Globe International Limited · ASX:GLB
Globe International — H1 FY2003 Earnings Presentation
10 slides from Globe International's earnings presentation, Mar 6, 2003
Slide 1: Half-Year Result 2003 Investor Presentation
Slide 2: Management comments on the result
“This result is clearly not acceptable. It has primarily occurred as a result of the challenges facing the US economy, a cyclical down-turn in the American core skate market and a failure of some of Globe core brands to maintain their previously high level of sales growth. Decisive action is being t
Slide 3: Half year results FY03 vs FY02
BENE [Globe International Limited Half Year Half Year Variance FY03 FY02 Sales Australasia 45,940 56,283 -18% International 21,166 19,398 9% Globe Nth America 48,153 21,017 129% Other Revenue 41,304 1,042 25% Total Revenue 116,563 97,740 19% EBITA Australasia 4,255 7,450 43% International 2,510 5,74
Slide 4: Australasia: sales and EBITA review and outlook
Sales 58. i ‘| UI | 2001 2002 2003 EBITA 2001 2002 2003 Review Ww Ww Ww Ww o B B B B B Sales AUD$45.9, down 18% EBITA AUD$4.3m, down 43% EBITA margin 9%, down from 13% Weak skate hardware and footwear market Outlook Continued brand and channel opportunities & rationalisation Invest in product design
Slide 5: Globe North America: EBITA review and outlook
2001 2002 2003 EBITA 43 2001 2002 2003 Review w Sales AUD$48.2, up 129% a EBITA loss of AUD$0.9m wh Globe footwear well below expectations a Kubic performance unacceptable w Provisioning of Mr Raggs receivable Outlook 7 Invest in demand creation (marketing spend) w Investment in product development
Slide 6: International: review and outlook
Review Sales 24.6 B Sales AUD $21.2, up 9% mt +. ~ ms EBITA AUD $2.5m, down 56% 1 a EBITA margin 12%, down from 30% a Provisioning of Japanese and some European receivables significantly impacted profit 2001 2002 2003 Outlook a Move to a regionally based business ESITA model (currenily Australian ba
Slide 7: Balance sheet remains strong
ey * Le € ~ * O ¢ # Balance sheet remains strong # Net tangible assets of 18.5 cents per share # First payment under deferred Kubic consideration due end June 2003 USD5.1m « Net Operating cashflow of $6.2m in the first half Summary of key balance sheet items Dec 02 $M Working Capital 68.8 Net Debt 1
Slide 8: Core USA skate market softened significantly over the period
Core USA skate market softened significantly over the period Significant reduction in hardware sales Shift towards lower priced products Core youth “kids” (6-13 year olds) oriented World Industries brand impacted by sharp purchasing declines Indications that market share has remained intact Signific
Slide 9: Pleasing start to second half from Australasian business
Pleasing start to second half from Australasian business Continued disappointment and uncertainty in US and European markets Significant internal change to result in potential one off costs Management do not expect an improvement in the second half relative to the first half Enhanced performance fro
Slide 10: Ensure North America is immediately cash flow positive
Ensure North America is immediately cash flow positive Invest in product design and development and demand creation (marketing spend) Continue brand channel optimisation rationalisation in Australia Re-establish a viable, maintainable International distribution system Immediate focus on strengthenin
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