Waterco Limited · ASX:WAT
Waterco — FY2004 Earnings Presentation
12 slides from Waterco's earnings presentation, Aug 26, 2004
Slide 1: Results for the Year Ended 30 June 2004
Results for the Year Ended 30 June 2004 Presentation by Soon Sinn Goh, Managing Director
Slide 2: Sales revenue up 6% to $74m
Sales revenue up 6% to $74m $290 7 - =o no nnn nn nnn n nnn c nce c nana nance csc neces cea ec es Net profit after tax up 41% fo $5.4m 270 EBIT (Before FOREX fluctuations and sale of 82807 property in prior year) 92.30 Sales Up from 10% to 10.6% $210 Gearing down from 55% to 38%. so Final dividend
Slide 3: Company Profile
Company Profile The business was established in 1981 by Managing Director, Soon Sinn Goh to act as a distributor of PVC pipes for use in swimming pools Over time the Company progressively expanded its suite of products through internal product development and acquisitions Manufacturing operations es
Slide 4: Global Presence
Global Presence Waterco is a progressive Australian company with a strong international presence in the water treatment industry + Waterco exports to over 40 countries through its overseas offices in Malaysia, New Zealand, the USA, the UK and China, as well as various international distributors
Slide 5: Water Treatment Industry
Water Treatment Industry + — The water treatment industry encompasses swimming pools, industrial and household water treatment, aquaculture and water recycling * Componentry has changed over recent years from metals to plastics and composites + Some areas, such as USA, have been siow to adapt to new
Slide 6: Waterco developed and owns the Swimart franchise
Waterco developed and owns the Swimart franchise Swimart is Australasia's largest group of pool shops with 53 stores in Australia and 4 in New Zealand Swimart shops distribute the full range of Waterco products and chemicals over the counter and as part of their pool servicing activities Store numbe
Slide 7: Equipment
Equipment _ + Waterco designs, manufactures and wholesales a range of pumps and filters for use in the water treatment industry and an extensive range of swimming pool accessories + Waterco has the widest product range in the market + Components are manufactured in Malaysia and China with final asse
Slide 8: Chemicals
Chemicals + Waterco imports, packages and wholesales pool and spa chemicals + — The Company has chemical packaging operations in China and Australia and dangerous goods warehouses * — Itis estimated that Waterco has 50% of the Australian chlorine market with sales to Swimart, independent pool retail
Slide 9: Financial Overview
Financial Overview All figures in $000s unless stated FY02 FY03 FY04 Sales revenue 59,475 69,667 73,769 EBITDA 4,336 7,748 9,232 Depreciation and amortisation (1,338) (1,238) (1,172) EBIT 2,998 6,510 8,060 Interest expense (1,203) (1,200) (939) NPBT 1,796 §,310 7,124 Tax expense (595) (1,497) (1,753
Slide 10: Key Ratios
Key Ratios FY02 FY03 FY04 Profitability EBIT (Before FOREX and Sale of Property) / Sales 5.7% 10.1% 10.6% Return on equity 5.8% 18.2% 16.4% Return on capital employed 3.1% 11.8% 10.9% Gearing Net debt to equity 86.8% 55.8% 37.8% Interest cover 2.49% 5.42% 8.58%
Slide 11: Continued expansion into industrial and household water treatment
Continued expansion into industrial and household water treatment with particular focus on water recycling Exploit competitive advantages to accelerate overseas expansion -Plastics manufacturing skills backed by R & D —Relatively low cost base —Comprehensive product range Pursue acquisition opportun
Slide 12: fOmMyYOUr
fOmMyYOUr ~ 2Attendanc gee