facilities under parent company2017
Acquisition of
establishing the
Plastics Division
of One51
2006
Acquisition of
a key supplier of
environmental containers
in the U.K., and rebranding
of its plastics business as
One51 established as a
diversified investment
company
2005
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MEXICO
CANADA
UNITED STATES
Our Global Footprint
Well invested manufacturing facilities across North America, Ireland, the U.K. and China
Office
R&D Centre
7 Corporate & Sales
Offices Worldwide
4 R&D Facilities in
Canada, U.S. and
Ireland
1.7 Million Square Feet
of Manufacturing and
Storage Space
320 Machines
Returnable Packaging Solutions
Large Format Packaging &
Environmental Solutions
Consumer Packaging Solutions
14 Manufacturing
Facilities
CHINA
U.K.
IRELAND
Injection Molding: 304
IML Capable: 68
Blow Molding: 4
Thermoforming: 12
North America Europe & Asia26% 74%
1. Legacy Ampthill Metal, metal recycling business
2. Represents percentage of 2017 total revenue; pro forma figures including the full 12-month of the Macro acquisition.
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IPL at a Glance
Tamper-evident
Packaging
Custom Packaging
Food Industrial
General WasteRecyclingOrganic
Material
Handling
Lids and Overcaps
Film Seal
Packaging
Agricultural Automotive
Consumer Packaging
Solutions
Large Format Packaging &
Environmental SolutionsReturnable Packaging Solutions
MARKET
LEADERSHIP
GROWING
END-MARKET
PRODUCTS
#1 Environmental carts producer
in Canada and U.K#1
Supplier of IML packages
in North America
#1 Bulk plastic container producer
in North America#3
Plastic pails producer in North America
✓ Food and beverage
✓ Dairy
✓ Consumer products
✓ Food industry
✓ Waste management services
✓ Construction products
✓ Agriculture
✓ Logistics
✓ Automotive
✓ Portable flooring
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… With a Strong Sustainability Focus
IPL is continuously working with its consumers & suppliers to help build
a circular economy for plastic products
All our products are
100%recyclable
Nearly all of our
products are made from
Easy to Recyclepolypropylene or
polyethylene
50%(and growing) of our
products positively
contribute to the circular
economy
Design:
✓ R&D efforts to develop innovative,
lighter products minimizing raw
material inputs
✓ Ongoing trials with polymers
containing colorants to improve
recyclability of CPS packaging
Production:
✓ 2016-2020 capital program leading
to energy input savings of up to
25%, in addition to reduced cycle
times and raw materials input
✓ Initiative in place to install an
environmental management system
at all our production facilities by
2020 (vs. 50% currently)
Distribution:
✓ Constant focus to produce lighter
and / or stackable products to
minimize carbon footprint during
transport
✓ Production and development
planning taking customer’s location
into account to minimize product
travel time
Consumption, Use, Reuse, Repair:
✓ Global leader in returnable /
re-usable packaging solutions to replace
incumbent wood, cardboard and foam
products with shorter lifespan
✓ Significant offering of serviceable
products / spare parts in the LF&E and
RPS segments to maximize product life
Collection:
✓ Take-back service for used
Environmental and RPS containers
to insure resin gets recycled and
reintroduced in the circular
economy
✓ Initiative in place to achieve zero
landfill status at all production
facilities by 2022
Recycling:
✓ All our products are 100%
recyclable
✓ Ongoing effort to maximize the
recycled materials content of our
products
▪ One of our plants has already
transitioned to >75% recycled
content in its products
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Reporting Structure up to 31 December 2017
IPL Plastics Group
IPL
Macro
Returnable Packaging Solutions
IPL
Consumer Packaging
Large Format Packaging and Environmental
Solutions
OPG
OPG
Consumer Packaging
Large Format Packaging and Environmental
Solutions
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Updated Reporting Structure Effective 1 January 2018 – Have Also
Changed Reporting Currency to US$ effective 1 January 2018
IPL Plastics Group
Returnable Packaging Solutions
North America
Consumer Packaging
North America Europe
Large Format Packaging and Environmental
Solutions
North America Europe
Management have made a number of organisational changes, effective 1 January 2018 which
underpin the Group’s strategy of focused growth and development through organic and acquisition
led initiatives and to support the efforts to achieve synergies and leverage expertise across our three
primary market facing activities.
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Summary Financial Information
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2017 Trading Highlights
▪ 36.2% growth in Revenue² to €474.4m (2016: €348.2m)
▪ 46.0% increase in EBITDA² to €70.9m (2016: €48.5m)
▪ 47.3% growth in EBIT² to €41.6m (2016: €28.3m)
▪ Profit before exceptional and non-recurring items and share of equity-accounted investees profits
increased to €19.6m (2016: €17.9m)
▪ Profit for the period of €17.6m (2016: €16.1m)
▪ 8.8% increase in Adjusted diluted EPS to 12.01c (2016: 11.04c)
▪ EBITDA interest cover of 5.2x (2016: 6.2x)
▪ Total Assets of €621.9m (31 December 2016: €511.4m)
▪ Total Equity (excluding IPL Put Liability) of €202.5m (31 December 2016: €190.9m)
▪ Net Debt of €233.0m (31 December 2016: €152.5m)
1 The financial highlights should be read in conjunction with the 2017 Annual Report & Accounts.2Amounts for Revenue, EBITDA and EBIT for the year ended 31 December 2017 and prior years throughout this document exclude amounts related to discontinued operations.3 Certain tables and numbers in this presentation may not add or compute precisely due to rounding.
