Slide 1: Half Year Result to 31 December 2007
McPherson’s Limited For personal use only Half Year Result to 31 December 2007 David Allman Managing Director
Slide 2: Increased Profit
INCREASED PROFIT A$ Millions For personal use only Dec 06 Dec 07 Sales 165.3 171.6 EBITDA 25.3 29.2 Depreciation/Amortisation (2.7) (2.8) _____________________________________________________ EBIT 22.6 26.4 Interest (6.1) (4.8) Interest cover increased _______________________________________________
Slide 3: Balance Sheet at 31st December 2007
BALANCE SHEET AT 31st DECEMBER 2007 A$ Millions For personal use only Dec 06 Dec 07 Fixed Assets (including intangibles) 211.3 210.7 Reduced working capital Net Working Capital 83.8 81.4 despite increased revenue Other (41.7) (40.3) _____ _____ Funds Employed 253.4 251.8 _____ _____ Shareholders’ Fu
Slide 4: EBIT Breakdown
EBIT BREAKDOWN A$ Millions For personal use only Dec 06 Dec 07 Consumer Products - Australia 18.5 22.9 - International 3.9 3.5 ____ ____ 22.4 26.4 Printing 2.4 1.9 Corporate, etc. (2.2) (1.9) ____ ____ Group EBIT 22.6 26.4 ____ ____ Note: December 2007 excludes JV costs of $0.5 million
Slide 5: Group Structure
GROUP STRUCTURE For personal use only McPHERSON’S LIMITED MANAGING DIRECTOR - DAVID ALLMAN CFO - PHIL BENNETT CONSUMER PRODUCTS PRINTING DIVISION CEO – ALAN FAHY
Slide 6: Consumer Products Division Structure
CONSUMER PRODUCTS DIVISION STRUCTURE For personal use only SOURCING (Chinese Based) Third Party Sourcing CEO – SAMMY CHAN SUPPLY CHAIN SUPPLY CHAIN McPHERSON’S CONSUMER PRODUCTS MULTIX Formed by merger of McPherson’s Formed by merger of Multix & Accantia Housewares & Cork in 2003/04 both acquired 20
Slide 7: McPherson's Consumer Products: Major Product Categories / Brands
McPHERSON’S CONSUMER PRODUCTS MAJOR PRODUCT CATEGORIES / BRANDS For personal use only • Gadgets, Utensils, Kitchenware Wiltshire, Ai-de-Chef, Eterna • Bakeware/Cookware Wiltshire, Eterna • Kitchen Knives Wiltshire, Grosvenor • Cutlery Wiltshire, Grosvenor, Strachan + Stanley Rogers • Glassware Crown
Slide 8: Multix: Major Product Categories/Brands
MULTIX MAJOR PRODUCT CATEGORIES/BRANDS For personal use only • Bags, Cling Wrap Multix • Aluminium Foil Multix Alfoil • Cotton Wool, Wipes Swisspers, Simple Distribution Channels Grocery Pharmacy
Slide 9: Consumer Products Division Result
CONSUMER PRODUCTS DIVISION RESULT For personal use only A$ Millions Dec 06 Dec 07 Sales 129.2 136.2 5% revenue growth EBITDA 23.5 27.6 Depreciation / Amortisation (1.1) (1.2) _____ _____ EBIT 22.4 26.4 Focus on product EBITDA / Sales (%) 18.2 20.3 profitability and cost control EBIT / Sales (%) 17.3
Slide 10: Consumer Products Division Commentary
CONSUMER PRODUCTS DIVISION COMMENTARY For personal use only • Revenue growth in major brands • Reduction in SKU count of 25% (exit low contribution products) • New product development programmes working well • Further productivity improvements and overhead reductions • Focus on product profitability
Slide 11: Consumer Products Strategy
CONSUMER PRODUCTS STRATEGY For personal use only ORGANIC GROWTH • New product development • Expand brands into new categories (e.g. success of Swisspers personal wipes) • Focus on SKU count and product profitability BOLT-ON ACQUISITIONS • McPherson’s Consumer Products and Multix • Strong branded pos
Slide 12: Printing Result
PRINTING RESULT For personal use only A$ Millions Dec 06 Dec 07 Sales 36.1 35.5 EBITDA (before equipment leases) 5.1 4.5 Equipment lease expense (1.1) (1.1) Depreciation / amortisation (1.6) (1.5) ____ ____ EBIT 2.4 1.9 EBITDA (before equipment leases)/Sales (%) 14.1 12.7 EBIT/Sales (%) 6.6 5.4
Slide 13: Printing Commentary
PRINTING COMMENTARY For personal use only • Joint Venture not proceeding at this stage • Major capex programme complete • Ongoing cost reductions and efficiency improvements
Slide 14: Financial Objectives and Outlook
FINANCIAL OBJECTIVES For personal use only AND OUTLOOK • EPS growth driven by Consumer Products Division • Increase in ROSF back to target of 20% p.a. • 2007/08 pre-tax profit expected to increase by around 31%