Gale Pacific Limited · ASX:GAP
Gale Pacific — Shareholder Meeting (October 2013)
31 slides from Gale Pacific's shareholder meeting presentation, Oct 18, 2013
Slide 1: Gale Pacific Limited 2013 Annual General Meeting
For personal use only GALE PACIFIC LIMITED 2013 ANNUAL GENERAL MEETING 18 O C TO B E R 20 13
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS DAVID ALLMAN
Slide 3: CEO & Managing Director's Address
For personal use only CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR’S ADDRESS PETER MCDONALD
Slide 4: FY13 Results – Key Points
FY13 Results – Key Points For personal use only • Sales increased 9% to $120.0 million. • Sales increased by: • 8% in Australasia • 22% in the USA (US dollars) • 23% in the Middle East (US dollars). • International sales decreased by 27% (US Dollars) due to carry‐over inventory in the Japanese distr
Slide 5: FY13 Results – Key Points
FY13 Results – Key Points For personal use only • Diluted earnings per share of 3.0 cents. • Return on invested capital 14.9%. • Net Debt of $3.2 million. Net debt / equity ratio 3.8%. • Final dividend 1.35 cents franked to 80%. Full year dividend increased 8% to 2.65 cents per share. • Cash from op
Slide 6: FY13 Review
FY13 Review For personal use only FY13 FY12 FY11 A$M’S A$M’S % Variance A$M’S Sales 120.0 110.5 9% 95.6 EBITDA 18.0 18.0 0% 15.8 EBIT 12.9 12.5 4% 9.9 NPAT 9.1 8.5 7% 7.1 Earnings per share ‐ cents 3.00 2.86 5% 2.42 Dividends per share ‐ cents 2.65 2.45 8% 2.20 Cash from operations 11.5 9.5 21% 11.4
Slide 7: Earnings per Share and Dividends per Share
Earnings per Share and Dividends per Share For personal use only Cents
Slide 8: EBITDA / EBIT / NPAT (A$ Million)
EBITDA / EBIT / NPAT (A$ Million) For personal use only
Slide 9: Operating Cash Flow (A$ Million)
Operating Cash Flow (A$ Million) For personal use only FY07 FY08 FY09 FY10 FY11 FY12 FY13 Capital Expenditure (Gross) (4.0) (3.4) (1.0) (1.2) (0.6) (1.4) (1.5) Dividends Paid ‐ ‐ ‐ ‐ (8.4) (6.9) (7.6)
Slide 10: Cash Flow
Cash Flow For personal use only • Continuation of the strong annual cash flows from operations. Operating cash generated of $11.5 million for FY13, an increase of 21% from $9.5 million in FY12. • Low capital expenditure requirements due to plant capacity investments previously made. In addition, in
Slide 11: Debt Position
Debt Position For personal use only • Net debt at 30 June of $3.2 million compared to $4.1 million at 30 June 2012. This low net debt position at year end was after paying out $7.6 million to shareholders in dividend payments. • Net debt to equity at 3.8%. • Interest cover of 15.0 times (EBIT/intere
Slide 12: Changes in Net Debt (A$ Million)
Changes in Net Debt (A$ Million) For personal use only
Slide 13: Regional Business Unit Update
For personal use only Regional Business Unit Update
Slide 14: Australasia
Australasia For personal use only • Sales increased 8% over the prior year to A$76.9 million. • Part year contribution from the Highgrove Glass Solutions business acquired in December 2012. • Sales declined in Gale’s traditional Australasian markets due to weak consumer demand, price deflation, sign
Slide 15: Americas
Americas For personal use only • Sales increased 22% to US$25.9 million. • Strong sales growth and ranging achieved with most major accounts. • Good summer conditions aided the sale of outdoor shading and screening products in the USA and Canada. • Sales of commercial fabrics slightly down on record
Slide 16: Middle East
Middle East For personal use only • Sales increased 23% to US$9.7 million. • Increased sales in key markets of United Arab Emirates and Qatar. Solid sales again for Saudi market. • Construction activity has shown steady improvement in the region. • Increased sales and demand for Synthesis Commercial
Slide 17: China
