Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 2005 Earnings Presentation
21 slides from Gale Pacific's earnings presentation, March 2005
Slide 1: Gale Pacific Limited Half Yearly Results Presentation March 2005
GALE PACIFIC LIMITED HALF YEARLY RESULTS PRESENTATION MARCH 2005
Slide 2: Introduction to Presentation by Gary Gale, Managing Director
INTRODUCTION TO PRESENTATION BY GARY GALE, MANAGING DIRECTOR • In our AGM presentation we announced a shift of earnings from the 1st half of our financial year to the second half • Our individual trading operations in Europe, USA and Australia are all seasonal businesses that have up to 20-25% of th
Slide 3: Introduction to Presentation by Gary Gale, Managing Director con't
INTRODUCTION TO PRESENTATION BY GARY GALE, MANAGING DIRECTOR con’t • Last year we purchased Jung in Europe early in our second half and its first half losses were not included in our 03/04 results. • Sales in Australia were affected by a very poor summer weather season and also by DIY retailers sign
Slide 4: Sales Revenue Performance
SALES REVENUE PERFORMANCE The Australian, USA, Europe, New Zealand and Middle East sales exclude intercompany sales eliminated on consolidation Australia AUD 33,060 - 4.4% USA USD 2,856 +27.6% Europe € 8,220 - China USD 4,798 * +150.5% Middle East USD 986 +52.5% New Zealand NZD 501 - * Sales for Chi
Slide 5: Effect of Diversification Strategy (External Revenue)
EFFECT OF DIVERSIFICATION STRATEGY (External Revenue) 100% 90% 80% Proportion of total sales in each market 70% 60% 50% 40% 30% 20% 10% 0% 2001 2002 2003 2004 6 m onths ending Decem ber 31 Australia New Zealand USA Germany Middle East China 5
Slide 6: Half Year Results
HALF YEAR RESULTS ending 31st December 04 Sales (consolidated after eliminations) * $53.3m +37.8% EBIT $1.6m -72.4% NPAT $0.2m -94.0% Earnings Per Share (Fully Diluted) 0.36c -97.6% Dividends 3.5c (in line with last year) * Excludes intercompany sales eliminated on consolidation. 6
Slide 7: Major Cost Impact December 04 vs December 03
MAJOR COST IMPACT DECEMBER 04 .VS. DECEMBER 03 EBIT NPAT Jung 1st Time First Half Impact - 2.061m - 1.302m USA Expansion of Operations - 0.293m - 0.307m Raw Material Cost Increase - 1.686m - 1.136m Australian Lower Sales Volume Impact - .567m - 0.382m Other Positive Net Impacts + 0.523m + 0.131m TOT
Slide 8: Australia
AUSTRALIA • Very poor weather season. • DIY retailers have had significant in-store inventory reduction during the period. • Ramping commodity price increases (now passed on). • Higher inventories due to lower sales, to be back in line by year end. • Coolaroo ranging remains very solid with new oppo
Slide 9: China
CHINA • New facility fully built and fully functional. • 15 million of new equipment – plastic extrusion, Raschel knitting, aluminium extrusion and powder coating. • China growth @ 150%. • New indent opportunities. • Strong management team. 9
Slide 10: China con't
CHINA con’t • Additional land purchased for future growth. • Driving down costs over whole group. • New R&D facility delivered well on our European Range. 10
Slide 11: Europe
EUROPE • New high quality management team at Gale Europe. • Very solid base of contacts through Jung has delivered great Coolaroo customer base. • Gale Europe has introduced Jung to new customers in Belgium, France and Holland. • 450 stores for Coolaroo in Germany. 11
Slide 12: Europe con't
EUROPE con’t • 750 stores Europe wide: Germany, Spain, Italy, Turkey, England, Austria, Switzerland, France, Belgium, Holland, Poland, the Czech Republic, Greece and Finland. This all occurred since first week of September and has been shipped this month. • As previously forecast, a dramatic increas
Slide 13: U.S.A
U.S.A • Growth continues at more rapid rate. • Geographic coverage increasing into Canada, opportunities in Central and South America from USA base. • Consolidation complete of Cal Shades and Coolaroo with significant logistic savings. • Exterior window shades our most successful program with custom
Slide 14: Middle East
MIDDLE EAST • Great growth @ 52% in revenue. • Improved margins. • Recent expansion into Saudi Arabia driving growth. • Base to be used to launch commercial fabrics into Europe. 14
Slide 15: New Zealand
NEW ZEALAND • High quality and experienced management team. • Integration has gone well. • Customer meeting very positive for future growth of combined program (Gale Aust / China / NZ). • Detailed market strategy to be completed in 60 days. • Retail presence being worked on presently. 15
Slide 16: New Zealand con't
NEW ZEALAND con’t • Cross-over net program to be expanded and exported. • New export customers based on Gale global reach to be followed up over the next 6 months. • Synergies in manufacturing and distribution in play. • Good solid growth expected in 2006. 16
Slide 17: Research & Development
RESEARCH & DEVELOPMENT • BioClip: Success in new nets that accept reactive dyes. 500,000 produced. 2.5 million valued at $4 million by September 2006. • Ventilation Ducting for underground mines commercialised; volumes expected to reach $6-8 million over several years. 17
Slide 18: Research & Development con't
RESEARCH & DEVELOPMENT con’t • Composite rigid tube used in concrete pouring currently 2 million per annum. • Aquaspan: Five new proposed dams for next 12 months. • Water management projects now entering commercialisation. Awaiting confirmation of orders for over 90 kms of fluming and lay flat pipe
Slide 19: Medium Trends
MEDIUM TRENDS • With new Aluminium and textile plant installed, substantial reduction in cost anticipated for 2006. • European growth outside Germany to pass German Sales in 2006. • 10 - 20% new business opportunity in direct indent program for 2006 at opening price points. • Substantially lower cos
Slide 20: Long Term Trends
LONG TERM TRENDS • Global Warming UV damage to people & plants • Water Conservation Evaporation & Water Quality 20
Slide 21: Long Term Trends con't
LONG TERM TRENDS con’t • Organic Agricultural Products Passive barriers to birds, insects & severe weather • Cocooning The backyard is a major area of the home improvement spend 21