Prestal Holdings Limited · ASX:PTL
Prestal — Pental — Shareholder Meeting (November 2013)
23 slides from Prestal's shareholder meeting presentation, Nov 21, 2013
Slide 1: AGM Presentation 2013
For personal use only AGM Presentation 2013
Slide 2: FY13 Highlights
FY 13 Highlights For personal use only • Consolidated NPAT $1.9m vs FY12 NLAT $61.4m • Refocus Consumer Products Business – Underlying EBIT up 93.2% to $8.5m (ConPnuing OperaPons) – Rename to Pental Limited • Specialty Chemicals Business closed February 2013 – NLAT $0.3m vs FY12 NLAT $9.5m (DisconPn
Slide 3: Financial Headlines
Financial Headlines For personal use only Consolidated Income Statement $ m FY 13 FY 12 % Change Key Points Gross Sales Revenue (2) 107.9 111.3 -‐3.0% •ConPnuing operaPons -‐ Consumer EBITDA -‐ underlying (1) 9.6 5.3 80.1% Products Business – refer detailed P&L EBIT -‐ underlying (1) 8.5 4.4 93.
Slide 4: Improved Underlying Result - Continuing Operations
Improved Underlying Result ConPnuing OperaPons For personal use only
Slide 5: Consumer Products
Consumer Products For personal use only Consumer Products ($m) FY 13 FY 12 % Change Key Points • Sales down 3% as strategic decision not to Gross Sales 107.9 111.3 -‐3.0% tender for certain business and take part in Trade rebates and discounts (28.8) (29.9) -‐3.5% supplier funded promoPons that re
Slide 6: Capital Management
Capital Management For personal use only $ 'million Change to Net Debt Position 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Net Debt 30 June Repayment Debt forgiveness Receivable finance Borrowing costs Increase in cash at Net debt 30 June 2012 loan written off bank 2013 59.7 (42.0) (10.0) 1.1 1.2 (1.8) 8.2 G
Slide 7: Reduced Interest Cost
Reduced Interest Cost For personal use only $ m FY 13 FY 12 $ Change Key Points Net Debt (excl. borrowing costs) 8.2 60.9 -‐52.7 Gearing -‐ Net borrowings/equity 13.2% 139.7% •Interest rate hedge of $42.5 million expires on 7 February 2014 EBITDA -‐ underlying (1) (2) 9.6 5.3 • Cash interest cost
Slide 8: Specialty Chemicals
Specialty Chemicals For personal use only Specialty Chemicals ($ m) FY 13 FY 12 % Change Key ObservaOons LBIT (1.8) (2.3) +21.7 • Export markets conPnued to deteriorate Significant items subsequent to closure announcement -‐ Employee Restructure (8.2) -‐ -‐ Other Closure Costs (5.2) -‐ • Significa
Slide 9: Balance Sheet
Balance Sheet For personal use only Key ObservaOons •Successful equity raising of net $18.5m •ReducPon in working capital: $ m FY 13 FY 12 Ø closure of Specialty Chemicals business Net Assets 62.1 43.6 Ø improved working capital management of Consumer Products business Net Debt 8.2 60.9 •Core borr
Slide 10: Cash Flow
Cash Flow For personal use only Consolidated FY 13 FY 12 Key Points $ m Cash in/(out) flow from operaPng acPviPes (1) (2.9) 2.0 • Capital expenditure included: Ø Costs to date of $1.8m for the Capital expenditure (2.4) (0.9) relocaPon of the Bleach plant (Total project cost -‐ $4.6m) Proceeds from
Slide 11: Loyalty Options
Loyalty OpPons For personal use only • February 2013 Prospectus: 1 OpPon for every 4 Shares • Exercise period: 12 March 2013 – 11 September 2014 (expiry Date) • Exercise price $0.02 • If exercised by 29 November 2013 – 1 Piggy back opPon will be granted • Proceeds from early exercise of Loyalty OpPo
Slide 12: Piggy Back Options
Piggy Back OpPons For personal use only • 1 Piggy Back OpPon for each Loyalty OpPon exercised by ParPcipaPng Loyalty OpPon Holders • Exercise Date: 5.00 pm (Melbourne Pme) on 29 November 2013 • Exercise period: 6 December 2013 – 6 June 2015 (expiry date) • Exercise price $0.03 • The funds raised fro
Slide 13: Pental Operations Review
Pental OperaPons Review For personal use only Charlie McLeish Sales MarkePng ProducPon Supply Chain 13
Slide 14: Market Share
Market Share For personal use only BLEACH WOOL WASH BAR SOAPS Total Monte 4% 1% 0% 0% Bianco Bleach 6% Unilever 11% 9% 9% Total White King Colgate Bleach 34% Palmolive Total Coles 12% Smart Buy Other Mfrs 80% Bleach 15% 19% Total Homebrand Pental Bleach Products P/L 12 .6% r a nds: ta l b Pen DISHWA
Slide 15: New Product Development & Product Improvements
New Product Development & Product Improvements For personal use only Brands with imminent launches! Brand Focus
Slide 16: Brand/Product/Strategies
Brand/Product/Strategies For personal use only • Highlight “Made in Country Australia” & “Australian Owned” on all packaging • Re-‐launch with stronger/modern packaging that stands out on shelf • Change the White King Logo from a Banner to a Shield ProtecPng Since 1952 • Extend White King into the
Slide 17: Manufacturing & Supply Chain
Manufacturing & Supply Chain For personal use only • Number One Priority is Safety in the Work Place at Shepparton Manufacturing Facility • Focus on training all team members to be best pracPce employees • Recruit the best people available to build a skilled producPon team • Work with the Unions to
Slide 18: Focus on Business Risks
Focus on Business Risks For personal use only • CompePPon Ø Build on strong product innovaPon Ø Tightly manage manufacturing costs to focus on low product cost • Product Sourcing Ø OpPmise benefits from sourcing arrangements Ø Focus on made in Australia • Supply chain Ø Ongoing cost review with
Slide 19: Strategic Initiatives
Strategic IniPaPves For personal use only IniPaPves to improve business performance include: • Improve manufacturing producPvity and efficiencies • Focus on being a low cost producer • New product development to enhance Customer and Brand Strategies • ConPnue to develop new Sales Channels • ConPnue to
Slide 20: Outlook
Outlook For personal use only • FMCG compePPve market condiPons to conPnue • The recent restructure has placed the Business in a much stronger posiPon • Maximise the leverage from Australian made and owned status • Strong pipeline of new products • Capital investment required to support new products
Slide 21: Appendix: Capital Investment
Appendix: Capital Investment For personal use only
Slide 22: Appendix: Significant Items (Consumer Products)
Appendix: Significant Items (Consumer Products (1) ) For personal use only Significant Items (1) ($m) FY 13 FY 12 (Before tax) Net Reversal/(Impairment) -‐ Brand Name 0.14 (0.5) Impairment -‐PP&E (0.1) (1.5) RecPficaPon Works -‐ Shepparton (0.1) -‐ Loss on sale of property (0.07) -‐ Business revie
Slide 23: Disclaimer
Disclaimer For personal use only The material in this presentaPon is a summary of the results of Pental Limited (Pental) for the 12 months ended 30 June 2013 and an update on Pental’s acPviPes and is current at the date of preparaPon, September 2013. Further details are provided in the Company’s ful