Slide 1: Full Year Ended 30 June 2011 Results Briefing
McPherson's Limited 5 Dunlop Road PO Box 4490 ACN 004 068 419 Mulgrave VIC 3170 Australia Telephone: +61 3 9566 3300 Facsimile: +61 3 9574 9075 For personal use only 22 August 2011 Manager, Company Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Full Year Ended 30 J
Slide 2: Results for the year to 30 June 2011
For personal use only McPherson’s Limited Results for the year to 30 June 2011 Paul Maguire Philip Bennett Paul Witheridge Managing Director Chief Financial Officer Chief Financial Officer McPherson’s Limited McPherson’s Limited McPherson’s Consumer Products
Slide 3: Financial summary for FY 2011
McPherson’s Limited: Financial summary for FY 2011 For personal use only June 2010 June 2011 (1) ($A million) ($A million) Sales 354.0 348.8 EBITDA 50.0 51.9 Depreciation & amortisation (5.5) (5.5) EBIT 44.5 46.4 4% EBIT growth Interest (7.9) (6.8) Interest cover 6.8 times NPBT 36.6 39.6 Tax (11.0)
Slide 4: Balance sheet
McPherson’s Limited: Balance sheet For personal use only June 2010 (3) June 2011 (4) ($A million) ($A million) Fixed assets (including intangibles) 210.4 202.9 Net working capital 101.1 94.4 Other (37.6) (40.0) 273.9 257.3 Shareholders’ funds 196.9 200.8 Net debt 77.0 56.5 27% reduction in net debt
Slide 5: FX Hedging (Australia)
FinancialConsumer McPherson’s summary Products: FX Hedging (Australia) For personal use only • Comprehensive FX hedging program in place using Options, Forward Exchange Contracts (FECs) and Collars • Options – Protect downside with premium cost but allow upside benefit FECs – Fixed rate with lost fo
Slide 6: FX Hedging (Australia) continued
FinancialConsumer McPherson’s summary Products: FX Hedging (Australia) continued For personal use only • Accounting Standards (AASB 139) - Allow FEC outcomes to impact COGS and inventory - Prevent option premiums from impacting COGS and inventory - Require options to be “marked to market” with time
Slide 7: Printing
For personal use only Printing McPherson’s
Slide 8: Printing: Financial summary
Financial Printing: McPherson’s summary Financial summary For personal use only (5) June 2010 June 2011 ($A million) ($A million) Sales 64.3 58.9 McPherson’s Printing remains EBITDA (before equipment leases) 8.5 7.5 focused on cost containment Equipment lease expense (1.8) (1.6) Depreciation / amort
Slide 9: McPherson's Consumer Products
For personal use only McPherson’s Consumer Products Sydney Melbourne Auckland Singapore Hong Kong
Slide 10: Consumer Products: Financial summary
FinancialConsumer McPherson’s summary Products: Financial summary For personal use only June 2010 June 2011 ($A million) ($A million) Growth in key brands, off-set by the loss of an agency brand and Sales 289.7 289.9 reduced impulse merchandising EBITDA 47.7 50.9 opportunities Depreciation / amortis
Slide 11: Consumer Products: Trading commentary
Trading commentary McPherson’s Consumer Products: Trading commentary For personal use only • Retail sales in the second half were subdued, with consumer and business confidence adversely impacted by cost of living increases, global economic uncertainty, and concerns about the impact of the proposed
Slide 12: McPherson's Consumer Products: Operations
McPherson’s Consumer Products: Operations For personal use only • Operations in Australia, New Zealand, and Singapore • Distributors in Canada and South Africa • Highly professional sourcing operation in China • Sophisticated logistics capability and large in-field presence • Established relationshi
Slide 13: Existing product categories
McPherson’s Consumer Products: Existing product categories For personal use only Housewares Personal care Household Impulse consumables merchandising ~ 35% of sales ~ 25% of sales ~ 30% of sales < 10% of sales 3,000+ SKUs 1,500+ SKUs 200+ SKUs 100+ SKUs Channels: Channels: Channels: Channels: •Depar
Slide 14: McPherson's Consumer Products Business Model
McPherson’s Consumer Products Business Model SUPPLIERS MCPHERSON’S (MCP) CHANNELS CONSUMERS For personal use only G MCP adds value through, Grocery C L and derives a competitive O O Discount N advantage from, its: B Department Stores S A U People Department L Stores M Processes E S IT System
Slide 15: Outlook
Outlook For personal use only • The retail sales environment is expected to remain challenging, with currency and raw material costs volatile at present, but the business will be managed accordingly • A focus on innovation and new products will be maintained to underpin the strength of McPherson’s C