McPherson's Limited · ASX:MCP
McPherson's — Shareholder Meeting (November 2004)
9 slides from McPherson's's shareholder meeting presentation, November 2004
Slide 1: McPherson's Limited Investor Briefing - Nov 2004
McPherson’s Limited INVESTOR BRIEFING - NOV 2004 David Allman Managing Director www.mcphersons.com.au
Slide 2: 2004 Profit & Loss
2004 PROFIT & LOSS A$ Millions June 04 June 03 Consumer Products EBITA 26.3 11.5 Printing EBITA 12.2 12.8 Corporate, etc. (3.1) (2.6) Group EBITA 35.3 21.8 Net Interest (7.6) (4.1) NPBT 27.8 17.7 + 57% NPAT 21.1 13.0 + 63% ______________________________________________________________ EPS (cents) 38
Slide 3: Balance Sheet at 30th June 2004
BALANCE SHEET AT 30th JUNE 2004 $ A Millions June 04 1st July 03 Fixed Assets (including intangibles) 138.8 139.7 Net Working Capital 66.5 76.5 Other (18.1) (19.6) _____ _____ Funds Employed 187.2 196.6 _____ _____ Shareholders’ Funds 107.5 92.6 Net Debt 79.7 104.0 __________________________________
Slide 4: Ongoing Financial Objectives
ONGOING FINANCIAL OBJECTIVES 1. 20% per annum net return (before amortisation) on shareholders’ funds. * Achieved each of last five years 2. Pre-tax cash flow > pre-tax (and amortisation) profit. * Achieved each of last five years 3. EPS growth through acquisitions which produce rationalisation bene
Slide 5: Business Strategy
BUSINESS STRATEGY Consumer Products • Expansion into other categories • Brands • Focus on margins • Key capabilities - Design / Sourcing - Logistics - Marketing including customer relationships Printing • Specific niche markets • Core customer relationships • Equip to focus on specific markets • Ong
Slide 6: Major Operational Issues
MAJOR OPERATIONAL ISSUES • Amalgamation of McPherson’s Housewares and Cork Asia Pacific. Synergies of $6 million per annum. • Closure of Retail Solutions business. Loss of contribution but creation of warehouse space at Kingsgrove. • Loss of UK license fee income. Partially offset by additional Rich
Slide 7: Multix and Accantia
MULTIX AND ACCANTIA • Businesses acquired October 2004. • Management budgeted EBITA for 2004/05 (full year) of $13 million. • EPS positive for 2004/05. • Consumer products funds employed increase from $150 million (June 2004) to around $235 million (June 2005). • Managed as separate business units.
Slide 8: Sale of Directory Printing
SALE OF DIRECTORY PRINTING • Strategic divestment decision to take cash now. • Earnings negative. • Funds employed in Printing around $40 million at June 2005.
Slide 9: Major Priorities
MAJOR PRIORITIES • Ongoing financial objectives. • Generation of further synergies from amalgamation of McPherson’s Housewares and Cork Asia Pacific. • Capture synergies available from Multix and Accantia acquisitions. • Gains from Book and Commercial Printing investment programme. • Next acquisitio