2 3 F ina nc ia l Upda te 5 Clo sure o f Impulse Me rc ha nd - - PowerPoint PPT Presentation

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F ina nc ia l Upda te

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* Unde rlying a mo unts e xc lude the re sults o f the Ho use wa re s JV (dive ste d 31 Ma rc h 2016) a nd the o the r sig nific a nt, no n-re c urring ite ms o utline d o n Slide 8

Re ve nue fro m c o ntinuing o pe ra tio ns $279.5m

 10.6%

Clo sure o f Impulse Me rc ha nd ising Divisio n Re d uc tio n in lo w ma rg in priva te la b e l a nd a g e nc y sa le s E a rning s b e fo re inte re st a nd ta x $24.0m  0.5% Impro ve d c o ntrib utio n ma rg ins Re d uc e d se lling a nd d istrib utio n c o sts Ad ve rse AUD/ USD c urre nc y impa c t Pro fit b e fo re ta x $19.6m

 14.6%

Sig nific a nt re d uc tio n in b o rro wing c o sts d ue to 27% re d uc tio n in d e b t a nd re d uc e d e ffe c tive inte re st ra te Pro fit a fte r ta x $13.7m

 17.7%

E a rning s pe r sha re 13.2c ps

 12.3%

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Re duc tion in c oope ra tive a dve rtising c osts

$17.1 $19.6m

(6.4)

F X Impa c t Re duc tion in Home Applia nc e s E BIT i) De mise of sig nific a nt c ustome r ii) Comme rc ia l Cha nne l Improve me nt in c ontribution ma rg ins Re duc tion in se lling a nd distribution c osts Re duc tion in borrowing c osts

(0.8) 3.0 2.6 2.5 0.2 1.4

Va rious Othe rs

F Y16 F Y17

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Sig nific a nt Ite ms A$m F Y2017 F Y2016

Impa irme nt o f Ho me Applia nc e s inta ng ib le s (12.0)

• Impa irme nt o f Re vita na il b ra nd

(6.9)

• Impa irme nt o f Ne w Ze a la nd b usine ss se g me nt

(2.7)

• Re struc ture c o sts

(1.6) (5.8) Bo nd b uy b a c k c o sts (1.2) (0.2) Pro fit o n dive stme nt o f IMD Sing a po re 0.2

• Ga in o n Sa le o f Ho use wa re s JV
• 2.0

L e g a l a nd a c q uisitio n c o sts

• (0.2)

T

• ta l Sig nific a nt Ite ms be for

e T a x (24.2) (4.2)

T a x b e ne fit o n Sig nific a nt Ite ms 1.3 1.8

T

• ta l Sig nific a nt Ite ms Afte r

T a x (22.9) (2.4) 8

9 * Ope ra ting c a shflo w / Unde rlying E BI T DA e xc luding no n-re c urring ite ms. **Unde rlying E BI T / T

• ta l funds e mplo ye d. $20.6m impa irme nt o f inta ng ib le s (a fte r ta x) a dde d b a c k to funds e mplo ye d.

*** Unde rlying E BI T a nd E BI T DA e xc lude sig nific a nt, no n-re c urring ite ms † I nte re st no rma lise d to e xc lude b o nd b uyb a c k c o sts

Und e rlying Ca sh Co nve rsio n* 113% $30.8m o pe ra ting c a sh flo w b e fo re inte re st a nd ta x pa yme nts Ne t De b t $36.4m

 27.0%

Stro ng o pe ra ting c a shflo w Impro ve d wo rking c a pita l e ffic ie nc y Ge a ring 29.2%

 3.1pp

Stro ng fina nc ia l pla tfo rm ROF E ** 15.4%

 0.6pp

So lid re turn o n fund s e mplo ye d No rma lise d E BIT Inte re st Co ve r 5.4 time s

 1.6 time s

E BIT *** / Inte re st† No rma lise d le ve ra g e Ra tio 1.3 time s

 0.6 time s

Ne t De b t / E BIT DA***

Ope ra tio na l Upda te

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HAPL 22% Ag e nc y 17% H,W& B 61%

Ne t Sale s Contr ibution

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So urc e : Industry Re ve nue Co mplime nta ry Me dic ine s Austra lia 2015 (2017 E st), Co sme tic s/ T