China For personal use only • Strong, stable management and technical support teams. • Record volumes, increased efficiencies, improved yields and reduced waste levels contributed to our strongest result from the China operation to date. These efficiency gains have all helped offset higher wage rate
Slide 18: China
China For personal use only • Polymer prices have recorded a small increase over FY12. • Safety statistics (LTI’s) improved by 50% year on year. • Further improved our sourcing from third party Chinese suppliers to procure high quality and lower cost sourced products which continue to become an incr
Slide 19: International Markets
International Markets For personal use only • Sales decreased by 27% to US$7.6 million. • Reduction in sales to the Japanese market due to a carry over of seasonal inventory by our Japanese distributor following record sales in FY12. Gale products are sold through approximately 60 retail groups and
Slide 20: Regional Business Unit Results
Regional Business Unit Results For personal use only Australasia Americas Middle East International China (A$’s) (US$’s) (US$’s) (US$’s) (US$’s) FY13 Sales 76.9M 25.9M 9.7M 7.6M 28.6M* Up 8% Up 22% Up 23% Down 27% Up 24% Included in FY13 EBITDA 6.2M 2.1M 1.9M 7.6M** China Included in Down 21% Up 31%
Slide 21: Business Update & Outlook
Business Update & Outlook For personal use only • Economic conditions to remain below trend and trading conditions are expected to remain highly competitive in all markets. • Retail conditions in Australasia and the USA have been weak but are showing some signs of improving. Construction activity in
Slide 22: Business Update & Outlook
Business Update & Outlook For personal use only • The first quarter has been challenging: • Australian grain harvest not as strong as first anticipated, particularly in Queensland and northern NSW. • Increased operating costs continued into the first quarter in Australia as we implement operational
Slide 23: Business Update & Outlook
Business Update & Outlook For personal use only • We have faced some challenges in the first quarter that have us behind last year and where we had planned to be. In addition, our business phasing has changed with greater revenue and profits being more skewed to the second half as a result of strong
Slide 24: Disclaimer
Disclaimer For personal use only 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 stat
Slide 25: Business of the Meeting
For personal use only BUSINESS OF THE MEETING
Slide 26: Financial and Related Reports
Financial and Related Reports For personal use only To lay before the Annual General Meeting the Financial Report of the Company and its controlled entities and the related Directors’ and Auditor’s reports for the year ended 30 June 2013 for shareholders to receive and consider.
Slide 27: Adoption of Remuneration Report (Non Binding Vote)
Adoption of Remuneration Report (Non Binding Vote) For personal use only That the Remuneration Report of the Company and its controlled entities for the year ended 30 June 2013 be adopted. The vote on this item is advisory only and does not bind the Directors or the Company.
Slide 28: Proxies for resolution for the Adoption of the Remuneration Report
Proxies for resolution for the Adoption of the Remuneration Report For personal use only For: 97,049,878 Against: 790,994 Open‐Useable: 9,153,446 Open‐Conditional: 0 Open‐Unusable: 0 Abstain: 64,904 Excluded: 7,689,989 Total: 114,749,211
Slide 29: Re-Election of Director
Re‐Election of Director For personal use only Mr George Richards retires as a director of the Company by rotation in accordance with rule 7.1(f) of the constitution of the Company and, being eligible, offers himself for re‐election.
Slide 30: Proxies for resolution for the Re-election of Director
Proxies for resolution for the Re‐election of Director For personal use only For: 104,896,122 Against: 129,244 Open‐Useable: 9,153,446 Open‐Conditional: 0 Open‐Unusable: 0 Abstain: 570,399 Excluded: 0 Total: 114,749,211
Slide 31: Questions
For personal use only QUESTIONS