Gale Pacific Limited · ASX:GAP
Gale Pacific — Shareholder Meeting (October 2012)
36 slides from Gale Pacific's shareholder meeting presentation, Oct 26, 2012
Slide 1: Gale Pacific Limited 2012 Annual General Meeting
For personal use only GALE PACIFIC LIMITED 2012 ANNUAL GENERAL MEETING 26 O CTO B E R 20 1 2
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS DAVI D A L L MA N
Slide 3: Chief Executive Officer & Managing Director's Address
For personal use only CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR’S ADDRESS PET E R MCD O NALD
Slide 4: FY12 Results – Key Points
FY12 Results – Key Points For personal use only • NPAT up 20% to $8.5 million. • Earnings per share of 2.86 cents. Return on invested capital (EBIT / shareholders funds plus net debt) improved to 15.7% in FY12 from 13.5% in FY11 and 12.2% in FY10. • Net Debt of $4.1 million. Net debt / equity ratio
Slide 5: FY12 Results – Key Points
FY12 Results – Key Points For personal use only • Sales up 16% to $110.5 million. • Sales revenues grew by 10% in the USA (US dollars) and 27% in the Middle East (US dollars). Our International business increased sales by more than 100%. Australia experienced another poor summer which had a negative
Slide 6: EBITDA / EBIT / NPAT (A$ Million)
EBITDA / EBIT / NPAT (A$ Million) For personal use only
Slide 7: Earnings per Share and Dividends per Share
Earnings per Share and Dividends per Share For personal use only Cents
Slide 8: FY12 Review
FY12 Review For personal use only FY12 FY11 FY10 A$M’S A$M’S % Variance A$M’S Sales 110.5 95.6 16% 98.8 EBITDA 18.0 15.8 14% 16.5 EBIT 12.5 9.9 26% 9.3 NPAT 8.5 7.1 20% 6.0 Earnings per share - cents 2.86 2.42 18% 2.10 Dividends per share - cents 2.45 2.20 11% 2.00 Cash from operations 9.5 11.4 (17)
Slide 9: Operating Cash Flow
Operating Cash Flow For personal use only • Continuing strong annual cash flows from operations. Operating cash generated of $9.5M for FY12. • Operating cash flow down in FY12 due to higher inventory levels from poor summer conditions in Australia, higher tax payments and higher working capital to s
Slide 10: Operating Cash Flow
Operating Cash Flow For personal use only FY07 FY08 FY09 FY10 FY11 FY12 Capital Expenditure (Gross) (4.0) (3.4) (1.0) (1.2) (0.6) (1.4) Dividends Paid - - - - (8.4) (6.9)
Slide 11: Debt Position
Debt Position For personal use only • Net debt at 30 June 2012 of $4.1 million. This low net debt position at year end was after paying out $6.9 million to shareholders in dividend payments. • Net debt to equity at 5.5%. • Interest cover of 12.9 times (EBIT/interest).
Slide 12: Changes in Net Debt
For personal use only Changes in Net Debt
Slide 13: Regional Business Unit Update
For personal use only Regional Business Unit Update
Slide 14: Australasia
Australasia For personal use only • Sales increased 10% over the prior year to A$71.0 million. • Full year contribution from the Zone Hardware and Riva Window Fashions businesses acquired in June 2011. • Sales declined in Gale’s traditional Australian markets due to weak consumer demand and cool, we
Slide 15: Australasia (cont.)
Australasia (cont.) For personal use only • Zone Hardware and Riva Window Fashions businesses now fully integrated into the Australian business operations resulting in a number of one off costs in FY12. • Riva Window Fashions roll out through the Bunnings network now complete. Additional resources a
Slide 16: Australasia (cont.)
Australasia (cont.) For personal use only • Australia’s wheat harvest is now not expected to be as good as originally forecast, however we have received solid orders for grain storage tarps in FY13. • The business has experienced reduced sales of coated fabrics in the mining sector recently due to s
Slide 17: Americas
Americas For personal use only • Sales increased 10% to US$21.2 million. • Strong sales growth and ranging achieved with most major accounts. • Hot summer conditions aided the sale of outdoor shading and screening products in the USA and Canada. • Sales of commercial fabrics increased by 25% over pr
Slide 18: Middle East
Middle East For personal use only • Sales increased 27% to US$8.1 million. • Increased sales in key markets of Saudi Arabia, United Arab Emirates, Qatar and Oman. • Secured and shipped our largest ever single project of approximately 300,000m². • Increased sales and demand for Synthesis Commercial 9
Slide 19: China
China For personal use only • Strong, stable management and technical support teams. • Record volumes, increased efficiencies, improved yields and reduced waste levels contributed to our strongest result from the China operation to date. These efficiency gains have all helped offset higher wage rate
Slide 20: China (cont.)
