Slide 1: Gale Pacific Limited Results for Year Ended 30 June 2014
GALE PACIFIC LIMITED RESULTS FOR YEAR ENDED 30 JUNE 2014
Slide 2: FY2014 Financial Summary
FY2014 Financial Summary FY14 FY13 Variance Comments A$M’s A$M’s % Sales 137.3 120.0 +14% EBITDA 17.6 18.0 -2% EBIT 12.1 12.9 -6% EBIT to total funds employed FY14 13.3% (FY13 14.9%) NPAT 8.2 9.1 -9% Earnings per share (cents) 2.72 3.00 -9% Dividends per share (cents) 2.65 2.65 0% Cash from operatio
Slide 3: Strategy Update
STRATEGY UPDATE
Slide 4: Our Plan
Our Plan Create a more focused, innovative, globally collaborative business geared towards improving PLAN service and leveraging our global scale GLOBAL IMPROVING LEVERAGING FOCUSED INNOVATIVE COLLABORATION SERVICE GLOBAL SCALE • Brand strategies • Incubate R&D • Executive Leadership • Global planni
Slide 5: Our Structure
Our Structure GROUP A new structure aligned with and supporting our MANAGING DIRECTOR strategy FINANCE H.R. SUPPLY CHAIN ANZ USA M/EAST INT’L CHINA New leadership – Nick Pritchard appointed to role of NEW PRODUCT I.T. LOGISTICS Group Managing Director DEVELOPMENT GLOBAL SALES DEMAND Streamlined orga
Slide 6: Efficiency & Effectiveness Projects
Efficiency/Effectiveness Projects Major Efficiency & Effectiveness programs to unlock our trapped capacity for growth and position us for success. EFFICIENCY & EFFECTIVENESS PROJECTS Global Supply Chain & Build model to improve planning, manufacturing efficiency, service & reduce global inventory In
Slide 7: Key Strategies
Key Strategies MAKE OUR BRANDS REALLY BUILD OUR GLOBAL SIMPLIFY & ALIGN THE FOCUS OUR INTERNATIONAL DEVELOP THE TEAM FOR MATTER EXECUTION CAPABILITY ORGANISATION EXPANSION GROWTH Brands – Define our brand Planning – Take a global Reporting – Align our Core Markets – Invest for Executive Leadership T
Slide 8: Key Initiatives - Pool Fencing Relaunch
Key Initiatives - Pool Fencing Relaunch Relaunch Pool Fencing/Balustrade range under a new brand, EVERTON - October 2014 Improved packaging stability & appearance Make category easier to shop with a selection system, improved in-store point-of-sale material, online pool fencing calculator & DIY vide
Slide 9: Key Initiatives – Window Furnishings
Key Initiatives – Window Furnishings Addressing & clearing non-performing ranges with major customer – Q1 Renaming ZONE Hardware branded Window Furnishings as ZONE Interiors Launching new on-trend Venetian blinds & colours - Q2 Launching a new Zone Interiors website with a selection tool in Q2
Slide 10: Key Initiatives – Website Relaunch
Key Initiatives – Website Relaunch Re-launching a single, integrated Gale Pacific website that: Engages with customers Supports the buying process Leverages the entire Gale range to build the brand Supports the future growth strategy at Gale
Slide 11: Australasia
Australasia A$ Million FY14 FY13 Variance Sales 79.9 76.9 +4% EBITDA 1.7 6.2 -73% EBITDA / Sales % 2.1% 8.1% Sales increased 4% to A$79.9m with growth in both Retail & Commercial channels Customer demand for GALE products showed positive signs in most markets with very strong Retail sales out perf
Slide 12: Australasia Transformation
Australasia Transformation Over the past 12 months we have… Implemented a new leadership team, simplified organisational design & built capability Stabilised the I.T. system & improved performance visibility across all functions Improved service levels across both Retail & Commercial channels Proact
Slide 13: Americas
Americas US$ Million FY14 FY13 Variance Sales 32.9 25.9 +27% EBITDA 3.0 2.1 +43% EBITDA / Sales % 9.1% 8.1% Sales increased 27% to US$32.9m Sales growth and expanded ranging achieved with most major accounts Significant sales increases from two major club retailers and on-line customers Strong
Slide 14: Middle East
Middle East US$ Million FY14 FY13 Variance Sales 11.1 9.7 +14% EBITDA 2.4 1.9 +26% EBITDA / Sales % 21.6% 19.6% Sales increased 14% to US$11.1m Increased sales in our two major markets of United Arab Emirates (+10%) and Saudi Arabia (+20%) Construction activity and demand for architectural fabrics r
Slide 15: China
China US$ Million FY14 FY13 Variance Sales – Other Overseas Markets 8.3 7.6 +9% Sales – Internal 38.9 28.6 +36% EBITDA 9.0 7.6 +18% EBITDA / Sales % 19.1% 21.0% Record volumes, increased efficiencies, improved yields and reduced waste levels contributed to a record result from the China operation. G
Slide 16: China
China Ongoing plant investment and modification has enabled us to increase capacity and flexibility to support business growth. Tonnes produced increased by more than 25% in FY14. Investment in a new tape extrusion line will increase capacity of the plant by approximately 1,000 tonnes per annum. Pol
Slide 17: Other Overseas Markets
Other Overseas Markets Sales increased 9% to US$8.3m Primary export markets (Japan & South Africa) grew as well as key commercial fabrics customers in Israel & Italy Sales in Europe declined year on year. A more direct distribution model has recently been implemented supported by the hire of a n
Slide 18: Outlook
Outlook Trading conditions are expected to remain largely consistent with the past year. Continued strong growth in the USA, Middle East and in International markets is expected. Australasian region to grow at an increasing rate whilst simultaneously executing its transformation plan - an intense fo
Slide 19: Outlook
Outlook Strong pipeline of innovative new products across both Retail & Commercial channels. A clear focus on innovation in our core. Key operational initiatives in place to improve working capital management and improve service levels, resulting in higher operating cash flows. High focus on effecti
Slide 20: Disclaimer
Disclaimer Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such statements relate to futur