McBride plc Investor Presentation May 2007

McBride plcInvestor PresentationMay 2007

BEHIN

D

THE

LABEL

2Investor Presentation - May 2007

McBride snapshot

» Europe’s leading provider of private label Household and Personal Care products

» Focus on driving growth of Private Label market share

» €1,000m annual revenues(1)

» No. 1 in UK, France, Italy and Poland

» 24% return on capital employed

» Asset turnover > 4

» 18 factories in 7 countries and China sourcing office

» Established business model - customer service, innovation, scale, efficiency, value added services, people and financial return

(1) Pro forma including full year effect of Henkel private label and Dasty acquisitions


Comprehensive range of household and personal care products

Household Personal care

Dishwashing- machine

dish wash products- rinse aids

- washing up liquid

Textile washing

- washing powders, tablets and liquids- fabric conditioner- anti-calc products

- laundry aids

Household cleaners

- all purpose cleaners- room specific cleaners

- toilet cleaners- bleach

Air care- timed release

- gels- plug-ins

Hair care- shampoo

- conditioner- hair sprays- styling aids

Body care- bath and shower gel

- liquid soap- deodorant- skin care- baby care

Oral care- toothpaste- mouthwash

Male grooming- shaving gel

- shaving foam- after shave

- men’s deodorant


Markets - Size (€bn. M.S.P. 2006)& Growth (% p.a. since 2000)

Market (€bn) Growth % Market (€bn) Growth %

U.K. 3.4 3% 3.8 3%

Germany 2.7 1% 3.8 2%

France 2.8 1% 2.8 4%

Italy 2.7 3% 2.4 5%

W. Europe 18.2 3% 19.9 4%

E. Europe 3.7 12% 1.1 11%

Europe 21.9 4% 21.0 4%

Source : Euromonitor/McBride

Household Personal Care


Private label is taking share in European markets

Source: Taylor Nelson Sofres, McBride (data for years to December 2005 and December 2006)Note: Data for certain countries derived from limited range of household products

Private label volume share of European household products markets

44.443.8

34.8

32.6

30.231.2

20.9 21.2

31.6 32.033.7

37.2

43.4

46.9

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Italy UK Belgium France Germany Netherlands Spain

(%)

2005 2006


Why is private label share growing?

» Retailer concentration

» Growth of discount retail sector

» Retailer strategy- need to differentiate- margin enhancement

» Consumer preference- quality vs price- performance vs branded products (e.g. Stiftung Warentest)

» Innovation- premium- convenience- environmental


Pro forma revenue by product category and geographic market

41%

24%

9%

7%

19%

UK France Germany Italy Others

Including full year effect of Henkel private label and Dasty acquisitions (based on results for 12 months to 31 December 2006). Revenue by geographic market is

by destination.

84%

16%

Household Personal care


Pan-European presence

1 Barrow 2 Burnley 3 Middleton 4 Bradford 5 Hull 6 Coventry 7 Rosporden 8 Moyaux 9 Etain10 Ieper (x2)11 Estaimpuis12 Foetz13 Strzelce14 Sallent15 Solaro16 Bergamo (x2)

UKUKUKUKUKUKFranceFranceFranceBelgiumBelgiumLuxembourgPolandSpainItalyItaly

123

6

14

4 5

7 8 9

10 1311

12

15 16

18 factories in 7 countries


Strategy for growth - organic

» To lead the growth of private label household and personal care products in Europe

» Commercial Leadership- focus on attractive product categories : auto-dishwash, specialist

cleaners, liquid detergents, air care and personal care- innovation : development of new and existing products- work with discount retailers- reinforcing category development skills

» Operational Leadership- optimise customer service- continuous improvement- further drive asset utilisation


Strategy for growth - acquisition

» Focus on attractive product categories : auto-dishwash, specialist cleaners, liquid detergents, air care and personal care

» Increase exposure to growing discount distribution channel

» Reduce dependency on UK and France household

» Strategic and in-fill opportunities

» Leverage established business model and systems

» Consolidation opportunity

» Attractive returns available


Acquisition of Dasty Italia SpA

Dasty Italia’s main factory in Bergamo

» Producer of specialist household cleaners

» Private label growth in Dasty’s product categories of 5% p.a.

» Strong position with discount retailers

» Highly complementary customers/products to McBride’s existing Italian business

» Creates clear leader in Italian private label household products

» Italy now McBride’s fourth largest market

» Good scope for cost synergies

» Expected to enhance EPS in first full year(1)

Dasty Italia acquisition financial metrics

2005 revenue: €40.4m

2005 operating profit: €3.9m

Acquisition price: €29m(2)

(1) Before amortisation of acquired intangible assets

(2) Enterprise value


Acquisition of Henkel’s European private label household products business

(1) Before amortisation of acquired intangible assets

(2) Enterprise value; £4.7m deferred consideration

Chemolux factory in Luxembourg» Acquisition includes- Chemolux ADW products business in

Luxembourg (45,000 tonnes per annum)- smaller specialist cleaners business in UK- German private label sales/marketing team

» Significantly expands McBride’s presence in central European territories

» Increases exposure to growing ADW product category and discount sector

» McBride to produce Henkel branded ADW products under long term contract

» Expected to enhance EPS in first full year(1)

Henkel acquisition financial metrics

2006 revenue: £92.5m

2006 operating profit: £4.7m

Acquisition price: £39.3m(2)


European private label household and personal care product providers

0

200

400

600

800

1000

1200

Annual re

venue (

€m

)

McBride Others PL/ Contract revenue


McBride established business model

» Focus on Private Label

» Use scale advantage to provide efficiency and value added services- market and consumer intelligence- category development advice- technical and product safety- fast, high quality innovation- best in class customer service

» Heavy usage of SAP systems - workflow and financial

» Stock replenishment and link to customer systems

» Competitive advantage from quality of people, attitudes & behaviours

» Strong financial position and high asset utilisation

» Continuous cost management


Continuous cost management

» Purchasing strategies/alternative sources - buying long- increased sourcing from China etc

» Alternative ingredients» Value engineering» Improved efficiency

- reduced waste- labour productivity- capital investment- leverage increasing scale- enhancing asset utilisation

» Changes to pack formats» Overhead reduction


Financial profile

Note: Figures exclude exceptional items

» Historic annualised revenues of over €800m - UK 45%; France 30%

» Recent operating margins of c. 6%- UK c. 9%, WCE c. 3%- Household c. 5%, Personal Care c. 8%

» Growth in UK market and personal care with weak French household market and upward pressure on raw material costs

» H 1 Op. Profit up 6% , E.P.S.(dil.) up 7%

» Strong cash generative characteristics provide capacity for acquisitions:- In-fill : 2 UK, 1 Poland- Strategic : Dasty, Henkel

Year to 30 June 2005

Year to 30 June 2006

6 months to 31 Dec

2006

Figures in £m unless otherwise stated

Revenue 537.1 540.1 278.2

EBITDA 53.6 49.0 24.7

EBIT 35.0 31.0 16.3

- EBIT margin 6.5% 5.7% 5.9%

PBT 33.6 29.7 15.6

EPS 13.2 11.7 6.3

DPS (p) 4.8 5.1 1.7

Net debt 24.4 29.1 25.1


Summary

» Leading supplier of FMCG products in growing private label segment

» Robust business and financial model

» Clear strategy- lead growth of private label HPC products in Europe- blend of organic and acquisitive growth- focus on selected attractive product categories- enhance exposure to growing retail distribution channels- continuous improvement of operating performance- increase shareholder value

» Significant future opportunities

Documents

McBride plc Investor Presentation May 2007