Slide 1: Building Our Brands For New Markets – FY16 Investor Presentation
For personal use only BUILDING OUR BRANDS For New Markets FY16 Investor Presentation Year ended 26 June 2016 Charlie McLeish Albert Zago Chief Executive Officer Chief Financial Officer
Slide 2: Today's Agenda
Today’s Agenda For personal use only Pental Overview FY16 Overview Operational Update Outlook Appendix ! Detailed Profit & Loss ! Cash Flow ! Capital Works Completed (Images) Building Our Brands For New Markets – FY16 Investor Presentation !
Slide 3: Pental Overview
For personal use only Pental Overview Building Our Brands For New Markets – FY16 Investor Presentation 3
Slide 4: About Pental
About Pental For personal use only Pental brands ! Household products that are efficient and quality-tested to help deliver quality and families live better. expertise in home ! Wherever you go in an Australian home today it would be odd not to and hygiene find at least one Pental product. products
Slide 5: Who we are
Who we are For personal use only Personal Care House- Hold Cleaning NZ Laundry Fire needs Kitchen NZ Building Our Brands For New Markets – FY16 Investor Presentation $
Slide 6: Our business
Our business For personal use only Pental Limited (ASX:PTL) Market Cap: $85 Million(1) Established 62 years ago Headquartered in Melbourne Gross Sales by Region Manufacturing facilities ! Shepparton – 90% of products Asia 1% - Soap plant New - Bleach plant Zealand - Liquids plant 19% - Firelighters
Slide 7: Pental people
Pental people For personal use only Board of Directors & Company Secretary Peter Robinson Mel Sutton John Rishworth John Etherington Kimberlee Wells Oliver Carton Non Executive Non Executive Non Executive Non Executive Non Executive Company Secretary Independent Chairman Vice Chairman Independent Di
Slide 8: FY16 Overview
For personal use only FY16 Overview Building Our Brands For New Markets – FY16 Investor Presentation '
Slide 9: FY2016 in review
FY2016 in review For personal use only Sales Number of Underlying constrained by new products EBITDA up major plant launched into 5.3% to Improved upgrades and market $10.8 million market share plant per in a number performance of segments issues Sales to Asia have commenced Reported Profit delivery
Slide 10: Key financial results
Key financial results For personal use only $’000 FY16 FY15 Change % o GSV constrained by major plant upgrades Gross Sales (GSV) 109,980 111,150 (1,170) -1.1% and plant performance issues Net Sales 79,223 81,163 (1,930) -2.4% o Net sales down 2.4% as a result of manufacturing issues and increased Un
Slide 11: Net profit before tax
Net profit before tax For personal use only Decrease in line EBA increase, fees due to Increased in-store production Reduced media advertising reduction of promotions with inefficiency & banking facility trade spend at investment to redirected to in-store promotional from $16 million to 28% of Gross
Slide 12: Working capital & balance sheet
Working capital & balance sheet For personal use only o Net cash position of $12.3m Key balance sheet items o $10.1m is on short term deposit $’000 FY16 FY15 o Nil debt Cash 12,335 11,040 o Solid operating cash flow of $11.3m (4.7% down on LY) Net assets 83,177 81,734 o FY16 tax liability of $2.3m t
Slide 13: Capital management
Capital management For personal use only Shepparton Strong cash Pental is reviewing buy-back balance of its capital position o Pental can exercise its option to buy the $12.3 million so as to ensure it Shepparton manufacturing facility and land at 26 June maximises between 1 July 2017 and 30 June 20
Slide 14: Operational Update
For personal use only Operational Update Building Our Brands For New Markets – FY16 Investor Presentation 14
Slide 15: Delivering on strategy key pillars to drive growth
Delivering on strategy 5 key pillars to drive growth For personal use only 3 OPTIMISE 1 CREATE A VALUE GROWTH 5 SOLID PLATFORM FROM THE CURRENT PORTFOLIO: DRIVE GROWTH FOR GROWTH: THROUGH Focus on and over invest in Growth Nail the basics: Safety, People categories and our Power brands NON–RETAIL: E
Slide 16: Operational scorecard
Operational scorecard Create a solid platform for growth 1 For personal use only Operations FY17 Outcomes and Actions Moving Forward Outcome o Lost Time Injuries down by 50% (1 injury) Safety o No injuries during 7000 hours of capital works o Enhanced preventative maintenance processes and engineeri
Slide 17: Becoming a low cost producer
Create a Becoming a low cost producer solid platform for growth 1 For personal use only Capital Works Completed Status Outcomes Reduced waste & improved throughput rate (since March Replacement of Bleach Dec 2016 increased by 15.8%), however “overall” bleach plant Line A filler 2015 downtime needs t
Slide 18: Building for growth
Building for growth Create a solid platform for growth 1 For personal use only New Capital Project Capex Status Status Benefit Being commissioned, Growth in commercial & industrial Bulk filling line $1.4m target completion channels + cost savings September 2016 Additional Soap - Equipment ordered In
Slide 19: Continuous improvement
Continuous improvement Year on year productivity savings 2 For personal use only Operations FY17 Outcomes and Actions Moving Forward Outcome Profit Delivery Projects - $1.1 million of over-and-above Procurement & non-commodity cost saving/profit initiatives offsetting Supply Chain other cost pressur
Slide 20: Investing in brands
