Half Year Results February

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					      McBride plc
      2005-06: Interim Results
      9 February 2006



 McBride plc 2006
                      Key Messages
 • Solid result in a very competitive market
 • Continental European result disappointing
 • Strong Personal Care growth
 • Strong underlying cash generation
 • Initial finding of Business Review encouraging
 • Action programme to improve performance underway
 • Growth opportunities




 McBride plc 2006
                        Income Statement
            £m                      H1       H1
                                  2005     2004
            Revenue               270.4    268.0
            Operating profit       15.4     18.8
            Net Interest          (0.5)    (0.6)
            Profit Before tax      14.9     18.2
            Tax                   (4.5)    (5.5)
            Profit After Tax       10.4     12.7


            EPS                    5.8p     7.1p
            Dividend               1.6p     1.5p


 McBride plc 2006
                        Segmental Analysis
   £m
                                              H1       H1    Change %
   Revenue by Geographic Origin             2005     2004          +/-
   UK                                      122.1    119.4        +2%
   Continental Europe                      148.3    148.6            -
   Total                                   270.4    268.0       +1%
   Operating Profit by Geographic Origin
   UK                                       10.5     11.2         -6%
   Continental Europe                        5.7      8.2        -31%
   Corporate                                (0.8)    (0.6)
   Total                                    15.4     18.8       -18%




 McBride plc 2006
               Revenue by Product Segment


    £m                           H1      H1   Change %
                               2005    2004         +/-
    Household                 209.8   214.6        -2%
    Personal care              48.8    42.0      +16%
    Core PL /MB sub Total     258.6   256.6       +1%
    Contract                   11.8    11.4       +4%
    Total                    270.4    268.0      +1%




 McBride plc 2006
                         Free Cash Flow
         £m                           H1      H1
                                    2005    2004
         Operating profit            15.4    18.8
         Depreciation                 9.1     9.2
         EBITDA                     24.5    28.0
         Working Capital Movement   (1.4)     3.2
         Tax                        (3.1)   (3.0)
         Net Interest               (0.8)   (3.3)
         Operating Cash Flow        19.2    24.9
         Capital Expenditure        (7.5)   (8.7)
         Free Cash Flow             11.7    16.2




 McBride plc 2006
                     Net Debt Movement

        £m                           H1      H1
                                  2005    2004
        Free Cash Flow             11.7    16.2
        Rationalisation           (2.2)   (2.9)
        APL acquisition               -   (2.8)
        Net Share repurchase      (1.4)   (1.9)
        Dividends                 (5.9)   (5.0)
        Other                     (0.3)   (1.7)
        Net Debt Reduction          1.9     1.9




 McBride plc 2006
                                Balance Sheet
   £m                                                     Dec             Dec
                                                        2005            2004
   Non – current Assets *                              138.6           143.8
      Stocks                                             46.1            43.7
      Debtors                                            99.1          109.0
      Creditors                                      (143.7)         (152.7)
   Net Working Capital                                    1.5               -
   Employee Benefits                                  (15.5)          (14.5)
   Provisions **                                        (3.7)           (3.9)
   Net Debt                                           (22.5)          (29.5)
   Net Assets                                            98.4            95.9

   ROACE %                                               25%           30%
* includes assets held for resale but excludes deferred tax assets
** includes all deferred tax balances
 McBride plc 2006
                         Pensions
• McBride operates a defined contribution and defined benefit
  (DB) schemes in the UK and other small schemes in Europe
• The UK DB scheme was closed to new entrants in 2002
• The net of tax deficit for the UK scheme increased by £3m
  during the period to £10.8m.
• The 3 yearly actuarial valuation of the UK scheme is due during
  the second half




 McBride plc 2006
               Operational Review and
                      Strategy

                     Miles Roberts



 McBride plc 2006
                       Key Findings

•   Strong reputation
•   Good technology and product breadth
•   Good opportunities to improve efficiency and competitiveness
•   Increase accountability and responsiveness
•   Reinforce a performance based culture
•   Opportunities to improve European supply chain footprint
•   Enhance ability to respond to growth of hard discount format
•   Growth opportunities in existing and new geographic markets