• ile try re ta iling IBI

SWo rld 2017 E st

HE AL T H WE L L NE SS BE AUT Y

F

• c us b e yo nd

dispe nsing to fro nt o f sho p

Hig h Gro wth

Ag ing Po pula tio n T ra ditio na l Cha nne ls sa le s fla t

• ve r 4 ye a rs

China se e king hig h q ua lity AU a nd NZ H,W & B Bra nds

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$4.6 Bill

E

• st. Ind ustry re ve nue

2017-18

>66%

Austra lia ns use c o mplime nta ry me d ic ine (CM))

1.3 Mill

Pe o ple a d d CM to e xisting tre a tme nts

+15%

CAGR

H&W

$4.0 Bill

E

• st. Ind ustry re ve nue

2017-18

+3.2%

CAGR

Be a uty

14

15

• 20

20 40 60 80 100 120 140 160 180 200

• 42
• 24

3

• 3

15

• 6

24 60 27 12 9 6 57

• 33
• 36
• 39
• 12
• 9
• 27
• 30
• 21

Cystitis Re lie f Skin He a lth Immune Suppo rt Antio xida nts E ye Ca re Dig e stive He a lth L ive r He a lth Inso mnia Suppo rt Bra in He a lth E ne rg y Suppo rt Cle a nsing Na use a Re lie f Ha ng o ve r Re lie f Va g ina l Ca re Othe r Use Mig ra ine Iro n De fic ie nc y Spo rt We ig ht L

• ss Suppo rt

Mo o d & Anxie ty Suppo rt Me no pa use L ib ido Co ld So re Re lie f Cho le ste ro l Ve in Ca re Bo we l He a lth Sinus & Ha yfe ve r Re lie f F luid Re te ntio n Circ ula tio n Stre ss Re lie f Co ld & F lu Re lie f He a rt He a lth Multi Vita mins Pre g na nc y Arthritis Inte stina l He a lth Bo ne He a lth Musc ula r Suppo rt Nutritio na l Oils

Avg . = 0.03% Bub b le Size = Ca te g o ry Va lue Mn AUD % Gro wth Vs. PY. Va lue MAT Ma r’ 2017 (Mn AUD) Me a sure : Va lue Mn AUD Va lue = 30 Mn AUD

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• I

nc re a se d c o mme rc ia l fo c us a nd e xe c utio n c a pa b ilitie s with o ur “b ig 6” c usto me rs

• Driving mutua l g ro wth thro ug h jo int

b usine ss pla nning

• Pha rma c y c ha nne l sa le s mo re tha n

do ub le d in the pa st six ye a rs

20 40 60 80 100

F Y 11 F Y 12 F Y 13 F Y 14 F Y 15 F Y16 F Y 17

Pric e line CWH I nd PHY

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Dr Wolff – E

uro pe a n Allia nc e pa rtne rship

• All pro duc ts ha ve a uniq ue b ra nd po sitio ning a nd

stro ng g lo b a l distrib utio n

• E

xpa nds o ur po rtfo lio a nd pro vide s sc a le in $1.2B ha irc a re c a te g o ry

• Ha s the po te ntia l to a dd o ve r $10m in re ve nue tha t c a n

b e re inve ste d in o ur o wn b ra nds

Ka re n Murre ll – All Na tura l L

ipstic ks pa rtne rship

• Do me stic a nd e xpo rt stra te g ic pa rtne rship
• Bundling o ppo rtunitie s with o the r b ra nds
• Po te ntia l to a dd ma rg in tha t c a n b e re c yc le d into o the r b ra nds

Stra te g y , Pla nning & Inno va tio n Sa le s & K e y Ac c o unt Ma na g e me nt E xpo rt Re se a rc h & De ve lo pme nt

• K

ing sg ro ve DC F a c ility is a sig nific a nt e na b le r to re inve st in Mc Phe rso n’ s b ra nds

• De live re d sig nific a nt e ffic ie nc ie s to fre e up supply c ha in c a pa c ity
• Ne xt ste ps will b e a b o ut b uilding o n the pla tfo rm fo r the future ;

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• Wo rking to g e the r to drive A’ kin in

the UK a nd E U

• A’ kin ha s b e e n po sitio ne d a s a

stra ig htfo rwa rd a nd simple c ho ic e to a c o nfuse d c usto me r.

• Distrib ute d thro ug h Ho lla nd &

Ba rre tt, Who le fo o ds ma rke t, Na turismo , Wa itro se , Ae r L ing us, T ho ma s Co o k.

• T

a rg e te d purc ha se s o f $1m in Ye a r 1

• Spe c ia lise in na tura l, g o o d va lue – mid tie r

skinc a re a nd he a lth b ra nds

• 5 sta r T

ma ll T P sto re o pe ra to r

• Se c ure d the o pe ning o f Akin’ s Offic ia l T

ma ll sto re .

