2011 ANNUAL MEETING 11

Transcription

1 2011 ANNUAL MEETING 11

2 2011 METHVEN ANNUAL MEETING PHIL LOUGH Methven Group Chairman

3 AGENDA Chairman Performance Review and Outlook Group CEO Report on Vision and Strategy and Achievements UK CEO Update on UK Situation and Direction Resolutions Other Business

4 THE YEAR IN REVIEW Financial Results Net Profit $ 4.7M Net Debt $19.1M Significant challenges Loss of Focus (DIY) Christchurch earthquakes But we responded mid 2010 Restructured the UK business Supplier and product rationalisation

5 IMPROVING CREDIT MANAGEMENT Bolstered internal training and awareness Revised internal credit policy Utilising Credit insurers guidance in setting credit limits Re-instated credit insurance coverage for UK

6 FINANCIAL SUMMARY FOR F/Y to 31 MARCH 2011 Trading Results 2011 $ $000 Change % Group operating revenue 122, , EBITDA¹ 12,343 16, Net profit after tax 4,749 7, Before Focus (DIY) Limited loss and non-cash customer impairment EBITDA¹ 14,467 16, Net profit after tax 6,749 7, ¹ Earnings before interest, tax, depreciation, amortisation and impairment.

7 FINANCIAL SUMMARY FOR F/Y to 31 MARCH 2011 Cash Flow and Working Capital 2011 $ $000 Net debt 19,074 17,446 Capital expenditure 3,659 2,209 Working capital 24,690 25,727 Working capital turn¹ 4.6x 4.7x ¹Based on average working capital throughout the year.

8 HIGHLIGHTS Sales in Australia up 12% to A$41.0M EBITDA in Australia up 62% from A$2.4M to A$3.8M Partially imputed final dividend of 4.5 cps Key management changes in UK from October 2010 New computer system implemented in New Zealand Delivered on time and on budget

9 OUTLOOK FOR NPAT of $9.0M Includes the debt recoveries from Focus (DIY) Net Debt to reduce 20% Better inventory management Australia profits will continue to grow New Zealand expected to decline UK will return to profitability

10 POISED FOR GROWTH DESPITE CHALLENGING CLIMATE We remain committed to our strategies of: Design and innovation Growing the UK market Developing the luxury hotel market International distribution opportunities Improving operational efficiencies

11 ISH Trade Fair Frankfurt March 2011

12 2011 METHVEN ANNUAL MEETING RICK FALA Methven Group CEO

13 To be the leading shower brand, loved worldwide for delivering superior, life- enhancing shower experiences.

14 POISED FOR STRATEGIC GROWTH We remain committed to our strategies of: Design and innovation Growing the UK market Developing the luxury hotel market International distribution opportunities Improving operational efficiencies

15 HIGHLIGHTS Received prestigious international awards Key management and business changes in UK Hotel room installations for Satinjet showers reach 21,000 Methven brand featured at premium global trade shows New computer system implemented in New Zealand Delivered on time and on budget

16 BEING RECOGNISED FOR DESIGN EXCELLENCE KPI winning design awards 2011 awarded two international design awards

17 AWARD-WINNING DESIGN Winner 2011 Red Dot design award, Tahi Tapware

18 AWARD-WINNING DESIGN 2011 Green Good Design Award, Kiri Ultra Low Flow showerhead

19 DESIGN AND INNOVATION In the 2012 financial year we will launch: Three new Satinjet shower ranges A total of 59 new Methven branded products

20 Design and Innovation In subsequent years: Shower Skincare (previously HomeSpa) Digital thermostatic shower technology

21 2011 METHVEN ANNUAL MEETING STEVE LEE Methven UK CEO

22 RETURNING UK TO PROFITABILITY Re-launch of Methven Brand in March 2011 at Ecobuild in London Showers the key point of difference Targeting 60 high-end stores, with 13 already signed up Deva brand refreshed Launched new products and marketing tools 1 July 2011

23 RETURNING UK TO PROFITABILITY Product and supplier rationalisation Deva products reduced by 50% minimal impact on sales Suppliers already reduced from 31 to 11, with target of 7 Improve operational efficiency Reduced staff levels in line with loss of Focus (DIY) business Implement AX computer system Modernised warehousing system

24 2011 METHVEN ANNUAL MEETING RICK FALA Methven Group CEO

25 LUXURY HOTEL MARKET Number of hotel rooms with Satinjet showers now total 21,255 rooms Australia 46% increase Asia Region 168% increase UK & Europe (new market) 1,240 rooms converted Solid pipeline of potential hotel quotes, but longer lead time in converting Jemflow technology a winning proposition when combined with Satinjet

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27 STRONG GROWTH IN ASIAN HOTELS Renaissance Pudong JW Marriot Hong Kong Holiday Inn Erdos Renaissance Zhongshan Xiaoshan Landisson Intercontinental Beijing Intercontinental Expo Shanghai Renaissance Shanghai Pudong, Shanghai, China

28 GLOBAL TRADE FAIRS

29 ACCELERATING OPERATIONAL EFFICIENCIES Supplier and product rationalisation across the Group Better buying power Reduced inventory levels Improving our UK operation New computer system and warehouse Reorganisation of teams and processes Overhead cost reductions in all markets Benchmarking operations to best practice Line by line review of all costs Full benefits expected in second half of financial year

30 OUTLOOK 11

31 OUTLOOK FOR Australia profits will continue to grow economy forecast to continue to weaken therefore expect modest top-line growth focus on operational efficiency will ensure we maintain current profit growth rate New Zealand expected to decline improvement once Christchurch rebuilding work fully gets underway increased investment in design and innovation UK will return to profitability profitable for 2012 executing turnaround strategy building a sustainable base for growth

32 SIGNIFICANT PROFIT UPLIFT FOR YEAR AHEAD NPAT of $9.0M Net Debt to reduce 20%

33 ANNUAL MEETING BUSINESS AGENDA 11

34 ANNUAL REPORT AND FINANCIAL STATEMENTS To receive and consider the financial statements for the year ended 31 March 2011 together with the directors' and auditor's reports.

35 RESOLUTION 1: APPOINTMENT OF AUDITORS That PriceWaterhouseCoopers be reappointed as auditor of the Company for the ensuing year and that the Board of the Company be authorised to fix the auditor s remuneration for the ensuing year.

36 RESOLUTION 2: DIRECTOR ELECTION To RE-ELECT Richard Cutfield as a Director

37 GENERAL BUSINESS 11

38 ANNUAL MEETING 11