Globe International Limited · ASX:GLB

Globe International — FY2002 Earnings Presentation

16 slides from Globe International's earnings presentation, 2002

  1. Slide 1: 2002 Financial Results

    globe iwreenationar LTD. 2002 FINANCIAL RESULTS

  2. Slide 2: Summary of Performance

    SUMMARY OF PERFORMANCE „ Delivered solid financial result „ Exceeded prospectus earnings „ Expanded business model via acquisition „ Confident of outlook „ Strong balance sheet position supports ongoing growth „ Integration continuing well Page 2

  3. Slide 3: Highlights

    HIGHLIGHTS „ Net Sales of $217m, 24.5% over pro-forma 2001 „ EBITDA of $43.0m, 79.2% over pro-forma 2001 „ EBITDA margin of 19.8% „ NPAT before amortisation of $28.6m, 74% over pro- forma 2001 „ ROE of 21% improvement from 8.9% „ Final dividend of 2.5 cents (fully franked) giving full year dividend

  4. Slide 4: Financial Summary

    FINANCIAL SUMMARY Sales (AUD mill) 2001 2002 % Growth Prospectus (Pro-forma) „Australasia 91.7 106.4 16% 108.7 „Nth America 45.2 66.7 47% 77.0 „International 37.3 43.9 18% 48.6 Total Sales 174.2 217.0 24% 234.3 EBITDA 24.0 43.0 79% 42.1 EBITDA MARGIN 13.8% 19.8% 17.9% EBITA . 23.1 41.4 79% 41.1 EBIT

  5. Slide 5: Globe Group EBITA

    GLOBE GROUP EBITA EBITA Margin EBITA Growth Improvement (AUD mill) 45 20.00% 19% + 79% 40 18.00% 16.00% 35 14.00% 13% 30 + 41% 12.00% 25 10.00% 20 8.00% 15 6.00% 10 4.00% 5 2.00% 0 0.00% 2000 2000 2001 2001 2002 2002 Key focus was margin growth Page 5

  6. Slide 6: Sales/EBITA – 1st & 2nd Half

    SALES/EBITA – 1ST & 2ND HALF 1st & 2nd Half Sales 1st & 2nd EBITA (AUD mill) (AUD mill) 14 60 12 50 10 40 8 30 6 20 4 10 2 0 0 Australasia Nth America Australasia Nth America International International Page 6

  7. Slide 7: EBITA – Divisional Analysis

    EBITA – DIVISIONAL ANALYSIS EBITA EBITA Margin 30.00% $12.8m $12.8m 25.00% Nth America International 20.00% 15.00% 10.00% 5.00% $15.8m 0.00% Australasia Nth America International Australasia The major growth divisions are delivering higher margins Page 7

  8. Slide 8: AUD/USD Exchange Rate Impact

    AUD/USD EXCHANGE RATE IMPACT Prospectus Actual Adjusted EBITA Actual* (using prospectus exchange rate) (AUD mill) EBITA 41.1 41.4 42.3 42.4 42.2 42 * Converts actual USD revenue EBITA 41.8 at the exchange rate per Prospectus 41.6 assumption (52.5), allowing a like for 41.4 like performance compariso

  9. Slide 9: Divisional Review - Australasia

    DIVISIONAL REVIEW - AUSTRALASIA Review Sales Growth „ Sales AUD $106.4m + 16% „ EBITA AUD $15.8m +102% (AUD mill) 12 0 +16% „ EBITA margin 14.8% up from 8.5% 10 0 + 7% „ Continued strong growth of proprietary + 21% brands Globe, M-One-11, Mooks and 80 Gallaz „ Operational improvements - modern 60 wa

  10. Slide 10: Divisional Review – Nth America

    DIVISIONAL REVIEW – NTH AMERICA Review Sales Growth „ Sales USD 35.5m + 47% „ EBITA USD $7.1m + 243% „ Maintenance of margin disciplines during (USD mill) extremely difficult retail environment 40 period post 9/11 + 47% 35 „ Successful opening of Pacific Sunwear account 30 Outlook + 55% 25 „ Leverag

  11. Slide 11: Divisional Review – International

    DIVISIONAL REVIEW – INTERNATIONAL Review Sales Growth „ Sales USD 23.5m + 18% „ EBITA USD $6.9m (EBITA margin 29%) (USD mill) 25 +18% „ Commenced distribution in Japan and performance exceeding expectations +40% 20 Outlook „ Establishing a stronger team to maximise 15 + 37% growth opportunities „ Co

  12. Slide 12: Bal Sheet / Cashflow - Highlights

    BAL SHEET / CASHFLOW- HIGHLIGHTS „ Balance sheet strengthened during year „ Inventories down 6.4% despite 41.5% increase in sales „ Net tangible assets grew by over 30% yoy „ Current assets represent over 90% of total tangible assets „ Net assets per share $0.325 up from $0.30 „ Solid cash flow gene

  13. Slide 13: Kubic Acquisition

    KUBIC ACQUISITION „ Globe has purchased Kubic Marketing Inc. (“Kubic”), one of the world’s leading marketer of hardware in the board sports market „ Core products include skateboard decks, wheels and trucks, snowboards, t- shirts, knits and accessories, with Kubic more recently expanding into other

  14. Slide 14: Strategy, Markets & Outlook

    STRATEGY, MARKETS & OUTLOOK „ Margins „ Targeting of high margin business „ Exploiting economies of scale „ Brand Positioning „ Maintaining strong position in both surf and skate markets „ Globe footwear ranked in the top 3 in the surf and board riding channels (Wedbush Morgan Securities Survey – Ju

  15. Slide 15: Industry Outlook

    INDUSTRY OUTLOOK Action Sports Outlook Snow , skate, surf and w ake boarding, as w ell as bike sports like BMX (bicycle motocross) are seeing increased participation rates in the U.S. In 2000 11.7 million Americans participated in skateboarding. The number is expected to reach 15 million by 2005. 16

  16. Slide 16: Business Description

    BUSINESS DESCRIPTION Globe is a multi branded international operation in the surf and skate segment of the action sports market, supplying primarily apparel, footwear and hardware to retailers and distributors „ Key brands „ Globe „ Gallaz „ Mooks „ World Industries „ Blind „ Darkstar „ Markets „ No

Globe International — FY2002 Earnings Presentation on 6ix