Slide 1: Results for Year Ended 30 June 2013
For personal use only McPherson’s Limited Results for Year Ended 30 June 2013 20 August 2013 Paul Maguire – Managing Director Paul Witheridge – Chief Financial Officer 1
Slide 2: MCP Financial Results
MCP Financial Results For personal use only FY2013 results marginally below guidance Affected by $0.6m additional provision related to SKU rationalisation Comparable sales up 1% on FY2012 despite a difficult trading environment Acquisitions made over past 18 months are performing well Solid underlyi
Slide 3: MCP Financial Results
MCP Financial Results For personal use only Final dividend maintained at 7 cents per share fully franked Dividend Reinvestment Plan (DRP) retained Consistent approach to FX hedging Current debt facility in place until December 2015 3
Slide 4: Strategy Update
Strategy For personal use only Update Paul Maguire 4
Slide 5: Category Performance Summary
Category Performance Summary For personal use only % of Total % Growth** Reasons Outlook Revenue* Mix of new Housewares 28% 0% lines and Steady deletions Significant Home 12% n/a n/a growth from Appliances new products New product Growth Health & 28% 19%*** development & through new Beauty acquisiti
Slide 6: What has challenged the business?
What has challenged the business? For personal use only USD product cost increases ex Asia Price increases in retail not possible Increased support required by customers in a subdued retail environment Private label emphasis in some retail chains Continued local cost inflation Fewer opportunities fo
Slide 7: Things we have achieved so far...
Things we have achieved so far... For personal use only De-merged McPherson’s Printing Group Substantially streamlined the business and positioned it for the next phase of growth Successfully integrated four EPS accretive acquisitions delivering scale, synergies & growth Upgraded systems and process
Slide 8: We have demonstrated the ability to...
We have demonstrated the ability to... For personal use only ... identify, acquire and successfully integrate other businesses ... develop and launch comprehensive new product ranges ... successfully implement strategy - Coles Supplier of the Year Award (GM Category) 8
Slide 9: What are we doing going forward?
What are we doing going forward? For personal use only Product range reduction in response to market conditions Efficiency The roll-out of the newly upgraded IT system across the Group ‘Right-sizing’ the business - overhead reductions in response to the above Productivity Re-setting the price struct
Slide 10: Outlook
For personal use only Outlook Paul Maguire 10
Slide 11: Outlook
Outlook For personal use only Trading conditions expected to remain challenging Strong pipeline of new products coming through Brands will continue to lead in the segments in which they compete Product range rationalisation will lead to significant overhead reductions Efficiency and productivity gai
Slide 12: Financial Performance Year Ended 30 June 2013
Appendix For personal use only McPherson’s Limited Financial Performance Year Ended 30 June 2013 Paul Witheridge Chief Financial Officer 12
Slide 13: Group Financial Summary for 2013
Group Financial Summary for 2013 Continuing Operations (excluding impairment of intangibles) For personal use only 12 Months to 12 Months to June June 2012 2013 ($A million) ($A million) Sales 276.2 299.2 8.3% Sales increase EBITDA 34.7 31.6 Depreciation & amortisation (2.7) (2.7) EBIT 32.0 28.9 9.7
Slide 14: Group Financial Summary for 2013 (Statutory)
Group Financial Summary for 2013 Statutory (including impairment of intangibles) For personal use only 12 Months to 12 Months to June June 2012 2013 ($A million) ($A million) NPBT Continuing operations excluding impairment of intangibles 26.0 22.3 Impairment of Intangibles - (50.0) Discontinued oper
Slide 15: Significant Non-Recurring Items
Significant Non-Recurring Items For personal use only The following significant items are included in statutory profit before tax: 12 Months to 12 Months to June 2012 June 2013 ($A million) ($A million) Contingent consideration write-back 0.4 3.5 Restructuring costs – redundancies and inventory relo
Slide 16: Overview of Group Balance Sheet
Overview of Group Balance Sheet Continuing Operations For personal use only As at 30 June As at 30 June 2012 2013 ($A million) ($A million) Inventories 52.9 67.3 Receivables 55.6 56.8 Payables (30.1) (38.9) Net working capital 78.4 85.2 Property, plant & equipment 7.1 7.7 $50.0m impairment Intangibl
Slide 17: Group Operating Cashflow
Group Operating Cashflow Continuing Operations For personal use only 12 Months to 12 Months to June 2012 June 2013 ($A million) ($A million) Cash flows from operations Receipts from customers (inclusive of GST) 301.9 334.5 Payments to suppliers and employees (inclusive of GST) (270.0) (306.9) Net ca
Slide 18: Group Operating Cashflow
Group Operating Cashflow Continuing Operations For personal use only 12 Months 12 Months to June 2012 to June 2013 ($A million) ($A million) Cash flows from investing activities Payments for purchase of property, plant and equipment (2.4) (2.4) Capex in line with depreciation 2013 – HAPL $22.7m; Foo
Slide 19: Capital Management
Capital Management For personal use only The Group’s current syndicated debt facility comprises: – $77m in core term debt amortising $4m each 6 months; – $35m in working capital finance inclusive of $8m seasonal component; – $15m acquisition facility. The core and acquisition debt facilities exp
Slide 20: FX Hedging (Australia)
FX Hedging (Australia) For personal use only Comprehensive FX hedging program in place using Options, Forward Exchange Contracts (FECs) and Collars: – Options - Protect downside with premium cost but allow upside benefit – FECs - Fixed rate with lost forward points – Collar - Improved downside pro
Slide 21: Non-IFRS measures and Disclaimer
Non-IFRS measures The non-IFRS measures used by the Company are relevant because they are consistent with measures used internally by management to assess the operating performance of the business. The non-IFRS measures have not been subject to audit or review. For personal use only Disclaimer State