Gale Pacific Limited · ASX:GAP
Gale Pacific — Shareholder Meeting (October 2011)
19 slides from Gale Pacific's shareholder meeting presentation, Oct 28, 2011
Slide 1: Chief Executive Officer & Managing Director's Address
For personal use only CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR’S ADDRESS Peter McDonald
Slide 2: FY11 Results – Key Points
FY11 Results – Key Points For personal use only • NPAT up 18% to $7.1 million. • Earnings per share of 2.4 cents. Return on invested capital (EBIT/shareholders funds plus net debt) improved to 13.5% in FY11 from 12.2% in FY10. • Net Debt of $5.7 million. Net debt / equity ratio 8%. • Full year divid
Slide 3: FY11 Results – Key Points
FY11 Results – Key Points For personal use only • Sales down 3% to $95.6 million – poor summer, wet weather and flooding across many parts of the eastern states of Australia had a negative impact on sales of Coolaroo product. Consolidated sales also adversely impacted by the translation of foreign c
Slide 4: FY11 Results – Key Points
FY11 Results – Key Points For personal use only • Gale’s manufacturing facility in China is operating efficiently and has excess capacity. Significant efficiency gains made in the Australian manufacturing operation which contributed positively to the result. • Acquisition of Zone Hardware and Riva W
Slide 5: FY11 Review
FY11 Review For personal use only FY11 FY10 A$M’S A$M’S % Variance Sales 95.6 98.8 - 3% EBITDA 15.8 16.5 - 4% EBIT 9.9 9.3 + 6% NPAT 7.1 6.0 +18% Earnings per share - cents 2.4 2.1 +14% Dividends per share - cents 2.2 2.0 +10% Cash from operations 11.4 18.0 -37% Net cash on deposit/ (net debt) (5.7)
Slide 6: Operating Cash Flow
Operating Cash Flow For personal use only Capital Expenditure (4.0) (3.4) (1.0) (1.2) (0.6) (Gross) Dividends Paid - - - - (8.4)
Slide 7: Operating Cash Flow
Operating Cash Flow For personal use only • Operating cash generated of $11.4M for FY11. • Annual operating cash flow average of $11.8M per annum over last 5 years. • Operating cash flow down in FY11 due to higher inventory levels from poor summer conditions in Australia and higher tax payments. • L
Slide 8: Changes in Net Debt
Changes in Net Debt For personal use only $M’s
Slide 9: Debt Position
Debt Position For personal use only • Net debt at 30 June 2011 of $5.7 million. This low net debt position at year end was after paying out $8.4 million to shareholders in dividend payments and $11.2 million to fund acquisitions. • Net debt to equity at 8%. • Interest cover of 11.5 times (EBIT/inter
Slide 10: Regional Business Unit Results
Regional Business Unit Results For personal use only FY11 Sales FY11 EBITDA Asia Pacific Down 5% Down 2% 67.5M 9.1M Americas FY11 Sales FY11 EBITDA Up 3% Down 37% (US$’s) 19.3M 0.5M Middle East FY11 Sales FY11 EBITDA Up 18% Up 44% (US$’s) 6.4M 1.3M China FY11 EBITDA Up 16% (US$’s) * 5.0M * Commercia
Slide 11: Regional Results – Asia Pacific
Regional Results For personal use only • Asia Pacific (excluding China) – Sales decline of 5% due to mild and wet summer conditions on the east coast of Australia which had a negative impact on sales of Coolaroo product. Some price deflation has also occurred in Australia due to the strength of the
Slide 12: Regional Results – Americas
Regional Results Americas For personal use only • – Small but positive uplift in sales of 3% year on year in local currency. – Consumer confidence low and retail customers taking a cautious approach on seasonal programs and reducing inventory levels. – Regulatory changes in the window furnishings in
Slide 13: Regional Results – Middle East
Regional Results For personal use only • Middle East – Sales growth of 18% over the prior year in local currency. – Sales in Saudi Arabia increased 40% year on year. Year on year sales increases also achieved in United Arab Emirates, Kuwait and Qatar. – Shipped over 300,000 m2 of knitted shade fabri
Slide 14: Regional Results – China
Regional Results For personal use only • China – Excellent results have been achieved by our Chinese operation with EBITDA increasing by 16% year on year (US$700,000) to US$5 million. – Improved plant yields and reduced scrap rates have been maintained throughout the year as part of our ongoing cont
Slide 15: Regional Results – International
Regional Results For personal use only • International – Dedicated resources have been added to the team to drive international market development and expand opportunities with existing customers. – Entered the South African market in February 2011 by aligning with a distributor focussing exclusivel
Slide 16: Zone
Zone For personal use only Zone Hardware markets branded DIY home improvement products including pre- packaged interior and exterior window furnishings, folding doors, insect screening products, cable management products and bathroom and kitchen storage products.
Slide 17: Riva
Riva For personal use only Riva Window Fashions markets a broad range of custom made interior and exterior window furnishings. • Riva and Bunnings will offer a comprehensive range at competitive prices with a full product range displayed in over 180 Bunnings retail outlets. • Measure and quote, and
Slide 18: Outlook
Outlook For personal use only • Gale has a strong management team in place across all regions of the business. • Gale has an exciting range of branded products established in several world markets. • Gale has expanded the business strategy to offer a much broader range of branded industrial and cons
Slide 19: Outlook
Outlook For personal use only • Foreign exchange positions have been secured in the Australian business for the majority of FY12 US$ purchases at around parity. • Whilst trading conditions in many of our markets remains challenging, particularly in the retail market, FY12 is off to a positive start.