Slide 1: Globe International Ltd. 2002 Financial Results
Slide 2: Summary of Performance
SUMMARY OF PERFORMANCE Delivered solid financial result Exceeded prospectus earnings Expanded business model via acquisition Confident of outlook Strong balance sheet position supports ongoing growth Integration continuing well
Slide 3: Highlights
HIGHLIGHTS Net Sales of $217m, 24.5% over pro-forma 2001 EBITDA of $43.0m, 79.2% over pro-forma 2001 EBITDA margin of 19.8% NPAT before amortisation of $28.6m, 74% over pro- forma 2001 ROE of 21% improvement from 8.9% Final dividend of 2.5 cents (fully franked) giving full year dividend of 3.8 cents
Slide 4: Financial Summary
FINANCIAL SUMMARY Sales (aup mith 2001 2002 % Growth Prospectus (Pro-forma) #Australasia O1.7 106.4 16% 108.7 w#Nth America 45.2 66.7 47% 77.0 zinternational 37.3 43.9 18% 48.6 Total Sales 174.2 217.0 24% 234.3 EBITDA 24.0 43.0 79% 42.1 EBITDA MARGIN 13.8% 19.8% 17.9% EBITA 23.1 41.4 79% 41.1 EBITA
Slide 5: Globe Group EBITA
GLOBE GROUP EBITA (AUD mill) 46, 404 354 304 28+ 204 16-| 104 2000 2001 +41% +79% 2002 20.00% 5 48.00% 4 16.00% 5 14.00% 4 12.00% 10.00% 4 8.00% + 6.00% 4 4.00% 5 2.00% 0.00% + 19% 2006 2001 2002 Key focus was margin growth
Slide 6: Sales/EBITA - 1st & 2nd Half
SALES/EBITA - 15T & 28> HALF {AUD mill} (AUD mith) 14, 605 124 50- 10- 405 84 304 64 207 4 104 2 0 Australasia 5 Australasia : NthAmerica International Nth America International
Slide 7: EBITA — Divisional Analysis
EBITA — DIVISIONAL ANALYSIS 30.00% $12.8m International $12.8m Nth America 25.00% 20.00% 15.00%] 10.00% + 5.00% $15.8m 0.00% Australasia Australasia Nth America International The major growth divisions are delivering higher margins
Slide 8: AUD/USD Exchange Rate Impact
AUD/USD EXCHANGE RATE IMPACT Prospectus Actual Adjusted Actual* (using prospectus exchange rate) {AUD mil) EBITA 414 44.4 42.3 42.4 42.24 425 * Converts actual USD revenue EBITA A184 at the exchange rate per Prospectus 416 assumption (52.5), allowing a like for aia like performance comparison agains
Slide 9: Divisional Review - Australasia
DIVISIONAL REVIEW - AUSTRALASIA Review w Sales AUD $106.4m + 16% w EBITA AUD 315.8m +102% (AUD mill) 204 +16% w EBITA margin 14.8% up from 8.5% 004 a Continued strong growth of proprietary brands Globe, M-One-11, Mooks and sod Gallaz a Operational improvements - modern 60 warehouse facilities, new E
Slide 10: Divisional Review - Nth America
DIVISIONAL REVIEW - NTH AMERICA (USD mill) 405 1999 2000 +55% 2001 + 47% 2002 Review Sales USD 35.5m + 47% EBITA USD $7.1m + 243% Maintenance of margin disciplines during extremely difficult retail environment period post 9/11 Successful opening of Pacific Sunwear account Outlook B Leveraging of the
Slide 11: Divisional Review - International
DIVISIONAL REVIEW - INTERNATIONAL (USD mill) as4 1999 2000 +40% 2001 +18% 2002 Review Sales USD 23.5m + 18% EBITA USD $6.9m (EBITA margin 29%) Commenced distribution in Japan and performance exceeding expectations Outlook w Establishing a stronger team to maximise growth opportunities Combined Globe
Slide 12: Bal Sheet / Cashflow - Highlights
BAL SHEET / CASHFLOW- HIGHLIGHTS Balance sheet strengthened during year Inventories down 6.4% despite 41.5% increase in sales Net tangible assets grew by over 30% yoy Current assets represent over 90% of total tangible assets Net assets per share $0.325 up from $0.30 Solid cash flow generation $M Ne
Slide 13: Kubic Acquisition
KUBIC ACQUISITION Globe has purchased Kubic Marketing Inc. (“Kubic”), one of the world’s leading marketer of hardware in the board sports market w Core products include skateboard decks, wheels and trucks, snowboards, t- shirts, knits and accessories, with Kubic more recently expanding into other ap
Slide 14: Strategy, Markets & Outlook
STRATEGY, MARKETS & OUTLOOK Margins wm Targeting of high margin business C) Exploiting economies of scale Brand Positioning wm Maintaining strong position in both surf and skate markets wm Globe footwear ranked in the top 3 in the surf and board riding channels (Wedbush Morgan Securities Survey ~ Ju
Slide 15: Industry Outlook
INDUSTRY OUTLOOK Snow, skate, surf and w ake boarding, as well as bike sports like BMK (bicycle motocross) are seeing increased participation rates in the U.S. fn 2000 11.7 milion Americans participated in skateboarding. The number is expected to reach 15 million by 2005. 16.0 14.0 12.0 Bis - # <B~
Slide 16: Business Description
BUSINESS DESCRIPTION Globe is a multi branded international operation in the surf and skate segment of the action sports market, supplying primarily apparel, footwear and hardware to retailers and distributors Key brands w Globe @ Gallaz i Mooks ® Blind w Darkstar Barnsry Markets » North America a E