• T

a rg e te d purc ha se s o f $1m in Ye a r 1

• Spe c ia lise in Pre mium skinc a re b ra nds
• F
• c us will b e o n L

umino sity a nd E te rna l Yo uth

• E

xc lusive re pa c ka g e d ra ng e (b a se d o n K

• re a n

de sig n) o f L umino sity fo r China o nly.

• F
• re c a sting purc ha se s o f $2.0m in Ye a r 1
• Ma rke ting a nd b uilding the b ra nd in China fro m

virtua lly ze ro pre se nc e .

Outlo o k

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‘Mc Phe r so n’s, a jo ur ne y o f pr

• fitable gr
• wth…’

Appe ndix

L aur e nc e Mc Alliste r Manag ing Dire c to r Paul Withe r idge CF O David Smith Busine ss De ve lo pme nt Dire c to r Br e tt Owe r s Ne w Busine ss Co mme rc ial F inanc e Dire c to r Sar ah T ully HR Dire c to r L

• r

i Pir

• zzi

Natio nal Ac c o unts & E xpo rt Dire c to r Byr

• n Stone

F ie ld Sale s Dire c to r Donna Chan Marke ting Dire c to r Mar y Pe ar c e R&D Dire c to r Mar k Br ady Supply Chain Dire c to r David F ie lding Strate g y, Planning & I nno vatio n Dire c to r Sammy Chan MD MCP Ho ng Ko ng John Ce r e sa GM HAPL Re be c c a Wake fie ld E xe c utive Assistant

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Sa le s 279.5 312.6 Co st o f Go o ds So ld 160.1 179.5 Gro ss Co ntrib utio n 119.4 133.1 E xpe nse s 92.1 106.4 E BIT DA 27.3 26.7 De pre c ia tio n & a mo rtisa tio n (3.3) (2.8)

E BIT 24.0 23.9

Inte re st (4.4) (6.8)

NPBT 19.6 17.1

T a x (5.9) (5.5)

NPAT 13.7 11.6

E PS (c e nts) 13.2 11.8 E PS (inc luding no n-re c urring ite ms) (c e nts) (8.8) 11.1 T

• ta l divide nd (c e nts – fully fra nke d)

8.0 8.0

26 10.6% de c re a se in Sa le s 0.5% inc re a se in E BI T I nte re st c o ve r 5.4 time s 17.7% inc re a se in NPAT 14.6% inc re a se in NPBT

* T he impa c t o f the Gro ups 49% inte re st in the Ho use wa re s JV is e xc lude d fro m F Y16 a s it wa s dive ste d o n 31 Ma rc h 2016.

2.2% inc re a se in E BI T DA 13.4% de c re a se in E xpe nse s

NPBT e xc luding no n-re c urring ite ms 19.6 17.1 No n-re c urring ite ms:

• Impa irme nt o f inta ng ib le s

(21.6)

• Re struc turing c o sts

(1.6) (5.8)

• Bo nd b uy b a c k c o sts

(1.3) (0.2)

• 49% sha re o f Ho use wa re s JV pro fit*
• 1.8
• Ga in o n Sa le o f Ho use wa re s JV
• 2.0
• Othe r no n-re c urring ite ms

0.2 (0.3)

Sta tutor y NPBT (4.7) 14.6

Inc o me ta x e xpe nse (4.4) (3.6)

Sta tutor y NPAT (9.1) 11.0 Sta tutor y E PS (c e nts pe r sha r e ) (8.8) 11.1

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* T he impa c t o f the Gro ups 49% inte re st in the Ho use wa re s JV is e xc lude d fro m F Y16 a s it wa s dive ste d o n 31 Ma rc h 2016.

Ca sh flo ws fro m o pe ra tio ns Re c e ipts fro m c usto me rs (inc lusive o f GST ) 312.3 354.7 Pa yme nts to supplie rs a nd e mplo ye e s (inc lusive o f GST ) (281.5) (320.5)

Ne t c a sh inflows fr

• m ope r

a tions be for e inte r e st a nd ta x 30.8 34.2

Ne t inte re st a nd b o rro wing c o sts pa id (5.2) (6.3) Inc o me ta x pa id (1.4) (3.0)

Ne t c a sh inflows (outflows) fr

• m ope r

a tions 24.2 24.9

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Cash flows fr

• m inve sting ac tivitie s

Pa yme nts fo r a c q uisitio n o f b usine ss a sse ts

• (8.5)

