0 Preliminary Results FY June 2009 1 Highlights & Key Issues Operating Performance Full Financial Performance Outlook & Strategy AGENDA 2 FINANCIAL RESULTS HIGHLIGHTS m SALES28.2 EBITDA*5.1 PBT(aefx)*2.0 E.P.S.*10.0p * Excluding as appropriate or relevant, amortisation, exceptionals, negative goodwill credit, unrealised foreign exchange costs & derivative gains/losses 3 EXTERNAL FACTORS Global recession and decline of international trade volume impact Raw material price volatility Currency volatility and sterling depreciation INTERNAL FACTORS Full year impact of acquisitions made in FY2009 Sale of Mulberry completed March 2009 Major cost reduction programmes Investment and start up of Thailand factory FACTORS AFFECTING FINANCIAL PERFORMANCE IN FY2009 4 Note: Indexed vs. Q1 FY08/09 (= 100) SALES VOLUME INDEX FY2009 5 Note: Indexed vs. April 2009 (= 100); weighted average of raw materials RAW MATERIAL PRICE INDEX FY2009 Price Index 6 FOREIGN EXCHANGE RATES INDEX FY2009 FY2009 end 7 The following slides look at operating performance measured from different perspectives: Actual: FY2009 compared to FY2008 no adjustments Proforma: FY2009 compared to FY2008 results adjusted for any acquisitions in the year Assumes that acquisitions occurred at the start of the year Shows just underlying organic growth Constant FX: FY2009 compared to FY2009 restated for FX changes during year Shows impact of FX movements on performance OPERATING PERFORMANCE FY2009 8 OPERATING PERFORMANCE - ACTUAL Notes 1.Gross Profit, EBITDA and EBITA excludes exceptionals Strong growth has been achieved vs same period last year due to acquisitions completed in FY2008 9 OPERATING PERFORMANCE PROFORMA BY DIVISION Organic growth has been held back by tough economic conditions Nevertheless 18% EBITDA/Sales margin achieved Notes 1.Gross Profit, EBITDA and EBITA exclude exceptionals 2.GP is accounting definition (i.e. direct labour included) 10 OPERATING PERFORMANCE PROFORMA BY REGION Demand from US and Europe has been weak Notes 1.Gross Profit, EBITDA and EBITA exclude exceptionals 2.GP is accounting definition (i.e. direct labour included) 11 OPERATING PERFORMANCE - CONSTANT FX Sterlings depreciation during the year has assisted operating performance Notes 1.Gross Profit, EBITDA and EBITA exclude exceptionals 12 CHANGES IN HEADCOUNT AND COSTS Headcount Reductions Headcount reductions on a like-for-like basis of c.15% Cost reductions annualised effect 2.1m Annual impact of headcount savings made in FY 1.4m Other COGS savings in FY 0.3m Annual impact of further headcount reductions already made in FY 0.4m 13 OPERATING PERFORMANCE DIVISIONAL HIGHLIGHTS Rotating Parts (BNL) Affected by capital goods decline and destocking of global supply chains Thailand investment completed on time and within budget 25% of production moved to Thailand 1.6m of new projects won during course of year New project pipeline still good despite wider economic conditions Print/Packaging Consumables (C&T) Impacted by destocking at distributors Benefits from integration of Trimplex with Channel not yet realised Unforeseen delays in certain engineering projects Small competitors now under pressure leading to opportunities to gain market share Specialist Film Packaging (Palagan) New operational management structure implemented new MD, Operations Director Successful navigation of extreme raw material price inflation and deflation Increased penetration of new branded film Nylastrong Hose Mandrels/Films (Bell) Affected by capital goods decline since Q2/Q3 New MD appointed from August 08 Strong focus on new business generation since Q2, now starting to bear fruit New premises secured; relocation imminent 14 OPERATING PERFORMANCE SUMMARY Summary Global recession has led to volume declines and lower operational profitability (EBITDA) than FY2008 Acquisition in FY2008, favourable exchange rate movements and some price inflation have reduced the effect of lower volumes All divisions affected, particularly if exposed to International trade, and Capital goods However: Operating margins remain good Trading remains profitable in all divisions Labour and overheads significantly reduced benefit to be fully reflected during FY2010 Trading conditions are stabilising New business activity remains a priority, with benefit as conditions improve 15 FINANCIAL PERFORMANCE FY2009 Notes 1.EBITA excludes exceptionals Our statutory accounts include adjustments for non-trading items to show underlying performance: 16 EXCEPTIONAL COSTS Exceptional costs consist of: 17 CASH FLOW Cash flow has remained strong 18 NET DEBT Net debt increased due to translation losses on foreign currency loans The Group also has a bank overdraft facility of 2m which can be draw upon 19 KEY RATIOS Other key ratios: 20 OUTLOOK Economic climate remains difficult Demand levels continue to be weak Demand has stabilised at current levels However Sterling remains weak improving our competitiveness US$ hedged at 1.55/ New business wins across all subsidiaries Significant potential to gain market share Significantly lower cost base in FY2010 Personnel reductions already implemented Further cost opportunities during FY2010 Increased use of Thailand facility C&T engineering projects Some further personnel reductions 21 STRATEGY Current focus is cash generation to deleverage Significant opportunity to reduce debt during FY2010 Acquisitions Valuation expectations generally too high to justify Opportunities to rationalise weak competitors starting to materialise