 McBride plc 2006
                     Current Market Position
 • A leading European PL manufacturer
 • Market leading position in UK and France in household
 • Smaller market positions in Italy, Spain the Low Countries
   and Poland
 • Italy, Spain, Germany and Central Eastern Europe provide
   good opportunities to grow market share.
 • Personal Care, strong position in UK, growing positions in
   France, Belgium and Poland.
 • McBride supplies all PL formats but has a smaller share of
   the hard discount sector which is growing most strongly
 • Some loss of share on the Continent due to historic service
   issues

 McBride plc 2006
                     Current Retail Environment
 • PL share of a flat grocery market is increasing
 • Retailers margins and profits under pressure
 • Selling price deflation continues
 • PL offers retailers the opportunity to increase margins
 • Retailers diversifying and consolidating
 • Planning constraints favour the growth of discount and
   convenience stores
 • Discount format showing highest PL growth rates in
   Continental Europe
 • Recent changes in French retail law affecting PL


 McBride plc 2006
         Key Drivers of Private Label Growth

   • Consolidation of Retailers
   • Rationalisation of Store fascia
   • Cross Border expansion of major retailers
   • Hard Discount Store growth encourages increased PL
     development
   • Value to Consumer




 McBride plc 2006
Household and Personal Care Private Label
             performance
 • UK household PL in 2005 reaches 33.7% share by
   volume, and by value grows slightly
 • UK personal care PL* grows 5.7% to 17.0% by volume
   in 2005 despite small value decline
 • CE Household PL grew volume share across all markets
   in 2004
 • CE Personal care PL also grew volume share in 2004
   across all markets although from a lower base
 • The discount format has continued to increase its share
   of the European Grocery market to 17.8% in 2004
  * McBride core sectors excluding skincare and hair colourants


 McBride plc 2006
                          Operations              Efficiencies
Footprint




                        Reduce Cost base
                     Increase asset Utilisation
                         Improve Service




Scale                                     Technology

 McBride plc 2006
                          Management
                     Responsiveness    Accountability




                                   Winning
                                    Team

                     Performance           Performance
                      Incentives           Based culture



 McBride plc 2006
                        Way Forward
    • Change organisation
       – Strengthen Management and Structure in Europe
       – Bring in outside talent as required
    • Provide clear Objectives and Direction for each Business
       – Focus Business units on meeting Objectives
       – Reduce cost base / improve service
       – Focus on under performing assets / high performing assets
       – Target acquisitions to optimise potential
    • Cash / Funding
       – Drive Cash Generation
       – Refinance Group to underpin growth strategy


 McBride plc 2006
                         Summary

• Current trading environment is challenging
• PL market continues to grow
• McBride will maintain focus on HH and PC private label sector
• Opportunities exist for organic growth supported by internal
  investment and disciplined acquisitions
• Continue improvements in operational efficiency and
  competitiveness
• Maintain focus on trading performance and cash generation
• Strong financial platform to underpin growth and development



 McBride plc 2006
                 Current Trading and Outlook

    These results are in line with our expectations and have been
    achieved during very competitive market conditions and at a
    time when the performance of our Continental European
    business was disappointing. The initial findings from a
    comprehensive business review show good opportunities to
    improve trading performance with substantial effort currently
    focused on improving customer service and operational
    efficiency.

