Slide 1: GALE Pacific Investor Presentation: Results to 30 June 2015
For personal use only GALE Pacific Investor Presentation Results to 30 June 2015 September 2015
Slide 2: Who we are
Who we are For personal use only GALE Pacific manufactures and markets branded screening, shading and home improvement products. We are a world leader in specialised textiles and recognised in our markets as an innovator and long-term producer of premium quality products. Based in Australia, we oper
Slide 3: FY2015 results summary
FY2015 results summary For personal use only FY2014 FY2015 % change A$ million A$ million Sales 137.3 148.0 8 Underlying EBITDA 17.6 18.2 3 Underlying EBIT 12.1 10.6 (13) Underlying profit before tax 11.0 8.7 (21) Underlying profit after tax 8.2 6.9 (16) Statutory profit before tax 11.0 6.2 (43) Sta
Slide 4: Half-on-half results
Half-on-half results For personal use only H2: 80.2 H2: 76.4 H2: 10.3 H2: 13.7 H1: 60.9 H1: 67.8 H1: 7.3 H1: 4.5 H2: 4.7 H2: 5.8 H1: 3.5 H1: 1.1 4
Slide 5: Cash flow and balance sheet
Cash flow and balance sheet For personal use only Inventory reduced by $9.5 million in H2, Gearing (net debt divided by net debt plus with increased inventory turn and lower shareholders’ funds): 15% aged inventory Increased net debt during the year reflected investment in product development, regen
Slide 6: Strategy Update
For personal use only STRATEGY Heading UPDATE Sub Heading 6
Slide 7: Strategy update
Strategy update For personal use only In late August 2014 we announced a strategy to create a more focused, more innovative, globally collaborative business geared towards improving service and leveraging our global scale. We are pleased to report significant progress in the implementation of this s
Slide 8: Strategy update: achievements - Global organisational structure
Strategy update: achievements - 1 For personal use only Global organisational structure Global supply chain model to improve working capital management and leverage company’s scale in procurement Structure 14 brands reduced to 5 Investment in less brands enables us to make them more meaningful to co
Slide 9: Brand execution
Brand execution For personal use only Decision to exit brands with low consumer equity, enabling focus on smaller number of brands Stringent brand guidelines established with reinvigorated packaging, websites, etc. EVERTON pool fencing and balustrade range relaunched, increasing point-of-sale perfor
Slide 10: Strategy update: achievements - Innovation, collaboration, service
Strategy update: achievements - 2 For personal use only Strong new product pipeline established in core categories Significant range wins for new products secured with largest Australian customer Innovation Global executive leadership team established Operating cycle supporting sharing ideas and mar
Slide 11: Strategy update: achievements - Regional selling model
Strategy update: achievements – 3 For personal use only Regional selling model implemented EurAsia region, based in Shanghai, established Changes aimed at servicing overseas customers locally and at lower cost Selling Regions Digital strategies developed for all brands New ZONE Interiors and EVERTON
Slide 12: Efficiency & Effectiveness
For personal use only EFFICIENCY Heading & EFFECTIVENESS Sub Heading 12
Slide 13: Efficiency and effectiveness: projects to unlock capacity for growth
Efficiency and effectiveness - 1 For personal use only 6 sizeable projects to unlock GALE Pacific’s capacity for growth and position the company for success China Manufacturing New Product Extrusion Coating Pricing Model Development Technology Upgrade Global Supply Chain International Market I.T. Op
Slide 14: Efficiency and effectiveness: China manufacturing, product development, extrusion
Efficiency and effectiveness - 2 For personal use only China manufacturing operation established as a cost centre rather than a profit centre, effective 1 July 2015 Improves visibility of regional profitability and transitions focus in China to quality, manufacturing efficiency and service China Man
Slide 15: Efficiency and effectiveness: supply chain, markets, I.T.
Efficiency and effectiveness - 3 For personal use only Improve product forecasting, global procurement, manufacturing, inventory management and supply chain reporting Achievements so far: strengthened processes, reduced supplier numbers with improved payment terms, and reduced inventory Global Suppl
Slide 16: Regions
For personal use only Heading REGIONS Sub Heading 16
Slide 17: Australasia
Australasia For personal use only Australian sales through retail channels higher, across most product categories Commercial sector sales impacted by non-repeat of large export order and weaker demand for grain protection fabrics. Excluding large export order in the prior year, underlying commercial
Slide 18: Americas
Americas For personal use only Sales up strongly across retail, online and commercial sectors Strong profit growth ERP (I.T.) system upgraded successfully Custom window shade manufacturing plant extended to Florida to improve customer service and reduce freight costs Increased sales expected in Sout
Slide 19: Middle East / North Africa
Middle East / North Africa For personal use only Strong performance continued Increased sales of architectural shade fabrics for large scale shading projects, including public areas, car parks and vehicle protection for automotive manufacturers Further investments, coupled with new architectural fab
Slide 20: China Manufacturing / Eurasia
China Manufacturing / Eurasia For personal use only Japan and Europe sales lower, but will benefit from structural changes and new leadership Chinese manufacturing operations, which produce knitted and woven fabrics and value-added products, affected by lower demand in Australia and reductions in gl
Slide 21: Looking Forward
For personal use only LOOKING Heading FORWARD Sub Heading 21
Slide 22: Looking Forward
Looking Forward For personal use only The next phase of the company’s transformation will focus on: Successful execution of the significant new business won across product categories in Australia; Building a more robust global supply chain with improvements in product forecasting, procurement, manuf
Slide 23: Disclaimer
Disclaimer For personal use only 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 stat