Prestal Holdings Limited · ASX:PTL
Prestal — Pental — FY2017 Earnings Presentation
36 slides from Prestal's earnings presentation, Aug 21, 2017
Slide 1: FY17 Investor Presentation
For personal use only FY17 Investor Presentation Year ended (53 weeks) 2 July 2017 Charlie McLeish Albert Zago Chief Executive Officer Chief Financial Officer
Slide 2: Agenda
For personal use only Agenda About Pental Financial Overview Operational Update Outlook Appendix Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 2
Slide 3: About Pental
For personal use only About Pental Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 3
Slide 4: About Pental
About Pental For personal use only • Household products that are Pental brands efficient and quality-tested to deliver quality and help families live better. expertise in home and • Wherever you go in an hygiene products for Australian home today it would be odd not to find at today’s lifestyle. lea
Slide 5: Who We Are
Who We Are For personal use only Personal Household Laundry Oral Private Fire Dishwash Care Cleaning Care Care Label Personal Care (New Zealand) Laundry Care Fire Needs (New Zealand) Household Cleaning Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 5
Slide 6: Pental People
Pental People For personal use only Board of Directors & Company Secretary Peter Robinson Mel Sutton John Rishworth John Etherington Kimberlee Wells Oliver Carton Non Executive Non Executive Non Executive Non Executive Non Executive Company Secretary Independent Chairman Vice Chairman Independent Di
Slide 7: Our Business
Our Business For personal use only Pental Limited (ASX:PTL) Market Cap: $81 Million(1) Asia 1% Established 63 years ago Headquartered in Melbourne Manufacturing facilities • Shepparton – 90% of products New - Soap plant Zealand - Bleach plant 18% - Liquids and bulk liquids plant - Firelighters plant
Slide 8: Our Strategic Focus
Our Strategic Focus For personal use only CREATE A SOLID PLATFORM FOR GROWTH: DRIVE YEAR ON Nail the basics: Safety, People YEAR REAL Engagement, Environment, PRODUCTIVITY Quality & Customer Service SAVINGS Install cost effective high performance capability OUR BRANDS DRIVE INNOVATION NEW CHANNELS B
Slide 9: Financial Overview
For personal use only Financial Overview Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 9
Slide 10: FY17 in Review
FY17 in Review FY17 in Review For personal use only 7.4% Net Sales up 10.1% Underlying EBITDA 28.7% Manufacturing Labour (net recoveries) down on 9.1% (Gross Sales up 7.0%) up to $11.9m increased volume produced $1.8m 3.2% Underlying $1.1m Asia sales growing steady Profit Delivery Projects EBIT up t
Slide 11: Key Financial Results
Key Financial Results For personal use only $’000 FY17 FY16 Change % o Australia gross sales up 7.7% (Net Sales up 6.3%) Gross Sales (GSV) 117,660 109,980 7,680 7.0% o New Zealand gross sales down 1.3% (net Sales up 4.6%) Net Sales 85,124 79,223 5,891 7.4% o Gross sales into Asia $1.8m HY1: $0.66m &
Slide 12: Financial Overview
Financial Overview For personal use only • Aust. Gross Manufacturing Labour sales up 7.7% (after recoveries) • NZ gross sales down 28.7% Offset by down 4.6% (or Continuous Improvement • Outsourced Customer 2.1% in NZD) Engineer, Sales support for Service • Asia export new channels & manning Addition
Slide 13: Working Capital + Balance Sheet
Working Capital + Balance Sheet For personal use only Key Balance Sheet Items $’000 FY17 FY16 Net cash position of $11.7m o Nil debt Cash 11,660 12,335 o ~$7.4m to be utilised to repurchase Shepparton Net assets 84,960 83,177 property – settlement occurred on 2 August 2017 Net debt / equity o Major
Slide 14: Cashflow
Cashflow For personal use only $’000 FY17 FY 16 Change Cash from operating profit after tax 9,259 8,264 995 Decrease/(increase) in working capital & other (812) 857 (1,669) Increase/(decrease) in net tax liability (1,832) 2,138 (3,970) Cash flow from operating activities 6,615 11,259 (4,644) Capital
Slide 15: Operational Update
For personal use only Operational Update Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 15
Slide 16: FY17 Operational Scorecard
FY17 Operational Scorecard For personal use only WIP Living Our Values: Eliminate low value Safety activities & drive DIFOT Customers costs out Now back Innovation On track and on track People continues to be Quality a key focus Production Lines Capital Preventative Efficiency Work Maintenance Progr
Slide 17: Growing our Brands
Growing our Brands Strong Growth: For personal use only White King 6.3% Toilet Cleaner 11.9% White King Soakers continue to grow strongly in Household 5.9% Woolworths through the implementation of a new key pricing strategy 24.3% growth *Source: Aztec Scan data, Value, MAT to 28/5/2017 Manufactured
Slide 18: Innovation White King Bleach Free
Innovation White King Bleach Free For personal use only Pental venture into non-bleach liquids with the launch of two new products Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 18