Investing in brands Optimising growth from current portfolio 3 For personal use only Expanded Country Life into other growth segments “Premiumised” of Personal Wash by the offer and range launching new variants into through experiential Liquid Hand Soap and Body fragrances and Washes across retail a
Slide 21: Country Life campaign
Country Life campaign Optimising growth from current portfolio 3 For personal use only Message: ! Escape Everyday with Country Life Campaign objectives: ! To build awareness and consumer engagement, incentive trial and purchase Media: ! Social media ! Digital presence ! Consumer giveaways ! Sampling
Slide 22: Investing in brands
Investing in brands Optimising growth from current portfolio 3 For personal use only Future innovation in White King outpacing bathroom cleaning will category growth: +1% expand White King’s growth vs LY vs 1.5% decline footprint for bathroom cleaning* category White King has a strong hold on bathro
Slide 23: Investing in brands
Investing in brands Optimising growth from current portfolio 3 For personal use only Consumer Giveaway Online White King advertising in the digital space with integrated Country Life Escape promotion sponsorship during January 2016 Australian tennis season Building Our Brands For New Markets – FY16
Slide 24: Investing in brands (New Zealand)
Optimising Investing in brands (New Zealand) growth from current portfolio 3 For personal use only Sunlight has maintained it’s strong position within the highly competitive NZ Manual Dish Wash Category Sunlight tactical support helping to drive sales and outpace category dollars (+8.7% vs 0.8%) Azt
Slide 25: Investing in brands
Investing in brands Optimising growth from current portfolio 3 For personal use only Pental is the Simplified Jiffy pack one and only design to focus on key call outs and differentiation from Little Lucifer driving firelighter imported competition: category growth via innovation through manufacturer
Slide 26: Pipeline
Pipeline Optimising growth from current portfolio 3 For personal use only NEW ! New Products INDUSTRIAL ! In-Store Activation CHANNEL ! Export ! White King ! In-store activation ! Sunlight ! Social Media ! Softly ! Consumer Promo ! Huggie ! Export ! New Export Range ! In-store Activation Building Ou
Slide 27: Entering China
Entering China Accelerate our capability to grow exports 4 For personal use only o Sales to China commenced in FY16 o Direct relationships with Chinese retailers o Agents for merchandising and distribution via Shanghai Free Trade Zone (FTZ) o Distribution channels – Supermarkets: Bailian, InTime – E
Slide 28: New commercial & industrial channel through non-retail
Drive Growth New commercial & industrial channel through non-retail 5 For personal use only ! Completed an extensive review of sector ! Long-term expansion objective into new channels with our power brands ! New range of industrial-sized cleaning products developed ! Bulk liquids plant to be fully c
Slide 29: Outlook
For personal use only Outlook Building Our Brands For New Markets – FY16 Investor Presentation !(
Slide 30: Key focus areas
Key focus areas For personal use only 5 3 CONTINUED EXPANSION INTO 1 FOCUS ON DELIVERING SAVINGS NEW CHANNELS • Asia MANUFACTURING VIA PROFIT DELIVERY CONTINUOUS PROJECTS • Commercial & IMPROVEMENT industrial • Substantial costing • Enhance preventative savings and margin maintenance processes impro
Slide 31: Appendix
For personal use only Appendix Building Our Brands For New Markets – FY16 Investor Presentation 31
Slide 32: Profit & loss
Profit & loss For personal use only % Change ! Australia gross sales down 2.2% due to under $’000 FY 16 FY 15 supply of stock: Gross sales (GSV) 109,980 111,150 -1.1% – Old bleach filling equipment (waiting replacement) Trade spend (30,747) (29,987) -2.5% – Teething issues of new equipment Net Sales
Slide 33: Cash flow
Cash flow For personal use only $’000 FY 16 FY 15 % change Cash flow from operating activities 11,259 11,810 -4.7% Capital expenditure (6,148) (4,138) +48.6% Net proceeds from issue of shares - 6,656 NA Dividend paid (3,816) (3,313) +15.2% Net increase/(decrease) in cash 1,295 11,015 -88.2% Net cash
Slide 34: Capital works completed Swing Plant
Capital works completed Swing Plant For personal use only New state-of-the-art “SWING” (Soap with inside Glycerine) plant Removal - increased tallow of tanks and yields & reduced redundant manning costs plant Building Our Brands For New Markets – FY16 Investor Presentation 34
Slide 35: Capital works completed Bleach Line A
Capital works completed Bleach Line A For personal use only New Line A Old Line A “drip free” Filler Filler / / Capper – Capper waste reduction Building Our Brands For New Markets – FY16 Investor Presentation 35
Slide 36: Capital works completed Bleach Line B
Capital works completed Bleach Line B For personal use only New Trigger / Capper Bleach Line B – labour removed New carton erector Bleach Line B – Labour removed Building Our Brands For New Markets – FY16 Investor Presentation 36
Slide 37: Capital works completed Firelighters Line
Capital works completed Firelighters Line For personal use only New Firelighters Palletiser – with no packing labour Building Our Brands For New Markets – FY16 Investor Presentation "&
Slide 38: Disclaimer
Disclaimer For personal use only The material in this presentation is a summary of the results of Pental Limited (Pental) for the year (52 weeks) ended 26 June 2016 and an update on Pental’s activities and is current at the date of preparation, 29 August 2016. Further details are provided in the Com
Slide 39: For personal use only
For personal use only