Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 2005 Earnings Presentation
21 slides from Gale Pacific's earnings presentation, Mar 3, 2005
Slide 1: Gale Pacific Limited Half Yearly Results Presentation March 2005
GALE PACIFIC LIMITED HALF YEARLY RESULTS PRESENTATION MARCH 2005
Slide 2: Introduction to Presentation by Gary Gale, Managing Director
INTRODUCTION TO PRESENTATION BY GARY GALE, MANAGING DIRECTOR ¢ In our AGM presentation we announced a shift of earnings from the 1* half of our financial year to the second half * Our individual trading operations in Europe, USA and Australia are all seasonal businesses that have up to 20-25% of the
Slide 3: Introduction to Presentation by Gary Gale, Managing Director con't
INTRODUCTION TO PRESENTATION BY GARY GALE, MANAGING DIRECTOR con’t ¢ Last year we purchased Jung in Europe early in our second half and its first half losses were not included in our 03/04 results. ¢ Sales in Australia were affected by a very poor summer weather season and also by DIY retailers sign
Slide 4: Sales Revenue Performance
SALES REVENUE PERFORMANCE The Australian, USA, Europe, New Zealand and Middle East sales exclude intercompany sales eliminated on consolidation Australia AUD USA USD Europe € China USD Middle East USD New Zealand NZD * Sales for China are eliminated on consolidation 33,060 2,856 8,220 4,798 * 986 50
Slide 5: Effect of Diversification Strategy: Proportion of total sales in each market
Proportion of total sales in each market EFFECT OF DIVERSIFICATION STRATEGY (External Revenue) 100% + 90% 4 80% 4 70% 4 60% 4 50% 4 40% 4 30% 4 20%4 10% + 2001 2002 2003 2004 6 months ending December 31 @ Australia O New Zealand @ USA & Germany @ Middle East m China
Slide 6: Half Year Results
HALF YEAR RESULTS ending 31°5* December 04 Sales (consolidated after eliminations) * $53.3m +37.8% EBIT $1.6m -72.4% NPAT $0.2m -94.0% Earnings Per Share (Fully Diluted) 0.36c -97.6% Dividends 3.5C (inline with last year) * Excludes intercompany sales eliminated on consolidation.
Slide 7: Major Cost Impact
MAJOR COST IMPACT DECEMBER 04 .VS. DECEMBER 03 EBIT NPAT Jung 1° Time First Half Impact -2.061m -1.302m USA Expansion of Operations -0.293m -0.307m Raw Material Cost Increase -1.686m -1.136m Australian Lower Sales Volume Impact -.567m_ = -0.382m Other Positive Net Impacts + 0.523m_+0.131m TOTAL CHAN
Slide 8: Australia
AUSTRALIA Very poor weather season. DIY retailers have had significant in-store inventory reduction during the period. Ramping commodity price increases (now passed on). Higher inventories due to lower sales, to be back in line by year end. Coolaroo ranging remains very solid with new opportunities
Slide 9: China
Sse, la oe ful uilt and fully qu
Slide 10: China con't
CHINA con't ¢ Additional land purchased for future growth. Driving down costs over whole group. ¢ New R&D facility delivered well on our European Range. 10
Slide 11: Europe
EUROPE New high quality management team at Gale Europe. Very solid base of contacts through Jung has delivered great Coolaroo customer base. Gale Europe has introduced Jung to new customers in Belgium, France and Holland. 450 stores for Coolaroo in Germany. 11
Slide 12: Europe
°~ EUROPE | ee f * 750 stores Europe wide: Ger Italy, Turkey, England, Auste France, Belgiur , Holland, Po and, the Czech 12
Slide 13: U.S.A
U S.A Growth continues at more rapid rate. Geographic coverage increasing into Canada, opportunities in Central and South America from USA base. Consolidation complete of Cal Shades and Coolaroo with significant logistic savings. Exterior window shades our most successful program with custom shades
Slide 14: Middle East
MIDDLE EAST * Great growth @ 52% —, in revenu e. SF . i ae ¢ Improved margins. ¢ Recent expansion into Saudi Arabia driving growth. * Base to be used to launch commercial fabrics into Europe. Sl say lll
Slide 15: New Zealand
NEW ZEALAND High quality and experienced management team. Integration has gone well. Customer meeting very positive for future growth of combined program (Gale Aust / China / NZ). Detailed market strategy to be completed in 60 days. Retail presence being worked on presently. 15
Slide 16: New Zealand con't
NEW ZEALAND con’t Cross-over net program to be expanded and exported. New export customers based on Gale global reach to be followed up over the next 6 months. Synergies in manufacturing and distribution in play. Good solid growth expected in 2006. 16
Slide 17: Research & Development
RESEARCH & DEVELOPMENT * BioClip: Success in new nets that accept reactive dyes. 500,000 produced. 2.5 million valued at $4 million by September 2006. ¢ Ventilation Ducting for underground mines commercialised; volumes expected to reach $6-8 million over several years. 17
Slide 18: Research & Development con't
RESEARCH & DEVELOPMENT con’t * Composite rigid tube used in concrete pouring currently 2 million per annum. ¢ Aquaspan: Five new proposed dams for next 12 months. * Water management projects now entering commercialisation. Awaiting confirmation of orders for over 90 kms of fluming and lay flat pipe
Slide 19: Medium Trends
MEDIUM TRENDS With new Aluminium and textile plant installed, substantial reduction in cost anticipated for 2006. European growth outside Germany to pass German Sales in 2006. 10 - 20% new business opportunity in direct indent program for 2006 at opening price points. Substantially lower cost of ope
Slide 20: Long Term Trends
LONG TERM TRENDS ¢ Global Warming UV damage to people & plants ¢ Water Conservation Evaporation & Water Quality 20
Slide 21: Long Term Trends con't
LONG TERM TRENDS con’t ¢ Organic Agricultural Products Passive barriers to birds, insects & severe weather * Cocooning The backyard is a major area of the home improvement spend 21