Slide 19: White King Original…and the Best
White King Original…and the Best For personal use only Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 19
Slide 20: Firelighters…best performing Fire brands
Firelighters…best performing Fire brands* For personal use only NEW Eco Little Lucifer Fire Sticks re-positioned 12 Pack to target the ‘Foodie’ trend Pental is the one and only firelighter manufacturer in Australia Little Lucifer and Jiffy are best performing fire brands in the grocery channel* *Sou
Slide 21: Velvet Heritage Soap (Export)
Velvet Heritage Soap (Export) For personal use only Celebrating our Heritage since 1900 Pental launch 3 new products into China promoting our brand heritage. Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 21
Slide 22: The Australian Country Life Soap Bars
The Australian Country Life Soap Bars For personal use only All natural ingredients From the farm to the supermarket shelf v No other bar soap can claim to be locally and ethically made with 100% Australian ingredients – by an Australian owned company – for Australians for over 60 years. Manufacture
Slide 23: Investing in New Zealand - Sunlight
Investing in New Zealand - Sunlight For personal use only Growing profitable sales through New Sunlight 2 Litre product differentiation Dishwashing Liquid Sunlight has maintained it’s strong position within the highly competitive NZ Manual Dish Wash Category and now leveraging of the brand to move i
Slide 24: Investing in New Zealand - Janola
Investing in New Zealand - Janola For personal use only As one of New Zealand’s most trusted brands, Janola continues to grow its reach within New Zealand households with the launch of Mould & Scum Trigger Spray and In-bowl Toilet Hangers Manufactured locally for Australia, New Zealand and Beyond –
Slide 25: Sponsorship – Western Bulldogs
Sponsorship – Western Bulldogs For personal use only White King’s loudest fan Western Bulldogs • Bulldogs cumulative audiences ranked #1 in AFL (almost double club average of 4.95 million) • Position as reigning AFL Premiers means more live broadcast of Bulldogs games on free-to-air TV • Cumulative
Slide 26: Sponsorship – Breast Cancer Foundation
Sponsorship – Breast Cancer Foundation For personal use only • 3-year partnership with NBCR • Help reach the goal of zero deaths from breast cancer by 2030 • Proceeds of Velvet product sales will be donated to NBCF – Total $300,00 Manufactured locally for Australia, New Zealand and Beyond – FY17 Inv
Slide 27: Shepparton's Premier Business Awards
Shepparton’s Premier Business Awards For personal use only Pental and White King are proudly sponsoring Shepparton’s premier Business Awards in 2018 and 2019. The Awards celebrates 23 years of business awards’ success in the community, with 100+ nominees per annum. The growth of the Business Awards
Slide 28: Asia Project
Asia Project For personal use only Growing our presence in China & beyond: • Gross sales into Asia $1.8m ( HY1: $0.66m & HY2: $1.14m) • First container sent to Vietnam in June 2017 Creating a solid platform for Growth: • Developed Chinese contract manufacturing opportunities & exporting! • Direct re
Slide 29: Geographically widening our reach
Geographically widening our reach For personal use only Regions o Northern China o Central China o Eastern China o Southern China o Western provinces Distribution channels • Bricks & Mortar • E-commerce Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 29
Slide 30: Growing our brands online
Growing our brands online For personal use only E-Commerce: Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 30
Slide 31: New Domestic Channel
New Domestic Channel For personal use only New range of industrial-sized cleaning products: 5 to 15 litres Long-term expansion objective into new channels with our power brands Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 31
Slide 32: Outlook
For personal use only Outlook Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 32
Slide 33: Our Strategic Focus: Outlook
Our Strategic Focus Outlook For personal use only MANUFACTURING DRIVE PROFITABLE CONTINUOUS SALES GROWTH IN IMPROVEMENT KEY CHANNELS • Australia and NZ FMCG • Reduce unplanned • Private Label stoppages • Pharmacy • Drive Out costs • Industrial, Commercial, Foodservice • DIFOT BRANDS & DEVELOPMENT OF
Slide 34: Appendix
For personal use only Appendix Manufactured locally for Australia, New Zealand and Beyond – FY17 Investor Presentation 34
Slide 35: Appendix
Appendix For personal use only $’000 FY 17 FY 16 % Change Gross sales (GSV) 117,660 109,980 7.0% Trade spend (32,536) (30,747) 5.8% Net Sales 85,124 79,233 7.4% Raw materials, consumables & change in inventory (44,625) (41,294) 8.1% Freight out & distribution (6,373) (6,557) -2.8% Employee expenses
Slide 36: Thank You
For personal use only You Thank