China (cont.) For personal use only • Polymer prices have been relatively stable throughout the year. • Safety statistics (LTI’s) improved by 38% year on year. • Out-sourcing department established to manage the sourcing of finished traded product from outside factories. Trading company is now estab
Slide 21: International Markets
International Markets For personal use only • Sales increased by more than 100% to US$10.4 million. • Strong growth in sales to our Japanese distributor with sales more than doubling year on year. Gale products are now sold through approximately 60 retail groups and approximately 1800 outlets in Jap
Slide 22: International Markets (cont.)
International Markets (cont.) For personal use only • Strong growth with our two primary European distributors in FY12. • Gale Pacific products now being sold in 26 countries serviced by the international market team. • An additional export marketing resource has been added to the International team
Slide 23: Regional Business Unit Results
Regional Business Unit Results For personal use only Australasia Americas Middle East International China (A$’s) (US$’s) (US$’s) (US$’s) (US$’s) FY12 Sales 71.0M 21.2M 8.1M 10.4M 23.0M* Up 10% Up 10% Up 27% Up 104% Up 1% FY12 EBITDA 7.8M 1.6M 1.6M Included in China 7.0M** Down 7% Up 220% Up 23% Incl
Slide 24: Outlook
Outlook For personal use only • Global markets are expected to remain volatile and consumer demand weak as a result. • Gale will continue to implement our growth strategy by expanding our product offer and presence in the markets for branded industrial and consumer screening, shading and home improv
Slide 25: Disclaimer
Disclaimer For personal use only Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such stat
Slide 26: Business of the Meeting
For personal use only BUSINESS OF THE MEETING
Slide 27: Financial and Related Reports
Financial and Related Reports For personal use only To lay before the annual general meeting the financial report of the Company and its controlled entities and the related Directors’ and Auditor’s reports for the year ended 30 June 2012 for shareholders to receive and consider.
Slide 28: Adoption of Remuneration Report (Non Binding Vote)
Adoption of Remuneration Report (Non Binding Vote) For personal use only That the Remuneration Report of the Company and its controlled entities for the year ended 30 June 2012 be adopted. The vote on this item is advisory only and does not bind the Directors or the Company.
Slide 29: Proxies for resolution for the Adoption of the Remuneration Report
Proxies for resolution for the Adoption of the Remuneration Report For personal use only For: 149,420,348 Against: 687,365 Open-Useable: 14,343,133 Open-Conditional: 0 Open-Unusable: 0 Abstain: 130,048 Excluded: 9,220,004 Total: 173,800,898
Slide 30: Re-Election of Director
Re-Election of Director For personal use only Mr David Allman retires as a director of the Company by rotation in accordance with rule 7.1(f) of the constitution of the Company and, being eligible, offers himself for re-election.
Slide 31: Proxies for resolution for the Re-election of Director
Proxies for resolution for the Re-election of Director For personal use only For: 159,357,947 Against: 97,268 Open-Useable: 14,343,612 Open-Conditional: 0 Open-Unusable: 0 Abstain: 2,071 Excluded: 0 Total: 173,800,898
Slide 32: Performance Rights Share Plan – Approval for exception 9(b), listing rule 7.2
Performance Rights Share Plan – Approval for exception 9(b), listing rule 7.2 For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That the issue of performance rights and underlying performance shares in the Company under the Company’s Per
Slide 33: Proxies for resolution for the Performance Rights Share Plan
Proxies for resolution for the Performance Rights Share Plan For personal use only For: 154,981,330 Against: 908,313 Open-Useable: 14,288,998 Open-Conditional: 0 Open-Unusable: 0 Abstain: 394,152 Excluded: 3,228,105 Total: 173,800,898
Slide 34: Approval of issue of Performance Rights to the CEO, Mr Peter McDonald
Approval of issue of Performance Rights to the Company’s Chief Executive Officer, Mr Peter McDonald For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That approval be given for the purposes of Listing Rule 10.14 and all other purposes to
Slide 35: Proxies for resolution for the Approval of Performance Rights to CEO
Proxies for resolution for the Approval of Performance Rights to CEO For personal use only For: 155,142,830 Against: 973,448 Open-Useable: 14,288,998 Open-Conditional: 0 Open-Unusable: 0 Abstain: 167,517 Excluded: 3,228,105 Total: 173,800,898
Slide 36: Questions
For personal use only QUESTIONS