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Income Statement
€’m 2015 2016 2017
Revenue 251.4 348.2 474.4
Operating profit before exceptional items 17.9 30.4 38.4
Non-recurring items 1.7 (2.2) 3.3
Depreciation & Amortisation 11.7 20.3 29.2
EBITDA 31.3 48.5 70.9
EBITDA margin (%) 12.5% 13.9% 14.9%
EBIT 19.6 28.3 41.6
Exceptional/non-recurring items (4.4) 0.7 (9.8)
Share of profit of equity-accounted investee 24.3 3.9 1.8
Discontinued operations (12.8) (4.3) (3.2)
Finance costs (5.7) (8.9) (13.8)
Income tax expense (2.7) (3.5) (7.2)
Non-recurring income tax credit - - 8.1
Profit for year 18.4 16.1 17.6
Adjusted EPS (Diluted) 6.98c 11.04c 12.01c
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Divisional analysis
Revenue €’m 2015 2016 2017 % Change 2017
v 2016
IPL Inc. 86.6 204.3 293.8 43.8%
OnePlastics Group 145.2 126.9 114.1 (10.1%)
Macro N/A N/A 47.5 N/A
Other 19.6 17.0 19.0 11.8%
Total 251.4 348.2 474.4 36.2%
EBITDA €’m 2015 2016 2017 % Change 2017
v 2016
IPL Inc. 12.6 31.6 45.9 45.3%
OnePlastics Group 20.5 17.2 13.1 (23.8%)
Macro N/A N/A 12.6 N/A
Other (1.8) (0.3) (0.7) (133.3%)
Total 31.3 48.5 70.9 46.0%
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Balance Sheet
€’m 20152016
(Restated)2017
Goodwill & Intangible Assets 140.7 140.1 206.9
Tangible Assets 161.9 160.8 214.6
Financial and Other Assets 14.3 22.2 24.6
Non-Current Assets 316.9 323.1 446.1
Current Assets 126.2 188.3 175.8
Total Assets 443.1 511.4 621.9
Creditors: within 1yr (92.9) (101.9) (130.4)
Creditors: more than 1yr (165.2) (218.6) (289.0)
Total Equity (Before Put Liability) 184.9 190.9 202.5
IPL Put Liability 32.4 72.2 119.8
Total Equity (After Put Liability) 152.6 118.6 82.7
Net Debt 120.3 152.5 233.0
Net Debt/EBITDA* 3.3x 2.5x 3.0x
*Calculated by reference to EBITDA as reported in each year, adjusted in 2016 and 2017 to reflect the pro forma EBITDA of acquisitions made in each respective year.
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Cash Flow€’m 2015 2016 2017
Net cash inflow from operating activities (before tax and working capital
movement)
33.9 50.8 63.1
Working Capital movement 2.5 9.9 (13.7)
Maintenance capital expenditure (9.5) (10.2) (5.6)
Finance costs paid (net) (5.8) (9.2) (13.4)
Income tax paid (2.7) (4.4) (1.6)
Free cash flow 18.4 36.9 28.8
Development capital expenditure (14.3) (21.5) (37.9)
Free cash flow after development capital expenditure 4.1 15.4 (9.1)
Disposals 3.7 3.4 40.6
Share redemption proceeds from equity-accounted investee (net of costs) 51.2 - -
Acquisitions (inc. related costs) (177.9) (22.2) (124.2)
Distributions received 2.3 3.2 6.8
Net cash/(debt) acquired on purchase of subsidiary 0.6 (21.1) (10.4)
Other – including effect of movements in exchange rates 3.1 (10.9) 15.8
Movement in net debt in the year (112.9) (32.2) (80.5)
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Strategy & Outlook
Strategy Strong Platform With Clear Growth Avenues
Leverage Platform to Drive Organic Growth in Target End Markets
and Grow Into Adjacent Markets
Realize Value From Significant Recent Capital Investments
Continue to Focus On Operational Excellence To Drive Margin
Expansion And Increased FCF Generation
Continue To Grow Through Strategic Acquisitions With a Well
Capitalized Balance Sheet to Support Growth
• Become a leading global
manufacturer in the specialty rigid
plastics industry
• Be recognized for our
– Unified best-in-class customer
experience
– Disciplined capital allocation
balancing market needs and
return thresholds
– R&D efforts focused on low risk
rapid payback projects
– Value added product offering
based on long-term market
needs
– Leverage increasing scale to
achieve long-term raw material
cost savings
Corporate Vision
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• The Group continues to experience strong demand for its products and its operations are
underpinned by favourable market dynamics, particularly in North America.
• Group results in the second half of 2017 were adversely impacted by increased resin and
transport costs following the impact of significant hurricanes recorded in the US. Results were
also impacted by a decline in the value of the US dollar and the Canadian dollar versus the Euro.
The trading performance at the start of 2018 continues to be impacted by these factors.
Notwithstanding, we expect the results for FY18 to be in line with market expectations assuming
no further exceptional movements in currency or input costs.
• The Group’s overall 2018 results should start to see the full year impact of some of the new
capital expenditure programmes commissioned in the latter half of 2017, together with a full
year’s contribution from Macro.
• It is now proposed, subject to the approval of shareholders, that a new Canadian company, IPL
Plastics Inc. be introduced as the holding company of the IPL Plastics Group by a scheme of
arrangement in anticipation of a potential initial public offering by IPL Plastics Inc. of its common
shares. Shareholder approval of the scheme is sought at today’s EGM.
Outlook
Thank you
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