Mcpherson's Limited · ASX:MCP
Mcpherson's — H1 2005 Earnings Presentation
7 slides from Mcpherson's's earnings presentation, Feb 23, 2005
Slide 1: Half Year Result — December 2004
HALF YEAR RESULT — DECEMBER 2004 David Allman Managing Director
Slide 2: Profit & Loss (Half Year)
PROFIT & LOSS (HALF YEAR) A$ Millions Dec 04 Dec 03 Consumer Products EBITA 22.9 15.1 Printing EBITA 4.8 6.0 Corporate, etc. (1.6) (1.9) Group EBITA 26.1 19.2 Net Interest (5.0) (4.2) NPBT 21.1 15.0 + 41% NPAT 15.8 11.2 + 41% EPS (cents) 27.3 20.3 + 34% DPS (cents) 11.0 9.0 + 22% Note: Earnings figu
Slide 3: Balance Sheet at 31st December 2004
BALANCE SHEET AT 31St DECEMBER 2004 A$ Millions Dec 04 Fixed Assets (including intangibles) 215.7 Net Working Capital 96.3 Other (29.9) Funds Employed 282.1 Shareholders’ Funds 133.7 Net Debt 148.4 Funds Employed - Consumer Products 250.4 Funds Employed — Printing Division 34.9
Slide 4: Consumer Products
CONSUMER PRODUCTS First Half ° Initial contribution from Accantia and Multix. ° Loss of income from garment hanger supply and UK royalty. ° McPherson’s Housewares relocation to Kingsgrove complete. Operating costs above projections during initial period. e 5% revenue increase in Australia (like for
Slide 5: Printing
PRINTING First Half ¢ Divestment of Directory Printing. e Re-equipment programme. Priorities « Complete re-equipment programme and realise productivity gains.
Slide 6: Ongoing Financial Objectives
ONGOING FINANCIAL OBJECTIVES ® 20% per annum net return (before amortisation) on shareholders’ funds. ® Pre-tax cash flow > pre-tax (and amortisation) profit. ® Dividend payout ratio of approximately 50%. ® EPS growth through acquisitions which produce rationalisation benefits and improve competitiv
Slide 7: Business Strategy
BUSINESS STRATEGY Consumer Products Expand into compatible businesses Brands Focus on margins Integration of functions where appropriate - Sourcing - Logistics -~ Sales and marketing Printing ® Book and book type products ® Core customer relationships ® Re-equipment programme
McPherson's — H1 2005 Earnings Presentation on 6ix