Slide 1: Results for 6 months to 31 December 2009
For personal use only McPherson’s Limited Results for 6 months to 31 December 2009 Paul Maguire Managing Director 1
Slide 2: Financial summary for H1 2010
Financial summary for H1 2010 For personal use only 6 months to 6 months to Dec 2008 * Dec 2009 ($A million) ($A million) Sales 186.8 190.1 EBITDA 27.3 27.1 Depreciation & amortisation (2.8) (2.8) Earnings consistent EBIT 24.5 24.3 with pcp Interest (5.2) (4.2) Interest cover 5.8 times NPBT 19.3 20.
Slide 3: Balance sheet
Balance sheet For personal use only Dec 2008 Dec 2009 ($A million) ($A million) Fixed assets (including intangibles) 215.8 213.1 Improvement in working Net working capital 110.2 100.6 capital Other (48.7) (43.0) Favourably affected by the 277.3 270.7 operating result, capital raising and an increase
Slide 4: EBIT Breakdown
EBIT Breakdown For personal use only Dec 2008 Dec 2009 ($A million) ($A million) Printing 1.7 1.5 Consumer Products – Australia 21.0 21.4 – International 3.5 3.4 24.5 24.8 Corporate, etc (1.7) (2.0) Group EBIT 24.5 24.3 4
Slide 5: Printing: Financial summary
McPherson’s Printing: Financial summary For personal use only 6 months to 6 months to Dec 2008 Dec 2009 ($A million) ($A million) Sales 35.3 32.4 EBITDA (before equipment leases) 4.1 3.9 • Strong cash flow Equipment lease expense (0.9) (0.9) Depreciation / amortisation (1.5) (1.5) • Focus on cost co
Slide 6: Financial summary
McPherson’s Consumer Products: Financial summary For personal use only 6 months to 6 months to Dec 2008 Dec 2009 ($A million) ($A million) Sales 151.6 157.7 4% sales growth EBITDA 25.7 26.1 Depreciation / amortisation (1.2) (1.3) Earnings constrained by EBIT 24.5 24.8 hedging commitments EBITDA / sa
Slide 7: Trading commentary
McPherson’s Consumer Products: Trading commentary For personal use only • The economic outlook remains uncertain and a level of volatility exists in currency and material costs – the business continues to be managed accordingly • First half earnings were impacted by hedging commitments • Sales growt
Slide 8: Operations
McPherson’s Consumer Products: Operations For personal use only • Personnel – 624 (FTE) • Operations in Australia, New Zealand, Singapore and China • Trading in North America • Large, highly professional sourcing operation in China • Sophisticated logistics capability • Established relationships and
Slide 9: Strength through a multiplicity of categories, brands, products and channels
McPherson’s Consumer Products: Strength through a multiplicity of categories, brands, products and channels For personal use only 9
Slide 10: Housewares
McPherson’s Consumer Products: Housewares For personal use only All the products you need for food preparation and dining in your home or commercial business – bakeware, cookware, knives, kitchen gadgets, cutlery, dinnerware & glassware. 10
Slide 11: Personal Care
McPherson’s Consumer Products: Personal Care For personal use only All the products you need for beauty care, hair care and skin care. 11
Slide 12: Household Consumables
McPherson’s Consumer Products: Household Consumables For personal use only An extensive range of daily kitchen essentials – products for food preparation, food storage and the disposal of kitchen refuse. 12
Slide 13: Impulse Merchandising
McPherson’s Consumer Products: Impulse Merchandising For personal use only Clip Strip programs for Australia & New Zealand’s major chains and discount department stores 13
Slide 14: A period of transformation
McPherson’s Consumer Products: A period of transformation For personal use only Business improvement initiatives 14
Slide 15: Warehouse changes
McPherson’s Consumer Products: Warehouse changes For personal use only More effective distribution - i.e. the right products in the right places 15
Slide 16: Supply chain review
McPherson’s Consumer Products: Supply chain review For personal use only Supply chain management – a key competitive advantage Demand Supply Inbound Warehousing Distribution planning planning shipments End-to-end review to identify any constraints to providing the best possible service levels to cus
Slide 17: Strategic brand review
McPherson’s Consumer Products: Strategic brand review For personal use only A review is being done to ensure that the right brands are in the right channels and the right markets 17
Slide 18: Innovation program
McPherson’s Consumer Products: Innovation program For personal use only Product innovation – a key competitive advantage 18
Slide 19: Sourcing review
Sourcing review For personal use only Continued product profitability focus New product QA Packaging Sourcing Manufacturers development assessment design Quality control Purchasing Shipping Distribution Customer assessment Australia/New Zealand Hong Kong Asia 19
Slide 20: Group financial objectives
Group financial objectives For personal use only • Continue to improve profitability and EPS • Continue dividend payments • Drive EPS growth via McPherson’s Consumer Products - through organic growth, cost savings, operational efficiencies and bolt- on acquisitions 20
Slide 21: Conclusion
Conclusion For personal use only • Transformation on track • Gearing and interest cover significantly improved • Dividends resumed • Outlook FY 2010 – Guidance reiterated 21
Slide 22: Questions
For personal use only 22 Questions