Slide 1: McPherson's Limited Results as at 31 December 2012
For personal use only McPherson’s Limited Results as at 31 December 2012 19 February 2013 Paul Maguire – Managing Director Paul Witheridge – Chief Financial Officer
Slide 2: Agenda
Agenda For personal use only Executive Summary Financial Performance Strategy Update Outlook
Slide 3: Executive Summary
Executive Summary For personal use only Paul Maguire Managing Director
Slide 4: Summary of Results
Summary of Results For personal use only 6.5% increase in H1 2013 sales to $153.2 million, with strong growth in personal care brands Net Profit after tax (NPAT) of $10.9 million Earnings per share (EPS) of 15.0 cents Interim dividend maintained at 10 cents per share, fully franked Total rev
Slide 5: Category Performance Summary
Category Performance Summary For personal use only % of Total % Growth* Reasons Outlook Revenue* Growth Range Housewares 28% (6%) deletions through new ranges Growth New product Personal through new 33% 36%** development & Care acquisitions ranges & acquisitions Continued Household Consistent 34% 2%
Slide 6: Financial Performance
McPherson’s Limited Financial Performance For personal use only as at 31 December 2012 Paul Witheridge Chief Financial Officer
Slide 7: Group Financial Summary for H1 2013
Group Financial Summary for H1 2013 Continuing Operations For personal use only December 2011 December 2012 ($A million) ($A million) Sales 143.9 153.2 6.5% Sales increase EBITDA excluding significant non-cash items (*) 19.9 19.1 4.0% EBITDA decline EBITDA 20.7 19.8 Depreciation & amortisation (1.3)
Slide 8: Overview of Group Balance Sheet
Overview of Group Balance Sheet Continuing Operations For personal use only December 2011 December 2012 ($A million) ($A million) Inventories 51.4 55.6 Receivables & prepayments 63.9 71.3 Trade & other payables (32.8) (36.4) Net working capital 82.5 90.5 Property, plant & equipment 7.0 7.7 Intangibl
Slide 9: Group Operating Cashflow
Group Operating Cashflow Continuing Operations For personal use only December 2011 December 2012 ($A million) ($A million) Cash flows from operations Receipts from customers (inclusive of GST) 146.4 154.5 Payments to suppliers and employees (inclusive of GST) (135.0) (146.4) Net cash inflows from op
Slide 10: Group Operating Cashflow (continued)
Group Operating Cashflow Continuing Operations (continued) For personal use only December 2011 December 2012 ($A million) ($A million) Cash flows from investing activities Payments for purchase of property, plant and equipment (1.2) (1.5) Capex in line with depreciation Payments for acquisition of b
Slide 11: Debt Refinance
Debt Refinance For personal use only The Group’s debt facility was refinanced in December 2012 with CBA, ANZ and NAB. The new facility includes: – 3 year term debt of $81m terminating December 2015 amortising $4m every 6 months. – Working Capital facility of $35m, inclusive of $8m seasonal facil
Slide 12: FX Hedging (Australia)
FX Hedging (Australia) For personal use only Comprehensive FX hedging program in place using Options, Forward Exchange Contracts (FECs) and Collars: – Options Protect downside with premium cost but allow upside benefit – FECs Fixed rate with lost forward points – Collar Improved downside protectio
Slide 13: Strategy Update
Strategy Update For personal use only Paul Maguire Managing Director
Slide 14: Operational Excellence: Objectives and Strategies
Operational Excellence Objectives and Strategies For personal use only Improved productivity & efficiency through; • Substantial process improvement; and • Significant enhancement of IT Systems to enable the automation of processes A strong company culture with highly engaged employees through; • Th
Slide 15: Operational Excellence: Current & Planned Initiatives
Operational Excellence Current & Planned Initiatives For personal use only ERP system upgrade to IBS Version 7 • Fully implemented in Australia by April 2013 • Rolled out to New Zealand, Hong Kong & Singapore this calendar year • Resulting in improved efficiency and productivity New Forecast Sales &
Slide 16: Operational Excellence: Current & Planned Initiatives
Operational Excellence Current & Planned Initiatives For personal use only A superior New Product Development (NPD) process • Roll out scheduled for July 2013 • Resulting in greater efficiency and increased success rate of new initiatives Sourcing review • On-going establishment of low cost, high qu
Slide 17: MCP Growth Strategies
MCP Growth Strategies For personal use only INNOVATION • Focused on innovating our major brands in both existing and new categories AGENCIES/ LICENCES • New agency partners chosen to strengthen ranging ACQUISITIONS • Proactively identifying and approaching businesses that have well regarded brands,
Slide 18: Outlook
Outlook For personal use only Paul Maguire Managing Director
Slide 19: Outlook
Outlook For personal use only Trading conditions expected to remain challenging: however – significant new product launches are scheduled in the second half to support McPherson’s Consumer Products strong brand portfolio; and – efficiency and productivity gains will flow through from operational i
Slide 20: Mission
For personal use only Mission To be a world class consumer products company through 1st choice products for consumers and by being a 1st choice partner for customers and suppliers 1st choice employer for employees 1st choice investment for shareholders