Slide 1: GLG Corp Ltd.
Slide 2: GLG Corp Ltd Results Half-Year Ended 31 December 2005
GLG Corp Ltd Results Half-Year Ended 31 December 2005 GK Soh - Chief Executive Officer Eu Mun Leong - Chief Financial Officer 6-7 March 2006
Slide 3: Doing Business in Post Quota Era
DOING BUSINESS IN POST QUOTA ERA @, Value-added service: Our Competitive Advantage - Product design and development - Speed of service - Global operations - Domestic US support services Quality, Compliance & On-time Delivery essential @, Price competitiveness a given
Slide 4: Key Financial Highlights
Key Financial Highlights In A$ million at a AUD/USD exchange rate of 0.73 (For illustration purposes only. The reporting currency of GLG is the US$) Proforma 31 Dec 31 Dec 2005 2004 % change Revenue A$148m A$147.8m 0.1% Net profit after tax A$7.02m A$5.91m 18.8% EPS AUD 8.53 cents AUD 7.35 cents +AU
Slide 5: Consolidated P&L Analysis
Consolidated P&L Analysis: Half-year ended 31 December 2005 In A$ million at a AUD/USD exchange rate of 0.73 Proforma (For iustration purposes only. The reporting currency of 31 Dec 31 Dec % 2005 2004 change A$ million A$ million Revenue 148.00 147.80 0.1% Cost of Sales (133.64) (134.07) (0.3)% Gros
Slide 6: Customers: US Retailers by Category
Jul - Dee 04 ist Half F¥04/05 Customers: US Retailers by Category OOTHERS SPECIALTY RETAILERS DEPARTMENT STORES MASS MERCHANTS Jan - Jun 05 2nd Half 05 FY04/05 Jul-Dec 05 41 st Half FY05/06
Slide 7: Profit & Loss Commentary
Profit & Loss Commentary Revenue - New capacity (Malaysia, Sri Lanka and Indonesia) replacing Fiji's production. - Other recurrent income (logistics) increased by A$0.48 million. we Gross margin - Rose slightly ® Costs - Low air freight expenses. - Only marginally higher administrative expenses - Hi
Slide 8: Balance Sheet Analysis: Summary
Balance Sheet Analysis: Summary Results: Half-year ended 31 December 2005 3 Dec 2005 30 Jun 2005 Variance In A$ mittion at a AUD/USD exchange rate of 0.73 A$ million AS million (For illustration purposes only. The reporting currency of GLG is the US$) CURRENT ASSETS Cash 6.14 2.77 121% Trade Receiva
Slide 9: Balance Sheet Commentary
Balance Sheet Commentary ,, Cash up: IPO proceeds. one. @, Trade receivable up: higher shipment just before half-year end. @, Advance, prepayments and other receivable down: IPO prepaid expenses ohne ~ taken to reserves. @. Inventory down: lower goods in transit. Interest bearing liabilities down: t
Slide 10: Balance Sheet Analysis: Liquidity Ratios
Balance Sheet Analysis: Liquidity Ratios Current Asset Ratios 31 Dec 2005 30 Jun 2005 Change Debtors turnover (days) 27 days 18 days 9 days Current Ratio (X) 1.78 x 0.71x 1.07 x Cash A$6.11 m A$2.77m +A$3.34m
Slide 11: Balance Sheet Analysis: Trade debtors
Balance Sheet Analysis: Trade debtors 50% to 60% of Trade debtors secured by Letters of Credit. we No doubtful debts required during review period.
Slide 12: Balance Sheet Analysis: Gearing Ratios
Balance Sheet Analysis: Gearing Ratios 31 Dec 2005 | 30 Jun 2005 Change Leverage Debt to Equity 0.67 x Not meaningful | Not meaningful Interest Coverage 8.96 x 9.13 x (0.17)x Total bank facilities available A$116m A$110 m 6% Average usage of bank facilities (%) 62% 66% (4)%
Slide 13: Cash Flow Statement
Cash Flow Statement Results: Half-year ended 31 December 2005 2005 2004 In AS million at a AUD/USD exchange rate of 0.73 A$m A$Sm (For illustration purposes only. The reporting currency of GLG is the US$) Receipts from customers 141,55 137.40 Payments to suppliers and employees (138.66) (143.41) Int
Slide 14: Cash Flow Commentary
Cash Flow Commentary @, Receipts did not include A$7.0 million shipments just before year end. @, Operating cash flow positive as a result of higher receipts from customers, lower payments of expenses and a tax refund from prior years. Net operating cash flow would have been A$9.5million if the larg
Slide 15: Outlook & Prospects
Slide 16: Sales Bookings and Shipments Update
Sales Bookings and Shipments Update Forecast FY06 A$286.96M ASM Jul-Sep Q1 Oct ~ Dec Q2 Jan - Mar Q3 Apr— Jun Q4 TOTAL Balance to book FY05 FY06 75.11 68.60 66.78 64.96 275.45 11.51 Remarks Bookings & shipments 100% complete Bookings & shipments 100% complete Bookings complete, shipment 62% Q4 booki
Slide 17: Planned production capacity expansion
Planned production capacity expansion will match future sales growth Sourcing for a 18-20% pa capacity growth for 2006 and 2007. De-emphasising higher cost production countries. Emphasising Cambodia, India and Indonesia. @, Drive Efficiency through - product line specialisation - lean manufacturing
Slide 18: Production Country Profile
Production Country Profile Cambodia, India, Indonesia etc China Malaysia, Sri Lanka Brunei, Guatemala, Singapore 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Slide 19: Marketing & Sales Strategies Updates
Marketing & Sales Strategies Updates 19 new customers, initial or test orders received from 8 new customers. New customers are Brand customers, specialty retailers and department stores. Strategy of pursuing Brand customers should impact FY07 particularly. FY07 strategy focuses on offshore marketing
Slide 20: New Brand Customers
New Brand Customers New Brand customers market share potential A$35million to A$40 million Carters Calvin Klein Levi’s Mccc Sportswear Russell Sara Lee Phillips-Van Heusen (PVH) Gear For Sports Columbia Sportswear /
Slide 21: Offshore Marketing/Sales offices more significant roles
Offshore Marketing/Sales offices more significant roles @, Hong Kong office positioned to service new customers, FYO7 revenue plan is Came US$19 million. Hong Kong office expanded for Sourcing, Sampling, and SCM. @, New York office strengthened for new business development, quick turn ~ business and
Slide 22: PD&D Organization & Strategy
PD&D Organization & Strategy Designers are assigned to be customer-focused. Sourcing co-ordinator added for quicker fabric and trims development. Stronger emphasis on embellishments — latest wash processes, hand- work, embroideries, printing. Tracking buyers’ design calendar for more proactive inter
Slide 23: Summary
Summary We continue to be optimistic on the overall business outlook and GLG Corp's prospects as we head into full year FY2006 and beyond. Based on current sales bookings and expected delivery schedules, we believe that our sales and profit forecast for the full year FY2006 will remain on track. Our
Slide 24: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation may contain statements regarding the business of GLG Corp Limited and its subsidiaries (Group’) that are of a forward looking nature and are therefore based on management's assumptions about future developments. Such forward looking sta
Slide 25: Thank You