Pa yme nts fo r purc ha se o f pro pe rty, pla nt a nd e q uipme nt (1.6) (2.9) Pa yme nts fo r purc ha se o f inta ng ib le s (0.3) (1.0) Pro c e e ds fro m sa le o f b usine ss a sse ts 0.5 18.3

Ne t c ash outflows fr

• m inve sting ac tivitie s

(1.4) 5.9 Cash flows fr

• m financ ing ac tivitie s

Pro c e e ds fro m issue o f sha re s

• 4.0

Ne t pro c e e ds fro m (re pa yme nt o f) b o rro wing s 1.8 (13.0) Bo nd b uy-b a c k (25.9) (10.0) Divide nds pa id (ne t o f DRP pa rtic ipa tio n) (7.5) (6.9) Inte re st ra te swa p e xting uishme nt (1.0)

• Ne t c ash outflows fr
• m financ ing ac tivitie s

(32.6) (25.9) Ne t inc r e ase / (de c r e ase ) in c ash he ld (9.8) 4.9

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Inve nto rie s 59.3 59.8 Re c e iva b le s 40.2 44.8 Pa ya b le s (48.6) (48.8)

Ne t wor king c a pita l 50.9 55.8

Pro pe rty, pla nt & e q uipme nt 4.9 5.8 Inta ng ib le s 93.0 115.1 Pro visio ns & o the r ne t lia b ilitie s (13.5) (15.3)

T

• ta l funds e mploye d

135.3 161.4

Ne t fina nc ia l de b t (36.4) (50.0) Ne t ta x b a la nc e s (10.4) (7.0)

Sha r e holde r s’ funds (88.5) 104.4

Ge a ring [Ne t de b t / (Ne t de b t + Sha re ho lde rs’ funds)] 29.2% 32.3% ROF E (Unde rlying E BIT / T

• ta l funds e mplo ye d*)

15.4% 14.8% ROSF (Unde rlying PAT / Sha re ho lde rs’ funds*) 12.6% 11.1%

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* Impa irme nt o f inta ng ib le s o f $20.6m (a fte r ta x) a dde d b a c k.

Ra nk Inve sto r Ho ld ing (sha re s) Ho ld ing (%) Cumula tive (%)

1 Inve sto rs Mutua l 9,800,000 9.4 9.4 2 Mic ro e q uitie s 7,525,667 7.2 16.6 3 Dime nsio na l F und Adviso rs 5,125,548 4.9 21.5 4 Mr Pa ul J Ma g uire 2,433,143 2.3 23.8 5 Ada m Smith Asse t Mg t 2,229,201 2.1 25.9 6 T BF Inve stme nt Mg t 1,914,246 1.8 27.7 7 Re a linde x Inve stme nts 1,640,049 1.6 29.3 8 Re g a l F unds Mg t 1,605,137 1.5 30.8 9 Mr Ya ro n Sha mg a r 1,450,000 1.4 32.2 10 Ca de nc e Asse t Mg t 1,405,279 1.4 33.6 11 Mr & Mrs Bria n R Ja me s 1,400,000 1.3 34.9 12 F a rna m Inve stme nt Mg t 1,116,742 1.1 36.0 13 Mr Da vid Ma dde n 925,000 0.9 36.9 14 Mr & Mrs Pe te r J Stirling 850,000 0.8 37.7 15 Ma nife st Ca pita l Mg t 732,932 0.7 38.4

SOURCE : Orie nt Ca pita l a na lysis a s a t 07 July 2017

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No n-IF RS me asur e s

T he no n-I F RS me a sure s use d b y the Co mpa ny a re re le va nt b e c a use the y a re c o nsiste nt with me a sure s use d inte rna lly b y ma na g e me nt to a sse ss the o pe ra ting pe rfo rma nc e o f the b usine ss. T he no n-I F RS me a sure s ha ve no t b e e n sub je c t to a udit o r re vie w.

Disc laime r

Sta te me nts c o nta ine d in this pre se nta tio n, pa rtic ula rly tho se re g a rding po ssib le o r a ssume d future pe rfo rma nc e , e stima te d c o mpa ny e a rning s, po te ntia l g ro wth o f the c o mpa ny, industry g ro wth o r o the r tre nd pro je c tio ns a re o r ma y b e fo rwa rd lo o king sta te me nts. Suc h sta te me nts re la te to future e ve nts a nd e xpe c ta tio ns a nd the re fo re invo lve risks a nd unc e rta intie s. Ac tua l re sults ma y diffe r ma te ria lly fro m tho se e xpre sse d o r implie d b y the se fo rwa rd lo o king sta te me nts.

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