Slide 1: 2003 Results - Investor Presentation
2003 Results - Investor Presentation 29 August 2003
Slide 2: 2003 Full Year Overview
2003 Full Year Overview a Pre Amortisation pre tax loss - $8.8m in line with market guidance (pre amortisation after tax loss $3.7m) a Kubic Intangibles written-off ($51.5m) a Net Cash inflow from Operations $24.4m @ Nth American re-structuring complete — all expensed in the second half > (40% cut f
Slide 3: Full Year Summary
Full Year Summary Full Year Full Year Variance FY03 FY02 Sales Australasia 90,181 106,430 (16, 249) International 24,298 43,978 (19,680) Globe Nth America 29,314 66,570 (37,259) Kubic * 60,758 - 80,754) Total Sales 204,548 216,978 (12,430) EBITDA Australasia 7,341 16,949 (9,608) International 2,546
Slide 4: Sales by Half
Sales by Half First Half Second Half Full Year FY03 FY03 FY03 Sales Australasia 45,165 45,016 90,181 International 14,300. 9,998 24,298) Globe Nth America 14,599 14,712 29,311 Kubic Nth America 34,329 12,836 47,165) Kubic Rest of World 6,866 6,727 13,593 Total Sales 115,259 89,289 204,548 Page 4
Slide 5: Normalised EBITDA Summary
Normalised EBITDA Summary Total Australasia North America International FY03) EBITDA FY03 7,344 (12,886) 2,546 (2,999) Add back Restructuring costs 179 3,669 3,848] One-off inventory write downs 1,597 2,583 4,180 Other significant one-offs 651 651 Normalised EBITDA 9,117 (5,983) 2,546 5,680) Fvo2 16
Slide 6: Divisional Review - Australasia
Divisional Review - Australasia Sales SCANWAHAN AD 2001 2002 2003 HB ot* Hair Woz nat EBITDA ae 2001 2002 2003 Half [ED 2°¢ Halt Review a Sales AUD$90.2m down 15.4% a EBITDA AUD$7.3m impacted by $1.6m of inventory write downs @ Gross Margins maintained Actions e Reduced cost structure by 15% without
Slide 7: Divisional Review - North America
Divisional Review - North America 60, 50, 40, 307 Sales 2001 2002 2003 Hotta Ho 2 nair EBITDA 2001 2002 2003 Review Globe sales down 56% - A$29.3m > 1Half A$ 14.6m > 204 Half A$ 14.7m Kubic sales 45% below expectations — A$ 60.8m > 1%Half A$ 41.2m > 2° Half A$ 19.6m One-off charges booked A$8.6m Exc
Slide 8: Divisional Review - North America
Divisional Review - North America Actions Problem inventory dealt with in 2" half eroding margins by A$ 3.8m (A$2.6m inventory write downs & A$1.2m in discounts) Headcount reduced by 60% — mainly in the 2"¢ half from non-core activities Operational cost structures aligned with business requirement d
Slide 9: Divisional Review - International
Divisional Review - International Sales 2001 2002 2003 Hi 45t Half 2nd Half il EBITDA f. 2001 1° Hair 2002 2003 Hor nals Review r] Sales A$24.3 down 45% a EBITDA A$2.5m, down 81% a EBITDA margin 11%, down from 28% a Write off of Japanese and some European receivables significantly impacted profit by
Slide 10: Balance Sheet & Cash flow
Balance Sheet & Cash flow Ct Balance sheet remains strong i Net tangible assets of 15.5 cents per share e Kubic debt repayment schedule renegotiated to extend a further 18 months to January 2006 a Neh Operating cash flow of A$24.4m for the year (A$18.2m generated in the 2nd a Kubic Goodwill and Trad
Slide 11: Summary of Actions Taken
Summary of Actions Taken mw Restructured business model in North America Closure of non-core manufacturing & processing activities Global information technology systems implemented Reduced cost structure by 40% Reduced headcount by 60% (Salaries & wages by 55%) Breakeven sales activity level manifes
Slide 12: FY04 Sales & Marketing Initiatives
FY04 Sales & Marketing Initiatives m Established a global marketing team for global brands m Renewed focus on expanding marketing initiatives across all brands m New fresh & focussed marketing campaign for Globe footwear --. g Expansion of Globe footwear distribution in North America within traditio
Slide 13: FY04 Sales & Marketing Initiatives
FY04 Sales & Marketing Initiatives a Establishment of regional marketing, logistics and administration base in Europe mw Introduction of new exciting skate hardware brand with key riders and use of innovative technology @ Review of brand licensing opportunities # An expanded apparel offering in key