Slide 1: Results for the Year to 30 June 2018
RESULTS FOR THE YEAR TO 30 JUNE 2018 Nick Pritchard Group Managing Director Matt Parker Chief Financial Officer 16 August 2018
Slide 2: FY18 Highlights, Financial Results, Strategy & Outlook
1. FY18 Highlights Nick Pritchard Group Managing Director 2. Financial Results Matt Parker Chief Financial Officer 3. Strategy & Outlook Nick Pritchard Group Managing Director
Slide 3: FY18 Highlights
FY18 HIGHLIGHTS SAFETY KEY HIGHLIGHTS METRICS & PERFORMANCE DRIVERS
Slide 4: Safety
SAFETY Building a strong safety culture across all parts of our business • Continuing strong performance • No major incidents or injuries during the year • Increased investment in safety leadership, and training our team in key safety skills 4
Slide 5: Key Highlights
KEY HIGHLIGHTS Results to the top end of guidance range • Result at the top end of guidance range with FY18 PBT at $12.5m; impacted by abnormal seasonal events and significant raw material cost & currency headwinds • Expanding North American sales presence with investment in people & infrastructure
Slide 6: Key Metrics & Performance Drivers
KEY METRICS & PERFORMANCE DRIVERS Strong second half performance • A strong second half with improved EBITDA margins • 8.5% decline in revenue to $160.5m ($175.3m in FY17) driven by glass exit and weak grain fabric sales in 1H • 1% decline excluding the discontinued glass business • Full year NPAT $
Slide 7: Financial Result
FINANCIAL RESULT RESULTS SUMMARY OPERATING ENVIRONMENT CASH FLOW BALANCE SHEET REGIONS
Slide 8: Results Summary
RESULTS SUMMARY Solid underlying performance • Revenue growth excluding the sale of the glass business down 1% • Margins impacted by raw material cost increases and currency, offset by improvements following non-core business exits • EPS down 1% to 3.35 cents • Dividends stable at 2 cents per share
Slide 9: Operating Environment
OPERATING ENVIRONMENT Significant economic and market headwinds over the year • Currency - CNY strength against USD & AUD added to manufacturing costs • Input costs - 10-year high on resin prices with Steel & Aluminium costs also increasing 20%+ • Seasonality - weak grain harvest in Australia, with
Slide 10: Cash Flow
CASH FLOW Operating cash flow weaker due to currency, commodity prices and higher inventory • Cash Flow and Net Debt impacted by: • Investment in new coating line • Investments to support new USA ranging • Investments in USA warehouse • Higher inventory levels due to lower than expected sales and Au
Slide 11: Australia & New Zealand
AUSTRALIA & NEW ZEALAND Strong underlying performance for continuing business FY2018 FY2017 Change A$ million A$ million % Revenue from continuing businesses 75.4 79.1 (5) Statutory Revenue 75.4 92.4 (18) Underlying EBITDA 4.2 2.9 45 Underlying PBT 3.5 1.9 82 • Strong profit increase • Retail sales
Slide 12: Americas
AMERICAS Continued progress & investment FY2018 FY2017 Change A$ million A$ million % Revenue 64.3 62.0 4 EBITDA 6.1 6.5 (6) PBT 3.7 4.4 (15) • Sales growth of 6%, in local currency terms, despite seasonal impacts • Strong “sales-out” performance with largest customers • Major customer window shade
Slide 13: Middle East/North Africa
MIDDLE EAST/NORTH AFRICA Challenging year despite strong demand FY2018 FY2017 Change A$ million A$ million % Revenue 12.7 12.8 (1) EBITDA 2.7 2.5 8 PBT 2.4 2.3 5 • Sales increased 2% in local currency despite continuing weaker economic conditions • Operating margin improvement due to mix changes, an
Slide 14: China Manufacturing & Eurasia
CHINA MANUFACTURING & EURASIA Strong operational performance combined with service improvements FY2018 FY2017 Change A$ million A$ million % Revenue 8.1 8.2 (1) Intersegment Sales (eliminated when 52.6 49.8 6 consolidated group results) EBITDA 4.8 11.5 (58) PBT 1.4 8.0 (82) CHINA MANUFACTURING EURAS
Slide 15: Strategy & Outlook
3.STRATEGY & OUTLOOK STRATEGY RESEARCH & DEVELOPMENT OUTLOOK
Slide 16: Strategy
STRATEGY A Global Fabrics Technology business Focused Geographic Product Innovation – Coated Products – create Productivity – drive Expansion – focusing on a revitalise the shade additional manufacturing manufacturing & other small number of product category & capacity & extend our efficiencies acro
Slide 17: Research & Development
RESEARCH & DEVELOPMENT A pipeline of truly innovative products • New products to date have largely been product ‘refreshes’ • Starting to deliver genuine innovation • Higher performing architectural fabrics • Solar motorised window shades • Striving for significant breakthroughs • New materials • Ne
Slide 18: Outlook
OUTLOOK • Trading conditions not expected to change materially • Continued growth in demand for core product categories expected • Encouraged by the positioning of the business in key markets • Major USA retailer window shade program rollout to continue in 1H FY19 • Australian grain cover market exp
Slide 19: Disclaimer
DISCLAIMER 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 statements relate to futur