Slide 1: Results for 12 months to 30 June 2009
McPherson’s Limited For personal use only Results for 12 months to 30 June 2009 David Allman Managing Director
Slide 2: Underlying Profit
Underlying Profit A$ Million For personal use only Jun 08 Jun 09 Sales 333.9 356.8 EBITDA 54.1 45.3 Depreciation & Amortisation (6.1) (5.8) EBIT 48.0 39.5 Interest (9.8) (9.9) Interest cover 4.0 times. NPBT 38.2 29.6 Tax (10.6) (8.4) NPAT 27.6 21.2 Pre-tax Cash Flow 37.9 26.3 89% cash conversion. EP
Slide 3: Funds Employed Breakdown at 30 June
Funds Employed Breakdown at 30 June A$ Million For personal use only Jun 08 Jun 09 Shareholders’ Funds 153.5 154.8 Gearing reduces to 67% - Net Debt 106.4 104.2 53% post capital raising. Total Funds Employed 259.9 259.0 Consumer Products Funds Employed 224.9 224.2 Printing Funds Employed 35.0 34.8 2
Slide 4: Consumer Products
Consumer Products A$ Million For personal use only Jun 08 Jun 09 Sales 263.3 288.5 9% growth / 5% organic EBITDA 50.0 41.2 Depreciation / Amortisation (3.0) (2.7) EBIT 47.0 38.5 EBITDA / Sales % 19 14 EBIT / Sales % 18 13 GEOGRAPHIC EBIT BREAKDOWN Australia 41.2 32.6 International 5.8 5.9 47.0 38.5
Slide 5: Consumer Products 2008/09 Trading Commentary
Consumer Products 2008/09 Trading Commentary For personal use only • Volatility in currency and materials costs • A$ decline pressured margins and inventory levels during the year. Cost of purchasing US$1 increased by 50% between July 2008 and February 2009 • Profit restoration programme: - Increase
Slide 6: Printing
Printing A$ Million For personal use only Jun 08 Jun 09 Sales 70.7 68.4 EBITDA (before equipment leases) 10.2 9.2 Equipment lease expenses (2.5) (1.9) Depreciation / Amortisation (3.0) (3.0) EBIT 4.7 4.3 EBITDA (before equipment leases) / Sales % 14 14 EBIT / Sales % 7 6 EBIT / Funds Employed % 13 1
Slide 7: Amalgamation of Australian Consumer Products Operations / MD Change
Amalgamation of Australian Consumer Products Operations / MD Change For personal use only • Effective July 2009 all accounting, logistics, IT and customer service centralised at Kingsgrove which is now head office of McPherson’s Consumer Products • Paul Maguire appointed CEO of McPherson’s Consumer
Slide 8: McPherson's Consumer Products
McPherson’s Consumer Products For personal use only • Personnel – 630 (FTE) • Operations in Australia, New Zealand, Singapore and China • Trading in North America • Large, highly professional sourcing operation in China • Sophisticated logistics capability • Established relationships and credibility
Slide 9: Diverse Product Portfolio
Diverse Product Portfolio For personal use only McPherson’s results for 12 months to 30 June 2009. 9
Slide 10: For personal use only
For personal use only McPherson’s results for 12 months to 30 June 2009. 10
Slide 11: Business Initiatives
Business Initiatives For personal use only • Restructuring/merger - successful streamlining of the business now well underway • Warehouse changes - more effective distribution i.e. right products in the right places • Quality Assurance review - emphasis on improvements in operational efficiency • St
Slide 12: Company Financial Objectives
Company Financial Objectives For personal use only • Restore profitability to acceptable levels • Reinstate dividend payments • EPS growth driven by McPherson’s Consumer Products McPherson’s results for 12 months to 30 June 2009. 12