Globe International Limited · ASX:GLB
Globe International — H1 FY2003 Earnings Presentation
10 slides from Globe International's earnings presentation, Mar 5, 2003
Slide 1: Half-Year Result 2003 Investor Presentation
Half-Year Result 2003 Investor Presentation 5 March 2003 Page 1
Slide 2: Half Year Result Unacceptable
Half Year Result Unacceptable “This result is clearly not acceptable. It has primarily occurred as a result of the challenges facing the US economy, a cyclical down-turn in the American core skate market and a failure of some of Globe core brands to maintain their previously high level of sales gr
Slide 3: Half Year Result Unacceptable
Half Year Result Unacceptable Globe International Limited Half Year Half Year Variance FY03 FY02 Sales Australasia 45,940 56,283 -18% International 21,166 19,398 9% Globe Nth America 48,153 21,017 129% Other Revenue 1,304 1,042 25% Total Revenue 116,563 97,740 19% EBITA Australasia 4,255 7,450 -43%
Slide 4: Divisional Review - Australasia
Divisional Review - Australasia Sales Review 60 56.3 Sales AUD$45.9, down 18% 52 50.7 50 45.9 EBITA AUD$4.3m, down 43% 39.7 40 EBITA margin 9%, down from 13% 30 Weak skate hardware and footwear 20 market 10 0 Outlook 2001 2002 2003 Continued brand and channel EBIT A opportunities & ratio
Slide 5: Divisional Review - North America
Divisional Review - North America Review Sales Sales AUD$48.2, up 129% 50 48.2 45.5 45 EBITA loss of AUD$0.9m 40 35 30 Globe footwear well below expectations 27.7 25 21 20 17.5 Kubic performance unacceptable 15 10 Provisioning of Mr Raggs receivable 5 0 2001 2002 2003 Outlook Invest in d
Slide 6: Divisional Review - International
Divisional Review - International Review Sales 25 24.6 Sales AUD $21.2, up 9% 21.5 21.2 20 19.4 EBITA AUD $2.5m, down 56% 15.8 15 EBITA margin 12%, down from 30% 10 Provisioning of Japanese and some European receivables significantly 5 impacted profit 0 2001 2002 2003 Outlook EBIT A Move t
Slide 7: Balance Sheet & Cashflow
Balance Sheet & Cashflow Balance sheet remains strong Net tangible assets of 18.5 cents per share First payment under deferred Kubic consideration due end June 2003 USD5.1m Net Operating cashflow of $6.2m in the first half Summary of key balance sheet items Dec 02 June 02 $M $M Working Capit
Slide 8: Kubic
Kubic Core USA skate market softened significantly over the period Significant reduction in hardware sales Shift towards lower priced products Core youth “kids” (6-13 year olds) oriented World Industries brand impacted by sharp purchasing declines Indications that market share has remained
Slide 9: Earnings Guidance
Earnings Guidance Pleasing start to second half from Australasian business Continued disappointment and uncertainty in US and European markets Significant internal change to result in potential one off costs Management do not expect an improvement in the second half relative to the first hal
Slide 10: Key Strategies
Key Strategies Ensure North America is immediately cash flow positive Invest in product design and development and demand creation (marketing spend) Continue brand channel optimisation rationalisation in Australia Re-establish a viable, maintainable International distribution system Immedi
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