    Trading since the end of the half year has remained challenging
    but in line with our expectations




 McBride plc 2006
                     Appendices




 McBride plc 2006
 UK growth offsets weaker European sales
     100%
      90%
      80%
      70%
      60%
£m




      50%
      40%
      30%
      20%
      10%
       0%
              1999 /00 2000/01 2001/02 2002/03 2003/04 2004/05 2004/05 2005/06
                                                                 H1      H1

                                 Continental Europe / ROW   UK



  McBride plc 2006
Private Label share correlates with Retailer
               concentration
                  50
                  45
                  40
                                                          Switzerland
 PL Value Share




                  35
                                         Germany
                  30
                                         Spain             UK         Belgium
                  25
                  20                     Netherlands                   France
                                                           Denmark
                  15
                  10
                   5
                   0
                       0   20       40               60          80             100
                                Top Retailer share of market

                                          PL Share
 Source : The Power of Private Label 2005 AC Nielsen

 McBride plc 2006
     In Europe Private Label products were
      purchased by nearly every household
           UK

       France

   Switzerland

         Spain

     Germany

          Italy

                  0           20                40               60                80               100

                      Share of trips where PL purchased   PL products purchased in last 12 months

 Source : The Power of Private Label 2005 AC Nielsen

 McBride plc 2006
  Private Label increases to 33.7% volume
       share of UK Household market
                      60%

                      50%
     % Volume Share




                      40%

                      30%

                      20%

                      10%

                       0%
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                                                                       52 w/e Jan 02 2005            52 w/e Jan 01 2006

 TNSofres data: 52 weeks ending Jan 06


 McBride plc 2006
Private Label also improved value share of
        UK Household during 2005
                  45%
                  40%
                  35%
  % Value Share




                  30%
                  25%
                  20%
                  15%
                  10%
                   5%
                   0%
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                                                                   52 w/e Jan 02 2005           52 w/e Jan 01 2006

 TNSofres data: 52 weeks ending Jan 06


 McBride plc 2006
   UK Grocery PL Personal Care showed volume
         growth but lower price deflation
                                Volume                               Value
                              Market +2.9%                       Market +3.9%
                  20
                        Private Label +5.7%                    Private Label -0.7%
                  18
                  16
                  14
                              16.5%           17.0%
     % PL Share




                  12
                  10                                               8.4%           8.0%
                   8
                   6
                   4
                   2
                   0
                       2005            2006                        2005           2006
                              Volume                  Others                 Value
 * McBride core Grocery markets excluding skincare and hair colourants sectors and Boots

 McBride plc 2006
    The Discount sector reached 17.8% of the
        European Grocery market in 2004
                   20



                   15
Market Share (%)




                                                                                                                                                    8.2       8.3
                                                                                                                                          8.0
                                                                                                                      7.1       7.5
                                                                                        7.1       7.1       6.9
                                                                              6.7
                                                                    6.5
                   10                                     6.2
                                                5.6
                                      5.2
                            4.8

                    5                                                                                                                     9.1       9.3       9.5
                                                                                                  7.9       8.3       8.5       8.6
                                                                    7.2       7.6       7.7
                                                5.7       6.4
                            4.5       5.2


                    0
                        1


                                  2


                                            3


                                                      4


                                                                5


                                                                          6


                                                                                    7


                                                                                              8


                                                                                                        9


                                                                                                                  0


                                                                                                                            1


                                                                                                                                      2


                                                                                                                                                3


                                                                                                                                                          4
                     9


                              9


                                        9


                                                  9


                                                            9


                                                                      9


                                                                                9


                                                                                          9


                                                                                                    9


                                                                                                              0


                                                                                                                        0


                                                                                                                                  0


                                                                                                                                            0


                                                                                                                                                      0
                    9


                             9


                                       9


                                                 9


                                                           9


                                                                     9


                                                                               9


                                                                                         9


                                                                                                   9


                                                                                                             0


                                                                                                                       0


                                                                                                                                 0


                                                                                                                                           0


                                                                                                                                                     0
                   1


                            1


                                      1


                                                1


                                                          1


                                                                    1


                                                                              1


                                                                                        1


                                                                                                  1


                                                                                                            2


                                                                                                                      2


                                                                                                                                2


                                                                                                                                          2


                                                                                                                                                    2
                                                                                    Hard           Soft
                   Source :IGD


 McBride plc 2006

				
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