Slide 1: FY24 Results Presentation
For personal use only FY24 Results Presentation 29 August 2024
Slide 2: Disclaimer
Disclaimer The following provisions apply to this presentation. Please consider its contents carefully Currency of information Historical information The information contained in this presentation is current as at the date of this presentation or Past performance information in this presentation is
Slide 3: Agenda
For personal use only Brett Agenda 01 Introduction & Strategy Brett Charlton CHARLTON 02 Financial Results Mark Sherwin 03 1H25 Priorities & Summary Brett Charlton Mark SHERWIN 3
Slide 4: Introduction & Strategy
For personal use only Introduction & Strategy Brett Charlton
Slide 5: FY24 Results
FY24 Results Logical steps taken to reset the business; result reflects scale of transformation underway Results from continuing operations1 For personal use only Continuing Operations $144.6m $7.7m $(11.4m) Decline in sales reflects decision to exit non-strategic agency and owned brands Sales Und
Slide 6: Transformation Roadmap: Part 1
Transformation Roadmap: Part 1 Clear plan to unlock value Phase 1 Phase 2 For personal use only Year 1 of transformation 1H FY24 2H FY24 Foundational steps undertaken across brands and cost structure November 2023: strategy re-set June 2024: divestment of Multix New, experienced leadership
Slide 7: Strategic Review of Multix
Strategic Review of Multix Non-core business with different drivers to McPherson’s core brands Review of Multix Operational Transformation Update For personal use only November 2023: strategic review commenced Direct variable costs and fixed costs removed with divestment Multix fundamentally a
Slide 8: Our Strategy
Our Strategy Our new strategy is designed to grow our core brands in high growth categories Brand Overview Near Term Priorities For personal use only Australia’s No. 1 Beauty Tools and Accessories brand Emphasise superior quality to drive category Quality and expertise across 150+ SKUs includi
Slide 9: Core Brand Performance
Core Brand Performance Core brand sales in 2H24 below 1H24. However, stronger relative performance in 2H24 vs. PCP Sales Commentary For personal use only Performance1 Increased activity from lower-priced competitors; unfavourable 1H24 range review with major customer (2.4)% Positive performance
Slide 10: FY24 Financial Results
For personal use only FY24 Financial Results Mark Sherwin
Slide 11: Key Messages
Key Messages Continuing Operations Discontinued Operation (Multix) For personal use only FY24 result presented on the basis of Sales2 declined 3.8% to $53.0 million, as the Group’s Continuing Operations, consumers continue to trade down to following divestment of Multix1 private label Sales de
Slide 12: Summary Financials for Continuing Operations
Summary Financials for Continuing Operations Five core brands continue to outperform the rest of the group All figures in $m FY24 FY23 $ Var % Var Sales of core brands outperformed Revenue1 144.7 155.2 (10.6) (6.8%) For personal use only portfolio and other group brands; resulting Expenses in a hi
Slide 13: Material Items from Continuing Operations (pre-tax)
Material Items from Continuing Operations (pre-tax) Material items reflect trading environment and the re-set of the business in FY24 Material Items For personal use only Impairment of Exclusive Distribution Agreement (EDA). As a result of current performance, the inventory prepayment was fully writ
Slide 14: Summary Financials by Business Unit
Summary Financials by Business Unit1 Australia and New Zealand (ANZ) ANZ For personal use only Sales decline of (5.1%) largely reflects decision to exit non- strategic and agency brands $139.1m $12.8m Revenues from core brands $117.9 million vs. $118.4 million in FY23; improved 2H24 performance
Slide 15: Underlying EBITDA Bridge
Underlying EBITDA Bridge Continuing Operations For personal use only Contribution from core brands reflects Underlying EBITDA Bridge positive brand mix and is net of upweighted A&P investment ($m) Contribution decline from portfolio brands ($4.5) million due to supply challenges during FY24 and
Slide 16: Multix Divestment
Multix Divestment Recovering performance in FY24 presented opportunity to divest All figures in $m FY24 FY23 $ Var Multix Result For personal use only Sales Revenue 53.0 55.1 (2.1) Sales decline reflects consumer shift to private label Underlying EBITDA (Discontinued Operation) 7.5 2.9 4.6 product
Slide 17: Net Cash Position
Net Cash Position Supported by strong operating cash flows and proceeds from Multix divestment Net Debt / Cash Bridge For personal use only ($m) Strong operating cash flows of $12.3 million (FY23: $6.5 million) supported by improved 2.7 working capital (reduced inventory holdings) 3.5 Payment fo
Slide 18: Capital Management & Dividends
Capital Management & Dividends Capital management policy review underway Balance of retained losses (including current year loss) mean McPherson’s For personal use only is not in a position to pay a final dividend for FY24 McPherson’s will conduct a review of its capital allocation framework and
Slide 19: 1H25 Priorities & Summary
For personal use only 1H25 Priorities & Summary Brett Charlton
Slide 20: Transformation Roadmap: Part 2
Transformation Roadmap: Part 2 Clear plan to unlock value; FY25 key year in transformation plan Phase 1 Phase 2 Phase 3 Phase 4 For personal use only 1H24 2H24 FY25 FY26 November 2023: strategy re-set June 2024: divestment of Multix Streamlined, focused organisation New, simplified operating
Slide 21: Market Outlook
Market Outlook Focused on transformation McPherson’s remains focused on the execution of its For personal use only transformation while growing its core brands. This requires coordinated commercial execution in a challenging economic environment. At the same time, the Company continues to work on
Slide 22: For personal use only
| use only -Or persona M MCPHERSON'S © Qo > \ Health Wellness Beauty
Slide 23: Thank You
For personal use only Thank You
Slide 24: Appendix
For personal use only Appendix
Slide 25: Appendix 1: Reconciliation of Underlying EBITDA to NPAT
Appendix 1: Reconciliation of Underlying EBITDA to NPAT $’000 2024 2023 For personal use only Continuing Discontinued Continuing Discontinued Total Total Operations Operations Operations Operations Underlying EBITDA 7,674 7,530 15,204 12,148 2,888 15,036 Depreciation and amortisation expense (5,910)