Gale Pacific Limited · ASX:GAP
Gale Pacific — Shareholder Meeting (June 2006)
10 slides from Gale Pacific's shareholder meeting presentation, Jun 30, 2006
Slide 1: 2 0
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Slide 2: World Class Manufacturer of Advanced Polymer Fabrics & Value Added Fabric Products
~~ World Class Manufacturer of Advanced Polymer Fabrics & Value Added Fabric Products «Strong, growing sales and market position in selected world markets *--Low cost manufacturing strategy implemented during FY ‘06 es A Company with a sound underlying strategy and business platform «Unique technolo
Slide 3: 2006 Highlights
2006 Highlights Sales - Group + Strong, growing sales and market ~ position in selected world markets * Continued strong sales growth in USA, Europe and Middle East -. Overall group sales increase of 14%
Slide 4: Asia / Pacific
2006 Highlights Sales - Asia / Pacific «Asia / Pacific =. Market share maintained in mature market ~—. Additional costs absorbed in FY ’06 due to delayed China plant commissioning and Australian plant closure
Slide 5: Europe / Middle East
Europe / Middle East Sales revenue increase of “approximately 14% Late start to European retail summer ~ season due to cool weather Significant expenses absorbed in FY 06 relating to investment phase / start up marketing costs High inventory levels and additional warehouse costs incurred 2006 Highli
Slide 6: USA
Sales revenue increase of approximately 40% -Store expansion and strong sell through with major retail customers Commercial / architectural fabric market penetration - sales increase of approximately 98% 2006 Highlights Sales - USA
Slide 7: 2007 Priorities
2007 Priorities Focus on organic growth and operational efficiencies: + Growth -°-Capitalise on further range expansion opportunities with blue chip customer base — ~ Continue to grow commercial and industrial fabric sales and distribution channels —.- Tighter focus on product development projects a
Slide 8: 2007 Priorities
2007 Priorities se Operational efficiencies Improved plant productivity, process controls and efficiency levels in China plant - New Head of Manufacturing, China appointed (Paul Ducray) Improved Supply Chain processes to better manage the sales and production interface - reduced inventory levels Rev
Slide 9: Outlook
Outlook F ’06 F “07 F ’08 (post capital restructure) Sales $167.0M $180.0M $200.0M NPAT $1.0M $7.2M $10.3M Net Debt $60.0M $55.0M $50.0M Net Debt / Equity 0.60 0.54 0.50 (post capital restructure) CAPEX $16.0M $6.0M $6.0M (Management Forecast)
Slide 10: Outlook Summary
Outlook Summary : Reduced debt and stronger balance sheet position + — Return to profitability and positive cash flows + Dramatically reduced capital expenditure + - Reduced inventories ($4M - $5M) and improve supply chain management + --Improved R & D/ Product Development process with a focus on fa